JLL has summarised 2015 on the Warsaw agglomeration's retail market. The Warsaw agglomeration is the biggest retail market in Poland, offering a total of approximately 1.65 million m² of space in formats such as: shopping centres (over 1,14 million m²), retail parks (265,000m²), retail warehouses (186,000m²) and outlet centres (56,000m²).
Anna Bartoszewicz-Wnuk, head of research and consulting at JLL Poland, said: “In 2015, the Warsaw Agglomeration grew by 64,000m² of new retail space with shopping centres accounting for 45,900m² of this number. The biggest project commissioned for use was the extension of Wola Park.
“The Warsaw agglomeration, with its average shopping centre density of 447m² per 1,000 residents, remains one of the least dense markets in Poland and lags behind other major metropolitan cities such as Wrocław, Poznań, Tri-City, Łódź and Kraków. This situation, however, is likely to change in the mid to long-term as approx. 120,000m² of retail space is now under construction. Shopping centres account for up to 106,700m² with Galeria Północna, located on Białołęka, the largest project under development at the moment.”
Demand
Anna Wysocka, head of retail agency at JLL, commented: “Warsaw remains the bridgehead for debuts and further expansions for numerous foreign brands, especially those looking for prestigious locations. In 2015, the Warsaw market saw the debuts of international fashion chains - Superdry, Kiabi and Courir, and cosmetics brands - Origins. Furthermore, the food and restaurant segments developed as well as Paul, Fuddruckers, Dairy Queen, Benihana, Dunkin’ Donuts have also entered the market.”
Vacancy rate
The vacancy rate in modern shopping centres currently stands at 1.5%, which is a significantly lower result than the national average for cities above 200,000 residents (3.1%).
Rents
Monthly prime rents per square metre in shopping centres stand at €110 to €130. Rents are between €9-10 in retail parks, and €80-90/m²/month for retail units located on high streets.
Anna Wysocka commented further: “The most important trends that we are observing on the retail market in the Warsaw Agglomeration include extensions and refurbishments of existing projects as well as the development of mixed-use schemes. Still, there is room for the traditional shopping centres, which is illustrated by the construction of Galeria Północna.”
