DÜSSELDORF ON TRACK FOR THE NEXT UPGRADE - COMFORT

 
DÜSSELDORF ON TRACK FOR THE NEXT UPGRADE - COMFORT
DÜSSELDORF
    ON TRACK FOR
  THE NEXT UPGRADE

      APRIL 2018
DÜSSELDORF ON TRACK FOR THE NEXT UPGRADE - COMFORT
IN FIGURES                                                                               The state capital of North Rhine-Westphalia and seventh-
                                                                                         largest city in Germany is located at the heart of the
Federal state:                                            North Rhine-Westphalia
                                                                                         Rhine-Ruhr Metropolitan Area. Düsseldorf is a highly
Population:                                                             612,178
                                                                                         diversified regional centre that is famous for its trade fair
                                                                                         and fashion competence. It is also the country’s second
Population development:                                                 + 1.3 %          most important banking centre and stock exchange loca-
                                                                                         tion, headquarters to companies in the telecommunica-
Employees paying social
security contributions:
                                                                        409,195          tions, chemicals, life science and consultancy sectors,
                                                                                         and a university city. In fact, Düsseldorf’s significance for
Unemployment rate:                                                        7.2 %
                                                                                         the entire region is reflected by the impressive commuter
                                                                                         figures - with 170,000 more inbound as opposed to out-
Retail purchasing power:                                                  117.8
                                                                                         bound commuters.
Retail centrality:                                                        114.4
                                                                                         The city has an international flair that makes it a very
Relevant shopping centres:                                                               attractive place to live. (There are more than 5,000 for-
                                                                                         eign institutions in Düsseldorf and it is home to the larg-
Schadow Arkaden (C), SEVENS Home of Saturn (C),
KÖ Galerie (C), Stilwerk (C), Düsseldorf Arcaden (S),                                    est Japanese enclave in Germany). Recent forecasts by
Rheinpark-Center Neuss (P)                                                               the Regional Statistics Office project further population
C=City   S=District P= Periphery                                                         growth of 8.6 percent by the year 2030. Düsseldorf is
Source:       State Statistical Offices, GfK GeoMarketing GmbH,                          regularly among the highest-ranked cities in the world for
              Federal Employment Agency
                                                                                         its quality of life. New residential areas are being devel-
                                                                                         oped, spectacular major projects are being implemented
                                                                                         and the city’s already excellent infrastructure is being
PRIME RETAIL RENTS
                                                                                         expanded. These are just some of the reasons why the
from 2007- 2017 in EUR / m²
                                                                                         quality of life in Düsseldorf will continue improving.
              80-120m²              300-500m²

  300                                                                                    THE CITY’S SIGNIFICANCE
  250                                                                                    AS A RETAIL LOCATION
  200                                                                                    Düsseldorf is a leading player in the German premiere
                                                                                         retail league. It boasts an exceptionally diverse retail
  150                                                                                    scene and famous shopping districts. High amenity val-
                                                                                         ue, numerous international retail concepts, good acces-
  100                                                                                    sibility and an abundance of inner city parking spaces are
                                                                                         the foundations for Düsseldorf’s status as is one of the
   50
                                                                                         most attractive and flourishing retail locations in Germa-
                                                                                         ny.
     0
         07      08       09      10       11        12     13     14   15    16    17   The city has above average centrality and purchasing
                                                                                         power. “Düsseldorf’s central city zone is currently gener-
                                                                                         ating a good EUR 1.6 billion in retail sales,” commented
                                                                                         COMFORT Managing Director Jürgen Kreutz.
 CITY CENTRE AREA                                                                        The city is such a popular shopping destination because
    Düsseldorf        Ø 500T - 1 Mio. Inhabitants
                                                                                         its retail districts are all clustered around the city centre.
                                                                                         Around 35% of Düsseldorf’s retail space is located in the
                                                                                         city centre, and some 38% of its total retail sales are
Proportion of                                                                            generated here.
 sales in %

Proportion of
retail space
    in %

                  0              10             20            30        40         50

Source: COMFORT Research & Consulting

COMFORT City Report Düsseldorf 2018                                                                                                              2 of 12
DÜSSELDORF ON TRACK FOR THE NEXT UPGRADE - COMFORT
PURCHASING POWER AND                                                          Internationally famous high streets, big brand names and
CENTRALITY PARAMETERS                                                         a forward-looking urban planning and development con-
                                                                              cept make Düsseldorf one of Germany’s – and Europe’s -
        Purchasing power           Centrality parameters                      most attractive shopping destinations. The retail scene in
                                                                              Düsseldorf is high-powered, differentiated and cosmo-
           Berlin
                                                                              politan, encompassing all the genres from top luxury and
      Düsseldorf                                                              premium to upmarket and high street. It’s no coincidence
                                                                              that Canadian Hudson Bay spin-off Saks OFF 5TH de-
Frankfurt am Main
                                                                              cided to kick-off its expansion into Germany last summer
        Hamburg                                                               by moving into Düssedorf’s premium department store,
                                                                              Carsch-Haus.
         Cologne

          Munich                                                              One of Düsseldorf’s most impressive retail statistics is its
         Stuttgart
                                                                              very high purchasing power index of 117.8 (national
                                                                              average = 100). This puts it in second place behind Mu-
                     0       25        50         75       100    125   150
                                                                              nich among the seven German cities with the highest
Source: GfK GeoMarketing GmbH                                                 purchasing power. Another impressive statistic is Düs-
                                                                              seldorf’s per capita retail sales area of more than 1.65
                                                                              m². A centrality index ranking of 114.4 also puts Düssel-
FASHION CENTRALITY                                                            dorf among the leading German cities (third place).
               Berlin

          Düsseldorf

   Frankfurt am Main

           Hamburg

            Cologne

             Munich

            Stuttgart

                         0        50        100        150       200    250

Source: COMFORT – Research & Consulting

CATCHMENT AREA

Source: COMFORT – Research & Consulting, Base Map RegioGraph

COMFORT City Report Düsseldorf 2018                                                                                                 3 of 12
DÜSSELDORF ON TRACK FOR THE NEXT UPGRADE - COMFORT
Those statistics are largely due to the vast inner city                          reason why the city has such an attractive international
catchment area, with some two million residents, extend-                         retail sector and such outstanding urban architecture
ing far beyond the city boundaries into the Ruhr region to                       projects. Key urban development projects include Kö-
the north, Wuppertal to the east, Krefeld and Mönchen-                           Bogen I and II, the new Wehrhahn underground rail and
gladbach to the west and Leverkusen to the south. The                            road tunnel under Schadowstrasse and Jan-Wellem-
Rhine-Ruhr conurbation is also one of Europe’s most                              Platz, the redesign of the Schadowplatz plaza and the
densely populated regions.                                                       extension of the Schadowstrasse pedestrian zone. All
                                                                                 these developments are making an important contribution
Düsseldorf is a very popular city for trade fair guests and                      to Düsseldorf's sustainable positioning as one of Europe’s
tourists. There were an impressive 4.8 million overnight                         leading shopping cities.
stays in 2017, some 40% of whom were foreign guests.
These guests and tourists are naturally also part of the

CITY RETAIL DATA

  Strukturdaten                                                       München                     Köln
                                                          Berlin                     Hamburg                 Frankfurt   Stuttgart   Düsseldorf
  Structual data                                                       Munich                    Cologne

  Einzelhandelskaufkraft 2017
  Retail purchasing power 2017                               96,8           129,8       109,7       108,8       114,2       112,8        117,8
  (Deutschland/Germany = 100,0)

  Einzelhandelsverkaufsfläche 2017
  Retail sales area 2017                                4.850.000     1.833.000      2.686.000   1.575.000   1.167.000   1.014.000   1.012.000
  in m² / sqm

    Anteil der Innenstadt in m²
                                                          644.000         497.000     346.500     313.000     277.000     377.000      347.000
    Share of the city centre im sqm

    Anteil der Innenstadt
                                                           13,3%            27,1%       12,9%       19,9%       23,7%       37,2%       34,3%
    Share of the city centre

  Einzelhandelsverkaufsfläche pro Einwohner
                                                               1,4             1,3         1,5         1,5         1,6         1,6         1,7
  Retail sales area per inhabitant

  Flächenproduktivität in € pro m²
                                                            3.800           5.900       4.200       4.500       3.700       4.100        4.100
  Space productivity in € per sqm

  Flächenproduktivität Innenstadt in € pro m²
                                                            3.900           6.600       5.600       5.200       5.200       4.400        4.600
  Space productivity of the city centre in € per sqm

  Einzelhandelsumsatz 2017 in Mio. €
                                                         18.376,0         10.887,0    11.226,8     7.079,5     4.346,0     4.174,1     4.170,4
  Retail turnover 2017 in € million

    Anteil der Innenstadt in Mio. €
                                                          2.530,0          3.290,0     1.955,0     1.625,0     1.430,0     1.670,0     1.610,0
    Share of the city centre in € million

    Anteil der Innenstadt
                                                           13,8%            30,2%       17,4%       23,0%       32,9%       40,0%       38,6%
    Share of the city centre

  Einzelhandelszentralität 2017
  Retail centrality 2017                                    106,7           114,4       113,2       121,4       102,7       117,3        114,4
  (Deutschland/Germany = 100,0)

  Modezentralität 2017
  Fashion centrality 2017                                   156,3           221,9       173,6       198,9       202,4       209,8        224,3
  (Deutschland/Germany = 100,0)

  Einzugsgebiet / Catchment area
                                                               5,3             3,1         3,5         2,4         2,4         2,6         2,0
  Einwohner in Mio. / Inhabitants in mill.

Quelle / Source: COMFORT - Research & Consulting, GfK GeoMarketing GmbH

COMFORT City Report Düsseldorf 2018                                                                                                         4 of 12
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PRIME LOCATIONS                                               PRIME RETAIL RENTS
                                                              in EUR/m²
KÖNIGSALLEE
 One of the most popular promenades and luxury                   80-120 m²
  shopping miles in Europe
 Approx. 800 m long avenue accessible to traffic with a                                                 285
  central reservation
 High footfall                                                   300-500 m²
 Mix of sectors from luxury and fashion labels                                                  150
 High stay-awhile quality due to wide-ranging astro-
  nomic facilities with outdoor seating
 New tenants: Globetrotter, Fashionette, Coffee Fel-
  lows, Brabus/Sunseeker, Das Werk
 Rental price: approx. 285 EUR/m² (small),
  approx. 150 EUR/m² (medium)

SCHADOWSTRASSE
 Consumer location with department stores and cloth-
                                                                  80-120 m²
  ing outlets
 High footfall                                                                                        230
 Best section in the pedestrian zone between Königsal-
  lee and P&C Weltstadthaus                                       300-500 m²
 There is still a “right" and a "wrong" side of the street
  in the section accessible to traffic – positive develop-                                 120
  ment as a result of the establishment of a pedestrian
  zone from approx. 2018/19 and the Kö-Bogen II pro-
  ject
 New tenants: Rossmann, Urban Outfitters, Decathlon,
  Ecco, Calvin Klein, Frittenwerk, Thomas Sabo
  (Schadowplatz)
 Rental price: approx. 230 EUR/m² (small),
  approx. 120 EUR/m² (medium)

FLINGER STRASSE
                                                                  80-120 m²
 "Young”, approx. 300 m long pedestrian zone in the
  old town                                                                                             210
 Predominately young fashion outlets
 Best section between Kasernenstraße and Mittelstra-             300-500 m²
  ße
                                                                               65    100
 New tenants: Saks OFF 5TH, Pylones, Benefit, YQOS
 Rental price: approx. 210 EUR/m² (small),
  approx. 100 EUR/m² (medium)

MITTELSTRASSE / GRABENSTRASSE                                     80-120 m²

 High street with good footfall                                                             135
 Diversified sector mix
 Best section between Flinger Strasse and Carlsplatz /           300-500 m²
  Kasernenstrasse
 New tenants: Diesel, Le Creuset, von Floerke                                  72
 Rental price: approx. 135 EUR/m² (small),
  approx. 72 EUR/m² (medium)

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MAJOR DEVELOPMENTS ARE EN-
HANCING DÜSSELDORF’S METROPOL-
ITAN URBANITY
Düsseldorf city centre has seen some impressive devel-           Königsallee is still the number one luxury high street. “We
opments over recent years. Construction work on Kö-              have one of Europe’s most popular luxury shopping
Bogen II commenced on Gustaf-Gründgens-Platz in                  boulevards! Königsallee’s appealing atmosphere and
2017. Kö-Bogen II is a distinctive example of modern             high footfall make it unique among Germany’s exclusive
architecture. It is a building complex with a stepped de-        high streets,” explained Kreutz. Luxury, upmarket and
sign housing 20,000 m² of retail space and 5,000 m² of           high street fashion retailers benefit from being located in
office space, plus a triangular pavilion with retail units for   a high-end neighbourhood with good accessibility and
a drugstore, a supermarket in the basement and a food            store facades that reflect or can be adapted to reflect the
court on the ground floor. This project outside the              brand. Consumer-oriented retailers can count on high
‘Schauspielhaus’ theatre and the development of a new            footfall and plenty of spontaneous purchases in accessi-
pedestrian zone on Schadowstrasse will provisionally             ble retail premises with large entrances. The Königsallee
conclude the extensive redevelopment of Düsseldorf’s             has everything: luxury labels as well as upmarket brands
shopping district when it is completed, if everything goes       and high street retailers such as H&M and Zara. It also
to schedule, in 2020. Then, the seemingly endless series         has a busy café and restaurant scene with outdoor seat-
of construction sites, including the demolition of an over-      ing, which adds to its appeal. “It’s a very successful con-
pass, the re-routing of a tram line, the construction of the     cept,” said Kreutz. “The Königsallee has impressive foot-
tunnel under Jan-Wellem-Platz and the Kö-Bogen I de-             fall figures for this kind of a luxury location.” Numerous
velopment project, and all the negative impacts on footfall      prestigious international labels are queueing up for the
and business – especially in the Schadowstrasse area –           opportunity to move into a retail unit on this international-
will finally disappear, as will all the associated noise and     ly coveted shopping boulevard.
dust. Post-development Düsseldorf will have a beautiful
new urban landscape with metropolitan flair that will en-
hance the city as a retail location. Jürgen Kreutz does not
believe that there will be any major shifts in Düsseldorf’s
retail structure.

Kö-Bogen II on Schadowstrasse

COMFORT City Report Düsseldorf 2018                                                                                     6 of 12
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The southern section of Königsallee on the other side of
Grünstrasse has always been much more diverse, and
this image has become even stronger since Globetrotter,
Coffee Fellows and Das Werk arrived to add even more
retail formats. Mail-order company Pro-Idee opens its
second store at a prime location in a deal brokered by
COMFORT this spring. Luxury automobile company Bra-
bus and yacht builder Sunseeker have rented premises
on the opposite side, adding a touch of glamour to this
section of the boulevard.

                                                                      The south section of Königsallee has diversified: COMFORT negotiated
                                                                      the leases for ‘Das Werk’ at Königsallee 98

                                                                      The Kaufhof department store on Königsallee is the first
                                                                      of the Kaufhof stores in Germany to be given a new look
                                                                      at great expense (around EUR 32 million by 2018) by
                                                                      Canadian owner Hudson Bay Company (HBC). The new
                                                                      basement opened with a 1,600 m² ladies shoe depart-
                                                                      ment – four times larger than the previous one – and an
                                                                      extended lingerie range at the end of 2016. Conversion
                                                                      work is taking place while the store remains open. When
                                                                      it finishes, handbags and cosmetics articles (e.g. the
Luxury shopping, cafes & restaurants and promenade: the Königsallee
has a lot to offer
                                                                      Sephora shop that is already open) will be located on the
                                                                      ground floor, ladies fashions on the first floor, men’s
Cologne-based Koerfer Group has invested over 65 mil-                 fashions and shoes on the second floor and an extended
lion euros in its CROWN project on the southern part of               sports article and toy range on the third floor.
Königsallee to transform a former department store on
the corner of Berliner Allee/Graf-Adolf-Strasse into a
10,000m² food temple. The Zurheide family, owners of
the EDEKA supermarket chain, opened an exclusive
supermarket in the basement on 22 March. 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 a car park.

“All the redevelopments taking place on Königsallee are
gradually blurring the segregation of the street into a
                                                                      The south section of Königsallee has diversified: COMFORT negotiated
banking side and a shopping side,” added Kreutz. “New                 the leases for Coffee Fellows and Pro-Idee (coming soon) at      Kö-
tenants Versace, Barbara Frères, Zadig & Voltaire and                 nigsallee 92.
Hermès are joining existing tenants Abercrombie & Fitch
and Nespresso, which is a clear indication of the signifi-            Directly opposite, in the upper floors of Carsch-Haus on
cant changes that are taking place here.” The HINES                   Flinger Strasse, HBC opened its first Saks OFF 5TH
complex on the west side of Königsallee is now at an                  luxury outlet with designer fashions on 3,500 m² of retail
advanced stage of construction. It is called the ‘Kö-                 space in 2017. In the past, off-price concepts haven’t
Quartier-Ensemble’ and comprises seven buildings –                    really taken off in Düsseldorf – and this has also been the
including the Deutsche Bank property with the largest                 case at the stores that are already open.
counter hall in Germany – offering 55,000m² of office and
retail space, 420 parking spaces and a 140 metre-long
frontage facing onto Königsallee.

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metics, home accessories, shoes, leather goods 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, Aesop and, in the future, Le
                                                                 Creuset. This has sustained the positive development of
                                                                 footfall figures. Grabenstrasse runs into Trinkausstrasse
                                                                 – another connecting street between the Altstadt and
                                                                 Königsallee that has been upgraded following the mod-
                                                                 ernisation of the famous Trinkauspassage shopping ar-
                                                                 cade and the arrival of tenants such as Hermés, Versace
                                                                 and 0039 Italy.

                                                                 Several cosmetics concepts such as KIKO Milano, Vine
The venerable Carsh-Haus with Saks OFF 5th                       Vera, Kiehls and Rituals on Flinger Strasse, Caudalie on
                                                                 Mittel-strasse and Aesop on Grabenstrasse have moved
Flinger Strasse is the street with the highest footfall in the   to the Altstadt in recent years. Trendy new retailers such
old part of the city or ‘Altstadt’. Demand among upmarket        as ba&sh (Grabenstrasse) or Levi’s and Diesel (Mittel-
retailers and consumers has developed very positively on         strasse) have further enhanced the appeal of this area
Mittelstrasse, and even more so on Grabenstrasse, with           surrounding the mar-ket. Grabenstrasse and Mittelstras-
the result that rents in that area have increased signifi-       se are high-end, trendy streets leading up to the famous
cantly in recent years. The genres of retailers in the his-      weekly market on Carlsplatz that have been evolving into
torical Altstadt differ from street to street. Flinger Strasse   increasingly desirable locations for some years now.
has beautiful historical buildings housing 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. The stores here sell cos-

KÖ-BOGEN II AS INITIATOR OF DI-
VERSE OTHER DEVELOPMENTS

The very successful example of urban planning and ar-            ers arrived on Gustav-Gründgens-Platz to commence
chitecture, Kö-Bogen, the prestigious Kö-Bogen II retail         construction work that is expected to continue for another
property development project (all lettings are being han-        two years or so. The design by famous Düsseldorf archi-
dled exclusively by COMFORT) and the associated en-              tect Christoph Ingenhoven envisages two buildings with
hancement of Schadowstrasse when the pedestrian zone             sloped rooves and stepped green facades. The larger of
is completed in around 2020, will further enhance Düs-           the two buildings will be 19 metres high and have four
seldorf’s status as a retail location.                           stories on one side, increasing to 29 metres and five
                                                                 stories on the other side facing Jan-Wellem-Platz. The
The Wehrhahn underground rail and road tunnels under             second, smaller building next to the Dreischeibenhaus
Schadowstrasse and Jan-Wellem-Platz have finally been            will be used for small restaurants and cafes.
com-pleted, providing a preview of just how attractive the
city centre will be when all the development projects are        Many of the property owners on and around Schadow-
finished. When the Kö-Bogen II project closes out in             strasse are introducing new concepts (e.g. Foto Koch),
2020, Düsseldorf will have an additional 20,000 m² of            some of them development projects and some of them
prime location retail space, raising the profile of the entire   renovation projects, to upgrade the eastern shopping
city centre – especially the area around Schadowstrasse          zone and increase footfall rates. Urban Outfitters opened
– as a shopping destination. In mid-2017 the earthmov-           a shop in a section of the Foto Koch store, CCC Schuhe

COMFORT City Report Düsseldorf 2018                                                                                  8 of 12
DÜSSELDORF ON TRACK FOR THE NEXT UPGRADE - COMFORT
opened a shoe shop in the former Jack & Jones / Vero        These recent, highly attractive urban and retail develop-
Moda store, and Decathlon moved into an almost 2,000        ments and investments in the regional capital of Düssel-
m² retail unit in the basement of the C&A building in Oc-   dorf have upgraded the city’s national and international
tober 2017, supplementing Düsseldorf’s underrepresent-      status.
ed sports segment. The Schadowstrasse shopping scene
has now been augmented with new retail concepts such
as Urban Outfitters, Calvin Klein, Ecco, a 1,200 m²
Rossmann drugstore and the Frittenwerk restaurant.

Auspicious: Kö-Bogen II
                                                            Schadowstrasse: Urban Outfitters at Foto Koch

Schadowstraße: Decathon Decathon in C & A’s basement

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INVESTMENT
These positive developments have naturally impacted                                       PURCHASE PRICE FACTOR
the investment market, raising Düsseldorf’s profile as a                                  from 2012 - 2017
                                                                                                                                                                 32,0 - 34,0
sustainable investment location for German and interna-
tional investors and consolidating its status as an in-                                   35,0
vestment hotspot.
                                                                                          25,0
Egon Meiners-Hagen, COMFORT Managing Director
with responsibility for Düsseldorf investment business,                                   15,0
has reported a series of top level deals that went                                                   2012         2013        2014         2015         2016         2017
through in 2016, including the acquisition of Schadow-
strasse 28 by Aachener Grund and the sale of the
Karstadt department store on Schadowstrasse to CBRE
Global Investors, the same company that purchased the
Sevens shopping centre. Königsallee 36 (Kesting-
Galerie) was purchased by the owner of the CENTRUM
Group, Uwe Reppegather, number 26 was bought by a
Düsseldorf family office and number 106 by a famous
Düsseldorf property tycoon.

City centre investment business was much quieter in
2017 as a result of the low availability of suitable proper-
ties.

The property market is booming in Düsseldorf and de-
mand for prime locations exceeds supply by far. This
drove up property prices substantially last year. The
yields on properties in genuine prime locations are now
around 3%. However, on some properties in exceptional
locations such as Königsallee it is considerably lower.                                   IQOS on Flinger Straße

COMFORT CITY RANKING

 Demography / (socio-)economy

 Retail trade

 Location and real estate

Using a scoring model, the parameters cover three major areas, within which               • Location and real-estate index (Parameters for the rents of small/medium-
individual sub-indicators are also analysed. In detail these are as follows:                sized spaces, location / retail space structure of the city centre, industry/operator
• Demography/(socio-)economic             index      (Parameters        for    popula-      mix in the city centre, rental demand, intensity of demand [Overall rental space
  tion/development, GDP, employment, unemployment, tourism, retail purchasing               demand in m2 in relation to the available retail spaces in the city centre])•
  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)

COMFORT City Report Düsseldorf 2018                                                                                                                                   10 of 12
COMFORT CITY RANKING
Düsseldorf has a top position in the COMFORT City               secured Düsseldorf its excellent ranking position.
Ranking alongside the much larger cities of Berlin and
Hamburg (number 2 in Germany, scoring 90 of 100                 The COMFORT City Ranking is a substantiated annual
achievable points). This is predominantly due to the high       benchmarking based on 35 sociodemographic, econom-
concentration of retailers in Düsseldorf city centre, its       ic, retail and property-related that COMFORT compiles
expansive catchment area and its population’s high              every year.
spending power. Retailer quantity, quality and diversity,
and retail property performance, are the factors that have

METROPOLITAN COMPARATIVE SCORING (IN %)

     Munich
    Stuttgart
   Hamburg
       Berlin
   Frankfurt
 Düsseldorf
    Cologne

                82               84                86              88                90               92                 94

SUMMARY AND OUTLOOK
The end is in sight! North Rhine-Westphalia's state capi-       New and interesting location clusters have formed on the
tal is moving into the end phase of the comprehensive           west side of Königsallee, in the area surrounding Mittel-
urban modernisation and enhancement project that                strasse, Grabenstrasse and on Carlsplatz – whereby
commenced in 2008. It began with the construction of            Flinger Strasse is still the clear number one prime loca-
Kö-Bogen I, continued with the demolition of the over-          tion in the Altstadt. The Königsallee's attractive atmos-
pass, the completion of the road tunnel and the                 phere and high footfall will sustain its unique status
Wehrhahn underground rail line and moved on to the              among Germany's luxury high streets and it's still the
spectacular Kö-Bogen II development and the new pe-             ‘place to go’ for luxury shoppers in entire North Rhine-
destrian zone on Schadowstrasse. It now looks increas-          Westphalia. This applies to the section as far as Grün-
ingly probable that the latter two major developments will      strasse. Beyond that, the southern section of Königsallee
be finished by the beginning of the next decade.                has become much more diverse recently after a series of
                                                                popular and interesting labels found their new home
The very positive resonance of these developments on            there.
the Düsseldorf retail sector throughout the city centre is
already evident today. Although Düsseldorf has always           All these factors contribute to the stable outlook for Düs-
offered consumers a comprehensive, attractive and di-           seldorf as a retail location and the city centre rental and
verse choice of shopping locations and city centre high         investment market. Current and foreseeable develop-
streets with different profiles, the retail scene is now also   ments will consolidate and even significantly strengthen
moving forward into the future as the face of the city          Düsseldorf city’s long-term USP versus other cities in the
changes. Many owners and retailers are anticipating new         region and shopping centres in the city.
opportunities and, despite the negative effects of the
construction work, they are either already anchored in
position or in negotiations to lease stores, especially on
Schadowstrasse.

COMFORT City Report Düsseldorf 2018                                                                                  11 of 12
CONTACT
For further questions and / or detailed information /
materials do not hesitate to contact us:

 LEASING / INVESTMENT                   INVESTMENT                               RESEARCH & CONSULTING
 JÜRGEN KREUTZ                          EGON MEINERS-HAGEN                       OLAF PETERSEN

 COMFORT Düsseldorf                     COMFORT Düsseldorf                       COMFORT Research & Consulting
 Fon: +49 211 9550-140                  Fon: +49 211 9550-112                    Telefon: +49 40 300858-22
 Mobil: +49 175 7217701                 Mobil: +49 175 7217714                   Mobil: +49 175 7217720
 E-Mail: kreutz@comfort.de              E-Mail: meiners-hagen@comfort.de         E-Mail: petersen@comfort.de

 Editor:
                                                                               DEFINITIONS
 COMFORT Holding GmbH                                                          Rents in prime locations
 Kaistraße 8A                                                                  All statements pertaining to rents are to be read with the following in
 40221 Düsseldorf                                                              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 possi-
 About the COMFORT Group:                                                      ble, its layout is at a right angle to a shop window with a minimum length of 6
 Since it was founded in 1979, the COMFORT Group has specialised in            m (for a size of 80–120 m²) or 10 m (for 300–500 m²); peak rents in EUR per
 the sale and letting of commercial properties, specialist stores and retail
                                                                               m², per month, plus statutory VAT and service charges
 units. As a proven retail property expert, COMFORT makes its know-
 how available via a consultancy services portfolio which includes ex-         Purchase price factors
 pertises, second opinion appraisals and third party due diligence re-         The purchase price factors, shown in their full range, serve as a general
 ports. It also provides shopping centre consultancy services and has a        orientation for the currently achievable purchase price for commercial build-
 separate Luxury Retail unit. The retail specialist is also exclusive part-    ings (rental income from retail > 60%, current rent at around market level)
 ner of Cushman & Wakefield for retail property letting in Germany. The        with a typical sales volume in the prime location of the respective city. Tech-
 COMFORT Group is headquartered in Düsseldorf, and has offices in              nically, the purchase price factor represents the multiplier for calculating the
 Berlin, Düsseldorf, Hamburg, Leipzig, Munich, Vienna and Zurich.              purchase price of a commercial building without a maintenance backlog,
 www.comfort.de                                                                when multiplied with the respective annual net rent.
                                                                               Share of city centre
 Media Contact:
 Karolina Müller, Head of Corporate Communications                             Figures in percentage. This value indicates the share of the city center in
 Kaistraße 8A, 40221 Düsseldorf / Fon: +49 211 9550-144 / E-Mail:              sales revenue or in the sales space of the entire city area.
 mueller@comfort.de                                                            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 im-
                                                                               portance to their resident population as a shopping destination. Blue repre-
                                                                               sents the core city area (zone 1) and red represents the immediate and
                                                                               extended catchment area (zone II).

COMFORT City Report Düsseldorf 2018                                                                                                                     12 of 12
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