A Case for Optimism
In a boost to the industry, the UK economic outlook for 2025 leans towards cautious optimism as economic growth is expected to pick up, driven by rising government and consumer spending as incomes increase and interest rates decline. Here, RLI takes a closer look at a selection of retail real estate projects from across the UK & Ireland that will benefit from this seemingly more positive outlook.
Interest in the shopping centre space is the strongest it has been for five years… This is the viewpoint of Knight Frank in their report entitled ‘Retail Investment Update & 2025 Outlook’. The report continues by saying that a growing acceptance of their relevance, along with limited opportunities to acquire assets of scale at such discounted yields, are driving major investors to consider the sector once again.
In terms of pure retail sales, the UK’s retail trade volume index was expected to grow by 1.1 per cent in 2024 and is expected to grow by 3.4 per cent in 2025, according to JLL in their ‘European Retail Market Outlook 2025 – Retail renaissance: Adapting to a new era of growth’ report.
Over the coming pages we will look at a selection of retail real estate projects that are and will drive the industry forward in the years to come.
Projects Across the UK & Ireland
Gunwharf Quays’ owner, Landsec has received planning approval from Portsmouth City Council for the third phase of its £45M investment to give visitors the best all-day out experience at the UK’s leading waterfront outlet destination. Phase three of the investment will focus on Central Square, a high footfall area at the heart of Gunwharf Quays. Guests using the basement car park enter the shopping destination through Central Square and it acts as a link between all other areas of Gunwharf Quays, such as The Waterfront and The Avenues. Proposed works are due to commence in spring and include converting a significant part of the vacant space previously occupied by Eden nightclub into a new family-friendly dining destination, enhancing the outlet’s food and beverage offering and bringing new life to this part of Gunwharf Quays.
Bankside Yards is an unparalleled commercial, residential, wellbeing and retail riverside destination; a future-focused regeneration prioritising accessibility and sustainability. The £2.5bn, 5.5 acre scheme features 650 apartments across six buildings, along with 50,000sq ft of amenities, retail, bars, restaurants and culture and 350,000sq ft of office and commercial space. The commercial building Arbor launched February 2023 and was the first building to be completed at Bankside Yards. Built to inspire innovation and productivity, Arbor is a workspace for the future. Launching spring 2025, Opus will be the first residential building to open at Bankside Yards. Standing at 50 storeys with unprecedented views, Opus will be the pinnacle of refined living in prime central London. In total, the 1.4 million square feet redevelopment project is under construction by an international consortium comprising Native Land, Temasek, HPL and Amcorp Properties, located adjacent to the Thames in the London Borough of Southwark.
Back in October, Legal & General (L&G) formally announced the handover of No.1 West Bar Square, an award-winning, state-of-the-art new 100,000sq ft Grade-A office building, to Sheffield City Council (the Council). No.1 West Bar Square is the first of a collection of modern, sustainable office spaces within the comprehensive £300M regeneration of West Bar. When complete, the scheme will deliver office buildings totalling 500,000sq ft of workspace that will support up to 6,000 jobs in a strategic location adjacent to Sheffield city centre and the Kelham Island neighbourhood. Developed by Urbo (West Bar) Ltd, a joint venture between Urbo Regeneration and Peveril Securities (the development arm of the Bowmer and Kirkland Group)., West Bar will be transformed into a new vibrant mixed-use environment. When completed, in addition to offices, it will also contain retail, leisure, hotel and living space and integrated parking.
Brent Cross Town is set to be a new town designed from the ground up with people’s wellbeing and happiness in mind. The upcoming project will be surrounded by 50 acres of parks and situated just 12 minutes from St. Pancras International. At its heart will be a vibrant town centre alive with shops, bars and restaurants, with a vision to be carbon net zero by 2030. A joint venture between Related Argent and Barnet Council, developer Related Argent’s vision for Brent Cross Town is braver than ever, it’s time to shake things up. The town will bring together 6,700 elegant new homes, over 50 locations for retail, food and drink, provide best-in-class workspaces for over 25,000 people and build a community around health and wellness with fantastic new amenities. Brent Cross Town will become the gourmet heart of north London, offering exceptional dining experiences and a vibrant new cultural scene as well as ensuring guest’s daily needs are met within a short walk, whether that’s their kids’ day-care, a grocery store or local cinema.
Dominus, a progressive developer specialising in urban renewal, has submitted plans for an exciting redevelopment of The Meadows shopping centre and surrounding area. The developer has ambitions to breathe new life into the heart of Chelmsford city centre, creating a new 365-day-a-year destination and revitalising the 3.5ha site in collaboration with architecture practice, JTP. Dominus has a bold vision for the site: subject to planning approval it would become a daytime and night-time destination; a thriving and sustainable mixed-use space that brings the riverside back to life and celebrates Chelmsford’s character, heritage and identity. Plans for the revitalised site include over 8,500sq m of retail, commercial and leisure space with potential to create nearly 400 full-time jobs. This is complemented by up to 762 much-needed new homes, creating a residential neighbourhood within the city centre, alleviating pressure on greenfield land for housing development that is less sustainable and more likely to contribute to commuter traffic. The area would benefit from a renewed sense of place, supported by a heritage-inspired design and nearly 1.7ha of high-quality public space, equating to the size of 2.5 football pitches. Work is anticipated to start on site this year.
As Manchester’s gastronomic prowess continues to rise, leading retail and leisure destination, the Trafford Centre has unveiled a new restaurant and dining development Eastern Garden, dedicated to Mancunian talent, a first for the shopping centre. Responding to consumer demand, Eastern Garden celebrates independent operators with a line-up that includes the four brands of Nichi, Chit ‘n’ Chaat, Hello Oriental and Blanchflower Coffee and Bakery, demonstrating the centre’s commitment to championing the region’s cuisine. The new area, which was once referred to as Chinatown, is a vibrant and visually stunning dining destination designed to reflect a blend of traditional and contemporary Asian aesthetics. The four culinary concepts each bring their unique flavours and experiences to the beautifully crafted Eastern Garden setting, offering visitors a taste of Manchester’s eclectic food scene.
The ongoing redevelopment of Eldon Square proves not all shopping centres are made equal. A symbol of the Newcastle community for almost 50 years, the investment into Eldon Square is part of a £162M public-private investment programme that will reposition the retail offer in Newcastle city centre. It will feature investment into four key areas, £65M into Eldon Square, £50M into a City Centre Transformation Programme, £40M into Fenwick and the surrounding public realm (Brunswick Place) and finally a £7M investment into the Grade 1-listed Grainger Market. With a vision of creating a space that goes beyond merely food and drink, but one that incorporates music, culture and community, the introduction of innovative and immersive entertainment brands such as the upcoming 60,000sq ft Freight Island and Flight Club opening later this year, will offer a next-level experience that elevates Newcastle’s status as a vibrant cultural destination and social hub.
Once described as the ‘Piccadilly of the South’, Elephant and Castle will soon be home to a diverse new town centre incorporating housing, restaurants, shops, a university, workspace, leisure and cultural facilities, transport infrastructure and acres of new public realm. The Elephant and Castle Town Centre team has always worked closely with the local community and we welcome the support we have received from residents, traders and visitors to the area. Being developed by Lendlease, the first phase has already completed at Elephant Central, where you’ll find a vibrant offer of shops, bars and restaurants including the independent retailers in Castle Square. The second phase commenced with the demolition of the existing shopping centre site in October 2020 and construction on site is now taking place, targeted to complete in 2026.
St Michael’s is an exciting new landmark development at the heart of Manchester’s city centre that will set a new standard in quality and experience. With 186,000sq ft of sustainable human-centred workspace, a five-star international hotel, world-class dining and a vibrant public square, St Michael’s will capture the pioneering spirit of our remarkable city. Whilst the first phase is opening in stages, the second phase of the scheme’s evolution will launch in 2027 and bring the new five-star hotel, complete with ultra-luxe spa, dining and leisure facilities – plus an exciting option to call St Michael’s home. The St Michael’s project is the shared dream of Relentless Developments, KKR and Salboy. Together, they will deliver a thriving business district for Manchester, offering the best office space in a sustainable building, that will support the health and wellbeing of its occupiers both now and into the future.
Real estate investment firm Tristan Capital Partners has announced the availability of 12 commercial units on Sicilian Avenue, an iconic, Grade-II listed pedestrianised street found in the heart of Bloomsbury, 90 seconds from Holborn station. The units vary in size, from 485sq ft to 2,357sq ft, for a mix of food and beverage and retail occupiers. The first six venues are scheduled to open in summer 2025, providing a much needed high quality dining experience for Holborn’s 70,000 daily visitors. Sicilian Avenue has undergone a complete restoration to become the social heart of the Bloomsbury Quarter reforming the historical, pedestrian avenue into Bloomsbury’s most sought-after shopping and dining destination. The development is part of a larger mixed-use scheme which also includes 70,000sq ft of modern office space above the commercial units, which is being delivered by development manager Alchemy Asset Management and main contractor StructureTone.
Developer Cadogan have announced the first retail tenants at The Gaumont, a landmark £235M development and the creation of its ‘creative quarter’. The new retail signings are independent businesses New Forms, BookBar and Art Play, bringing an exciting blend of art, music and literature to the King’s Road, enhancing the area’s cultural vibrancy and continued legacy as a hub for creative innovation. All are set to open in late spring 2025. This marks the first phase of openings for The Gaumont, a 220,000sq ft mixed-use building, delivering Cadogan’s long-term vision to create a new commercial and cultural anchor for the King’s Road. It features flagship retail, a revitalised independent cinema, creative and office spaces, hospitality venues including a rooftop bar with panoramic views and pub theatre and a significant public art installation by internationally acclaimed artist Shezad Dawood. A new destination is taking shape as part of this development, focused on its return elevation along Chelsea Manor Street.
Property company The Portman Estate and developer Derwent London have unveiled plans for the launch of Loxton Walk, the West End’s latest retail and leisure destination in the heart of Marylebone. With public space, sustainable design and a new retail offering, Loxton Walk will be an entirely new and carefully curated street for the area. Launching in 2025, Loxton Walk will deliver 28,500sq ft of new retail and leisure space across 17 ground floor units, accessible via four new avenues from George Street, Blandford Street, Gloucester Place and Baker Street. The project will comprise a central open-air courtyard designed to create a lively, vibrant new destination for residents, workers and visitors to Marylebone. Providing a unique opportunity for retailers and hospitality businesses, Loxton Walk includes a variety of spaces from kiosk retail units through to spaces for flagship restaurants. With adaptable units ranging from 300sq ft to 5,800sq ft, brands can also combine units to create anchor stores. Loxton Walk aims to appeal to and bring together a diverse mix of retail and hospitality businesses, from independent coffee shops and full-service restaurants to retailers spanning across wellness, lifestyle and amenity.
With its initial elements first opening in 2015 and with new part of the project due to open through 2026, the transformation of Riverside Sunderland is happening at a pace not seen in decades. Only a few years ago, the former Vaux site was undeveloped brownfield, having stood – unloved – since the closure of the brewery at the turn of the new millennium. Now, the 32ha site is undergoing change that is creating a dynamic, carbon-neutral urban quarter – a flagship for a city that is brimming with ambition. Riverside Sunderland is plugged into the pulse of city centre life. From independent stores selling everything from high-end designer clothing to luxury cakes and sweet treats to high-street brands like Flannels and H&M, the city centre has a rich retail scene which is attracting more and more traders. In addition, new leisure and cultural venues are taking shape, enhancing the offer for people visiting Riverside Sunderland. The scheme is being developed by Sunderland City Council and their partner Igloo Regeneration.
An ambitious centrepiece for Huddersfield and the whole of Kirklees, the upcoming Our Cultural Heart project will breathe new life into the town centre. Bringing vibrancy into the area between Queensgate, Queen Street, King Street and Victoria Lane, this new hive of culture will deliver a surprising, inclusive and social destination for all. Due to launch in summer 2026 by developers Kirklees Council, the first phase will feature a food hall, library and public square whilst the second phase (due to open in 2029) will include a museum and art gallery. Future phases will include an urban park and the renovation of a two-storey building on Queen Street along with a new entertainment venue that will have capacity for up to 2,200 people.
The Elephant, a landmark building undergoing a transformative £132M redevelopment in the heart of the capital by developer Publica Properties, has officially reached its topping-out milestone. The iconic former House of Fraser building at 318 Oxford Street, London W1 is being reimagined as a vibrant mixed-use office and retail destination, featuring a marquee restaurant on the eighth floor with 360-degree views across the city. Set for completion in autumn 2026, The Elephant will offer 366,000sq ft of premium commercial space including a state-of-the-art gym, a 25m swimming pool and 42,600sq ft of retail units. The project has been designed to preserve and enhance the structure with upmost attention to adapting the existing building structure and minimising embodied carbon. The plans include the provision of new, attractive shopfronts, extensive refurbishment of the existing façade and the creation of highly flexible, open floorplates for varied uses. They are also incorporating a large-scale elephant sculpture crafted from recycled steel, symbolising the project’s commitment to sustainability and innovation in urban placemaking. On the interior, the existing sixth and seventh floors have been removed and replaced with three new floors. MGAC is providing project management, cost management and health + safety services for the project which is reflective of a wider shift in the industry to reduce embodied carbon through the strategic reuse of existing building materials.
Croydon council has endorsed Unibail-Rodamco-Westfield’s ‘masterplan’ for the regeneration of the boroughs town centre. The ‘masterplan’, endorsed by the local authorities planning committee intends to establish principles to transform the North End Quarter into a vibrant, mixed-use destination that brings together homes, shops, cultural venues and public spaces. It will make a major contribution to the creation of a dynamic, forward-looking town centre that reflects local ambitions and secures a bold future for the area. The North End Quarter masterplan will see the delivery of a more sustainable and better-connected town centre core through a network of public spaces, green areas and pedestrian friendly streets. Construction is not expected to begin until 2028.
Two stops from London Bridge and four stops from Waterloo, Canada Water is already one of London’s best-connected places. Its new chapter will include everything from flexible workspace and labs and a new high street and town square to 12 acres of new public realm and a new 3.5 acre park. Inspired by its rich heritage, Canada Water’s sustainable two million square feet of state-of-the-art work and lab spaces, one million square feet of world-class retail and cultural space, 3,000 new homes and green public spaces will make it one of London’s most exceptional places to work, live, relax and grow. The first phase of the Canada Water masterplan completes this year, delivering 300,000sq ft of workspace and 13,000sq ft of retail at Three Deal Porters and Dock Shed, a new leisure centre for Southwark Council and 186 new homes at The Founding. Under development by British Land in a joint venture with AustralianSuper, the project is a wide-ranging one and is not expected to be fully complete for the next 10-15 years.
The Glasgow-based Threesixty Architecture has replaced Foster + Partners on the redevelopment of Buchanan Galleries and will refresh the shopping centre on Buchanan Street. Landsec, the site owner, has appointed Threesixty Architecture to develop the 1990s structure. The building was originally designed by Jenkins & Marr Architects and the new designs are yet to be revealed. Threesixty are understood to be working on an approach which will reuse the existing structure instead of the plans Foster + Partners had in place that would have seen a new mixed-use neighbourhood created.
Developer Landsec has secured planning permission from Cardiff City Council to transform a former Debenhams unit into a dynamic 102,000sq ft city square. This investment underscores Landsec’s long-term commitment to retail, reaffirming confidence in the sector’s future and its ability to drive sustainable economic growth. The redevelopment, designed in collaboration with over 5,000 local residents, will respond to consumer demand for high-quality leisure experiences, green spaces and family-friendly environments. St David’s continues to be the destination of choice for leading retailers, with numerous brands choosing the centre for their debut in Wales. In late 2024, international fashion retailer Pull&Bear, British womenswear brand Sosandar and Danish homeware brand Sostrene Grene all opened their first Welsh stores at St David’s.
With the huge success of Rushmere Shopping Centre, which has benefitted from a £20M investment, a new access road is planned to make it easier for shoppers to visit the complex. The Craigavon centre is now Northern Ireland’s largest retail complex and welcomed a record number of shoppers last November and expects ten million visitors through the doors in 2025. This follows a multi-million-pound transformation and the addition of 13 new stores that completed in late 2024.
A multi-million-pound refurbishment of a Co Antrim shopping centre is to pave the way for the arrival of Northern Ireland’s newest Primark store. Fairhill Shopping Centre in Ballymena has announced an extensive internal revamp and branding project, which is says underscores its commitment to ‘enhancing the shopping experience for its customers’. The ambitious transformation is a result of almost £10M investment by the centre’s owners ahead of the opening of the new landmark Primark store ‘in the coming months’. Another addition has been that of Costa Coffee, which opened in March.
Hollywood Bowl Group is opening a second location in Northern Ireland as part of a £9M redevelopment of Co Down shopping development The Boulevard. Landlord and owner Lotus Property submitted a notice for full planning permission for a 23,000sq ft 21-lane bowling alley back in July. It will kick off a bid to transform the western part of the discount retail park outside Banbridge into a 60,000sq ft ‘food and entertainment quarter,’ Lotus Property said. In addition, marking a decade of culinary excellence, Salt Kitchen in Banbridge has doubled in size and moved to a new, larger space within The Boulevard shopping outlet mall, creating 15 new jobs.
Towards the end of last year, Blanchardstown Centre in Dublin, Republic of Ireland announced the opening of four new stores. A new flagship for The North Face has opened doors, along with new tenants Phase Eight, Hobbs London and Accessorize. The four new stores have between them created over 40 new jobs. The new The North Face store spans an impressive 2,500sq ft and features unique interior design elements such as timber walls, solid wood flooring and showcases new collections in menswear, womenswear, kidswear, footwear and accessories. The four new stores join a host of major retailers such as Calvin Klein, River Island, Zara, Flannels and Mango that are housed in Blanchardstown Centre.
Hammerson has announced that it has signed JD Sports and Space NK at Dundrum Town Centre, as it continues to attract high-profile brands, new concepts and market firsts. JD Sports will almost double its footprint at Dundrum, to over 22,000sq ft when it opens in spring this year, making it one of the biggest in the UK & Ireland. The leading trainer and sports fashion brand will meet the increasing demand for athleisure, which continues to be a top performing category across Hammerson’s city-centre assets and estates. The new store demonstrates the appeal of Dundrum Town Centre and is reflective of Hammerson’s wider strategy to attract new audiences with in-demand brands, social and entertainment offers. Space NK meanwhile, which is the UK’s biggest beauty only retailer, will open its second store in Ireland at Dundrum Town Centre, as the beauty retailer expands its footprint in the country following its inaugural site on Grafton Street.
