Inner cities
Brokers: Competition for trading space in prime locations is increasing
Many businesses are having a hard time in times of online trading and thrifty consumers. But in prime locations in German cities, large areas are contested. One industry in particular is active.
Competition for retail space is increasing in the top locations of the most important German shopping cities. According to figures from real estate specialist Jones Lang LaSalle (JLL), the proportion of available retail space and stores in the prime locations of the nine largest shopping cities fell to just over 15 percent in the second half of the year, slightly less than a year earlier.
This proves the resilience of stationary retail even in difficult economic times, said Anika Korsos, retail real estate expert at JLL. “At the same time, the current values are still a long way from those before the pandemic, when 11.5 percent of the shops and 7.5 percent of the retail space were available in top locations.”
The development in the top locations of major cities contrasts with the retail situation in many cities, which are characterized by closures and vacancies. The German Trade Association (HDE) expects around 5,000 shops to close this year.
Fashion retailer rents large spaces
The quota at JLL includes vacancies, but also spaces for which the rental agreement expires within 18 months, that is under renovation or for which a new tenant is being sought. Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Munich, Stuttgart, Leipzig and Hanover were considered in the analysis.
One reason for the upward trend in major cities is large, often international fashion retailers who are increasingly renting space of more than 1,000 square meters, explained JLL. However, these are in short supply in top locations. At the same time, in some cities, retail spaces have been converted like former department stores, so that the supply of space is decreasing.
Despite all the adversities for retail, prime rents remain high, JLL continued. Munich with Kaufingerstrasse is the most expensive at 340 euros per square meter per month, ahead of Berlin with Tauentzienstrasse (290 euros) and Frankfurter Zeil (270 euros). This puts the cities far behind the European leaders: on the Champs-Elysées in Paris, the top rent was 1,708 euros per square meter, around five times as much as in Munich. This was followed by Zurich with 905 euros, Geneva (618) and London (586).
dpa
Source: Stern
