Retail park or shopping center? Before the start of the coronavirus pandemic, the emphasis was definitely on malls. The investment was considered profitable, since such centers are built within the city, where there is easy access not only by car, but also by public transport. The landlords managed to attract the famous fashion brands from the main shopping streets of Sofia and larger cities, and the latter saw an excellent opportunity in having a store in the mall and having customers come to them themselves.
After the pandemic, however, the market literally turned in such a way that investing in a retail park turned out to be far more profitable than investing in a shopping center. The reason is largely due to two factors – development of online commerce and the desire to combine shopping with a short walk in the countryside or outside the big city.
For investors, investing in a retail park compared to a shopping center is many times more optimal - there are lower construction costs, and the efficiency is far higher than in a mall. The only condition is to find a large enough plot of land, and choosing one outside the central city areas and beyond the Ring Road of large cities is sufficiently satisfactory for the needs of large entrepreneurs.
Among the main advantages of retail parks, built mainly as open structures with separate entrances for each site, is that they do not require expensive air conditioning, complex logistics or maintenance of common spaces. This leads to lower operating costs and a faster return on investment, especially compared to indoor shopping centers, where energy and management costs are a significant expense.
A similar format is also beneficial for the customers themselves, who are already looking for quick and convenient shopping, without unnecessary time spent on tours of floors and shop windows. This behavior model, especially strengthened after the pandemic, fits perfectly into the concept of the retail park.
Last but not least, retail parks offer easy access by car. Free parking, the possibility of "quick shopping" and the lack of crowds of people in one place make these sites more suitable for the modern consumer, who values time and convenience more than the emotional experience of shopping.
2023 was the year of retail parks. At that time, as many as 11 were opened in Bulgaria with an impressive 501,500 sq m. The dynamics continued in 2024 with 4 newly opened parks. It seems that in 2025 the dynamics of the previous 2 years will continue.
Proof of this is that one investor - Park Lane Developments and Mitiska REIM are already building three retail parks - two in Sofia and one in Varna. This one in the Sea Capital is the company's first park outside the capital. A plot was selected in a rapidly developing residential neighborhood, between two densely populated areas - “Kaisieva Gradina“ and “Vladislav Varnenchik“. Over 150,000 people live in the area within a 10-minute drive of the retail park.
Estrea Park will have a total built-up area of the retail units of over 10,000 sq m and over 230 parking spaces. The park will offer its visitors shops in various categories - fashion, home goods, drugstore, pet store, optics, pharmacy, catering and fitness center.
Like all retail parks, this one will have a main tenant - a large food chain. The facility will have a gross floor area of 2,300 sq m.
“With Estrea Park Varna, we are starting our expansion outside the capital. We believe that with the support of Mitiska REIM and EBRD, we will create a modern, convenient and sustainable place for shopping in one of the most dynamic cities in the country“, shared Tanya Koseva-Boshova, Managing Partner, Park Lane Developments.
Similar to the facilities in the capital, the one in Varna will be certified according to the BREEAM standard. Environmental protection is a priority for the investor. The parking spaces will be landscaped, tall trees are planned in designated areas, charging stations for electric vehicles and bicycle sectors.
Park Lane Developments and Mitiska REIM will definitely work in the retail park segment in the coming years. The plans are to open at least 10 such parks in Bulgaria under the Estrea Park brand. Their projects are based on the concept of convenient shopping in densely populated urban areas with easy access, large free parking, diverse retailers offering a wide range of products and services, with a large grocery chain as the key tenant.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen HERE