Sky-High Premiums in Central London Prompt Zones 2 & 3 Restaurant Boom
A noticeable trend of the restaurant property market over the past twelve months has been big brands moving their attention away from London’s saturated restaurant hotspots and towards more peripheral areas.
This is a trend we noted early last year when writing about the London’s restaurant villages. Clusters of high-quality restaurants in the centre of more residential areas began a cycle of positive feedback where good restaurants attracted higher footfall, and higher footfall attracted more restaurant operators, eager to make use of the cheaper property stock away from London’s expensive central areas.
Premium Bond Street
Properties in highly desirable areas like Bond Street, Soho and the City have long been able to attract high premiums for their owners. As bustling business and entertainment districts, property in these central hotspots owes its high value to their status as destinations: places people come to enjoy themselves, to shop or to lunch with clients.
It is not a decline in demand in these central areas that is causing a rise in Zone 2 and 3 premiums, however. In reality, the case is quite the opposite. Where the industry’s large chains once focused on customers traveling into central hotspots, it is now understood that people are increasingly willing to buy dinner in their local area sans a trip to the theatre or day of shopping.
It is due to the huge surge in demand that we are seeing an overspill effect. People now wish to spend more money eating out, whether that is after work in their neighbourhood or for lunch with work colleagues. This recent rush to the restaurant prompted glowing growth figures for the sector, which predict an industry value of £57bn by next year.
A good time for landlords
This healthy growth in demand for good restaurants has meant that properties away from Central London have become prime targets for big restaurant chains. The economics is simple. The restaurant sector has increased by 39% in five years: to sustain this growth, big chains have needed far more good quality, appropriate properties than central areas can provide.
The upshot has been that Restaurant Property’s disposals agency has been able to achieve very strong premium for owners in areas out of the centre of the city. By confidentially exposing these properties to our industry-leading network of hospitality operators and agents, we have achieved premiums that owners would not have dreamt of back in 2010.
Our Head of Sales, Sally French has this to say on Restaurant Property’s record on disposals:
“Restaurant Property is the leading disposals agency for London and the wider UK in the leisure and hospitality sector. We have years of expertise helping commercial tenants find solutions to their lesser-performing units within their portfolios. We are confident in our ability to dispose of your property in a way that minimises disturbances to your organisation’s daily operations, and generates the maximum exit price.”
If you suspect that property you own may have increased potential due to the factors discussed in this article, get in touch with our disposals agency today. Call 020 7935 2222 or email firstname.lastname@example.org to speak to one of our agents today, and find out how valuable your property may be.< Back