Record year for retail parks: 22 new openings in Poland, supply set to exceed 400,000 sqm in 2024

Poland’s retail park sector is on track for a record-breaking year, with 22 new retail parks launched in the first half of 2024, according to a report by JLL and Trei Real Estate Poland. By the end of June, these new developments added 365,300 square meters (GLA) to the market, and the total new retail park space is projected to surpass 400,000 sqm by the end of 2024.

The “Retail Parks and Convenience Centres in Poland” report highlights that the total retail space in Poland reached 17.3 million sqm by mid-2024, with retail parks accounting for 17% and convenience centres for 9%. From 2018 to mid-2024, these formats contributed to 59% of all new retail space, a trend expected to continue.

Retail parks are becoming particularly popular in smaller towns, with many new developments adhering to sustainable practices based on ESG strategies. The growing appeal of retail parks has been driven by their alignment with local market needs and their relatively low development costs.

“This year, the supply of retail park space will break records, surpassing 400,000 sqm GLA,” said JLL’s Research & Consultancy Director Maciej Kotowski. He noted that since 2020, more than 1.5 million sqm of retail park space has been delivered in Poland, with Trei Real Estate being one of the most active investors. The firm has developed approximately 123,000 sqm across 24 Vendo Park locations.

Retail parks are not just expanding in small towns but are also filling gaps in suburban areas of Poland’s largest cities. “In cities with populations of 50,000 or less, there is currently more retail park space (1.4 million sqm) than in cities with 100,000 to 500,000 residents (0.9 million sqm),” Kotowski said. “In large urban agglomerations, the rise of suburbanization has left gaps in the commercial offer, which retail parks are now stepping in to fill.”

Jacek Wesołowski, Managing Director of Trei Real Estate Poland, highlighted the availability of attractive land in smaller towns as a key factor behind the rapid growth of retail parks. “There are around 1,400 administrative units in Poland with limited or no modern commercial offering, including 600 small and medium-sized cities. This presents huge potential for retail development,” he added.

The report also identified significant demand in towns with populations of 5,000 to 15,000, which are home to more than 3 million people. “These figures indicate the vast potential for growth in retail parks and convenience centres,” the report said.

In terms of tenants, value retailers like Pepco, Action, TEDi, and Dealz dominate retail park space, accounting for 32% of the leasing area in parks built between 2019 and 2023. Food retailers take up 16%, followed by electronics stores (12%) and health and beauty outlets (7%). Fashion brands are also increasing their presence, now occupying 10% of retail park space, and several prominent shopping centre brands such as Sphinx, Starbucks, and Apart have recently opened their first outlets in retail parks.

Dagmara Filipiak, Senior Director of the Retail Agency at JLL, said retail parks are becoming increasingly attractive for new business ventures. “By the end of next year, the total area of this format will grow by at least another 500,000 sqm,” she noted, adding that the concept of 15-minute cities is gaining ground in large urban areas, where retail parks will play a key role.

“Retail parks will evolve into community hubs offering much more than basic shopping needs. Fitness clubs, restaurants, medical centres, and playgrounds will be part of the mix, making these parks vital community spaces,” Filipiak concluded.

Rental rates in retail parks range from €8 to €20 per sqm per month, while rates in large Warsaw shopping centres reach as high as €135 per sqm, with regional rates between €45 and €65 per sqm.

Photo: Vendo Park Kobylka, Trei Real Estate Poland