It wasn’t long ago that the term “shopping centre” conjured up images of bustling high streets under one roof — anchor stores pulling in crowds, food courts full to the brim, and packed car parks on Saturdays. These were the ‘glory days’ of shopping centres, and a world that I was very much part of when I was a director at Land Securities managing a large shopping centre portfolio.

Fast forward to 2025, and the picture looks very different. Many shopping centres, especially in secondary and tertiary towns, are grappling with a harsh reality: declining footfall, struggling tenants, and questions over their long-term viability.

Yet paradoxically, for commercial property investors willing to look beneath the surface, this very disruption is creating real opportunity. Secondary shopping centres are cheap — sometimes very cheap. But does that discount represent untapped potential, or a value trap?

As always in commercial property, the answer is nuanced. There’s money to be made — but not without caution, creativity, and a clear understanding of what makes shopping centres viable today.

The Shopping Centre Reset: What’s Changed?
The headline figures make stark reading. Research from JLL (2024) shows that UK shopping centre capital values have fallen by over 35% since their 2016 peak. Secondary centres — those smaller, regional malls without a strong tourist or commuter base — have been hit hardest. The Savills 2024 Retail Outlook report noted that some UK shopping centres were changing hands for as little as 10% of their development costs.

There are several reasons why:
◆ Online Shopping: E-commerce continues to grow. Even post-Covid, many consumers never returned fully to physical retail.
◆ Experiential Shift: Shoppers now want more than just products. They’re seeking experiences, leisure, dining, entertainment — things you can’t replicate online.
◆ Over-Retailing: Many UK towns simply have too much retail space. According to Savills (2023), Britain still has 30% more retail floor space per capita than many European peers.
◆ Changing Demographics: Younger consumers are less brand-loyal and more experience-driven. Traditional department stores and “copy-paste” mall layouts no longer cut it.

And yet, despite the headwinds, some shopping centres are not just surviving but thriving. Why? Because they have adapted fast.