Retail space in Poland expanded by 216,000 sq m in H1 this year, according to JLL data. Total retail space under construction stood at 410,000 sq m at the end of June and JLL estimates that new supply delivered by the end of the year across all formats will exceed the 2022 figure.
Macro trends remained unchanged and new supply was dominated by retail parks. This segment now comprises almost 2.7 million sqm of existing stock, representing around 16% of total retail space in Poland. These results underline the dynamism of the retail park sector, and selected developments completed in the first half of the year include: Retail Park in Kłodzko (17 000 sq m), Aripark Bytów (12 000 sq m), Park Glinianka in Łubna (10 200 sq m), Saller Dzierżoniów (8100 sq m), N-Park Piotrków Trybunalski (7700 sq m), Vendo Park Zambrów (6600 sq m). Moreover, within the segment, more than 250,000 sq m were under construction at the end of June.
“New investments cover the full spectrum of the market, from small retail parks in regional cities to large complexes such as the Koszalin Power Center, Galeria Karuzela Biała Podlaska and Ozimska Park in Opole. On the other hand, we are also seeing some, but still limited, activity in relation to traditional shopping centres, especially in comparison to retail parks. Nevertheless, this format increased by 58,000 sqm in the first half of 2023 thanks to, among others, Galeria Bawełnianka in Bełchatów (23,000 sq m), which opened in April,” Retail Leasing manager Dagmara Filipiak said..
As economic indicators gradually recover and overall market sentiment improves, rents are returning to pre-pandemic levels.
“Rents in the best shopping centres in Warsaw (100 sqm, fashion) are now up to 130 euro/sqm/month. The average for other agglomerations ranges from 50 to 65 euro m2/month,” indicated Research & Consulting director Maciej Kotowski.
In H1 2023, the total value of retail property sales in Poland amounted to almost €200 million, which was only 26% of the value of sales in 2022 (€760 million).
“It should be noted, however, that the high volume of H1 2022 was mainly influenced by two transactions resulting from the creation of joint ventures by EPP, involving 20 shopping centres, two retail parks and three office buildings, with a total value of around €600 million. In H1 2023, the retail market recorded 12 transactions involving a total of 17 assets. This is a low level of investment activity compared to previous years, but nevertheless transactions worth more than €150 million closed in the current quarter (including Matarnia Retail Park in Gdansk acquired by Frey and a portfolio of 5 retail parks bought by Lords LB Asset Management). In addition, there are some larger transactions in progress, which are expected to close in the last quarter of this year, so we expect significantly better results in the second half of 2023,” Head of Retail Investment Agnieszka Kolat said.
Source: JLL and ISBnews
Photo: Galeria Bawełnianka, Bełchatów
