- Cushman & Wakefield consulting agency summarized the situation in the commercial real estate sector in Poland. In the second quarter of this year, eight new commercial facilities entered the market, and approximately 400,000 sq m are still under construction. surface.
- Good results on the supply side are accompanied by unwavering interest from new brands, as well as good retail sales results,
In the second quarter of 2024, developers completed approximately 124,000 sq m. modern retail space, which included eight new investments, three extensions of existing facilities and two reconstructions.
An intense time for the Polish retail real estate sector
– The period between April and June is an extremely intense time for the Polish commercial real estate sector. In the second quarter, the market was enriched with retail parks opened in Jastrzębie-Zdrowie, Olsztyn, Świebodzin, Tychy, Zawiercie and Zgorzelec. Additionally, Galeria Starówka in Leszno and Castorama in Biała Podlaska started their operations. Additionally, during this time the expansion of the Decade in Grójec and the Nowa Górna park in Łódź was completed. In turn, three buildings of the former Tesco store were rebuilt and replaced by two retail parks and Leroy Merlin in Poznań. As a result, the total modern retail space in Poland already reaches 16.4 million sq m, and by the end of this year the market will probably expand by another approx. 250,000 sq m. – comments Ewelina Staruch, Senior Analyst, Cushman & Wakefield.
9 retail parks are being expanded
According to Cushman & Wakefield data, approximately 400,000 sq m were under construction at the end of June. area that will be put into use in 2024-2026. Of this, 300,000 sq m area under construction will translate into 29 new facilities, and the remaining 100,000 sq m. will cover the expansion and reconstruction of existing facilities.
Currently, nine commercial buildings are being expanded, including: the Designer Outlet Kraków facility, the Brama Pomorza park in Chojnice, or the Hosso Gallery in Police. The largest amount of leasable space currently under construction will be provided by Nowa Głosja in Łódź (35,000 sq m), the Silwana retail park in Gorzów Wielkopolski (26,000 sq m) and BIG Ostróda (25,000 sq m).
Three new brands have entered Poland
In the second quarter of the year, the Polish retail market welcomed three new brands, and all openings took place in Warsaw. The Luca bakery from Romania made its debut and chose the Polna Corner building as its first location. Moreover, a new craft bar Veselka from Ukraine appeared in the capital, making its debut in Browary Warszawskie, and the first Answear.com stationary store was opened in the Norblin Factory.
– The dynamics of retail sales in the second quarter of 2024 was positive and, according to the latest data published by the Central Statistical Office, it amounted to 4.1% y/y in April and 5.0% y/y in May. For comparison, the second quarter of the previous year recorded high declines reaching -7.3% y/y in April and -6.8% y/y in May. This positive trend will certainly not escape the attention of consumer brands and may encourage them to make more bold plans to expand to new locations on the Polish retail map – comments Ewelina Staruch, Cushman & Wakefield.
Examining retail sales at constant prices in May 2024, it can be seen that the highest increases compared to May of the previous year occurred in the category of Motor vehicles, motorcycles and their parts (+23.8%) and the Other group (23.5%). Pharmaceuticals, cosmetics and orthopedic equipment achieved positive dynamics of 10.2% y/y. The category recording high declines in 2023 was Press and Books, but in 2024 retail sales will increase (in May, the increase was +1.5% y/y). Annual declines occurred in the categories of Textiles, clothing and footwear (-13.5% y/y), Furniture, consumer electronics and household appliances (-8.4% y/y) and Food, beverages and tobacco products (-1.0% y/y).
– The consumer sentiment index is systematically improving, so we can expect that categories that are particularly important for shopping centers, i.e. primarily Textiles, clothing and footwear, will rebound in the coming months – comments Ewa Derlatka-Chilewicz, Head of Research, Cushman & Wakefield.
The share of e-commerce in retail sales in May was 8.6%. In the first half of the year, the level of e-commerce in individual months did not fall below 8%.
– Of the nine categories distinguished by the Central Statistical Office, the highest percentage of online sales stands out for Press, books (23.3%) and Textiles, clothing and footwear (23.0%). It is worth noting that the fashion sector successfully operates in an omnichannel formula and most clothing brands have already adapted their distribution channels to consumer behavior – adds Ewa Derlatka-Chilewicz.
