The recovery may not be complete and the impact it has on rents will remain mixed. The investment market has improved greatly, compared with the occupational market which is still a way behind.
Development of shopping centres is due to be boosted due to the economic upturn. The current potential is still well below what was there before the financial crisis, but it is showing signs of a positive response by developers to the lift in the economy. The forecast for this year indicates that only about 100,000 sq m of new shopping centre space will be made available, with around 110,000 sq m during 2015.
This is dependent on the improvement of the economy and debt availability, which may increase development, prompting a revision of the forecasts. New schemes are not gaining at all and it appears that activity in the development market will continue to focus on extensions and refurbishments of schemes that already exist.