A
new report commissioned by England's greatest real estate expert Peter
Wetherell explains how Mount Street in Mayfair has been regenerated as a retail
destination. The rents paid today are quite staggering: Lowe pays £175,000 a
year for 3,320 sq ft, for example. But the rules can be applied anywhere.
The
most important thing is that landlords and retailers and public authorities
need to work together. Wetherell recalls that he founded the Mount Street
Association at the request of the Duke of Westminster after the duke had
"walked from the old estate office in Davies Street to dine at Harry's in
South Audley Street and had counted 19 empty shops".
Mount
Street connects Berkeley Square with Hyde Park and you may think such a
location guarantees success. But it does not. It used to be a "street you
cut through" to get from A to B.
The
triggers behind its transformation were the arrival of an anchor retail tenant
in the shape of US fashion designer Marc Jacobs in 2006 and investment in
public realm infrastructure shortly afterwards. Now the street is a destination
in its own right.
The
report identifies 18 key ingredients required for a luxury destination under
three headlines:
1. Quality real estate
2. Good tenant mix/mix of uses
3. High profile.
Real
estate quality is determined by: ultra-prime locations, attractive well
maintained architecture, high quality shop facades, high quality public realm
(public artwork, street furniture, fountains, planting), wide boulevards, and
easy access to public transport (key for attracting tourists).
The
tenant mix requires: a clear strategic plan by the landlord and/or local
authority, well managed and maintained buildings, good brand names that people
choose to visit, businesses strong enough to see off competition, good
residential and leisure properties near-by, and addresses that top brands will
covet.
High
profile is determined by: good footfall, being recommended for visits by
tourist guides, marketing and events used to keep the thoroughfares in public
consciousness, good sign-posting and being on maps, listings in key guides, and
a strong tenants association that fosters a sense of allegiance and that
organises promotional events and activities.
Robert
Duffy, the co-founder of Marc Jacobs, says: “Regarding our choice of Mount
Street over Bond Street, this area has charm and appeal. There’s a garden
around the corner. I like having a garden nearby. The retail spaces here are
also beautiful, deep and interesting. I had been eyeing up the space for five
years, since before we opened the main line store in Mount Street in 2007. I
was just waiting for the guy who owns it to say yes.”
Not
every retailer will be targeting a Mount Street location where in 20 years
average rents have risen from £16,000 to £150,000. But the 18 point check list
is a useful starting place for thinking about the potential of your area. And
so it the attitude of Duffy to why his local area works for his store.
A
quick walk around Brick Lane to the East of the City of London shows how many
of the action points above have been used by retailers with an altogether
different proposition to make their shopping area a destination.
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