Retail parks in Poland – record high number of new completions
EXTRACT FROM: Retail parks and convenience centres investment market report
Prepared by Avison Young and Polish Council of Shopping Centres (PRCH), with contributions from leading legal and financial experts – Squire Patton Boggs and Sustainable Investment Forum Poland (POLSIF).
Author: Paulina Brzeszkiewicz-Kuczyńska, Research and Data Manager at Avison Young
15/10/2024
The retail park market in Poland started along with the political changes of the 1990s, with the first properties developed in the late 1990s. Early pioneers established retail parks on the outskirts of major metropolitan areas, creating the first retail destinations, often complemented by other nearby commercial developments.
Over the following two decades, the development of retail parks progressed at varying paces. At the end of 2019 the Polish market accommodated 1.5 million sqm in retail parks exceeding 5,000 sqm of GLA. However, the COVID-19 pandemic marked a turning point, as retail parks gained strength due to their structure, which allowed them to remain largely unaffected by restrictions and closures. Unlike traditional shopping centres, retail parks feature premises with direct access to parking lots and lack common indoor areas, making them more adaptable to health guidelines.
After this breakthrough, the shift in consumer shopping habits and investor sentiment triggered a significant boom in retail park development. Only between 2020 and 2023, the supply increased by an additional 1.1 million sqm of GLA, with another 180,000 sqm added in the H1 2024. The H2 2024 pipeline is projected to add another 300,000 sqm. Looking ahead, investors have announced plans to deliver around 500,000 sqm in 2025, which would mark a record high for new completions in Poland’s retail park market.
Since 2020, the development of retail parks in Poland has surged, with no signs of slowing down. However, as Poland’s retail market is mature, over 70% of new projects completed since 2020 have ranged between 5,000 and 10,000 sqm of GLA, with investors focusing primarily on smaller cities unsaturated with modern retail offerings. Among more than 100 of those smaller parks, 68 were delivered in cities with populations under 50,000. Larger retail parks, ranging from 10,000 to 20,000 sqm, accounted for 32% of the new stock, while only 8 projects, sized between 20,000 and 40,000 sqm, represented 15% of the new supply.
Currently, Poland has 260 large retail parks (with over 5,000 sqm of GLA) totalling 2.9 million sqm. The rapid growth of this format has doubled its share in modern retail space in Poland to 18%, from just 9% in 2010. Additionally, more than 80% of the modern retail space currently under construction in Poland is being developed in the retail park format.
In recent years, most retail parks were smaller, around 5,000 sqm, either complementing existing retail landscapes or introducing modern retail schemes to smaller towns for the first time. Now, a shift toward larger developments is becoming apparent, with 35 larger retail parks (GLA > 5,000 sqm) either under construction or undergoing expansion, including 13 projects that exceed 10,000 sqm.
The largest retail park currently under construction is Osada in Żyrardów, which will offer 33,000 sqm of GLA. Retail parks with more than 10,000 sqm of GLA now account for 57% of the new retail space being developed in this category, highlighting a growing trend toward larger-scale retail park projects in Poland.
Larger-format retail parks have emerged as strong alternatives to traditional regional shopping centres by providing tenants with lower operating costs and enabling them to expand into markets that were previously unattainable. Their efficiency and consumer appeal have attracted operators typically focused on conventional malls, who are now increasingly venturing into retail parks. This trend includes a diverse range of tenants, particularly in the economy fashion sector, as well as gastronomy, service providers such as gyms and play areas, and even childcare facilities, broadening the appeal and functionality of these retail spaces.
Dynamic increase in the supply of small retail parks and everyday convenience shopping centres, ranging from 2,000 to 5,000 sqm, continues to be observed, highlighting the growing appeal of this format within the Polish market. The total stock of such facilities in Poland is estimated at 1.1 million sqm. This rapid expansion, particularly in towns with a population of 10,000 to 50,000 residents, is prompting retail chains – previously absent in smaller schemes – to consider entering these locations. In larger urban areas, the growth of the convenience format aligns with the 15-minute city concept, which aims to ensure access to essential services and shops within close proximity.
In recent years, the interest of investors, developers, and tenants in retail parks and smaller convenience centres designed for quick, everyday shopping has remained strong. The substantial development of new convenience facilities and retail parks is attracting core investors seeking stable, longterm investment opportunities with extended WAULT periods.
