Development pipeline starts to flow
Published: 14 September, 2016
Shopping centre development set for four-year high in 2017
New openings and redevelopment of existing UK shopping centres will reach a four-year high in 2017 – a stark contrast to the first half of 2016 which saw no new floorspace added, according to Cushman & Wakefield.
Cushman & Wakefield’s UK Shopping Centre Development Report shows that while total UK shopping centre floorspace remained static at 17.25m sq m in H1, a total of 132,911 sq m across 10 new-build, redevelopment or extension schemes is either due to complete by the end of 2016. Four of these schemes are new developments totalling 80,272 sq m and include Victoria Gate in Leeds and Bond Street in Chelmsford, both anchored by John Lewis. There are a further six schemes, totalling 52,639 sq m which are extensions or redevelopments, most notably the leisure focussed Watermark Westquay in Southampton and the next phase of Moor Sheffield.
A further 252,936 sq m of additional floorspace is under construction and due to open in 2017. This will be the highest amount of new floorspace added since 2013 when Trinity Leeds opened. This is made of six new developments, the largest of which is Lexicon, Bracknell at 53,883 sq m. The remainder of the new space is made up of eight extensions and redevelopments totalling 158,577 sq m; dominated by two projects; the 68,748-sq m Westfield London extension and the fully redeveloped Westgate shopping centre in Oxford at 45,394 sq m.
John Percy, Cushman & Wakefield’s head of shopping centre development consultancy, said: “In football parlance, this has been a year of two halves. After a quiet first six months, we will see schemes completing up and down the country and 2017 will be busier still.
“More than half of this new space consists of extensions to, or refurbishments of, existing centres, reflecting the additional risks and costs of establishing a new build project and taking it through the development process.”