Diverse retail schemes appearing throughout Poland
According to the latest report by CBRE, healing the leading global property adviser, purchase two decades of dynamic development of the modern retail market in Poland have created a maturing landscape of diverse retail formats available in all major cities. A growing number of smaller towns are also aspiring for their first modern retail schemes. The only agglomeration where demand clearly exceeds supply is the capital city of Warsaw.
Karina Kreja, viagra Associate Director, Research and Consultancy at CBRE Poland:
?While Poland has so far been resilient to the prevailing European markets weakness, consumer demand is now slowing, with retail sales in Poland up by 6.9% year-on-year in July 2012, down from double-digit growth figures still being noted in early 2012. With tenants? demand clearly easing, and overall vacancy rates on the increase, the Polish shopping centre market is entering the challenging period of a tenants? market, when landlords will be forced to actively fight in order to attract new retailers.?
According to the Poland Retail Destinations report by CBRE, at the end of the first half of 2012, Poland had a total of 9.18 million sq m of retail space in over 400 schemes, including shopping centres, factory outlets and retail parks. That translates into 240 sq m of GLA per 1,000 residents on average. The modern retail network in Poland, also including quality space in city high streets, has become increasingly mature, and the development potential it now offers is rather selective. Shopping centre stock is steadily growing in Poland, with 650,000 sq m of new space delivered in 2011, 620,000 sqm expected for 2012, and slightly more in 2013. Apart from standard shopping centres, factory outlet projects are again high on the developers? agenda. Increasingly diversified retail formats also include small (under 5,000 sq m of GLA) local shopping centres and convenience shopping centres emerging in many locations, and at the opposite end ? the first fully modern vitkAc luxury department store opened at the end of 2011 in Warsaw.
Warsaw?s retail market remains demand driven
With 1.33 million sq m of modern retail space, the Warsaw retail market is the largest in Poland but shows clear symptoms of undersupply. A major stock surge is expected in 2013, however, when a total of 74,000 sq m of new GLA will be delivered in three new schemes: Auchan Łomianki, Factory Annopol outlet centre and Plac Unii, as well as one extension: Galeria Mokotów. Further development plans include new shopping centres in the districts of Białołęka and Wilanów. The Warsaw retail market remains demand driven, with vacancy rates currently at 1.6%. However, demand is strongest in the leading city centre schemes including Złote Tarasy, Galeria Mokotów and Arkadia, while in many schemes at the fringe of the city demand is easing, resulting in a decline of average rental levels. Warsaw is the most expensive location in Poland, with prime rents at about EUR 75 ? 90/sq m/month (for the best unit of 100 sq m, located in a prime shopping centre), while average rents are at EUR 30 ? 40/sq m/month.
Range of retail formats in Silesia is expanding
The Silesia agglomeration currently offers 951,000 sq m of modern retail stock, including the latest additions: Silesia City Center 19,000 sq m of GLA extension, nearly 8,000 sq m of GLA in M1 Zabrze new phase and 6,000 sq m GLA in Tarnowskie Góry Shopping Centre. 133,000 sq m of GLA is currently under construction, including two large schemes: Europa Centralna shopping centre in Gliwice with 67,000 sq m of GLA to be delivered by the end of this year, and Galeria Katowicka to be completed in the second half of 2013, with 50,500 sq m of GLA. According to CBRE experts, the completion of Galeria Katowicka in 2013 will mark a threshold on the Silesia retail market, but instead of competition with Silesia City Centre they expect coexistence between the two schemes similar to that of Złote Tarasy and Arkadia in Warsaw. Prime rental rates in the best shopping centres in Silesia are currently at EUR 45 ? 50/sq m/month.
Market niches persist in Kraków
Modern retail stock reached 495,200 sq m of GLA in Kraków, but with 240 sq m for every 1,000 inhabitants of the agglomeration, stock density remains lower than in other leading retail locations. With only 13 retail schemes, Kraków agglomeration remains one of the least provisioned among Poland?s key retail destinations. Most recent market additions include 39,000 sq m of GLA in Futura Park ? a hybrid concept encompassing both a retail park and a factory outlet. The current under construction pipeline consists of only one scheme, Auchan in Bronowice, that is to offer 35,000 sq m of GLA, while other schemes are at an early planning stage. Kraków?s old town remains the city?s major retail zone. Floriańska and Grodzka Streets, both pedestrianized and between the city?s main historical attractions are the main high streets, and, together with the Old Town Square, are a top choice for the leading international retailers. Prime rental rates in the best shopping centres in Kraków are at EUR 42 ? 49/sq m/month.
Gdynia sees strongest retail growth in Tri-City
With 27 schemes that cumulatively offer 617,400 sq m of GLA, the Tri-City retail market is the third, after Warsaw and Silesia, most developed in Poland. Latest additions include Szperk in Gdynia, as well as extensions of Morski Park Handlowy and Galeria Rumia. The existing retail space stock translates into a density of 490 sq m per 1,000 inhabitants of the agglomeration. However, considerable niches persist due to the relative homogeneity of the existing projects as well as the Tri-City topography that strongly limits their accessibility. Shopping centres are concentrated along the Grunwaldzka and Morska routes (Klif Gdynia, Galeria Bałtycka, Wzgórze), close to the housing estates of Przymorze (Galeria Przymorze, Alfa Centrum and Real), and along the Tri-City ring-road (Morski Park Handlowy, Auchan Gdańsk, Matarnia and Tesco Nowowilczyńska). Prime rental rates in the Tri-City remain at EUR 40 ? 45/sq m/month.
Wrocław has several prime schemes
Wrocław?s retail offer consists of 19 modern retail schemes providing 541,000 sq m of GLA. Recent additions include Sky Tower with 25,000 sq m of GLA of retail space, as well as Magnolia Park?s extension adding nearly 12,000 sq m of GLA. Compared to other cities in Poland, Wrocław?s retail offer is considerably more versatile, including various formats of shopping centres and well developed high street retailing. Unlike in many other regional markets, in Wrocław there are several strong shopping centres located at the fringe of city centre, including Galeria Dominikańska, Pasaż Grunwaldzki, as well as Renoma and Arkady Wrocławskie. Also Magnolia Park, located to the west of the city, is among Wrocław?s leading schemes with negligible vacancies. Despite relatively high shopping centre space density, reaching over 460 sq m per 1,000 inhabitants, Wrocław?s retail potential is still perceived as positive. Magnolia Park, already the largest retail scheme in Wrocław with 76,900 sq m of GLA is soon to see the construction of further 20,000 sqm of GLA, and Pasaż Grunwaldzki?s 12,000 sq m of GLA extension is to start by the end of 2012. Prime rental rates in Wrocław are currently at EUR 45 ? 50/sq m/month.
Poznań?s city centre offer to increase
Poznań?s overall shopping centre provision amounts to 536,000 sq m of GLA. Franowo remains the city?s largest scheme, however, it is Stary Browar that is considered the city?s architectural and cultural landmark, as well as one of Europe?s finest shopping centre concepts. New development has been scarce in recent years, with retail density already high at about 480 sq m per 1,000 inhabitants. However, 77,800 sq m of new GLA is now under construction in three new schemes: Poznań Główny City Centre, Galeria MM and Półwiejska 2. Rental rates for prime retail space in Poznań are at EUR 42 ? 50/sq m/month.
Łódz market is now in balance
Łódź retail offer consists of 14 shopping centres and two specialized projects that jointly offer 498,500 sq m of modern retail space, translating into a density of nearly 445 sq m per 1,000 inhabitants. No new stock additions were recorded in 2011 and the first half of 2012. Manufaktura, with over 110,000 sq m of GLA, is the largest shopping centre in Poland and among the best retail developments in Europe. Offering versatile leisure options, Manufaktura has established itself as a shopping and leisure hotspot of Łódź and its region. The only shopping centre now under construction in the Łódź region is Fabryka Centrum in Pabianice, with 6,100 sq m of GLA. Prime rental rates in Łódź are at EUR 38 ? 42/sq m/month, among the lowest in Poland?s large cities.
Szczecin?s city centre offer dominating the market
Current shopping centre stock in Szczecin amounts to 278,000 sq m of GLA, which translates into 380 sq m per 1,000 inhabitants. The most prominent centre is Kaskada, with 43,000 sqm of GLA, opened in 2011. The only major project currently under construction is the Outlet Park with 23,200 sq m of GLA, to be completed already in autumn 2012. Prime rents for a 100 sq m fashion unit in a high quality shopping centre, such as Galaxy and Kaskada, remain at EUR 40 ? 45 sq m/month.
Leave a Reply
€ Exchange Rates