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Improving the offer: Shopping centres in Germany are in transition, and that provides an investor opportunity
- October 1, 2017: Vol. 11, Number 09

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Improving the offer: Shopping centres in Germany are in transition, and that provides an investor opportunity

by Martin Mörl

The revolutionary structural change that is taking place in the retail sector worldwide has also reached the shopping centre market in Germany. With rising purchase prices and the effect of Amazon on everyday life, it is not getting any easier for institutional and private investors to generate suitable returns on German shopping centres. However, there are some areas in which investors can take action on footfall to ensure and increase customer frequency, duration of stay and revenue, and this will also have benefits for future rental income. In Germany and other European countries, the retail sector is undergoing a comprehensive structural change. While its momentum is slowing, the market share of online retail is growing all the time, competition with bricks-and-mortar shops is increasingly intense, tenant changeovers and vacancies in many shopping centres are on the rise and foot traffic is falling, especially in weaker cities. This is all having a direct impact on shoppin

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