WARSAW Cushman & Wakefield Global Cities Retail Guide

Cushman & Wakefield | Warsaw | April 2019 0 Warsaw, the capital city of Poland, is the political and economic hub of the country and is home to many national institutions and government agencies, as well as many domestic and international companies. There are approximately 1.8 million people living in the city and 2.6 million in the metropolitan area of Warsaw. The spending power of its inhabitants significantly exceeds the national average. Due to the high wages (twice as high as the country average) and the low level of unemployment, the consumer market is particularly important. Warsaw has one of the lowest unemployment rates in Poland (1.5% as of February 2019). An advantage of Warsaw is its labour market, attracting young people from across Poland. The Warsaw conurbation represents the largest Polish retail market in terms of supply, which currently surpasses 1.3 million sqm of shopping centre space. The vacancy rate in Warsaw’s shopping centres remains very low at approximately 2% - one of the lowest amongst the country’s largest urban areas. Warsaw’s prime shopping area includes a number of key streets (Chmielna Street, Nowy Świat, Marszałkowska Street, Jerozolimskie Avenue). Aside from older buildings, retail space is often found in new multi-purpose buildings, WARSAW usually on their lower floors. OVERVIEW

Cushman & Wakefield | Warsaw | April 2019 1 WARSAW KEY RETAIL STREETS & AREAS

NOWY ŚWIAT STREET MARSZAŁKOWSKA STREET

Nowy Świat is approximately 1km long and has high Marszałkowska is one of Warsaw’s central streets. It has pedestrian flows. It runs from Plac Trzech Krzyży a great trading tradition with one of the oldest post-war northwards, intersecting Jerozolimskie Avenue and department stores present there: Wars Sawa Junior. It is a Świetokrzyska Street. Nowy Świat is a prime street in perfect location for mass market brands as it is a Warsaw and appeals to a predominantly mass market. communication hub comprising trams, buses (both city Retailers include Sephora, Orsay, Nesspresso, World and suburban) and stops. The average monthly Box, Max Mara, Empik and Tchibo. footfall is around 6,000,000 people. Behind the Wars Sawa Junior building, there is also a direct link to Nowy Świat street though Chmielna street.

PLAC TRZECH KRZYŻY (THREE CROSSES SQUARE), MOLIERA AND MYSIA STREETS

Plac Trzech Krzyży and its surroundings, including Vitkac luxury department store and Ethos office building with exclusive boutiques, is a location that appeals to more upscale retailers in Warsaw, outside of the shopping centres. Retailers such as Ermenegildo Zegna and W. Kruk are represented there.

Cushman & Wakefield | Warsaw | April 2019 2 WARSAW MARKET OVERVIEW

KEY AREAS/ CONSUMER RANGE OF STREETS/ MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT PROFILE UNIT SIZES SHOPPING CENTRES

Tchibo, Orsay, Sephora, Empik, Grycan, World Nowy Świat Mass market €60-80/sqm/month 50-1,500 sqm Box

H&M, C&A, Zara, TK Maxx, Sephora, CCC, Marszałkowska Street Mass market €50-67/sqm/month 50-4,000 sqm Martes Sport

Affluent, luxury Plac Trzech Krzyży Ermenegildo Zegna €50-60/sqm/month 50-400 sqm brand seekers

Carrefour, Leroy Merlin, Cinema City, H&M, Arkadia Mass market Chantelle, Carpisa €50-100/sqm/month All sizes P&C, Media Markt, Mango, Zara, Reserved

Carrefour, Media Markt, Multikino, Go Sport, Van Złote Tarasy Mass market Converse, Orsay €50-100/sqm/month All sizes Graaf, H&M, Zara, Smyk, Reserved

Mass market + high Carrefour, Cinema City, H&M, RTV Euro AGD, Galeria Mokotów Chanel, Timberland €50-70/sqm/month All sizes end P&C, Go Sport, Zara, Reserved

Mass market + high Go Sport, Carrefour, Cinema City, H&M, Calvin Klein Jeans, Promenada €30-45/sqm/month All sizes end Reserved, Zara Massimo Dutti

Cushman & Wakefield | Warsaw | April 2019 3 WARSAW SHOPPING CENTRES

ARKADIA ZŁOTE TARASY

Arkadia is one of the top three shopping centres in Złote Tarasy is located in the business centre of Warsaw Warsaw – along with Złote Tarasy and Galeria Mokotów. and is directly connected to the Warsaw Central railway It opened in November 2004 and very quickly became one station. This is a multi-level location: three levels of of the top footfall locations in Poland, with approximately regular retail plus a -1 level with a supermarket and 20 million visitors annually. services and an additional level where the cinema is located. It is very well served by public transport.

GALERIA MOKOTÓW

Galeria Mokotów is located some distance from the city centre but due to the multiple office buildings nearby, high GALERIA PÓŁNOCNA spending power in the area and the vicinity of Warsaw southern suburban districts it is one of the best-performing Galeria Północna is a 64,000-sqm-GLA shopping centre shopping centres in Warsaw. opened in September 2017. This is the first large shopping centre to open in the capital city of Poland in the last 10 years (after Złote Tarasy opened in 2007). The PROMENADA scheme is located in the northern part of Warsaw with very good accessibility by car and good public transport The Promenada shopping centre is located on the right- connections. bank of the Vistula river. Currently the scheme is being extended. Recently, in 2018, a new retail space providing ca. 2,000 sqm of GLA was opened and another part of enlargement is scheduled for 2020.

Cushman & Wakefield | Warsaw | April 2019 4 DEVELOPMENT TO WATCH OUT FOR

GALERIA MŁOCINY

Total Scheme Size 75,000 sqm

Planned Opening Date Q2 2019

Consumer Profile Family shopping and entertainment

Developer Echo Investment

ABOUT THE DEVELOPMENT

A new shopping and leisure centre is being developed by Echo Investment in the northern part of Warsaw, within the Bielany residential district. This 75,000 sqm GLA scheme, with 220 retail and services units, is currently under construction and its opening is scheduled for mid-2019. The shopping centre is approximately 90% pre-leased with anchor tenants including Intermarche, Inditex Group, TK Maxx, H&M, C&A, Media Markt and Calypso fitness centre. The car park will provide 2,000 spaces. WARSAW NEW DEVELOPMENT WATCH

Cushman & Wakefield | Warsaw | April 2019 5 WARSAW FOOD & BEVERAGE

Warsaw features a wide variety of fast International fast food operators such as McDonald’s, food bars and restaurants to suit all KFC and are represented in large numbers. Subway is also represented there. From the coffee shop budgets and tastes, from traditional sector, , and Green Caffé Nero Polish to international cuisine from all are the main players. corners of the world. The Old Town and areas such as Trzech Krzyży Square, There are a large number of local restaurants aimed at Nowy Świat, Chmielna and Krakowskie Przedmieście affluent customers, many of them located in the city streets are the key areas for food and beverage operators, centre, along Nowy Świat street. This is one of the main particularly cafés. The Old Town quarter was retail streets with food & beverage tenants dominating. reconstructed after the Second World War and is on UNESCO’s World Heritage List. Its main square (Rynek Starego Miasta) is home to a number of restaurants and cafés.

CONSUMER TYPICAL RENT FOR KEY AREAS FOOD & BEVERAGE OPERATORS PROFILE 50-150 SQM UNIT

Starbucks, Costa Coffee, McDonald’s, Nowy Świat Locals, tourists €60-80/sqm/month Green Caffé Nero, Subway, local

Old Town Tourists Pizza Hut, numerous sites N/A

Trzech Krzyzy Locals Starbucks, local €50-60/sqm/month Square

Chmielna street Locals, tourists local €50-55/sqm/month

Krakowskie Locals, tourists KFC, Costa Coffee, E.Wedel, Batida €60-100/sqm/month Przedmieście

Cushman & Wakefield | Warsaw | April 2019 6 WARSAW RETAIL WAREHOUSING/BIG-BOX RETAIL

HOMEPARK JANKI HOMEPARK TARGÓWEK

A retail park developed by Inter IKEA in 1995 and The largest Retail Park in Poland developed in 1998 and extended in 2002-2006, located in Janki, a small town extended in 2001-2010, located on the north-eastern near Warsaw on a main route to Kraków, Wrocław, Łódź outskirts of Warsaw. The scheme offers 99,300 sqm of and Katowice. The scheme provides 60,900 sqm of GLA GLA and 4,500 parking spaces. The retail park comprises with 48 retail and services units and 2,300 parking a strip mall, stand-alone Leroy Merlin, Jula and Domoteka spaces. Anchor tenants include IKEA, Jula, Piotr i Paweł - a two level shopping centre offering upmarket furniture supermarket, RTV Euro AGD and Komfort. Other key and home accessories. retailers are Rossmann, Empik, Belbazaar, Gravitan Health & Sport Club, Vox Meble, Eurofirany.

RETAIL CONSUMER RETAILERS PRESENT F&B AND LEISURE TENANTS PARK PROFILE

IKEA, Jula, Piotr i Paweł supermarket, Homepark McDonald’s, Qbik Bistro, Kebab King, Mass market RTV Euro AGD, Komfort, Rossmann, Janki Gravitan Health & Sport Club Empik, Belbazaar, Eurofirany

Leroy Merlin, Domoteka, IKEA, Jula, Homepark Piotr i Paweł supermarket, Sports Direct, Pizza Dominium, Kebab King, Levant Bistro Mass market Targówek RTV Euro AGD, SMYK Megastore, TK & Cafe, Gravitan Health & Sport Club Maxx

Cushman & Wakefield | Warsaw | April 2019 7 LUCYNA ŚLIŻ Associate Head of Retail Team Development Direct: +48 22 218 20 86 Office: +48 22 820 20 20 Mobile: +48 600 870 349 Fax: +48 22 820 20 21 [email protected]

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