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DÜSSELDORF ONE OF GERMANY’S MOST ATTRACTIVE RETAIL LOCATIONS NOVEMBER 2016
DÜSSELDORF
ONE OF GERMANY’S MOST ATTRACTIVE RETAIL LOCATIONS
NOVEMBER 2016
COMFORT City Report Düsseldorf 2016 2 von 11
IN FIGURES Federal state: North Rhine Westphalia
Inhabitants: 612,178
Population development: + 1.3 %
Employees: 388,613
Unemployment rate: 7.5 %
Purchasing power: 117.6
Centrality parameters: 116.2
Relevant shopping centres: Schadow Arkaden (C), SEVENS Home of Saturn (C), Kö-Galerie (C), Stilwerk (C), Düsseldorf Arcaden (S) Rheinpark-Center Neuss (P)
C=City S=District P=Outskirts
Cosmopolitan Düsseldorf is the regional capital at the heart
of the Rhine-Ruhr Metropolitan Area. It has an international
business mix with a focus on telecommunications, chemicals
and life sciences, and a strong reputation as an advertising,
fashion and banking centre. Numerous consultancy firms
have also chosen this city as their home base. Düsseldorf is
expanding at a faster rate than anticipated and it now has a
population of more than 600,000, which makes it Germany’s
seventh largest city. Current Regional Statistical Office
forecasts project further growth of 8.6 percent by the year
2030. Düsseldorf is regularly among the highest-ranked
cities in the world for its quality of life.
5,000 foreign institutions, an exhibition centre and
Germany’s third-largest airport all contribute to the city’s
strong foreign trade sector. Düsseldorf also boasts the
internationally renowned Königsallee shopping boulevard.
Around nine million consumers live within a 50km radius.
Düsseldorf is investor-friendly and its City Council invests
generously in a range of projects, such as the extension of
its underground train network, new residential areas and
public facilities.
THE CITY'S SIGNIFICANCE AS A RETAIL LOCATION
The city – a centre for chic fashion as well as trade fairs –
has been experiencing uninterrupted growth in population
and property investments for years. Its high amenity value,
diverse international retail concepts, good accessibility and
abundance of inner city parking spaces are some of the
reasons why Düsseldorf is one of the most attractive and
healthy retail locations in Germany. Illustrious and
internationally famous high streets combined with a forward-
looking urban planning and development concept have
raised Düsseldorf’s profile as a top shopping destination.
The city has above average centrality and purchasing power.
“Düsseldorf’s central city zone is currently generating almost
EUR 1.6 billion in retail sales,” commented COMFORT
Managing Director Jürgen Kreutz.
Inner city retail sales account for a substantial 38 percent of
the city’s total revenue (on a total retail sales area of around
1 million square metres). This is a considerably higher retail
sales contribution than that of similarly sized German cities
and a clear indication of Düsseldorf city centre’s strength.
0
50
100
150
200
250
300
06 07 08 09 10 11 12 13 14 15 16
Prime retail rents
from 2006 - 2016 in EUR/m²
80-120m² 300-500m²
Source: state statistical offices, GfK GeoMarketing GmbH, Federal
Employment Agency
Source: COMFORT Research & Consulting
0 10 20 30 40 50
Proportion of retail space
in %
Proportion of sales in %
City centre area Düsseldorf Ø 500T - 1 Mio. Inhabitants
COMFORT City Report Düsseldorf 2016 3 von 11
CATCHMENT AREA
0 25 50 75 100 125 150
Stuttgart
Munich
Cologne
Hamburg
Frankfurt am Main
Düsseldorf
Berlin
Purchasing power Centrality parameters
PURCHASING POWER AND CENTRALITY PARAMETERS
0 50 100 150 200 250
Stuttgart
Munich
Cologne
Hamburg
Frankfurt am Main
Düsseldorf
Berlin
FASHION CENTRALITY
Source: COMFORT – Research & Consulting
Source: GfK GeoMarketing GmbH
Source: COMFORT – Research & Consulting, base map RegioGraph
One of Düsseldorf’s most impressive retail statistics is its
very high purchasing power index of 117.6 (national
average = 100). This puts it among the top seven German
cities and in second place behind Munich in terms of
purchasing power. Another impressive statistic is
Düsseldorf’s per capita retail sales area of more than 1.64
square metres. A centrality index ranking of 116.2 also puts
Düsseldorf among the leading German cities (third place).
The catchment area has around two million residents and
extends far beyond the city boundaries into the Ruhr region
to the north, Wuppertal to the east, Krefeld and
Mönchengladbach to the west and Leverkusen to the
south. The Rhine-Ruhr conurbation is also one of Europe’s
the most densely populated regions.
Düsseldorf is also a very popular shopping destination for
tourists and trade fair visitors. COMFORT’s Research
Director Olaf Petersen points out that Düsseldorf came an
impressive second after Munich in the German-wide
COMFORT City Ranking 2016 (in which the cities are
benchmarked using 35 parameters). This excellent retail
performance reflects the concentration of retailers in
Düsseldorf city centre. In 2015, around 35 percent of the
city’s retail space was concentrated on Königsallee,
Schadowstrasse, the Altstadt historical district, and on the
peripheral streets (including Steinstrasse, Grünstrasse,
Bahnstrasse, Blumenstrasse and Graf-Adolf-Strasse).
COMFORT City Report Düsseldorf 2016 4 von 11
This concentration is very similar to that of Stuttgart, and these are the two German cities with the highest
proportion of retailers in the city centre. However, the Düsseldorf city centre retail scene offers both quantity and
quality to shoppers, which is why the city as a whole has such extraordinary appeal. Illustrious and internationally
renowned high streets, major brands and a forward-looking urban planning and development concept make
Düsseldorf one of Germany’s most attractive shopping destinations. The next stage of the Kö-Bogen II urban
development project will contribute to the gentrification of the future Schadowstrasse pedestrian zone and give the
city another status boost.
TOP SHOPPING DESTINATION
Düsseldorf is one of Germany’s top shopping destinations as a result of both the size and the diversity of its
vibrant and very different retail districts. The ‘Kö’ and the ‘Altstadt’ historical district are internationally famous.
Düsseldorf city centre is seeing major changes taking place thanks to a raft of development projects that are being
implemented to make the city more attractive. These include the Kö-Bogen I and II developments, the new
Wehrhahn underground rail line and road tunnel under Schadowstrasse and Jan-Wellem-Platz, the redesign of the
Schadowplatz plaza and the extension of the Schadowstrasse pedestrian zone.
Another milestone in Düsseldorf City development: Kö-Bogen II Source: Centrum Group
COMFORT City Report Düsseldorf 2016 5 von 11
PRIME RETAIL RENTS in EUR/m²
PRIME LOCATIONS
KÖNIGSALLEE
One of Europe’s most popular luxury shopping boulevards
Approx. 800 m in length with a landscaped waterway running down the centre
and vehicle traffic on either side
High footfall
Mix of luxury brands and fashion labels
Pleasant ambience due to cafés and restaurants with outdoor seating
New tenants: Harry Winston, Chanel, Patrizia Pepe, Maje, Tesla (at Kö-
Bogen), Navy Blue (Jil Sander), Escada, Illy (Kö-Galerie), Kaviar Gauche
Current average rent EUR 280/m²
SCHADOWSTRASSE
High street with department stores and clothing stores
High footfall
Best section of the pedestrian zone between Königsallee and the P&C store
The section of road open to vehicle traffic still has a ‘right’ and ‘wrong’ side to
be on – which will change as a result of the new pedestrian zone on
Schadowstrasse and the Kö-Bogen II project
New tenants: CCC Schuhe, Tally Weijl, Telekom, Calvin Klein Underwear
(Schadow-Arkaden)
Current average rent EUR 240/m²
FLINGER STRASSE
‘Young’ approx. 300 m pedestrian zone in the ‘Altstadt’ historical district
Predominantly young fashion labels
Best section between Kasernenstrasse and Mittelstrasse
New tenants: Kiko Milano, Rituals, Vine Vera, Kiehl’s, Vodafone
Current average rent EUR 220/m²
MITTELSTRASSE / GRABENSTRASSE
High street with good footfall
Diversified sector mix
Best section between Flinger Strasse and Carlsplatz / Kasernenstrasse
New tenants: Aesop, Caudalie, Levi’s, Bob & Mary, Pasta to Go (both
Carlsplatz), Caroline Bliss, ba&sh, Oliveda, Tchibo
Current average rent EUR 140/m²
THE SHOPPING DISTRICTS
“We have one of Europe’s most popular luxury shopping boulevards! Königsallee’s attractive atmosphere and high
footfall make it unique among Germany’s luxury high streets,” explained retail expert Jürgen Kreutz. Luxury,
upmarket and high street fashion retailers benefit from being located in a high-end neighbourhood with good
accessibility and store facades that reflect or can be adapted to reflect the brand. Consumer-oriented retailers can
count on high footfall and plenty of spontaneous purchases in accessible retail premises with large entrances. The
280
80-120 m²
145
300-500 m²
240
80-120 m²
125
300-500 m²
220
80-120 m²
105
300-500 m²
140
80-120 m²
75
300-500 m²
COMFORT City Report Düsseldorf 2016 6 von 11
Chanel quadrupled its sales floor by relocating
Harry Winston, Königsallee 10
Königsallee has everything: luxury labels as well as upmarket brands and high street retailers such as H&M and
Zara. It also has many cafés and restaurants with outdoor seating, which adds to its appeal. “It’s a very
successful concept,” said Kreutz. “The Königsallee has impressive footfall figures for this kind of a luxury location.”
Numerous international luxury labels are
queueing up for the opportunity to move
into a retail unit on this internationally
coveted shopping boulevard. Others are
optimising their retail space, and Chanel
has just ‘found’ the perfect flagship store,
quadrupling its retail space to around 350
square metres by moving to the former
Lichtburg cinema and implementing its
new interior design concept for the first
time in Europe.
Harry Winston has opened his first boutique in Germany at a three-storey outlet in number 10 Königsallee. The
Cologne-based Koerfer Group is investing over 65 million euros in its CROWN project on the southern part of
Königsallee to transform a former department store on the corner of Berliner Allee / Graf-Adolf-Strasse into a
12,000 square metre food temple. In spring / summer 2017, the Zurheide family, which operates several EDEKA
supermarkets, will be opening an exclusive supermarket in the basement. It will be joined by premium restaurants
and cafés on the ground floor, including a grill, a gourmet bistro, a sushi bar, a chocolate and ice-cream parlour,
salad bars etc. The entire top floor will be converted into a car park.
“All the redevelopments taking place on Königsallee are gradually
blurring the strict segregation of the street into a banking side and a
shopping side,” added Kreutz. “New tenants Versace, Barbara
Frères, Zadig & Voltaire and Hermès are joining existing tenants
Abercrombie & Fitch and Nespresso at number 21-23 Königsallee,
which is a clear indication of the significant changes that are taking
place here.” A building ensemble that is being developed by HINES
on the west side of Königsallee is scheduled for completion in 2017.
It is called the ‘Kö-Quartier-Ensemble’ and comprises seven
buildings – including the Deutsche Bank property with the largest
counter hall in Germany – offering 55,000 square metres of office
and retail space, 420 parking spaces and a 140 metre-long frontage
facing onto Königsallee.
The 'Kaufhof an der Kö' building is the first property to be restructured by Canadian owner Hudson Bay Company (HBC). HBC will be investing over 1 billon euros throughout Germany in its department store concept over the next 5-7 years.
Approximately EUR 32 million will be invested in the restructuring of
the Düsseldorf Kaufhof department store between now and 2018.
The food hall in the basement already was replaced with ladies’ shoes, hosiery and lingerie departments.
Handbags and cosmetics will be on sale on the ground floor, there will be a café on the first floor and additional
sports article ranges and toys on the third floor.
COMFORT City Report Düsseldorf 2016 7 von 11
Owner invested EUR 32 million in restructuring
New Basement in the 'Kaufhof an der Kö'
Directly opposite, HBC is opening the first
‘Saks Off 5th’ store in Germany selling
designer fashions on an area of approx.
3,500 square metres on the upper floors of
the Carsch-Haus building on Flinger
Strasse. The lower floors will house the
Kaufhof department store’s home textiles,
decorations and home departments, and
the adjoining food court will be retained.
Flinger Strasse is the street with the highest
footfall in the ‘Altstadt’. Demand among
upmarket retailers and consumers has
developed very positively on Mittelstrasse,
and especially Grabenstrasse and rents in
that area have doubled in recent years.
The genres of retailers in the historical
Altstadt differ from street to street.
Flingerstrasse has beautiful historical
buildings with young fashion labels. The
‘Altstadt’ doesn’t have many flagship stores
and the retail units there are smaller than
those on Schadowstrasse. Mittelstrasse,
which leads to the Carlsplatz market area,
has a diverse mix of retailers. There are
stores selling cosmetics, homeware shops,
shoes and leather goods retailers and
international sportswear labels.
Many years ago, ‘Jades’ on Grabenstrasse
sparked the evolution of this street
connecting Königsallee and the ‘Altstadt’
into an upmarket location. It was soon
joined by numerous fashion labels such as
Closed, Liebeskind, Caroline Bliss, ba&sh,
the first Lilou jewellery store and Aesop.
This has sustained the positive trend in
footfall figures. Grabenstrasse runs into
Trinkausstrasse – another connection
between the Altstadt and Königsallee that has been upgraded following the modernisation of the famous
Trinkauspassage shopping arcade and the arrival of tenants such as Versace and 0039 Italy.
Several cosmetics retailers such as KIKO Milano, Vine Vera, Kiehls and Rituals on Flinger Strasse, Caudalie on
Mittelstrasse and Aesop on Grabenstrasse are recent additions to the Altstadt. Trendy new retailers such as
ba&sh (Grabenstrasse), Levi’s and Diesel (coming soon to Mittelstrasse) make this area surrounding the market
even more attractive. Grabenstrasse and Mittelstrasse are the high-end, trendy streets leading to the famous
weekly market on Carlsplatz that have been evolving into increasingly desirable locations for some years now.
COMFORT City Report Düsseldorf 2016 8 von 11
Jury decision on the Schadowstrasse conversion Quelle: Bruun & Möllers
Long-established retailers upgrade their stores
IMPORTANT DEVELOPMENTS IN THE CITY CENTRE RETAIL SCENE
The very successful Kö-Bogen development, the prestigious Kö-Bogen II retail property development project (all
lettings are being handled exclusively by COMFORT) and the associated enhancement of the Schadowstrasse
when the pedestrian zone is completed in 2017/ 2018 will further improve Düsseldorf’s status as a retail location.
The Wehrhahn line (underground rail) and road tunnel under Schadowstrasse and Jan-Wellem-Platz which have
finally been completed provide an idea of just how attractive the city centre will be when all the development
projects are finished. When the Kö-Bogen II project closes out in 2019, Düsseldorf will have an additional 24,000
m² of prime location retail space, raising the profile of the entire city centre – especially the area around
Schadowstrasse – as a shopping destination. Construction work for the Kö-Bogen II project has already
commenced and will take around 2.5 years to complete. The design by famous Düsseldorf architect Christoph
Ingenhoven envisages two buildings with sloped rooves and stepped green facades. The larger of the two
buildings will be 19 metres high and have four stories on one side, increasing to 29 metres and five stories on the
other side facing the Jan Wellem Plaza. The second building next to the Dreischeibenhaus property will be 750
square metres in size and house small restaurants and cafés.
Many of the property owners on and around Schadowstrasse are
introducing new concepts (e.g. Foto Koch), some of them
construction projects and some of them renovation projects, to
upgrade the eastern shopping zone and recover, if not surpass,
former footfall levels. Telekom has opened a new two-storey 500 m²
flagship store opposite P&C, Tally Weijl has leased around 500 m² in
the Foto Koch building and CCC Schuhe has taken over the approx.
1,000 m² store formerly occupied by Jack & Jones / Vero Moda.
The Schadow-Arkaden shopping arcade took advantage of the
construction work on Schadowstrasse to extend its underground car
park to 1,000 spaces and integrate new concepts such as a Calvin
Klein Underwear store and the new Bonalumi restaurant – a concept
developed by successful caterer Dirk Fröhlich which can seat 240
guests inside and also has an outdoor seating area.
COMFORT City Report Düsseldorf 2016 9 von 11
0 10 20 30 40
PURCHASE PRICE FACTOR
The urban and retail development projects and investments over the past five to ten years, which are set to
continue for the next two to three years, will make the regional capital of Düsseldorf more competitive at both
national and international level, turning it into a retail and investor hotspot. Current trends in rents and purchase
prices confirm this long-term outlook.
INVESTMENT
In a market phase with very few properties in prime location
properties available in German cities, five significant transactions
have just taken place on the Königsallee and Schadowstrasse high
streets. In summer 2016 the ownership of number 96 Königsallee,
which is on the south part of the street, changed hands. In late spring
a private community of owners sold number 26 Königsallee for a
record-breaking price. The new private owner can now leverage
medium to long-term potential reflecting this prime location on
Königsallee. The owner of CENTRUM Group, Uwe Reppegather, has
bought Kesting-Galerie (Königsallee 36), which he intends to develop
in the medium term for his private portfolio.
Aachener Grundvermögen has purchased number 28 Schadowstrasse, which is on the prime section of the
pedestrian zone, from private individuals for its portfolio. The Karstadt building on Schadowstrasse has also just
changed hands again. It was last sold around three years ago when the Zech Group bought it.
Purchase prices, like rents, have developed very positively in recent years. This is driven by the decline in
premium core investment opportunities throughout Germany. Yields in prime locations are in the range of 3.5 - 3.8
% according to the COMFORT Group’s Investment Business Coordinator, Jürgen Kreutz.
COMORT CITY-RANKING 2016
The COMFORT City Ranking assesses the economic basis, power of attraction, and performance of the retail trade and retail properties in city centres. The index serves as a factually substantiated basis for negotiating rental and purchase prices of city-centre retail properties in Germany. Technically, it is a weighted index of relevant key data and parameters relating to demography and (socio-)economics, the retail trade, location and retail properties. For the most important 60 cities, which are represented in this HIGH STREETS report with individual city reports, a total of 35 parameters determined topically and in the same manner for each individual city are entered. Using a scoring model, the parameters cover three major areas, within which individual sub-indicators are also analysed. In detail these are as follows: • Demography/(socio-)economic index (Parameters for population/development, GDP, employment, unemployment, tourism, retail purchasing power) • Retail trade index (Parameters for the catchment area: population size and level of demand, retail centrality, fashion centrality, as well as city centre sales, sales areas
and sales-area productivity) • Location and real-estate index (Parameters for the rents of small/medium-sized spaces, location / retail space structure of the city centre, industry/operator mix in the city
centre, rental demand, intensity of demand[Overall rental space demand in m2 in relation to the available retail spaces in the city centre])
Düsseldorf has a top position in the COMFORT City Ranking (number 2 in Germany, scoring 91 of 100 achievable
points). This is predominantly due to the high concentration of retailers in Düsseldorf city centre, its extensive
catchment area and its population’s high spending power. But Düsseldorf city doesn’t just offer quantity but also
quality, with illustrious and internationally famous high streets, big brand name retailers and forward-looking urban
developments, all of which safeguard this city’s extraordinary attractiveness as a shopping destination.
Demography / (socio-)economy
Retail trade
Location and real estate
29,0 - 31,0
COMFORT City Report Düsseldorf 2016 10 von 11
Jury decision on the Schadowstrasse conversion Quelle: Bruun & Möllers
SUMMARY AND OUTLOOK
Düsseldorf’s development projects of recent years are reaching their conclusion. The Kö-Bogen II project in front
of the Schauspielhaus theatre is scheduled for completion in summer 2019. It is being implemented concurrently
with the redesign of one of the city’s key high streets, Schadowstrasse. The Recommendations Committee
proposed that the City Council should approve a design submitted by Bruun + Möllers (Hamburg-based architects)
on 9 September. It involves the eastern section of Schadowstrasse, from Bleichstrasse to Tonhallenstrasse, being
converted to a pedestrian zone with several pavilions and lounge chairs during business hours. When
Schadowstrasse and Kö-Bogen II are finished, the regional capital will finally be able to reap the fruits of these
projects after more than ten years of being a permanent construction site. Justifiably, local retailers are now all
preparing for and looking forward to their construction-site-free futures.
These recent urban development projects will further extend Düsseldorf city centre’s long-term competitive edge
over malls and neighbouring cities. This is also likely to be associated with an increase in demand from
prospective tenants which, like rents, is currently in a sustained sideways trend.
The investment market factored this stable future development into the equation quite a while ago, which is why
initial yields have continued to decline. However, this hasn’t affected demand from investors. Düsseldorf, the chic
fashion city, always has been and always will be a very sustainable and exciting investment opportunity for both
developers and investors according to the COMFORT retail and property experts.
COMFORT City Report Düsseldorf 2016 11 von 11
CONTACT:
DEFINITIONEN Rents in prime locations All statements pertaining to rents are to be read with the following in mind: New rent contracts drawn up in absolutely prime business locations for fictive, purely ground floor sales areas; ideal shop space has ground-level, step-free access, is fitted out to a high standard and, as far as possible,
its layout is at a right angle to a shop window with a minimum length of 6 m (for a size of 80–120 m²) or 10 m (for 300–500 m²); peak rents in EUR per
m², per month, plus statutory VAT and service charges
Purchasing power, Centrality parameters The purchasing power index complements the information on population size for a given location with qualitative criteria. The average value has been standardised nationwide at 100. A value above 100 signals that a location has above average purchasing power potential. However, the purchasing power index does not provide any information as to whether the available capital is in fact spent in the location in question or not. The centrality indicator shows whether, on balance, purchasing power is flowing into or away from a particular location. A value over 100 indicates that the inflow of purchasing power from the surrounding area is higher than the outflow from the city. The centrality indicator thereby sheds a special light on the attractiveness of a location for the retail trade.
Fashion centrality Analogous to the industry-wide centrality parameters (= retail centrality), the fashion centrality indicator sheds light on the situation in an important sub-sector – the key city-centre segment fashion, which in turn comprises the two product segments clothing/textiles and shoes/leather products.
Catchment Area
Cartographic representation of geographic areas in terms of the city’s importance to their resident population as a shopping destination. Blue represents the core city area (zone 1) and red represents the immediate and extended catchment area (zone II).
RESEARCH & CONSULTING
OLAF PETERSEN
COMFORT Research & Consulting Phone: +49 40 300858-22 Mobile: +49 175 7217720 E-Mail: [email protected]
INVESTMENT
EGON MEINERS-HAGEN
COMFORT Düsseldorf
Phone: +49 211 9550-112
Mobile: +49 175 7217714
E-Mail: [email protected]
LEASING
JÜRGEN KREUTZ
COMFORT Düsseldorf
Phone: +49 211 9550-140
Mobile: +49 175 7217701
E-Mail: [email protected]
Editor: COMFORT Holding GmbH Kaistraße 8A 40221 Düsseldorf
About the COMFORT Group The COMFORT Group has specialised in the sale and letting of commercial properties and retail units in prime city centre locations since it was established in 1979. As a proven retail property expert, COMFORT makes its know-how available via a consultancy services portfolio which includes expertises, second opinion appraisals and third party due diligence reports. The portfolio also includes shopping centre consultancy and management services. The COMFORT Group is headquartered in Düsseldorf and has offices in Berlin, Düsseldorf, Hamburg, Leipzig, Munich, Vienna and Zurich. www.comfort.de
COMFORT Group media contact Frank Hinz, Corporate Communications Kaistraße 8A, 40221 Düsseldorf / Phone: +49 211 9550-144 / E-Mail: [email protected]
