Retailer expansion held back in Europe by lack of new shopping centre development
A shortage of new shopping centres being built in Europe restricted the expansion plans of retailers in 2010, but an increase in the amount of space available in emerging markets next year is expected to put retailer growth back on track, according to new research by leading global property adviser CB Richard Ellis (CBRE).
CBRE’s Shopping Centre Stock in Europe research found that 1.9 million square metres of shopping centre space was completed in 2010 - a fall of 36% from the previous year. The 2009 total was also 30% lower than 2008, which represented the peak in shopping centre development. However, if all of the new shopping centres due in 2011 are completed on time, there will be an increase of 53% in new space available to retailers next year, totalling 2.9 million sq m.
Although the development pipeline is considerably smaller than it was in the period from 2007 to 2008, renewed confidence in markets such as Turkey, Russia, and Poland has resulted in an upturn in construction starts and completions are forecast to rise again in 2011. There are currently 146 shopping centres (over 20,000 sq m) under construction in Europe, with the highest levels of activity in the emerging markets of Turkey (1.3 million sq m over 26 schemes), Russia (856,000 sq m over 19 schemes), and Poland (712,000 sq m over 21 schemes).