JLL has summarised H1 2015 on Warsaw Agglomeration's retail rmarket.
Anna Bartoszewicz-Wnuk, Head of Research and Consulting at JLL Poland says: “The Warsaw Agglomeration represents the largest Polish retail market in terms of supply, accommodating over 1.11 million sq m of shopping centre space. In addition, the spending power of its inhabitants exceeds the national average by 68%. However, with respect to shopping centre density per 1,000 inhabitants, Warsaw with a ratio of 437 sq m is one of the least saturated markets in Poland and continues to lag behind other major agglomerations such as Wrocław, Poznań, Tri-City, Łódź, and Kraków. So it comes as no surprise that demand is high for new retail projects in the capital, especially in dynamically developing residential areas.”
According to JLL, the lowest shopping centre density within the Warsaw Agglomeration is experienced in Rembertów, Wawer, Wesoła, Wilanów, Bielany, Żoliborz and Białołęka. Developers, attracted by spending power, a growing number of residents and low vacancy rate, are launching several new retail projects. Around 108,000 sq m of retail space was under construction as of the end of H1 2015. The biggest investment within the agglomeration was Fabryka Wołomin, while in Warsaw itself it was the extension of Wola Park.
Additionally, GTC has recently obtained a building permit for Galeria Północna (64,000 sq m of GLA). The cornerstone for this flagship investment will be laid this September. Moreover, construction works on the historic CEDET department store have just begun. Therefore, space on Warsaw's retail market expects a major awakening in the next few years with various types of retail schemes entering the market.
“Major retail trends in Warsaw include refurbishments, redevelopments and extensions of existing retail assets, expanding high street retailing, the revitalization and transformation of historical sites into modern schemes, an increasing number of schemes combining office and retail functions as well as the development of railway stations areas,” comments Anna Wysocka, Head of Retail Agency at JLL Poland.
Demand
Available retail stock has been well -absorbed by the Warsaw market and is reflected in one of the lowest vacancy rates countrywide.
“Several new domestic and international brands have recently opened on the Warsaw market, including two French brands - Kiabi in Blue City and Courir in Galeria Mokotów, British Superdry in Złote Tarasy and Polish brand Scallini in Klif. Furthermore, popular US bakery firm Dunkin' Donuts has announced that it will open 44 cafes across Poland and has selected Warsaw as a bridgehead for its expansion into Poland,” says Anna Wysocka.
Rents
Monthly prime rents per sq m in the leading shopping centres are €95 - €110, in retail parks €8 - €9 EUR while on main high streets they are around €80 - €90.
