- An unprecedented 32 million square meters of shopping center space is currently under construction across the world, representing a year-on-year increase of 15%.
- Development activity is heavily concentrated in emerging markets, most notably China—which, as home to four of 2012’s five most active markets and half of all shopping center space currently under construction, is the most active development market in the world.
- Other markets experiencing substantial expansion include Istanbul, Abu Dhabi, Bangkok, Mexico City, Hanoi, Kuala Lumpur, Moscow and St. Petersburg. In contrast, there was little development in the more mature U.S. and western European markets. In Europe, only 20 of the 93 cities in the survey saw the opening of a new shopping center last year; 72% of them were in eastern Europe.
- While cross-border retailers continue to seek prime space, much of the new space in emerging markets is located in peripheral areas of large cities, appealing only to domestic retailers. In many cities, the mismatch between demand and supply has led to increasingly high rents in prime areas and high vacancies elsewhere.
Download the Global Viewpoint (April 2013)