ACROSS | The European Retail Real Estate Magazine

Development

New shopping centers to be opened in Germany

The East Side Mall in Berlin is set to open its doors this year. Image: Freo Group

2017 did not see any traditional new openings in Germany. Eight new centers are scheduled to enter the market this year, reports the EHI Retail Institute.

Shopping centers remain popular shopping destinations for Germans. The density of centers, especially in downtown areas, remains at a high level. Although the boom has weakened in recent years, growth is expected to return this year.

The preliminary results of the “Shopping Center Report 2018” EHI study show that a great amount of restructuring, modernization, and expansion of existing shopping centers is taking place. “After a brief period of deceleration, momentum is returning to the shopping center market,” explains Marco Atzberger.

 Expected Growth

German retail trade currently includes 479 large shopping centers (from 10,000 sq m) with a total rental area (includes rental areas as well as mall areas, center administration areas, and sanitary facilities) of around 15.4 million sq m compared to 12.6 million sq m in 2008. The number of shopping centers remained unchanged in 2017 since the revitalized Loom Center in Bielefeld did not constitute a traditional new opening.

 

Loom Center in Bielefeld

The number of shopping centers remained unchanged in 2017 since the revitalized Loom Center in Bielefeld did not constitute a traditional new opening. Image: ECE

 

In 2016, it transpired that a maturity stage with only three new openings had been reached. However, by the end of this year, eight new openings are scheduled to be completed – including the East Side Mall in Berlin (31,000 sq m) and the Forum Schwanthalerhöhe in Munich (30,000 sq m).

 City Centers Preferred

Approximately half of all large shopping centers (231) in Germany are located in downtown areas. Recent center developments underpin the importance of downtown locations: Of the 65 centers that were added between 2010 and 2017, 51 (79 percent) were developed in downtown areas, 15 percent in district centers, and 6 percent in suburban or undeveloped areas.

The majority of the 65 newly developed centers (48 percent) are located in large cities and medium-sized municipalities with more than 20,000 inhabitants. Conversely, just under 5 percent of all newer centers are located in small cities.

 

Forum Schwanthalerhöhe in Munich

Eight new openings are scheduled to be completed by the end of this year – including the Forum Schwanthalerhöhe in Munich (30,000 sq m). Image: HBB

 

Modernization Required

Forty-six shopping centers are due for comprehensive restructuring or modernization. The majority of these centers were opened in the 1990s or at the turn of the millennium and have become outdated.

Today’s retailers require different retail space layouts. Offerings such as “Click and Collect” impact warehousing and retail space. The food offering is being refined at nearly all shopping centers. Shopping center retail gastronomy turnover currently amounts to approximately 2 billion euros.

 


Follow @across_magazine on Twitter and @across.magazine.europe on Facebook, sign up for our ACROSS newsletter and subscribe to ACROSS Magazine.


 

Development

A Greek tragedy – with a happy ending?

According to the developer, Europe’s biggest urban regeneration project is about to take shape on the area of the former Hellinikon airport – including a shopping center. Implementing this project, however, is very challenging.

PROJECTS & OPENINGS EUROPE

Benoy’s project Vadistanbul mall north of Istanbul | Galeries Lafayette Flagship Store Luxembourg | Kongahälla Shopping in Kungälv located north of Gothenburg | Belgrade Waterfront project in Serbia | ECE´s Hessen-Center in Frankfurt | The redevelopment of the Whitgift mall by the Croydon Partnership – a joint venture between Westfield and Hammerson.

PROJECTS & OPENINGS INTERNATIONAL

Ivanhoé Cambridge announced a large-scale redevelopment project for the Montreal Eaton Centre. | Galeries Lafayette has signed the lease for a major new store in Shanghai, China in partnership with I.T. Limited, which is scheduled to open in late 2018. | The first phase of Grandscape in Dallas, Texas will open in May 2019.

From retail to hotel real estate

New perspectives regarding conversion and development potential are opening up for inner-city retail shops and department stores.

“We are not portfolio holders”

INVESTER United Benefits is one of the most active players on the Austrian real estate market. ACROSS spoke to INVESTER co-founder Franz Alexander Kollitsch and Thomas Seikmann, managing director of the company's own center management company Ekazent, about the company's retail activities.

BELGRADE – AN INSIDER TIP ON THE DANUBE?

The Serbian capital tends to be viewed as more of an insider tip than a universally acknowledged hotspot, among expansion-minded European retailers. This is partly due to the city’s challenging retail conditions.