European shopping centre completions fall 23 per cent
According to new research from Cushman & Wakefield 3.8 million sq m of new shopping centre space was delivered to the market in 2017, 23 per cent less than in 2016. At the start of 2018, total European shopping centre floorspace stood at 166.5 million sq m up 2.3 per cent on 12 months previously, with another 6.6 million sq m set to complete during 2018 and 2019.
During 2017, Turkey replaced Russia as Europe’s most active development market, adding 495,000 sq m in the second half of the year, ahead of Russia (330,000 sq m) and third-placed Poland (298,000 sq m). In the UK, weaker retailer demand outside of prime locations and an oversupply of retail space have led to a 23 per cent decrease in shopping centre development activity, with just 120,000 sq m being completed in 2017.
Silvia Jodlowski, senior research analyst at Cushman & Wakefield, said: “The rise of e-commerce, changing consumer behaviour and expectations, development of technology and still growing supply have conspired to impact European shopping centre development and have led to reduced quantity of new floorspace being created. This is particularly the case in Western Europe’s more developed market, but also in the CEE region.”