Commentary by
Reinhard Winiwarter /// Publisher & Managing Partner of ACROSS Magazine
The real estate industry values stability. In retail real estate in particular, one principle long seemed unshakeable: own strong locations, develop solid assets, lease them well – and enjoy predictable returns. For decades, that logic worked. And it was comfortable.
Today, that comfort has become a risk.
As consumer behavior, brand strategies, and cities evolve at unprecedented speed, many shopping center operators still act primarily as landlords. Rent in, service charges through, value creation via the asset – end of story. In an environment of rising costs, retailer fragility, and structural volatility, that model alone is no longer sufficient.
This is precisely why comments by Rüdiger Dany, CEO of NEPI Rockcastle, deserve attention. His message is both simple and uncomfortable: shopping center operators should actively build additional business models beyond traditional leasing. Not as a replacement – but as a second pillar. As risk diversification. As entrepreneurial evolution.
From Real Estate Developer to Energy Entrepreneur
NEPI Rockcastle provides a concrete example. By installing photovoltaic systems on the roofs of its shopping centers and on large open areas, the company generates electricity and sells it directly to tenants and other users. In doing so, the shopping center operator becomes, at least in part, an energy provider. The result: new revenue streams, reduced dependence on external energy markets, a compelling sustainability strategy, and tangible added value for tenants.
What matters here is not the solar panels themselves. It is the mindset shift behind them – the willingness to move beyond pure landlord logic.
A similar approach can be seen at Unibail-Rodamco-Westfield. With Westfield RISE, the group has launched an in-house agency developing data-driven campaigns and brand experiences tailored to the shopping center environment. URW is no longer monetizing space alone, but reach, data, creativity, and storytelling. Footfall becomes media value; malls become marketing platforms.
Both cases illustrate a fundamental truth: shopping centers are not static real estate assets. They are platforms. And platforms can be monetized in multiple ways.
Learning from Those Who Reinvented Themselves
Looking beyond the real estate sector reinforces how necessary this shift is. Media group Axel Springer realized early on that journalism alone would not secure its future. With Axel Springer Digital Ventures, it established a second pillar by investing in digital business models – often far removed from traditional publishing, yet strategically linked through capital, reach, and expertise.
The logic becomes even clearer when looking at Apple. Originally a hardware manufacturer, Apple built a hugely successful digital commerce model with the iTunes Store, selling music and media at scale. More than 25 billion songs were sold, briefly making Apple the most powerful company in the music industry. Streaming eventually rendered downloads obsolete – but Apple did not retreat. Instead, it integrated the model into a broader services ecosystem. Today, individual revenues matter less than the system as a whole, which enabled approximately USD 1.3 trillion in developer billings and sales through the App Store ecosystem in 2024 alone.
The lesson is clear: not every business model must last forever. What matters is whether it becomes a building block within a scalable ecosystem. This insight is directly transferable to retail real estate.
Where New Revenue Streams Can Realistically Emerge
The good news: shopping center operators already possess the core ingredients for new business models. They control space, infrastructure, footfall, data, and often prime urban locations. The bad news: much of this potential remains underutilized.
Beyond energy production and retail media, several opportunity fields are obvious:
Energy and mobility services
Photovoltaics are just the beginning. EV charging infrastructure, local energy storage, and intelligent load management systems can become profitable services for tenants, visitors, and surrounding neighborhoods.
Data as a product
Footfall patterns, dwell times, movement flows – shopping centers generate valuable data every day. Properly anonymized and GDPR-compliant, this data can be transformed into insights for retailers, brands, and even city planners.
Logistics and omnichannel services
Malls as micro-fulfillment hubs, click-and-collect points, or return centers – not as a defensive response to e-commerce, but as an active role in the value chain.
Experience and content formats
Pop-ups, product launces, brand activations, and events – designed professionally and sold as services, not treated as decorative extras.
Services beyond retail
Healthcare, education, coworking, and urban services – no longer just leased, but operated or co-developed through partnership and participation models.
The Real Bottleneck Is Cultural
Why are such models still the exception rather than the rule? Because new business models are not born in spreadsheets – they are born in mindsets. They require different skills, different risk tolerance, and different KPIs. Applying core real estate yield logic to innovation will almost certainly kill it.
Successful operators will separate these initiatives organizationally: through dedicated units, joint ventures, or investment vehicles. And they will need to accept that not every new venture is immediately scalable or predictable.
Conclusion: Relevance Is Not Preserved Through Inertia
Shopping center operators are not facing the end of their business model – but they are at a turning point, facing its evolution. Real estate remains the foundation. But future value creation increasingly comes from what is built on top of it.
Those who start developing additional business models today are not acting recklessly – they are acting responsibly. In a world defined by uncertainty, diversification is not a luxury. It is an entrepreneurial necessity.
Lucrative Additional Revenue for the Mall Business: More creativity is needed – and one should learn from the best
For decades, the business model of shopping centers was built on one simple principle: rent. Today, that is no longer sufficient. Long-term resilience comes from diversification, and retail real estate would be well advised to learn from the best companies that have already mastered it.
Commentary by
Reinhard Winiwarter /// Publisher & Managing Partner of ACROSS Magazine
The real estate industry values stability. In retail real estate in particular, one principle long seemed unshakeable: own strong locations, develop solid assets, lease them well – and enjoy predictable returns. For decades, that logic worked. And it was comfortable.
Today, that comfort has become a risk.
As consumer behavior, brand strategies, and cities evolve at unprecedented speed, many shopping center operators still act primarily as landlords. Rent in, service charges through, value creation via the asset – end of story. In an environment of rising costs, retailer fragility, and structural volatility, that model alone is no longer sufficient.
This is precisely why comments by Rüdiger Dany, CEO of NEPI Rockcastle, deserve attention. His message is both simple and uncomfortable: shopping center operators should actively build additional business models beyond traditional leasing. Not as a replacement – but as a second pillar. As risk diversification. As entrepreneurial evolution.
From Real Estate Developer to Energy Entrepreneur
NEPI Rockcastle provides a concrete example. By installing photovoltaic systems on the roofs of its shopping centers and on large open areas, the company generates electricity and sells it directly to tenants and other users. In doing so, the shopping center operator becomes, at least in part, an energy provider. The result: new revenue streams, reduced dependence on external energy markets, a compelling sustainability strategy, and tangible added value for tenants.
What matters here is not the solar panels themselves. It is the mindset shift behind them – the willingness to move beyond pure landlord logic.
A similar approach can be seen at Unibail-Rodamco-Westfield. With Westfield RISE, the group has launched an in-house agency developing data-driven campaigns and brand experiences tailored to the shopping center environment. URW is no longer monetizing space alone, but reach, data, creativity, and storytelling. Footfall becomes media value; malls become marketing platforms.
Both cases illustrate a fundamental truth: shopping centers are not static real estate assets. They are platforms. And platforms can be monetized in multiple ways.
Learning from Those Who Reinvented Themselves
Looking beyond the real estate sector reinforces how necessary this shift is. Media group Axel Springer realized early on that journalism alone would not secure its future. With Axel Springer Digital Ventures, it established a second pillar by investing in digital business models – often far removed from traditional publishing, yet strategically linked through capital, reach, and expertise.
The logic becomes even clearer when looking at Apple. Originally a hardware manufacturer, Apple built a hugely successful digital commerce model with the iTunes Store, selling music and media at scale. More than 25 billion songs were sold, briefly making Apple the most powerful company in the music industry. Streaming eventually rendered downloads obsolete – but Apple did not retreat. Instead, it integrated the model into a broader services ecosystem. Today, individual revenues matter less than the system as a whole, which enabled approximately USD 1.3 trillion in developer billings and sales through the App Store ecosystem in 2024 alone.
The lesson is clear: not every business model must last forever. What matters is whether it becomes a building block within a scalable ecosystem. This insight is directly transferable to retail real estate.
Where New Revenue Streams Can Realistically Emerge
The good news: shopping center operators already possess the core ingredients for new business models. They control space, infrastructure, footfall, data, and often prime urban locations. The bad news: much of this potential remains underutilized.
Beyond energy production and retail media, several opportunity fields are obvious:
Energy and mobility services
Photovoltaics are just the beginning. EV charging infrastructure, local energy storage, and intelligent load management systems can become profitable services for tenants, visitors, and surrounding neighborhoods.
Data as a product
Footfall patterns, dwell times, movement flows – shopping centers generate valuable data every day. Properly anonymized and GDPR-compliant, this data can be transformed into insights for retailers, brands, and even city planners.
Logistics and omnichannel services
Malls as micro-fulfillment hubs, click-and-collect points, or return centers – not as a defensive response to e-commerce, but as an active role in the value chain.
Experience and content formats
Pop-ups, product launces, brand activations, and events – designed professionally and sold as services, not treated as decorative extras.
Services beyond retail
Healthcare, education, coworking, and urban services – no longer just leased, but operated or co-developed through partnership and participation models.
The Real Bottleneck Is Cultural
Why are such models still the exception rather than the rule? Because new business models are not born in spreadsheets – they are born in mindsets. They require different skills, different risk tolerance, and different KPIs. Applying core real estate yield logic to innovation will almost certainly kill it.
Successful operators will separate these initiatives organizationally: through dedicated units, joint ventures, or investment vehicles. And they will need to accept that not every new venture is immediately scalable or predictable.
Conclusion: Relevance Is Not Preserved Through Inertia
Shopping center operators are not facing the end of their business model – but they are at a turning point, facing its evolution. Real estate remains the foundation. But future value creation increasingly comes from what is built on top of it.
Those who start developing additional business models today are not acting recklessly – they are acting responsibly. In a world defined by uncertainty, diversification is not a luxury. It is an entrepreneurial necessity.
Related
Rüdiger Dany – The Man Who Ignored the Obituary
Rüdiger Dany: From Retail Roots to European Market Leadership
ambas Real Estate appoints Günter Kaufmann as Managing Partner
Subscribe to ACROSS Magazine
Enjoy ACROSS – The European Placemaking Magazine on your desktop, tablet, or smartphone.
Latest Print Issue