According to data from global real estate services firm Cushman & Wakefield, Lublin is the leading Polish city in terms of retail space saturation for schemes exceeding 5,000 sq m. Its space saturation rate is 1,094 sq m per 1,000 inhabitants compared to 831 sq m for Warsaw – the most mature retail market in Poland. Paradoxically, this does not preclude further growth for developers active in this market. There is still room in the city for traditional retail parks that are developed in alternative locations - frequently on the outskirts – and are anchored by tenants offering convenience shopping geared to the day-to-day needs of inhabitants.
Compared with Warsaw, Krakow and Wrocław, Lublin has a higher percentage of shopping centre floorspace hovering around 72%. For example, that of Warsaw is 62%. It is notable, however, that the Polish retail market has experienced a process of diversification in recent years. Many developers began to target smaller retail formats in non-central locations, thereby catering to the daily shopping needs of consumers. This is also a likely growth scenario for the Lublin retail market,
comments Ewelina Staruch, Analyst, Consulting and Research, Cushman & Wakefield.
According to publicly available information, there are no new retail projects sized over 5,000 sq m planned for delivery in Lublin in the coming years. The most recent completion is Węglin Retail Park, with most of its stores now operating and retailers including Aldi, Pepco, Dealz and Rossmann. Other stores to open soon include Komfort and King Zoo. Its GLA is 10,600 sq m. Węglin Park has joined the ranks of Lublin’s three other existing retail parks,
adds Ewelina Staruch.
As Eastern Poland continues to grow, developers should focus more strongly on expanding their portfolios there, primarily on building alternative retail formats – not necessarily only in such cities as Lublin, Białystok or Rzeszów, but also in smaller towns. This will also be aligned with the increasingly growing concept of 15-minute cities and the trend towards convenience shopping close to where consumers live,
concludes Michał Masztakowski, Leasing Team Manager, Cushman & Wakefield, Cushman & Wakefield.
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Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.