The Crown Estate reports footfall in central London has remained about 38% below pre-pandemic levels during the financial year ending March 2022.
Regent Street in particular faces a rise in empty shops as work-from-home continues to impact high streets, the institutional landlord warned.
Dan Labbad, chief executive of The Crown Estate, said the percentage of vacant properties on street, or void rate, will rise after activity in the centre of the capital struggled to pick up when lockdown restrictions ended.
Labbad said: “I think we are going to see void rates go up over the next 12 months…but that doesn’t surprise or concern us.”
Retailers in London have suffered due to a decline in the number of office workers coming into the city. Footfall was down by 22% on pre-pandemic levels in central London, according to data for the week starting 8 May from retail analysts Springboard.
Robert Allen, chief financial officer at The Crown Estate, said the organisation still had a “job getting London back on its feet”.
Allen said: “We’ve got a lot of confidence in the long-term future of Regent Street.
“Short-term it’s going to be challenging. I think we’re got a lot of uncertainty and a lot of volatility.
“We’ve probably got a slightly bumpy 12-18 months ahead of us for the UK as a whole, and that will reflect in our portfolio.
“There will be years where Regent Street will do much better and look more resilient, and there will be years where Regent Street may tail behind some of the frothier bits of the market.
“But over the long term, I think we are very confident it will continue to perform, and it has been a great asset for The Crown Estate and frankly for the nation.”
