Retail developers opt for small towns and mixed-use

In 2020, nearly 260,000 sqm GLA of space in shopping centers, was commissioned for use. which is similar to 2019. In 2021, we can expect another 200,000-250,000 sqm GLA – forecasts the consulting company Colliers.

The local lifestyle, forced by the pandemic, observed last year, and as a result, more frequent use of service, commercial, and catering outlets in the vicinity of the place of residence have had and will have a significant impact on investors' decisions. Retail parks and smaller shopping centers with a daily shopping profile with an area not exceeding 25,000 sqm GLA are gaining popularity. The share of the former in last year's supply on the retail market amounted to 63.5 percent, and currently, they constitute 52 percent of projects under construction. In 2020, i.a. Vendo parks in Jawor, Częstochowa, Łuków and Władysławowo, Karuzela in Lubliniec and Ełk, Saller in Chojnice and Stop Shop in Siedlce. Most of the new retail space, as much as 54 percent, was built in small towns.

In 2020, 21 new facilities were built and four existing ones were expanded. Thus, the total supply of space in Polish shopping centers increased to 12.2 million sqm GLA, most of which is located in the Warsaw agglomeration (1.7 million sqm GLA) and the Górnośląsko-Zagłębiowska Metropolis (1.2 million sqm GLA). The largest investments completed last year include Park Handlowy Kujawia in Włocławek, Galeria Wiślanka in Żory, and Dekada Nysa.

One of the trends that will gain in importance in the coming years are investments in mixed-use facilities. In 2020, among others, Powiśle Power Plant, the next stage of Browary Warszawskie and Monopolis in Łódź. Further investments of this type are under construction, including The Norblin Factory in Warsaw, Fuzja in Łódź, or the Young City in Gdańsk.

“Commercial developers, so far focusing on the retail sector, will be more and more willing to diversify their portfolio by creating multi-functional projects covering mainly various types of housing investments. The creation of such places in conjunction with the development of residential districts creates new opportunities for the development of commercial brands that were previously present in shopping centers. We can therefore expect an increase in interest in well-located street premises in housing estates and downtown multifunctional projects,” Marta Machus-Burek, senior partner and director of the Retail Agency at Colliers, said.

(WBJ)