Retail development in need of therapy

SHOPPING centre development in the UK has slowed to a crawl with the total 2012 pipeline forecast to be just 31,500 sq m, the lowest annual figure since the early 1960s.

Research from Cushman & Wakefield reveals that only one new scheme, the Swan Shopping Centre in Yardley, Birmingham, which opened last month, is included in this year’s pipeline.

The amount of new shopping centre space added to the market last year was up 14% on 2010, with provision increasing by 276,000 sq m. However, this figure is  skewed by Westfield Stratford City in London, which increased total space in the capital by 10%.

On 1 January 2012, total shopping centre space in the UK stood at 16.4m sq m across 700 schemes. Around 170,000 sq m of new space is in the pipeline for 2013, including New Square in West Bromwich (43,900 sq m).

Rob Alston, 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 revitalising catering facilities to increase shopping hours.

“Development projects that are likely to remain viable and in demand are those in prime locations in major cities where there is an undersupply of shopping centre space and a large population.”

Cushman & Wakefield is dealing with 23 shopping centres from its Birmingham office.

Among the latest to be added to its porfolio in the Midlands are Three Spires in Lichfield and the Isaac Newton Centre in Grantham. This follows C&W’s appointment last summer as letting agent to the Mander Centre in Wolverhampton.

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