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New retail parks and shopping centers emerge despite COVID-19 pandemic: report

Despite the COVID-19 pandemic, the number of new retail parks and daily shopping centers is growing, according to a report by the consulting company JLL published on Monday. The company reports that the value of investment transactions in the commercial real estate market in the first quarter of the current year amounted to EUR 190 mln.

From the summary of the commercial real estate market in Poland at the end of the first quarter of 2021, JLL shows that nearly 93,000 sqm of retail space came into use between January and March this year, which is a result comparable to last year’s.

The new supply structure covered only two large-format formats: free-standing stores (55 percent) and retail parks (31 percent). 14 percent amounted to everyday shopping centers. Almost 490,000 sqm of retail space in all formats is still under construction.

According to Joanna Tomczyk, a market analyst at JLL, in terms of lease space, retail parks will dominate this year, accounting for 36 percent and large-format free-standing stores with 27 percent share. 18-19 percent each will be allocated to new shopping centers and everyday shopping centers.

The company said that despite the turbulence on the retail market, which had an obvious impact on the expansion plans of most brands, three new players decided to open the first stores in Poland. There is a gradual development of the so-called hard discount retailers. Other food operators and tenants from the value retailers category are also continuing to expand, we read.

In the opinion of Anna Wysocka, director of the Retail Leasing Department at JLL, flexible contract structures happen more and more frequently in the rental policy due to market conditions and challenges for both operators and owners of commercial facilities.

“This is conducive to the development of the pop-up format. Temporary stores are an attractive proposition for developing brands, an option to sell surplus goods, but also a way to replenish vacant spaces in commercial facilities,” she indicated. She added that despite the pandemic, rent prices in retail parks and shopping centers remained stable.

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