The German Trade Association (HDE) is demanding concessions from property owners when it comes to shop rents. “The rental prices at the moment do not reflect what the market is able to pay,” said HDE President Alexander von Preen to the German Press Agency in Heilbronn.
This applies to stationary retail as well as to culture, cabaret and gastronomy. The landlords would have to take a step towards these players and reduce the rent level again to a level that is appropriate for the current situation.
“The fact that rents only go up is over. The premises must be rented under conditions that are compatible with a retail concept,” said von Preen, who is also the head of Intersport Germany. He called on landlords to work together with retailers on new concepts. “And now, and not just when the business is threatened with failure.”
Talk about creative framework conditions
Because this is already practiced in insolvency proceedings. “If the business model is sustainable, the rent is discussed with the landlords, among other things. And this is usually agreed to be lower, not higher,” said von Preen. “My request would be: Don’t let it get to that point, but talk about creative framework conditions beforehand.”
In the past year, several well-known chains have completely or partially withdrawn from German shopping streets. Many small shops also gave up: the HDE had already predicted earlier in 2023 that around 9,000 shops could close their doors forever. In a normal pre-crisis year there were always around 5,000 stores. If the forecast is confirmed, there will be 311,000 stores left nationwide apart from small businesses. For comparison: in 2015 there were almost 373,000.
HDE President: Revitalization of cities
According to the HDE President, there should also be a guide on the topic next year. The content is the successful partnership between the various actors in German city centers. Von Preen also considered so-called sales-based rents to be practical. In addition to a basic amount, tenants pay the landlord a certain proportion of the sales generated in the rental property.
However, the HDE President rejected state requirements. Von Preen said he hopes that landlords and tenants will find solutions on an equal footing. If this succeeds, a thriving city will also be possible in the future.
