TOM 12 2023

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Page 9 INTERVIEW December 2023 „Experience, empathy and creativity are back in demand among center managers“ Skills shortage in the retail real estate sector too - interview with HR expert Jutta Heusel Everyone is talking about the shortage of skilled workers and it affects all sectors; the question is rather how badly the respective sector is affected. „It has certainly affected the retail sector,“ says Jutta Heusel, who has been working as an independent personnel consultant at Kollmannsperger Executive Search in the real estate sector for over 20 years, in an interview with TOM. Due to the rise in e- commerce, bricks-and-mortar retail has been in a difficult market situation for years. It has been hit correspondingly hard, which is why it is very difficult to recruit good employees. Other asset classes have been booming for a long time and have therefore been able to attract the top people. TOM: Ms. Heusel, how is the personnel issue currently affecting the retail real estate segment? Jutta Heusel: Shopping centers in particular have gone through various developments, changes, expansions, repositioning, etc. and with these have always come the corresponding personnel. Originally, one center manager and his or her team were responsible for each shopping center (and thus the corresponding center advertising association). For cost reasons, the team was first reduced and then, for reasons of efficiency, the communal area to be managed was reduced until today‘s development, where one center manager is responsible for several centers at the same time. In a fundamentally good market situation, there are large, successful centers in busy locations and smaller centers that are more tailored to local conditions and their players. The difficulty of this task of managing several centers at the same time is evident in the current market situation. TOM: What are the personnel-related challenges? Jutta Heusel: Smaller centers Jutta Heusel, Managing Partner Kollmannsperger Executive Search GmbH Photo: Kollmannsperger in particular currently require a lot of attention and a high degree of time and creativity in order to process contracts, implement insolvencies and redesign spaces and find new tenants accordingly. This is the technical side. The personnel side is finding suitable staff for the role of center manager. The focus is on people with experience, but they are hardly available on the market. The shortage of skilled workers is having a major impact here. In the past, few new positions were advertised, so there are too few and the experienced ones are usually valued and satisfied. The smaller centers are at a disadvantage because, on the one hand, they have fewer attractive and larger tenants and, on the other, they are in less frequented locations. Nobody wants to manage difficult centers either, as it is not a very promising task to bring about change here. TOM: What does that mean in concrete terms? Jutta Heusel: If in the past a center manager was primarily defined by the size, level of awareness and therefore also the location of his center (and his experience could also be read from this), we currently have new challenges. As there have been more young, inexperienced center managers in recent times, they have not yet been able to experience a crisis and are not used to breaking new ground. At the moment, locations are very different and are drifting further apart than was the case in the past. Large, well-functioning centers, which are controlled by the center manager from the tenant side via the head office, contrast with small, very regional centers that function via local players and also have their difficulties here. Individual action must be taken here. It helps to have a good and trusting relationship with the tenants in order to rethink solution concepts and changes in the use of space together with them. In this way, attractive and functioning centers can be managed again. TOM: How have the tasks in center management changed? Jutta Heusel: If efficiency and maximum space utilization were the focus in the past, individual solutions are currently in demand. Center managers are being taken back into their actual management role because they are no longer simply the administrators of the locations and organizers of the advertising communities of centers, but must approach tenants with creativity and empathy and get them on board in order to develop a successful concept in centers and also in the district. The shortage of skilled workers and the lack of crisis experience are leading to a renewed focus on seniority, which has been dispensed with in many centers in recent years for reasons of efficiency. Experience was often not and could not be afforded. TOM: But why is all this so difficult in practice? Jutta Heusel: The main difficulty is that many center managers are not at all familiar with a crisis situation. Even though online retail has been booming for a long time and is pushing back bricks-and-mortar retail, insolvencies on a large scale have fortunately only been seen recently. Working together with the existing tenant to implement the insolvency and being open to pragmatic and new approaches is uncharted territory for many CM staff and tends to be frustrating. Seniority is once again in greater demand here, because experience also brings strength of nerve and the awareness that solutions can be found with pragmatism and empathy even in difficult times. Perhaps the shortage of skilled workers is also forcing centers not only to tackle new concepts in leasing and space management, but also to respond to pragmatic solutions and flexibility in center management staffing. If managers were shown more appreciation and were once again the caretakers and doers of the center, their position would be strengthened and seen as more attractive in the market. Of course, the shortage of skilled workers cannot be denied, but creativity and flexibility in every respect can provide a remedy so that new concepts can be implemented in a different way and difficult locations can become more attractive.

Page 9 INTERVIEW December <strong>2023</strong><br />

„Experience, empathy and creativity are<br />

back in demand among center managers“<br />

Skills shortage in the retail real estate sector too - interview with HR expert Jutta Heusel<br />

Everyone is talking about the<br />

shortage of skilled workers<br />

and it affects all sectors; the<br />

question is rather how badly<br />

the respective sector is affected.<br />

„It has certainly affected<br />

the retail sector,“ says Jutta<br />

Heusel, who has been working<br />

as an independent personnel<br />

consultant at Kollmannsperger<br />

Executive Search in the<br />

real estate sector for over 20<br />

years, in an interview with<br />

<strong>TOM</strong>. Due to the rise in e-<br />

commerce, bricks-and-mortar<br />

retail has been in a difficult<br />

market situation for years. It<br />

has been hit correspondingly<br />

hard, which is why it is very<br />

difficult to recruit good employees.<br />

Other asset classes<br />

have been booming for a long<br />

time and have therefore been<br />

able to attract the top people.<br />

<strong>TOM</strong>: Ms. Heusel, how is the<br />

personnel issue currently affecting<br />

the retail real estate<br />

segment?<br />

Jutta Heusel: Shopping centers<br />

in particular have gone through<br />

various developments, changes,<br />

expansions, repositioning,<br />

etc. and with these have always<br />

come the corresponding personnel.<br />

Originally, one center manager<br />

and his or her team were<br />

responsible for each shopping<br />

center (and thus the corresponding<br />

center advertising association).<br />

For cost reasons, the team<br />

was first reduced and then, for<br />

reasons of efficiency, the communal<br />

area to be managed was<br />

reduced until today‘s development,<br />

where one center manager<br />

is responsible for several<br />

centers at the same time.<br />

In a fundamentally good market<br />

situation, there are large,<br />

successful centers in busy locations<br />

and smaller centers that<br />

are more tailored to local conditions<br />

and their players. The difficulty<br />

of this task of managing<br />

several centers at the same time<br />

is evident in the current market<br />

situation.<br />

<strong>TOM</strong>: What are the personnel-related<br />

challenges?<br />

Jutta Heusel: Smaller centers<br />

Jutta Heusel, Managing Partner Kollmannsperger Executive Search<br />

GmbH Photo: Kollmannsperger<br />

in particular currently require<br />

a lot of attention and a high<br />

degree of time and creativity in<br />

order to process contracts, implement<br />

insolvencies and redesign<br />

spaces and find new tenants<br />

accordingly. This is the technical<br />

side. The personnel side is<br />

finding suitable staff for the role<br />

of center manager. The focus is<br />

on people with experience, but<br />

they are hardly available on the<br />

market. The shortage of skilled<br />

workers is having a major impact<br />

here. In the past, few new<br />

positions were advertised, so<br />

there are too few and the experienced<br />

ones are usually valued<br />

and satisfied. The smaller<br />

centers are at a disadvantage<br />

because, on the one hand, they<br />

have fewer attractive and larger<br />

tenants and, on the other, they<br />

are in less frequented locations.<br />

Nobody wants to manage difficult<br />

centers either, as it is not a<br />

very promising task to bring about<br />

change here.<br />

<strong>TOM</strong>: What does that mean<br />

in concrete terms?<br />

Jutta Heusel: If in the past a<br />

center manager was primarily<br />

defined by the size, level of<br />

awareness and therefore also<br />

the location of his center (and<br />

his experience could also be<br />

read from this), we currently<br />

have new challenges. As there<br />

have been more young, inexperienced<br />

center managers in<br />

recent times, they have not yet<br />

been able to experience a crisis<br />

and are not used to breaking<br />

new ground. At the moment,<br />

locations are very different and<br />

are drifting further apart than<br />

was the case in the past. Large,<br />

well-functioning centers, which<br />

are controlled by the center manager<br />

from the tenant side via<br />

the head office, contrast with<br />

small, very regional centers that<br />

function via local players and<br />

also have their difficulties here.<br />

Individual action must be taken<br />

here. It helps to have a good and<br />

trusting relationship with the<br />

tenants in order to rethink solution<br />

concepts and changes in the<br />

use of space together with them.<br />

In this way, attractive and functioning<br />

centers can be managed<br />

again.<br />

<strong>TOM</strong>: How have the tasks in<br />

center management changed?<br />

Jutta Heusel: If efficiency<br />

and maximum space utilization<br />

were the focus in the past, individual<br />

solutions are currently in<br />

demand. Center managers are<br />

being taken back into their actual<br />

management role because<br />

they are no longer simply the<br />

administrators of the locations<br />

and organizers of the advertising<br />

communities of centers,<br />

but must approach tenants with<br />

creativity and empathy and get<br />

them on board in order to develop<br />

a successful concept in<br />

centers and also in the district.<br />

The shortage of skilled workers<br />

and the lack of crisis experience<br />

are leading to a renewed focus<br />

on seniority, which has been<br />

dispensed with in many centers<br />

in recent years for reasons of efficiency.<br />

Experience was often<br />

not and could not be afforded.<br />

<strong>TOM</strong>: But why is all this so<br />

difficult in practice?<br />

Jutta Heusel: The main difficulty<br />

is that many center managers<br />

are not at all familiar with<br />

a crisis situation. Even though<br />

online retail has been booming<br />

for a long time and is pushing<br />

back bricks-and-mortar retail,<br />

insolvencies on a large scale<br />

have fortunately only been seen<br />

recently. Working together with<br />

the existing tenant to implement<br />

the insolvency and being<br />

open to pragmatic and new approaches<br />

is uncharted territory<br />

for many CM staff and tends<br />

to be frustrating. Seniority is<br />

once again in greater demand<br />

here, because experience also<br />

brings strength of nerve and the<br />

awareness that solutions can<br />

be found with pragmatism and<br />

empathy even in difficult times.<br />

Perhaps the shortage of skilled<br />

workers is also forcing centers<br />

not only to tackle new concepts<br />

in leasing and space management,<br />

but also to respond to<br />

pragmatic solutions and flexibility<br />

in center management staffing.<br />

If managers were shown<br />

more appreciation and were<br />

once again the caretakers and<br />

doers of the center, their position<br />

would be strengthened and<br />

seen as more attractive in the<br />

market.<br />

Of course, the shortage of skilled<br />

workers cannot be denied,<br />

but creativity and flexibility in<br />

every respect can provide a remedy<br />

so that new concepts can<br />

be implemented in a different<br />

way and difficult locations can<br />

become more attractive.

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