NOVEMBER 2019
a new look on REAL ESTATE
Trends report commercial RE
20 05 19 10
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CEUSTERS l Editorial
Creating value for real estate
Shops are an unmistakable part of our cities’ liveability and appeal
T
he predictions already date back as far as last year—the Belgian economy would slow down, as would the world’s. But the economy would be underpinned by strong consumption. An expectation which analysts the world over were hoping to see fulfilled. In the United States, American citizens are indeed continuing to consume briskly thanks to a dynamic job market and rising wages. In China, too, the government is lowering taxes in hopes of urging the country’s ever-expanding middle class to buy more. We’re seeing the same picture across Europe. Now that world trade figures are showing a sharp downturn and the old world’s exports are stagnating, it’s up to consumers to keep the economy afloat. This scenario is still what we’re counting on, unless, of course, another escalation in the trade war should further erode consumer confidence. During the past five years, Belgian economic growth lagged remarkably behind that of Europe as a whole, the result of the government tightening the belt to get its financial affairs back in order. Moreover, Belgian consumption growth remained relatively low due to a loss in purchasing power. The administration decided to keep our wage growth in check compared to our neighbouring countries, applying an index jump and stricter wage norm regulations. Meanwhile, however, things are on the mend. With the tax shift, the government is boosting purchasing power. If you add up the increase of wages on top of inflation, growing employment, and the lower rate of inflation, Belgians will be able to spend 3.5 percent more by 2021, the National Bank reckons. Obviously, that’s good news for retail properties, which have been under pressure for years. E-commerce is walloping brick-and-mortar stores, and the consequences are palpable. Retail industry bankruptcies keep popping up in the news. More and more shop properties are vacant; in others, rent prices are being challenged. First-hand experiences, unique events, and innovative concepts ought to entice consumers into spending money in physical shops again. That turnaround is in full swing. And that’s a good thing, because for towns and cities, shops are unmistakably part of their liveability and appeal.
Véronique Goossens Chief Economist Belfius
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CEUSTERS l Content
Content 2B Editorial Véronique Goossens: ‘Shops are an unmistakable part of our cities’ liveability and appeal’B 6B Retail: interview Arcadio Gil: ‘Shopping centers are having a challenging time’ 10B Retail: Shopping Center Survey 2019 Facts & figures about the Belgian’s shopping behaviorB 12B Retail: Shopping Center Survey 2019 Pop-ups: very much appreciated with consumers 14B Retail: interview Dries van Hofstraeten: ‘I see many new urban development projects with plenty of opportunities’ 17B Off ices: Interview Ronny Nuten: ‘No off ice without a little bit of fun’ 18B Retail: case ‘Les Grands Prés’ Three retailers tell us why they don’t want to miss out on LGP: Khira Dumont (Devred), Romain Batistini (Superdry) and Frédéric Henrotte (Fox et Compagnie) 20BRetail: interview Regional cities with big plans: Kurt Vanryckeghem (Mayor of Waregem) and Bart Tommelein (Mayor of Ostend) 22BAgency & Consultancy CEUSTERS agency deals Q1-Q3: Overview + 6 deals in the spotlightB 24BProperty management: interview Stefanie Van den Rul: ‘If you want to unburden your client completely, eff icient project management is essential’ 26BManagement co-ownership At the crossroads of management and marketing 28BIndustry: logistics Momentum for modal shift for retail 30BHuman resources: a closer look The big Ceusters family
COLOFON Realisation: Bereal - Publisher: CEUSTERS, Uitbreidingstraat 72 bus 2 - 2600 Antwerp
Arcadio GIl, CEO of Lasba
‘Shopping centers are having a challenging time’
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CEUSTERS l Retail: interview
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ith the continuing rise of influential online retailers such as Zalando, Amazon and the likes, shopping centres are having a challenging time. But is e-commerce steering physical stores into a slow and steady demise? Or will retail developers find inspiring ways to reinvent themselves? Arcadio Gil, a Spanish real estate agency located in Madrid and offering retail consulting services across the Spanish region, specializing in shopping centers. Lasba is the Spanish member of the international network TIRCA, The International Retail Consulting Alliance, created by independent businesses that are experts in their respective markets and share the same values and business philosophies. The breadth and quality of their cross-border service is significantly enhanced through sharing knowledge, regular international trips, meetings and constant communication with each other. Together they provide the best advice to help their clients cross borders. High online shopping rates are impacting revenues of traditional shopping centres. How can retail developers counter this trend? “The growth of the e-commerce retail has spread all over and the impact on the present and future revenues of the traditional bricks and mortar retail is without question.
X-Madrid
What is also clear is that the impact will not be equally distributed, that shopping centers are by far the retail property elements that will suffer least and the ones that are much more ready to find different ways to overcome the situation. Developers are already reacting to this, and, for instance, the percentage of square feet that is being dedicated to leisure and food and beverage is quickly expanding. This evolution is driven by the fact that consumers have a higher need for new experiences. They want to find something exciting outside of their own homes. At the same time, they want public spaces to play into their need for convenience. Hence, shopping centre developers are making more of an effort to create meeting points where consumers can relax or be entertained. The key is to give consumers what they cannot find online.” What type of concept appeals most to today’s consumers? “A very noteworthy example is X-Madrid, a groundbreaking retail concept by Merlin Properties, one
of the three largest shopping centre owners in Spain and Portugal. This new 40.000 square metres shopping mall that will open its doors this autumn, has truly reinvented the shopping and leisure centre experience. What is interesting here is that they have put together a collection of entertainment venues, health clubs, sports centres and fashion stores and thus combine untraditional retail services with entertainment and educational services. For instance, there is a deep diving centre where people can also buy diving equipment, but they can also follow scuba diving lessons, join a fan club, and rent or repair their own equipment.
'The key is to give consumers what they cannot find online'
The 3 key drivers to launching a successful shopping mall according to Arcadio Gil Differentiation It is not just about the big brands anymore. Differentiation is key. Independent retailers are needed more than ever, as they contribute to a better retail mix. But differentiation lies not only with the type of products or services offered, but also in the settings. Shopping centres used to be closed up buildings, but now there is a growing need for open air schemes, water features, attractions and special venues. The unique design of Docks Bruxsel is a great example of this. Modern shopping centre constructions are making way to a shopping experience with a more authentic and vibrant atmosphere. Location It is all about location - also in this digital era. The logistics property market is evolving very rapidly because of e-commerce: ordered goods have to be delivered in the closest proximity to the customer. In this logistic context, physical stores are becoming delivery points for online sales. Inditex, the largest fashion apparel retailer in the world, is already allowing a section of dedicated shopping floor space to be used for the delivery of clothes that were bought online. In the future, more and more back stages of physical stores will act as storage rooms for online sales. Shopping centres are particularly suitable endpoints for this as they are often located in the middle of cities. This could create a reverse synergy in customer behaviour, where e-commerce encourages customers to go to the physical shops to pick up the goods they ordered and incite these customers to buy other items.
On another unit, they can even surf on the premises with their own board - because the shopping centre is equipped with its own artificial wave pool. X-Madrid also houses a climbing wall, an organic supermarket and a dynamic area dedicated to indoor and outdoor leisure. It is not a traditional or conventional combination, but this type of concept will certainly define new ways, new approaches toretail.” A few of years ago, a growing number of retailers were using pop-up stores as a low-cost way to start a business and test new markets or products. Is there still a big role for pop-ups in the future? “Most definitely. I think that the popup market is still at the beginning of its economic journey. Some five years ago, Bikini Berlin, a pool of 20 wooden containers in the middle of a traditional shopping centre, was the first hugely successful pop-up experience . The idea of selling products in smaller, simpler locations with shorter leases inspired and continues to inspire a great number of people. And an increas-
ing number of shopping centres are accepting pop-ups as part of their concept. The intimate and short-term vibe of a pop-up store caters perfectly to niche markets and the sales of specialty or seasonal products. It also fits well into people’s need for ‘conscious consumption’, a more sustainable and ethical form of consumerism: a small store that offers
Technology Technology has been the driving force behind the birth and growth of e-commerce. But in the same way technology can benefit shopping centres and steer them into a new era, a different approach to consumer relationships. Gathering customer data through smartphone use is just as much of an opportunity for shopping centres as it is for e-commerce platforms. Technology can also improve and accelerate the customer journey with respect to mobility. Finding car parking, for example, is often a big challenge for shoppers. By installing sensors or offering car sharing opportunities, allowing car sharing spaces, or the use of the new mobility devices into the centre. There are plenty of issues where technology is helping our business. And there is much more to come in the immediate future.
fewer items seems more ecological than a hypermarket. Consumers are more conscious than ever. They don’t like to throw away things, they want to reuse as many of them as possible.” How do large retail developers respond to this changing consumer behaviour and the demand for a more sustainable retail market? ”The H&M Group is clearly making an effort by inviting customers to bring back items that they are not wearing anymore, so they can be recycled and given a second life. The Swedish network of shops of their chain store
& Other Stories even dedicates a percentage of its floor space to secondhand clothing. But H&M is not the only retail player that is considering the environment. A growing number of retailers is actively thinking about ways to prolong the life cycle of their products and to contribute to a sustainable environment. Sustainability is also a key factor for shopping centre developers.”
'We cannot approach retail buildings in any other way than by targeting almost zero energy consumption'
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CEUSTERS l Retail: interview
10 tips for the retailer of the future thesis results Patricia Verhoeven Alexa, Siri, Google Assistant or your smartphone can write shopping lists by themselves. Lunches for a whole week are delivered to your home in a large box. What added value can your local retailer still bring? Patricia Verhoeven, Shopping Center Manager at CEUSTERS, went back to school and followed the postgraduate trend analysis and implementation course at Hogeschool Gent (University College) with distinction. Her final thesis was about the future of local shops. As a result of her research, she has come up with ten tips.
1 BECOME A FELLOW TRAVELLER See yourself as a service provider. Customers are not looking for products, they are looking for solutions to make their life easier and more convenient. Chart their needs and offer a tailored package of services. Customers will pay for ease and service. 2 THINK IN TERMS OF NICHES AND HYPER-SPECIALISATION Anticipate the customer’s ‘youniverse’. Consumers demand authenticity and originality, tailored to their individual lifestyle. ‘Micro-multinationals’ are the new standard. Invest in a small but efficient offering, steered by technology and big data.
3 OPT FOR A RELATIONSHIP OF TRUST Retailers must show openly, honestly and transparently what they stand for. The shop becomes a service centre for the community around the brand. The retailer reliably guides the consumer through the stress of choice in the jungle of online offerings. 4 INVEST IN THE HUMAN TOUCH Customers come to a shop for social contact. Human interaction triggers emotions. Shop staff hold all the cards to make every customer a happy customer, especially when combined with technological innovation.
A legal framework for pop-ups Temporary restaurants or pop-up shops are part and parcel of modern shopping streets. Both start-ups and established businesses use these locations to try out new concepts or to open temporary outlet stores. For owners/landlords, it is a way to bridge periods when the premises would otherwise stay empty. ‘Until recently, there was no specific legislative framework for this and we had to rely on tenancy-at-will leases and the framework of the 1951 Commercial Leases Act,’ says Lieven Peeters, partner in the ALTIUS legal practice. ‘This changed in 2016 with a Flemish decree on short-term letting for commercial and crafts purposes. Wallonia and Brussels followed suit in 2018 and 2019.’
X-Madrid
With regard to construction, you mean? ”Well yes, there is also a huge change in the building construction and maintenance field. Today developers cannot afford to construct a new building if it does not have a serious approach to sustainability. The time when we could just waste water or energy resources, or throw away everything without any consequences is over. We cannot
approach retail buildings in any other way than by targeting almost zero energy consumption. Developers are aiming for the highest possible goals in terms of water consumption, solar energy, reusable materials, local components and waste management. It is amazing to see some new projects arising today on this path.” So it seems shopping centres have a bright future ahead? ”Definitely! Trinity Leeds, Markthal Rotterdam, Mall of Scandinavia, Liverpool One, Puerto Venecia. In almost every European country, there are so many exciting new shopping and leisure centres to explore. E-commerce has encouraged retail developers to turn it up a notch, but it cannot replace the real-life experience.”
5 RELY ON PRECISION MARKETING Data is the new gold. Listen carefully to your community at every micro moment of the customer journey. If you analyse that data correctly, you will be en route from retail to ‘me-tail’ for each individual customer.
The number of sharing concepts is increasing massively. In the fashion sector, we are seeing more and more circular models. In food chains, we are seeing a lot of focus on local, organic and authentically produced products, with a fairtrade certificate, grown in an environmentally friendly and organic way.
6 EMBRACE TECHNOLOGY Make your shop ‘smarter’ with virtual and augmented reality, anticipatory shipping, dynamic pricing, smart devices, etc. And above all, start using a modern payment system, cash is out.
8 GO FOR THE ULTIMATE EXPERIENCE Shoppers don’t just want to buy products and services, they also want to see, feel and test them. Involve them emotionally and create space for personalisation, preferably in an inspirational environment. New technologies make escapism and fantasy in real life easier.
7 THINK CIRCULAR AND LOCAL Customers are increasingly deliberately choosing sustainable products.
Although commercial letting is a regional matter, for now the legislation defines similar principles. ‘It relates to contracts for a maximum of one year. The commercial lease ends ipso iure on the last day of the contract, so no notice needs to be given. The tenant and landlord can, however, extend the contract under the same terms for up to one year by mutual agreement. They can also terminate the lease at any time, or convert it into an ordinary commercial lease, the traditional model for nine years. The notice period is one month in Flanders. In Wallonia and Brussels, that one month notice period only takes effect as of the first day of the next month. after notice has been given.’ The legislation for short-term leases is quite simple and non-compulsory, meaning that both parties can add or change conditions. ‘Taxes are included in the rent as standard. The costs for utilities are paid by the tenant. The tenant may also convert the property, but the costs must not exceed one year’s rent (except in Brussels) and the landlord must be informed in writing in advance. In principle transfer and sub-letting are prohibited.’
9 CHOOSE CO-CREATION Innovate with your customer community, your colleagues and strong platforms, Continuing to invest under your own steam is becoming unaffordable. Give yourself a competitive edge through co-operation. 10 INVEST IN FRICTION HUNTERS Have your staff continuously seek out small and large obstacles that could affect your relationship with the customer. You can eliminate many frictions with an open mindset with no additional investment.
Shopping survey 2019 Conducted in 6 shopping centers and retailprojects, both inner city and out-of-town, geographically spread over Belgium
Visitors’ age 0-19 years
18,5%
22,8%
20-29 years
30-39 years
14,2%
Where do visitors come from? 40-49 years
21,9%
11,8%
Zone 3 +15 km
48,1% 30%
Zone 1 1 to 0 km
50-59 years
11,9%
Zone 2 11 to 15 km
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CEUSTERS l Retail: Shopping Center Survey
60+ years
How visitors come to the shopping center
20,9%
Frequency of visit Weekly Monthly Less often
40,0 % 38,5 % 21,5 %
15,1% 13,4%
60,7%
10,8%
Visitors’ opinions
Noticed vacancy
Visitors’ gender
56,9% Pop-up shops / Vacancy
64,5%
Yes No
35,5%
Do vacant stores disturb you? Yes 34,3% No 62,2% Undecided/no opinion 3,6%
Budget spent 16,8% 27,2% 56,1% 0-24,99 euros 25-124,99 euros 125 euros
6 shops visited on average
Do you like pop-up shops? 59,6% 40,4%
Will you come shopping less often because of the vacancy? Yes No Undecided/no opinion
41,7% 49,4% 8,9%
Pop-ups: very much appreciated with consumers V
acancy rates in Belgian high streets are rising: in early 2019 about 10% of shops were unoccupied. For the first time, this study has now found that unoccupancy deters visitors. 1 in 3 Belgians are bothered by vacancies in shopping centers. Moreover, 1 out of 7 will come shopping less because of it.
Shopping mall managers and landlords have been trying to buck the trend for a while now, with all sorts of initiatives, including popup stores, which consumers are enjoying very much. Those were the findings of the annual shopping survey of 1,605 Belgians conducted by CEUSTERS, the largest shopping center manager in the country.
Pop-ups
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CEUSTERS l Retail: Shopping opping Center Survey
Shopping center managers and landlords are attempting to buck the unoccupancy trend by bringing in pop-up stores and other temporary concepts. In the first 3 quarters of 2019 alone, the number of temporary rental agreements amounted to 5.6% of the total number of shopunits in shopping centers managed by CEUSTERS.
'We consider lowering vacancy rates as one of our most important assignments. Pop-ups are an excellent solution to this issue. They’re exciting because they give rise to creative, new shops in the short term, and they come in all shapes and sizes.' Hans Van Laer, Head of Marketing and Research CEUSTERS
And those pop-ups remain exceptionally popular. 6 out of 10 shoppers love pop-up stores (26% even love them very much, vs. 13% who don’t love them at all). Nearly 8 in 10 shoppers notice no quality difference between pop-up stores and regular stores.
Vacancy rates Both cities like Antwerp, Brussels, and Charleroi and towns such as SintNiklaas or La Louvière are facing the same issue: brick-and-mortar shops are having an increasingly hard time keeping afloat. This year, for the eleventh year running, unoccupancy in Belgian high streets is on the rise. Today 11.9% of shop properties are unoccupied. By way of comparison: when the economic downturn broke out in 2008, a mere 7.6% of commercial spaces wasn’t being used. This year, about 7.4% of store properties in shopping centers are empty. But there are big differences. Inner-city shopping centers are confronted with higher vacancy rates than their extra-urban competitors. According to experts, accessibility definitely factors in.
“Accessibility is a hot potato in the retail industry. Increased innercity vacancy rates are without a doubt also due to people finding it harder to get to cities or having to pay more for parking because of gridlock or bad accessibility. That’s why many retailers want to engage in even more dialogue with local authorities.” Hans Van Laer, Head of Marketing and Research CEUSTERS
The reasons for the unoccupancy aren’t hard to find: fewer passers-by, more online orders, evolving consumer behaviour, and accessibility issues. Consequently, it’s not just the high streets dealing with empty storefronts, but shopping malls too. CEUSTERS’ yearly survey—the biggest in Belgium, now on its fifth edition—is now, for the first time,
coming up with unique insights into what effect vacancy rates have on shoppers. And it turns out unoccupancy doesn’t just bother shop owners and managers, but especially the thousands of visitors. No fewer than 1 in 3 Belgians (34.3%) indicate they’re annoyed by empty properties and spaces. One in 7 (14%) will even come shopping less because of them.
More youngsters, fewer pensioners The annual survey found that the average Belgian shopper was 40 years old. That’s about 18 months younger than last year. What’s equally remarkable: shopping centers are attracting more young people. Specifically, the number of teenagers and twenty-somethings in shopping centers rose by 5.6% compared to last year. At the same time, fewer over-sixties are interested in a trip to the shopping mall. In 2018, more than 1 in 4 shoppers was over sixty—today, only 1 in 5 is. When we go shopping, we like to take our time. More than half of Belgians (53.3%) shop for two hours or longer. The favourite things to spend our cash on in the shopping centers are: 44% clothes, 13% leisure, 12% personal care, 9% food and drinks, and 5% shoes.
“Many shopping malls our country have increasingly been banking on experiences for years now. They’re organising shows for children, fashion shows, but also expositions and even car shows. These are drawing in many young people. At the same time, there’s more of a focus on F&B operators, and everyone loves those.” Hans Van Laer, Head of Marketing and Research CEUSTERS
6 shops on average
Les Grands Prés - Mons
When we go shopping, we fork out an average of 81 euros. In many cases, this spend is for the whole family. More specifically, we can say that more than one out of two Belgians—56%, to be precise—spend between 25 and 125 euros on the average day of shopping. It may be a cliché, but women are still the most frequent shoppers: 64.5% of women versus 35.5% of men. Nice little factoid: we walk into 6 shops, on average. And finally: despite the climate discussion, 6 in 10 shoppers still drive their cars to the shopping center. Compared to last year, the number of shoppers using public transport has not increased, either.
‘I see many new urban development projects with plenty of opportunities’
S
ome 10 years ago, the city had centre managers but hardly any data monitoring. My first job was to inventory the retail industry in Antwerp: to gather knowledge and use that to advise on policy about permits, policy plans, opening hours etc.,’ Dries van Hofstraeten explains.
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CEUSTERS l Retail: interview
‘Antwerp, Belgium’s number one retail destination, is continuing to build on the Flemish policy lines but plays its own trump cards. In 2013, we developed a city policy plan for retail, which we updated this year. The focus is on keeping Antwerp on the map as a pioneering national and international shopping city. For example, we are seeing that new and innovative shopping concepts are not only electing to conduct a test period in Antwerp, but are actually staying here permanently. As a matter of policy, we are focusing on making the central areas more compact, since we have too many square metres of retail space. Mobility is another consideration. As is the quality of the retail businesses in the local centres, the districts.’ What are the greatest trends at present? ‘Up to 2010, 2012, we saw major growth in the number of retail premises. After that, we saw the supply stagnate and decline, resulting in empty shops. Even Antwerp cannot escape this trend. In places with little future, we ask landlords to include residential use or to bring in a mix of services and restaurants. Some streets are no longer shopping streets where you go to wander. You have to choose shops that are spread out.’ ‘The number of passers-by in central streets is falling as a result of fragmentation, of e-commerce and because we are spending less money on shopping as an activity.
the landlords that are having to look for them and adapt their premises. You can see new models emerging, for example, often with an integrated café or restaurant.’ In the food sector, the competition is still strong, even in less obvious locations. The question is how long that can continue. As a city, we naturally want there to be as many shops as possible within walking distance for an entire district.’
Dries Van Hofstraeten, retail expert - city of Antwerp
The shopping street as such is disappearing. It is gradually being replaced by a street for all your day-to-day necessities, such as childcare or health insurance. A shoe shop or clothes shop certainly makes little sense in the local centres. Are you as a city sitting at the table too? ‘We are using big data, pure technology, to make digital maps. For example, we can use WiFi connections to count the number of passers-by. We share those maps free of charge with anyone who has an interest in them, for example estate agents and retail chains. ‘We also talk to retailers to keep abreast of developments. What concepts are they looking for? Maybe we can guide them to the right estate agents. For example, we have noticed that the expansion of fashion shops has stagnated. Some clothing brands still want to come, but they are stumbling over the high rents and the fear of not making much turnover. Often, the landlord has to water down the wine a bit to make the premises affordable. In the past, retailers were queuing up to rent a unit, now it is
How can you ensure a good match between retailers and estate agents? ‘We try to create a direct line. We try to analyse the market objectively and raise awareness. Sometimes, the estate agents need to take a broader view of their portfolios, move away from the purely commercial or residential. Co-working spaces, for example, are a great addition and can attract a lot of people. Sometimes we get requests for locations and we pass these on to the estate agents. Of course, we let the market take its course, but we can and do give advice. We are regularly in touch with a large player like CEUSTERS. They are an interesting party because they have their finger on the pulse on a daily basis, much more than we do.’ Are empty premises the biggest challenge? ‘Empty units cause panic, just think of the media report about Schuttershofstraat. As a city, of course you need to see that signal, even if there is usually a wide range of reasons. Empty premises are a multi-headed monster. The city can start investing again in such a street, but it’s no magic wand. The landlords too need to look at another way to use their properties. For example, if there are restaurants, visitors tend to stick around longer in a street. There is certainly no one-size-fits-all solution. You have to look at each case individually and tailor the policy accordingly.’
FabLab brings bustle to the shopping centre
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CEUSTERS l Retail: interview / Offices: Interview
'Everyone is rethinking the retail concepts'
So clustering is important? ‘We want to avoid wild growth outside the centres and in the peripheries. Out-of-town stores are often poles that cause fragmentation. We do want supermarkets and DIY stores outside the centre, but not clothing stores and retail. It is also indefensible from a mobility point of view.’ ‘The city council dreams of attracting an Ikea or Decathlon to the Meir. People will also come back to the centre to work and live. Brussels has many more offices in its city centre. You notice that at lunchtime when their staff go out for lunch, to do their shopping, etc... There should be more and different types of offices in our inner city. ‘The Karel de Grote University of Applied Sciences and Arts is also based on the Meir, which means thousands of students let loose on the Meir over lunchtime. Fortunately, landlords are seeing that relying exclusively on the ground floor is a major risk.’ Are you optimistic about Antwerp as a shopping city? ‘Certainly. We also have the demographic. Our population is continuing to grow, and these newcomers have to buy things.’ ‘Everyone is rethinking the retail concepts. There will still be victims in some places. Certainly in the local centres it is not always easy to find a new use for retail premises. On the other hand, there are other centres that are transforming, where empty units are used for offerings that are better geared to the neighbourhood.’ ‘I also see many new urban development projects with plenty of opportunities. And the roadworks will not last for ever. We will become more accessible again.’
Empty retail units are one of the most pressing challenges for town centres. The Pieter van Aelst shopping arcade in Aalst devised an award-winning solution. FabLab Factory first moved in in the summer of 2016 and is still bringing added value to the shopping centre and the town. A FabLab - short for fabrication laboratory - is a creative workspace with equipment including 3D printers, laser cutters, cutting and printing machines and a whole host of electronics. Most of these FabLabs are found in universities and innovative businesses. ’We were the first shopping centre to create such an experimental space,’ Shopping Center Manager Patricia Verhoeven says proudly. ‘In the walkways we also call it our fabulous laboratory.’ The FabLab is not there to make a profit. ‘It is an open source for students, amateurs and anyone who wants to learn from other people, whether artistic, technical, creative or business. The people behind the project can continue to use the premises as long as they give free workshops on Wednesdays and Saturdays. And they are very successful. Of course, that is also positive for all the other retailers in the arcade, as it generates higher footfall. Moreover, it is a great example of a forward-looking initiative that is helping to shape the new industrial revolution. You don’t come to shopping centres just to shop; you come for an experience and to co-create.’ CEUSTERS has picked up two major international marketing prizes with ‘FabLab - be fab!’. ‘We won silver at the ICSC Solal Marketing Awards organised by the International Council of Shopping Centers, an organisation covering all the world’s professional players with over 70,000 members. It is a real honour and quite a performance, given that, as a small project, we have no marketing budgets yet we are mixing it with the big boys. We also won the CSR prize awarded by the Belgian-Luxembourg association of retail and shopping centres (BLCS).
No office without a little bit of fun Office buildings in the middle of nowhere, without any retail, leisure or a decent connection to public transport? Forget it. “A recent shortage of new office spaces is hindering the growth of the Flemish office market, especially in Antwerp and Ghent. At the same time, new developments in smaller cities are on the rise.”
“W
ell-being, comfort and experiences. These are the key assets for companies to attract the next generation of employees. There is a war on talent, where millenials are in the driving seat of whom they want to work for. Before making a decision on where to kickstart their career, young employees want to explore the various perks available on the market. This offers an opportunity for companies to stand out, so they are doubling down on creating ‘fun offices’ where people love to work,” says Ronny Nuten, Head of Office Agency at CEUSTERS. He’s been in the business for over twenty years and knows the office market like the back of his hand. “These young people often don’t have their driving license yet, so they want to live and work in the city. A good location close to public transport is essential, hence the success of projects like Post X and The Link in Antwerp. Another example of a new coworking project lies in Turnhout, located near the train station and at walking distance from shops in the city centre. Such projects are
likely to be successful for a variety of reasons, but most importantly: their location and the presence of retail or leisure. The offices are accessible by car or public transport, and offer great alternatives for people who want to avoid the traffic congestions. Also in retail environments are coworking spaces becoming key. HR departments are getting more involved when it comes to the location of the offices. Having bars, restaurants, sports facilities and day-care centres nearby is definitely favourable. Especially if the companies can’t provide these amenities in-house. The Loop, for instance, in Ghent, which is currently struggling with this issue. Yet, this will most likely change soon with the new office projects from Banimmo, which will include an array of facilities and catering options. Assets that are highly needed if they want to attract the right talent.” According to Nuten, there is a shortage of contemporary office spaces in Belgium, especially in Brussels, Antwerp and Ghent. “While we’re waiting for new developments, we have no other option than to work with the buildings at hand, which are often less sustainable and energy-efficient.” The most remarkable trend over the past few years is the rise of so-called in-between cities. “As mentioned previously, Turnhout offers a great alternative for people who want to avoid the traffic jams around Antwerp. SintNiklaas is another great example.”
'Coworking in retail environments becomes key'
“When we look at Brussels - well equipped with public transportation - we see, as a paradox, ‘urban fear’ of people who want to avoid the city centre as much as possible. It’s nearly impossible to get to the city by car, and nearby cities like Mechelen and Aalst are reaping the benefits.” “There’s one particular city that stands out more than the others in Flanders: Waregem, between Kortrijk and Ghent. West-Flanders is always going to be a very distinctive market, with its large amount of family-run SMEs that would rather buy property than to rent. What we’re seeing now is that many of these companies are looking for young potentials to lead their R&D departments. They don’t have the necessary space available for these employees on their own premises, which explains the success of the office spaces near the motorway exit in Waregem. Despite the growing awareness for the environmental issues, the SDG (sustainable development goals) of the United Nations, young potentials usually get a company car. This makes it quite difficult for them to set up shop near train stations, because, on these spots, the ratio of parking spaces per 100 m2 is far more limited. We do notice that the attitude is changing, mainly driven by the way that companies are handling transport expenses for their employees.”
Office-project Niefhout - Turnhout
Shopping is going full steam ahead Shopping center Les Grands Prés in Mons is located in the periphery of the city centre and boasts some 100 shops on a surface area of 45,000 square metres (total retail cluster on site is 100,000 sqm). With over 6.3 million visitors in 2018, LGP is one of the area’s most important commercial attractions, whose reach extends far across the border with France. Three retailers tell us why they don’t want to miss out on LGP.
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CEUSTERS l Retail: case ‘Les Grands Prés’
'A French brand’s Belgian pied-à-terre'
Khira Dumont, Devred
“B
eing French, I’m overjoyed that I got to open Devred’s first Belgian store in 2016,” says Khira Dumont. “ The men’s clothing brand has been around since 1902 and its target audience is classical, contemporary men. It ’s catching on quite well in Belgium, which is more open to novelty than France. Meanwhile, we’ve also opened shops in Tournai and Nivelles. A fourth store may be in the cards.” “A shopping mall such as LGP is a dream location for a brand like Devred. It attracts very international crowds. The French like crossing the border to enjoy the congenial atmosphere between shoppers and retailers here. We also get many foreigners working at SHAPE, NATO’s military headquarters located here in Mons. Generally speaking, our clientele is the middle class, who aren’t just here to discover things, but also to spend money.” According to Dumont, LGP provides a lot of support when she organizes events. “And it’s not just material support, such as standing tables when we organize an al fresco reception. The shopping center manager (part of the CEUSTERS property management team) always pops by personally to see how things are going. That feels good. There’s also a friendly atmosphere between the retailers—for example, we work together with a perfumery in order to pamper our customers.”
Romain Batistini, Superdry
“O
ur shop at Les Grands Prés is the best performer between Brussels and Bordeaux, with the exception of Marne-laVallée outlet store,” store manager Romain Batistini explains proudly. “I’m hearing the same things from my colleagues with other brands here in the shopping centre. Why the shops are doing so well? Because we’ve got so many visitors coming in. There’s a dynamic atmosphere here, we’ve got the wind at our backs.”
'It's like a cruise ship here'
The wind in the sails isn’t the only reference to the sea. According to Batistini, LGP actually resembles a cruise liner. “There’s a congenial atmosphere between all the passengers. When I walk down the gallery, I have a chat both with my colleagues and with the cleaner. The manager stops by regularly, shows interest, and we exchange bits of news. Here, we don’t talk about the weather on board, but about our volume of business, our concerns.” “That great atmosphere charms customers as well. They’re enchanted with the convivial, family ambience and they head over here to check out the many activities the centre organizes, such as during the holidays or during fashion week, when celebs dress in the retailers’ brands. Superdry is one of the more expensive brands, but we’re definitely in the right place here.”
Frédéric Henrotte, Fox et Compagnie
B
elgian toy store chain Fox et Compagnie has only been around since 2014, but meanwhile they ’ve got fifteen outlets in Wallonia and Brussels. “ We’ve been here in Mons since 2017”, says co-CEO Frédéric Henrotte. “Contrary to what many people think, we’re not aiming at the upper-market segment. We sell decent toys for under 10 euros, while the average market price is 13 euros. It ’s just because we don’t want to be an elitist toy store, that we set up shop in malls. Quality toys
'Experiences are the future of retail'
should be available to everyone, that’s our mission. Here at LGP, we’re the only toy store, so we’re definitely diversifying what ’s on offer.” According to Henrotte, LGP is a strategic location. “When I talk to friends from this area, I hear they come shopping here. This is the place to be in the Mons area. In addition, this shopping mall is doing well. You don’t have to worry about marketing or commercial initiatives. Also, we like to anticipate on that proactively. Last summer, there was a big sandbox in the main hall. Well, we wrote to our beach gear supplier and asked them to deliver the necessary material. In the autumn holiday, we organised a board games fair. It shouldn’t all be one-sided. That’s the only way we all benefit. We shouldn’t just bank on sales, but on the experience as well. That’s the future of retail.”
20
CEUSTERS l Retail: interview
Regional cities with big plans The heart of the city, the marketplace and the surrounding shopping streets. Mayors are doing the utmost to make their city centres appealing and are looking for solutions to respond to the challenges the retail industry is facing. With its many years of professional experience, CEUSTERS assists them, also outside shopping centres and retail parks. The real estate group joins local authorities in brainstorming about the metamorphosis of smaller city centres, where the marketing of shopping streets is concerned, for example. In addition, the collaborators of CEUSTERS are taking on an active role in retailer associations. Ostend’s Bart Tommelein and Waregem’s Kurt Vanryckeghem give us their view.
'Negotiations with retailers? We leave those to professionals' Kurt Vanryckeghem, Mayor of Waregem
A
s a city, Waregem has an important central function. Inhabitants of the square formed by the towns of Tielt, Deinze, Oudenaarde and Harelbeke don’t just come to Waregem to do their shopping, they also come to the library, the swimming pool, or the cultural centre here. “On top of that, many people settle down in our city centre,” says mayor Kurt Vanryckeghem. “At meetings for new inhabitants, I often find a lot of people that are older than sixty. Those are people buying a centrally located apartment here, so they can do all their shopping with a trolley.” “It’s not just quick and easy to park your car in the centre of Waregem, it’s about the size of a postal stamp. On an axis that’s only some hundred meters long, you can find all the facilities you need. We’re consciously using town planning to make the high street more compact. Within the perimeter we determined in our commercial strategic plan, we’ve made stores mandatory in new builds. The long shopping streets of olden days are a thing of the past. Thirty ladies’ boutiques and seventeen shoe stores, those days don’t come back. And yet, Waregem still boasts a nice range of retailers, but we do counter fragmentation.” “The heart of our city is shopping centre Het Pand. In the 1970s it was a huge, trailblazing project. Now its age is showing, in both the building itself and the shops on offer. For the renovation and to upgrade the offer, we’re calling on CEUSTERS. We’re opting for a professional partner because our relationship with the retailers is too intense
for us to be negotiating with them ourselves, to be changing the terms of contracts, to be discussing moves, etc. CEUSTERS’s collaborators aren’t just taking care of how the premises are decorated, but also of who occupies them. Temping agencies or showrooms don’t belong there, but high-appeal perfume stores or clothing brands do.” The renovation of Het Pand—fully owned by the city through the autonomous municipal corporation— is a long-range plan requiring a 20-million-euro investment. “We’re not just tackling the shopping centre itself, but the entire surrounding area as well. We’ve already built an underground parking garage for 400 cars. We’re continuing to manage all these things ourselves, so the municipal authorities can act as regulator. There’s barely any opposition to this. On the contrary, local tradespeople are happy to see Het Pand being updated. We hope this will inspire shopkeepers in the surrounding streets to renovate and create added value, too.”
Bart Tommelein, Mayor of Ostend
“O
stend is the only city by the Belgian seaside. Our shops don’t just appeal to visitors from neighbouring towns and municipalities— second-home owners also come here to shop on weekends. Economically speaking, tourism is the driving force behind our city. We attract overnighters and day-trippers to Ostend with numerous events. Cleverly targeted marketing campaigns help us put Ostend on the map. The cooperation between the Ostend tourist office and central management, who organized innovative shopping events together, is also a cornerstone.” “The centre of Ostend is in a tourist zone, which means shops can also open on Sundays. Our commercial centre is right by the beach. Many shoppers combine different things: they go walking before or after shopping, they go for a meal, they go and see the football, or they visit an exhibition. Roadworks are an important challenge. We try to limit the inconvenience for retailers and shoppers. At the same time, we’re working on a new, smart parking plan, ensuring visitors drive as little as possible in the city centre. With a shuttle, for example, they should be able to get to the low-traffic streets easily.” “E-commerce and other novelties are on the up-and-up. In Ostend, we choose to focus on innovation and experience. Among others, our centre manager ensures a good mix between large chains and original boutiques. Visitors need a reason to come to our shopping centre. And why shouldn’t they discover new things here and have them delivered to their homes?”
'We're further boosting occupancy rates'
“These past few years, our retail associations have professionalized and set up two non-profit organizations. Our retail community was asking for a fixed point of contact, collective actions, and promotions. They got those thanks to our centre manager and coordinator. In Ostend, we can boast decreasing vacancy rates, as opposed to similar cities. A business development manager is actively trying to convince retailers to open here. The Ostend tourism offices help to build the image of a city where there’s always something to do. Even though we notice demand is highest for larger premises. If necessary, I’ll sit down with real estate operators for this opportunity, in all transparency.”
CEUSTERS AGENCY-DEALS Q1-Q3 2019 + 6 deals in the spotlight
Evergem
Merelbeke PreZero - Fost Plus (Industry) Surface: 27,000 sqm Type deal: Purchase
Fit-it (Offices)
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CEUSTERS l Agency & Consultancy
Surface: 2,640 sqm Type deal: Lease
Industry: 68 deals : + 200,000 sqm Offices: 82 deals : + 30,000 sqm Retail: 83 deals : + 14,000 sqm
Cheops (Offices) Surface: 2,860 sqm Type deal: Lease
Struik (Industry)
Schoten
Surface: 27,060 sqm Type deal : Purchase
Mortsel
Kontich
Holland & Barret (Retail) Surface: 183 sqm Type deal : Lease
Namur
Snipes (Retail) Surface: 160 sqm Type deal : Lease
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CEUSTERS l Property management: interview
‘If you want to unburden your client completely, efficient project management is essential’
M
oving an elevator a couple of feet to the left or right in a shop may seem like a small detail on paper, but it can have a severe impact on the retailer. Because, for example, the ceiling will need to be reconstructed. CEUSTERS’ project managers unburden clients on these relatively small-scale operations, but also on much bigger projects. “We do something different every day,” says Stefanie Van den Rul, Head of property management at CEUSTERS. “Project management is a branch within the property management department in addition to the financial, administrative, and legal management branches. This branch is increasingly growing into a separate business unit, because we notice customers require additional services. More specifically, they need to keep their premises sustainable by doing in-depth renovation works or smaller alterations. We aim to support our clients in extending their buildings’ lifespan, while also engaging in more conventional property management.
The six stages of project management “Project management aims to ensure that work is done as efficiently and effectively as possible, to disencumber the clients, and to improve the customer experience,” says Stefanie Van den Rul. “Nevertheless, clients are free to pick and choose specific services. We don’t insist on taking over all steps, nor do clients have to go along with all of our proposals.” 1 Project analysis. What do we have to accomplish? We list all possible suppliers and draw up specifications. 2 Requesting permits, in case this is required. For example when we alter façades or building structures in cooperation with the architect. Sometimes, this task is the responsibility of the third party that executes the construction works, since we are not a contractor. 3 After the pre-analysis, we prepare the actual requests for quotations and the quotations themselves. Afterwards, it’s up the client to select a contractor. We’re in constant communication and obviously don’t impose our choice. 4 The award stage: in this stage we conclude agreements with the selected suppliers. 5 Following up the work from A to Z. This even entails invoicing, which we first inspect before sending it to the client. He doesn’t pay until we give the go-ahead. 6 The last stage is delivery. We aim to completely unburden the client and strive for top-notch customer satisfaction. Especially in retail parks, this also entails an improved customer experience and long-term added value.
'There is one constant to the narrative: our tailor-made approach.' Coordination and control A typical example of project management is the fitting out of a new store for e.g. a clothing brand in a retail park or shopping center. “Usually, the previous tenant has emptied the premises completely, leaving them in shellstate, aside from the occasional sprinkler system. A contract is then concluded between the tenant and his contractor, with CEUSTERS taking care of the assessment, coordination, and monitoring of the studies, plans and works related to the fitting out of the store, until the actual opening. These projects need to adhere to legal standards and comply with the specifications agreed between tenant and contractor.” “It’s not strictly necessary, but it’s obviously a plus when we know the building that’s undergoing the work. That means we know
Stefanie Van den Rul, Head of property management
about its business, facilities, and finances. As managers, we know the complete history of the building, how it’s put together, the as-built plans, etc. The party paying us for that sort of coordination effort is the tenant—either a lump-sum payment or per square metre.”
New technology Project management is increasingly popular because owners and tenants are having to comply with ever more legal requirements. “In any event, you need a professional who’s up-to-date on the newest tech.” However, there can be more to project management than just coordination. “There’s an example from the retail industry: the extension of the Les Grands Prés shopping mall in Mons with simultaneous refurbishment of the food court. We struck an agreement with the owner-manager and took complete charge of the project. Our aim was to completely unburden him.” “These past few years, we’ve built up a great deal of expertise in these types of projects, thanks to our frequent collaborations with engineering agencies, architects, etc., which also helps us to keep costs in check.” “The increase in the number of projects is also related to the arrival of new technologies, such as the installation of all sorts of sensors and measuring equipment. In the long run, these investments lower the costs. Think about measuring the utilities, for one, which provides us with a better view of usage and lets us solve problems proactively— even from a distance. Occasionally, CEUSTERS also manages smaller projects, such as LED relamping. There is, of course, one constant to the narrative: our tailor-made approach.”
Tielt-Winge Gouden Kruispunt
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CEUSTERS l Management co-ownership
At the crossroads of management and marketing
R
etail is about more than just sales. It’s also about working and living together with your colleagues and competitors. The challenge for owners and tenants of retail properties consists in reconciling the legal, commercial, and technical aspects. “The Gouden Kruispunt site in Tielt-Winge is one of those places where our craftsmanship really shows,” says Eric Wauters, head of the CEUSTERS co-ownership department. The junction—it’s now a roundabout—of the regional N223 and N2 roads in Tielt-Winge is called “Het Gouden Kruispunt”. It’s the name of an important retail park in the Hageland, a 45.200-m2 plot of land that comprises 60 properties. It’s a typical strip mall project, but a very large one that’s owned by 26 different proprietors. “Since July, we’ve been in charge of managing the park and that’s no coincidence,” says Elke Franckx, who’s doing firstline follow-up of this project. “Het Gouden Kruispunt is an ex-
traordinary commercial success and obviously the owners like to keep it that way. They opted for CEUSTERS to manage the premises for several reasons.” “On the one hand, they want to outsource property management to professionals. We took over managing the communal areas from the owners who, until recently, took care of that themselves. Our co-ownership department has all the know-how required to ensure legal matters are dealt with by the book. On the other hand, the owners have been asking for the commercial policy to be taken to the next level for years. At CEUSTERS, we also have an extensive marketing department to fully express the commercial aspect. In other words, this synergy is an enormous added value for the owners of Het Gouden Kruispunt. Since the start in 1986, a new era in the history of this park has begun.”
First commercial proposals “In Tielt-Winge, we’re not managing an association of co-owners, strictly speaking. We’re engag-
ing in both property and park management . That request came from a number of owners with whom we’ve had a good rapport for years. The owners pointed out the tender to us thanks to this two-fold asset we could pitch.” This two-fold asset put into practice means that the owners and tenants of Het Gouden Kruispunt have a SPOC, the portfolio manager, who takes care of the operational knowledge of the co-ownership department, the retail management department and the technical & facility services. “In addition to our Antwerp headquarters, we have branch
'Professionalization and continuous training is a must.'
Wijnegem Shopping honoured for marketing events at ICSC’s European Retail Forum
offices in Hasselt and Brussels, which means we can always get on-site quickly when we’re called to intervene.” Initially, CEUSTERS worked informally in Tielt-Winge, and those contacts yielded an enormous amount of information. “We were able to convince the owners of how important it is to keep records. How many visitors come to one end of the road and how many to the other end? Where do they go, and when? The co-owners are investing in a counting system. This allows us to find out what impact certain actions have and to determine what added value the owners achieve. Knowledge is power. This allows us to make rational and in-depth analyses. It’s a simple investment, but a big step forward.”
Professionalization is a must To get off to a good start, the preparation of the first general meeting is of great importance. “At such a general meeting we present our proposals, the co-owners approve the budget, they vote on new things, etc. Over the years, the legal structure of co-ownership was often not completely adapted to the most recent legislation. We always try to find the clearest and most efficient solution for any project. This takes time, because first and foremost, the framework must be flexibly workable. On the 1 st of January, the new co-ownership law will come into effect and therefore many adjustments must be made. Professionalization and continuous training is a must. Most of our employees, including the agents, have a master’s degree and thorough legal knowledge. If they don’t, we will offer the necessary additional training. Whenever corporate real estate is involved, you need to know your way around the tax and finance aspects, VAT regulations, etc. It may be clear that there is a bespoke solution for every project, as long as the right people are involved. This is where CEUSTERS appears.”
On September 25th, Wijnegem Shopping – part of the management portfolio of CEUSTERS – won 3 prestigious marketing awards for European shopping centers. It was all about the Solal Marketing Awards, which were presented at the ICSC* European Retail Innovation Forum in London. Wijnegem was the only (and triple) Belgian winner of an award, together with some 20 other European shopping centers. These trophies are awarded by ICSC for remarkable marketing campaigns that are set up by or in European shopping centers. In total, 164 marketing projects from 22 different European countries competed for these prestigious Solal Marketing Awards, where 5 Gold Awards, 17 Silver Awards, 17 Honouree Certificates and 2 Special Distinctions were presented. Wijnegem won the Golden Solal Award in the category Public Relations with the event “The perfect summer job”. On top of that, this event also received a “Special distinction”-award for an event with a budget below € 10K. Wijnegem also received a Silver Award for “The Hub” in the category Customer Service.
* ICSC (International Council of Shopping Centers) serves the global retail real estate industry and provides the +70,000 members worldwide with resources, connections and industry insights.
© Museum Plantin-Moretus
Momentum for modal shift for retail
‘W
e need to focus fully on logistics real estate at multi-modal transport hubs,’ says Antoon Van Coillie, CEO of Blue Line Logistics, an innovative player in inland navigation. Cross docks on the edge of cities enable goods to be easily transferred from a barge to, for example, cargo bikes or small zero-emission vans.
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CEUSTERS l Industry: logistics
Belgium, with the port of Antwerp as a driving force, is one of the most attractive logistics hubs in Europe. Today lorry drivers are currently spending 44 hours per year sitting in traffic jams. Despite major infrastructure work, no immediate improvement is in sight. According to the Federal Planning Office, the volume of freight traffic will increase by 27 percent over the next twenty years. That means even more gridlock on the roads. So why are we not looking for alternatives? Rail, and our rivers and canals, for example. Belgium has 1076 kilometres of navigable waterways. And across Europe as a whole, there are 25,000 kilometres of navigable waterways connecting the main industrial centres. The major players in the logistics and transport sector are increasingly making the connection that they need to consider complementarity between modes. A sustainable and intelligent mix of transport in which freight is no longer transported solely by road but also by rail or via inland waterways.
Cheap, sustainable and on time Inland navigation is on the rise, Flanders is catching up fast. Never before so much freight has been transported via rivers and canals in Belgium. In the
© Museum Brouwershuis
Gilbert van Schoonbeke international planning prize Antwerp would have been completely different if not for Gilbert van Schoonbeke (1519-1556). In his short life, he started the idea of making streets in straight lines, built homes and public buildings, and expanded the area of the city and the port. His influence on the cityscape can hardly be overestimated. The Stadswaag, the Vrijdagmarkt and the Nieuwstad (Het Eilandje) owe their existence to Antwerp’s ‘first town planner’. The city is celebrating Van Schoonbeke with exhibitions, tours, concerts and a coffee table book. Modern-day real estate professionals too are rallying behind the Van Schoonbeke Year with a planning prize, highlighting ‘the lasting accomplishments that we thank to the “meliorator” from Antwerp, whose fame reached as far as Florence’. The instigators will honour a high-quality inner city project implemented within a radius of 1000 kilometres of Antwerp. Jury members include the city architect Christian Rapp and landscape architect Bas Smet. The award ceremony for the “Gilbert Van Schoonbeke planning prize” will take place in Antwerp, at the end of 2019. The winner will be awarded prize money of EUR 10,000.
Q2/2018 alone, Belgian barges transported over 52 million tonnes of goods on the inland waterways. That is an increase of over 5 percent compared with the same period in the previous year. This success can also be seen in the logistics real estate sector. A market analysis by CEUSTERS shows that more businesses are looking for a warehouse near a waterway. CEUSTERS is encouraging this trend and considers it as a possible solution for the growing traffic jams on our motorways. ‘It is good that Belgian inland navigation is experiencing this advance. Especially since the traffic jams are not getting any shorter, nor is there any decline in home deliveries of parcels. Moreover, inland navigation is cheaper, more energy efficient and more punctual than road transport. Undoubtedly it is one of the solutions to the growing
'Inland and inner-city navigation is cheaper, more energy efficient and more punctual than road transport'
traffic jams,’ says Ingrid Ceusters, CEO of CEUSTERS. The number of warehouses near waterways is growing, say experts. Figures from Flemish Waterways show that there are already 534 industrial sites along or near a waterway in Flanders alone, accounting for a total of 31,830 hectares. The largest site is 5325.28 square metres, the smallest just 900 square metres. More and more businesses - both large multinationals and Belgian companies - are on the look-out for logistics centres near sites by a waterway. ‘Look at the Kluizendok in Ghent, Trilogiport in Liège or Blue Gate in Antwerp. Those are large industrial sites by the water,’ continues Christophe Wuyts, Head of Industrial Agency at CEUSTERS. ‘A good example of a distribution centre that is supplied almost exclusively by water is Nike’s European distribution centre in Laakdal.’ ‘The global player opened a new complex in May 2016 that is used both for e-commerce and for deliveries to the retail sector and wholesalers in 38 countries in Europe and Asia. Almost 99 percent of containers in total arrive by water, which means there are 14,000 fewer lorries on the road each year. A ship with a load capacity of 1200 tonnes can quickly transport as much as fifty lorries can,’ Wuyts clarifies.
Cross docks on the edge of town Antoon Van Coillie disputes that shipping is only of interest to transport containers and bulk freight over long distances. ‘Blue Logistics developed the Zulu to cut costs. This is a flexible, flat-bottomed vessel that we can use to transport both
containers and pallets and bulk freight, that we can also load and unload without a crane. That is a revolution in the world of inland navigation, which is still very traditional. We are moving away from the skipper who travels the waterways with his family. He is becoming just an operator working in shifts.’ If the last mile is to be served by ship, we need to invest in cross docks on the edge of cities. ‘You can transfer goods easily there, to cargo bikes or small zero-emission vans’ says Van Coillie. He is fully focused on innovation. ‘Digitalisation allows you to see exactly where your goods are. And in the near future it will even be possible for vessels to operate without a helmsman. We will be making unmanned passages to the UK in four years.’ ‘In Flanders we owe our centuries of wealth to our waterways. It would be a shame not to use that infrastructure. For real estate developers, there are great opportunities by our rivers and canals. However, we must be careful not to look at it with rose-coloured glasses. Large-scale residential projects are more lucrative in the short term. And there is increasing demand for recreational cycle paths along the water, but that then cripples the opportunity for urban logistics over the water, a mode for which the potential has far from been exhausted. Also in the Netherlands, the potential is increasingly being discovered. In September, entrepreneurs Wim Beelen and Robert van der Wallen announced that they are pumping EUR 160 million into a logistics centre on the North Sea Canal. The Amsterdam Logistic Cityhub will be a 125,000 square metre hall from where they want to organise sustainable delivery by water of parcels, building materials and hotel and restaurant supplies.
The big Ceusters family A family business often bears the name of the family that heads up the business. CEUSTERS is no exception. Of course there are many other staff members with different surnames, and together they form a big family that work hard every day, to make customers happy. Here are testimonials from four of our staff members.
'You have to get on the road. That's where the money is.'
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CEUSTERS l Human resources: a closer look
Frederik and Sofie Mortelmans, commercial manager and retail consultant
F
rederik Mortelmans, a lawyer, already had a career behind him when he joined Shopping Center Management Services, one of the companies in the merger that was the genesis of Ceusters nv, thirteen years ago. ‘I built up a huge amount of experience in retail, especially in the Far East, including for Benninkmeijers, the family behind C&A.’ ‘When I turned fifty, it was time to do something different and I was offered the position of sales manager here. I’m primarily involved in management, and act as an estate agent in a secondary role. I don’t really have any training for that, but my experience in retail stands me in good stead. I know how retailers think, I can put myself in their shoes.’ ‘I have the space to define my own role. If you like, I‘m the oil in the wheels for clients,
colleagues, tenants, etc. I try to bring the right people together, especially when opportunities arise. A family business was a new departure for me. A striking difference from large corporations is the short lines of communication. It’s really easy to talk. The whole company can immediately see when you do something well - and also when you do something wrong. The transition to real estate seems to run in his family. Following five years’ experience as a product manager for a major retailer, his daughter Sofie also made the move to real estate eighteen months ago. ‘I started out in residential property as a sideline, but then my father drew my attention to the vacancy for a retail consultant in the region covering West and East Flanders
and Pajottenland, where I live,’ Sofie says. Her operating base is Ghent, her father’s is Antwerp. ‘We don’t bump into each other very often,’ Sofie laughs. Moreover, my father always taught me that you don’t earn any money sitting behind a desk. You have to get on the road. That’s where the money is.’ ‘We generally chat about work at home, even if we don’t organise any meetings at home,’ the father and daughter laugh. ‘Only e-mails are a bit odd; I never know whether to address them to ‘Dad’ or ‘Frederik’. I’ve never had any preferential treatment as ‘Frederik’s daughter’. I applied for the job just as anyone else would. This is not a company for daddy’s boys. On the contrary: in this company you have to be able to work independently, carry out your plan, find your own way and define your role for yourself.’
Raphaël Veratti, junior property consultant
R
aphaël Veratti has one foot still in education, and the other in the world of work. ‘I‘m due to complete my bachelor ’s degree in January, then I can really get my teeth into the role of property consultant. I came here last year during an internship for my course in real estate management. I’m a bit older than most students. I’ve been living on my own since I started studying and I’m funding my studies myself. I’ve always had a job and that’s why I’ve been a student for a bit longer than usual.’ ‘My experience in the hotel and catering industry and in retail means I can draw on commercial skills and I’m careful to maintain a professional appearance. Maybe that’s why everything just clicked from day one at CEUSTERS. I’m also being given more and more challenging tasks and it’s up to me to deliver the results. I have the feeling that I’m learning something from everyone.’ ‘The atmosphere at CEUSTERS is professional yet sociable. Even when there’s tension in the air, we still manage to have a laugh. You do have to be able to take a few knocks here. The property world is still something of a macho world where you mustn’t take offence too quickly. You have to stay professional.’
‘Always stay professional’ Charlotte Druyts, receptionist
C
harlotte Druyts joined CEUSTERS eight years ago after a divorce and a mass redundancy. ‘I started as an administrative assistant in the management departments, so lots of figures. Four years ago, the management asked me whether I would like to man the reception desk and I jumped at the opportunity. It ’s in my nature to be welcoming to people, I know my languages and I’m outgoing. Ms Ceusters says I’m always in a good mood. I like to have a chat and I don’t care whether it ’s with the dustman or a notary.’ ‘I spend a large part of my time answering phone calls and putting them through to the right person. I think it’s important to help people and I also follow up on it. If someone’s called, I’ll remember. If a colleague doesn’t call back, I talk to them about it. I don’t think that is very business-like either. Every potential client deserves a response within a reasonable time. I hear a lot of things from the widest variety of clients, so I have my finger on the pulse of the company. I have a broad knowledge of what’s going on and I know almost everyone, so many of my colleagues approach me to find out who this or that person is.’
‘It's my nature to be welcoming to people’
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