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News Release

Warsaw

Warsaw retail market grew by 64,000 sq m in 2015


JLL has summarized 2015 on Warsaw Agglomeration's[1] retail market.

The Warsaw Agglomeration is the biggest retail market in Poland, offering a total of ca. 1.65 million sq m of space in formats such as: shopping centres (over 1,14 million sq m), retail parks (265,000 sq m), retail warehouses (186,000 sq m) and outlet centres (56,000 sq m).

Anna Bartoszewicz-Wnuk, Head of Research and Consulting at JLL Poland, says: "In 2015, the Warsaw Agglomeration grew by 64,000 sq m of new retail space with shopping centres accounting for 45,900 sq m of this number. The biggest project commissioned for use was the extension of Wola Park."

The biggest retail projects completed in the Warsaw Agglomeration in 2015

ProjectFormatDeveloperSize (sq m)
Wola Park - extensionShopping centreIKEA Centres Poland17,600
MODO Domy ModyShopping centreDevin Investments16,000
Ferio WawerShopping centreRaiffeisen Evolution Project Development12,300
Royal WilanówRetail in office projectCapital Park6,900
Factory Ursus - extensionOutlet centreNeinver6,000
Plac VoglaRetail parkGhelamco Poland5,200

Source: JLL

"The Warsaw Agglomeration, with its average shopping centre density of 447 sq m per 1,000 residents, remains one of the least dense markets in Poland and lags behind other major metropolitan cities such as Wrocław, Poznań, Tri-City, Łódź and Kraków. This situation, however, is likely to change in the mid to long-term as approx. 120,000 sq m of retail space is now under construction. Shopping centres account for up to 106,700 sq m with Galeria Północna, located on Białołęka, the largest project under development at the moment", adds Anna Bartoszewicz-Wnuk.

Retail projects under construction in the Warsaw Agglomeration

ProjectFormat DeveloperSize (sq m)
Galeria PółnocnaShopping centreGTC64,000
Fabryka WołominShopping centreRockcastle Global Real Estate Group Limited, Acteeum Group23,500
Galeria LegionowoShopping centreJerzy Petz10,500
CEDETDepartment storeImmobel7,000
Hala KoszykiCatering/dining/servicesGriffin Group6,000
Galeria GrodovaShopping centreNAP Invest Alfa Sp. z o.o.5,200
Atrium Promenada extensionShopping centreAtrium European Real Estate Limited3,500

Source: JLL

Demand

"Warsaw remains the bridgehead for debuts and further expansions for numerous foreign brands, especially those looking for prestigious locations. In 2015, the Warsaw market saw the debuts of international fashion chains - Superdry, Kiabi and Courir, and cosmetics brands - Origins. Furthermore, the food and restaurant segments developed as well as Paul, Fuddruckers, Dairy Queen, Benihana, Dunkin' Donuts have also entered the market", comments Anna Wysocka, Head of Retail Agency at JLL.

Vacancy rate

The vacancy rate in modern shopping centres currently stands at 1.5%, which is a significantly lower result than the national average for cities above 200,000 residents (3.1%).

Rents

Monthly prime[2] rents per sq m in shopping centres stand at €110 – 130. Rents are between €9-10 in retail parks, and €80-90 / sq m / month for retail units located on high streets.

"The most important trends that we are observing on the retail market in the Warsaw Agglomeration include extensions and refurbishments of existing projects as well as the development of mixed-use schemes. Still, there is room for the traditional shopping centres, which is illustrated by the construction of Galeria Północna", summarizes Anna Wysocka.



 

[1] Warsaw Agglomeration includes the city of Warsaw and the following surrounding municipalities: Pruszków, Piastów, Raszyn, Nadarzyn, Brwinów, Michałowice, Konstancin Jeziorna, Lesznowola, Piaseczno, Błonie, Izabelin, Łomianki, Ożarów Mazowiecki, Stare Babice, Grodzisk Mazowiecki, Milanówek, Podkowa Leśna, Jabłonna, Legionowo, Nieporęt, Halinów, Sulejówek, Kobyłka, Marki, Radzymin, Wołomin, Ząbki, Zielonka, Józefów, Otwock and Wiązowna.

[2] Prime rents relate to a well located 100 sq m unit shop from the fashion and accessories category in leading retail assets in Warsaw