2018: A strong year for retail
Retail & leisure“Currently, there is around 196,000 sqm of leasable space in shopping centres under construction to be delivered in 2019. This is 40 pct less than in the previous year. This shows that the market for traditional formats is becoming increasingly saturated. Meanwhile the demands of Polish customers are undergoing major changes. As a consequence, developers and tenants are increasingly being drawn to mixed-use projects, such as the Monopolis complex under development in Łódź or Elektrownia Powiśle in Warsaw. In addition, as the market matures, shopping centres are expanding their range of services to include catering and entertainment as well, while at the same time, the proportion of space taken by grocery operators and DIY stores continues to decline,” says Anna Wysocka, the head of retail agency at JLL.
The largest projects to be opened this year will include the Galeria Młociny mall in Warsaw (72,000 sqm), Color Park in Nowy Targ (27,000 sqm) and Stara Ujeżdżalnia in Jarosław (26,000 sqm).
Over 2018, 29 international brands entered the Polish market, slightly up on 2017, which shows that Poland is still considered an attractive destination by retailers. The new brands included Tempur, Miniso, Tedi, Fit/One, Scotch & Soda, Huawei and Ramen Shop Menya Musashi.
“Last year saw the further development of omni-channel retailing. A number of new retail concepts entered the market, most often combining different distribution channels using advanced digital solutions, such as the global debut of the new Ikea store concept in the Blue City shopping centre in Warsaw. Mergers and acquisitions proved to be a growing trend, with DIY store Obi DIY taking on a number of locations that had previously been occupied by Praktiker and Carrefour taking on some of the locations vacated by supermarket chain Piotr i Paweł,” comments Joanna Tomczyk a research analyst at JLL.
Monthly prime shopping centre rents remain at their highest in Warsaw (up to EUR 130 per sqm). Monthly rents across regional markets ranged from EUR 42 to EUR 60 per sqm.
“According JLL’s estimates, the value of retail investment transactions concluded in Q4 2018 totalled around EUR 360 mln with the full-year result coming in at EUR 2.47 bln. This is an all-time record for the Polish retail investment market,” says Marzena Surmacz a financial analyst at JLL.
Prime shopping centre yields achievable for the best-in-class, dominant malls in Poland currently stand at 4.9 pct, while high street yields are app. 4 pct. Yields for prime retail parks stand at 6.8 pct.
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