Galeria Stores Transform into Vibrant City Hubs as Demand Soars
In a significant shift, former Galeria department store locations in German cities are being transformed into vibrant, multifunctional spaces. Companies like Just Play, fitness studios, and supermarkets are moving in, driving demand and reducing vacancy rates.
The trend is evident in major cities such as Frankfurt, Hamburg, and Bonn, where shop-in-shops and new tenants are revitalizing these spaces. Notably, supermarkets and discount stores are also gaining a foothold, accounting for 14 percent of re-leasing activity.
Property owners are adapting their strategies, embracing smaller, more flexible leasing terms to accommodate a wider range of uses. This has led to nearly one in five square meters of newly leased retail space in city centers being in former Galeria buildings. In the first nine months of the year, around 66,000 square meters of such space were leased, contributing to a total of 363,000 square meters across Germany.
Leisure and sports providers are at the forefront of this transformation, taking up around 43 percent of the leased space in former Galeria properties. This repurposing is not only boosting the appeal of these city centers but also signaling a deeper structural renewal in the German retail market.
The conversion of former Galeria and Karstadt locations into multifunctional urban spaces is proving successful, with a wide range of tenants and a significant amount of leased space. This trend is set to continue, driving demand and countering vacancy rates in German cities.
