(Essen, 14 July 2020 [14.7.2020]). If the Galeria Karstadt Kaufhof stores cannot be saved from closure, this could also create opportunities for town centres. These stores are always in prime 1A locations, so both the buildings and their sites offer many redevelopment possibilities. This transformation has already succeeded in Essen-Rüttenscheid. The former Karstadt-Hertie site is now home to the renowned RÜ 62 commercial building, which provides jobs for more than 500 people and brings additional footfall to surrounding retailers.

Trade unions, employees and mayors are right to fight the closure of Galeria Karstadt Kaufhof department stores. If it cannot be prevented, however, Essen-based property agent Brockhoff & Partner recommends promptly discussing with the owners whether they are prepared to undertake major conversion work or demolish and rebuild. Demolition is often more cost-effective, says property expert Eckhard Brockhoff, whose network includes numerous investors interested in buying these properties. Despite the coronavirus pandemic, plenty of capital is waiting to be invested in real estate. Brockhoff himself is also interested in locations in the Ruhr region.

“When planning a new concept, it will be important to build a good relationship with the cities and the relevant building authorities. If everything proceeds smoothly, more attractive, modern properties with contemporary uses could be built on the former sites in just 3 to 4 years,” explains Eckhard Brockhoff, who has marketed retail properties nationwide for more than 30 years. The disappearance of department stores such as Kaufring, Horten, Hertie, Kaufhof, Karstadt and others clearly shows that the department-store concept no longer works. Large fashion retailers may soon face the same difficult situation.

In many places, demolition and new construction could be more cost-effective, since existing buildings are often in poor condition after years of deferred investment and their maintenance costs alone are immense.

Brockhoff demonstrated what the future of a former department-store site can look like in the lively Essen district of Rüttenscheid. Together with 2 partners, he demolished the unattractive Karstadt-Hertie building and developed the appealing RÜ 62 commercial property on the same site, with a tenant mix serving both retailers and office users. Reputable tenants include star chef Nelson Müller, Edeka, Deichmann, Aldi, and law and notary firms. “Footfall around the commercial building has tripled because the new tenants are a stronger draw than the old department store,” says the property expert.

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Brockhoff OFFICE is the office-letting division of Brockhoff & Partner Immobilien GmbH, founded in Essen in 1987. The company is the leading real estate firm in the Ruhr region and one of Germany’s leading owner-managed property companies.