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Supply

The biggest of the projects finished in Q1 was Atrium Felicity (73,000 m2) in Lublin, which is positioned as a regional shopping centre. It offers a hypermarket, DIY and electronic equipment stores, a wide range of fashion stores and a cinema.

Other projects completed during the first 3 months of this year include Galeria Amber in Kalisz and Galeria Siedlce, which was rebuilt from the former Galeria S. These are medium sized shopping centres (respectively 33,500 m2 and 34,000 m2) with a supermarket, fashion stores from well-known Polish and international brands and an entertainment & leisure offer (cinema, fitness, restaurants, cafes). Another completed scheme is Era Park Handlowy located in Radomsko (8,500 m2), which is a smaller project.

Demand

With the opening of the aforementioned projects, 380 new shops, service points and restaurants appeared on the market enriching the retail and service offer of each location.

New shops with the biggest leased area in Lublin are: Auchan, Leroy Merlin, Saturn, RTV Euro AGD, Smyk Megastore, H&M, C&A (the first in the city), Reserved and Zara; in Kalisz: E. Leclerc, RTV Euro AGD, H&M, C&A, Reserved, Carry and Stokrotka; in Siedlce: RTV Euro AGD, H&M, C&A, Reserved and Bershka. In Radomsko Lidl, Jysk, RTV Euro AGD, Deichmann, CCC, Rossmann, KIK, Martes Sport and Pepco were opened.

In Q1, the entrance of a few new brands into the Polish market was noted. The first regular store in the Arkadia shopping centre in Warsaw was opened by the Spanish brand Desigual, which had previously only operated via outlets. Also in Arkadia, Adidas NEO, with an offer for young people, made its debut.

In March this year, Papag AG took over 24 shops of the Praktiker DIY chain in Poland. They will act under the name of Praktiker.

Available space

Within the 8 major Polish agglomerations, a decrease in the vacancy rate was noted from 3.4% to 3.3%. In big cities (200,000-400,000 inhabitants) the vacancy rate exceeded slightly 5% (in comparison to the first half of 2013).

The vacancy rate in the analysed cities differs in terms of both current demand and resources in the given market. Vacant units are usually to be found in older or less popular shopping centres or relatively recently opened projects in which the process of commercialisation is still taking place.

The lowest vacancy rate (less than 2%) was noted in Łódź, Warsaw and Szczecin.

The highest level of available retail space was observed in Kielce, Toruń, Bydgoszcz and Białystok (over 5%).

Prognosis

Taking into consideration projects that are currently under construction, it can be estimated that within April- December 2014 approximately 445,000 m2 of new retail space will be delivered, 50% of which will be located in small cities (less than 100,000 inhabitants). Among the biggest schemes Galeria Bursztynowa in Ostrołęka, Galeria Neptun in Starogard Gdański and Galeria Piła should be mentioned. In Jelenia Góra, a spectacular extension of the former Galeria Echo (currently Galeria Sudecka) is being carried out (it will be enlarged by 26,000 m2).