Still much potential for new shopping centers

This article is based on information that had been researched by Bulwien Gesa.

In 2009 noboy wanted to hear about retail investments. After a strong 2007 and a moderate 2008, the year 2009 can be considered loss-making. According to Bulwien Gesa all this could change for the better in 2010 with many foreign investors leading the group of potential investors. Recently also the Deutsche Bank Think Tank mentioned that Germany is the only country where the real estate market is not very much affected by the crisis and where the risk is more manageable than in its neighbor countries (this was actually about residential investments, but still shows the difference in the EU). Investors who purchased properties with long contracts have not much to fear in 2010 as only a few contracts will expire this year.

In the last year smallish retail park with specialty stores have moved toward the city centers. Many hard started with just one specialty store, later the tradional retailers would come and pull the development back toward the center, away from the greenfield. This has led to a new definition of the city centers, today you might have more than one and with different target groups. Those former retail parks now have the chance to become real "citizens" by being converted into modern shopping temples. 

In the Immobilienzeitung of 28 Jan 2010, Bulwien Gesa published the following data:

• 12 new shopping centers were opened in 2009
• 8 new constructions will be inaugurated in 2010 and 2011
• 5 retail parks are being converted right now
• developers target smaller cities of about 50,000 citizens
• the market can still take about 100 shopping centers

What Bulwien Gesa also mentions is how difficult it is to get a building permit for a shopping center from a German municipality. Sooner or later they have to respond to the pressure of the market.

Today (17 March 2010) ING REIM announced a new shopping center fund. No wonder...