Shopping Centres Refurbishment and Redevelopment

Case study
Shopping centre redevelopment
Forum Steglitz, Berlin
Project: Forum Steglitz, Berlin
Owner: Hammerson GmbH
Location: Berlin, Germany
Opening: after refurbishment May 2007
Managed by DTZ: January 2002 - March 2009
Number of tenants: 63
Main tenants: H&M, Esprit, Karstadt
Situation before redevelopment
Why refurbish the Forum Steglitz?
• Competiveness of centre decreased within the years
• The shape and size of the units no longer matched the
demands of the retailers
• Few new retailers and poor lease terms
• Growth of competitive retailers and shopping centres in
the neighbourhood and catchment area
• Change of the purchasing/shopping habits of the
customers
• Old building structure, not customer-friendly and modern
• Timeline: good timing because of leases expired
• Retailing on five floors with poor circulation.
10 Shopping Centres Refurbishment and Redevelopment
Main goals
• Increase of rental income - securing of return of
investment
• Improved energy efficiency
• Reducing service charges for tenants and owner
• Co-ordination of planning and construction works
• To keep the centre opened during refurbishment work
• To provide marketing during constructions works to
inform customers.
Results
• Step by step refurbishment without closing the centre
• Analysis of refurbishments goals, target groups, possible
equipment
• Analysis of letting market, demands of tenants and
potential tenants
• Analysis of footfall, customer habits and demands
• Analysis of current leases (e.g. rents, durations, break
options, service charge agreements )
• Refurbishment agreements, short-term agreements and
termination agreements with tenants
• New lettings, owner covered buildings costs for tenants
• New marketing for the centre, newly developed logo.