The UK shopping centre development market is set to benefit from around 250,000 m2 of new space in the next 12-18 months as several major new projects edge closer to completion, according to new research from Cushman & Wakefield.
The UK shopping centre development market is set to benefit from around 250,000 m2 of new space in the next 12-18 months as several major new projects edge closer to completion, according to new research from Cushman & Wakefield.
Eight new retail centres are expected to come to the market in 2013 and 2014, including the 43,900 m2 New Square development in West Bromwich near Birmingham and the 28,000 m2 Whiteley Shopping Centre in Fareham.
Cushman & Wakefield notes that the encouraging outlook for 2013 and 2014 is in stark contrast to levels of activity in 2012. Last year saw the UK register the lowest level of shopping centre development activity since 1962, with less than 37,000 m2 of new space coming online.
Investment activity is also picking up, according to the report. Total UK shopping centre investment transactions completed during the first quarter of 2013 hit GDP 1.05 bn (€1.23 bn). The second half of 2012 saw transactions worth GDP 1.8 bn (€ 2.1 bn) in total, compared with GDP 0.8 bn (€ 0.9 bn) in the preceding six months.
Cushman & Wakefield research analyst Neal Best predicts cautious but steady demand. 'Cautious demand from occupiers will mean that demand for new space will be largely selective, with interest focused on large, well-configured units in regionally dominant shopping centres,’ he said.
