BCSC 2015: Shopping centre investment volumes for the first three quarters of 2015 are expected to be significantly lower than the volumes for the same period in 2014.
However, a strong end to the year is predicted with more than £3bn of stock under offer or available, according to research from Cushman & Wakefield.
According to the Shopping Centre Development Report out today at BCSC, investment volumes from the start of the year to the end of September are predicted to reach £2.78bn, down from £4.33bn for Q1-Q3 2014. The UK general election in May delayed the marketing of a number of deals, said the report.
However, with due diligence completing on a number of deals over the summer months and with £3.16bn of shopping centre stock under offer or available, investment could see an end-of-year surge.
These investment figures include developments that completed in 2015 such as Grand Central Birmingham.
The volume of shopping centre space due to be completed in 2015 is expected to total 2m sq ft, according to the report. This is marginally down on the five-year average (2010-2014) of 2.2m sq ft but 24% up on the 1.6m sq ft added in 2014.
Completed space in 2016 is likely to remain steady at 1.8m sq ft.
Justin Taylor, Cushman & wakefield’s head of EMEA retail, said: “The real estate market has been going through a period of yield shift that has delivered some excellent returns for strategic investors in shopping centres. The next few years look likely to be more about income growth than yield movement, so the value of a good asset manager could be considerable.”
