Almost ¾ of retail schemes under construction to be below 20,000 sqm

The first quarter of this year was marked by the limited activity of shopping centers. As a result, this market grew by only 30,000 sqm, and currently, the entire available space amounts to 12.07 million sqm, according to CBRE data. Another 280,000 sqm is under construction, of which 73 percent are smaller facilities, mainly retail parks. The remaining part of the newly created space consists of extensions of existing centers and facilities over 20,000 sqm. If the construction works are completed on time, the new retail space delivered to the market in 2021 will be higher than in the previous two years.

“Due to epidemic constraints, not many of the built facilities started operating in the first three months of the year. As a result, the market grew by only 30,000 sqm. Some of the openings have been postponed until the restrictions are lifted. Despite the difficult experience of trading in the pandemic, there's a lot of space under construction, mainly retail parks, which have proved their so-called covid resistance. The location near the place of residence, the often discounted purchase offer, and the lack of common areas responded to specific needs in the pandemic and strengthened the sense of security. As a result, retail parks have experienced declines in footfall to a lesser extent than large centers and are attractive to investors,” Magdalena Frątczak, head of the retail sector at CBRE, said.

The vast majority of newly built commercial facilities will be supplied to smaller cities, up to 100,000 residents.

(WBJ)