02 february 2022
Lublin is the ninth most populated city in Poland and the fastest growing metropolitan area in Eastern Poland. It has become known for its exponential growth in social and economic terms, which has propelled it to the top Polish cities in which to live and do business. Lublin also stands out in the entire CEE region for its remarkable potential.
Lublin, the capital of the Lubelskie province, is the key political and economic centre of the region. The Lublin Functional Area brings together over 600,000 inhabitants from the city itself and closely-connected neighbouring communes, which form a prosperous metropolitan organism through a network of cooperation. Lublin is the central regional transport hub with access to the nearby airport and the intersection of national roads which are set to become part of a cross-border road network. Three expressways run through the city: S12 (Piotrków Trybunalski - Dorohusk), S17 (Warsaw – Lublin - Hrebenne) and S19 (running along Poland’s eastern border from Kuźnica Białostocka to Poland’s southern border – Barwinek), which is also part the Via Carpatia route – the transnational European scheme to connect Klaipėda in Lithuania with Thessaloniki in Greece.
The European transport route will run through Lithuania, Poland, Slovakia, Hungary, Romania, Bulgaria and Greece. Its Polish section will comprise approximately 700 km and be part of the important transport route connecting Polish and Lithuanian ports with Southern Europe, including the seaport of Constanta in Romania (the Black Sea) and Thessaloniki in Greece (the Aegean Sea). With further extensions and upgrades to its road infrastructure and its proximity to the eastern border of Poland and the European Union, this region is being targeted by investors looking to build logistics facilities close to attractive consumer markets such as Ukraine.
The transnational Via Carpatia route
The warehouse market in Lublin has seen robust development activity in recent years, with projects developed by leading international players such as GLP and MLP or Panattoni, the largest developer who continues to deliver class A industrial facilities in Lublin and its vicinity. Lublin’s industrial stock currently stands at 319,000 sq m, having doubled in size over the last four years.
This strong growth was largely driven by projects developed by Panattoni, which delivered more than 100,000 sq m across its three logistics parks, and by MLP Group, which added close to 20,000 sq m to its existing facility. Another recent newcomer to the Lublin warehouse market is the national developer 7R, which in late 2021 completed the first phase of its new project, comprising two warehouses with a total area of almost 43,000 sq m. At full build-out, the project will consist of five buildings offering over 108,000 sq m in a prime location close to the city’s main artery with access to the S12 and S17 expressways.
Local developers are also active in the Lublin market, delivering high quality warehouse buildings and small business units (SBUs) sized between 700-800 sq m to complement the existing stock. Most facilities are located within the city’s administrative borders and are easily accessible by public transport, a great convenience for employees. Warehouses are also available in the eastern part of the city where they enjoy easy access to the S12, S17 and S19 expressways.
At the end of Q4 2021, around 13,000 sq m of warehouse space was vacant, 6.4% of Lublin’s total stock. Looking ahead, the low vacancy rate, coupled with the growing focus on the Lublin market of such industries as e-commerce, logistics, food and light manufacturing, will be the key drivers of the warehouse market growth in the Lublin area.
“Benefiting from its rapid economic growth and further improvements to transport accessibility, Lublin is ranked as one of the most prospective locations for new warehouse and industrial projects in Poland. And as a strong academic centre, it provides a large pool of skilled labour. The Lublin City Hall offers entrepreneurs comprehensive support at every stage of project development,” adds Przemysław Gruba, Lublin City Hall, Department of Strategy and Entrepreneurship.
Lublin is the largest cultural, academic and business centre in eastern Poland, with a population of close to 650,000 in its metropolitan area. A well-educated talent pool, competitive labour and leasing costs, and good quality expressways, among other things, add to the investment appeal of the city.
KOSTAL Automobil Elektrik, a German-headquartered system supplier to the automotive sector, has signed a lease for over 17,000 sq m of manufacturing space in Panattoni Park Lublin IV.
Wraz z początkiem 2021 r. Panattoni dostarczył DB Schenker terminal przeładunkowy w Świdniku. Obiekt uzyskał certyfikat BREEAM z oceną "Very Good".
