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Single-story marketplaces with shared management and parking dominate the retail market in Poland, and such facilities have become a prime target for investors, according to commercial real estate consultants.

Since the beginning of 2023, there has been an increase of 39 developments with a total area of 270,000 square meters, of which one in nine is a retail park, CBRE analyses showed.

Experts have no doubt that such a demand for parks will continue to grow. Developers are building such facilities primarily in smaller cities, said Piotr Karpinski of CBRE, adding that already more than a quarter of all retail space in Poland is located in cities with less than 100,000 inhabitants.

Facilities of up to 10,000 square meters are a particularly attractive capital investment for investors, due to lower construction costs and lower investment risk, said Jacek Wesołowski of Trei Real Estate Poland.

Retail parks are also being built on the outskirts of bigger cities, where new housing estates are being built, where in turn there is demand for a one-stop shopping destination, especially for groceries, he added.

Demand for shopping in smaller retail facilities translates into investment decisions by funds. According to JLL, the share of retail parks in the investment market has increased from less than 5 percent during the period of 2018 and 2019 to 54 percent in 2023.

Since 2018, except for 2022, the number of transactions above EUR 100 million in Poland has been declining, and it is the smaller deals that have strengthened the market, said Agnieszka Kolat, an expert at JLL.

The grocery and DIY segments are constantly performing well, so there is strong demand for retail parks with these sectors, she pointed out.

The supply of developable land in locations that do not require additional activities is running out, so there may be some changes, according to Sebastian Wisniewski, founder of Fortis Group.

Source: https://www.pb.pl/boom-na-parki-handlowe-szybko-sie-nie-skonczy-1202588