6
ANALYSIS
Developments
deferred
Research from Colliers CRE highlights an impending shortage of new retail floorspace
Despite the savage recession, the
overall shopping centre development
pipeline is only 6.3 per cent lower than
at this time last year, according to new
research from Colliers CRE. The agent
calculates that there is now 43.7m sq ft of
shopping centre floorspace either under
construction, with permission or in the
planning stages in the UK.
According to Colliers, 2.6m sq ft of new
shopping centre floorspace was completed
in 2009, down from 8m sq ft in 2008. And it
expects almost 2.7m sq ft of shopping centre
floorspace to be completed in 2010.
The largest scheme to open this year
will be Hammerson’s newly acquired
development, The Rock in Bury. It will provide
over 500,000 sq ft of retail space, anchored
by Marks & Spencer and Debenhams, and is
due for completion in July. Another significant
project is Capital Shopping Centres’ Eldon
Square South extension in Newcastle upon
Tyne. Once completed this spring, it will Colliers warns that forecasting future centre in Coleraine town centre after
provide a further 410,000 sq ft of retail space, supply is an inexact science, because receiving the go-ahead for 190,000 sq ft of
bringing the scheme up to 1.3 m sq ft. developers are remaining very tight-lipped retail floorspace in September. Completion is
Significantly, the 6.5m sq ft of shopping about construction timescales in the current scheduled for Easter 2013.
centre space currently under construction unpredictable economic climate. However Head of research Dr Richard Doidge stuck
accounts for just 15 per cent of the total it concludes that however much developers his neck out to say: “Assuming the economy
development pipeline. Another 16m sq ft of say they are committed to their projects, did move out of recession at the end of 2009,
new shopping centre floorspace has planning it is likely that many of the schemes in the the process of recovery should begin to take
permission, but work has not yet started on pipeline will never be built out. place this year and we would expect the first
site. In many cases, construction was already Colliers highlights several major schemes wave of major shopping centre development
due to have started but has been put on hold which are more likely to go ahead, including to commence on site in 2011/2012 leading to
indefinitely, with no clear timetable in place Northgate in Chester. ING and Land Securities a peak in completions post 2013.”
for progress in the future. are due to submit a new planning application But he warned: “This is very much
The remaining 50 per cent of pipeline shortly for a revised scheme following dependant on a number of variables, such as
space is in the pre-planning or application concerns that the development was no the speed of the recovery, retailer demand,
stage. This includes the mixed-use longer viable in its existing form. developer confidence and, ultimately, funding.
redevelopment of the 40-acre Battersea Other schemes that have made progress What is clear though, is that for the next five
Power Station site, where a planning in the past six months include Station Hill years at least there will be very little new
application was submitted in October for in Reading, where Sackville Properties has shopping centre floorspace coming onto the
700,000 sq ft of retail space. Also of note is recently secured outline planning permission market.”
Lakeside in Thurrock where Capital Shopping for its mixed use scheme providing 200,000
Centres has begun to work up plans for an sq ft of retail. Work could start in 2011, with Find out more:
extension following the scheme’s designation the first phase completed by 2014. For more information, please contact the author or
as a regional shopping centre within the East And in Northern Ireland, construction visit the website:
of England, which will allow for new retail is due to commence in August next year www.shopping-centre.co.uk/development
floorspace. on Fermac Properties’ Ramparts shopping graham.parker@jldmedia.com
SHOPPING CENTRE January 2010 www.shopping-centre.co.uk
06-SCJan10-Analy1.indd 8 14/1/10 18:53:03
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