Regional cities modernising too
Retail & leisureLast year, a total of 65,600 sqm of new retail space was delivered to these markets. The study looked at the cities of Białystok, Bielsko-Biała, Bydgoszcz, Częstochowa, Kielce, Lublin, Olsztyn, Radom, Rzeszów and Toruń. The report states that the trend to modernise existing centres is still clearly visible with work being carried out on Auchan Hetmańska in Białystok, which is gaining a further 6,000 sqm, a chillout zone, co-working space, a multimedia zone and a playground and with modernisation work completed on Galeria Strefa in Bielsko-Biała, Jurajska Gallery in Częstochowa and Plaza Rzeszów. “In 2017, investors focused mainly on expanding and modernising existing shopping centres to adapt them to the changing expectations of customers. Regional cities are following the trends already present in the main cities: increasing recreational and sporting areas, expanding the food & beverage offer and introducing improving the comfort of shopping. At the end of 2017 and in early 2018 shopping centres with a total area of app. 33,000 sqm were under construction in regional cities,” says Katarzyna Michnikowska, the director of consulting and market research at Colliers International. In regional shopping centres, just as in the larger cities, temporary and permanent entertainment and leisure concepts are beginning to appear. Last year, a go-carting track (1,400 sqm) was opened at Outlet Center Białystok and a temporary Lego exhibition (1,500 sqm) was organised at the Outlet Center Lublin. At present there are on average 33,000 potential customers per shopping centre in regional cities (with the most being in Częstochowa and Toruń, and the least in Rzeszów and Lublin). Lublin has the largest number of shopping centres (14), while Bydgoszcz comes second (10). Białystok and Rzeszów with nine centres each take joint third position. The smallest market is currently Olsztyn with 121,000 sqm in five centres. “Changes in the retail market in regional cities mean that there is greater flexibility when signing lease agreements. Tenants of strategic importance for a centre are offered incentive packages including: subsidised fit-out costs, lease rates based exclusively on turnover, shorter rental periods, and temporary reductions or freezes of the operating cost charges. Landlords also are increasingly adapting contracts to the strength of the tenant on the market. New legislation introduced in Poland last year, including the gradual implementation of a Sunday trading ban, might bring changes in lease terms in the near future. In 2017, there was a slight downward trend in monthly rents, with the lowest in Radom and Częstochowa, where they fluctuate between EUR 24 and EUR 26 per sqm. Bydgoszcz is the most expensive of the regional cities in the study at EUR 28 to EUR 30 per sqm for a fashion store in the best shopping centre.
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