The attempt at regulating rents interferes with the freedom of contract, i.e. the right of private entities to set the terms and conditions that will govern their relationship. Shopping centres are a complex system of interconnected vessels where supporting one side and passing most of the costs onto the other will affect the other links in the chain: banks, suppliers, operators providing services to the shopping centres and, consequently, the same tenants that are to benefit from this aid package today
Fabrice Paumelle, Head of Retail, BNP Paribas Real Estate Poland
As far as the schemes currently under development are concerned, small- and medium-scale shopping centres and retail parks are the dominant format, with more than 53% of the space located in cities with a population of up to 50,000 residents, while only 14% thereof is located in the largest agglomerations. The share of retail parks in the retail stock is increasing from one year to another, and the new COVID-19 reality showed us that this is a crisis-proof format. As at the end of Q1 2021, retail parks accounted for 40% of the space under construction, with the format being dominated by small schemes with a leasable area of 5,000-10,000 sqm located in cities with a population of less than 100,000 residents. The growth of this segment comes from the expansion of discount store chains that are appearing on the market mainly in small shopping centres and convenience retail parks in cities with a population of up to 100,000 residents
Małgorzata Fibakiewicz, Head of Business Intelligence Hub & Consultancy, BNP Paribas Real Estate Poland
The total value of retail properties transacted during this period reached nearly EUR 190 million, which is the best result recorded in the first quarter of the year over the last 5-6 years. The largest transaction completed in Q1 2021 was the purchase by EPP of four M1 schemes (Olsztyn, Tychy, Opole, and Kielce). This was the last tranche of Chariot Top Group's assets transacted under an agreement signed in 2018. In turn, nearly 20% of all the retail assets transacted were formerly owned by Tesco. Taking into account the restrictions imposed on the operations of large retail schemes in Poland, the change in consumer behaviour and the booming local shopping experience, retail parks and convenience shopping centres will continue to attract investors in the coming months, as assets with the highest level of liquidity
Mateusz Skubiszewski, Head of Capital Markets, BNP Paribas Real Estate Poland