A total of 300,000 sqm of retail space will become available in Poland in Q4, in seven new complexes and five expanded ones, according to a new report by Jones Lang LaSalle. Over half of the new retail space supply will be available within three large complexes in major cities: Riviera in Gdynia, Poznań City Centre in Poznań and Auchan Bronowice in Kraków.
Only two retail centers in which new space will open up – Trzy Korony in Nowy S±cz and Brama Pomorza in Chojnice – are medium in size. The rest are smaller retail centers, including Stara Kablownia in Czechowice-Dziedzice, Dekada in Grójec and Galeria Olimp in Lublin.
The recently completed Plac Unii mixed-used project delivered 15,000 sqm
Courtesy of BBI Development
One of the projects scheduled for the fourth quarter of 2013, Warsaw’s mixed-use complex Plac Unii, developed by BBI Development and Liebrecht & Wood, was launched in early October and offers 15,500 sqm of retail space and 41,300 sqm of office space.
In Q3, 2013, the market of retail space increased by barely 53,000 sqm, increasing the total supply of modern retail space in Poland at the end of September to 11.4 million sqm. Some 8.2 million sqm, or close to 72 percent of the total, can be found in shopping centers. The rest is in retail parks, individual stores and outlet centers.
According to the report, at the end of 2013, developers will have added a total of 485,000 sqm of new retail space. There are still some 800,000 sqm of retail space under construction, set to be delivered within the next two years, half of which will come in medium-sized projects. The new space will be evenly distributed between major cities, as well as small and medium-sized ones.
At the end of H1 2013 the vacancy rate stood at 4 percent in cities with populations above 200,000. The highest vacancy rates were recorded in Poznań, Wrocław, Radom and Toruń, with the lowest in Warsaw, Szczecin and Katowice.
“Unsurprisingly, prime assets located in the main metropolitan areas attract most retailer demand. Landlords of centers perceived as secondary by market stakeholders, or those located in very competitive markets, are facing downward pressures on rents and high expectations from occupiers with regard to fit-out contributions,” said Agnieszka Tarajko-B±k, a senior research analyst at Jones Lang LaSalle.
Deals closed and closing
The volume of retail transactions in the first three quarters closed at €773 million, with the biggest ones being Silesia City Center shopping mall in Katowice, Silesia, acquired by Allianz for some €412 million and Galeria Dominikańska, in Wrocław, purchased by Atrium European Real Estate for €151.7 million.
JLL estimates the total value of transactions in the retail sector will exceed zł.1.5 billion by the end of 2013, a level similar to than recorded in 2011 and higher than the volumes seen in 2010 and 2012. Major deals still at preliminary stages include the acquisition of Galeria Kazimierz in Kraków by Invesco for €180 million, the Purchase of a portfolio of retail properties in Kraków, Wrocław, Szczecin and several cities in Silesia by Tristan Capital Partners for E174.5 million, and the acquisition of the Wola Park shopping center in Warsaw by Inter IKEA.
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