London’s Mayfair and Belgravia areas, controlled by Grosvenor, are starting to see a resurgence in occupancy rates, despite central London still lagging behind pre-pandemic levels in terms of footfall. Grosvenor, a property firm, has reported a remarkably low vacancy rate of only 3% across its luxury portfolio, substantially lower than the UK average of 14%. This remarkable achievement can be attributed to Grosvenor’s distinct approach to the landlord-tenant relationship, which includes initiatives like rent waving and the Tenant Investment Fund.
The Tenant Investment Fund has been designed to help businesses expand during a time when traditional bank funding may be limited. While Mayfair and Belgravia are renowned for being home to global fashion brands, Grosvenor’s focus with the fund and its other services is primarily on independent businesses, which make up around two-thirds of their retail and hospitality occupiers. Despite facing lockdowns and the threat of the Omicron variant disrupting the recovery, Mayfair and Belgravia have witnessed the establishment of 33 new brands in the past year alone, including the UK debut of skincare specialist Barbara Sturm.
Amelia Bright, Executive Director at Grosvenor, explained that the company has invested substantial effort over the past two years to redefine the role of a landlord and prioritize the relationship between occupiers and landlords. During the lockdowns, the objective was to ensure that Mayfair and Belgravia would emerge stronger, with open shops and restaurants ready to welcome everyone back. Rent waving during lockdowns has proven to be a successful intervention, but it is the subsequent actions, such as establishing the Tenant Investment Fund, that have truly revolutionized the conversations Grosvenor is having with its occupiers.
The recovery of Mayfair and Belgravia overall reflects the resilience and adaptability of the luxury retail and hospitality sectors. Despite the challenges posed by the pandemic, Grosvenor’s innovative initiatives have attracted new brands and supported the growth of independent businesses within these iconic London neighborhoods. This success not only benefits the local economy but also enhances the reputation of Mayfair and Belgravia as premier destinations for fashion, beauty, and dining experiences.
Useful Links:
1. Grosvenor Official Website
2. Mayfair London Website
