BERLIN-Some 48% of malls in Germany need revitalization in the next few years, says a new study by international shopping center specialist Sonae Sierra and Ludwigsburg-based GfMA. Based on a total of 414 centers, this encompasses 199 properties, 56 million square feet, and will require investments of $7.2 billion to $10.8 billion to realize.

The two firms said that measured by the number of residents per mall, the greatest need for revitalization exists in east Germany, while there is hardly any need in the states of Saarland, Hesse, Thuringia, Bremen and Hamburg. Some 55% of shopping centers needing upgrade are in small and medium-sized towns, while those located in large areas comprise some 20%. Small and medium sized centers in suburbs and greenfield sites are most affected. Better placed in the market are large city centre and cross-regional sites.

Sonae Sierra aims to expand its services to include shopping center revitalization for third parties. “There is a pent-up demand for investment in revitalizing shopping centers,” said German managing director Thomas Binder. “The need for modernization is huge, but many things delay it in practice. A low level of awareness, but also a lack of financial capacity, deficient know-how or unfavorable ownership conditions are reasons for not following through.”