GENERAL RULES DO NOT APPLY ANY LONGER TO THE RETAIL REAL ESTATE INDUSTRY

Shopping centers with high vacancy rates vs. booming outlets – so why not com- bine shopping centers and outlets? Haslinger Retail Real Estate Consulting is doing just that in St. Augustin, Germany: Huma World is a hybrid center with an outlet on the upper floor and a classic shopping center offering on the lower floors. In short, it is a weatherproof outlet with many restaurants and extended services. Michael Haslinger explains the advantages for brands, owners, and customers and why hybrid centers are not cure-all for the struggling shopping center sector.

ACROSS: YOU ARE DEVELOPING AN OUTLET IN AN EXISTING SHOPPING CENTER IN ST. AUGUSTIN. THIS IS UNUSUAL, EVEN THOUGH THE INDUSTRY HAS LONG DISCUSSED CONVERTING SHOPPING CEN- TERS INTO OUTLETS. HOW DID THIS PROJECT COME ABOUT?

MICHAEL HASLINGER: Huma was built back in the 1970s with 20,000 sq m. St. Augustin has no conventional city center; the center has taken over this role. Residential ar- eas surround it and the cities of Cologne and Bonn can be reached in 10–20 minutes. The idea to significantly ex- pand the center was born around 2010. In 2017, the Huma Center opened with 50,000 sq m. In this case, un- fortunately, it was bad timing.

ACROSS: IN WHAT WAY?

HASLINGER: The industry was booming in 2010...