Retail real estate adapts to market shifts with innovation and efficiency

The commercial real estate sector, particularly retail, is undergoing significant changes driven by evolving consumer habits, technological advancements, and increased environmental awareness. According to Marcin Kosieniak, an MEP specialist and co-owner of PM Projekt, these shifts are pushing property owners and managers to adopt more innovative and energy-efficient solutions.

Focus on Energy Efficiency

Heating, ventilation, and air conditioning (HVAC) systems have become a central area for operational cost reduction in retail buildings. Kosieniak notes that intelligent HVAC systems, which use machine learning to adapt to real-time occupancy levels, can lower energy consumption by up to 25–30%. These systems adjust output during off-peak hours and ramp up efficiency when foot traffic increases.

Optimizing HVAC operations can result in operating cost savings of 15–20% annually, which may also reduce service charges for tenants and, potentially, consumer prices. PM Projekt has implemented such systems in both Poland and Germany, with a typical return on investment occurring within 3–5 years. Kosieniak adds that sustainable HVAC systems are increasingly seen as a value proposition for attracting environmentally conscious tenants and customers.

Evolving Role of Retail Spaces

The boundaries between physical and online retail are becoming less distinct, prompting the development of hybrid retail formats. Many shopping centers now serve as multifunctional hubs combining retail with dining, entertainment, coworking, and even residential areas. Showroom-style stores, where customers view products before ordering them online, are also becoming more common.

These diversified uses help maintain the viability of retail properties even during downturns in traditional retail activity.

Role of Technology

Technology is playing a growing role in enhancing both operational efficiency and customer experience. From people-tracking systems and smart lighting to IoT-based building management tools, innovations are helping retail centers cut energy usage, improve maintenance planning, and personalize the customer journey. Features like mobile navigation, targeted promotions, and cashless payments are now standard in many shopping environments.

Sustainability and Certification

Sustainability is increasingly integrated into both new developments and refurbishments of existing retail centers. Certifications such as BREEAM and LEED are now common, reflecting the use of eco-friendly materials, rainwater recovery systems, and green infrastructure like rooftop gardens.

Kosieniak highlights that such environmental initiatives not only reduce emissions and operating costs but also meet the expectations of tenants and shoppers who prioritize sustainability.

Flexible Leasing and Adaptable Design

Retail landlords are also embracing more flexible leasing models, including short-term leases, pop-up formats, and modular layouts. This allows for faster adaptation to tenant needs and market shifts. New retail buildings are being designed with future reconfiguration in mind, enabling easy repurposing of space.

“Success in today’s market requires a comprehensive approach—combining efficiency, adaptability, technology, and sustainability,” says Kosieniak. “Retail properties that can evolve with these trends are best positioned to thrive in the changing commercial landscape.”