Shopping centre development is set to hit a four-year high in
2017, according to analysis by Cushman & Wakefield.
New openings and redevelopments totalling 2.7m sq ft are currently
under construction and due to open next year, the largest amount of new retail
floor space added since 2013.
Cushman & Wakefield’s UK Shopping Centre Development report
highlights a lack of activity so far this year, with shopping centre floorspace
remaining static at 185.6m sq ft.
However, 10 schemes totalling 1.4m sq ft are due to be completed
by the end of 2016. They include Victoria Gate in Leeds and Bond Street in
Chelmsford.
New openings due to take place in 2017 include the 580,000 sq ft
Lexicon shopping centre in Bracknell. Other development include an extension at
Westfield London and the redeveloped Westgate Shopping Centre in Oxford.
John Percy, Cushman & Wakefield’s head of shopping centre
development consultancy, said: “In football parlance, this has been a year of
two halves. After a quiet first six months, we will see schemes completing up
and down the country and 2017 will be busier still.
“More than half of this new space consists of extensions to, or
refurbishments of, existing centres, reflecting the additional risks and costs
of establishing a new build project and taking it through the development
process.”
Shopping centre investment volumes in the first half of 2016
totalled £1.46bn, down 27% year-on-year. Local authorities accounted for five
of 27 transactions.
Percy said: “Councils have the advantage of a low cost of capital
but purchasing assets also gives them the opportunity to ensure coordinated
control of town centre redevelopment.”