Department stores were part of the cityscape for a long time. They have now become a rarity. City centres are in an ongoing process of transformation. Urban planners are facing huge tasks. What ist he perfect solution? Demolition and new construction or transformation and conversion? There are already creative examples of the latter option. One flagshop project in Berlin is Kalle Neukölln. We spoke to Franziska Giffey, former mayor of Berlin, now Berlin's Senator for Economic Affairs, and Hans Stier, Partner at the developer MREI, about the challenges involved.
Franziska Giffey: The vacancy of department store buildings and the simultaneous housing shortage are a major challenge throughout the city. The idea of converting these buildings into flats sounds simple and tempting, but the solution is of course more complex. We want to maintain vibrant city centres in all of Berlin's districts, in which department stores also play a role as anchors. They are not only places to go for everyday needs, but also magnets that attract other businesses, revitalise the surrounding area and create more social interaction. Last but not least, they ensure short distances and therefore less traffic. However, it is crucial that the retail sector continues to develop and become future-proof. This means that innovative concepts must be developed that take into account the changing use of these spaces in order to preserve the character of our Berlin centres.
Hans Stier: For real estate developers, the biggest hurdles usually lie in conversion work, whether it's noise or fire protection - and not least in the approvals from the authorities. Converting a former department store into a residential property is not that easy, even from a technical point of view. Especially as department stores are located in high streets where hardly anyone lives. Or would want to live there.
Franziska Giffey: Absolutely. Brick-and-mortar retail in city centres is under strong pressure to change, for example due to online retail. We need to be creative and find new ways to utilise and develop these spaces. In Berlin, we have already launched our "Centre Summit", which brings together representatives from retail, trade, politics, the hotel industry, gastronomy and business development to discuss precisely such issues and develop solutions. One topic is the mix of uses in department stores. Our aim is to create attractive, lively centres with modern, innovative concepts that attract people and offer them a diverse range of offers, encounters and experiences. This also includes ideas such as integrating culture, education and leisure activities into existing department stores, for example, in order to attract new target groups.
Hans Stier: In a nutshell, we want to create a social hub here. A place that attracts companies, is attractive to the people who work there and at the same time becomes a centre of attraction for the public. We don't want to land in the neighbourhood like a UFO, but rather operate the property together with the local stakeholders. In other words, we always want to remain in dialogue with local residents, politicians and business
people. I think a project like this always works better if it is carefully integrated into the area and not imposed on the neighbourhood. Particularly in Neukölln, especially in Karl-Marx-Straße, we didn't want to stand out like a foreign body.
Hans Stier: We wanted to realise the concept of New Work right from the start, i.e. in the architecture. A barista coffee machine and a football table are no longer enough. Today, companies that want to be and remain attractive to their employees have to offer a lot. This includes elaborate kitchens, perfectly equipped meeting rooms and open spaces for brainstorming sessions or customer meetings. At the same time, they also want places to retreat to for quiet and focussed work. We have taken all of this into account in the planning. But for us, New Work goes even further than that: after work, do a quick shop, go to the gym or jump into the pool? At Kalle, we have everything in one place so you can jump straight from the office into life. With our concept, we have already been able to convince renowned tenants who wanted to settle in a special place in Berlin. These include the Delta Group, Code University and the British record shop Rough Trade.
Hans Stier: Because the Kalle is there for everyone. And is definitely worth a visit. A special highlight will be the roof garden with its greenhouses and two restaurants with over 500 seats. An oasis above the rooftops of Neukölln, so to speak. The ground floor will be another centre of attraction. A food hall will be created here, where we want to offer culinary entrepreneurs a stage, a place where they can try out themselves and the market: The Kalle Hall. Also great: Kalle Live, where concerts, trade fairs or corporate events can take place. One of our tenants, Rough Trade, is already planning regular record release parties here.
Franziska Giffey: Kalle Neukölln is a very good example of how the innovative conversion of existing buildings can create space for new businesses, culture and social interaction. The location in the heart of Neukölln is of course fantastic. The former department stores' and multi-storey car park, which has already been used by Quelle, Karstadt and SinnLeffers, is being given a completely new lease of life. For bricks-and-mortar retail to survive, it has to offer more than just goods. The restaurant with its large roof terrace overlooking the city is one example of this. If we succeed in creating a complete package, it will strengthen Neukölln as a business location and Berlin as a whole. Kalle Neukölln could really become a model for the future of modern urban development in Berlin.
The interview was conducted by Constanze von Kettler, PR agency TEAM CODE ZERO.
(Source: TEAM CODE ZERO, December 2024 | "Conversion in German cities - What to do with vacant department stores?")
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