By Katharina Treiber
You need go with demand and focus on shifting patterns of behaviour. In the late 2010s, when we were planning the redevelopments and retail strategy for Potsdamer Platz, we identified a change in consumer behaviour which has accelerated in the 2020s. By focusing on unique joyful experiences, whether that’s F&B, leisure, entertainment or retail we’ve been able to deliver a mood-lifting destination that gives people a break from wider socio-economic issues.
The strategy we’ve pursued in Potsdamer Platz is the product of our global expertise. We’ve got retail experts in cities where new concepts are emerging, whether it’s Dubai or London. This has allowed us to pick up shifting consumer patterns and retail innovation and assess their commercial viability in the German market.
HIGHLIGHTS OF ASSET MANAGEMENT ACTIVITIES IN GERMANY IN 2024
This year’s been special because our vision for Potsdamer Platz has started to come to fruition. New concepts such as Lane7, which is an unmistakably fun venue bringing people together for competitive socialising, are providing an injection of energy and excitement into Berlin’s nightlife. While the Upside-Down Museum, which provides zany and creative rooms for people to take photos with friends and families, is drawing in new crowds to the area. For our team, this delivery of ‘firsts’ for Berlin and Germany in terms of retail, leisure and entertainment has been a really rewarding experience and a highlight of 2024.
The increasing number of office workers has also been a welcome development in 2024. Potsdamer Platz draws many different types of shoppers, from tourists to young Berlin families, but office workers have always been a vital component. This year we’ve seen a notable uptick both in terms of the number of office workers actually coming to the office and shopping in Potsdamer Platz throughout the day.
WHAT ARE BROOKFIELD PROPERTIES’ PLANS FOR GERMANY IN 2025 AND BEYOND?
At Brookfield Properties we’re never short of work! Central to our vision for 2025 will be driving up footfall in Potsdamer Platz through a combination of public realm improvements, office leasing and exciting new retailers. We’ve been making public realm improvements since 2022. The works have resulted in Potsdamer Platz being a much more relaxing and enjoyable neighbourhood for office workers, tourists and residents alike.
What are the specific obstacles on the German market? The German retail market faces some tough challenges, primarily caused by political and economic uncertainty, which makes consumers and businesses nervous.
On the bright side, footfall is in Germany rising as shoppers crave more in-person experiences. Retailers are responding by opening bigger, more immersive stores, and there’s a growing demand for destinations that offer much more than just shopping—people want an entire day’s experience. Looking back on our strategy to reposition Potsdamer Platz when we took over management of the estate in 2016, the approach was spot on, and it’s clear that the market is heading in this exciting, experience-driven direction.
THE GERMAN PORTFOLIO IS GROWING FAST: “WHICH CITIES BESIDES BERLIN ARE ON THE LIST?”
We’re prepared to take on the management of any asset class starting in 2025, with a strong focus on the major six cities in Germany. Over the years, we’ve built up our expertise across all key real estate sectors so that we can manage a wide range of property types, including office, retail, residential, and more.
Due to this expertise, we’re principally ready to manage large mixed-use assets where we can create a healthy ecosystem of interconnected assets.
WHY IS PLACEMAKING IMPORTANT FOR BROOKFIELD PROPERTIES?
Placemaking is crucial to the work we do at Brookfield Properties because it’s all about creating spaces where people can simply enjoy themselves, regardless of whether they want to go shopping or not. It’s also about drawing in people to the new Potsdamer Platz and showing them what a great destination it has become.
We have a dedicated team ensuring that throughout the year there are always great events and art installations. For us, placemaking isn’t a one-off effort; it’s something we focus on from the very beginning and throughout the entire lifecycle of the property development.
Katharina Treiber
Katharina Treiber is a Senior Vice President Asset Management at Brookfield Properties Germany
