The transformation of the automotive market is accelerating

The groundbreaking shifts currently taking place in the automotive industry are clearly reflected in the new strategy of Zdunek Premium — a BMW dealer in Poland — focused on showroom development and location.

The growth of electromobility, shifting consumer purchasing preferences, and the global expansion of Chinese manufacturers are driving the automotive sector to fundamentally rethink its market presence. Strategic importance is increasingly placed on optimizing showroom locations, transforming dealership formats, and managing real estate assets efficiently. Sound decisions in these areas are becoming a key factor in building a competitive advantage in the new market reality.

BMW sets up operations at the former FSO factory in Warsaw

The project being developed on Jagiellońska Street in Warsaw, on land owned by Okam, is a prime example of effective collaboration between a developer and a premium automotive distributor. Zdunek Premium, an official BMW dealer in Poland, will launch a showroom and service center at the former FSO site, which will include a paint shop and a parts sales point. Advisors from Walter Herz emphasize that a key factor in the process was the attractive location along the city’s main thoroughfares, offering extensive visibility for the showroom and technical specifications that allowed the space to be adapted to the brand’s high standards. Another important success factor was the flexible lease agreement, covering several thousand square meters of service and logistics space, which secured the interests of both the investor and the landlord.

Representatives of the investor emphasize that, when it comes to car showrooms, it's not only the attractive location that matters, but also the technical specifications of the buildings, their surroundings, and access to infrastructure that enables efficient logistics. These factors have a direct impact on customer experience and brand perception. The project on Jagiellońska Street in Warsaw confirms that well-prepared and well-executed real estate processes can effectively support the competitiveness of automotive brands in key retail locations.

Changing dynamics in the industry

Evolving consumer expectations — including the rise of online purchases, greater emphasis on test drives and service, and a reduced need for comprehensive showroom displays — along with the rising costs of maintaining large facilities, are prompting automotive networks to rethink their approach to real estate management.

More and more often, companies are considering converting traditional showrooms for alternative uses and relocating them to sites that offer greater sales potential. This approach enables the release of capital previously tied up in real estate assets.

-As part of our Land Development services, we also search for land on behalf of other automotive brands, supporting them in strategically securing optimal locations for their showrooms. We are observing a strong market trend involving the repurposing of existing car dealerships — transforming them into residential projects, for example, or relocating them to new sites that offer greater sales potential. This enables distribution networks to unlock capital, increase operational flexibility, and respond more effectively to changing market conditions. Asset management optimization is also increasingly relevant for other sectors with properties located in major urban areas – says Emil Domeracki, Partner and Board Member at Walter Herz’s Land Development Advisory.

Competition from China is revolutionizing automotive brand strategies

New players from China entering Europe with aggressive pricing strategies and a flexible approach to location currently represent one of the biggest challenges for the automotive industry, forcing traditional distributors to respond more quickly. As a result, we are witnessing growing demand for prime locations and facilities that offer optimal showroom visibility and service capabilities.

In the rapidly changing market environment, real estate management is becoming a strategic element of management in the automotive sector. Dealership networks face the need to flexibly combine showroom relocations and the construction of new premises with repurposing existing facilities into more profitable functions, including through property sales.

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The transformation of the automotive market is accelerating

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