Real estate consultant Savillis sees some positive aspects in the structural change in the retail sector. While some trade associations predict the end of the inner city and a death of stores, Savillis also sees opportunities in the crisis and a restructuring of the inner cities. Foremost among these is the argument that prime rents in downtown areas and high streets will fall in the retail real estate sector, which in turn will open the doors to other industries and ideas.
Supermarkets or furniture manufacturers, for example, are increasingly able to open their stores in shopping streets thanks to the low rents. Other concepts, such as flexible workspaces, can also afford store rents in city centers. Even companies that have previously only sold their goods online could now open a stationary branch. This is because not only will rents fall, but the design of leases will also become more flexible. For example, lease terms will be shortened or leases will be concluded with turnover-based rents.
If the trend toward home offices and mobile working continues, there will also be greater demand for catering and supply needs close to home. It is conceivable that satellite offices will also find their way into city centers. Opportunities are also emerging for investors. Investors who are willing to take risks in particular have the opportunity to invest in former high-frequency properties in city centers at comparatively low cost and then design them with innovative concepts and a diverse mix of users.
Source: Savillis
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