According to data from the Polish Council of Shopping Centers, footfall in shopping malls range from 62 to 73% when compared to last year’s numbers. The pandemic has changed the habits of Poles who are planning their shopping in a more thoughtful, cautious and safe way. In the new reality, small-format shops located close to home are attracting more visitors. By the end of May and after negotiations between owners and tenants had been completed, almost all shops in retail parks were operating. Some of these shops are now recording a turnover of 160% of pre-lockdown levels.
Negotiations were held with 38 chains and companies operating in 900 stores in more than 200 retail destinations across the country. The talks started at the beginning of April. The openness and willingness of both sides to cooperate meant the entire process ran very smoothly, and thanks to which all retail parks have now been opened. We have proved that we are ready to operate even in these difficult pandemic conditions,
says Jacek Wesołowski, Managing Director of Trei Real Estate Poland.
Vendo Park opened by Trei in June. Płock, Poland.
The settlements we have concluded with the tenants of our Vendo Parks assume a rent rate dependent on turnover. During the negotiations no one expected that retail parks would return to ‘normal’ so quickly and that our tenants' turnover would exceed the pre-pandemic levels by 20-60%. This is closely related to the sales offer, but also to the fatigue society suffered in the lockdown. For many of us, going shopping in a retail park was the first tangible stage of returning to our daily routines,
comments Jacek Wesołowski.
Jacek Wesołowski, Managing Director of Trei Real Estate Poland
The corona crisis proves that there must be greater openness between the owners and tenants of their facilities. Shops don't share their Internet deal revenue with landlords. Such a system is no longer valid, and new settlement rules need to be developed. E-commerce must be included in the turnover,
adds Wesołowski.
Large chains operate in big shopping centers on leases with rental rates set as a percentage of turnover, but these are not all of their costs. In addition, in malls, the service fee is about 70 PLN/sqm/month, compared to 7 PLN/sqm/month in retail parks. Therefore, it seems natural for large tenants to turn to retail parks. In fact, this trend has been strengthening on the market for some time now, and the consequences of the pandemic will only strengthen and accelerate this shift,
summarizes Jacek Wesołowski, Managing Director of Trei Real Estate Poland.
Trei Real Estate GmbH, with its headquarter in Düsseldorf (Germany), invests, develops and manages tailor-made and sustainable residential and commercial properties. In the context of its long-term strategy, the wholly-owned subsidiary of the German Tengelmann group focuses on real estate investment in Germany, Poland, the Czech Republic, Slovakia, Portugal and the USA. In addition to its portfolio of approximately EUR 1.2 billion, Trei Real Estate GmbH has a pipeline of property developments totalling approximately EUR 900 million. Under the Vendo Park brand, the company builds and leases retail parks in Poland, the Czech Republic and Slovakia. A total of 27 facilities have already been built, 17 of which are located in Poland. Trei's current development also includes residential real estate in the US and Europe as well as student apartments built under the Quartillion brand.
