Close to 120,000 sq m of modern retail space was delivered to the Polish market in the third quarter of 2022, bringing Poland’s total retail stock to over 15.76 million sq m. The new supply comprised eight new projects, including five retail parks. Small cities with a population of below 100,000 reported the largest number of new project starts, reveals a report published by global real estate services firm Cushman & Wakefield.
Retail parks are a continuation of growth for many tenants from the convenience segment and the value-add sector, which is very popular with consumers. They also represent a growth opportunity for smaller cities through enhancing the retail offer or creating a destination for local communities. While the market of regular shopping centres has reached saturation, there is still room for retail parks on the Polish retail map. Retail parks are also an attractive investment product, with a growing number of transactions taking place in this sector,
comments Beata Kokeli, Partner, Head of Retail Agency Poland, Cushman & Wakefield.
Nearly half of retail space under construction will come on stream in the smallest cities
In the third quarter of 2022, average shopping centre vacancy rates edged down year-on-year in five out of the eight main conurbations. Szczecin’s vacancy rate remained virtually unchanged while Tricity and Poznań saw their vacancy rates rise compared to 2021. Shopping centres and retail parks continue to enjoy healthy occupancy levels despite post-covid problems and the worsening macroeconomic conditions. Retail parks outperform shopping centres in terms of vacancy rates: 3.2% versus 4.9%,
says Ewa Derlatka-Chilewicz, Associate Director, Consulting & Research, Cushman & Wakefield.
Offline or online shopping? Which is the winner?
The outlook for the Polish e-commerce market remains very positive. Recent research shows that the average annual share of e-commerce in Poland’s retail sales is hovering at around 14%, which is almost three times the pre-COVID-19 level and is expected to reach close to 20% in 2027. It is also worth noting that the Polish e-commerce market is expected to see its revenue climb to almost PLN 190 billion in five years’ time, which will represent an almost twofold increase over last year’s total. Paradoxically, the current complicated market situation is likely to drive the growth of online shopping further as it is associated with having a better grip on spending, making more rational choices and generating time and financial savings,
adds Damian Kołata, Partner, Head of Industrial & Logistics Agency Poland, Head of E-Commerce CEE.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in 400 offices and 60 countries. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit www.cushmanwakefield.com