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Shopping centre development report United Kingdom

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Development activity has been restrained in 2014, with an estimated 124,300 sq.m of shopping centre space to be added over the course of the year, less than half the total added in 2013. The short-term construction
pipeline remains subdued but 2017 should see a surge in activity.

The 54,400 sq.m of new GLA delivered in H1 was in the form of 3 shopping centre developments. All were in the West Midlands with the Old Market in Hereford being the largest (28,600 sq.m). Three smaller shopping centres are expected to open by the end of 2014, totalling 20,900 sq.m, alongside a further gain of 48,500 sq.m over 7 extensions and 1 redevelopment.

The development pipeline for 2015 totals 154,618 sq.m and includes the 51,100 sq.m Westfield Bradford and the 27,870 sq.m Friars Walk in Newport, both which are scheduled to open in Autumn 2015. Next year should also see the delivery of several shopping centre extensions, most notably Birmingham’s Grand Central centre, which when complete, will nearly double its size to 53,000 sq.m. The 2016 development pipeline lags further behind that of 2015 with 27,900 sq.m set to be added when Bond Street shopping centre in Chelmsford completes in 2016.

2017 should see development activity pick up significantly, with an estimated 179,000 sq.m to be delivered primarily over two new shopping centre schemes: Victoria Gate in Leeds (117,000 sq.m), and the regeneration of Bracknell Town Centre (53,900 sq.m). Looking further ahead, ongoing economic recovery and greater availability of financing options should help to kick-start the construction of new schemes and extensions that have already obtained planning permission.
SOURCE: Cushman & Wakefield
TH Real Estate:
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IHL Group:
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