Adaptation is key for the survival of London’s secondary retail parades

Halfway through 2025, London’s secondary retail parades are in somewhat of a flux. While prime retail locations remain strong with high demand and stable rents, secondary parades—those smaller, local clusters of shops are facing a tougher market. Agents familiar with these markets have reported overall relatively stagnant values, with little fluctuation from years gone by.

Demand is patchy. Some parades, especially in less affluent or oversupplied areas, continue to see falling rents and higher vacancies. However, with prime rents rising, some occupiers, especially independents and service-based businesses are being priced out and turning to secondary spots.

Investor interest is cautious. Larger businesses are sticking to prime areas, but local investors are picking up well-located secondary parades at discounts, hoping to add value. Properties that have scope for upwards development (primarily to residential flats) or reconfiguration towards the same, often attract keen interest and subsequent yields. Outside of this, what is most important to these prospectors is location, tenant mix, and a landlord willing to invest in upgrades.

Southwark Park Road, SE16

The best-performing parades are evolving, replacing traditional shops with cafés, wellness spaces, and experiential services. The worst are still struggling, with empty units and little footfall.

In short, secondary retail in London isn’t booming, but it’s not dead. It’s going through a transition phase, and we expect the winners to be those who adapt fastest.