UK shopping center real estate at a standstill

Demand for shopping center developments of the United Kingdom is projected to weaken, according to Cushman & Wakefield.

During the first half of 2011, a mere 46,500 square meters of shopping space was added to the market. While another 217,000 square meters of shopping space is expected to be added during the second half of 2011, 81 percent of that is thanks to the Westfield Stratford City, which accounts for more than two-thirds of the whole year's shopping space development total, according to the news source.

Kristina Gorkovskaya, a research analyst for Cushman & Wakefield in Europe, noted the standstill nature of the United Kingdom's commercial real estate market, but emphasized that Stratford City opened 95 percent leased.

"The limited supply of new space coming onto the market should support prime rental levels going forward, although further polarization between prime and secondary schemes looks likely," she said.

Through the first half of 2011, there were more than 30 shopping center real estate transactions, with five worth more than £100m ($154M USD).