Continued demand for high-quality space across Mayfair and Belgravia throughout 2023 reduced vacancy to 4.3% at year-end across Grosvenor’s London retail, residential and office portfolio.  

Available space across retail properties reached 4.9% at year end, half of the West End Retail average of 10%*. Similarly, office vacancy was 3.8%, outperforming the West End Office average of 7.5%.**  

Over 2023, Grosvenor signed leases with 69 new retail, leisure and office occupiers, covering 219,000 sq. ft. of space, and generating £22.8m of rent at an average of 5% over ERVs. An additional 26 renewals were signed. 

Grosvenor’s strong leasing performance over the year was bolstered by the completion of several significant development projects. These included 65 Davies Street, an over-station development in Mayfair, Holbein Gardens, a net zero redevelopment of a 1980s office building near Sloane Square and The Ice Factory, a five-storey repurposed warehouse now housing contemporary workspace, commercial space, and the only roof top restaurant/bar space in the area. All office space delivered in the year was fully let prior to completion. 

Similar success was demonstrated across Grosvenor’s retail portfolio, with Mount Street in Mayfair further solidifying its place as a global luxury fashion destination through the signing of Toteme, for the brand’s first European flagship store. Meanwhile, Grosvenor continued to curate South Audley Street as a beauty destination, through the opening of Sisley, Ormorovicza, and a 10-year renewal by Bamford. 

Furthering positioning Motcomb Street in Belgravia as a luxury shopping destination, Tissa Fontandena and Salt Resortwear were welcomed as new occupiers. These new retailers are supported by Lali who will add more quality all-day dining options to the area. 

Over the past few years, a suite of innovative programmes to support occupiers including green leases, a Simplified Lease that takes just 72 hours to agree and a Tenant Investment Fund to support occupier growth have also played a key role in attracting businesses to Grosvenor’s portfolio. 

As part of wider investment in sustainability and new high-quality space across Mayfair and Belgravia, Grosvenor is working with Mitsui Fudosan UK on the South Molton development, the largest mixed-use development in the West End. Work is also expected to begin this year on the transformation of Grosvenor Square into an extraordinary urban garden with ground-breaking environmental credentials. 

Amelia Bright, Executive Director, London Estate, Grosvenor Property UK commented:  

“Despite increasingly challenging economic conditions, 2023 saw strong leasing across all sectors in our portfolio, with robust performance both in our standing portfolio and our new highly sustainable developments. Through our occupier-led approach we will continue to differentiate our offer, finding additional ways of supporting occupier success and investing in the places we manage”.