23 November, 2011
There are approximately 600 shopping centres in Europe which are bigger than 20.000m2 and older than 15 years. Market research shows that approximately 50% of these shopping centres are in need of refurbishment and redevelopment.
Whilst the move towards refurbishment and redevelopment could be seen as a temporary consequence of the financial crisis, DTZ believes it is a permanent trend that will become increasingly evident in the market. Many centres that were built in good locations in the first half of the nineties now require investment to continue to generate high revenues, and both the cost and investment risk of refurbishment and redevelopment can be more favourable than the construction of a new centre.
A critical factor in the success of any centre is the quality of space on offer. With growing competition for tenants, creating the right space in the right location is imperative if owners are to maintain or improve their market position and cash flow. Maintaining high quality means adapting to changing economic, social, technological and sometimes political conditions. Refurbishment and redevelopment are important interventions to prolong the lifecycle of a shopping centre.
In response, DTZ has launched a new service bringing together DTZ's expertise in retail leasing development and project management to advise landlords on the refurbishment and redevelopment of shopping centres across Europe. The new service, launched at MAPIC 2011, draws upon DTZ’s local expertise and global knowledge.
Martyn Chase, European Retail Sector Head at DTZ, said: “Our new shopping centres service draw upon our extensive expertise and deep understanding of the challenges our clients face. DTZ is able to provide comprehensive advice and supervision throughout the refurbishment and redevelopment processes.”
Please click here to view the new ‘Shopping Centres: Refurbishment and Redevelopment’ brochure which provides an overview of DTZ’s shopping centres expertise, including case studies and team contact details.