This week, I was at the developer Midstad in Frankfurt. The Urban Land Institute (ULI) had invited to the Urban Start, which focused on inner-city development. As I can still remember the days when retail in the centers of large cities with competing chain stores was a surefire success, I am following the transformation of German city centers with interest. Whereas in the past, retail attracted people to city centers in droves, changing consumer behavior, higher vacancy rates, and increased insolvencies are forcing owners to take action.
Many retailers are now avoiding the upper floors of commercial buildings. As a result, owners must develop new utilization concepts to counteract vacancies. Midstad, as a project developer of retail properties for fashion company Peek & Cloppenburg, has set itself the goal of transforming monoused retail properties into sustainable mixed-use concepts. Classic inner-city commercial buildings, which dominated in the past, no longer have a future. Therefore, the conversion of the Peek & Cloppenburg building on Frankfurt's Zeil envisages mixed use with a school, sports hall, offices, hotel, and restaurants. The clothing store will only occupy the lower floors.
It was an interesting evening, and private companies showed a lot of foresight in counteracting the desolation of city centers. The cities are just as challenged here, especially regarding cleanliness and quality of stay.
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