Saturday, 18 October 2025
Europe’s automotive sector is undergoing structural change, and car dealerships are increasingly adapting their real estate strategies to keep pace. Driven by the rise of electric vehicles, new retail models, and growing competition from Chinese automakers, distributors and investors are reassessing how and where they operate.
The transformation is clearly visible in Poland, where Zdunek Premium, a BMW dealer, has announced plans to open a new showroom and service center on Jagiellońska Street in Warsaw, on the site of the former FSO factory, now redeveloped by OKAM as the F.S.O. Park. The new location will include sales areas, a service center, a paint shop, and parts facilities, covering more than 3,700 square meters of service area and 2,200 square meters of yard space, according to OKAM.
The project is seen as an example of how developers and automotive distributors are collaborating to secure modern, adaptable properties that combine visibility with strong transport access. Industry advisors, including Walter Herz, highlight that such partnerships are increasingly critical as dealerships look for sites that support efficient logistics and align with evolving brand standards.
At the same time, the role of traditional showrooms is changing across Europe. A growing number of automotive retailers are reducing their real estate footprint and reconfiguring their networks to meet shifting consumer expectations. Online car purchases, the growing popularity of direct manufacturer sales, and rising property and energy costs are prompting dealers to rethink large-scale, high-cost facilities.
In the United Kingdom, a Colliers report notes that many dealers are downsizing or repurposing showrooms, focusing instead on hybrid spaces that combine display, service, and delivery functions. In Poland, industry events such as the 2025 Dealer Kongres highlighted that dealers face thinner margins and tighter cost structures, making operational precision and location strategy key to survival.
Elsewhere in Europe, manufacturers themselves are revisiting their distribution models. Stellantis recently paused its plan to move to an agency sales model, which would have dramatically reduced the role and size of traditional dealerships, after pushback from dealers across the continent. Analysts at the Delors Centre say that these tensions underscore a broader structural shift, as carmakers and dealers compete to define how the future sales model will work in an era of electrification and direct-to-consumer platforms.
Competition from Chinese automakers adds another layer of urgency. Brands such as BYD, MG, and NIO are expanding across Europe, often with smaller, more flexible retail networks and aggressive pricing strategies. Their growth has prompted traditional European dealers to modernize showrooms, relocate to higher-traffic areas, or even convert old properties to new uses such as housing or mixed-use developments.
According to Emil Domeracki, Partner at Walter Herz, this trend extends beyond the automotive sector: “We are seeing more cases where dealerships are being repurposed or relocated to optimize value. It’s not just about cars anymore — it’s about unlocking capital and adapting to new consumer behavior.”
For Zdunek Premium and BMW, the new Warsaw facility symbolizes this broader shift — a move toward smarter, more sustainable operations designed to balance customer experience with operational efficiency. The combination of adaptable space, strong location, and flexible lease structures shows how real estate strategy is becoming a central part of the automotive industry’s transformation in Europe.
Photo: Emil Domeracki – Walter Herz
