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Who doesn't remember the "explosion" onto the scene of the first Hungarian shopping and entertainment centres, Duna Plaza and Pólus Center, and the similar establishments that followed them and have been the most successful so far: the building of Westend, Mammut and Árkád. Their success can be attributed in most part to the introduction of a new kind of shopping experience to Hungarians, along with their offerings of entertainment, popular brands and quality services. Since then, a new generation of plazas have been built, and the increasing competition is forcing the management of even the most successful establishments to rethink whether there is a need to develop or expand, or otherwise "shake up" the size of shops, rent structure, the services offered, or the tenant mix.
Choosing the time of a renovation or repositioning is not a question of the building's age, but of opportunities, Anita Csörgő, the head of the retail division at Colliers told NAPI Real Estate. She believes the right time for this is when the leases run out, when decisions on bigger changes, a repositioning, or further developments can be made, because until then, management is committed to its tenants. Of course, the owner's management has to examine the establishment's operations and profitability already after a few years of operation, because this much time is needed for a start-up shopping centre or hypermarket to "get settled." In this run-up period, "weaker" tenants should be helped, for example with lower rents or discounts, in order to strengthen them.
So which establishments are expected to be expanded in the next one or two years? WestEnd City Center, Europark and Árkád can all be found on the list. The latter, for example, which is one of the more successful shopping centres, will see its total area expand to more than 50 thousand square metres by 2010, and in line with tenant needs, will also include several larger, 2000-3000 square metre retail spaces, in addition to the smaller 100-150 square metre shops.
