Retail parks and convenience centres in Poland 2021
Are small formats the future of the retail market? According to JLL forecasts, a record 210,000 sqm GLA in retail parks will be delivered in 2021
Small retail formats keep the momentum. The whole of 2021 is expected to provide approximately 209,000 m² of GLA in retail parks, which means that 2021 would be historically the best year for retail parks in terms of space delivered to the market.
Interest in the format of retail parks and convenience centres has not lessened since we published the first edition of this report last year. More investors are looking to out-of-town smaller retail formats as shifting shopping habits bring those back into favour. With social distancing measures remaining in place and shoppers still cautious about malls, well-performing retail parks that are accessible by car are becoming increasingly popular shopping destinations. The continued growth of e-commerce is also supporting retail parks, as more consumers opt for services such as click-and-collect, which are easy to accommodate in retail park units. Consumers are also seeing the benefits. They continue to put convenience high up their lists of priorities. With retail parks offering a mix of retailers, consumers can pick up goods ordered online along with other everyday items more easily and quickly than visiting bigger shopping destinations. As such, retail parks are well-placed to take advantage of the increased momentum e-commerce has right now. Some of the semi-urban retail parks on the edge of major cities are in areas where demand for new homes is high. Mixing new residential with retail can be beneficial for both formats and create micro-catchment areas. Appetite among investors for retail parks is increasing. With their rents fluctuating less, retail parks have long been a stable product for institutions seeking defensive investments.
Although the Polish retail market is still struggling with the effects of the COVID-19 pandemic, forecasts here are favourable compared with the rest of Europe. According to Oxford Economics, retail sales in Poland are expected to grow by 4.9% per annum until 2023, which places Poland at the forefront of European countries. The whole of 2021 is expected to provide approximately 209,000 m² of GLA in retail parks, which means that 2021 would be historically the best year for retail parks in terms of space delivered to the market.