In the first half of 2026, the IPH Group re-leased a total of 47,000 square metres of retail space or prolonged existing contracts. This encompassed 154 lease agreements, of which approximately 60 percent were extensions. The number of contract signings thus increased by 26 percent compared to the first half of 2025.
Lars Jähnichen, Managing Director of the IPH Group, observed that despite overall economic uncertainties in Germany, the leasing market had proven to be significantly more stable than it was a few years ago. He emphasised that owners and landlords now need to engage in more proactive market cultivation to sustainably position their properties. Retailers are scrutinising locations more intensely and placing higher demands on space quality, economic viability, and flexibility.
The market is increasingly shaped by flexible store concepts. Retail companies are developing location-specific concepts that deviate from standardised store sizes. Large-format retailers are adapting their spaces to the respective catchment areas and local demand, leading to economically viable solutions for all parties involved. In parallel, the shop-in-shop principle is gaining relevance, with retailers integrating additional concepts into existing spaces or making partial areas available to other brands. Mr Jähnichen pointed out that, when correctly implemented, shop-in-shop concepts can increase space efficiency and open up new customer groups, with the synergistic effects of the involved concepts being crucial.
Another trend concerns the physical establishment of brands that originally operated online. These brands are opening physical locations to increase their visibility, create more direct customer experiences, and strengthen customer loyalty. Physical retail thus serves as a complement to an omnichannel strategy and for tapping into additional sales potential.
The IPH Group also observes an increased market entry of new retail concepts, including international food providers, Korean beauty brands, as well as lifestyle and non-food concepts. These expand the industry mix in German city centres and shopping centres and specifically appeal to younger target groups. The IPH Group now assesses rent levels as largely stable. New leases and contract extensions in recent years show an overall positive development, although long-term older contracts from before the coronavirus pandemic sometimes have lower follow-on rents. In the shopping centres managed by the IPH Group, visitor footfall is at the previous year's level. Sales across the entire portfolio are slightly above this figure, adjusted for inflation.
Mr Jähnichen stressed that successful leasing requires active refinement of location profiles. Retailers preferentially invest in locations that are professionally developed further and whose owners invest in ambient quality, design, and modern space concepts. Proactive management of tenancies is increasingly important due to longer decision-making processes. This includes early monitoring of lease agreements, performance indicators, and space developments to minimise vacancy periods for contract extensions or re-lettings. Such leasing management prevents unused spaces, generates footfall, strengthens tenant performance, and secures property value, which is considered a crucial value driver for investment success. This requires market knowledge, continuous dialogue with tenants and owners, and a sound analysis of the economic development of each location.
