By Peter Sempelmann
“There is enough money in the market, but does it know where to go to?”
With this provocative question, moderator Klaus Striebich opened the ACROSS Retail Talk on investment strategies. A discussion that quickly moved beyond investment volumes, yields, and market cycles. Instead, the panel focused on a more fundamental issue: why some retail assets are attracting growing investor interest while others continue to struggle.
The discussion brought together Henri Eisenkopf of Union Investment, Rhys Evans of Pradera, Steffen Hofmann of ambas Real Estate, and Toby Smith of Axis Capital Partners. Their perspectives differed, but they shared a common observation: retail is no longer judged as a single asset class.
Retail Is Back—But Not Everywhere
At the beginning of the discussion, Striebich pointed to the improving sentiment surrounding retail real estate: “When we read the newspapers or the media, retail real estate is bouncing back,” he noted, referring to the strong performance of retail parks, outlet centers, and other retail formats that have demonstrated resilience over recent years.
“Every catchment is different. Every customer is different.”
Henri Eisenkopf, Union Investment
The panel largely agreed with that assessment, but also cautioned against broad generalizations Henri Eisenkopf noted, the industry’s challenge is not simply attracting capital but understanding why certain assets continue to outperform. In his view, successful investments start with a deep understanding of local markets rather than sector-wide assumptions. “Every catchment is different. Every customer is different,” Eisenkopf said during the final round of the discussion. Investors and retailers, he argued, need to understand their local customers before making strategic decisions.
That customer-centric thinking emerged repeatedly throughout the conversation. Rather than discussing retail as a homogeneous sector, the panel focused on the specific characteristics that make individual assets successful. Location quality, tenant performance, customer relevance, and operational management all featured prominently in the debate.
The Age of Selectivity
If there was one theme that united all speakers, it was the growing importance of selectivity.
According to Rhys Evans, capital remains available for retail investments. The real challenge lies elsewhere. “There’s a lot of opportunity out there. There’s a lot of stock that you can gain access to,” Evans said. “ It’s important that you’re ruthlessly selective in terms of what you go after and buy.”
That selectivity reflects a broader shift in investor behavior. Rather than allocating capital to retail as a sector, investors increasingly evaluate assets one by one. Evans emphasized the importance of rigorous underwriting and detailed operational analysis: “You’ve got to be super diligent during the underwriting process and look at sales, productivity, occupancy cost ratios, historic performance, robustness of cash flows, and all that good stuff.”
“It‘s important to be ruthlessly selective in terms of what you go after and buy.”
Rhys Evans, Chief Executive and Director Pradera Ltd.
His comments highlighted how retail investment has evolved. Traditional metrics such as yields and pricing remain important, but investors are increasingly looking beyond financial models to understand how individual assets perform in practice.
During the discussion, the speakers agreed that retail’s rehabilitation among investors has not been driven by sentiment alone. Instead, it has been earned through years of operational performance and data that demonstrate the resilience of well-positioned assets.
Understanding the Customer Journey
One of the most interesting aspects of the discussion was the extent to which the speakers focused on customers rather than properties. Eisenkopf argued that landlords and retailers need to work together more closely than in the past: “Engage with your tenants in a dialogue on equal footing and have a partnership for success rather than an ‘us versus them’ relationship.”
In Eisenkopf’s view, successful retail destinations are built on cooperation and transparency. Landlords, retailers, and consumers ultimately share the same interest: creating destinations that people want to visit.
Evans approached the issue from an investment perspective. “Keep honing in on the relevance of the property and the purpose of the customer journey,” he advised.
That comment captured a recurring theme throughout the discussion. Whether the asset might be a shopping center, retail park, or outlet destination, investors increasingly ask the same question: why do customers choose to visit? Assets that answer that question convincingly are attracting capital. Those that cannot face growing challenges.
Active Management Creates Value
Another recurring topic was the growing importance of operational expertise. Several speakers noted that simply owning retail assets is no longer sufficient. Creating value increasingly depends on active management, leasing strategies, tenant mix decisions, and a detailed understanding of local markets.
Evans argued that investors seeking superior returns should focus on assets where operational management genuinely influences performance.
“I would focus on properties where operational intensity of management is required to drive returns”, Evans argued.
That particular comment reflects a broader trend in the sector. Retail real estate is increasingly managed as an operating business rather than a passive investment. That requires expertise, flexibility, and the willingness to adapt continuously.
Confidence, Innovation, and Change
While much of the discussion focused on analysis, data, and operational performance, Steffen Hofmann deliberately shifted the conversation to a broader perspective. “We’ve spoken a lot about numbers and data points and Excel sheets and yields,” he said before offering a different view of the industry’s future.
To him, success is also a matter of mindset: “We need faith and confidence in the future. I think we have our heads too much in dark clouds.” Hofmann argued that excessive regulation and a constant focus on risks can sometimes prevent innovation: “It would be good to unleash creativity and innovation in the industry.” Perhaps his strongest message was directed at an industry that often compares current conditions with the past: “We need to embrace change and not try to get back to how it was.”
Hofmann’s comments introduced a theme that resonated throughout the discussion: retail’s future will not be shaped by recreating old models but by adapting to new realities.
“We need to embrace change and not try to get back to how it was.”
Steffen Hofmann, Managing Partner ambas Real Estate
No Universal Formula
As the discussion drew to a close, Striebich asked each participant for recommendations for the industry. The responses revealed striking similarities.
Eisenkopf highlighted customer understanding, tenant partnerships, and transparency. Evans emphasized selectivity, relevance, and active management. Hofmann called for confidence, innovation, and openness to change. And Toby Smith condensed his advice into just a few words: “Be creative. Be flexible. Be diligent.”
Simple as they were, those three principles captured much of what had been discussed over the previous hour.
The conversation suggested that retail real estate has entered a new phase. Investors are no longer debating whether retail can succeed. Instead, they are trying to identify which assets are positioned to succeed and why.
“Be creative. Be flexible. Be diligent.”
Toby Smith, Co-owner, Axis Capital Partners
For some, the answer lies in customer relevance. For others, it lies in operational excellence, active management, or rigorous underwriting. Yet all roads seem to lead to the same conclusion: capital is available, but it is increasingly reserved for assets that can demonstrate their long-term value.
Or, as Klaus Striebich framed it at the beginning of the discussion, the challenge is no longer whether money exists. The challenge is whether it knows where to go. And that is a completely different question.
