The third quarter of this year has seen an increase in retailers looking for space across London compared with the same period in 2021.
The latest Colliers London demand tracker, released exclusively to React News, for the period between July and the end of September showed there were 236 active requirements from retail and leisure tenants looking for space. In the third quarter of 2021, there were 222.
Despite the challenges and concerns around consumer spending that have built over the last few months, the list of requirements has held steady throughout 2022, with a similar number recorded in the second quarter.
Of the active requirements, 40 were new entrants to London, and represented interest from companies based in 20 different countries.
These figures also showed an increase compared to the same period in 2021, while Germany replaced Italy as one of the most common nationalities looking for space in the capital, alongside USA and Australia.
Though volume of requirements is high, the overall space required has reduced over the course of the year. In the first quarter retailers were on the hunt for more than 2m sq ft of space, which has now halved to 1m sq ft, driven by demand from food and drink, fashion and experiential occupiers. However this total does not currently include experiential space.
Over the course of the year Colliers tracked 4.25m sq ft of active requirements, compared to 4.9m sq ft in 2021.
Ellie Grimes in the Central London Retail team said: “There has been a noticeable increase in London requirements from experiential concepts in 2022. We have seen an increase of over 40% compared to 2021 and we expect this to continue to increase. Consumers are placing more value then ever before on experiential retail and this provides a great opportunity for brands to engage with customers beyond simply selling them products.
“The Loewe pop-up takeover at Harrods to celebrate its autumn-winter 22 collection is a great example of retailers pivoting to keep consumers engaged, increasing a brand’s profile through experiential retail concepts, while complementing their traditional bricks and mortar stores.”
However, the average size of the requirement dipped slightly, as retailers reduced their occupational needs by 200 sq ft to around 2,400 sq ft, and F&B by 400 sq ft to 3,300 sq ft.