According to a recent research from CBRE Group, Inc., developers finished more retail centers around the world in 2016 than in 2015, although momentum slowed in many countries as retailers sought to strike the perfect mix between brick and mortar and e-commerce operations. used car for sale
"In the omnichannel era, retailers are focused on ensuring that they have the optimal mix of brick-and-mortar stores and e-commerce operations," said Anthony Buono, Chairman of CBRE's Global Retail Executive Committee. "They are using sophisticated analytics and market knowledge to choose the best store sites rather than the most store sites." "At the same time, a reduction in development volumes will almost certainly favor retail-center owners by sustaining rental rates."
According to CBRE's annual survey of global retail construction, builders finished 134.5 million square feet (12.5 million square meters) of shopping centers last year, an increase of 11.4 percent over 2015. China accounts for seven of the top ten retail completion markets, with Mexico City, Moscow, and Melbourne rounding out the top ten.
In many markets, though, construction activity has halted. According to the CBRE research, the global pipeline of retail centers under development decreased by 22% year over year to 360.6 million sq. ft. (33.5 million sq. meters) at the end of last year.
Last year, retail completions in the Americas increased by about 44%, owing primarily to an increase in building in Mexico. Last year, the booming automobile manufacturing industry in Mexico aided developers in completing 14 million square feet (1.3 million square meters) of retail malls in three major Mexican towns. Houston, New York City, and Honolulu were among the markets in the United States that received the greatest new supply last year.
The Asia-Pacific region (APAC) - particularly China - remains the world's retail construction hotspot. In 2016, more than 90% of cities in APAC surveyed by CBRE had large-scale retail construction, compared to 56% in the Americas and 14% in Europe, the Middle East, and Africa (EMEA). APAC accounted for two-thirds of all retail construction constructed in 2016.
Even APAC and China, though, look to be taking a break. The pipeline of retail facilities under construction in APAC was down 24% from a year before at the end of 2016. Last year, China completed about 62 million square feet (5.75 square meters) of retail centers, a modest decrease from the previous year, and half of the Chinese malls that opened last year were delayed by at least six months due to sluggish leasing activity.
"The Chinese retail sector is showing signs of improvement. Some markets and submarkets are experiencing short-term oversupply problems, while others are thriving "CBRE Senior Director, Advisory & Transactions, Retail Asia, Joel Stephen remarked. "Retail markets in APAC are booming, with strong demand driving construction in cities like Melbourne, Brisbane, Kuala Lumpur, and Ho Chi Minh City."
EMEA's retail construction increased by 18 percent last year, although it still lags behind APAC and the Americas. Big shopping malls opened in Moscow, South Africa, and Kyiv, Ukraine.