Shopping centre development remains sluggish in the UK
Published: 21 September, 2011
The slowdown in UK shopping centre development is expected to worsen according to a report from Cushman & Wakefield. Just 46,500 sq m 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 sq m 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 sq m. Although 12 per cent higher than the 2010 level, this figure is massively skewed by Westfield Stratford City, which at 176,500 sq m accounts for 81 per cent of the pipeline for the second half of the year and 67 per cent of the projected 2011 development total.
Apart from Stratford City, only two new schemes are scheduled to open in the second half of 2011: Parkway in Newbury, at 27,400 sq.m, and the 7,100 sq m retail element of the mixed-use Cube scheme in Birmingham. Bluewater and Meadowhall are also being extended, with the Bluewater Events Venue and the revamped Oasis Dining Quarter scheduled for completion before the end of the year.
On 1 July 2011, total shopping centre floorspace in the UK stood at nearly 16.5m sq m across 698 schemes, whilst GLA per 1,000 inhabitants was 264.5 sq m.
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.
Toby Sykes, partner - retail services, Cushman & Wakefield said: “We predict an upswing in development activity towards 2015. The key for developers is not to oversupply and to ensure that new space is designed to meet specific retailer requirements. There is definitely more of an appetite for development in the market. In the meantime we are advising more landlords on refurbishments and extensions on existing schemes to satisfy market demand and improve tenant mix.
“The strength of the casual dining market is also providing landlords with the opportunity of extending and improving catering facilities within their centres to increase shopping hours and total pedestrian flow. Recent examples of catering improvements within schemes that Cushman & Wakefield has advised on include; Bullring, Bon Accord in Aberdeen and Cribbs.”
