The retail real estate sector in Poland continues to grow, with retail parks playing a dominant role. In 2024, a total of 337,100 m² of new commercial space was completed, encompassing 37 projects, including 35 retail parks and 12 expansions, according to Mariusz Majkowski, Director in the Sales Area Department at CBRE. This trend is expected to strengthen in 2025, with retail parks capturing a larger share of the market. “Retail parks have been the focus of market expansion in recent years, and this trend will persist in 2025. Of the 588,100 m² of space currently under construction, more than half is dedicated to retail parks. Investors are increasingly targeting smaller markets to meet consumer demand for convenience—offering shopping closer to home and combining brick-and-mortar with online channels,” said Majkowski. At the end of Q3 2024, Poland’s retail space totaled 14.42 million m². Shopping centers accounted for nearly 75%, retail parks for 25%, and outlets for the remaining 2%. Retail parks are expected to expand their market share as new developments increasingly focus on smaller towns, where 63% of ongoing projects are located. Of these, 69% are retail parks, reflecting their growing popularity among investors and consumers. “Retail parks are now appearing in increasingly smaller towns, with diverse formats ranging from compact facilities combining grocery stores and drugstores to large parks offering extensive shopping options,” noted Majkowski. Both foreign and domestic investors are fueling this growth. International capital from countries like the Czech Republic, Hungary, Israel, and South Africa has been active in the Polish market, but domestic investors are also increasing their participation. Majkowski expressed optimism about the rising role of Polish investors, not only in the local market but across the Central and Eastern European (CEE) region. Several new brands entered the Polish market in 2024, including Dreame (China), Jack & Jones (Denmark), Made by Society and Luca (Romania), Kamalion (Spain), Arket (Sweden), TAG Heuer (Switzerland), Rebernia (Ukraine), and GAP (USA). Polish brands such as Tatuum, Half Price, and LPP are also expanding their footprint in the CEE region. While retail park development thrives, shopping malls remain active, particularly through renovation and rebranding. Older malls, built in the 1990s, are being updated to meet current customer preferences, with boutique malls transitioning into convenience-focused centers by attracting tenants like Action and Tedi. Meanwhile, some aging malls, such as Arkady Wrocławskie and Malta, are being demolished to make way for residential or mixed-use developments. “Thoughtful changes can give existing shopping centers a second life, allowing them to stay competitive and relevant in a rapidly evolving retail landscape,” Majkowski concluded. Source: CBRE and ISBnews Photo: Vendo Park, Szczecin by TREI Real Estate