Shopping centers in Katowice area in H1 2015

A research department of Colliers International has prepared a report presenting the shopping centers market in the Katowice conurbation. The publication shows data collected after the first half of 2015.

No new shopping centers were delivered in the Katowice conurbation in the first half of this year. There are approximately 50 000 sq. meters gross leasable area under construction in the region, with projects like Supersam in Katowice and Galeria Galena in Jaworzno. A new project, Gemini Park Tychy, is set to begin soon, after it has obtained the building permit. Among the projects which are in advanced stage of planning, Echo Investment’s shopping center in Katowice (42 000 sq. meters GLA) as well as shopping center with IKEA store in Zabrze (60 000 sq. meters GLA) are worth mentioning.

Total stock of shopping centers in the Katowice conurbation amounts to 1,1 mln sq. meters GLA, resulting in density ratio of 501 sq. meters GLA/1 000 inhabitants. On average, there are 50 300 people per each of 43 existing shopping centers and approximately PLN 67 100 per a square meter GLA. The relatively low density ratio does not mean, however, that there is a supply deficiency. The Katowice conurbation is quite a fragmented retail market with two main cities, Katowice and Gliwice, where large amount of retail space is concentrated. The retail space density ratio amounts to 788 sq. meters/1 000 inhabitants in Katowice and 1 144 sq. meters/1 000 inhabitants in Gliwice.

Among the existing retail schemes in Upper Silesia, traditional shopping centers dominate the market at a ratio of 90%, while retail parks constitute 8% and outlet centers only 2%. In the Katowice conurbation there are large downtown shopping centers and small convenience shopping centers in minor cities. People can do shopping in suburban retail parks or an outlet center in Sosnowiec as well.

The retail market in the Katowice conurbation has been developing for almost 18 years. The oldest scheme is M1 in Czeladź while Marcredo Center retail park in Piekary Śląskie, that was put into operation in 2014, is the most recent one. In the past years, the region saw a great demand for newly retail space. The first outlet center in the region, Fashion House Sosnowiec that has been subsequently extended several times, was built in 2004. In 2005, the region’s largest (84 000 sq. meters GLA after the expansion in 2011) shopping center, Silesia City Center, was delivered in Katowice. The significant wave of supply came in 2013, when Galeria Katowicka (48 000 sq. meters GLA) and Europa Centralna complex in Gliwice (67 000 sq. meters GLA) were put into operation.

The richest offer of stores, services and gastronomic units is provided by Silesia City Center (over 300) and Galeria Katowicka (over 200). Shopping centers in the Katowice conurbation contain approximately 2 580 stores with the largest tenant group being fashion (25%) and services (18%). Also well-represented are health & beauty at 9% as well as gastronomy at 8%.

Tenants are interested in the largest shopping centers under construction but also in existing ones with a stable market position. Recent transactions include: TK Maxx in Galeria Katowicka (2 000 sq. meters), Fabryka Formy fitness club (1 300 sq. meters) and Multikino (1 200 sq. meters) in Galeria Galena in Jaworzno as well as New Look (500 sq. meters) in Supersam.

The average vacancy rate in the Katowice conurbation stood at 4,2% at the end of H1 2015. However, amount of available space in Upper Silesia vary depending on the city and scheme.

Rental rates for space in shopping centers in Upper Silesia are very diverse. The highest rates in Katowice are in the range of EUR 47-49/sq./month (for 100 sq. meters unit for the fashion tenant).

The largest shopping centers in Katowice are (alphabetical order): 3 Stawy, Auchan, Belg, Dąbrówka, Galeria Katowicka, Park Handlowy Rawa and Silesia City Center.