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Discover the potential of high streets in Warsaw

High Streets in Warsaw

Discover the potential of high streets in Warsaw

RESEARCH

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Contents

Introduction

Tourist traffic

Development of the luxury goods market

Development of prestigious hotels 20 Reconstruction of the city centre (New Centre of Warsaw) 26

Location for new brands and flagship stores

Gastronomic offer

Rents

Summary

Contact

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Zamek Królewski

K r a kow sk i e P r

Introduction

z edm i e ś c i e

Wi s ł a

Pałac Prezydencki

Plac Teatralny

Uniwersytet Warszawski Krakowskie Przedmieści e

Elektrownia Powiśle

The very centre of Warsaw has many years of trading traditions, examples being the well-known shopping destinations such as Domy Towarowe Centrum (established in the 1960s and 1970s) and Centralny Dom Towarowy (1951, now Cedet). Current high street clients include not only Warsaw residents, but also employees of nearby office buildings and tourists.

This publication presents the high streets of Warsaw - destinations with a diverse commercial, service and gastronomic offer, where international retail chains intertwine with local businesses. Individual streets differ in their character, which makes them unique and at the same time influences the customer’s choice of destination.

M a r s z a ł kow sk a

No w y Św i a t

k r z yska

Browary Warszawskie

Ś wi ęt o

Św i ę tok r zys k a

Fabryka Norblina

C h m i e l n a

Pałac Kultury i Nauki

Ch m ie l n a

B r ac k a

A l . J e r ozol i ms ki e

M ys i a

N o wy Ś wia t

Złote Tarasy

B r ac k a

A l . J e r ozol i ms ki e

K r u c z a

Plac Trzech Krzyży

Dworzec Centralny

Pozn a ńs k a

H o ża

M a r s z a ł kow sk a

H o ża

K r u c z a

M oko towska

P ię k n a

K o s z yk o w a

Current high street clients include not only Warsaw residents, but also employees of nearby office buildings and tourists.

K oszy k o w a

Plac Konstytucji

Hala Koszyki

K o s z y ko wa

Politechnika Warszawska

Plac Zbawiciela

M o ko t o w s k a

Łazienki Królewskie

M a r s z a ł kow sk a

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 1: Chmielna

01.

Tourist traffic

Nowy Świat, Krakowskie Przedmieście, Chmielna

Nowy Świat and its extension - Krakowskie Przedmieście - are the main communication arteries for tourists visiting Warsaw, being part of the Royal Route. They lead to the Old Town and the Royal Castle, which is one of the top 3 most popular attractions in Warsaw among residents and tourists, according to a report prepared by the Warsaw Tourism Office.* Nowy Świat Street is crossed by Chmielna Street, connecting Nowy Świat with Marszałkowska Street, where the Palace of Culture and Science is located at the intersection of Świętokrzyska, Marszałkowska and Aleje Jerozolimskie streets; this area benefits from, among

others, theaters, a museum and an observation tower, which was visited by over 675,000 people in 2022.* Nearby, from the side of Marszałkowska Street, on the northern side of Plac Defilad, a new home for the Museum of Modern Art is being built, which should be ready in the second half of 2024 and will include, among others, art exhibitions, a cinema and a café. In the future, next to this investment, a new building of the Variety Theater is to be built as part of the New Centre of Warsaw project, which will connect the Palace of Culture and Science with the Old Town, creating a representative space.

Nowy Świat and its extension - Krakowskie Przedmieście - are the main communication arteries for tourists visiting Warsaw, being part of the Royal Route.

*„Turystyka w Warszawie. Raport 2022”, Capital Tourism Office

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Number of people visiting Warsaw in 2023

The share of tourists in Warsaw in the total number of visitors to Poland in 2023

Passenger traffic at airports in the Masovian Voivodship also returned to pre-pandemic levels and in 2023, over 50,000 more people used airports than in 2019. This

indicates the growing popularity of the region as an important communication and tourist hub.

4.6 mln 13%

Chart 2: Passenger traffic at airports in the Masovian Voivodship - arrivals and departures

Warsaw is one of the most frequently visited Polish cities. It was awarded by tourists from 178 countries in the European Best Destinations ranking as the best tourist destination in Europe in 2023. * Before the Covid-19 pandemic, the share of tourists in Warsaw compared to the rest of Poland was stable and amounted to as much as 11%. The pandemic changed this and in 2020 the percentage of visitors to Warsaw decreased, reflecting both restrictions on international

travel and the preference of Polish tourists to visit less crowded places. From 2021, however, there has been a gradual return to the pre pandemic trend and an increase in both the number of tourists visiting Warsaw and Warsaw’s share compared to other regions. In 2023, the number of tourists in Poland exceeded the figure from 2019 for the first time and amounted to 36.2 million.

million people

2019

2020

2021

2022

2023

* www.europeanbestdestinations.com

Source: Central Statistical Office, Masovian Regional Tourist Organization, March 2024

Chart 1: Number and share of tourists divided between Warsaw and other locations

In 2023, tourists most often came to Warsaw from Ukraine, the United States, Great Britain, Germany and Lithuania. A significant number of these visitors

came from Western Europe and the USA, i.e. from countries with high purchasing power.

100%

9% 12% 13%

11% 11% 11%

90%

80%

Chart 3: Structure of foreign tourists in Warsaw by country of permanent residence in 2023

70%

60%

Ukraine USA UK Germany Lithuania

50%

18%

89% 89% 89% 93% 91% 88% 87%

40%

38%

Number of tourists

Share of tourists (%)

30%

12%

20%

Belarus France

10%

Israel Other

2017

2018

2019

2020

2021

2022

2023

4% 5%

Share of tourists outside Warsaw

Share of tourists in Warsaw

Tourists in Warsaw

Tourists in Poland

Source: Central Statistical Office, April 2024

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

The average real disposable household income in the 8 countries whose citizens most often visit Warsaw is usually higher than for Poland overall (except Ukraine and Belarus). Citizens of the USA (over 4 times higher

than in Poland), Israel (3 times higher than in Poland) and Great Britain (2 times higher than in Poland) have the highest disposable income.

Chart 4: Average disposable income in the countries whose citizens are most likely to visit Warsaw

10% 12% 14% 16% 18% 20%

180

160

140

120

100

thousand)

0% 2% 4% 6% 8%

Average household disposable income (USD

Share in the total number of foreign tourists (%)

Share in the total number of foreign tourists Average nominal disposable income of a household Average real disposable income of a household

Source: Central Statistical Office, April 2024, Oxford Economics, March 2024

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 2: Plac Trzech Krzyży

02.

Development of the luxury goods market

Pl. Trzech Krzyży, Mysia, Bracka, Mokotowska, Vitkac

Plac Trzech Krzyży and its surroundings – Mysia, Mokotowska, Bracka Street and the Vitkac department store currently form one of the two most exclusive shopping destinations in Warsaw. The proximity of the Parliament of the Republic of Poland, the Stock Exchange, the National Museum and numerous embassies, with its preserved or reconstructed historical architecture, gives

this quarter of streets a prestige and elegant character. This is where Omega, Mont Blanc, Rolex, Ermenegildo Zegna, Carolina Herrera and Philip Plein have located their stores. The Vitkac department store has been besieged by customers of Louis Vuitton boutiques for years, and the Italian luxury goods brand, Bulgari, will soon open its first boutique in Poland.

Photo 3: Vitkac

Plac Trzech Krzyży and its surroundings – Mysia, Mokotowska, Bracka Street and the Vitkac department store currently form one of the two most exclusive shopping destinations in Warsaw.

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 4: Hotel Europejski

Pl. Teatralny, Metropolitan, Raffles, Moliera

The second important place for lovers of luxury brands is Plac Piłsudskiego with the prominent Metropolitan building offering access to the following brands: Tom Ford, Prada, Valentino, Miu Miu and Celine, as well as being the location of one of the most luxurious hotels in Warsaw, the Raffles hotel with Hermes, Brunello Cucinelii and Aston Martin. Piłsudski Square is adjacent to streets

with boutiques offering both luxurious interior accessories: Fendi Casa and Versace Home, as well as fashion from leading luxury brands: Christian Louboutin, Balmain, Manolo Blahnik, Zimmerman. All this in the vicinity of Teatralny Square, offering a variety of culinary experiences.

Piłsudski Square is adjacent to streets with boutiques offering both luxurious interior accessories, as well as fashion from leading luxury brands

Photo 5: Metropolitan

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 5: Food Town Norblina

According to the dictionary definition, a luxury good is a good for which demand grows faster than income growth.** With the observed increase in wealth over time, the group of potential consumers of luxury goods is constantly growing.

According to data from Credit Suisse***, the value of assets per adult in Poland amounted to almost PLN 53,000 USD in 2022, while 10 years earlier (2012) the corresponding value was close to 33,000 USD. Since 2018, we have observed an upward trend.

Chart 5: Wealth of an adult in Poland over the years 2000-2022

60 000

50 000

40 000

USD

30 000

20 000

10 000

Source: „Global Wealth Databook 2023”, Credit Suisse

With the observed increase in wealth over time, the group of potential consumers of luxury goods is constantly growing.

**Encyclopedia PWN ***”Global Wealth Databook 2023”

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

The percentage increase in wealth per adult in Poland in the years 2000-2022 ranked 5th among

Despite the difficult economic situation and inflation, the average personal disposable income of a Polish household in real prices has been increasing since 2021 and in 2022 it exceeded the pre-pandemic level (2019) by 0.6%. It is forecast that the upward trend will be maintained, which means that Poles’ wallets will

the 8 countries analyzed. In the years 2017-2022, the average wealth of Poles increased by 24.4%.

gradually expand. Additionally, according to GFK data, the purchasing power of Warsaw residents increased by as much as 37% between 2019 and 2023, which encourages investment and the opening new stores and restaurants in the Polish capital.

Chart 6: Percentage increase in wealth per adult in Poland and other CEE* countries in 2000-2022

500%

1200%

400%

1000%

Chart 8: Average personal disposable household income in real prices in 2016-2027

300%

800%

120 000

200%

600%

100 000

Growth in 2000-2022

100%

400%

Growth in five-year intervals

80 000

PLN

200%

60 000

-100%

40 000

20 000

2002-2007

2007-2012

2012-2017

2017-2022

2000-2022

2016 2017 2018 2019 2020 2021

2022 2023 2024F 2025F 2026F 2027F

Source: „Global Wealth Databook 2023”, Credit Suisse * (Central and Eastern Europe)

F - Forecast

Source: Oxford Economics, April 2024

The number of Polish residents with assets of at least USD 1 million calculated in liquid financial resources (so-called HNWI, High-Net-Worth Individuals) in 2022 was estimated at approximately 90,500, which was a percentage of approximately 0. 3% of Polish adults. The share of HNWI in Poland is significantly lower

than in Europe overall, where it amounted to 2.8% in 2022, but is similar to the rate of Central and Eastern European countries. Poland has the same proportion of HNWIs as Romania and Hungary, higher than Slovakia, although lower than the Czech Republic.

Table 1: Increase in purchasing power between 2019 and 2023

PURCHASING POWER PER CAPITA IN 2023 (EUR)

REGION

CHANGE 2019/2023

POLAND

10,903

43.7%

Chart 7: Wealth structure in Poland, 2022

CITY OF WARSAW

17,980

36.7%

EASTERN WARSAW

10,820

38.7%

0,3%

11,2%

23,0%

WARSAW WEST

12,912

35.7%

Source: GFK, 2023

“2024 European Investor Intentions Survey” . The inclusion of Warsaw in the top 10 markets in this study proves its economic attractiveness and investment potential. The city’s thriving business environment contributes to the number of dynamic and vibrant high streets.

Warsaw does not focus solely on meeting the needs of residents in the context of the offer of high streets. As an important business centrer in Europe, it attracts diverse consumers from different countries, including many people from Ukraine. This cosmopolitan city has gained the status of one of the best places for investors in 2024, which was confirmed by CBRE’s

below 10.000 USD

10.000-100.000 USD 100.000-1 mln USD

65,5%

above 1 mln USD (HNWI)

Source: „Global Wealth Databook 2023”, Credit Suisse

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 6: Barceló Powiśle

Photo 7: European Raffles

03. Development of prestigious hotels

With the growing number of tourists and business development, new hotel brands began to appear in Warsaw, that had not existed in Poland before:

Five-star hotels attract wealthy customers who are potential buyers of luxury goods. Additionally, they create new space in premium locations for exclusive brands.

- Barceló Powiśle

- European Raffles

- Nobu Hotel

- Hotel Verte by Marriott.

Photo 8: Nobu Hotel

Photo 9: Hotel Verte by Marriott

Five-star hotels attract wealthy customers who are potential buyers of luxury goods. Additionally, they create new space in premium locations for exclusive brands.

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 10: European Raffles

Sabina Bartyzel SVP Operations Accor Northern & Eastern Europe Sofitel Legend, Sofitel, MGallery, Emblems

“As one of the world leaders in the luxury hotel segment (Raffles, Orient Express, Banyan Tree, Fairmont, SLS, SO/, Sofitel, Rixos, MGallery), we closely observe trends in the global market, which we take into account when implementing our strategy. Recently, in today’s hotel market, we have seen significant growth in the luxury hotel category. This segment recovered the fastest after the COVID-19 pandemic and recorded the highest growth compared to 2019 compared to other segments of the hotel market, which proves its high resistance to economic fluctuations. Based on global forecasts, the middle class is expected to grow by 1.3 billion over the next 10 years, which translates into a 40% increase in spending compared to current values (tourism and hotels account for 20% of total consumption of goods in this segment). As a result, this will lead to a further positive development of the luxury hotel category. This sector is developing only slightly in Poland, but the forecasts are optimistic based on the growing appetite for luxury goods. The potential of the luxury hotel market in Poland is related to the growing importance of the country as a business and tourist destination, as well as with economic development attracting investments, which in turn affects the ongoing growth of the middle class. Further development of infrastructure and services also makes Poland more attractive to people looking for luxury experiences. In the past, luxury travel meant relaxing on the beach, a massage at the spa or a gourmet dinner. Currently, luxury travel is based on experiences and emotions - showing places in a deeper and more authentic way, based on discovering the locality and emphasizing the uniqueness of places through the prism of gastronomy and cultural attractions.

A great global example here is the Orient Express La Dolce Vita, where the planned premiere of the first train will take place in 2024, and the new trains will offer a variety of routes throughout Italy and the main capitals of Europe, reaching all the way to the gates of the Orient. In addition, Orient Express hotels are preparing to debut: Orient Express La Minerva in Rome is scheduled for 2024, and Orient Express Palazzo Donà Giovannelli is scheduled to open in 2025. Another example is Banyan Tree Al Ula - located in a desert oasis in the Ashar Valley, an eco-luxury hotel in Saudi Arabia offering a tented camp and a spa & wellness centre coexisting harmoniously with the local Bedouin community. It is worth emphasizing that luxury and sustainable development go hand in hand. For luxury travelers, consumption is becoming more conscious than ever before, so choices reflect people’s values and concern for their carbon footprint. A great example here is Fairmont Mayakoba, supporting the reproductive efforts of corals by restoring species that will help reduce CO2 emissions. And the Fairmont Mara Safari Club in Kenya provides water purification tablets to school children without access to safe drinking water. These examples reflect the changing preferences of travelers who are looking not only for luxury, but also for meaningful and culturally rich experiences during their travels, coexisting harmoniously with the natural environment.”

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 11: Pl. Zbawiciela

Al. Jerozolimskie, Marszałkowska, Świętokrzyska, Pl. Zbawiciela, Pl. Konstytucji

Aleje Jerozolimskie and Marszałkowska Street benefit as commercial destinations thanks to their strategic location - they are the most important communication arteries in Warsaw. Their shopping offer is based on every day and mid-range products. The gastronomic

offer plays an important role here - Świętokrzyska Street, Plac Konstytucji and Plac Zbawiciela are especially rich in restaurants and cafes.

Aleje Jerozolimskie and Marszałkowska Street benefit as commercial destinations thanks to their strategic location.

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 12: Plac Trzech Krzyży

04. Reconstruction of the city centre (New Centre of Warsaw)

The currently ongoing construction of the New Centre of Warsaw aims to create a new, elegant showcase of the capital, strengthening the cultural • will connect important points using sidewalks and bicycle paths, creating a coherent space and increasing the convenience for visitors; • will increase accessibility and traffic safety;

and entertainment offer and creating a space friendly to residents and tourists. Reconstruction of the centre of Warsaw: • will create more green space and places to spend free time and rest; • will revitalize older areas and increase the number of people using the wide range of services on offer.

Source: https://architektura.um.warszawa.pl/-/plac-trzech-krzyzy-1

Places subject to reconstruction:

• Plac Pięciu Rogów; • Chmielna Street; • Aleje Jerozolimskie; • Pedestrian and bicycle bridge to Praga;

• Plac Trzech Krzyży • Plac Powstańców Warszawy; • Krucza Street.

15%

The currently ongoing construction of the New Centre of Warsaw aims to create a new, elegant showcase of the capital, strengthening the cultural and entertainment offer.

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 13: Plac Pięciu Rogów

Michał Lejk Representative for the New Centre of Warsaw

”The New Centre of Warsaw project is one of the largest urban planning projects in Poland in recent years. Its goal is to comprehensively revitalize the heart of the capital, and the results of this transformation will certainly have a long-lasting impact on the quality of life of residents and the attractiveness of the city for tourists and investors. In the context of this project, it is worth paying attention to the issue of communication. Narrowing streets, introducing new green spaces and improving pedestrian infrastructure are conscious actions aimed at creating a more friendly urban space. On the other hand, it requires us, as a community, to understand and accept certain inconveniences. Additionally, it is worth emphasizing that the vision of the future of the centre of Warsaw is not limited only to attracting international luxury brands. An equally important goal is to revitalize high streets by supporting local craftsmen and creators. They are the ones who give the city its authenticity and uniqueness. The revitalization of Plac Pięciu Rogów is the beginning of significant changes in the structure of the central part of Warsaw. In 2024, we can expect the completion of works on Chmielna and Bracka streets, and the next year the modernization of Krucza street is expected to be completed. Next, Złota and Zgody streets are planned. These ambitions regarding urban infrastructure mean that the capital of Poland will undergo dynamic changes in the coming years.

The key is that the City is open and innovative when it comes to shaping new spaces. It realizes that raising standards and achieving the intended goals is only possible thanks to close cooperation with real estate experts who operate in this market on a daily basis. Their experience, knowledge and understanding of market dynamics are invaluable in the process of planning and implementing these types of projects. Moreover, the City plans to use advanced simulation models to analyze the potential effects of the introduced changes. These types of tools, using the latest technological achievements, can significantly facilitate the decision-making process, enabling the prediction of various scenarios and the identification of possible problems before they occur. In the context of the development strategy of commercial zones, it is worth paying attention to the Business Improvement District model, used successfully in many developed European countries. This approach of funding improvements within a specific area through local businesses can be an effective way to maintain a high-quality public realm and promote economic development. To sum up, the New Centre of Warsaw project is an ambitious undertaking that has the potential to transform the capital into a modern, resident friendly and attractive city for investors, and will also strengthen Warsaw’s position on the map of interesting destinations for weekend and shopping tourism.”

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Location for new brands and flagship stores 05.

Zamek Królewski

K r a kow sk i e P r

M o li e ra

z edm i e ś c i e

Wi s ł a

Pałac Prezydencki

Uniwersytet Warszawski Krakowskie Przedmieści e

Elektrownia Powiśle

M a r s z a ł kow sk a

No w y Św i a t

Warsaw’s high streets are an excellent place for the development of new brands, attracting both those that are just wanting to enter the Polish market and already established ones that want to open their

flagship stores in Poland. Thanks to their enormous popularity, they offer excellent conditions for development and success.

Browary Warszawskie

Fabryka Norblina

Pałac Kultury i Nauki

B r ac k a

N o wy Ś wia t

M ys i a

Złote Tarasy

B r ac k a

Table 2: Examples of retail chains that debuted on the shopping street

Plac Trzech Krzyży

Dworzec Centralny

RETAILER

SECTOR

COUNTRY OF ORIGIN YEAR OF ENTRY PROJECT

7 10

Pozn a ńs k a

1. CORNELIANI

FASHION

ITALY

2019

ETHOS

2. HERMES

ACCESSORIES & JEWELLERY FRANCE

2019

EUROPEAN HOTEL

M a r s z a ł kow sk a

3. AMERICAN VINTAGE

FASHION

FRANCE

2020

POWISLE POWER PLANT

M oko towska

P ię k n a

4. URBAN OUTFITTERS

FASHION

USA

2020

POWISLE POWER PLANT

K o s z yk o w a

5. CARL HANSEN & SON

HOMEWARE

DENMARK

2020

HOTEL WARSAW

K oszy k o w a

Plac Konstytucji

Hala Koszyki

K o s z y ko wa

6. BRUNELLO CUCINELLI

FASHION

ITALY

2020

EUROPEAN HOTEL

Politechnika Warszawska

7. PHILIPP PLEIN

FASHION

GERMANY

2021

PLAC TRZECH KRZYŻY 3/4

Plac Zbawiciela

8. UNIQLO

FASHION

JAPAN

2022

WSJ

M o ko t o w s k a

Łazienki Królewskie

9. MAISON SISLEY

HEALTH & BEAUTY

FRANCE

2023

MOKOTOWSKA 57

10. SANTONI

FASHION

ITALY

2023

THREE CROSSES SQUARE

M a r s z a ł kow sk a

11. KARTELL

FURNITURE

ITALY

2024

ETHOS

Source: CBRE Research

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

06.

Zamek Królewski

K r a kow sk i e P r

Gastronomic offer

z edm i e ś c i e

Wi s ł a

Pałac Prezydencki

Plac Teatralny

Uniwersytet Warszawski Krakowskie Przedmieści e

Elektrownia Powiśle

No w y Św i a t

Poznańska, Hoża, Piękna, Krucza

Ś wi ęt o k r z yska

Browary Warszawskie

G rz y b o ws ka

Św i ę tok r zys k a

Poznańska, Hoża, Piękna and Krucza streets stand out from others with their unique, non-chain gastronomic offer, as well as a significant number

of small private businesses and services. It is in these locations that bar and hipster concepts have made their presence felt.

Fabryka Norblina

C h m i e l n a

Pałac Kultury i Nauki

Ch m ie l n a

N o wy Ś wia t

Złote Tarasy

K r u c z a

Photo 14: Poznańska

Dworzec Centralny

Pozn a ńs k a

H o ża

K r u c z a

K o s z yk o w a

K oszy k o w a

Hala Koszyki

K o s z y ko wa

Politechnika Warszawska

Łazienki Królewskie

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Photo 15: L’Osteria

Karolina Kunciak Associate Director, A&T Retail, CBRE

“Warsaw is home to many small, private local businesses that offer modern and innovative

since the pandemic. More and more kitchens are rented in the Dark Kitchen concept, where several catering concepts can operate in one large premises. This means concept owners save money and customers have more choice at affordable prices. New high-standard buildings, with good access to parking spaces and heavy pedestrian traffic, are attractive locations for restaurants. The surroundings are also an important aspect - greenery and easy access by public transport. The idea of a 15-minute city and mixed-use projects additionally facilitate the development of the catering industry on Warsaw’s high streets.”

culinary propositions. The plate offer has become a fashionable trend, enabling customers to taste various dishes in the company of friends. This solution is gaining popularity, especially in places such as Plac Pięciu Rogów, where the dynamic exchange of tenants brings fresh and creative gastronomic concepts. Streets such as Nowy Świat and the area around the Old Town are home to a variety of culinary offerings that attract both tourists and residents of the capital. Warsaw’s gastronomic offer is rich, and after the pandemic we are observing its significant growth and reconstruction. New players on the market include both chain restaurants and unique, private concepts, including many proposals from Ukraine. It is also worth noting that new Western catering concepts have also started to enter Poland and are looking for places to develop their business in these locations. The latest trend in the catering industry is the maximum use of the premises 24 hours a day, combining the concept of breakfast, lunch and evening. This is how the establishments make money from morning until late at night. Interest in canteens in office buildings also increased after the downtime caused by the pandemic. More and more employees are returning to offices, and employers are starting to notice the need for canteens in workplaces.

Online deliveries have also become a revolution in the gastronomy industry and have become more popular

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 16: Fabryka Norblina

Fabryka Norblina, Browary Warszawskie, Hala Koszyki, Elektrownia Powiśle

Fabryka Norblina, Browary Warszawskie, Hala Koszyki and Elektrownia Powiśle are just some of the unique places in Warsaw that perfectly combine gastronomic offers and various forms of spending time. These places are not only offering delicious food, but also informal food hall-style spaces where you can enjoy delicacies from around the world. However, that’s not all - each of these places also has a unique character and offers various seasonal events that attract both residents and tourists.

One of the key aspects of these projects is their city-forming function. The opening of such places transforms the area, attracts new residents and creates communities. Thanks to the diversity of the offer, these places become a meeting point for people with different interests and lifestyles. Projects such as Fabryka Norblina, Browary Warszawskie, Hala Koszyki and Elektrownia Powiśle perfectly follow current social trends. They address the needs and preferences of modern consumers who expect not only high quality food, but also unique experiences and atmosphere.

Photo 17: Browary Warszawskie

Fabryka Norblina, Browary Warszawskie, Hala Koszyki and Elektrownia Powiśle are just some of the unique places in Warsaw that perfectly combine gastronomic offers and various forms of spending time.

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 18: Hala Koszyki

What distinguishes these places is the combination of various functions in one design. In addition to catering spaces, there are also offices, sometimes apartments and places for entertainment and spending free time. This makes these places come alive all day long, attracting both professionals who work there and people looking for entertainment and relaxation.

Moreover, the projects mentioned above are just the beginning. More innovative places in Warsaw that will continue this trend are already being planned. The city is constantly developing and adapting to the needs of residents and tourists, creating spaces that integrate the community while offering various opportunities to spend free time.

•  Fabryka Norblina •  Browary Warszawskie

•  Hala Koszyki •  Elektrownia Powiśle

In addition to catering spaces, there are also offices, sometimes apartments and places for entertainment and spending free time.

Photo 19: Elektrownia Powiśle

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Photo 20: Kaiser Patisserie

07.

Rents

Rents in Warsaw vary greatly and depend on the location and nature of the place as well as the technical capabilities of the premises. There are huge differences in the rent ranges offered for commercial premises on the market. For example, in prestigious places such as Plac Trzech Krzyży or Nowy Świat, rents can range from EUR 50 to EUR 85 per square meter per month, depending on the size of the premises. These locations often contain high-standard and luxury premises, which translates into higher rental costs (with smaller premises often achieving higher rents). Other popular streets such as Krakowskie Przedmieście and Marszałkowska also have high rents. For example, the rent for a premises with an area of 150 sq m can be as much as EUR 120 per square meter per month, while on Marszałkowska Street you have to take into account the rent of approximately EUR 80 per square meter per month (premises with an area of approx. 100 sq m).

For smaller premises in the centre, prices can range up to EUR 150-180 per square meter.

However, please remember that rents may vary depending on the ownership structure, standard of the premises, size and type of lease. Therefore, the average rent for the entire street should not be clearly determined, because each premises may have a different rental cost due to their different nature. The rental of catering premises in Warsaw is determined on the basis of various factors. To remain profitable, it is recommended that the rent does not exceed 35-40 euros per square meter. However, there may be exceptions, especially for privately owned local restaurants. It all depends on the business idea and the business plan of the concept owner.

Photo 21: Paros

Rents in Warsaw vary greatly and depend on the location and nature of the place as well as the technical capabilities of the premises.

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

08.

Summary

1. Despite the disruptions caused by the Covid-19 pandemic, tourism in Warsaw has been gradually recovering since 2021. Additionally, the capital of Poland was recognized as the best tourist destination in Europe in 2023 in the European Best Destinations ranking. 2. The growing purchasing power of Warsaw’s inhabitants and its status as a business centre make it an attractive place to invest. 3. The luxury hotel sector has demonstrated high resilience and significant growth following the COVID-19 pandemic. 4. The New City Centre project in Warsaw aims to revitalize the heart of the city, improving its cultural, entertainment and service offer. 5. Unique places in Warsaw offer interesting gastronomic offers and various ways of spending time, attracting both residents and tourists. 6. We are observing the growth and reconstruction of the diverse gastronomic offer in Warsaw, and new players are emerging, including restaurant chains and unique, private concepts. 7. Rental prices in Warsaw vary depending on the location, the nature of the place, the type of rental, as well as the standard, size and technical capabilities of the premises.

Challenges and proposed solutions:

well-thought-out, consistent rental, and the function of a street manager

creating a commercial destination with a diversified, complementary offer

pedestrian-friendly trails, parking spaces for motorists, creation of places for charging electric vehicles

convenient access by various means of public and private transport

energy space integrating the community: consumers, entrepreneurs, public entities, associations

working together in the common interest

projects implemented under PPP (Private-Public Partnerships), increasing the number of buildings in the hands of institutional entities.

lack of sufficiently large premises

HIGH STREETS IN WARSAW | DISCOVER THE POTENTIAL OF HIGH STREETS IN WARSAW

Contact

Mariusz Majkowski Head of A&T Retail mariusz.majkowski@cbre.com

Katarzyna Gajewska Research Associate Director katarzyna.gajewska@cbre.com

Magdalena Kozińska Head of A&T Occupier Retail Leasing magdalena.kozinska@cbre.com Karolina Kunciak A&T Associate Director karolina.kunciak@cbre.com Julia Czapla Research Associate Consultant julia.czapla@cbre.com

Monika Kulawińska Associate Director, Investment Properties monika.kulawinska@cbre.com Joanna Mroczek Head of Strategic Consultancy & ESG joanna.mroczek@cbre.com

Piotr Karpiński Senior Director, Head of PM piotr.karpinski@cbre.com

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