Developers are revising their strategies. The convenience centre and mixed-use projects segment is growing. 2019 could see 430,000 sqm of new retail space in Poland. JLL summarised conditions on Poland’s retail market at the end of Q1 2019.
“As the market for large retail schemes is gradually becoming saturated, developers are revising their business strategies. We are seeing a gradual solidification of new shopping centre stock, between large shopping & leisure centres and small convenience-based facilities. Smaller projects and retail parks have found a niche, which is reflected in new first quarter openings as well as the 2019 pipeline as a whole”, comments Anna Wysocka, Head of Retail Agency, JLL.
In Q1 slightly over 38,000 sqm was delivered to the market with Silesia Outlet in Gliwice (12,000 sqm of GLA) being the biggest project finished in the first three months of 2019. Among the smaller centres opened in Q1 were ATUT Ruczaj in Kraków (6 800 sqm) and Galeria Hosso in Drawsko Pomorskie (9 000 sqm of GLA).
“At the moment there is 14.3 million sqm of modern retail stock in Poland, with 10.1 million sqm offered by 422 shopping centres. The remaining retail space is found in retail parks and warehouses, as well as outlet centres, which account for 3.9 million sqm and approx. 300,000 sqm respectively. Although the first quarter – as is the tradition – didn’t see many openings, we can expect 430,000 sqm across all formats to be delivered to the market in 2019”, comments Joanna Tomczyk, Senior Research Analyst, JLL.
The major opening of 2019 will be Galeria Młociny shopping centre in Warsaw (78,500 sqm of GLA plus 6,200 sqm of office space), which is scheduled to open its doors in May.
Unsurprisingly, prime shopping centre rents remain at their highest in Warsaw (up to €130 / sqm / month). Rental levels across major cities remained relatively stable compared to the previous quarter, ranging from €42 / sqm / month to €60 / sqm / month. The average retail vacancy rate in shopping centres in the eight major metropolitan areas at the end of Q1 2019 was 3.5%.
