UK mall development remains sluggish: C&W

The slowdown in UK shopping centre development is expected to worsen, according to a report from property consultant Cushman & Wakefield (C&W).

Just 46,500 m² of new shopping centre space was added to the market in the first half of 2011, with the opening of Trinity Walk in Wakefield in May.

More than 217,000 m² of shopping centre space is due to open in the second half of the year, which brings the projected 2011 completion total to nearly 264,000 m². Although 12% higher than the 2010 level, this figure is massively skewed by Westfield Stratford City, which at 176,500 m² accounts for 81% of the pipeline for the second half of the year and 67% of the projected 2011 development total.

Completions are expected to slow dramatically next year. The Tesco shopping centre in West Bromwich (53,000 m2), originally scheduled for completion in 2012, has been delayed to 2013. At present next year is expected to see the lowest annual provision of new shopping centre space in the UK for more than 50 years.

Activity should pick up in 2013, with Trinity Leeds (93,000 m2), on which C&W is letting agent, and a handful of other projects under construction and several others at the planning stage. However, activity is unlikely to match the levels seen in 2005-2008.

'We predict an upswing in development activity towards 2015,' said Toby Sykes, Partner - Retail Services, C&W. 'The key for developers is not to oversupply and to ensure that new space is designed to meet specific retailer requirements.'