Shopping centres suffering for new space

Shopping centres are currently suffering as new research

 shows that just 31,500 sq m (339,063 sq ft) of new shopping centre space is to be developed this year, the lowest annual figure in almost 50 years.

Commercial real estate firm Cushman & Wakefield says that only one new scheme, the 15,600 sq m Swan Shopping Centre in Yardley, will open this year with the rest of the new space made up by nine extensions to existing sites. Last year saw a 14 per cent rise in shopping centre construction, with 276,000 sq m added in the UK, but this figure was hugely distorted by the opening of Westfield Stratford which became the second largest scheme in the country when it was unveiled in September.

Only two other centres opened during the year, which points towards a steady decline compared to the years 2001 to 2010 when an average of nine new shopping centres were completed annually. Toby Sykes, Retail Partner at Cushman & Wakefield, said: “Development is expected to continue at a restrained pace for the foreseeable future. While selected retailers are expanding, on the whole occupiers remain cautious against a backdrop of sluggish retail sales and low consumer confidence.

“We continue to advise many landlords on refurbishments and extensions on existing schemes to improve tenant mix, and on revitalizing catering facilities to increase shopping hours.”