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Record amount of new shopping centre space due to open across Europe in 2007
15 Nov, 2006, London
A record 13.8 million m² of new shopping centre schemes are due to open across Europe this year and in 2007, according to global property services firm Cushman & Wakefield.
In its European Shopping Centre Development report, Cushman & Wakefield expects that the total amount of gross leaseable area (GLA) of shopping centre space in Europe will break through the 100 million m² mark to reach 107 million m² by the end of 2007.
John Strachan, Cushman & Wakefield's global head of retail, said: "Passing the 100 million m² mark will be an historic moment for retail as shopping centres have increasingly become a key part of life across an enlarged Europe."
Boris van Haare Heijmeijer, Cushman & Wakefield's head of shopping centres in Europe, adds: "The emerging markets of Central and Eastern Europe are seeing most growth in the amount of new space, but the more mature markets of Western Europe are also seeing high levels of development as developers remodel the concept of shopping centres to cater for the changing demands of occupiers and consumers."
Cushman & Wakefield has been tracking shopping centre space across Europe since the market first started to develop in the 1960s. These latest results appear in the latest biannual edition of European Shopping Centre Development.
Of new space, not including extensions, scheduled to open in 2006 and 2007, Russia tops the ranking on a country basis, followed by Poland and Italy. Russia has an estimated 1.5 million m² of new schemes due to open in the second half of 2006 and in 2007. One of the most active developers is Swedish retailer IKEA which is due to open five of its Mega Malls in the last quarter of 2006, in Ekaterinburg, Nizhny Novgorod, Dybenko in St-Petersburg, Parnas in St-Petersburg and Belaya Dacha in Moscow.
Other schemes due for completion in Moscow before the end of 2007 include a business complex by the Korean Lotte Group which includes 18,000 m² of retail at the junction of the Garden Ring and the Novy Arbat retail district.
Natalia Oreshina, senior director, Cushman & Wakefield Stiles & Riabokobylko, Cushman & Wakefield's Russian office, comments: "Russia is a booming market, and we are very optimistic about the future as demand remains strong – both from occupiers and consumers.
"Shopping centre developers are now turning their attention to developing schemes in cities of between 400,000 and 600,00 people," continues Natalia. "Before the emphasis was on the 'million-people' cities. We are also seeing leisure as an increasingly important anchor. For example, Russian developer The Regions is opening a 31,000 m² GLA scheme, June, in Saint-Petersburg in December of which around 50 per cent will be leisure, including a fitness centre, multiplex, game zone and bowling."
Regarding Poland, which has the second highest level of space due to open in the run-up to 2007, Piotr Kaszynski, Cushman & Wakefield's head of retail in Poland, comments: "Nearly every main Polish town and city will have a modern-format retail scheme by the end of 2007, including the landmark Zlote Tarasy in Warsaw and Arkady Wroclawskie in Wroclaw. From next year we will see greater construction activity of new retail schemes in Poland's medium-size cities. However the next wave of developments in the country’s main cities will take place in 2008-2010, with the revitalization of entire city districts, such as Galeria Baltycka in Tricity and the redevelopment of the railway station in Katowice."
In terms of percentage increase of shopping centre space coming onto the market, Bulgaria and Romania head the list with rises of more than 150 per cent. Both these countries are due to enter the European Union in 2007. Bulgaria has 98,000 m² of new shopping centres opening in 2006/2007 for a market of around 7.5 million. Romania, on the other hand, with a population of 22 million, will be the second biggest Central or Eastern European EU country after Poland, and has 470,000 m² of schemes due to open.
Razvan Gheorghe, General Manager of ACTIV Consulting, Cushman & Wakefield's associate office in Romania, comments: "Romania has one of the lowest provisions of shopping centre space in Europe, with the country’s first shopping centre, Bucuresti Mall, not opening till 1999. Given this, and the size of the consumer market, the country presents a tremendous opportunity for international retailers and investors."
Key schemes due to open in 2007 include Romanian developer Baneasa Investment's Baneasa Shopping City with 55,000 m² of retail in Bucharest, Austrian developer Raiffeisen evolution's Floreasca City Center with 33,000 m² of retail in Bucharest and Central European developer TriGranit Development Corporation’s Polus Center in Cluj-Napoca, with 62,000 m².
M² OF NEW SHOPPING CENTRE SPACE TO OPEN JUL 2006 – DEC 2007*
*Figures exclude new extensions of existing schemes.
Source: Cushman & Wakefield
Notes to Editors:
Cushman & Wakefield is Europe’s leading and largest retail property adviser:
In 2005, Cushman & Wakefield's 250 retail leasing professionals advised on almost 4,000 deals across Europe totally over 2,000,000 sq m of space
Its capital markets team advised on retail investment deals totalling €6 billion
It is currently instructed on 300 pipeline retail development schemes totalling over 10 million square metres
In total Cushman & Wakefield has over 400 retail professionals across Europe.
Cushman & Wakefield is the world’s pre-eminent real estate services firm. Founded in 1917, the firm has 192 offices in 58 countries around the globe, and more than 11,000 talented professionals. In Europe, Middle East and Africa the firm’s operations extend to more than 1,500 professionals in 34 countries. The firm delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process. These solutions include helping clients to buy, sell, finance, lease, and manage assets. Cushman & Wakefield also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services. To find out more about Cushman & Wakefield, visit www.cushmanwakefield.com