Ample supply of new commercial space in 2009

2009-12-02



Roughly 750,000 m² of new space in shopping centres will have been completed in 2009. However, supply is expected to fall off sharply in the coming years, according to Cushman & Wakefield.
The sizeable volume of shopping centre space completed this year is due to the fact that investments reaching completion now were launched two-three years ago, i.e. when the market was in robust shape. However, the coming years will bring significant changes on the market. In 2009 many projects were either postponed or suspended because of, among other things, investors' problems with obtaining financing as well as the decline in turnover that retail chains suffered as a result of the economic crisis. These trends will help shrink supply in 2010-2012 and, as a result, limit the amount of available retail space. C&W analysts believe that rents will fall slightly in the coming years and the commercialisation of centres will be more protracted. In addition, tenants will demand more preferential terms when leasing retail space.

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