Locations suitable for building shopping centers are scarce on the Czech market, according to a recent report from JLL. Approximately 125,000 sqm of retail is expected to come on-line in 2014, a 35-percent decrease from last year’s volume. Since the beginning of the year, some 60,000 sqm of new retail space was completed. JLL is expecting an additional 25,000 sqm of new shopping center space and 40,000 sqm of retail park space to be delivered this year.
The biggest completions in the first half of 2014 include Dandreet’s Galerie Teplice (22,000 sqm), Centrum Pivovar in Děčín (17,500 sqm) and OC Lužiny in Prague (16,000 sqm). In addition to these completions, CTP Retail Park Brno (35,000 sqm), Galerie Frýdek-Místek (14,800 sqm) by TK Development and CPI’s Quadrio (8,500 sqm) are scheduled for completion later this year. The Cross between Na Příkopě and Wenceslas Square is currently being planned.
“The steady inflow of new brands have enabled leading shopping centers in Prague to refresh and upgrade their tenant mixes and secure newcomers, such as La Martina, Superdry and Kiehl’s Since 1851, to mention a few. However, we have also had a few leavers in the last 12 months, such as Charles Voegele, KappAhl, Jackpot Cottonfield, I-blues, Tie Rack and Mixer,” says Sylvie Samadi, head of JLL’s retail agency. Prime shopping center rents in Prague remain flat at €95 sqm/month, while retailers leasing high-street units pay around €180 sqm/month. JLL is predicting rents will increase due to undersupply and strong demand.
