Retail and shopping center management

Shopping center
main entrance

Commercial center

Commercial center
Großziethen/ Berlin

Commercial center

Kaiserhof Atlantic
shopping center

Mixed-use building

Over the last decades changes in the economy have caused big shiftings and processes of concentration in the retail sector. Big box stores have replaced in many sectors the specialized small and midsized stores. And there is still an unbroken trend for even bigger retail units.

In addition to the modified requirements for retail space the population decrease especially in the East German States has had an impact on the retail sector.

Since 1990 there has been a decline of 20 – 25 % in the number of inhabitants in many towns in Brandenburg, Saxony-Anhalt and Mecklenburg-Western Pomerania. This trend should continue in the following years. The current surplus of rentable space areas is therefore being confronted with a decrease of purchasing power and population. This will result in ruinous tendencies in the letting of new premises and in the renewing of existing leases.

The key for the successful positioning of retail and office spaces on the market is to provide an active center management, including restructuring and revitalizing measures. Even minor mistakes in the planning or conception could render a letting more difficult, or make it impossible, which could lead to economic ruin especially for smaller commercial centers.

Active asset management means to anticipate problems at the beginning, to develop a feasibility study and to realize a succesful repositioning concept. According to this a passive management style is not up to date considering the terific economic changes.

Responsibilities of a professional asset management:
Development of sector oriented concepts
Development of a customer oriented tenant mix
Creating connections to expanding retailers
Publicrelation to the authorities, associations,
political representatives etc.
Managing of the advertising association
Well-directed competition monitoring of competing centers
Negotiations with service providers, craft businesses and
maintenance services
Efficient cost control management of the operating expenses
Control of warranties
Optimization of the tenant structure by continuous adjustment
to the market
Just on time support of home automation by trained janitors
or other qualified businesses (maintenance, repairs etc.)
Image creation and realization of a center philosophy
Development of a media and activity plan
Organization of events, celebrations etc.
Supporting the commercial leaser with the organization
of their product line
Determination of the purchasing power potentials in the regional area