Warsaw, September 22, 2016 – Katowice conurbation is characterised by a distracted retail market with two main centres – Katowice and Gliwice. There are 44 schemes that significantly vary in terms of size and quality. These total 1.1 mln sqm GLA with density of 519 sqm/1,000 inhabitants. There are almost 48,890 inhabitants per one shopping centre. The purchasing power of Katowice conurbation inhabitants equals on average PLN 65,510 annually per one square meter of shopping centre – according to Colliers International publication ”Shopping centres in agglomerations Q2 2016 | Katowice Conurbation”.
Last year, there were two new shopping centres completed in the market totalling over 50,000 sqm GLA – Galeria Galena in Jaworzno and Supersam in Katowice. The construction of another scheme – Quick Park Mysłowice (about 13,000 sqm) is announced to be finished in the second half of 2016. The largest retail scheme in the market is still Silesia City Center in Katowice with space of 84,000 sqm and over 300 retail, service, entertainment and gastronomy units.
Currently in the Katowice conurbation there are approximately 50,000 sqm GLA under construction. The largest presently developed shopping centre is Gemini Tychy. The further retail space (almost 75,000 sqm GLA) in the market in years 2016-2018 will be developed by projects that are currently in an advanced planning phase – including Galeria Libero in Katowice.
„Katowice conurbation retail market is still attractive for investors - both Katowice and smaller urban centers. New retail schemes will appear in the coming years, including Gemini Park in Tychy and Galeria Libero in Katowice. The case of recently closed CH Sosnowiec shows that the increased competition affects older schemes which need market repositioning or change of their function”, said Katarzyna Michnikowska
, Senior Analyst, Research and Consultancy Services, Colliers International.
The demand for retail space in Silesian shopping centres is concentrated around best projects - that guarantee their tenants high footfall and turnover. The potential of Katowice conurbation has been already appreciated by premium tenants – Clinique, Guess by Marciano and Hugo Boss have joined the Silesia City Center tenant-mix. On the other hand, in Silesia, there are several schemes with high structural vacancy that need repositioning to obtain interest from tenants. In Q2 2016 one of the shopping centres in the region was closed – CH Sosnowiec.
The average vacancy rate at the end of 2015 reached 3,8%, but in the first half of 2016 it dropped to 3.3%. Rental rates are at the level of EUR 43-45 sqm/month for a 100-150 sqm fashion unit in the most popular shopping centres.