Eurobuild TV: Marek Noetzel: We are heading towards tenants' market

“This is mainly noticeable across small and medium-sized cities. This trend is not so obvious in larger municipalities, and particularly in Warsaw, but the process continues and will probably gather speed soon. The main reason behind this can be found in the level of revenues, which came below expectations. In addition, supply of a modern retail space remains very high – and this concerns both the newly-developed space (0.5 mln sqm is set to be delivered in 2014) and the older buildings which offer equally attractive lease terms. Competition between developers is so tough that the pressure to lower the rents is quite evident. As long as the new retail space is being developed, retailers are going to lease out space in the malls. The market is still immature, unsaturated and growing, and tenants still build their market share. Most of the recognizable brands in Poland will look to have their presence in the shopping centres that are currently being developed,” said Noetzel.