Translated by
Jennifer Braun
Published
May 1, 2016
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The ups and downs of 2015 global mall openings

Translated by
Jennifer Braun
Published
May 1, 2016

Some 41,9 million square meters of shopping centers were in development across the world in 2015, compared to 39 million the previous year. The number of shopping centers opening is however down by 16,7 percent, to 10,7 millions square meters.
 
Asian cities occupy the first nine places of the top ten most active global markets, according to CBRE. China alone accounts for two-thirds of construction globally. The cities of Chongqing, Shenzhen, Chengdu and Shanghai account for over 30 projects for a total of three million square meters of space. Developing markets like Manille, Moscou, Mexico City and Bangalore are equally dynamic, while Eastern Europe shows a decline.

CBRE

 
“In a number of markets where the network of shopping centers is already substantial and in a context of low demand, owners have to face an oversupply of retail space,” explains Natasha Patel, a retail researcher at CBRE. “Henceforth, owners must concentrate their efforts on improving attendance by relying on the experimental dimension of shopping, combining both a mix of restaurants, bars and recreation at large.”  
 
Faced with competition from the Asian market, Europe is showing slow activity with only 15 percent of store openings seen, some 1,6 million square feet in cities. Moscou is the only city not located in Asia that was in the top ten most active global markets. Meanwhile, the Middle East is still an attractive market, notably in Dubaï, Doha and in Qatar.

“In western Europe and the United States, the lack of quality sites continues to be a problem. Extensions, renovations and active repositioning continues to be Western Europe’s main objective in hopes to attract big name brands and consumers,” says Natasha Patel. “Access to quality sites will remain a challenge in a number of markets and will push brands to consider alternative sites with high traffic, such as in transport nodes.” 

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