Consistently high letting momentum driven by diverse demand impulses on the retail letting market
A look at the leased retail space in German city centers highlights that market activity is not only stable but has settled at a healthy level. Although the extremely high volumes seen during the expansion years up to 2019 can no longer be used as reference points, the retail market has once again performed well in comparison to the past five years after the first six months of 2025. Nationwide, approximately 230,000 m² of retail space was newly leased or opened in the first half of the year. This matches the volume of the previous two years, which each saw results of around 235,000 m² - only slightly higher. Notably, the current re-leasing momentum in former Galeria properties has gained further traction, reaching nearly 30,000 m² (almost 15% share of total take-up) compared to 2024 (Q1-Q4 2024: approx. 22,000 m²; around 4%). A symbolic example of this development is the July opening of Decathlon in Konstanz, marking the first store launched under the new partnership between the French sporting goods retailer and Galeria. This collaboration, expected to expand significantly in the second half of the year, is drawing particular attention: After the initial wave of re-lettings in former department store locations proved largely unsustainable, Decathlon could emerge as a new anchor tenant with strong customer potential for many smaller cities. In addition to big retail brands, regional players continue to demonstrate that they are actively engaged in the transformation process, evolving through new, modern stores or renovations. Given the outlined market conditions, the prospects for further positive developments in the retail market over the remaining year are generally good.