An overview of the commercial property market in Knightsbridge

Running to the south west of Hyde Park, Knightsbridge is one of the most exclusive roads in London with its surrounding area known as the same name. Knightsbridge has developed into one of the largest and most prestigious retail districts in London, being home to high end brands, exclusive boutiques, top end restaurants and bars as well as several real estate companies. Knightsbridge currently holds the record for the most expensive residential apartment sale in the world at £100 million and commercial single retail building for £1.5 billion.

With this type of high end clientele and business, Knightsbridge is London's premier locations for commercial retail property and as such demands the highest retail price per square foot in the city. As with many areas supplying the super-rich, the global recession has not altered demand in Knightsbridge and commercial property prices have remained high and increasing over the years. Gucci sits next to Chanel, Prada has two shops in the area and both Harrords and Harvey Nichols are within the area.

Commercial rent prices in Knightsbridge, in average, are £58 per square foot. The average service charge per square foot is £9 and the business rates average out to be £23 for the same. In total, the average monthly rental cost for commercial space in Knightsbridge is £90 per square foot, around 10-15% higher than Oxford Street.

Naturally, with high demand for entry into the fashion hub, and rents being met or even exceeding asking price, negotiation is not commonly an option. Nor are short leases or long term leases with fixed rates. Usually leases will last between 3-5 years with increases based on RPI figures with a minimum and maximum % increase each year. For smaller retail units and small non street facing offices, shorted leases may be available, both to suit the owner, if the business can't compete, and the business to allow some freedom for liabilities.

About Knightsbridge History

Knightsbridge has an indefinite history and for many years was an expanse of no man's land in between Kensington, Chelsea and Charing. It's only certain fact is that this land led up to the bridge that connected with Kensington and there are several myths as to where the knights element entered the name, the most common being the site where two famous knights battled to the death to end a feud. For many years, Knightsbridge was home to many taverns and infamous as a haunt for highwaymen and robbers. However, in the late 1700's, early 1800's the area began to be developed, firstly with army barracks and later with residential roads, many of which are still residential streets today, albeit many of the houses have been converted to flats and apartments. Today, Knightsbridge remains one of the most expensive residential areas in the world with almost all of its commercial area used for retail.

Most notable areas and buildings

Knightsbridge - Home to many of fashions high end London flagship stores, Kinghtsbridge road is pure high end retail heaven. With Chanel, Yves St Laurent, Harvery Nichols, Jimmy Choo, Gucci and Prada all having major high street status along the strip.

Brompton Road - Most famously known for being home to Harrords, Brompton Road is wall to wall retail with Harrods, Louis Vutton, Basler, Ugg, Gant, Massimo Dutti and Carlo Pazolini all having flagship stores on the road.

Harrods - Beginning life in 1849 as a small general store by a tea merchant named Charles Henry Harrod in 1849, Harrods became a large department store in 1865 when the son took over the shop. In 1890, the store housed London's first escalator and was one of, if not the, busiest department stores in the country attracting shoppers from all over the world with its tagline 'Everything for Everyone Everywhere'. The current building dates back to 1900 and covers a whole block on Brompton Road and was recently sold for £1.5 billion.

Museums - On Crompton Road in Knightsbridge are The National History Museum, The Science Museum and the Victoria and Albert Museum, all of which are huge buildings and architecturally stunning.