23 January 2012
New record retail rent for West End’s South Molton Street
The City of London Corporation, advised by BNP Paribas Real Estate, has set a record retail rent for South Molton Street in London’s West End with the letting of the former Molton Brown unit to a high-end Italian fashion retailer.
The 909 sq ft of ground floor retail space at 58 South Molton Street has been taken on a new ten year lease at an annual rent of £185,000, which equates to approximately £384 per sq ft Zone A (the street's previous highest rent was approximately £370 per sq ft Zone A).
The transaction was agreed after best bids were received from amongst others a number of high profile household names.
BNP Paribas Real Estate's Michael Sheridan says: "The level of demand we received for this property meant that itbecame necessary to seek best bids all of which were from international retail brands.
"The strength of the market in the West End, particularly from the luxury retailers, is being driven by the imbalance of supply and demand. This is prompting retailers and brands to look at less established locations, which is also creating upward pressure on rents."
BNP Paribas Real Estate's recent report predicted luxury retailers would move away from their typical core locations of Old & New Bond Street in favour of South Molton Street, Dover Street and Albermarle Street and also out of the West End altogether into areas like Shoreditch.
The tenant was represented by CBRE.
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