New study “The Tenant in Focus 2017/2018”: the biggest ever shake-up in the fashion sector

The transformation process in German retail is the focus of a new report “Der Mieter im Fokus 2017/2018 – Handelsimmobilien neu denken“ (The Tenant in Focus 2017/2018 – rethinking retail real estate). This is the third study produced by ILG in collaboration with BBE Handelsberatung and Berlin Hyp, and focusses on the requirements and future expectations of tenants of retail properties.

Agglomerations are still the most highly sought-after locations for food retailers. Non-food retailers tend to prefer managed retail parks and shopping centers. In addition to the food segment, drugstores are also gaining in importance as anchor tenants and are even viewed as preferred neighbours by other retailers.

The fashion sector is driving the integration of multiple sales channels both online and in-store. The retailers must react to the challenges created by advancements in the vertical integration of value-for-money fast fashion retailers and, not least, the boom in online retailing. The proportion of retailers now operating their own online shop has risen by almost a quarter since 2015. The sales area has also become increasingly digital. Click-and-collect is early evidence of the increased digitalization of retail business. More finely-tuned marketing tools such as in-store marketing are being successively rolled out.

The tenant still expects the manager to provide individually tailored solutions. The anchor tenants in particular focus on the overall advertising image of a center. More and more food retailers and drugstore operators are prepared to contribute to the advertising budget. The turnover rent is becoming increasingly popular with tenants, but the fixed base rent is still by far the most prevalent. 940 operators in the retail and restaurant sectors were contacted to take part in the survey.


Joachim Stumpf

BBE Handelsberatung München
Brienner Str. 45
D-80333 Munich

Tel.: +49 89 55118-143
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