The retail park format was gaining ground before the pandemic and continues to expand despite it. Over the past 20 years, their share in the entire pool of shopping facilities in the country has increased from 6 percent to 15 percent and now they occupy approximately 1.97 million sqm, according to CBRE data. Retail parks are still popular among investors, confirming their strong position in times of a pandemic. This is favored by their locality, the concentration of stores providing basic needs in one place, and a smaller number of customer contact points than in large centers. According to CBRE experts, the current trends indicate that by 2030 retail parks may constitute 28 percent of all shopping space in Poland.
“In recent years, we have observed an increase in the importance of retail parks as an investment product. The number of trades gradually increased, and some investors began to specialize exclusively in this format. The Covid-19 pandemic has strengthened the position of retail parks. Investors' interest in this format, especially in facilities with a grocery operator, has grown stronger. We expect the trend to continue in the coming years. Capitalization rates for well-commercialized retail parks usually range from about 8 percent to slightly above 9 percent. In large urban centers, they may be below 8 percent.” Piotr Karpiński, head of the property management department at CBRE, said.
The total retail space in Poland currently amounts to nearly 12.8 million sqm. Shopping centers account for 83 percent of the entire pool. Retail parks are in second place, with a 15 percent share and an occupied space of 1.97 million sqm. The podium is closed by outlets, which currently account for 2 percent of the total retail space.
The vast majority of the existing retail parks have been built in the last 10 years (approx. 1.43 million sqm), but only in 2020, this market increased by over 200,000 sqm.