Only eight shopping centers are currently being built in Germany. There are a number of reasons for this. Booming online business, extensive approval processes and the development of new building sites thwart development. To stay attractive, operators and investors have to boost revitalization measures and try new experience-driven concepts.
After years of steady growth, German shopping centers now face a revitalization and optimization phase because half of the currently existing 476 centers are most likely outdated and in dire need of renovation. Having said that, increasing online retail presents a far bigger problem. During the “Bau und Betrieb von Shopping-Centern“ Congress (English: Construction and Operation of Shopping Centers), Alwin Lindeman, Managing Partner of hib GmbH projected that “if e-commerce development continues at this rapid pace, we can soon expect a large number of vacancies in town centers and high vacancy rates in shopping centers.” He added that the challenge is to respond to this trend. This is why in the coming years, there will be a focus on a repositioning of shopping centers featuring an experience factor.