Jones Lang LaSalle has issued its latest Shopping Centre Rental Map which illustrates current market conditions across a range of European countries, giving an at-a-glance view of prime shopping centre rental levels together with short term growth prospects.
The highest prime shopping center rents during Q1 2010 in Europe were achieved in the United Kingdom at 1,900/m²/per annum, followed by France (1,700). The third most expensive rents were recorded in Russia (1,500) followed by the rest of Western Europe. Due to the limited availability of prime retail space in many shopping centres across Europe, the outlook for prime rents in most European markets is stable despite the inevitable slowing of demand from occupiers over the last 18 months.
James Dolphin, Head of European Retail Agency at Jones Lang LaSalle, said: "Despite some softening of occupier demand over the past 18 months, the outlook for prime rents in shopping centres in most European markets has remained stable. The scarcity of prime product and a weak development pipeline will further enhance the rental growth potential for the best product in core locations. Key markets we expect to witness strong growth over the next six months are Russia and Finland. However, downward pressures still exist on rents in some locations, such as Spain, Ireland, Romania and Hungary due the constraints on the economy and the perceived increase in unemployment."
"Overall, the dynamic face of retailing and continuing demand from new retailers for prime shopping centres, together with active management opportunities should continue to go some way in shielding the best schemes from challenging occupier conditions."
Source: Jones Lang LaSalle