- Upgrading 3.8 million sq ft of office space at risk of obsolescence would attract leading businesses and boost footfall to the nation’s high street
- More than 800 workplaces within 500 metres of Oxford Circus alone have a below standard energy rating of between C–G and could become unlettable without intervention in just four years
- Nearly one-third of West End office lettings in the past five years have been completed close to Oxford Circus but a shortage of modern workspace threatens future growth.
The newly established Oxford Street Development Corporation (OSDC) has a pivotal opportunity to accelerate the revival of Oxford Street by addressing one of central London’s largest concentrations of poor‑quality, outdated office space, according to the Westminster Property Association (WPA).
Formed in January, the OSDC will lead the pedestrianisation and wider regeneration of Oxford Street and is set to assume planning powers in early summer. Its creation marks the most significant opportunity in a generation to tackle the acute shortage of modern, sustainable office space in and around Oxford Street – a shift that would attract leading businesses, increase footfall and unlock the full economic potential of the Elizabeth line stations at Bond Street and Tottenham Court Road.
Despite its reputation as the nation’s high street, Oxford Street is a blend of retail, leisure and office space at the heart of one of London’s most important commercial districts. Together, these uses form a mutually-reinforcing ecosystem that drives London’s economy and underpins the West End’s success.
But new analysis by Knight Frank for the WPA reveals a stark imbalance. Availability of prime and Grade A office space around Oxford Street is just 1.5%, well below the central London average of 2.5%. There now no large floorplates (40,000 sq ft+) currently available to accommodate growing businesses in this strategically important area, with just two available in whole of Westminster, both in Victoria.
The OSDC zone – stretching from Tottenham Court Road to Marble Arch – also contains 3.8 million sq ft of office space at risk of obsolescence due to energy ratings below the ‘B’ standard expected to be required from 2030. Within 500 metres of Oxford Circus alone, 818 workplaces are rated C–G and could become unlettable without intervention in just four years.
This acute shortage of modern workspace has implications far beyond Oxford Street. Since 2020, 28% of all West End office lettings have taken place within 500 metres of Oxford Circus, underlining the area’s importance in attracting and retaining leading businesses.
The report finds that upgrading secondary office stock in the Oxford Street area to prime or Grade A standard could create £17.2 billion of prime capital value, generate £328 million in annual rental income and deliver a significant uplift in business rates revenue. These upgrades could also deliver a significant increase in developer contributions such as Community Infrastructure Levy (CIL) and S106 funds – vital funding to support the delivery of new and transformative public realm and the pedestrianisation of Oxford Street.
James Raynor, Chair of Westminster Property Association and CEO, Grosvenor Property, said: “Revitalising Oxford Street would greatly benefit from delivering the modern workspaces that attract companies and talent. This is a once in a generation opportunity to ensure Oxford Street is fit for the future as an internationally recognised retail, leisure and business destination.
“This will in turn help support further investment to address the lack of high‑quality office space which is holding back the economic potential of the West End, particularly the strategically important area between the Elizabeth line stations at Tottenham Court Road and Bond Street.”
Shabab Qadar, Head of Central London Research, Knight Frank, said: “Our analysis shows a clear dysfunction in the market whereby the most attractive, best-connected office locations along Oxford Street are also the areas where we see the highest concentration of older, outdated workspaces.
“Given the shortage of modern office space in other parts of the West End, a flexible and pragmatic approach to retrofit and redevelopment along Oxford Street could have a huge impact in attracting businesses and talent to the area and creating a dynamic, seven-days-a-week destination, whilst generating vital funds for the transformation of the West End, helping it retain its position as a global destination for visitors, workers and businesses.”
