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News Release

Prague

Many new mono-brand luxury fashion stores opening this year on Pařížská


​Prague, 16 October 2013 — In the first half of 2013, a total of six retail schemes with approximately 71,000 sqm of leasable area were delivered to the Czech market: retail park Špitálské Předměstí in Jihlava, OC Letmo in Brno’s city centre, the first phase of H-Park Brno, located on the outskirts of the city, Vendo Park in Roudnice nad Labem and the first phase of Retail Park Borská Pole in Pilsen. The most significant opening was the completion of Centrum Černý Most’s extension in Prague. Centrum Černý Most with 169 shop units and nearly 3,200 parking places became one of the largest shopping centres in the Czech Republic. Its total size exceeds 81,000 sqm.


“Currently, there are more than 210,000 sqm of new retail schemes under construction, predominantly in shopping centres,” says Filip Kolmer, Senior Retail Consultant at Jones Lang LaSalle. The largest portion of space is being prepared in the Ústecký region (32% of total space under construction in four projects), Prague (29% in five projects) and the Olomouc region (27% in three projects).


In the second half of 2013, approximately 110,000 sqm of new shopping centres, 2,500 sqm in retail parks and 9,500 sqm in reconstructed department stores should be delivered to the Czech retail market. The major schemes to be completed in the remainder of 2013 are: Galerie Šantovka in Olomouc (46,000 sqm), OC Fontána in Teplice (18,000 sqm) and OC Krakov in Prague 8 (13,800 sqm).


“Although the Czech Republic remains the 2nd most sought after market in CEE after Poland, the retail demand since the beginning of the year has been very volatile. Both newcomers and established brands are concentrating on Prague, focusing not only on leading shopping centres but, also on high street locations in the city centre. The Golden Cross, along with Pařížská Street, remain high on the list amongst retailers, both established or those entering the market. The mainstream brands are actively seeking to secure space along Na Příkopě Street or the lower part of Václavské Náměstí , whilst the luxury labels remain faithful to Pařížská and its immediate vicinity,” adds Sylvie Samadi, Head of Retail for the Czech Republic and Slovakia at Jones Lang LaSalle.


New shops on Na Příkopě and Pařížská Streets
Amongst the brands that have recently opened their stores along Na Příkopě Street are Bershka in one of the most prominent locations close to the junction of Václavské náměstí and Na Příkopě and Deichmann footwear, that has opened their flagship store of more than 500 sqm. Zara have completed a refurbishment of their flagship store on the corner of Na Příkopě and Havířská street to their newest concept. Harmont & Blaine, premium Italian fashion brand, are just finalizing their store on 28. října Street, which forms an extension of Na Příkopě Street towards Národní třída.


Pařížská is also undergoing significant changes this year with many new mono-brand luxury fashion stores opening this year, or are intensively searching for suitable premises along the street, or its immediate surroundings. The new openings on Pařížská Street include: Jimmy Choo and Zenith, with Just Cavalli opening on Široká Street. Burberry have also finished a reconstruction and enlargement of their store at Pařížská 11.


Rental levels
Rental levels in shopping centres vary significantly, depending mainly on the location as one factor. When talking about prime rents in each location, this is only applicable to a few units in the best shopping centre. Prime shopping centre rents in Prague remain at a level of €95 sqm / per month (for a 100 sqm unit). Prime High street rents in Prague are stable at a level of €180 sqm / per month. However, demand levels, combined with an undersupply of suitable space, are in favour of a rental increase.