CBRE: 25% increase in new shopping center space to be delivered in Europe in 2012 (EU)
Thursday 9 August 2012
|New shopping center development in Europe is expected to increase by a quarter in 2012 to meet retailer demand for modern, high quality retail space, according to the latest research by global property advisor CBRE.|
|CBRE’s Shopping Center Stock in Europe research examines existing shopping centers and those under construction in Europe of 10,000 m² and above. This represents the vast majority of centers in which international retailers are located or would like to be located. |
Across Europe, 51 shopping centers totaling 1.5 million m² of space opened in the first half of 2012 with another 3 million m² scheduled to open before the end of the year. If all of this space opens on time, completions will reach 4.4 million m² in 2012, 25% higher than in 2011.
Turkey is the most active market with almost 400,000 m² of new shopping center space completed in 2012, accounting for one third of new space delivered in the first half of the year. This is some way ahead of Germany (165,000 m²), with Italy and Poland (both 140,000 m²) just behind.
Neville Moss, Head of EMEA Retail Research, CBRE, commented:
"A highly active shopping center development market in Turkey, Poland and Russia is enabling retailers to grow store networks there, but elsewhere the number of new centers is more modest, providing fewer opportunities for expanding retailers. Crucially, very little of the new space addresses the lack of prime units in major city centers – the most sought after locations by retailers - and consequently some are finding it difficult to achieve their store expansion plans."
Some 3.6 million m² of shopping center space was completed in Europe in 2011, representing a 4.6% fall on the year. Nevertheless, this still signifies a significant level of new space, with only the development boom years of 2005-2009 seeing higher annual completion levels.
Emerging markets have dominated new development in recent years, but construction activity continues apace in the more mature European markets to meet retailer demand. In 2011, the big five western European markets (Spain, Italy, France, Germany and United Kingdom) accounted for one third of all new shopping center space in Europe.
Turkey was by far the most active market in 2011, accounting for just over 20% of new shopping center stock built last year, including the 160,000 m² Marmara Forum in Bakirkoy, Istanbul – the largest scheme in Turkey to date. In second position was Poland where 428,000 m² was completed in 16 centers, accounting for 12% of new space. Development activity remained high in Russia with nine new centers completed in Moscow and St Petersburg alone.
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