“The number of multiplex cinemas and screens in the UK will continue to grow significantly in the next five years,” was the message from Thomas Rose, Cushman & Wakefield’s head of leisure and restaurants, speaking at his firm’s inaugural Cinema Seminar this morning.
Rose painted a positive picture for the sector and framed potential cinema-centric opportunities to a mixed audience of developers, investors and real estate professionals at Cushman & Wakefield’s UK headquarters in London’s Portman Square.
Data collated by Cushman & Wakefield indicates there are 60 cinema developments which are predicted to open in the UK between 2014 and 2017; this will add approximately 490 screens to the market.
Cinema has become an increasingly popular anchor for smaller, mixed-use developments as retail demand has stalled.
“Cinemas are anchoring an increasing number of schemes in the UK. And property owners have finally realized that a leisure hub is essential – customers want a scheme with atmosphere and vibrancy,” commented Rose. He added: “In-town, out-of-town, both can be successful, as long as you create a memorable experience for visitors.”
Rose concluded: “The growth of multiplex cinemas in the future will be dominated by the ‘Big Three’: Odeon, Cineworld and Vue – they will tap into the extensive funding options at their disposal which other competitors may not be able to access.
“First and second generation cinemas will need to adapt and develop in order to compete with the new competition – or risk ‘cannibalisation’. It is also worth remembering that some older cinemas and even some new developments could fail and require redevelopment.”
Source: Cushman & Wakefield