The recent focus on cities and the built environment at COP26 brings the challenges and future direction of our urban centres into sharp relief.

For us, being back in our Edinburgh office with greater frequency means, above all, re-engaging with Princes Street. While the city’s most famous street was once also its prime retail destination, it is probably fair to say it hasn’t held that status in a while. 

UK-wide trends of changing retail consumer demand, internet retailing and wider occupational trends have all been accelerated by the impact of Covid-19. National multiple retailers have been ‘right sizing’ their portfolios for some time, meanwhile the shopping ‘experience’ is now important for physical leisure-based retail.

In the Edinburgh context, the changing demands for prime floorspace and the reintroduction of the supercharged St James Quarter this year – comprising some 850,000 sq.ft of high-quality, modern floorspace to showcase brands and lifestyles, or 21 per cent of Edinburgh city centre’s entire retail offer – have landed at the same time. George Street similarly is gaining in popularity, with a number of new brands known to have active requirements there and future streetscape improvements incoming. The excellent Multrees Walk links the two. Continuous improvement and competition within a city is no bad thing.

While there have been a few key relocations to St James, it is the non-related closure of the major department stores which have created noticeable change. The general consensus is that Princes Street could and should do better. Afterall, the location – with its high impact position beneath the castle, and glorious gardens running along one side – remains unique, and footfall continues to be very strong (with some summer counts actually above pre-pandemic levels). It is also backed by the positioning of transport infrastructure.

So how to move forward? What can Princes Street be like in 10 years’ time?

Firstly it is important to take stock. Fundamentally, the inherent value of town centres lies in their place as a point of interaction and exchange in which commerce, work and leisure are intertwined. The key goal must be the creation of sustainably accessible places with amenities which people are drawn to and want to visit. This can’t just be 9-5, or just retail, but uses which provide diversity and create vitality in the night-time economy too.

Given the need for any repurposing to be sustainable, this means the conversion and reuse of existing floorspace. For years much of the upper floors have been monumentally underutilised, partly because of the planning policy protection for ground floor retailing. Add in the vacated department stores and there is a plethora of large spaces offering excellent repurposing opportunities for forward-thinking developers and investors. 

Like buses, Princes Street has an abundance of opportunity all at once, and the first green shoots are already here. The former House of Fraser building has been transformed into the Johnnie Walker experience, where there has been enormous investment to create a quality destination, drawing locals and tourists alike to western Princes Street. At the other end, Jenners will make a world class home for the eventual new occupier and we expect a planning application for the proposals to be submitted within months.

Meanwhile a hotel with rooftop bar has been created in the former BHS building, with a modernised ground floor retail space more appropriately sized for the current market now rumoured to be under offer to a high-quality fashion retailer. The former Debenhams building is currently on its way through the planning process, whereby new hotel provision will be delivered. Residential opportunities are also being unlocked, with consent in place for apartment conversion on the upper floors of 71-77 Princes Street.

Edinburgh is a global city in high demand from all aspects of the property sector including residential and commercial. Macro socio-economic, technological and environmental changes will continue to influence, generate and challenge commercial demand and opportunities, meaning the planning policy governing Princes Street and the wider centre network needs to be more dynamic than ever, supporting alternative (but still footfall-generating) uses. The key is in flexibility and market-led evolution, with opportunities also for smaller business units and eateries promising to add a missing element of cafe culture to Princes Street.

As such, it will be key for the incoming Edinburgh City Plan 2030 – currently subject to public consultation – to get it right and be sufficiently agile to stimulate ideas and harness investment potential. Once adopted, the City Plan will set out planning policy against which all development proposals in Edinburgh will be assessed for up to 10 years, a period which will define the next chapter of Edinburgh’s most iconic street for a generation.

For more on Princes Street you can see Danielle in conversation with Estates Gazette: here

Savills recognises real estate is responsible for 40 per cent of carbon emissions and, to coincide with COP26, it launched related research examining how the sector is adapting to meet climate change challenges. Savills is committed to achieving net zero carbon in its operation by 2030. Through Savills Earth it brings together the expertise of more than 100 specialists to support and advise clients on their sustainability, energy and carbon strategies. Visit Savills Earth to find out more.

Further information

Contact Adam Richardson or Danielle Corker