Expansions of established shopping centers will drive new retail development across Europe over the next two years, according to Cushman & Wakefield. An estimated 4.5 million sqm is set to be delivered in 2017, with an additional 2.3 million sqm to hit the market in 2018, according to the latest European Shopping Centre Development Report. Expansions are expected to make up one-quarter of new supply.
In the Czech Republic, expansions will account for 80 percent of new supply. Approximately 57,000 sqm is in the pipeline for 2017 in the Czech Republic. The figure was lowered by 15,000 sqm from earlier estimates, due to the delayed opening of the Kika store, an extension of Galerie Butovice, which will be completed in early 2018. Other shopping center expansions include IGY České Budějovice and Centrum Chodov in Prague 4. The only newly built shopping center in Jablonec nad Nisou was already completed early this year. Jan Kotrbáček, partner and the head of Cushman & Wakefield’s CEE retail agency, says expansions make sense to developers, as the planning phase is shorter and public transport solutions already available. The projects can also tap into the existing customer base. “As projects get larger, they can also attract more visitors and become regional destinations in their own right, which can bring additional benefits to the host city or town as well as the wider region,” he says. Total stock of shopping center space in Europe rose to 159.4 million sqm by the year start. In the Czech Republic, total floor space amounted to 1.63 million sqm.
