Lettings momentum in the German city-centre retail sector is proving more robust than widely assumed. According to a recent market analysis by BNP Paribas Real Estate, take-up in the first three quarters of 2026 totalled approximately 385,000 square metres. This result is a good ten percent above the average of the past five years. The third quarter alone contributed around 150,000 square metres, representing almost 40 percent of the volume so far this year, making it one of the strongest individual quarters of the past five-year period.
Large-format deals were the primary driver in the third quarter: around 57 percent of take-up, exactly 86,000 square metres, was accounted for by lettings of 1,000 square metres or more. Together, the seven German A-locations recorded around 125,000 square metres, standing a good 20 percent above their five-year average. In total, around 220 lettings and openings were registered in the top markets during the reporting period.
Structural change in large-format spaces and collaborative re-use
Changes in the department store segment continue to shape market developments. While the Inditex group is set to reoccupy former Peek & Cloppenburg flagship stores, renewed insolvencies such as at Galeria create an additional need for action, but also opportunities for new concepts. In total, lettings in former department store properties reached a volume of just over 50,000 square metres. In addition, partnerships for partial space utilisation are becoming established: sports retailer Decathlon is opening up new locations not only in former Galeria stores, but also as a subtenant in Mediamarkt branches and in future at IKEA in Hamburg-Altona.
How short-cycled reoccupations can be is illustrated by the former Karstadt property on Frankfurt's Zeil. Following interim use by fashion retailer Aachener, as well as occupancy by the Inditex label Bershka and the supermarket Go Asia, move-ins by TK Maxx and C&A are scheduled once refurbishment work is complete. Bershka has in the meantime relocated to the Skyline Plaza centre, while Go Asia moved into a former Depot branch on Kaiserstraße.
Christoph Scharf, Managing Director and Head of Retail Services at BNP Paribas Real Estate, emphasised in this context that choosing the right marketing timeframe is crucial. Locations require a balanced approach between swift reletting and a viable concept of use, with patience in approaching prospective tenants paying off over the long term.
Shopping centres drive sector diversity
City-centre shopping centres contributed nearly 30 percent to total take-up, with around 110,000 square metres. More than half of this volume was contracted in the third quarter via new anchor tenants. Alongside apparel retail, food retailers and leisure concepts are increasingly expanding the tenant mix of shopping centres.
- —Kaufland secured 4,000 square metres of rental space in Berlin's Schloss-Straßen-Center.
- —Lager 157 leased 2,500 square metres in Ernst-August-Galerie in Hanover.
- —Smyths Toys took over 2,500 square metres in Rhein-Galerie Ludwigshafen.
- —Swedish leisure concept Boda Borg opened a new experiential space in Boulevard Berlin.
Additional deals by retail chains such as New Yorker, including in Mall of Berlin, Skyline Plaza Frankfurt and City Center Langenhagen, underline the sustained interest in established shopping centre locations.
