TOM 10 2023

T
TOPS
M
OF THE MONTH
TOMO
RETAIL REAL ESTATE
TOPS
OF THE
MONTH
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
THE HOTTEST DEALS +++
INTERVIEWS +++ STATEMENTS
+++ PARTICULARS +++
ANALYSES +++ PROJECTS
presented by HI-HEUTE.DE
October 2023
GfK has analysed purchasing power in Europe.
Europeans‘ purchasing power
rises to 17,688 euros
Germany lands at the bottom of the top 10
Per capita purchasing power
in Europe will average 17,688
euros in 2023. However, there
are significant differences between
the 42 European countries.
For example, people in Liechtenstein,
Switzerland and Luxembourg
have a much higher
net income than in the rest of
Europe, while purchasing power
is lowest in Belarus, Kosovo
and Ukraine. The biggest winner
of the year is Ireland, which
moved up four places in the
overall European comparison.
These are the findings of the
new „GfK Purchasing Power
Europe 2023“ study, which is
available now.
In 2023, Europeans will have
a total of around 12.1 trillion
euros at their disposal to spend
on food, housing, services,
energy costs, private pensions,
insurance, holidays, mobility
and consumer wishes. This corresponds
to an average per capita
purchasing power of 17,688
euros, which represents nominal
growth of 5.8 per cent compared
to the revised figure for the
previous year. However, how
much consumers actually have
available for spending and saving
varies greatly from country
to country and also depends on
how consumer prices develop in
2023.
As in previous years, Liechtenstein
will remain in first place
in the purchasing power ranking
by a clear margin in 2023.
Liechtenstein residents have a
per capita purchasing power of
68,843 euros, which is almost
3.9 times higher than the European
average. Switzerland and
Luxembourg follow in second
and third place. While the per
capita purchasing power of the
Swiss is 2.8 times higher than
that of the average European at
49,592 euros, Luxembourgers
have a net disposable income of
40,931 euros per capita. This is
more than 2.3 times higher than
the European average.
All other countries in the top
ten also have a very high per
capita purchasing power, which
is at least 47 per cent above the
European average. The biggest
winner is Ireland: after just barely
making it into the top ten
last year, the island nation has
moved up another four places
to sixth place this year. With
€26,882 per capita, the Irish are
exactly 52 per cent above the
European average.
There were also some other
changes within the purchasing
Symbolic image: Pixabay / Louis
power top ten. Iceland and Denmark
each moved up one place
to fourth and fifth place respectively,
while Austria moved up
two places to seventh place.
Norway, on the other hand, fell
by four places, Germany by one
and the United Kingdom by
three. As a result, these three
countries slip to the bottom of
the purchasing power top ten.
Overall, 16 of the 42 countries
analysed are above the
European average. On the other
hand, 26 countries have belowaverage
purchasing power per
capita - including Spain, which
is slightly below the European
average at 16,449 euros per capita.
As in previous years, Ukraine
brings up the rear. People
there only have 2478 euros per
capita at their disposal, which is
exactly 14 per cent of the European
average.

Page 2
NEWS
October 2023
FLAiR Fürth successful
with innovative technologies
P&P reports impressive energy-saving results
The P&P Group, owner and
operator of the FLAiR Fürth
urban adventure centre, has
announced an impressive halving
of energy costs compared
to 2022. This significant
reduction is made possible by
investments in state-of-theart
energy-saving technology,
combined with sustainable
behavioural changes and the
adjustment of electricity supplier
contracts.
A central element of the energy
efficiency concept is the combined
heat and power plant installed
in the FLAiR, which boasts
above-average performance
parameters. It consumes considerably
less primary energy
than conventional power plants
and therefore contributes to
significant fuel savings. At the
same time, CO2 emissions are
reduced considerably.
The FLAiR also uses three
state-of-the-art chillers with
heat recovery, which make a
considerable contribution to
energy savings. The tenants in
There is good news from
Frankfurt‘s NordWest-
Zentrum on the occasion of
its 55th anniversary. HBB
has been able to attract new
brands to the centre, expand
its offering and open an indoor
playground.
The increased attractiveness of
the centre has prompted Primark
to extend its lease. The
fashion retailer remains an integral
part of the NWZ. The
branch mix was further expanded
in June with the opening
of menswear retailer AC & Co
and optician and audiologist
Neusehland.
A shopping experience also
includes entertainment. The
NWZ will become Hessen‘s
The FLAiR Fürth focusses on sustainability. Photo: Lindner
Group
the centre also make a significant
contribution to the savings
through their sustainable behaviour.
The P&P Group also
achieved optimised conditions
by revising existing electricity
contracts and cooperating with
new suppliers, which enabled
further cost savings.
The FLAiR Fürth is also BREE-
AM certified, with the top rating
of „Excellent“. The more
NordWestZentrum
gets indoor playground
HBB also creates added value with new tenants
largest indoor playground this
year. Nori Park for kids and families
will open on over 5000
square metres. With play equipment,
play facilities and organised
children‘s birthday parties,
excellence stars, the greater
the building‘s progress towards
more sustainable standards.
The internationally renowned
seal of quality for sustainable
buildings is awarded in Germany
by TÜV Süd. The criteria
for this certificate cover various
aspects, including energy,
water, waste and transport, in
order to continuously improve
the sustainability performance
of existing buildings.
HBB has news to announce for Frankfurt‘s NordWestZentrum.
Photo: HBB
the indoor playground offers an
ideal opportunity for children to
let off steam and have fun - regardless
of the weather conditions.
One of the highlights is the
Nori rollercoaster.
Construction work on
the Carsch building in
Düsseldorf halted
Construction work on the Carsch-
Haus in Düsseldorf, where the
KaDeWe Group‘s new luxury
department stores‘ is being built,
has been interrupted. Several
service providers have withdrawn
workers from the construction
site. The reason for this is said to
be a lack of payments totalling
millions from Signa, the co-owner
of the luxury department store
operator. The announcement
came after it became known that
several Signa construction projects
in Hamburg, including the
Elbtower, had come to a standstill.
Economic sentiment
in the eurozone
continues to fall
Economic sentiment in the eurozone
fell to its lowest level for almost
three years in October. The
Economic Sentiment Indicator
(ESI) fell by 0.1 points compared
to the previous month to 93.3
points, according to the European
Commission in Brussels. This is
the lowest level since November
2020 and the sixth consecutive
decline. Analysts had expected
a sharper decline to 93.0 points
on average. Sentiment deteriorated
in industry, retail and among
consumers. In the large member
states Spain and Germany, the
mood brightened. In France and
Italy, however, it did not.
Zalando reduces loss
and lowers sales
forecast
Berlin-based online fashion retailer
Zalando SE was able to significantly
reduce its loss in the third
quarter of the 2023 financial year.
However, the company lowered
its annual forecasts for gross
merchandise volume (GMV) and
sales due to weak consumer sentiment.
In the period from July to
September, Group turnover totalled
2.27 billion euros, down 3.2
percent on the same quarter of the
previous year. The GMV fell by
2.4 per cent to 3.20 billion euros.
The company explained the decline
with „a tense macroeconomic
market environment characterised
by consumer restraint and declining
online sales“. In addition,
demand for autumn and winter
clothing was „negatively impacted
by the warmest September on
record in Europe“.

Page 3
TOP STATEMENT OF THE MONTH October 2023
TOP STATEMENT
„What retailers are currently offering has little to do
with the demands of young consumers. This group
has incredible purchasing power, but invests elsewhere
than in bricks-and-mortar retail. Young consumers
spend money on eating out, travelling and
culture. Big bands play three to four concerts per
October
city and a ticket costs around 150 euros, but the
events are still sold out. And the planes to Mallorca
are full to bursting. This shows very clearly where
the priorities lie. Dematerialisation is progressing
rapidly.“
Dr Marc Schumacher, CEO Avantgarde Group, Munich

Page 5 ANALYSES October 2023
Local retail segment remains liquid
Savills‘ assessment of the retail property market
According to Savills, the investment
market for retail
property can look back on
the strongest quarter in terms
of turnover so far this year.
Between July and September,
properties with a volume
of 1.8 billion euros changed
hands. In total, the transaction
volume for the current
year was therefore around
4.7 billion euros, which represents
a decline of 32 per cent
compared to the same period
last year.
In contrast to other segments
of the commercial investment
market, the retail property market
thus recorded the smallest
decline and remained comparatively
liquid. As in the previous
quarters, the retail property
market was the type of use with
the highest turnover, accounting
for 32% of the commercial investment
volume. And as in the
previous quarters, a large-volume
transaction supported the
transaction volume: the billioneuro
acquisition of all 188 local
retail properties by Slate Asset
Management from X+bricks.
Clear split
Jörg Krechky, Head of Retail Investment
Services Germany at
Savills, comments on the market
environment: „A clear trend
emerged on the retail property
market as soon as the pandemic
began: a clear division. On the
one hand, there is a robust local
shopping centre segment and,
on the other, the rest of the market,
which is confronted with
numerous structural changes.
This dichotomy has meant that
the term retail property market
no longer adequately describes
the complexity of the sector.
Instead, we are seeing growing
diversification within the sector,
with each segment having
its own specific dynamics and
challenges.“
A look at the transaction activity
in the year to date makes the division
even clearer. While retail
parks with a transaction volume
of 588 million euros, commercial
buildings with 464 million
euros and shopping centres with
504 million euros have suffered
a decline in turnover of around
60 to 80 percent, supermarkets
Food-anchored retail properties support the transaction market.
and discounters have recorded a
significant increase in turnover
(+ 80 percent). The transaction
volume of around 1.8 billion
euros was largely driven by two
large-volume portfolio transactions.
Rebecca Hummel, Senior
Consultant Research at Savills
Germany, comments: „This makes
the local shopping centre
segment, alongside logistics,
seemingly the only segment of
the commercial investment market
that is still liquid for largevolume
portfolio transactions.“
In addition to the acquisition of
the X+bricks properties by Slate
Asset Management, the two
transactions involve the Royal
Blue portfolio, in which Aldi
Süd purchased over seventy of
its own stores from Allianz.
Retailers as
investors
Krechky comments: „The Royal
Blue portfolio illustrates two
important developments that we
have observed in this segment
in recent months. Firstly, some
investors seem to consider the
risk of short lease terms to be
less significant. This could be
due to the above-average rental
growth and the expectation of
virtually certain rent increases.
On the other hand, food retailers
are increasingly present as potential
buyers, which additionally
supports the demand side and
influences the bidding processes.“
Daniel Kroppmanns, Head
of Retail Agency Germany at
Savills, adds: „The expansion
in out-of-town food retail is reaching
its limits and is gradually
levelling off. By acquiring their
own properties, retailers are not
only securing their locations,
but are also partially escaping
the current rental price trend. In
addition to this, city centres are
increasingly becoming the focus
of expansion again.“
Shopping centres
in trouble
The trend in the shopping centre
market is in stark contrast to
this. A downward trend in rents
is emerging here, accompanied
by growing vacancy rates. According
to Savills, around 15
per cent of German shopping
centres already have a vacancy
rate of more than 20 per cent.
Krechky comments on the market
situation as follows: „The
Symbolic image: Pixabay / Alexa
stagnating or falling rents combined
with increasing vacancies
could increase the pressure on
owners to sell when refinancing
is imminent. This is because
some owners are likely to face
the challenge of no longer being
able to service the increased
interest rates from their centres‘
cash flow. In addition, the
capital values of many centres
are now likely to be below their
original sales price, making refinancing
even more difficult.
After project developments,
shopping centres could therefore
be the next segment to see
distressed sales and more transactions.“
Increase in prime
yields
The prime yield rose by a further
20 basis points in almost all segments
in the third quarter. The
prime yield of supermarkets and
discounters stood at 4.7 per cent
at the end of September. It has
thus risen by 90 basis points in
the space of a year. The increase
was only greater for retail parks,
which now stand at 5.1 percent,
up 100 basis points on the same
quarter last year.

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Page 7 NEWS October 2023
Repayment of corona aid
jeopardises retail livelihoods
BTE fears wave of insolvencies and closures
Brick-and-mortar fashion and
shoe retailers are still far from
over the effects of the coronavirus
pandemic. Although,
according to BTE estimates,
sales at the end of September
were on average in the midsingle-digit
range above those
of 2022 in nominal terms, the
vast majority of shops still fell
well short of the pre-coronavirus
level.
Taking into account the recent
high price increases, the BTE estimates
that the situation is even
more dramatic. Adjusted for
inflation, the loss of sales compared
to 2019 is in the doubledigit
range and even the growth
compared to 2022 is strongly
relativised.
The BTE is convinced that current
sales are not sufficient for
many textile and shoe shops to
offset the high cost increases, for
example in the areas of energy,
personnel or rents. The insolvencies
of well-known industry
giants are proof of this.
The BTE fears further insolvencies
and shop closures in the
near future. The main reason
for this is the pending or possible
repayment of corona aid.
In addition to KfW loans, this
Textile retail again
top of the rental market
JLL: Top locations in the metropolises preferred
The German letting market
for retail properties is continuing
its steady course and even
achieved the strongest single
quarter in two years in the
third quarter with a take-up of
123,300 square metres. In the
year to date, the market has
recorded 623 new lettings with
a total of 336,200 square metres.
Although this represents
seven per cent fewer deals, it
also means that six per cent
more space has been let compared
to the same period last
year.
Aniko Korsos, Head of Retail
Leasing JLL Germany: „The
market has exceeded 100,000
square metres in each of the
past ten quarters and even delivered
outliers in the most recent
two quarters with 112,100 and
123,300 square metres.
Everyone remembers lockdowns in the textile trade only too well.
Now the BTE fears a wave of insolvencies due to coronavirus repayments.
ymbolic image: Pixabay / Andreas Lischke
Even if the last quarter of the
year should now lose some momentum
due to the tense economic
situation, the annual forecast
of 425,000 square metres is
likely to be achieved.
Large-scale lettings of more than
2,000 square metres were once
again the decisive factor, accounting
for a good 43% of total
take-up so far this year. A number
of brands, including Snipes
includes the so-called bridging
aid (ÜBH), which was intended
to compensate for the high sales
losses due to the enforced lockdowns
in 2020 and 2021 in stationary
outfitting retail. Bridging
aid III in particular was able to
compensate for at least some of
the losses and thus save the existence
of many companies.
Inditex rolls out its concept with Stradivarius in URW centres.
Visualisation: URW
and Rituals, are optimising their
space by consolidating locations
but renting larger areas.“
The ten metropolitan areas in
particular saw extensive leasing
activity: 62 percent of all deals
of more than 2,000 square metres
- a total of 89,400 square
metres - were accounted for by
the Big Ten.
Blautal-Center Ulm
with a new name
and lots of flats
The „Blautal Centre“ in Ulm
is not only getting a new name
- „Blau.Quartier“ - but also
around 1,000 flats. Project
developer HLG Real Estate
has carried out an appraisal
process in which the proposal
from the team led by Cologne-based
architects Astoc
and Bauchplan from Munich
came out on top. This concept
now serves as the basis for the
further planning process. The
considerations cover the western
part of the 60,000 square
metre site between Blaubeurer
Strasse and Kleine Blau.
This is where the flats are to
be built, which, together with
the commercial units planned
for the eastern part of the
site, will form a mixed-use
urban quarter. A joint venture
between HLG Real Estate
and DLE Land Development
acquired the site at the beginning
of 2022. HLG is already
in advanced talks with prospective
tenants for the new
commercial space.
Fashion chain
Peter Hahn must
also come under the
protective umbrella
The Peter Hahn fashion chain
is also in financial difficulties
and has therefore applied to
the Stuttgart district court for
protective shield proceedings.
According to the company,
the current market situation
in the mail order business and
the effects of the insolvency
of its sister company Madeleine
Mode GmbH have made
it necessary to reorganise and
refinance the company. Detlef
Specovius (law firm Schultze
& Braun) has now been appointed
as an additional managing
director.
In addition, the restructuring
experts Andreas Kleinschmidt
and Nicolai Fischer from the
law firm White & Case have
been appointed as authorised
restructuring representatives
for the implementation of the
protective shield proceedings.
The aim is to finalise the restructuring
and the entry of investors
in the first quarter of
next year. Peter Hahn has 14
shops throughout Germany
and employs around 1,000
people.

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Page 9 INTERVIEW October 2023
„Centre occupancy is important for the
sustainable success of a shopping centre“
Interview with Klaus Striebich, owner of the consultancy RaRE Advise
„The key success factors of a
shopping centre are undoubtedly
the location and site, socio-economic
conditions and
the sector and tenant mix,
i.e. the product range structure
on offer, which ideally
meets and serves the current
needs of customers.“ This is
what Klaus Striebich, who
was Head of Letting at ECE
for many years and is now
the owner of the consultancy
RaRE Advise, says in an
interview with TOM.
TOM: Mr Striebich, why is
the tenant mix so important
these days with regard to the
sustainable success of a shopping
centre?
Klaus Striebich: Taking a
long-term timeline into account,
the location can no longer
be changed once it has been
determined and established. It
may be possible to start working
on the general conditions,
such as access, visibility and
accessibility. The socio-economic
framework conditions (in
particular the number of consumers
and their income structure)
are given, even if they are
subject to cyclical changes and
fluctuations. All that remains is
the success factor of the sector
and tenant mix, which also has
the advantage of being something
that can or „must“ be actively
managed.
TOM: What then is important
when it comes to implementation?
Klaus Striebich
Klaus Striebich: In order to
create a good mix of sectors
and tenants that fulfils the wishes
and needs of customers,
attention should be paid to the
right number of providers in
the right size and with the required
product range. Is this a
truism or too generalised? No,
because if you scrutinise these
requirements for a planned
letting and find that the characteristics
are fulfilled, you will
end up with a successful mix
that meets your needs and is
successful in the long term. The
skilful satisfaction of customer
needs for their pantry (the concept
of system relevance illustrates
the importance) or the
„soul“ are the reason and justification
for the composition.
TOM: What are the goals
then?
Photo: RaRE Advise
Klaus Striebich: Firstly, the
demand-orientated design of
the product ranges and offers
(according to the principle:
what does the customer want,
where and how can they find
it as easily and conveniently as
possible? Secondly, the creation
of themed and demand areas
(e.g. sorted according to food
or short-term requirements, fashion
and lifestyle, best ager or
young fashion, gastronomy and
entertainment, etc.) in order to
create synergies between the
operators. Thirdly, targeted frequency
control through the mix
in the form of routing, access
via stairs or lifts or the placement
of corresponding major
and anchor tenants, again to
optimise synergy effects among
the tenants. Finally, the fourth
objective is to permanently
monitor all these factors and
tenants, constantly analysing
and questioning any measures
and decisions. Nothing is more
constant than change or „the
unexpected often happens“,
which will lead to constant adjustments
and changes.
TOM: So when would the optimum
target for a letting be
reached?
Klaus Striebich: „It is achieved
if the right sector (demandoriented)
is let to the right tenant
(supply-oriented), in the
right location in the property,
with the right space (demandoriented)
at the right conditions
(profitability-oriented).
Another truism? Not at all, because
here too it is essential to
answer these questions in the
affirmative in order to ensure
the greatest possible security
and long-term success. If the
answer is no, I recommend readjustment).
TOM: The time factor should
not be underestimated,
should it?
Klaus Striebich: Indeed. Demand
and supply situations will
change very quickly during the
term of a lease; it is important
to react to this. Whereas retail
tenants used to stand for the
OPS F THE ONTH
purely physical distribution of
goods or services at a location,
today there are also leisure and
entertainment offers as well as
new operating formats, such
as pop-up stores, which offer
very special services and products
for very short periods
of time, and also several sales
channels to be served by these
same operators. Last but not
least: always analyse first, then
the concept and then the implementation
of the letting ... or in
other words: think first, then
act (together).
T
TOPS
O M
OF THE MONTH
TOM
TOPS
OF THE
RETAIL REAL ESTATE
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
IMPRINT
MONTH
Publisher:
Business News Group GmbH
Address:
Alexanderstraße 16
45130 Essen
Germany
Tel. 0049-201-874 55 28
Web: www.hi-heute.de
Mail: tom@hi-heute.de
Frequency of publication:
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Circulation: approx. 5000 copies
sent by e-mail
Editorial team: Susanne Müller,
Thorsten Müller
Responsible in terms of press
law: Thorsten Müller
Layout: K4-PR, Essen
THE HOTT
INTERVIE
+++ PART
ANALYSE
presente
March

Page 11 OBITUARY October 2023
„Happiness is what you make of it“
A personal obituary on the death of WISAG founder Claus Wisser
When WISAG, Germany‘s
largest facility management
company, invited guests to a
social gathering at the international
property trade fair
EXPO REAL in Munich and
many of the managers were
engaged in cheerful conversations
with business partners,
none of those present knew
that the company founder,
who had recently fallen seriously
ill, was in his death
throes. Claus Wisser, a prime
example of an entrepreneur
who built up an economic empire
without start-up capital,
but with enormous diligence
and a good dose of cleverness,
and who always claimed to
be a fighter, has now lost this
battle. He died at the age of
81.
„Happiness is what you make
of it - you just have to recognise
it,“ he said in a life‘s work
interview I had the pleasure of
conducting with him just over a
decade ago. He was in very poor
health when I met him. Any other
of my many interviewees
would probably have cancelled
this appointment, but not Claus
Wisser. He didn‘t let on and
went through with it.
When he made a promise, he
kept it - no matter what stood
in the way. Reliability and perseverance
always characterised
him. Just like his humanity,
which always resonated in every
situation.
I have had a number of private
encounters with him in recent
years that have reinforced
this impression in my mind. A
friendship developed between
us, which basically came as a
complete surprise due to a variety
of extraordinary circumstances
and unfortunately ended
far too soon.
Claus Wisser was a pioneering
spirit, a courageous go-getter,
a socially committed entrepreneur
and a lover of culture
- but above all, he was always a
person who stood up for values
and projects that were close to
his heart.
„With what my father achieved
as a person, he is a role model for
Claus Wisser, as he would like to be remembered, passed away on Wednesday at the age of 81. Photo:
WISAG
us all. He made WISAG what
we are today: a family business
with a strong set of values and a
clear attitude. This humanity is
the core of his success - and has
become an integral part of our
WISAG DNA. We will sorely
miss him,“ said his son Michael,
current CEO of the WISAG
Group, in an official company
release on Thursday.
Claus Wisser was not only a
passionate entrepreneur, but
also co-founder and Chairman
of the Rheingau Music Festival,
a committed member of the Association
of Friends and Sponsors
of the Johann Wolfgang
Goethe University, a member
of the Board of Trustees of the
Caricatura Museum Frankfurt
and held various supervisory
and advisory board mandates.
On the occasion of the company‘s
50th anniversary in 2015,
he founded the KiWIS Foundation
- WISAG‘s children‘s
charity - together with his son.
Throughout his life, he was recognised
for his extraordinary
social commitment and received
numerous awards. In 2010, he
was awarded the Hessian Order
of Merit for his great voluntary
commitment, and in 2022 he
was also awarded the Federal
Cross of Merit.
Claus, we will miss you!
Thorsten Müller,
Editor-in-Chief TOM

www.wisag.de
Your shopping centre in the best hands
Perfect cleanliness, uncompromising security and optimum service:
all this keeps not only the customers satisfied, but also tenants and
owners. With our tailored solutions and experience, you will benefit
from optimum management costs. And at all times, we have value
retention and the sustained development of your centre in mind.
We go one step further for you.
Joaquin Jimenez Zabala
Tel. +49 162 7861-324 joaquin.jimenez.zabala@wisag.de

Page 13 GUEST CONTRIBUTION October 2023
What makes a modern market hall successful?
Guest article by Dr. Johannes Berentzen (BBE) and Lars Jähnichen (IPH)
Market halls are a statement
against the anonymity
of mass consumption and a
commitment to quality and
community. They have a special
position among all types
of retail property. From the
perspective of developers and
landlords, they are the ideal
type in terms of quality of experience:
they offer a diverse
tenant mix of retail and catering,
which also represents a
stable and diversified source
of income. However, when it
comes to reliable studies, it is
an asset class that has hardly
been systematically analysed.
This is now changing.
As part of a comprehensive
analysis, we examined 30 different
market halls in Germany
to find out which conceptual
differences can be recognised
and which factors are decisive
for their success. These include
market halls within city centres,
in individual districts, but also
those in commercial areas. Our
selection also covers a wide
range of concepts, from traditional
fruit and vegetable markets
to modern event locations with
street food festivals
For decades, market halls have
fulfilled what is expected of
first-class shopping centres today.
People visit market halls
not only to shop, but also to
spend time there, enjoy food
and drink, take advantage of a
wide range of services and, above
all, to socialise. The market
hall continues to be a focal point
in the neighbourhood, a place
where regional traders offer
their products, friends meet for
a coffee and the creative scene
finds inspiration. One key finding
is that very different types
of market hall can be equally
successful. Historic halls with
large sales areas in a central
location have several initial
advantages, such as an established
catchment area, a history of
development with patina and
often impressive architecture.
Smaller, younger halls in district
centres, on the other hand,
position themselves specifically
with a view to sustainability,
freshness, regionality and urbanity.
The success factors of
market halls have changed significantly
in recent years due to
Lars Jähnichen, Managing Director of IPH Handelsimmobilien, and Dr Johannes Berentzen, Managing
Director of BBE Handelsberatung.
changes in shopping behaviour.
Properties that have proven
themselves for decades do not
necessarily have to be equally
successful in the future. Those
who continue to operate existing
market halls without taking
into account changes in competition,
the market and customer
behaviour run the risk of a downward
trend.
Our analysis has shown that
macro-location, micro-location
and the property itself are the
three decisive factors for a successful
covered market. In terms
of macro-location, factors such
as the number of inhabitants
and economic power as well as
the number of commuters and
tourists in the region are essential
for the evaluation of the
halls. The micro-location, i.e.
the exact location of the market
hall, be it in the city centre, in a
district or in a commercial area,
determines the orientation and
function of the hall itself so that
it is accepted by the respective
target customers. The property,
its size, historical background
and image also determine whether
the market hall is also suitable
as an event location or
more exclusively for retail and
catering. Cities with a population
of 150,000 or more are the
ideal size for the successful integration
of a market hall. There
are also particularly promising
prospects for locations that have
a historical connection or are
located in historical buildings.
The infrastructure also plays a
major role here. The ideal market
hall should be easily accessible,
either on foot or by public
transport, preferably less than
250 metres from a bus stop.
Car parking should be available
either in the immediate vicinity
or directly on site. The market
hall should also be open six days
a week to reach a wide range of
visitors, with flexible opening
hours possible depending on the
concept, especially if catering is
the focus.
Market halls in the city centre
benefit from an already high
footfall and tourists, but face
intense competition from food
retailers. It is therefore advisable
to prioritise catering in these
locations.
In city districts, there are generally
fewer passers-by, so it makes
sense to increase footfall by
providing a wide range of food
shops, services and leisure facilities
in the market hall.
The comparison makes it clear
that a successful concept should
always take into account the
local offerings and infrastructure
in the immediate vicinity.
A market hall is particularly attractive
if it offers products and
services that complement the
needs of the local community in
a meaningful way. The integration
of a food outlet fits in well
with this concept and attracts
more visitors.
Market halls are predestined to
sell products from the region.
This is in tune with the times,
as more and more people are focussing
on conscious and sustainable
consumption. In addition,
cultural events with a local connection
attract visitors.
It is also inevitable that market
halls will be ESG-compliant
and sustainably managed in the
future - not only to save energy
and therefore money, but also to
maintain the value of a property.
Conceptually, operators of market
halls should focus on differentiating
themselves even more
strongly from online offerings
by providing customers with
an outstanding quality of stay,
customer-orientated advice and
high-quality products. Where
else in an urban environment
can you ask the producer personally
about the best piece of
meat or the origin of a cheese?

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& enable team collaboration
within a single connected
solution
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managers for all types of commercial real estate to enhance performance
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• Work with detailed lease and financial data in
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• Minimise risk & increase value
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Page 15 INTERVIEW October 2023
„Sticking to our strategy of increasing
the ownership ratio through acquisitions“
Interview with Stephan Koof, Managing Director Real Estate / Expansion at Rewe Group
REWE Group has recently
made positive headlines with
successful transactions as
well as new shop formats and
innovations. TOM editor-inchief
Thorsten Müller spoke
to Stephan Koof, Managing
Director for Real Estate / Expansion.
TOM: The year 2023 is entering
the final spurt; how would
you summarise the past few
months for your area of activity?
Stephan Koof: The trend from
2022 has continued more or
less unchanged, for better or
for worse. Many players in the
property market are almost in a
state of shock, not knowing how
or when to act or simply unable
to do so in light of the changed
framework parameters. However,
as the Rewe Group as a
cooperative is not shareholderdriven
and is also well financed,
we have been able to develop
very well in contrast.
TOM: REWE is also very far
ahead in terms of transaction
business. What are the reasons
for this?
Stephan Koof: When purchasing
a property, we always look
at the KPIs of Opco first and
then those of Propco. And the
final RoR considered for the
decision is then also made up of
both results. This means that we
value properties differently than
a conventional property investor
and therefore have considerably
more leeway in determining the
purchase price. We also have a
lot of equity and have utilised
this to a large extent. Around
80 Rewe and Penny stores were
notarised in 2022. This included
a lot of existing properties, but
also plots of land for project development,
either on their own
or as a complete residential and
commercial building or retail
park. In 2023, the number is expected
to reach 100.
TOM: Supermarkets have undergone
massive design changes
in recent years. What does
REWE prioritise most when it
comes to furnishings, fittings
Stephan Koof, Managing Director Real Estate / Expansion at REWE
Group.
Photo: REWE Group
and product presentation? neighbourhood.
Stephan Koof: Sustainability
is an elementary component of
REWE Group‘s strategy and
mission statement. This includes,
among other things, very
intensive activities for more
sustainable product range design
and the continuous improvement
of our stores. REWE
sees itself as a pioneer in the
sustainable construction and
operation of retail property.
Since 2012, the REWE Green
Building concept has combined
daylight architecture with
energy-saving construction
techniques, the best insulation,
sustainable materials and the
use of renewable energies. The
heating, ventilation, lighting,
air conditioning and refrigeration
systems used there consume
significantly less energy and
have little or no impact on the
environment in terms of CO2
emissions. Overall, REWE has
transformed itself from a monofunctional
grocery store into
a multifunctional food service
provider. In conjunction with
the new location factors, this
makes the supermarket an active
urban building block in the
TOM: You also want to play
a pioneering role when it comes
to sustainability or ESG.
What is important to you
here, but what is perhaps still
causing you difficulties at the
moment?
Stephan Koof: It is of course
important to REWE Group
to continuously improve the
energy efficiency of its stores
through appropriate measures.
In this respect, we are in constant
dialogue with our landlords,
if not owners ourselves. However,
it is not easy to fulfil the requirements
of the owners. With
almost 6,000 rental properties
and a very heterogeneous landlord
and building structure, it
is not possible to find customised
solutions for all locations.
Nevertheless, we take the issue
very seriously and are currently
developing a REWE Group
standard that primarily regulates
the disclosure of CO2-relevant
consumption data and general
ESG clauses in our contracts.
We are confident that we will
soon be able to offer suitable
answers to ESG-relevant questions
and thus make a significant
contribution to CO2 neutrality.
TOM: REWE has repeatedly
surprised us with innovations
in recent times. New shop
formats have emerged and
the delivery of goods is also
breaking new ground. What is
the latest status and what will
happen in this field in the near
future?
Stephan Koof: We always
want to offer our customers new
shopping experiences and are
testing various technological
innovations to make grocery
shopping convenient and easy.
Various projects, such as the
rolling shopping baskets known
as „REWE Lieferbots“ in Hamburg,
the „REWE Pick&Go“
stores for autonomous shopping
in Cologne, Berlin and Munich
or the brand new joint project
„LieferMichel“, which enables
the delivery of groceries via
„Wingcopter“ drone in Michelstadt,
Hesse, help us and our
project partners to learn and
further develop the new technologies
and necessary processes.
Some innovations make it from
the test phase into our standard
system and are deployed at
suitable locations in line with
demand. However, they are always
just a supplement and are
strictly connected to our stationary
business.
TOM: What is your current
assessment of online business
in the food industry? Will it
(continue to) increase significantly
or is it becoming apparent
in practice that it also has
its pitfalls?
Stephan Koof: E-commerce, or
„e-food“ for short, is certainly
not a short-term phenomenon,
but will continue to develop in
the long term and gain market
share. Consolidation is currently
visible in the e-food market.
Financing models certainly also
play a decisive role here. For
companies that rely on financial
investors, the focus is no longer
solely on growth, but on reducing
costs and reaching the profit
zone.

URBAN CREATORS.
Architecture | Development & Project Management
European Council of Shopping Places (ECSP) Awards: Commendation for Best Renovation/Expansion for centres between 15.000 – 45.000 sqm

Page 17
ANALYSES
October 2023
The majority of retailers are focusing on expansion.
Symbol image: Unsplash / Dang Nguyen
Many retailers are expanding
their store networks
Propensity to expand despite high burdens
In a densely competitive environment,
inflation and consumer
restraint are weighing
on retail. At the same time, the
costs of construction, modernization
and, not least, rents
are high: index increases are
driving up cold rents, while
energy prices are pushing up
ancillary costs.
Nevertheless: „The majority of
retailers are once again expanding
their store networks, with
stable and crisis-proof retail
parks, as well as prime locations,
being particularly in demand.
Mixed-use concepts are
also of interest to retailers and
bring positive rather than negative
synergy effects,“ explains
study author Lena Knopf, Project
Manager Real Estate + Expansion
at EHI. Well over half
of the retailers surveyed (57
percent) expect sales to increase
this year, although the assessment
of locations for retail sites
- in line with the difficult general
conditions - shows a significant
deterioration compared to
last year.
Rental market
mixed
The expansion managers surveyed
are most optimistic about
retail parks, with 68 percent expecting
a positive trend. The top
A locations in regional centers
are still rated positively by 26
percent. For all other locations,
only well below 20 percent gave
good marks. Accordingly, retail
parks (77 percent) and prime
locations (68 percent) are the
most sought-after locations for
the actual expansion of retail
companies.
Overall, similar to the previous
year, rents have developed
to their disadvantage in almost
half of the sales divisions (47
percent), due in particular to
index increases as a result of
inflation.
However, this trend does not
exist in all sectors: While rents
have often risen in the DIY and
garden center, furniture, food,
and hobby and leisure sectors,
the majority of sales divisions
in the clothing, footwear and
accessories, and electronics and
telecommunications sectors in
particular report a favorable development
in rents.
No euphoria with
mixed-use
Landlords often accommodate
these retailers in order to secure
locations. Similar to last
year, utility costs have developed
very unfavorably for most
(86 percent) due to high energy
prices, while lease terms
have improved for 45 percent.
Mixed-use concepts are expected
to convince with synergies.
Compared with the previous
year, positive and negative ratings
have declined on average,
while neutral ratings have increased.
55 percent attest to the positive
impact of gastronomy on retail
outlets. Apartments follow in
second place, with 44 percent
each giving them a positive or
neutral rating. Medical practices,
recreational facilities,
senior citizen facilities, kindergartens
and hotels rank next.
Mixed-use therefore does not
seem to trigger any particular
euphoria among retailers in
most cases, but concern only in
exceptional cases.

The art of
investing
Tailor-made investments in German supermarkets
As real estate experts, we invest in grocery stores
and retail parks throughout Germany.
The advantage?
Financially very strong tenants and crisis-proof basic
supply ensure sustainable attractive returns for
investors.
20 years of experience in food retail
Excellent network
Working in partnership
Big plans? So do we.
Talk to us:
Jörn Burghardt • Managing Director
Phone: +49 (69) 756694334 • E-mail: j.burghardt@g-pep.com
GPEP GmbH · Hamburger Allee 26-28 · 60486 Frankfurt/Main GERMANY • www.g-pep.com

Page 19 MAP OF THE MONTH October 2023
GfK: Purchasing Power, Europe 2023
GfK’s Map of the Month for October shows the regional
distribution of purchasing power in Europe in
2023. This year, the average per capita purchasing
power in Europe rises to €17,688. However, there
are significant differences between the 42 countries:
Liechtenstein is in first place with a spending potential
of €68,843 per capita, followed by Switzerland
with €49,592 and Luxembourg with €40,931. The biggest
winner of the year is Ireland, which moves up
four places in the overall European comparison. In
2023, the Irish have a per capita purchasing power of
€26,882, putting them in sixth place.