Development unlikely to pick up before 2012, warns C&W
Published: 26 March, 2010
The rate of development of new shopping centre space in Europe is unlikely to pick up before 2012 at the earliest, according to Cushman & Wakefield
In its new European Shopping Centre Development report, the agent says 2009 saw the sharpest decrease in new space in almost 15 years, with around 7.4 million sq m of new shopping centre space completed, a 19% fall on 2008. 2010 should see around 6.1 million sq m being completed. In 2011 shopping centre development is expected to hit its lowest level in seven years with around 5.0 million sq m due to be completed, 46% down on the peak of around 9.3 million in 2008.
However, should the European economy bounce back quicker than expected, Cushman & Wakefield says that a large number of shelved shopping centre projects could be revived relatively quickly, boosting the development pipeline.
After losing its number one position in 2009 to Turkey in the country ranking of shopping centre pipeline space, Russia once again dominates Europe, with 2.5 million sq m of space in development and scheduled to open by the end of 2011. And in Western Europe, Italy, France and Spain saw the most new space being completed in 2009. The Italian market has been especially resilient, with just around 20% of its 2010-2015 pipe line so far being put on hold.
The largest shopping centre under construction in Eureop is Westfield’s Stratford City at 186,500 sq m located alongside the 2012 Olympic Park and due to open in 2011.
