European shopping centre openings lowest since 2005
Published: 20 September, 2010
The number of shopping centre openings has dropped by almost 50 per cent year on year and is likely to decline further in 2011, according to new research by Cushman & Wakefield.
Just 2.1 million sq m of shopping centre gross lettable area (GLA) was added to the market in the first half of 2010. Sixty-four centres opened in total compared to 120 openings in the same period in 2009.
Darren Yates, associate in Cushman & Wakefield’s European Research Group, said: “Based on current data, total shopping centre completions look set to fall to around the 5 million sq m mark next year – the lowest in six years. Whilst the last two years have been gruelling for developers, arguably the reduction of new space coming through will help to support the shopping centre sector going forward and will open up new development opportunities as supply is absorbed quickly in the upturn, potentially exposing the market to growth pressures as early as next year in some cases.”
Mike Rodda, head of Cross-border Retail Investment, Cushman & Wakefield said: “Judging by the transaction pipeline, we expect to see a significant increase in the number of deals closed as we approach the year-end. Investor demand for good quality assets in core markets remains strong, albeit always with an eye on the strength of the occupational sector.”
