Global shopping centre development continues apace with growing middle class populations and retailer expansion leading to unprecedented levels of construction and new openings, largely in emerging markets, according to property advisor CBRE.
Global shopping centre development continues apace with growing middle class populations and retailer expansion leading to unprecedented levels of construction and new openings, largely in emerging markets, according to property advisor CBRE.
CBRE measured the level of shopping centre development in 180 of the world's major cities to identify the most active markets, both in terms of 2011 completions and space currently under construction.
The research found that development activity has reached significant levels, with 29.6 million m2 under construction - equivalent to all the combined existing space in France, the UK and Germany - while 7.8 million m2 of new space opened in 2011.
Neville Moss, EMEA head of retail research at CBRE, commented: 'It is our view that shopping centre development activity is currently at an all-time high, with growing middle class populations, particularly in the BRIC markets, fuelling this demand. The shopping centre concept, once the preserve of the western world, is becoming ubiquitous. China has led the way in recent years and with huge opportunities still existing in its secondary cities, it is likely to remain the most active development market over the coming years. However, the upsurge in development is also evident in Turkey, Mexico, Malaysia and Vietnam among others.
'The maturity of the retail sector in western Europe and North America has resulted in much lower levels of development, but it has also forced retailers from these markets to seek new opportunities in fresh markets in order to grow their businesses. This trend is expected to continue and is helping to underpin the development of high quality, new retail space in emerging markets.'
