500,000 sqm of retail space in the pipeline, mainly in eastern Poland – JLL

500,000 sqm of retail space in the pipeline, mainly in eastern Poland - JLL

Some 550,000 sqm of retail space is currently under construction, 87 percent of which within 20 new shopping centers and 8 mall expansions, a recent JLL report said. Another 11 percent of retail space currently in the pipeline corresponds to retail parks and 2 percent to one outlet center under construction.

Small and medium-sized malls constitute 98 percent of all retail space under construction. Some of the biggest projects being built include Sukcesja in d (45,000 sqm), Galeria Warmiska in Olsztyn (41,500 sqm) and Tarasy Zamkowe in Lublin (38,000 sqm).

Most of the new stock will be delivered in eastern and north-eastern voivodships and in the dzkie voivodship, as well as in small cities with population below 100,000.

Polands retail map is developing increasingly evenly, with locations that were previously less active expanding their offer, said Anna Wysocka, head of retail agency at JLL.

In Q1 2014 three new shopping malls were completed, totaling 140,500 sqm: Atrium Felicity on Lublin, Galeria Amber in Kalisz and Galeria Siedlce in Siedlce. Altogether Polands shopping malls feature 8.6 million sqm of retail space.

Shopping mall saturation level has reached 224 sqm per 1,000 people, which is above European average of 191 sqm per 1,000 people.

Polish retail market also has 1.3 million sqm in retail parks, 1.87 million sqm in stand-alone schemes and 163,000 sqm within outlet centers.

The segment that is seeing the most activity is convenience, that is small schemes both shopping centers and retail parks with a balanced offer, mainly being built in smaller cities, with unsaturated and promising markets. This trend is supported by the fact that 42 percent of shopping malls and 87 percent of retail parks currently under construction are located in cities with population below 100,000, Wysocka added.

Vacancy stood at 3.2 percent at the end of 2013, 0.6 percentage point higher than a year earlier.

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500,000 sqm of retail space in the pipeline, mainly in eastern Poland - JLL