"Benko's Munich Strategy Proved to be a Smart Move": Explanation of the Rationale behind Benko's Munich Plan.
A Dive into Munich's City Center with Wolfgang Fischer
Meetup with Wolfgang Fischer on a Sunny AfternoonWolfgang Fischer, a prominent figure in Munich, meets us on his off-road motorcycle for an espresso and a hand-rolled cigarette, with the bustling Sendlinger Tor as the backdrop. It's the perfect time for a chat about Munich's city center.
A Businessman's Perspective
AZ: Hey, Fischer! The number of businesses you represent, how many exactly?WOLFGANG FISCHER: Close to 200 businesses, ranging from retailers and restaurateurs to lawyers, hotels, doctors, property owners, and more.
Munich's City Center: A Steady Growth
What's the percentage of these businesses?Hard to say, but among medium and large businesses in the mentioned sectors, I represent the majority of them. Many traditional retailers are part of our network.
Corona: A Turning Point
How has Corona impacted the city center?While Munich's city center typically displayed a steady growth after the war with minimal fluctuations, the impact of Corona was unprecedented. The city center looked eerily deserted, like a scene from a dystopian film, leaving everyone wondering about the future.
Rent before Corona
Wasn't rent already sky-high before Corona?In prime locations, especially for smaller shops, rent reached up to 300 euros per square meter. However, traditional companies with lease agreements on A4 paper have significantly lower rents.
The Demise of a Traditional Company
Which business's demise surprised you the most?The combination of Corona and online competition forced even traditional companies like Jeans Kaltenbach to close. It's a loss for Munich, given the company's rich history and my own personal connection to it.
René Benko's Building Plans
Have you ever met René Benko?No, but I've only heard positive things about him - that he's likable and a good conversationalist.
The Old Academy: From Statistical Office to Ruin
How would you describe the transition of the Old Academy?Once home to the Statistical State Office, the Old Academy was a high-security area, secluded from the rest of Munich. With a prime location in Germany's most visited pedestrian zone, I've always dreamed of an outdoor seating area at the Richard-Strauss fountain. Unfortunately, Benko's building plans have left the Old Academy in a dilapidated state.
The Main Station: A Never-ending Construction Site
The main station has been under construction for so long. Any insights?We're optimistic about the new construction of the main station, as it will serve as a focal point for the city once completed. However, the ongoing construction has overshadowed visitors' experiences, and we hope it will be wrapped up in the next few years.
The Future of Munich's City Center
Are you optimistic about Munich's city center?Our association remains optimistic, especially with the potential for Munich to host the 2040 Summer Olympics. We believe this could provide the necessary boost to bring the city center back to its former glory.
Foot Traffic: The Key to a Thriving City Center
How important is foot traffic for the city center?The city center primarily relies on its catchment area, which reaches beyond Munich itself to regions like Southern Bavaria, the Bodensee, and even Switzerland. With millions of passersby each year, we believe there's great potential for investment in the city center.
The Impact of Online Shopping
How has online shopping affected the city center?While online shopping surged during the pandemic, there's been a renewed appreciation for brick-and-mortar stores and the quality of in-person shopping experiences. However, we're not yet at the pre-pandemic levels of foot traffic.
Problems and Solutions
What are the major concerns for Munich's city center?Accessibility and traffic congestion are the main issues. The city center thrives on its catchment area, but the frequent disruptions in public transportation can make it a challenge for both residents and visitors.
The Demolition and Rebirth of the Old Academy
Moving forward, what can we expect for the Old Academy?Accumulata has already renovated the former Benko property, Karstadt Sport, and the move-in is imminent. The former Signa property on Rosenstraße is also making progress, with demolition completed and construction set to start in January.
We'll keep a close eye on the changes in Munich's city center, as it continues to evolve and adapt.
Capitalizing OpportunitiesThe varying sectors represented by Wolfgang Fischer present multiple avenues for investment, such as finance, real-estate, and retail businesses in Munich's city center.
Traditional Retail vs. E-commerceThe shifting dynamics between traditional retailers and online businesses have impacted the urban landscape, leaving some established retailers struggling amidst a growing e-commerce market.
Rebuilding and Investing in Real-EstateWith the demolition and redevelopment of prominent real-estate properties like the Old Academy and former Signa property on Rosenstraße, there's a promising future for investing in properties within Munich's city center.
