Poland’s retail market has been transformed in recent years but the trends have been exacerbated by Covid 19 this year.
In a joint report, Retail Parks and Convenience Centres in Poland, JLL and Trei Real Estate Poland said that during H1 2020, developers completed nearly 148,000 sq m of modern retail space in large scale projects with a GLA over 5,000 sq m.
Of this new supply, 67% was delivered in eight new retail parks and three extensions of existing schemes. There is almost 450,000 sq m under construction with initial completion dates set for 2020 and 2021. Retail parks account for nearly 26% of this space.
While the Covid-19 pandemic has slowed construction activity in Poland, it has boosted the market for smaller convenience-based assets.
The firms point out that about 130,000 sq m (GLA) was delivered to the market in regional and traditional retail parks and convenience centres bringing the supply of modern retail space in Poland’s this category to 2.6 million sq m.
Approximately 171,000 sq m of retail park and convenience centre space is under construction and accounts for 34% of all retail space under construction. While 18 of the 33 schemes under construction are small convenience centres, only two regional retail parks are being developed, while 40% of new schemes are being built in small towns with less than 50,000 inhabitants.