According to the latest data from global real estate services firm Cushman & Wakefield, the average retail vacancy rate in Poland’s largest cities currently stands at 3.5%, down by 1.2 pp year-on-year. More importantly, falls were recorded in six out of the eight largest cities, with the availability of retail space at the lowest in Krakow, Łódź and Szczecin. This suggests a gradual retail recovery in Poland, says Cushman & Wakefield. Meanwhile, as the market continues to stabilize, retail landlords should increasingly turn their focus onto diversifying their offer.
The lowest retail vacancy rate of 1.5% is in Krakow, down from 1.9% in 2022. Interestingly enough, the retail availability rate for Łódź stands at 1.8%, down from last year’s 4.1%. Szczecin is in third place with only 2% its retail stock being vacant, representing a decrease of 2.6 pp year-on-year,
comments Ewa Derlatka-Chilewicz, Head of Research, Cushman & Wakefield.
Falling vacancy rates are undoubtedly one of the key commercial property market metrics reflecting a situation in each segment. Retail landlords should not, however, let themselves be beguiled by these lower figures. As the market situation calms down, this presents a good opportunity to review shopping centre sales and marketing strategies. According to one of our latest surveys into the needs of shopping centre customers, a large choice of retail stores is key to 69% of buyers while F&B outlets are important for 38%. This illustrates how vital it is to reexamine a tenant-mix so that shopping centres better address changing consumer trends,
adds Ewa Derlatka-Chilewicz.
About Cushman & Wakefield
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.