Developer Ghelamco, until recently specializing mainly in the office and residential segments, has announced it will build three new shopping centers in and around the Polish capital.
The first one, located in Warsaw’s Wilanów district and called Plac Vogla, will offer some 50 stores on 11,000 sqm and a parking lot with 400 spaces. Ghelamco expects the building permit to be issued within the next two months. The developer wants to complete construction by mid-2014.
Plac Vogla in Warsaw's Wilanów district will offer some 50 stores on 11,000 sqm
Courtesy of Ghelamco
The second shopping center will be located in Piaseczno, 17 km south of the center of Warsaw. Named Pasaż Tukanów, it will offer some 30 stores on 7,000 sqm. The investor hopes to deliver the scheme in Q4 2014. The third center, located in Łomianki, 14 km north of Warsaw, is expected to house 60 stores on 11,500 sqm and is scheduled to be completed in Q1 2015.
Poland’s retail market has seen a number of projects completed recently. The total supply of new modern retail space totaled nearly 200,000 sqm in H1 2013, increasing the total floorspace to 11.2 million sqm by the end of June 2013. The largest shopping center to open in H1 was Europa Centralna in Gliwice, offering 67,000 sqm. Another wave of retail supply is expected to come out of the pipeline in H2, according to the latest report by Cushman & Wakefield.
Source: Cushman & Wakefield
Apart from shopping centers, Poland’s retail park segment is also experiencing rapid growth with several developers strongly active on the market. Discount stores continue to move ahead with their expansion strategies by establishing a foothold in shopping centers and in downtown locations.
“This year’s main wave of new supply – more than 80 percent – is expected in the second half of 2013 with the scheduled delivery of nearly 450,000 sqm,” said Piotr Kaszyński, partner at Cushman & Wakefield.
“The annual retail supply may, however, dwindle slightly in the next two years given the current pipeline. Due to the current demand level, the marketing period for new schemes has become much longer. Demand is driven primarily by large non-food retailers interested in prime locations and favorable lease conditions. Smaller chains are more cautious,” Mr Kaszyński added.
The report states that rents continue to vary depending on the location and scheme, with substantial differences between headline and effective rents. Prime shopping centers in Warsaw command the highest monthly rates at €75-85/sqm.
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