Retail and shopping center management
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: