Operating cost growth in shopping centres has slowed down, but the market is facing new challenges. International advisory firm Cushman & Wakefield indicates that investments in technology and sustainability will be key to maintaining the competitiveness of existing properties.
Sharp increases in energy prices and inflation have significantly impacted the day-to-day operations of retail properties. According to Cushman & Wakefield, between 2019 and 2024, service charge budgets in shopping centres managed by the firm in Poland rose by an average of 45%. Today, cost levels are beginning to stabilise, but property owners and managers now face new and potentially more serious challenges.
"Purchasing energy is no longer a straightforward process of contracting a supplier; it now requires a well-thought-out strategy and thorough demand analysis. Additionally, to maintain budget security, the use of smart solutions for monitoring utility consumption has become increasingly important. "According to our estimates, reducing the contracted power level can generate savings of several tens of thousands of zlotys per year. Thanks to this approach, despite the challenging economic environment, we have managed to limit the increase in budgets for 2025 to 5.7% compared to the previous year," emphasises Paulina Bauer, Head of Retail Asset Services Poland at Cushman & Wakefield.
A shift in tenants' approach to shared costs is also an interesting trend. Instead of the standard settlement in PLN per square metre, fixed lump sums are increasingly being negotiated. This changes the way shopping centre budgets are managed and requires even greater flexibility from property owners when calculating property values.
Locality matters
The expert highlights differences in operating costs across local markets. Proximity to large cities such as Warsaw significantly reduces the cost of services and maintenance for shopping centres.
"Where the local market is well developed, there are greater opportunities for cost optimisation. In less urbanised areas, the need to services translates into higher prices. Therefore, investors looking for land to develop new retail projects should carefully analyse how a given location performs in terms of access to essential services for operating such facilities," explains Paulina Bauer.
ESG and new technologies in the spotlight
The energy transition and ESG requirements are increasingly pushing property owners to invest in building modernisation from upgrading lighting to installing photovoltaic systems. This approach is especially important as sustainable development investments are a key factor considered by banks financing retail properties. When assessing projects in this sector, banks examine energy efficiency, ESG strategy, and decarbonisation plans particularly for older buildings. Notably, according to Cushman & Wakefield, a significant share 71% of retail space in Poland is located in properties over 10 years old.
"Funds and other entities looking to invest capital are searching for assets with value growth potential something the market increasingly sees in energy-saving solutions that meet ever-stricter environmental and health standards," explains Mira Kantor-Pikus, Partner, Equity, Debt & Alternative Investments, Capital Markets, Cushman & Wakefield.
Therefore, while investments in photovoltaics or energy management systems may not pay off in the short term, their importance in long-term strategy is growing. At the same time, the market must prepare for the need for deep technological transformation.
"Without investing in new technologies, property owners risk their assets falling out of the market. It is already clear that those unprepared for the digital revolution will face difficult decisions about reconstruction, reformatting, or even demolition of their investments", says Paulina Bauer.
Meanwhile, Julia Faltus-James, ESG Services Manager at Cushman & Wakefield, highlights the modernisation challenges in the context of reducing energy demand:
"Modernisation solutions that could significantly improve the energy efficiency of facilities can be difficult to implement for shopping centres. For example, thermal retrofitting may, in some cases, require a costly temporary closure of the property, which makes operational optimisation efforts more desirable. The extent of the energy demand issue for shopping centres is illustrated by data from the Deepki ESG Index, which shows that in 2024, the average primary energy consumption for retail properties in Europe reached 377 kWhPE/sqm higher than in the hotel sector (365 kWhPE/sqm) and healthcare facilities (304 kWhPE/sqm),"concludes Julia Faltus-James.