PERSONAL COMMENTARIES OF RETAIL REAL ESTATE EXPERTS
The ACROSS Advisory Board is happy to announce its latest addition and welcomes Walter Seib as its new member.
CONGRATULATIONS
Outlet centers have proved to be one of the most successful businesses in the retail market.
The retail real estate industry has faced many challenges in the decade since the crash. Most fundamental among them was a textbook case of falling demand facing rising supply.
Even after 10 years of online retailing, the clear dominance of brick-and-mortar retailing remains unbroken.
What shaped and moved the retail real estate industry in the past 10 years.
SPECIAL: 10 YEARS ACROSS - OVERVIEW
When we presented the first print issue of ACROSS exactly 10 years ago, an epochal event shook the world economy. The US-investment bank Lehman Brothers went bankrupt with a deafening bang and caused the biggest economic crisis in recent years. The real estate industry was hit particularly hard.
Close to four million sq m of new shopping center space is expected to be delivered this year in Europe, and millions more are due to be completed in 2019.
Given the current skepticism prevailing among the international real estate investment community, particularly regarding the retail real estate segment, it is important to try to identify its underlying reasons, separating the thoughtful ones from the more provocative ones.
One of the most important aspects of the advancement of technology is how it has unlocked massive potential by transforming the way we communicate. In our daily lives, we now have at our fingertips instant ways to access important information, engage with people and brands that matter, and stay safe and informed.
The retail industry is going through seismic change, fueled by changes in demographics, consumer behavior and – perhaps most notably – technological advancements. Recent figures show that e-commerce currently makes up one-tenth of total retail sales worldwide, and this number is set to increase over the years to come.
Recruitments, promotions and appointments in the European Retail Real Estate Industry.
There's no denying that these are challenging times for retail, with shopping center landlords having to work harder to increase footfall and convert this to spend. On paper, this is simple – make your retail assets attractive places to shop, introduce popular retail and F&B brands, and people will want to spend money there.
The brick-and-mortar store "retail apocalypse" has been abandoned, as numerous international studies clearly show. Online retailing is and remains a peripheral phenomenon in terms of current sales figures.
Lombardy is the richest Italian region, with a population that accounts for up to 10 million inhabitants, which is comparable to the total population of some European countries.
The European retail real estate industry has been going through the formation and development of mega-corporations. In the long run, will major enterprises divide the industry among themselves?
The acquisition of Westfield by Unibail-Rodamco also offers new opportunities for 26 shopping centers in the German portfolio. Tenants as well as customers should benefit.
By Reinhard Winiwarter, Publisher and Managing Partner ACROSS Magazine
Let’s face it: The general market sentiment for off-prime shopping centers, and even for well-performing assets in less prominent locations, is currently shaped by increased investor uncertainty about the future performance outlook for the asset class as a whole. Consequently, not much has happened in the European shopping center sector since the beginning of this year.
