Saturday, 15 March 2025
The demand for new shopping park developments in Slovakia is being driven by a convergence of factors, according to Miroslav Tavel, Managing Partner at OPC Holding in an exclusive CIJ EUROPE interview. As the first wave of retail parks in the country approaches the 12- to 15-year mark, many tenants are seeking to relocate due to outdated store concepts. Additionally, a new influx of tenants entering the market is contributing to the growing demand. Tavel notes that Retail Parks offer significantly better commercial conditions for tenants compared to traditional shopping centers, with many retailers focusing on discounted goods that attract a price-sensitive customer base.
When selecting locations for new shopping parks, OPC Holding takes a comprehensive approach. The company analyzes existing retail projects in the area to assess competition, as well as the city’s development plans from a residential perspective. By evaluating tenant interest, OPC Holding identifies regions with the most potential for retail park growth. Currently, Tavel highlights that the eastern part of Slovakia is showing the most promise for future developments.
OPC Holding is committed to designing Retail Parks that harmoniously integrate with their surroundings. Tavel emphasizes the importance of visibility from major roads, convenient parking, and an efficient internal road system. The company also engages closely with tenants to ensure a diverse tenant mix, providing customers with a wide variety of goods. This strategic approach aims to avoid saturating individual parks with multiple retailers offering similar products.
Despite the rise of e-commerce, Tavel asserts that foot traffic and sales performance at their Retail Parks have remained strong. Many tenants continue to report higher turnover within their stores. He attributes this resilience to the conservative shopping habits of Slovak consumers, who often prefer to visit stores in person to “touch and feel” products. Tavel suggests that any future changes in retail space usage will likely involve reducing sales areas while increasing storage space.
Incorporating sustainability and energy efficiency into developments is a priority for OPC Holding. Each new building features elements such as green roofs, photovoltaic systems, rain gardens, and heat pumps, with the aim of achieving a BREEAM Very Good rating for sustainability.
Tavel acknowledges that the Slovak retail market may soon face saturation, leading to a potential slowdown in new construction. He also notes that tenant consolidation may occur as the market becomes crowded with similar goods. Additionally, the economic landscape in Central and Eastern Europe, coupled with domestic political factors, could influence foreign investment in Slovakia.
As consumer behavior evolves, Tavel anticipates that Retail Parks will increasingly cater to everyday needs, while shopping centers may shift their focus to high-end goods and leisure activities. Despite the pressures from e-commerce, he believes retail parks will remain sustainable from an operational standpoint.
OPC Holding is currently progressing on nine Retail Parks projects at various stages of development, from permitting to construction, demonstrating its commitment to expanding its footprint in Slovakia’s retail market.
Foreign investment continues to accelerate the pace of expansion in Slovakia’s retail sector. Tavel points out that foreign equity plays a critical role in driving new projects, particularly in a market where domestic equity products are limited and do not fully meet investor needs. Foreign capital is often more accessible, providing advantageous interest rates and larger volumes for development.
Tavel notes that regulatory processes, such as the Environmental Impact Assessment (EIA), land acquisition from the Slovak Land Fund, and new infrastructure connections, can significantly delay projects. These factors can extend timelines by a year or longer. Additionally, potential changes in taxation could affect future developments, although the full implications remain to be seen.
As OPC Holding navigates these challenges, it remains poised to capitalize on the growing demand for Retail Parks in Slovakia, reinforcing its position in the evolving retail landscape.
Source: ©CIJ EUROPE
