Special Report Retail Report Cologne
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1 CBRE Special Report Retail Report Cologne Contents Cologne in brief key facts about Cologne as a business and retail location... 1 The Cologne Retail Market... 2 Domkloster and Wallrafplatz the new bel étage in Cologne...2 Hohe Strasse - Germany s oldest pedestrianised zone, with considerable potential...5 Schildergasse strongest mass-market pitch in the centre of Cologne...8 Neumarkt more than just a transport node Mittelstrasse new multiples breathe fresh air into the upmarket pitch The Hohenzollernring nightlife and shopping location between Rudolfplatz and Friesenplatz Ehrenstrasse fashionable location beyond the gentrification No longer a "hot tip" - the alternative locations around Ehrenstrasse Breite Strasse attractive connecting road in the Globetrotter sphere of influence Minoritenstrasse a developing location in the shade of its larger sisters The 2012/13 letting year - dynamic letting market Well-balanced demand from sectors in Cologne city centre Increasing proportion of multiples - Cologne is following the general trend... 31
2 Fig. 3: Location plan Domplatte/Wallrafplatz Map Basis: OpenStreetMap Contributors, CBRE 2014 page 4
3 Mittelstrasse new multiples breathe fresh air into the upmarket pitch Starting from Neumarkt in a westerly direction, the Cologne shopping circuit continues via Mittelstrasse. What was already intimated by Bertram & Frank and the Neumarkt Passage becomes clear here: Mittelstrasse is the undisputed upmarket pitch in the centre of Cologne. Mittelstrasse extends from the St. Aposteln church to Rudolfplatz. It is a pleasant shopping street and is considerably quieter than e.g. the highly frequented Hohe Strasse and Schildergasse. Unlike the pedestrianised zones in Hohe Strasse and Schildergasse, Mittelstrasse is open to road traffic - as a oneway street between Friesenwall and Apostelnstrasse. Another important attraction here, widely known even well outside Cologne, is Apropos Köln, in the former Bazaar de Cologne. This concept store combines exclusive fashions, furniture and catering with each other as events. It is certainly one of the highlights of this location, as well as being a clear indication of the innovative capacity of the Cologne retail market. In the 2012/13 letting year there were additional lettings in Mittelstrasse, which further confirmed its positioning as an upmarket location. The first was the Wunderhaus concept, which took around 180 sq m in the retail building Mittelstrasse Massimo Dutti, an Inditex group fascia, took a lease on around 560 sq m in Mittelstrasse 16-18, relocating from its former unit in Schildergasse. Laurèl, the label belonging to the Munich-based ESCADA group, is another new entry to the Cologne retail market. It secured an around 140 sq m shop in Mittelstrasse 3. Following in the footsteps of Frankfurt-based furniture retailer Kontrast, the Inditex group s home accessories and furniture fascia Zara Home has secured a total of 1,000 sq m of sales space in Mittelstrasse 11. This was, by a wide margin, the largest letting in Mittelstrasse. With this letting, Zara Home is continuing to pursue its strategy of positioning the store in upmarket pitches. These new openings have given new impetus to the demand for modern retail accommodation in Mittelstrasse and have led to a considerably increased level of demand there. The variety of sizes of shops means that requirements for very small through to medium-sized units can be accommodated, making this upmarket pitch a very interesting target for expansion. Prime rents in Mittelstrasse are currently 85 EUR per sq m per month. page 13
4 Fig. 15: Location plan Breite Strasse and Globetrotter Kartengrundlag für alle drei Karten: OpenStreetMap Contributors, CBRE 2014 The letting to American fashion label Urban Outfitters shows that the western section of Breite Strasse has a lot more to offer than just outdoor competence. Urban Outfitters has taken around 1,100 sq m of sales space in Breite Strasse This prominent building, with its historic façade, was previously occupied by the Heubel antique business. The choice of location was due not least to the relative proximity of the fashionable location in Ehrenstrasse. However, it appears that Breite Strasse has not developed to become a second Ehrenstrasse, although the accommodation available there sometimes includes much larger units than are found in Ehrenstrasse. There were further new lettings in Breite Strasse in the 2012/13 letting year. Frankfurt-based café/restaurant concept Dulce Chocolate & Ice Cream has rented an around 140 sq m store at Breite Strasse As already stated, The North Face and Urban Outfitters also count among the new entrants in the letting year. The corner shop Breite Strasse 132 (formerly Vodafone) was let to Swedish shoe fascia Vagabond, which is opening its first store in a prime (1A) location in Germany. There were further new lettings in eastern Breite Strasse, between Richmodstrasse and Tunisstrasse. An around 300 sq m unit in the retail building Breite Strasse 32 was let to German comfort shoe retailer Bär Schuhe. The Netherlands kitchen requisites concept Kookpunt, trading as Kölner Kochhaus in Germany, opened a new pilot store on the German market: an around 700 sq m unit in Breite Strasse 2-4. page 23
5 Street sq m Concept Sector Schildergasse m² Guess Fashion Schildergasse m² Bijou Brigitte Jewellery & Accessories Schildergasse m² Apollo Optik Optician Schildergasse m² KarstadtSports Sports & Outdoor Wallrafplatz m² Victorinox Others Source: CBRE 2014 Fig. 19: Leases concluded in Cologne 2012/13, by sector Optician Home Supply Others Toys Sports & Outdoor Jewellery & Accessories Fashion 4 Drugstore & Parfumery Consumer Electronics Shoes & Leather Goods 1 Source: CBRE 2014 Analysis of lettings in the 2012/13 letting year shows a well-balanced distribution between the main sectors. The fashion segment, with 36% of all letting activity, is once again definitive, although its proportion was lower than in previous years. The shoe and leatherware segment was also strongly represented, accounting for 20%. The well-balanced distribution shows that not only fashion retailers but also retail concepts from other sectors can subsist in the Cologne retail market. This is borne out by the wide variety of locations along the Cologne shopping circuit. This results in an attractive retail structure, which improves the overall radius and appeal of the Cologne retail market, attracting customers from far and wide. page 30
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