The commercial prime market is, for want of a better word, doing OK. In the City, leasing increased by one per cent over its long-term average in the second quarter, while overall demand was 12 per cent below its long-term average. For a sector pummelled by downsizing amid changes to weekly working patterns, it’s not too bad, and probably about to get better .
But on closer inspection, the commercial prime picture is slightly more complicated: a few particular pockets have been propping up the modest market, with two in particular accounting for a huge proportion of lettings. Demand has been particularly strong from insurance and financial services, which together accounted for nearly a third of the office space leased in 2024. Investment in luxury retail on Bond Street accounted for over nine-tenths of transactions in retail properties in London in the second quarter.
And across the board, a majority of lettings have been for sustainable properties . Despite the global luxury goods slowdown, investors have been lining up to invest in Bond Street’s retail properties. Transaction volumes for properties on Britain’s most expensive street reached £436m in the second quarter, according to Savills – up 66 per cent year on year.
Having the right foothold and brand appearance in an incredibly competitive, slowly recovering luxury market is crucial for brands, making one of London’s most exclusive streets an excellent place to be. Bond Street accounted for 91 per cent of a.