Rents on Edinburgh’s most prestigious shopping street jump by a quarter

Rents on what has become Edinburgh’s most prestigious shopping thoroughfare have risen by as much as a quarter in the last 12 months, new figures indicate.

New additions to Edinburgh's George Street include cocktail bar The Alchemist, which has opened in the space formerly occupied by Laura Ashley.

According to property consultancy Savills, rents on the capital’s George Street have reached £150 per sq ft for prime “Zone A” units. This follows the latest deal with clothing chain Me+Em, which brings the vacancy rate on the street to just 5 per cent, falling from 15 per cent at the height of the pandemic.

The firm said that back in 2020 there were 11 available units on the street, while there are now just four, all of which are “receiving good interest” or are under offer. Given the level of demand, along with the recent lettings, rents have also seen a significant recovery, it noted. Zone A rents for the prime section of the street are now as high as £150 per sq ft, up from £120 per sq ft some 12 months ago.

Upmarket George Street, which connects Charlotte Square to the west with St Andrew Square to the east, has welcomed 12 new occupiers in the past 18 months. While some of these have been relocations from elsewhere in the city centre, 50 per cent have been new brands to Edinburgh, including Jimmy Fairly, Sweaty Betty and Jigsaw, according to the latest Savills study.

The firm said the arrival of new occupiers had “revived the streetscape and reaffirmed George Street as one of Edinburgh’s prime retail destinations”. It has also seen increased demand for food and beverage (F&B) units, with cocktail bar The Alchemist now open in the space formerly occupied by Laura Ashley.

Isla Monteith, director in the retail team at Savills Scotland, said: “Until recently, the F&B market in Edinburgh has been dominated by local independents, who have focused on edge of prime and affluent suburban areas of the city. Looking ahead, the planned pedestrianisation of the street is also encouraging this blend of F&B and retail further, so we will no doubt see this trend continue. The St James Quarter is also performing very well and this is helping to encourage brands to consider Edinburgh, whether in St James itself, or locations such as George Street.”