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How did 2023 go? And how is 2024 looking? 

Joanna Fisher:  Overall, shopping centers have once again proven very resilient during the crises of the past few years. And the figures show that our center portfolio has continued to develop positively too: We were able to increase our rental performance by almost 50% year on year to 800,000 m2, sign additional rental agreements with many of our existing tenants, and acquire many attractive new tenants for our centers. Footfall has also increased by 7.4% since 2022. Sales growth has been even stronger (9.7%) and our initial results for 2024 are positive too. In other pleasing news, our subsidiary ECE Türkiye has successfully grown ts management portfolio.

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What challenges are you currently facing?

The challenges are highly varied. In Germany, the recent crises have hit many companies’ finances hard, which unfortunately has led to a sharp rise in businesses going under. We’ve been doing well at acquiring suitable new tenants, and so the vacancy rate for our portfolio has only risen slightly. But approval processes take far too long, which means that openings of new shops are often delayed unnecessarily. So it’s important that we take a very proactive approach. For instance, during the first wave of department store closures in Germany, we developed ideas for possible new future uses for all affected units, so that we could move as quickly as possible. Internationally, we warmly welcome the challenge of managing the booming cross-border business and assisting retailers with their expansion into various countries.

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What are the hallmarks of a successful shopping center? 

A good, successful shopping center must have a clear profile that’s a good fit for its location, either as a local shopping center or a destination center. It also needs a suitable tenant mix with attractive anchor tenants and high-quality services and facilities. Special activities and events can also increase footfall and ensure that shopping centers are seen as community hubs, not just places to go shopping.

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What trends and developments are you seeing at the moment?

We are seeing restaurants becoming a more important part of the shopping center experience. There’s a growing casual dining trend, including chains like L’Osteria, The Ash, and Alex. Mixed-use concepts are on the rise too. For many centers, leisure and entertainment amenities, like those at the Rhein-Neckar-Zentrum or The Playce, are crucial to expanding their existing offering and so increasing their appeal, though that depends greatly on a center’s location and positioning.