What: London's premier shopping street demonstrates remarkable recovery with vacancy rates falling below 1% for the first time since 2019.

Why it is important: The transformation from problematic candy stores to premium retail demonstrates how strategic development and international brand interest can revitalise historic shopping districts.

Oxford Street's remarkable recovery is evidenced by its vacancy rate dropping to 0.5%, the lowest since Q1 2019. This transformation is driven by substantial private sector investment, with retailers committing £118 million to store fit-outs over the past year. The street's revival is marked by significant developments, including IKEA's flagship opening and the redevelopment of the former Debenhams site. International retailers continue to show strong interest, with 21 new brands securing their first London locations in 2025, including 11 fashion retailers and six food and beverage operators. The success is attributed to strategic developments and improved transport links, leading to increased upward pressure on rents for prime locations. While quarter-on-quarter prime Zone A rents for Oxford Street West have already increased by 3.3%, experts anticipate measured growth due to ongoing macroeconomic challenges.

IADS Notes: The dramatic improvement in Oxford Street's vacancy rate builds upon positive momentum seen throughout 2024-2025. In January 2025, vacancy rates had already fallen to 2.2%, while December 2024 saw the approval of M&S's £150 million Marble Arch redevelopment. The street's renaissance has been further accelerated by IKEA's £378 million investment announced in May 2025, and the October 2024 launch of the £20 million Future Stores concept, introducing tech-driven retail experiences. These developments demonstrate how strategic investment and diverse retail concepts can successfully transform historic shopping districts.

Oxford Street vacancies are at historic lows