The supply of modern retail space has reached 3.93 million sqm in the Czech Republic. Retail parks or shopping parks are taking a portion of 31% of this total according to Cushman & Wakefield's analysis of the Czech retail park market data. Traditional shopping centres account for about 67%, and the remaining 2% are outlets.
Last year witnessed the completion of more than 62,000 sqm of shopping space in 17 retail parks - new, renovated or expanded. The total space in the retail parks has increased to 1.2 million sqm. This is the second-largest increase in the last 10 years.
The share of retail parks in the total volume of modern retail space in the Czech Republic has increased by 5 p.p. over the last five years. Given the growing interest in this business concept from landlords, tenants and investors, the percentage of the total volume can be expected to grow in the coming years.
Jan Čížek, Head of Retail Warehousing, Cushman & Wakefield explains: ”Retail parks continue to enjoy great interest from shoppers, which supports their further development. This is primarily concentrated in smaller towns of up to 10,000 inhabitants, where developers are preparing smaller projects of up to 2,500 sq m. In addition, large, successful projects in bigger cities are being expanded, where the aim is to strengthen their position in their catchment area.”
Developers are preparing more new retail parks for the future: 87,200 sqm of their space is currently under construction, and an additional 380,000 sqm is in various stages of preparation. If all planned projects are completed as planned, the area of retail parks could increase by more than 400,000 sqm by 2025.
Investors’ interest in new retail parks is not waning either, as their tenant mix offers stable rental yields - and investment is cheaper than in traditional shopping centres. Jiří Kristek, Head of Industrial and Retail Warehousing Team, Cushman & Wakefield confirms: “Over CZK 2 billion (€40,42 million) was invested in retail parks in the Czech Republic last year. According to information from developers, further sales of newly completed retail parks are under negotiation.”
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