18 minute read
Offices: Testimonial Touring
The crisis as an opportunity
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It is an economic law that a harsh crisis opens the door to new initiatives. But are things that simple for the concept of shopping centres?
“Our shopping centres have proven that the world belongs to the daring and the innovative. Concepts such as Fitchen and La Boutique in K in Kortrijk or O Taco’s and Asie A Tik in Les Grand Prés in Mons are all responding to the new ‘healthy fast food’ trend. These are attractive concepts for the younger generations, who are ultimately the customers of the future. The importance of food and drinks cannot and should never be underestimated for shopping centres. Businesses that respond to the latest trends will naturally – and quite rightly so – have a head start. The fact that people have the courage to open new businesses even in the most difficult times is certainly to be welcomed. This also shows that retailers themselves strongly believe in the future of shopping centres.”
In many sectors, there has been an extra focus on marketing. Does this also apply to shopping centres?
“If customers can’t make it to stores, it goes without saying that you need to focus more strongly on marketing and communication. That way, you maintain your relationship with existing customers or create one with potential customers. The more creative the communication, the greater the effect and connection, as this past year showed. In addition to pure Covid communication, major steps were taken in terms of social media and databases in particular. Because of this, shopping centres can now get in touch with consumers much faster than before.” Wijnegem even took things a step further with a genuine augmented reality app.
“This is a first for the country, and we at Ceusters are very proud of this. Together with a team of developers, we created an application that combined indoor GPS and gaming. Starting in September 2021, visitors will not only be able to easily find their way around the shopping centre with this app, they will also be able to ‘catch’ all kinds of logos by scanning the space. These logos contain a discount or entitle them to something fun. This will make shopping in Wijnegem a bit more of a family outing and allow youngsters to save some money by cashing in on discounts!” (laughs)
The shopping experience is becoming even more important than before, in other words.
“The crisis has taught us that it is crucial to pay the utmost attention to the shopping experience itself, which should be brilliant under any circumstances. At Ceusters, we are convinced that once everything returns to normal, consumers won’t easily be satisfied with that normal life. This is forcing us to work on the details of our management more than ever before.” Can we already estimate the longterm impact of the coronavirus crisis on shopping centres?
“We’ll keep feeling the effects of the measures that were imposed for a while longer, there’s no doubt about that. Retailers have had to drastically cut their margins to be able to survive, but owners too have made great efforts to support their tenants. This latter aspect remains somewhat underexposed today. And wrongly so, because we’re talking about large sums of money being written off. Of course, these organisations also have their own obligations, which put them under pressure to continue to guarantee the health of their own business. For this reason, projects were often postponed. We’ll probably see quite a bit of catching up in the next few years.”
In the coming years, the sustainability story will undoubtedly be further still be developed.
“With good management in mind, we are always committed to the monitoring and far-reaching optimisation of shared charges. Which is why we can present excellent results for the consumption of electricity, gas and water at each of our sites. But our sustainability story goes further than that. Employment also fits into this context. A shopping centre guarantees the employment of low-skilled people and therefore has a strong social impact. We’re working closely with social organisations like VDAB or Weerwerk to be able to quickly get back on track. We strongly believe that focusing on the long term and applying a sustainable approach is the most beneficial for all stakeholders and we will therefore keep investing in strong partnerships with our clients, tenants and customers.”
Positivity following tough times
Stefanie Van den Rul and Axel Ceusters are both COO at Ceusters: “I mainly focus on property management, while Axel oversees retail, shopping centres and the commercial side of things,” Stefanie Van den Rul says. “We manage 1,300 retail leases, with a total of 6,000 leases on our books. This makes us the largest manager of retail property in Belgium. We’ve had a remarkable 18 months, to put it mildly, with all the inevitable ups and downs. In May, we noticed people started to resume their old habits. One month later, as the catering sector reopened, we were already back at 90% of our pre-pandemic figures. We know this because we collect and monitor all possible data, figures and visitor numbers very carefully. ” “To this, we add strong marketing efforts. The European trade association (former ICSC Europe) has already awarded us the title of ‘best in class’ for shopping centre marketing on several occasions,” Axel Ceusters adds. “There are plenty of reasons for positivity, which is more than welcome after a very tough period. A small anecdote to illustrate my point: my daughter was born on 17 March 2020. Literally a few hours before the country went into full lockdown. Unfortunately, we had to put some employees on temporary leave. I contacted all of them myself. As a family business, we attach great importance to a human approach. You should never shirk away your responsibilities in difficult times. When it came to the shopping centres, we also had to try to reduce costs – like security or energy costs – as much as possible. And we continuously had to keep our international clients informed of what was happening in Belgium. ”
Operationally, one challenge was quickly followed by another. “In those very early days, we had to order 200,000 face masks when they were barely available, for example. We managed to get them, partly thanks to the excellent cooperation with the highly committed owners. We also had to constantly prepare for the ev-erchanging measures. We wouldn’t find out until 11pm what was in the ministerial decree that would take effect the next day. Not to mention all the other local bans and obligations… The incredible resilience all those involved demonstrated at the time is truly deserving of praise,” Axel Ceusters says.
Stefanie Van den Rul
COO of Ceusters Axel Ceusters
COO of Ceusters
HET PAND - WAREGEM
The city centre as an experience centre
City centres are the shopping centres of the future. Waregem and Het Pand, the completely renovated shopping centre in the city centre, serve as prime examples. We got together with the mayor of Waregem, Kurt Vanryckeghem, alderman Kristof Chanterie and Bart Verschelde, director of Wagso, to discuss why Het Pand is such a success story.
Waregem scores better than the Flemish average.
It is estimated that more than 1 in 10 retail properties in Flanders are vacant. In real terms, this amounts to a total of more than 5,000 premises. Waregem’s vacancy rate is far below the average; in the core shopping area, the figure is even below 8%. The number of shops per 1,000 inhabitants is almost a third higher than in the rest of the Flemish Region. Here, there are fewer longterm vacancies; empty commercial premises quickly find a new tenant.
A proud Waregem mayor Kurt Vanryckeghem explains why: “The city of Waregem takes numerous initiatives to keep vacancies to a minimum. One of these is the total renovation of shopping centre Het Pand, which is owned by the municipality. Waregem has a good mix of chains and independent shops. This balance between larger retailers and strong local traders is very important and has just been consolidated by the renovation of Het Pand.” Kurt Vanryckeghem
Mayor of Waregem
“The balance between larger retailers and strong local traders is very important.” KV Waregem as a retail city
This seems to tie in perfectly with a bigger picture of city centres as the shopping centres of the future. But for this to become a reality, city centres would need to be managed in the same way...
Kurt Vanryckeghem: “Indeed, strengthening the city centre is very important in a regional city like Waregem. Today, pressure on the retail sector is very high. Customers are evolving too. It’s crucial for a city to do everything in its power to support and guide this evolution. A resurgence of city centres is possible if you focus on creating an attractive core shopping area with an appealing and diverse range, combined with sufficient experience-related aspects.”
Kristof Chanterie, alderman of the local economy: “In Waregem, the renovation of Het Pand is one of the pillars that really makes all the difference in the heart of the core shopping area. The city council itself is investing 17.5 million euros in the renovation. As landlord, we also look for new tenants ourselves. We do so through WAGSO, the Waregems Autonoom Gemeentebedrijf StadsOntwikkeling (Waregem Autonomous Municipal Company for Urban Development). In our capacity as lessor, we ensure we have a direct impact on the retail scene. We also have a city coach, which ensures that the entire core shopping area can be managed even more effectively to form a coherent whole with Het Pand. Today, more than 60 percent of Het Pand has already been rented out again, even though the renovation is only scheduled to be finished in August 2022.” The city of Waregem is profiling itself as a genuine retail city. The renovation plans for Het Pand certainly helped. All the retail premises are being given a major refurbishment, including buildings with shop windows with a height of no less than 5 metres. Around 800 square metres of retail space is also being added for both independent or local traders and large chains. “Not to mention the integrated, ultra-efficient parking, an experience square and a city garden!” adds alderman Kristof Chanterie.
Bart Verschelde, director of WAGSO: “As far as we know, Het Pand is the only shopping centre in Flanders that is owned by a municipality. The city of Waregem owns the entire commercial part of the complex as well as the majority of the administrative buildings. As a subsidiary of the city, WAGSO manages these commercial retail and office spaces and will ensure that the available units are leased in the future. For this, we’ve entered into a partnership with Ceusters.”
Kristof Chanterie
Alderman of the local economy
Flemish Minister of Economy Hilde Crevits:
“Many people turned to online shopping during the pandemic, but at the same time, people in Flanders have also (re)discovered local shopping en masse these past twelve months. As a result, now is the perfect time to focus on creating pleasant trading centres where it’s nice to live, work and shop. Something we sorely need, as 11% of business premises in Flanders are empty. But we’re not leaving local authorities to fend for themselves in this arena. We have an action plan entitled ‘Werk aan de Winkel’, which includes an investment fund that will help municipalities purchase and transform commercial premises. In addition, our ‘Profploeg’ team of experts serves as a kind of superhero rescuer for trading centres. It’s not just a financial boost or a new study, but an actual team that can set new standards on the ground. Waregem is doing something that ought to be possible in many municipalities and cities: developing a site where shopping, work, food, culture and leisure merge to create an attractive public space. In other words, a place where residents enjoy spending time.” - Hilde Crevits
Smart collaboration
The context is well-known. More online shopping, fewer retailers, fewer independent entrepreneurs, new mobility... All these developments are presenting local authorities across the country with a major problem. How can we reinvent our ‘trading system’ so that city centres survive as attractive commercial hubs?
What assets does Waregem city centre offer?
Mayor Kurt Vanryckeghem: “Across all policy areas, we’re working on the same goal based on a single, comprehensive plan: ensuring our city is and remains attractive to residents, shoppers and visitors alike. Waregem has one major asset: everything here is within walking distance. Shops, cafés and restaurants, but also the library, other cultural buildings and even our football stadium are located in an area the size of a handkerchief, so to speak. In addition, there’s plenty of greenery in this area. That small scale is an enormous advantage.” But you wanted to take things even further…
Kurt Vanryckeghem: “Indeed we did. To enhance the city centre even further, we set up a think tank with various experts and specialists. The aim of Flemish Minister of Economy Hilde Crevits is to bring together municipal administration, post offices, stores, food and drinks outlets and leisure activities in a single place in order to create more interaction. Our goal in Waregem was to achieve precisely that.” Bart Verschelde: “This certainly requires some smart alliances. The project is the result of a think tank that was launched in 2017. The central starting point at the time was the future of Het Pand. We created various working groups and drew up a strategic commercial plan. And that’s how our path crossed with that of the biggest manager of shopping centres in our country, Ceusters. Under the leadership of Dominique Desmeytere, we embarked on a coaching trajectory. This allowed Het Pand to attract new tenants, including the supermarket Albert Heijn, which will occupy 2,000 m² – the largest space.”
Kristof Chanterie: “The collaboration with Ceusters began about after we held a procurement competition. The assignment included both the preparation and supervision of the commercial aspects of the renovation project, as well as an agreement to attract new tenants by the reopening of the complex in August 2022. Thanks to this far-reaching collaboration, a number of new commercial leases have already been concluded with both local and (inter)national players. The major added value here was the combination of the expertise of Ceusters, which allowed the right connections to be made, and the local anchoring that ensured independent businesses were interested as well.”
Bart Verschelde: “This industry mix between appealing local traders and retailers has always been one of the strengths of Het Pand. We definitely want to keep this mix in the future. Ceusters certainly provides good support in this respect.”
Dominique Desmeytere
Shopping Center Manager at Ceusters By completely renovating the shopping centre in the inner city, you’re also targeting the city centre. How are you handling these two sides of the story?
Kristof Chanterie: “Together with the existing traders, who were forced to move due to the renovation, we succeeded in giving an attractive interpretation to empty commercial premises in the city centre. In brief, we used the pop-up system. It’s actually a win-win situation: traders can seamlessly continue their activities in the city centre while vacancies are kept to a minimum. We also guaranteed them that they would be able to reoccupy their original place in Het Pand after the renovation.” Kurt Vanryckeghem: “To this day, we’re very satisfied with the collaboration between the city council, WAGSO and Ceusters. And all business is conducted in our very own language, West Flemish! (chuckles) It’s a great example of teamwork. We always tried to achieve the best possible balance between supporting the traders who were already in Het Pand and attracting new ones. Bringing together expertise and local knowledge and – above all – a great deal of commitment is what enabled us to elevate the story of Het Pand and Waregem city centre and turn it into a success story.”
Ceusters brings seeking parties together
The Albert Heijn supermarket will be the star attraction at Het Pand in Waregem. By enabling the lease agreement, Ceusters ensured a perfect match between the city, the shopping centre and the well-known supermarket chain. Albert Heijn will occupy a retail space of just under 2,000m2 and will use an additional storage space of more than 500m2. The retail space occupies slightly over 30% of the commercial ground floor area of the shopping centre. Both the city and the retailer had been looking for a suitable location for six years. Thanks to Ceusters, the pieces of the puzzle now fit together nicely, while an optimal industry mix between local traders and strong brands – which was the goal specified for Het Pand – is taking shape. In addition to the wellknown supermarket, the arrival of other strong brands like Hans Anders and Kameleon has also been confirmed.
Ceusters was given the task of both bringing in new retailers and helping existing tenants find the best possible spot (and connection with their target group) in the completely renovated Waregem shopping centre. Balance established and mission completed, we would say!
WAREHOUSE GENK (WDP)
Logistics, first of class asset after the pandemic
We brought Christophe Wuyts and Kristof De Witte, two experts in logistics around the table. The subject of the discussion? The recent evolution of the logistics real estate market and the actual and future trends. It should come as no surprise to learn that flexibility and sustainability are the order of the day in this sector.
A fruitful collaboration
How do your companies work together?
Kristof De Witte: “At WDP, we purchase, develop, manage and lease logistics real estate with the aim of compiling a portfolio that gives our shareholders a recurring cash flow. Our client base consists of third-party logistic companies, like DHL, and end users. We have an extensive network of companies that we have been assisting at various locations for years. When it comes to end-user clients, we work closely with Ceusters. They pick up on requests from companies we are not yet familiar with, and we can then respond appropriately. Over the years, Ceusters has become a strong player in logistics real estate, with an extensive national and international network. That’s our link. We are also both family-owned businesses, which means we share certain values, like a long-term focus.”
Christophe Wuyts: “We worked with WDP on a variety of transactions and closed a nice deal during summer. The warehouse lease by Rogue in Bornem, which is a great project for illustrating our shared vision on logistics real estate. Rogue, which is based in Columbus, Ohio, is an American manufacturer of premium fitness equipment. They asked us to find a logistics hub that was not only strategically well-located, but also energy-efficient and available within a short time. That kind of request isn’t easy to fulfil in a market that’s experiencing great scarcity. But together with WDP, we found the right place anyway. It is an existing site that will completely be converted to suit their requirements.” A lack of available land, reconversion and increased sustainability – are these today’s key themes in the logistics sector?
Christophe Wuyts: “They’re only the start! (laughs) There’s a great demand for (semi-)industrial and logistics space. At the same time, fewer plots are available and the requirements imposed on these kinds of buildings are becoming ever more stringent. Not to mention the so-called ‘concrete stop’, a clampdown on consuming open green space for construction projects. We are therefore convinced that the future lies largely in infill development and the reconversion of existing peripheral industrial buildings.”
Kristof De Witte: “This in turn requires substantial investments. It’s an exercise we’ll need to carry out for our older buildings anyway – WDP has been around for forty years, after all. You could choose not to do this. There’s a lot of demand, after all. But we see things differently. Not investing would be a very short-term decision. Whereas sustainability used to be a ‘nicehave’, these days it’s a must-have for many companies. And fortunately so.”
A sustainable investment
Sustainability is anchored in the corporate policy of many companies. You really can’t ignore it these days...
Kristof De Witte: “There’s a high demand for buildings with an ‘Outstanding’ BREEAM certificate. That’s because larger companies literally have to be able to demonstrate their commitment to sustainability. As a listed market leader, we want to be best in class and – as in the Rogue story, for example – are making all kinds of substantial investments in sustainability.”
Christophe Wuyts: “Ceusters joined the United Nations Global Compact because we want to commit to the same sustainable goals. These investments also have a very positive effect on the long-term value of REITs: rents can be higher and the valuation of your portfolio increases. It all fits together nicely, because the stock market value follows suit. Which, in the case of WDP, explains the interest of foreign investment funds.
Kristof De Witte: “Multimodality is just one of the many sustainable aspects that come into play. At WDP we don’t just tick the boxes: we genuinely believe that organisations have to take society and the environment into account.” Christophe Wuyts
Head of the Industrial Agency at CEUSTERS - MRICS SIOR
Kristof De Witte
Development & Acquisitions Director at WDP
