November 2025
Occupier demand for large stores remains at an unprecedented level. From a retail perspective, this demand is coming from occupiers in food, fashion and homewares, with the majority flexing concepts and adjusting space requirements to get closer to their customers in London’s zone 2 and beyond.
We’re observing the likes of TK Maxx and Dunelm (a GCW client) taking space of around 10,000 sq ft, a compromise of more than 50% against their traditional stores. Likewise, operators such as M&S and Lidl are securing stores with a net trading area of 7,500 sq ft, where this presents the only opportunity to penetrate core markets.
For occupiers, the competition for space in London is significant, and securing this off-market is essential to provide certainty. To achieve this, a high degree of market knowledge is vital – and in most cases, the delivery of new stores will require amalgamation and/or redevelopment.
For owners, understanding the landscape from a demand perspective is essential, to avoid erroneous assumptions that space is too small or that occupiers might not make compromises on configuration. Indeed, occupiers are live to the scarcity of opportunity, and are prepared to build a future pipeline by legally committing to AfLs.
This presents a significant opportunity to drive value for owners, securing longer lease terms to some of the best covenants in the market. Where an investor’s ownership is beyond a single asset, securing one or more of these occupiers can be transformative to a location, driving footfall and therefore demand from other complementary occupiers.
GCW spends a lot of time with clients – whether owners or occupiers – understanding where the opportunity lies, and who wants to be where. We discover where the space exists, or how it could be created, and then match it effectively to occupiers’ requirements.
As well as keeping a finger on the pulse of market intelligence and carefully managing in-house data, much of this understanding comes from building relationships and working closely with the owners of in-demand locations, establishing how their space might best be used. This allows us to potentially engineer a scenario that suits all parties. We believe this sector of the market provides some of the most exciting opportunities, both for occupiers and owners
Recent London deals.
Kingston upon Thames: GCW purchased the freehold of a former M&S store for Dunelm.
Chiswick: Using market intelligence, GCW secured a new 18-year lease to M&S following a surrender deal with Poundland, adjacent to M&S’s current store.
Sutton: GCW advised Lidl on the acquisition of the 30,000 sq ft former Wilko on Sutton High Street, to open later this year.
Wembley: Acting for TK Maxx, GCW arranged outstanding first-floor space next to Wembley Central Station, highly visible from the busy high street.
Wood Green: GCW agreed a new 10-year lease for B&M at £250,000, for first-floor space.
Walthamstow: GCW negotiated a £40,000 rent increase at rent review for Asda’s shopping-centre supermarket.
Clapham: M&S signed a 20-year lease on an 8,000 sq ft ground floor unit, plus 4,000 sq ft basement ancillary, paying a rent of £700,000 a year.
Covent Garden: GCW worked on behalf of Barings, to let a 6,000 sq ft ground floor space with 4,000 sq ft basement ancillary to M&S, paying a rent of £750,000 a year.
Fulham: On behalf of CBRE IM, GCW let a 12,000 sq ft unit to Aldi. Rent agreed at £400,000 a year. Also a listed, former ticket hall let on a new 30-year lease to JD Wetherspoons at a rent of £300,000 a year.
Hammersmith: Sainsbury’s Local signed a 15-year lease, with an agreed base rent of £375,000 a year.
Kingston upon Thames: Letting of a 12,000 sq ft former River Island to Deichmann with a new 10-year lease agreed at a rent of £325,000 a year.
Chiswick: Agreed a 10-year lease with Loaf on a former Sofa Workshop unit at a rent of £160,000 a year exclusive.
Putney, Whetstone and Chiswick: Regeared leases with M&S on food stores.
Richmond: New lease agreed with Jigsaw, showing a rental increase for the landlord.
Streatham: Agreed new letting to Popeyes, on a new 15-year lease at a rent of £90,000 a year exclusive.
Streatham: Waterstones has opened in a former bank, paying a rent of £132,500 a year.
Hampstead: Acting for the landlord, GCW doubled the size of the first-ever Gail’s bakery, agreeing a new 15-year lease at a rent of £155,000 a year exclusive.