After a prolonged period in which many retail chains were cautious about expanding in city centres, retail properties are enjoying a revival. Where chain stores dominated just a few years ago, independent businesses and local retailers now have the opportunity to move into prime 1A city-centre locations. “Lower rents have naturally helped this trend. Retail units are once again attractive to a broader range of tenants. This also makes restaurant concepts, non-food discounters and even food retailers potential tenants,” says Bert Pfeffer, who has marketed retail properties in prime 1A locations since Brockhoff was founded and has helped shape the story of German city centres for nearly four decades. “Chains and independent retailers are seizing the moment to optimise their locations, which is also driving up letting activity,” he adds.
As independent retailers move into city centres and letting activity rises, prime 1A-location retail buildings are becoming more attractive to investors again. A shop leased on a long-term basis on the ground floor significantly increases a property’s sale value. Brockhoff recently advised on the successful sale of high-quality retail buildings on central shopping streets and pedestrian zones in Duisburg, Herne, Brilon, Soest and Minden, as they are once again valued as lucrative investments. “We have not marketed as many retail properties in prime 1A locations for years as we are doing now,” says property expert Pfeffer. “The revival of city centres through retailers, restaurants, food shops and providers of everyday goods offers major opportunities for property investors. Many have already recognised this and are now securing the best properties for their investment strategy.”
Brockhoff built its business more than 37 years ago by marketing shops and retail buildings in prime 1A locations. The current trend confirms the company’s strategy of staying committed to this asset class even in difficult times. Brockhoff plans to further intensify its work to revitalise city centres by marketing retail properties in prime 1A locations.
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About Brockhoff
Brockhoff GmbH is one of Germany’s leading commercial real estate brokers and the market leader in the Ruhr region. The owner-managed company, based in Essen, was founded by Eckhard Brockhoff in 1987 and has extensive expertise in marketing properties across the OFFICE, INVEST, RETAIL and LOGISTICS sectors, built on over 35 years of experience in real estate. Its portfolio includes the nationwide sale of office and investment properties, office leasing with a focus on the Ruhr region, the brokerage of retail properties in prime 1A locations in small, medium-sized and large German cities, and the leasing and sale of logistics properties. In 2021, SORAVIA, one of Europe’s leading real estate groups, through its investment holding company ADOMO acquired a 41% stake in the company. The remaining 59% is still held by founder and Managing Partner Eckhard Brockhoff.