After the busy end of 2016, Q1 2017 was rather quiet in terms of new completions of retail projects. The market grew by only a mere 36,800 sqm, including two extensions of existing projects and two developments of stand-alone retail warehouses, JLL said in its report.
In Q1, total retail stock in Poland stood at 13.4 million sqm. Shopping centres accounted for 9.5 million sqm, while retail parks, warehouses and outlet centres accounted for another 9.5 million sqm combined. In the first three months of 2017, the market gained only 36,800 sqm. According to JLL, the pace will pick up in the rest of the year, as 511,000 of retail sqm is in the pipeline, including 388,000 sqm of shopping centers.
The projects completed in Q1 included of Auchan Hetmańska in Białystok (5,800 sqm) and Galeria Wnętrz City Meble in Gdańsk (6,000 sqm) extensions, as well as the delivery of Leroy Merlin in Bełchatów and Agata Meble in Rzeszów.
“In Q1 2017 the total transacted volume in Poland’s retail sector totalled approximately €135 million and was 5 percent higher than the figure for 2016. The two major transactions were: the sale of the Ogrody shopping centre in Elbląg by CBRE Global Investors to CPI Property Group – as part of a portfolio transaction comprising 11 shopping centres in CEE, as well as the sale of Suwałki Plaza by Plaza Centers to an undisclosed Hungarian fund,” said Agnieszka Kołat, National Director, Retail Investment CEE, JLL.