Anniversary for a successful publication in the real estate industry: In what is now its tenth year, the retail real estate specialist MEC, together with its partners Nuveen, Savills, Dr. La-demann & Partner and Wisag the FMZ-Report 2022. “Evoluzzer wanted. Retail real estate – major changes and new opportunities” – the current issue deals with the numerous major changes in the asset class of retail real estate and the resulting opportunities. The editors agree: It is the time of the Evoluzzers.
“In the history of the FMZ Report, there has never been a year in which the dynamics of change were as strong and the transformation processes in the economy and society as far-reaching as they are today,” says Christian Schröder, COO of the publisher MEC, describing the editorial focus of the current edition with more than 100 pages. In it, the authors address the current defining issues for retail real estate.
The good news first: “The substantial general conditions of retail park investments – such as cash flow stability, location quality through restrictive building law, index leases, lower economic dependence – are so attractive that the market will remain liquid,” explains Jörg Krechky, Head of Retail Investment Germany at Savills Germany, in the current FMZ report.At the same time, however, the expert makes it clear: “Be it due to the structural problems in retail, the short recovery phase from the pandemic or because other sectors have more transparency pressure: the retail property sector and thus also the retail park segment is still lagging behind when it comes to ESG .”
Maria Grubmüller, Senior Research Associate at Nuveen, is convinced that ESG is the order of the day: “Only those who focus on industry-defining topics such as ESG in good time and with a convincing strategy will keep investors and consumers on their side in the long term and continue to be robust with retail parks can achieve returns. Today, taking a real estate portfolio on sight is a guarantee of losing touch with sustainable change in our society and the market.”
Uwe Seidel, Managing Partner at Dr. Lademann & Partner sees great business potential in the sustainable development of retail locations: “It is important not to lose any time, to start now and implement solutions that work economically, apart from EEG, subsidies and temporary federal and state funding programs. These include, for example, modern contractual solutions for the sale of the electricity generated via so-called Purchase Power Agreements when using photovoltaic systems on the large roof or parking areas of retail properties. As a result, these and other intelligent solutions result in revenue models that make a significant contribution to climate protection and the sustainability of retail properties.”
For Joaquin Jimenez Zabala, Head of Business Development at Wisag Facility Service, the key to the sustainable success of retail properties lies above all in well thought-out and often still neglected data management: “Data can be a universal key when it comes to the Keeping an eye on costs, optimizing processes and ultimately managing centers more sustainably – and thus also reducing expenses,” says Zabala. “However, the data situation is often insufficient: Currently, the consumption data for electricity, heat or even water is incomplete in practice,” says the expert, describing the potential for improvement. Greater cooperation between investors, operators and tenants is required here.
For Christian Schröder, COO of the MEC, all contributions in the FMZ Report 2022 one thing very clearly: “For years, the real estate industry has been talking about solidarity between the individual players and more equality. No discipline can master the current challenges alone. From the investor to asset, property and facility management, it is now more important than ever to close ranks and be successful together.”