Szczecin, the smallest retail market in the group of eight agglomerations, offers 280,000 sqm GLA in 11 shopping centres which results in density of 503 sqm/1,000 inhabitants. There are on average 50,730 inhabitants per one shopping centre. The purchasing power equals on average PLN 59,680 annually per one square meter of shopping centre – according to Colliers International publication ”Shopping centres in agglomerations Q2 2016 | Szczecin”.
The newest completion in the market is Marcredo Center with area of 14,000 sqm GLA delivered in 2013. The largest retail scheme in Szczecin is Galeria Kaskada (43,000 sqm GLA and 140 units). The second shopping centre in terms of size is Galaxy (42,500 sqm GLA), which in the coming years has the opportunity to become the biggest one due to the expansion of approximately 17,000 sqm.
„We are observing a limited developers’ activity on the Szczecin market. The ongoing projects include the extension of CH Galaxy and the next phase of Outlet Park Szczecin. It is worth to mention the decline in vacancy rates by 1.2 percentage points compared to the same period last year, which is a good prognosis for future retail projects in the region”, said Katarzyna Michnikowska, Senior Analyst, Research and Consultancy Services, Colliers International.
At the moment in Szczecin Agglomeration there are two objects under construction. Both of them are modernisations and expansions of already existing buildings – Outlet Park Szczecin (3,500 sqm GLA) and Galaxy (17,000 sqm GLA). In next three years approximately 20,000 sqm area of shopping centres will be developed in total.
The demand for retail space in Szczecin remains at the average due to the size of this market and lack of large regional retail projects in advanced stage of planning. Lease transactions mainly concern replacement of tenants and agreements renewals.
Among lease transactions in Szczecin market announced in the end of last year and in the first half of 2016 there should be mentioned: H&M (about 1,800 sqm), extension of CCC (up to 480 sqm) and Rossmann (up to 540 sqm) in Turzyn, outlet shops Monnari (about 400 sqm) and Świat Zabawek (about 250 sqm) in Outlet Park Szczecin, extension of CCC (up to 665 sqm) and Rossmann (up to 385 sqm) in Atrium Molo.
The average vacancy rate at the end of 2015 has reached 3%, in the first half of 2016 it dropped to 2%. The highest rental rates are at the level of EUR 37-39 sqm/month for a 100-150 sqm fashion unit in the most popular shopping centres.