Savills still expects a focus on secondary and tertiary cities over the next 36 months, with activity in larger cities targeting retail parks and smaller convenience centres. Development of modern department stores and high street retailing will probably not accelerate until 2012, when 120 projects are due for completion to add three million square meters of modern retail floor space. The majority of these projects are planned for secondary and tertiary cities.

Demand for modern retail floor space has shrunk over the past 12 months, but "there are retailers, in particular low- and mid-range sectors, who are still expanding their chains and getting benefits from lower rental levels and larger incentives offered by landlords. Over 65% of current supply is focused around the eight largest agglomerations, and so the secondary and tertiary areas hold opportunities when the economy improves, says Savills Poland research and development consultant Michal Stepien.

Savills research notes a slight increase in average vacancy rates in Poland over the last 12 months, but overall vacancy rates in major regional cities still remain below 5%. A slowdown in the economy and the depreciation of the Polish zloty has been evident but nevertheless rents remain stable, with declines mostly in secondary locations and older projects. Prime rents in Warsaw are at €60 to €85 per square meter per month, and in regional cities, at €40- to €60 per square meter per month.