Global shopping centre development continues to grow with a total of 11.4 million sqm of new shopping centre space opened in 2014, compared with 10.6 million sqm in 2013.
Emerging markets, particularly in Asia, have continued to dominate the shopping centre development pipeline with over 39 million sqm under construction at the end of last year. China accounted for over 60 percent of the pipeline, with Russia, Turkey and India also possessing significant space under construction, according to the latest research from CBRE.
Shanghai tops the ranking for most new space under construction with 4.1 million sqm, followed by Shenzhen (3.4 million sqm) and Chengdu in third place with 3 million sq m, Chongqing and Guangzhou make up the top five most active markets with more than 20 projects in the pipeline. However, supply of new development in China and India is at risk of slowing down due to the economy and mounting financial pressures on landlords. Construction of some shopping malls is on hold due to lack of funding or in some cases landlords are considering changing the schemes to other uses.
Europe accounted for 20 percent of total completions in 2014 with Russia and Turkey continuing to dominate the new development pipeline. Moscow was the most active European megapolis in 2014 and the only city outside of China in the top five. Notable schemes completed include the AVIAPARK which is currently Europe’s largest shopping mall totalling 231, 000 sqm of gross leasable area (GLA). Istanbul saw the addition of eight new shopping centres totalling 440, 253 sqm and also has one of the largest development pipelines in Europe. This has been led by the easy availability of credit in the Turkish market which has fuelled consumer spending.
In the Middle East, Abu Dhabi continues to strengthen its position as a leading retail destination with the completion of four new centres including the Yas Mall located on Yas Island with space for 400 shops, a 20 screen cinema and 10,000 car parking spaces. Paris was once again the most active market in Western Europe, with only one centre opening in 2014.
Natasha Patel, EMEA Retail Research, CBRE, commented: “The factors driving the development pipeline of new space remains largely unchanged compared to last year in terms of location with new construction dominated by Asia and in particular China. Other influences include a growing middle class population in emerging markets, the urbanisation of large cities and a lack of high quality retail space required by cross border retailers. Western Europe and the U.S. continue to suffer from a lack of new development and extensions and refurbishments of existing centres will be a key focus in a bid to continue to attract key retailers and consumers.”
In 2014 more than 600,000 sqm of shopping malls with GLA of no less than 20,000 sqm was introduced in Moscow market. By this indicator Moscow market took the 5th place, yielding only a few Chinese cities for obvious reasons.
In 2015 due to influence of economic difficulties, weakening consumer demand and reduction development plans of retailers about 35 percent of projects that were planned to be commissioned this year will be frozen. Nonetheless, the volume of new delivery in 2015 still amount 550,000 sqm that suggests that in 2015 Moscow would be in the top five cities with the fastest growing retail market in the world.
Valentin Gavrilov, Director of Research, СBRE in Russia, said: “Current crisis most strongly affects the amount of developers activity in the period of 2016-2018’s when the volume of new delivery will not exceed 250,000 – 350,000 sqm per year.”
Chainels, the tenant experience app, just announced that it has closed a successful Series-A funding round, raising close to €3,000,000 from Capricorn Partners via their Capricorn Digital Growth Fund...