According to the latest report by CBRE, the leading global property adviser, 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, 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 sqm 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.
