It is already the fourth edition of the report which identifies potential investment opportunities on the Polish retail market in small cities. The research is released in six parts, which are published on the quarterly basis - the actual one  focuses on Eastern Poland (podlaskie, lubelskie, świętokrzyskie and podkarpackie voivodships).

The report provides an overview of retail markets in cities with populations between 30 – 100 thousand inhabitants. Cities are analysed in terms of both existing and planned modern retail supply, as well as economic indicators, such as unemployment rate and purchasing power. Based on the results of this analysis the map of retail gaps is created. The map defines new ‘trade routes’, which cover the cities with high potential due to the combination of limited supply of modern retail space and favourable economic parameters.

Our database includes the most current information on the real estate market in Poland. Smaller cities are becoming more and more interesting for investors who wish to gain exposure in new and prospective locations. The analysis of retail space in the following part of this report consists mainly of modern schemes with min. 5,000 m2 GLA, which represents a scale of development with the potential to attract significant number of customers and impact the market.” – comments Dominika Jędrak, Director of Research and Consultancy Department at Colliers international.

Short overview of Colliers’ report:

LUBELSKIE VOIVODSHIP

  • The largest supply of modern retail space in lubelskie voivodship is located in Zamość (52,230 m2), Puławy (18,100 m2) and Biała Podlaska (13,500 m2).
  • Developers plan other shopping centres in Zamość, Biała Podlaska, Świdnik and Chełm, as well as first modern retail scheme in Kraśnik.
  • The extension of Revia Park shopping centre is planned in Zamość, with a target leasable area of 15,000 m2.
  • Another retail scheme is planned in Biała Podlaska, namely Galeria Bialska (approx. 25,000 m2). Shopping centre will be located in the area of the former furniture factory on Łomska Street. Initial delivery date is set for Q2 2014. Additionally, an extension of Rywal shopping centre (up to total GLA of 25,000 m2) is planned for Q3 2012.
  • First modern retail space will be delivered in Chełm – Galeria Chełmska. The developer has planned the opening for 2013.
  • NAP Invest Group is planning to open Centrum Zakupów in Świdnik. The leasable area will be 8,000 m2, the beginning of the construction work is planned for Q1 2013 and the delivery for the third quarter of the same year.
  • First modern retail space will be delivered in Kraśnik - Galeria Raj. Shopping centre of 5,900 m2 will be located on Urzędowska Street.

PODKARPACKIE VOIVODSHIP

  • The largest supply of modern retail space (48,750 m2 GLA) is located in Przemyśl, with one big shopping centre (Galeria Sanowa) and two smaller schemes.
  • Developers plan other shopping centres in Jarosław, Mielec, Przemyśl and Krosno.
  • One shopping centre is planned in Przemyśl – Galeria Przemyśl that will offer 5,000 m2 of leasable area and will be located on Jagiellońska Street.
  • Two retail schemes are planned in Mielec – Galeria Aviator and Park Handlowy. Galeria Aviator with 30,000 m2 GLA will be located on Powstańców Warszawy Street, whereas PA Nova is going to build a retail park. The first phase of the investment will be DIY store OBI (10,000 m2). In the second phase, the retail park will be constructed with the GLA of 12,000 m2.
  • Two retail schemes are planned in Krosno: CH Arabella (unknown delivery date, GLA – 39,000 m2) and Park Handlowy planned by Rank Progress, which will be located adjacent to recently opened DIY store OBI in Miejsce Piastowe.
  • One retail scheme is planned by CD Locum in Jarosław. Its area will reach approx. 20,000 m2 and the opening is scheduled for 2014.

PODLASKIE VOIVODSHIP

  • At the end of the first half of 2012 modern shopping centres with min. 5,000 m2 GLA were present only in Suwałki and Łomża.
  • I n Suwałki there are two shopping centres – Suwałki Plaza and a smaller retail scheme based on a big hypermarket – Tesco.
  • Galeria Łomża is the only modern shopping centre in Łomża.
  • At present, there is no modern retail space with the GLA above 5,000 m2 in Augustów.
  • Currently there are two shopping centres under construction in Łomża: Galeria Veneda and Galeria Narew, with the GLA of 16,000 m2 and 40,000 m2 respectively. In both cases the opening is planned for the end of 2012.

ŚWIĘTOKRZYSKIE VOIVODSHIP

  • At the end of the first half of 2012 modern shopping centres with min. 5,000 m2 GLA were present in Ostrowiec Świętokrzyski and Skarżysko-Kamienna
  • There is one big shopping centre in Ostrowiec Świętokrzyski – Galeria Ostrowiec Świętokrzyski, with a large-format hypermarket Tesco. Hermes shopping centre is also located in Skarżysko-Kamienna.
  • Sandomierz is another city worth mentioning due to its touristic value. Although the official population of the city is less than 30 thousand, the intensive tourist traffic drives trade and attracts well-known brands. Modern retail space in Sandomierz is mainly located in Galeria Sandomierz.
  • The extension of 12,000 m2 of Galeria Ostrowiec is planned in Ostrowiec Świętokrzyski for 2014.
  • First modern retail schemes are planned to be built in Starachowice. Galeria Kamienna, which is currently under construction, should be delivered by the end of 2012. Shopping centre with Tesco hypermarket is currently in the planning phase, with an initial delivery date set for 2014.
  • BPF Inwestor is planning an extension of Hermes shopping centre in Skarżysko-Kamienna. The GLA after the extension will reach 9,500 m2 and the second phase of the investment is scheduled for H1 2013

Voivodships in Eastern Poland are characterised by the lowest purchasing power in the country. Hence, investments in this region require particular cautiousness and planned retail schemes should be tailored to the potential of the local markets. Due to a relatively low purchasing power in mentioned voivodships, values recorded in the analysed cities are in all cases higher than the average for the voivodship, however most of them are below the country’s average.” – adds Dominika Jędrak

The last reports of the series regarding the Northern and North-Western Poland will be released in November this year.

Download previous parts of the Retail Gaps: Central, Southern and South-West Poland.