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DES - Online Annual Report 2008

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My Annual Report

Lease optimisation

The primary task of the center management is to put together a customised retail mix for each center that is ideally tailored to suit the specific location based on a careful analysis of local retail offerings.

The important aspect here that with each transaction the focus is not the leasing each individual store, but the shopping center property as a whole. To make sure that the visitors are provided with an attractive mix of retail shops, a special system is used in renting out the individual shop spaces on a long-term basis. Here rents are calculated based primarily on the sales potential of the specific trades. This way businesses are also represented in our shopping centers which in recent years have been increasingly driven from the old city centres because they can no longer afford the exorbitant rents there, an example of which are toys or pet supplies. This principle is especially beneficial for local businesses and entrepreneurs, though ultimately all the tenants in the shopping center benefit from the greater volume of visitors this produces.

Instead of focusing entirely on short-term maximisation of rents, this model allows us to achieve optimisation of our rental agreements in the long term.

In addition, the visitors to our shopping centers also benefit from this system since they have access to the full range of retail trade, from drug stores to clothing shops to specialised services such as bank branches and travel agencies. Fast-food restaurants, cafes and ice cream shops further enhance the experience and provide for relaxation while shopping.

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