In the first half of 2026, the IPH Group leased a total of 47,000 square metres of retail space through new lettings and extensions. A total of 154 leases were concluded, of which about 60 percent were extensions. This is 26 percent more leases than in the first half of 2025.
“Despite the various macroeconomic uncertainties in Germany, the rental market is much more stable than it was just a few years ago. At the same time, we are observing that owners and landlords today have to act much more actively in order to position their properties successfully on the market in the long term,” says Lars Jähnichen, Managing Director of the IPH Group. Dealers are examining locations more intensively and are placing higher demands on space quality, cost-effectiveness and flexibility.
Flexible store concepts shape the market
More and more retail companies are saying goodbye to standardised branch sizes and developing location-specific concepts. Large-scale retailers in particular are increasingly adapting their space to the respective catchment area and local demand. This results in economically viable solutions for both dealers and owners.
At the same time, the topic of shop-in-shop is gaining significantly in importance. Retailers integrate additional concepts into their existing areas or make partial areas available to other brands.
“Shop-in-shop concepts have long since ceased to be an emergency solution. Used correctly, they increase space efficiency and can open up new customer groups at the same time. However, it is crucial that the concepts involved fit together in a meaningful way and generate real synergies,” explains Jähnichen.
Another trend can be seen in the stationary settlement of concepts that were previously focused on online retail. By opening physical locations, these brands aim to increase their visibility, create more direct customer experiences, and strengthen their engagement with their target audience. At the same time, they are using brick-and-mortar retail as a sensible addition to their omnichannel strategy and tapping into additional sales potential.
International concepts provide new momentum
At the same time, the IPH Group is observing an increasing market entry of new retail concepts. In addition to international food suppliers, Korean beauty brands as well as lifestyle and non-food concepts are increasingly establishing themselves in German city centres and shopping centres. They expand the industry mix and appeal to younger target groups in particular. Influencer marketing is also proving to be extremely successful, especially with this younger target group, so that not only the sales of the respective advertised concepts increase noticeably, but of course also the frequencies, from which the entire location benefits.
Stabilization in the rental market
According to the IPH Group, the rent level is now largely at a stable level. While long-term old contracts from the time before the Corona pandemic sometimes achieve lower follow-up rents, new lettings and contract extensions of recent years are developing positively overall.
The development in the shopping centers managed by the IPH Group also confirms this trend: visitor frequencies are at the previous year’s level, while at the same time sales in the overall portfolio are slightly higher, even after adjusting for inflation.
“Successful leasing therefore means actively sharpening location profiles. Because retailers invest where real estate is professionally developed and owners are willing to invest in quality of stay, design and modern space concepts,” says Jähnichen.
Rental begins long before the end of the contract
With the longer decision-making processes, the proactive management of existing tenancies is becoming increasingly important. In concrete terms, this means early monitoring of leases, performance indicators and space developments in order to implement contract extensions or re-lettings without vacancy phases as far as possible.
“Proactive leasing management in the center prevents unused space, creates frequency, strengthens tenant performance and secures the value of the property in the long term. This makes it a decisive value driver for investment success. This requires more than market knowledge: above all, a continuous dialogue with tenants and owners as well as a well-founded analysis of the economic development of each individual location. It is precisely this depth that determines the long-term success of a retail property.”
