The UK shopping centre development pipeline has ground to a halt this year but there is light ahead in 2013, according to Cushman & Wakefield. The projected 2012 total of new UK shopping centre space brought to the market (33,000 m2) represents a decline of nearly 90% relative to 2011 (275,495 m2) and will be the lowest annual figure on record since the early 1960s. However, an upturn in development is forecast for 2013 with nearly 175,000 m[sup]2[/sup] of new UK shopping centre space in the pipeline for next year.
The UK shopping centre development pipeline has ground to a halt this year but there is light ahead in 2013, according to Cushman & Wakefield. The projected 2012 total of new UK shopping centre space brought to the market (33,000 m2) represents a decline of nearly 90% relative to 2011 (275,495 m2) and will be the lowest annual figure on record since the early 1960s. However, an upturn in development is forecast for 2013 with nearly 175,000 m2 of new UK shopping centre space in the pipeline for next year.
Less than 20,000 m2 of new shopping centre space was added to the market in the first half of 2012. This compares to 46,500 m2 in the same period last year. Only one new shopping centre has been delivered this year: the 15,600 m2 Swan Centre in Yardley which opened in February. Extensions account for the remainder of the new shopping centre space.
The pipeline for the second half of 2012 comprises six extensions to existing shopping centres, ranging in size from 500 to 5,600 m2. This includes the MetrOasis catering development at the MetroCentre, which will increase floor space by around 1,400 m2 and provide a link between the MetroCentre and adjacent Metro Retail Park.
Schemes which are expected to open in 2013 include: Trinity Leeds (75,900 m2); New Square in West Bromwich (43,900 m2); the Whiteley Shopping Centre in Fareham (28,000 m2), on the site of the former Whiteley Village factory outlet centre; and the refurbished Lewis’s Building in Liverpool (15,900 m2), which forms part of the Central Village development.
Toby Sykes, partner - Retail Services, Cushman & Wakefield, said, 'There is substantial potential in the current retail development market for savvy investors to focus on improving schemes through proactive asset management. The lack of supply of new shopping centre space, together with strong demand from leading retailers, is a genuine opportunity for landlords. From our experience leasing Trinity Leeds and Whiteley, it is apparent that there is currently robust demand for the right development product.'
