Polish commercial real estate had a good 2013 and the prospects for retail property and warehouses in particular look even better for the next 12 months, according to CBRE.
Polish commercial real estate had a good 2013 and the prospects for retail property and warehouses in particular look even better for the next 12 months, according to CBRE.
The property adviser points to rising consumer spending, steady occupier demand and a group of international retail chains poised to enter the Polish market to support its forecast.
A number of retail schemes are currently under construction in Warsaw and large regional cities around the country, including Royal Wilanow (7,000 m2., delivery planned for 2014), Atrium Felicity and IKEA in Lublin or Sukcesja in Lodz.
CBRE said that extensions of existing centres are a significant trend with a number of first and second generation schemes undergoing modernisation which will result in a revamp and additions of an entertainment component. This is a way of meeting changing tastes among consumers, as highlighted in CBRE’s How We Shop survey which found that shoppers expect a complete 'shopping experience' from a visit to a modern retail centre. Besides buying fashion, consumer electronics and groceries, shoppers also want to be able to dine, relax or see a movie.
In 2013 the Polish industrial and warehouse market performed well, but demand fell slightly in comparison to 2012. There was also a number of completions, which brought the total stock of modern warehouse space to 7.62 million m2. Developers are starting to reconsider speculative supply, however only linked to critical size pre-lease contracts.
Wroclaw and Poznan are expected to witness a strong increase in the level of development activity in the near future in connection with Amazon’s announcement that it will create three new logistic centres and owing to the cities’ convenient location close to Western European markets where an economic recovery is underway.
