Growing online retail, shop closures, insolvencies and the Corona crisis. The entire retail industry is facing enormous challenges and so are the owners of retail properties. Apleona Real Estate Management is taking its own approach to this:
Particularly in these times, the focus is on outstanding crisis management, cost-cutting and savings potential as well as future-proof letting management due to rising vacancy rates when operating properties. Sustainability and cost savings often go hand in hand and are gaining priority. Especially due to existing EU requirements and the goal of decarbonising properties, the topic of energy efficiency is becoming increasingly relevant. Based on these requirements, many properties are in danger of being considered stranded assets in the future, with significant reductions in value to be expected.
MUCH SAVINGS POTENTIAL THROUGH ENERGY EFFICIENCY
A few years ago, energy was much cheaper and the topic of energy savings was underrepresented. When upgrading the technology in our properties, we repeatedly come across issues that fell victim to yield optimisation during the original construction. At that time, the main focus was more on design aspects than on energy measures. Retail properties therefore often show great potential for savings and optimisation. In the past few years, we have saved up to six-figure amounts in energy costs per property annually with the Building Advisory Team of Apleona Real Estate Management in a large number of existing properties with targeted measures. The basis for this is the correct reading and analysis of existing consumption and consumption structures. This often results in a number of cost-effective approaches to improving energy consumption, greater transparency of consumption data and longer service lives for existing systems. In connection with other consulting focal points (e.g. ensuring operator responsibility), the Building Advisory division supports real estate in certifications, provides information for benchmarking systems such as GRESB and is very well prepared for the taxonomy requirements of the EU. Here, Apleona Real Estate Management offers its customers the possibility of using internal solutions in the area of quality assurance and energy management in addition to the usual systems in centre and property management. In doing so, the optimisation of the properties is achieved and documented in a "like-to-like comparison" in an ESG-compliant manner. In addition, it is possible to bundle report-relevant information for clients in a transparent manner and to create links in clients' own "carbon footprint systems".
STRATEGIES IN RENTAL MANAGEMENT
While changing consumer and shopping behaviour is increasingly challenging retailers, the global Covid 19 pandemic is further accelerating many trends. Retail locations are facing massive changes. Well-known brands in the market are reducing their space, and the impact on shopping centres is already clearly visible.
As a result of this change, we have professionalised our pop-up store marketing, among other things, and are continuing to expand it. We are currently working on our own marketing platform. In addition to established brands, up-and-coming brands will also be integrated into this platform, which will give them the opportunity to present their products at the locations.
A current example of successful vacancy management is the leasing of a space in the Rheinberg Galerie Bergisch Gladbach. Here we were able to win a vaccination centre as an interim tenant.
We are currently marketing all the space ourselves. Thanks to our established network, we have built up a high level of awareness among potential tenants and receive many enquiries from local interested parties.
For us, the essential basis for sustainable concepts is a clear and functional positioning that is tailored to the property. This results in a targeted and precisely defined letting concept.
We have successfully realised non-retail concepts in managed properties. So far, these have represented a rather small share in the tenant mix of the centres. Examples of this are municipal facilities such as libraries, citizens' offices and the like. Through this, we are further expanding our competence in the "mixed-use" trend and strengthening the regional relevance of the properties.
SHOPPING CENTER MANAGEMENT DURING THE COVID 19 PANDEMIC
In order to be positioned long-term and future-oriented in the field of shopping centre management, it is indispensable to adapt to new requirements of the industry. In addition to the realisation of trends such as more service, the creation of an improved quality of stay and digitalisation, the consistent implementation of all regulations and precautionary measures to contain the pandemic represents our primary goal. We look after the properties entrusted to us in compliance with the applicable hygiene regulations and create individual concepts to provide visitors with a safe shopping experience. An important factor for the realisation of such hygiene concepts is, for example, the modification of the technical building equipment. We are already using new technologies such as UV modules in escalator handrails to kill germs, viruses and bacteria in the Neumarkt Galerie in Cologne, for example. In the future, smart solutions will penetrate the market more deeply. The use of touchless fittings on lifts, doors and info steles makes an important contribution to minimising the risk of disease transmission. These added values stand out in the marketing of a shopping centre and contribute to a higher sense of security among visitors. At times, the innovative robot "Pepper" in Cologne's Neumarkt Galerie has sympathetically encouraged people to wear mouth-nose protection. A pleasant side effect: it quickly functioned as a popular selfie spot and made a contribution to social media advertising. In times of crisis, it is essential as the owner of such a property to take adequate measures and to have a reliable partner at your side who offers a sustainable management solution through the consistent implementation of various factors.
Article by Julia Steinmetz, Head of Retail & Center Management/Nobert B. Löffler, Head of Building Advisory in the EHI Shopping Center Report 2021
