Shopping Centres Leading the Way to Recovery?
In response to the rapid expansion of the European shopping centre investment market over the last five years, we present our Shopping Centre Rental Map, prepared in co-operation with many of the largest shopping centre owners and managers in Europe. Jones Lang LaSalle’s Shopping Centre Rental Map illustrates current market conditions across a range of European countries, giving an at-a-glance view of prime shopping centre rental levels together with short term growth prospects. Price comparison is important whether filling your shopping bag or investing in shopping centres.
The map below is based on Jones Lang LaSalle's proprietary prime shopping centre data series.
Use the tool on the left to zoom in, drag the map to view other areas.
We have changed the methodology so please note that the size of the standard unit has been changed and now reflects a 200 sq m unit. This change has resulted in rental movements however this does not reflect a market trend.
Notes: * Prime Shopping Centre Rent represents the open market net rent that could be expected for a notional ‘standard’ shop situated in a prime major regional shopping centre as at Q1 2010. The rent quoted reflects a standard unit of 200 sq m. Prime shopping centre rent in the Netherlands reflects a city centre scheme.
The highest prime shopping centre rents in Europe are achieved in the United Kingdom, where they stand at €1,900 per sq m per annum, followed by France. The third most expensive rents are recorded in Russia followed by the rest of Western Europe. Due to the limited availability of prime retail space in many shopping centres across Europe, the outlook for prime rents in most European markets is stable despite the inevitable slowing of demand from occupiers over the last 18 months.
Shopping centre rents in Russia and Finland are expected to grow in the next 6 months. In Russia rents have decreased significantly in 2009, and are expected to correct in a positive direction, however still not at pre-crisis levels. International retailers have overlooked Finland before, but the retail market is improving. As the Finnish retail market is reliant on shopping centres, this sector is likely to benefit more from increasing demand. Constraints of the economy and the perceived increase in unemployment are likely to put downward pressure on rents in Spain; this trend will be mirrored in the Irish, Romanian and Hungarian retail markets.
In general, the dynamic face of retailing and continuing demand from new retailers for prime shopping centres in Europe, together with active asset management opportunities should continue to go some way in shielding the best schemes from the generally challenging occupier conditions.
Please contact us directly to discuss any of the issues raised here or for more information on our research capability:
Liselotte Tiemensma
EMEA Retail Research
liselotte.tiemensma@eu.jll.com
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