Prime London retail space 'is extremely strong'

22 August 2011

Written by Steve Olejnik

Commercial mortgages in London may be a good investment as many retail businesses intend to open up stores in the city's main shopping districts.

This is according to director of commercial research at Savills Mat Oakley, who called this "a more extreme story" than that experienced by office space in the capital.

An "almost endless" number of companies wish to operate from these assets, pushing rents to "record highs", he asserted.

Demand from shops is also "not as footloose" as that of other sectors, as many retailers want their "first flagship UK store" to be in a prime London location, the expert continued.

Mr Oakley pointed out that these enterprises are "unlikely to be put off by the rent bill" and will not decide to establish themselves in any other regions.

The strength of commercial assets in the city is likely to continue until after the Olympic Games in 2012, he had previously stated.

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