A total of more than 17 million m² of new shopping center space is due to open in Europe this year and next, according to the latest biannual edition of the European Shopping Centres Report produced by global real estate consultant Cushman & Wakefield.
This compares with the existing record of 5.8 million m² of GLA of new shopping center space opened last year, up nearly 13% on 2005, which brings the total amount of shopping center space across Europe to 97 million m².
With 6.45 million m² due to open this year and 10.56 million in 2008, John Strachan, Cushman & Wakefield's Global Head of Retail, comments, "This year is on course to be another robust year, but 2008 is the year that really stands out with a planned 10 million m² of new schemes due to open. This is led by particularly strong development activity in Spain, Poland and Turkey."
Shopping center Espacio Buenavista in Oviedo, the capital of Asturias.
Spain tops the country ranking of new shopping center space due to open in Europe in 2007 and 2008. It will see a potential total of 1.93 million m² of new schemes open this year and next. Cristina Pérez de Zabalza, Head of Retail for Cushman & Wakefield in Spain, says, "The Spanish shopping center boom is far from over. Opportunities still remain not only in the main cities of Madrid and Barcelona, but also in provincial areas of the country."
Most shopping center development activity in Spain is in out-of- town locations, however, an example of a key new scheme due to open in 2007 in a city-center location is Espacio Buenavista in Oviedo, the capital of Asturias. The scheme, developed by Multi Corporation, is due to open in November 2007. It will offer a total 60,500 m², with 28,000 m² of retail, a 2,300-m² hypermarket, 2,000 m² of restaurants, 7,500 m² of leisure and 20,700 m² of common areas.
In second place comes Poland, where 1.88 million m² of new shopping center space is due on the market this year and next. Piotr Kaszynski, Cushman & Wakefield's Head of Retail in Poland, says, "The leading international and national retailers operating in Poland are targeting the 40 Polish cities that exceed 100,000 inhabitants. Their demand for good-quality space is in turn creating a demand for new shopping center space in these cities."
The key scheme opening in Poland in 2007 is Zlote Tarasy. The 225,000-m² mixed-use scheme in central Warsaw includes a 63,500-m² shopping center which opened in February this year. All of the retail space is leased, with tenants including Marks & Spencer, Van Graaf, Zara, H&M, Hugo Boss, Mexx, New Yorker, Next, Intersport, Albert, Saturn, Stradivarius, Bershka, Pull and Bear, Hard Rock Café, as well as Polish retailers Royal Collection, Empik, Smyk, Almi Decor and cinema operator Multikino.
Turkey is in third place in the ranking, with 1.65 million m² of shopping center space due to open in 2007 and 2008. Nilufer Kula, head of Retail of Cushman & Wakefield's Alliance Partner in Turkey, P&D Consultants, says, "Demand is high both from consumers and retailers for modern shopping center space in Turkey, given that the country has only 37,000 m² of shopping center space per 1,000 inhabitants, compared with the European Union average of 176,000 m²."
The UK has nearly 1.4 million m² of new space due to come onto the market in 2007 and 2008, but if extensions to existing schemes were added, this figure would increase by nearly 500,000 m². Next year is due to be the most active year for openings in the UK, including the 55,000-m² extension to Highcross Quarter, Leicester, which will bring the total gross leaseable area to 105,000 m², the major regeneration project Liverpool One, with 130,000 m² of new retail space, and Westfield London (150,000 m²).
Justin Taylor, Cushman & Wakefield's Head of Shopping Centres in the UK, says, "Most of the new space is in the form of retail-led schemes designed to regenerate town and city centers. Extensions