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St Giles: a Renewed London Quarter Emerges

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St Giles: a Renewed London Quarter Emerges St Giles A renewed London Quarter emerges 01 ST GILES A RENEWED LONDON 02 ST GILES A RENEWED LONDON QUARTER EMERGES QUARTER EMERGES St Giles at-a-glance Prime retail rents have increased by 12 c.75% since 2012 400,000 sq ft c.75% +6.6% Over 400,000 sq ft of new In 2015, annual shopper retail lettings since Primark footfall in the area increased opened in 2012 12 UK flagship stores by +6.6% to 54.3m 2015 office investment 60,000 sq ft volumes reach 8-year of new and high of £343m in 2015 refurbished 4 places to eat 830,000 and drink sq ft Media & Tech businesses 60,000 sq ft increasingly dominate office market – more than 830,000 sq ft of space 4 established hotels £343m acquired since 2000 Sources for pages 01 & 02: Colliers International, Property Data, Springboard / BRC, AM:PM 03 ST GILES A RENEWED LONDON 04 ST GILES A RENEWED LONDON QUARTER EMERGES QUARTER EMERGES St Giles area boundary map St Giles: a renewed London Quarter emerges Until comparatively recently the area of London around the intersection of Oxford Street, New Oxford Street, Tottenham Court Road and Charing Cross Road was only known for Centre Point – the iconic high-rise building around which the busy St Giles Circus traffic system flows. EET TR S GE Rather than a destination in itself, it was somewhere that Londoners passed through. OD GO The shopping was lacklustre and it was largely shunned as an office location. T O However, in the past decade, as the neighbouring areas of Fitzrovia, Soho and Covent Garden have T T E flourished, the area around Centre Point has become a focus for new development. This trend is also N H A being driven by the development of the new Crossrail Tottenham Court Road station which, when M C O complete, will see more than 100m passengers move through it each year – three times more than U R T the current volume. R O A D Emblematically, Centre Point itself is now the subject of redevelopment: its tired office accommodation is being comprehensively refurbished to provide contemporary living spaces and a new public square with a vastly improved environment around its base. This injection of capital and people means this area of London stands on the verge of an exciting EET STR ORD OXF new phase of its evolution. NEW For the purposes of this research, we have named the area ‘St Giles’. This research observes recent and future changes to the dynamic in the area. With Facebook deciding to locate its new HQ on the OXFORD STREET border of this emergent new quarter of London, it will undoubtedly reinforce the area’s credentials as a major Media & Tech hub while high quality office, retail and mixed-use developments by E U N Almacantar, Great Portland Estates plc ‘GPE’, Derwent London, Exemplar, Shaftesbury, Ponte Gadea E V A and Consolidated Estates will boost the area’s evolution. Y R U C B H S A E R T I F N A G H C S R O S S R O A D 05 ST GILES A RENEWED LONDON 06 ST GILES A RENEWED LONDON QUARTER EMERGES QUARTER EMERGES Shoppers lead way as retail booms For so many years, this part of the West End was virtually a shopping desert, but now after the opening of a 140,000 sq ft Primark store we’re seeing a procession of domestic and international brands establishing flagships stores, including Benetton, Zara, Next and The launch of Primark’s second flagship store at the eastern end of Oxford Street in September 2012 was a significant catalyst for the shopping scene in St Giles. New Look. The importance of this cannot be understated because it generates huge footfall, which in turn drives the emerging restaurant Since the launch of the 149,000 sq ft store, the area continues to transform itself with the opening of new flagship stores by retailers who are keen to have a foothold prior to the opening of Crossrail in December 2018. Commencing and bar scene. The location is becoming a major and exciting piece in the with Primark, over 400,000 sq ft of new retail lettings have been confirmed, including a dozen flagship units, complemented by a range of food and beverage lettings at Central St Giles and Tottenham Court Walk. West End’s retailing jigsaw. More feet on the streets Paul Souber Head of Retail Agency London and EMEA Retail Following the launch of the Elizabeth line at Tottenham Court Road in 2018, expected passenger numbers at the station are to rise by 33% to more than 200,000 every day. Whilst the full launch of the new Crossrail service will be Colliers International the primary driver of higher levels of footfall in the area, the launch of the key flagship retail stores and new office space are likely to also contribute to higher pedestrian foot flow. Analysis has been undertaken to understand the relationship between the regeneration of the St Giles region and footfall levels, identifying a key trend between New schemes shaping the offer station redevelopment and Oxford Street East footfall. Derwent London’s Tottenham Court Walk has delivered nine new names to the area including Planet Organic and a 7,000 sq ft flagship Waterstones with a café, bar and 2011 saw the highest levels of footfall in the area over the last five years, over 60 million visitors over the full pop up cinema. The scheme has also signed a new UK retail market entrant – T2, an year, representing 165,000 people every day. The primary driver behind this was the closure of the Northern line Australian born tea retailer. DF Mexico, a new restaurant concept from the owners of at Tottenham Court Road, which led to a 10% increase in station usage at Oxford Circus. With the Northern line re- Wahaca also signed a lease to take its second London restaurant in the scheme and, opened in 2012, footfall remained largely flat at just over 50 million between 2012-14, despite Primark’s opening. in July, Fabled by Marie Claire, a joint venture with Ocado, announced its first opening Since 2014, and the launch of 11 new operators, footfall on Oxford Street East has markedly improved – showing a in a 7,500 sq ft unit. rise of 6.6% in 2015, an annual total of 54.3 million. Whilst the improvement in the vibrancy of the retail offer in the area has clearly been a driving factor behind improved figures, lack of Central line access at Tottenham Court Road On the southern side of Oxford Street, a number of new retailers have already during 2015 undoubtedly skewed the figures as, again, more passengers made use of Oxford Circus. launched stores, including a 35,000 sq ft Zara, which joins Tiger, Office and Whittard of Chelsea. The completion of the GPE development at 73-89 Oxford Street in May The new station exits for Tottenham Court Road and increased passenger numbers resulting from Crossrail will 2017 will see the launch of two further flagship stores from New Look (32,000 sq ft) transform pedestrian movements in the area. New pedestrian routes through Rathbone Square and flowing out from and Benetton (15,000 sq ft). the Centre Point square will improve access to areas around Charlotte Street, Charing Cross Road, Soho and Covent Garden. Key stakeholders in the surrounding area, like Shaftesbury, can look forward to an upside. On the northern side of Oxford Street, phase 2 of the Oriana development, a joint venture between Land Securities and Frogmore, was sold prior to completion to Ponte Gadea and will deliver 76,500 sq ft of pre-let retail space next door to Primark in November 2016. In addition to a 41,000 sq ft extension to Primark (creating a Source: Springboard / BRC 190,000 sq ft store), Hawes & Curtis (6,000 sq ft), Skechers (8,000 sq ft) and Schuh (11,500 sq ft) will launch new stores when the development completes in November 2016. Whilst being slightly outside the St Giles boundary, Next is undertaking a Tottenham Court Walk significant redevelopment of the Plaza Shopping Centre, knocking all units together to create a 73,000 sq ft store. 07 ST GILES A RENEWED LONDON 08 ST GILES A RENEWED LONDON QUARTER EMERGES QUARTER EMERGES St Giles is set to become a major transport hub serving the retail arteries of Tottenham Court Road and Oxford Street in the heart of London’s West End. We look forward to playing our part in helping to shape the changes taking place; for the benefit of business and those working and living in the area. The Fitzrovia Partnership Values rising as retailers arrive On the back of flagship lettings at the eastern end of Oxford Street, prime Zone A rents and values have risen sharply over recent years. Rental tone on the street has shifted with almost every new letting following the opening of Primark in 2012. By 2013, following five years of very modest rental growth, prime rents had risen to £475 per sq ft. 2013 and 2014 saw a 5% rise to £500 Zone A rents, following lettings to Office, Tiger and Whittard of Chelsea. Since 2014, major flagship lettings to Zara and New Look pushed Zone A rents further – Zara’s 35,000 sq ft store saw a 20% rise to £600 per sq ft. New Look pushed the record level even further to £700 per sq ft, representing a 75% rise in Zone A rent against pre-Primark in 2012.
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