London is still the top destination for retailers wishing to expand in Europe and, globally, is ranked second only to Hong Kong, according to CBRE.

London attracted 65 international brands to open stores in London in 2016. (Hong Kong had 87.) Nars, New Balance and Dyson have all opened new stores in London recently.

The report found the majority of the new retail brands that have opened in London originate from the United States. London is often a foothold for retailers that want to expand into Europe, the Middle East and Africa.

Last year set a record for the amount of money invested in retail property in London: £2B.

CBRE chairman of London retail Hugh Radford said London is faring very well compared to other global cities and despite the headwinds of the business rates revaluation, which has impacted most retailers.

“The record number of tourists visiting London, benefitting from the weak pound, has also given a boost to most retailers’ sales figures. However, retailers are being increasingly selective about getting the right location and property to allow them to develop their retail offer and attract new customers,” Radford said.

Of the new brands arriving in London, 25% have been midsize retailers, with luxury retailers gravitating toward the Mayfair area and making up 20% of all new retail entrants.

European cities are the preferred new destination for international retailer expansion, attracting 43% of new retail brands in 2016, up from 36% the previous year. This is largely attributed to European retailers redirecting their focus on expansion in their domestic markets rather than in locations where currencies have become more expensive.

Globally, the report revealed that coffee shops and restaurants are the hottest retail sector for expansion into new markets, with retailers in that category accounting for 22% of all expansion at city level. Next in line were specialist clothing stores (18%) and midsize fashion stores (17%).