Malls extend across Europe

Published:  25 April, 2017

Extensions to existing shopping centres is driving development activity across Europe according to Cushman & Wakefield

The broker calculates that over 50m sq ft of new space is going to be delivered in 2017 with a further 25m sq ft due in 2018.

Paris, Marseille, Helsinki, Madrid and London have strongest pipelines in Western Europe while Istanbul, Moscow, Ankara, Warsaw and Tallinn lead way in Central and Eastern Europe.

In the UK, Cushman & Wakefield predicts Brexit, rising inflation, limited wage growth and relatively high household debt will weigh on consumer confidence and retail sales growth in the short term, although the development pipeline for 2017-18 is still strong, reflecting earlier commitments by developers.

A total of 4.7m sq ft sqm of new space is currently under construction in the UK and due to be delivered in 2017-18. This is the second strongest development pipeline in this period after France. Beyond 2017-18, the UK development pipeline will be helped by supportive measures from local authorities, which are becoming more proactive and enabling the development of new shopping centres, including the acquisition of assets.

Justin Taylor, Cushman & Wakefield’s head of EMEA retail, said: “Shopping centre owners are responding to shoppers’ wishes to augment their physical shopping experience with a social or leisure experience. Development activity is increasingly focusing on new formats with a strong food and beverage presence as well as leisure and entertainment operators to increase footfall, dwell time and spend. Many occupiers are likely to use and fit-out space in the future in a different way. Customers will be attracted to brands where the internal physical environment offers the opportunity to meet, shop, work, rest and play.

“Extensions to established centres will account for around a quarter of new space and there is good logic behind that. The planning process is shorter, they have existing public transport solutions and a ready-made customer base to tap into – all of which reduces risk. As schemes get larger they can also attract more visitors and become regional destinations in their own right, which can bring additional benefits to the host city or town as well as the wider region.”


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