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In order to analyse the performance of the shopping centre, in addition to the basic

indicators, such as rental rate or the operating cost (including services charges), the

following parameters are taken into consideration: profitability indices defined as a

relation between rent and service charges vs. turnover: rent to sales and effort rate.

Rental levels and the length of negotiations in respect of the best locations has not

changed for the last year and rents are stable for new shopping schemes, hovewer

the negotiation process has become much longer for less attractive schemes.

The prime rental rates registered in the most attractive shopping centres such as Arkadia,

Galeria Mokotów and Złote Tarasy in Warsaw, Manufaktura in Łódź are rather stable

and reach up to EUR 80-110/sq m/month. The average rents are between EUR 45-

60/sq m/month in the remaining schemes in Warsaw. In other agglomerations, prime

rates range from EUR 40 to 50/sq m/month.

The rental values presented in the graph represent the headline rates. With the

evolution of the retail market and the change from a landlords’ towards a tenants’

market, incentives for tenant are becoming a more and more important component of

the leasing negotiations. Currenty the following incentives for retailers are observed

on the market:service charge discounts for anchor tenants (cinema, supermarket),

non-financial fit-out contributions or additional incentives, such as shorter lease

agreements with a prolongation option for the tenant or a rent free period, step-up

rent and turnover rent.

© 2016 CBRE