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CEUSTERS l Editorial
Good relations are the foundation for good business
The power of the family firm, even in the real estate sector
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ntrepreneurs look at business differently: they see another product or service, or another way of going about things. They develop their own vision and believe they can make it happen. And that’s when entrepreneurs “leap”—based on their strong convictions, they quit their job and go into business for themselves. That’s the way things went for Hugo Ceusters when he set up the first independent company focusing on commercial real estate in the 1960s. And that’s also the way Ingrid Ceusters leapt, after her beloved husband passed away, and proved, after her own successful medical career, that she was a good entrepreneur. Its continuation ensured, the company overcame changes in the marketplace by playing the long game, making the right choices, and putting a strong team at the helm. Today, CEUSTERS still proudly bears the name of its founding father. His photograph still adorns the lobby of the offices. It is a metaphor for endurance, even after his passing. He had sown the seeds for an enduring company, in the best possible sense: a company that would look ahead and continue to leap towards opportunities others had not yet spotted. It was the basis for a real family business. A company that dares to look to both the coming generation and the coming trends on the real estate market in our country. Meanwhile, the next generation is on board, and it is learning to reflect, direct, and predict. Estate agency remains important, but that domain has been complemented by property management, investment consultancy, and consultancy on real estate portfolio management. The group has built up a countrywide network and entered into international alliances with value-added companies. In a family-run company, the family naturally considers the wellbeing and welfare of the whole family as well as those of the company. Even if temporary hesitations crop up left and right, they overcome these with vision and courage. Those are the dynamics of a tight-knit family business. And that explains why well-run family firms perform better and are so very important to our economy.
Prof. Dr. Leo Neels
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CEUSTERS l Content
Content 2
Editorial Prof. Dr. Leo Neels: The power of the family firm, even in the real estate sector
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Interview Ingrid Ceusters: ‘This rebranding is a logical step forward in our company’s evolution’
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Facts & Figures CEUSTERS in facts and figures
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Facts & Figures Commercial real estate market Belgium
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Offices Alain Brossé: ‘The future? A fit for purpose mix of traditional and flexible office spaces...’
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Offices Serge Hannecart, Stijn Geeraets & Maarten Van Gool: ‘Companies need flexibility as well as stability’
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Offices Dr. Theo Compernolle: ‘Open-plan offices decrease productivity’
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Offices Ronny Nuten: ‘The office market will increasingly thrive in regional cities’
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Leisure Louis Caroni: ‘Hotels more attractive to real estate developers and investors’
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Property Management Six experts on property management: Sophie Lambrighs, Vincent Schobbens, Stefanie Van den Rul, Jean-Louis Appelmans, Marc Van Horenbeeck, Eric Wauters
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Retail Katrien Geysen and Toon De Meester: ‘We want to offer our customers a total destination experience that goes well beyond traditional shopping’
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Retail Luc Plasman: ‘The real estate world is rapidly changing’
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Facts & Figures Some interesting facts you didn’t know about our extensive shopping center survey
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Retail Axel Ceusters and Rob Wingrave: ‘There’s definitely a future for both online sales and brick-and-mortar shops’
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Property Management Total portfolio property management: 6 projects in the spotlight
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Valuation Hans Wilmots, Vincent Gommers, Erik Van den Broeck: ‘Experts who are familiar with the local situation and stakeholders will remain highly valuable’
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Industry & Logistics Christophe Wuyts, Jo De Wolf: ‘Logistics will become more intelligent. It won’t be cheaper, but It will be better and more sustainable’
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Interview Ingrid Ceusters: ‘Every company has a societal role to play to achieve the SDGs by 2030’
COLOFON Realisation: Bereal - Publisher: CEUSTERS, Uitbreidingstraat 72 bus 2 - 2600 Antwerp
‘This rebranding is a logical step forward in our company’s evolution’
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CEUSTERS l Interview
You’re rebranding. Why is that? It’s a logical step forward in our company’s evolution. When Immobiliën Hugo Ceusters (founded in 1943) and SCMS (founded in 1991) merged in 2013, we opted for a new, compound name to maintain the two companies’ recognisability. But that name is still very complicated. Mid-2017 we acquired another industry peer: Devimo Consult (founded in 1968). Once again that provided a special momentum, a milestone in our company’s history. We are rebranding because we want to focus on simplicity: CEUSTERS (new logo and colours) represents a single company, clarity, and transparency. A new step in our growth and expansion, looking to the future, building on the past. What exactly does the rebranding entail? What we hope to convey to all our stakeholders is that we are simply one brand, one dedicated team of people. This rebranding allows us to develop a real sense of community. We uphold the highest standards of professionalism, ethics and integrity We are the only company in our industry that is both family-run and independent. And we are ambitious. Our role is to be sustainable and excellent in every service we offer. And to achieve that, you have to excel. We acknowledge that our business is based on relationships and that every interaction makes a difference. It is in our DNA to create long term clients for life. How important is the Ceusters name to the company? The family name represents a legacy. We have built up a strong business model based on continuity, proximity and excellent quality. We are known for combining strong commercial success with a commitment to social values.
What are the short- and long-term challenges? In general, all industries are facing disruptive forces. The unique dynamics of real estate make the challenge of disruption particularly steep. The planning, delivery and management of property requires a long-term sustainable vision, which is often difficult to establish in a rapidly changing world.
It is all about trust and partnerships. We have been in the market for decades and our reputation has international recognition. We were one of the pioneers that attracted large international funds to Belgium. We need to continue to protect and promote the core values of the founding father. How important is that family aspect? Extremely important. Rebranding the heritage has of course a special meaning for me. My goal is to create the right culture and environment for the next generations to come in, confident they have the right experience and can add value. We want to create an environment where the top-quality professionals see working in a family business like ours as a great place to be because of easy access to the shareholders and access to the influences that you might not have in a more hierarchical public company. If we want to continue to attract and develop the best-quality management who are non-family, they have to trust that they can have a great career path at CEUSTERS.
We are riding the wave of globalisation even more. There are many foreign funds investing in Belgium that look for partnerships with us, because CEUSTERS boasts a lot of local know-how and expertise. Thanks to globalisation, we’re known across borders. On the international stage we advise our Belgian customers by way of alliances or within our own local network. Technology continues to have a tremendous impact on real estate. Digitisation has been a strategic priority for CEUSTERS. We are proud to say that CEUSTERS is blazing trails in this regard. We have developed our own property management program tailored to the needs of our customers. This allows us to be more innovative and flexible than other parties in our industry. Does this rebranding also mean you’re heading in a new direction in terms of strategy and vision? As the world continues to evolve — driven by the waves and intersections of technology, demographics and globalization — business as usual is not an option. It’s a logical step forward in the future proof strategy of expansion, growth, and progression. A simple, recognisable brand: CEUSTERS, with a clear link to all our departments, ready for international expansion. The rebranding will cover all of that.
The importance of a strong brand Group Hugo Ceusters-SCMS is becoming CEUSTERS. A new brand that ties in perfectly with our strategy as a leading real estate expert to provide customers with real added value in terms of real estate consultancy and property management. We called on The Oval Office for the rebranding. “A brand is an important asset for a company. It’s a simple translation of the promise you make to customers and employees. A clear brand helps them to understand what your company represents and how you differentiate yourself from other market players,” says Olivier Trop, managing partner of The Oval Office. “These past several years however, Group Hugo Ceusters-SCMS was often confronted with customers who no longer understood what services the company was offering. At that point, a company needs to ask itself, “Does our brand name still reflect everything we stand for?” The decision to integrate Devimo Consult’s activities, along with the strong ambition to internationalise the business, gave us everything we needed to rebrand the company.”
Rebranding the heritage has of course a special meaning for me.
“To maintain top-of-mind awareness in 2019, companies have to keep reinventing themselves in a world that’s changing quickly. It requires guts, but you can see the results instantly,” Olivier Trop emphasises. “By opting for the brand name CEUSTERS, we’re highlighting the company’s strengths, such as entrepreneurship, expertise, and partnership, values shared by our family shareholders, management, and all our employees. For the logo, we opted for the fresher, more recognisable yellow and got rid of the black. The new blue adds a lot of cachet and gives it a profession-al appearance. The right angles and the underlined C underscore expertise and create a personal quality label.”
CEUSTERS in facts and figures Key Figures
Agency: results Take-Up 2018 (Belgium)
100+ staff members 18+ million EUR gross turnover 5 offices 6 additional branches
business unit total transactions Offices 89 Semi-industrial and logistics 89 Retail 87 Valuation & Advisory Âą 180 dossiers
ranking no. 4 no. 3 no. 3
total sqm 47,107 sqm 121,668 sqm 19,371 sqm
Source: Expertise News ed.569, 17.01.2019 & Retailfocus ed.317, 17.01.2019
Property Management: Results 2018 (Belgium) Retail Industry Offices Overall
market share : 41.5 % market share : 20.7 % market share : 8.1 % market share : 18.6 %
928,500 sqm 497,500 sqm 445,500 sqm 1,870,500 sqm
no. 1 no. 2 no. 7 no. 1 Source: Expertise News ed.566, 16.11.2018
Top 10 Retail Projects Wijnegem Shop Eat Enjoy / Antwerp Waasland Shopping Center / Sint-Niklaas Grands PrĂŠs / Mons B-Park / Brugge K in Kortrijk / Kortrijk The Leaf / Ternat Shopping Cascade / Drogenbos Shopping Pajot / Sint-Pieters-Leeuw Les Daupins / Mouscron Bierges Retail Park / Wavre
59,648 53,970 44,453 42,000 34,500 29,611 28,926 27,675 22,930 21,262
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CEUSTERS l Facts & Figures
Property management: Key Figures
Awards 2018 ICSC Solal Gold Marketing Award for Wijnegem (event Candy Fashion)
148 projects under management 2.0+ million sqm under management (2.5+ million sqm incl. parking) 2,500+ tenants 95+ clients 288+ million EUR total rent roll
Property management: Portfolio 38.3 % retail 20.8 % warehouses 18.5 % offices 22.4 % other (residential, hotel, parking)
ICSC Solal Silver Marketing Award for Waasland Shopping Center (event W.Smile) BLSC/RFB Excellence Award Best Marketing Action for Wijnegem (Best summer job)
PRIME RENTS & YIELDS Offices
Industry
Rent: Brussels: 310 €/sqm/year / Antwerp 155 €/sqm/year Yield: Brussels: 4.5% / Antwerp: 6.0%
Rent: 55€ (SME-units: 65€/sqm/year) Yield: 5.2%
Retail Rent: Brussels: 1,800€/sqm/year / Antwerp: 2,000€/sqm/year Yield: 3.25%
Commercial Real estate market Belgium
Office take-up 2018 National: 762,793 sqm (- 3 %) Brussels: + 3 % Antwerp: - 24 %
Source: Expertise News 569 (17/1/2019)
Capital Markets
Investment volume : 5.2 Billion Euro 44 % offices 37 % retail 8 % industrial 8 % residential 3 % other Source: Expertise News 570 (31/1/2019)
‘The future? A fit for purpose mix of traditional and flexible office spaces...’ Alain Brossé began his career at Regus and Tribes. In January 2018, he founded Welkin & Meraki, and expanded rapidly, opening 5 branches in 5 countries. Alain specialises in flexible office space and is aiming to grow to 25 branches in 10 countries by 2020. Where does coworking come from? “Coworking is the new path of melding life and work in a sustainable way. It is the intersection of real estate, technology and community, which will shape the way we work in the future. Leaders such as Wework do 10% of coworking. All the rest is “serviced offices”. Mark Dixon, the founder of Regus, is the man who created the niche of “flexible offices”. He had the brilliant idea of enabling companies to rent office space for short periods of time. And because the cycles of economic down- and upturns are
succeeding each other faster and faster, demand has skyrocketed over the past 10 years. Especially in cities like Paris, New York, and London.” How do you explain the great success? “One of the most important catalysts for the growth of coworking spaces and serviced offices is the demand for flexibility. Today, over 30% of the total take-up in London is coworking spaces and serviced offices. In New York it’s 16%. Today, a company like Wework is the largest tenant in New York and London. Whereas 10 years ago, they didn’t even exist. All analysts agree: this is more than just a passing trend—it’s here to stay.” How do you think this market will evolve? “I would go so far as to say that the demand we have in today’s booming economy will only increase when we’re in a slump. Companies will then be even less inclined to sign a long-term lease. Coworking’s
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Offices
“Companies need flexibility as well as stability” Fosbury & Sons was founded in 2016 by Serge Hannecart, Maarten Van Gool, and Stijn Geeraers. Meanwhile, they have branches in Brussels and Antwerp. They’re planning to open fourteen new offices, including in the Netherlands and in Spain, because the three partners, with their innovative views on working, are looking to cross borders. “Real ‘coworking spaces’, where people work together in an open space, constitute only 10% of the floor area at our locations. That’s because open spaces as workplaces don’t
suffice. Especially when focus is key. That’s why at our locations we distinguish between 4 activities: cooperation, individual work, concentrated work, and recharging. We speak of hybrid workplaces, which provide room for all different ways of working. In addition to open working spaces, we also have quiet spaces or so-called focus booths people can head to if they need to concentrate. And because our brains can’t be active for 8 to 10 hours a day, we also need space to recharge our batteries. That’s why we always seek out locations near a forest, park, or near the water,
so there’s room for relaxation. We even have a powernap area,” say Serge Hannecart and Maarten Van Gool. “Our concept is perfectly geared to today’s society, in which companies need flexibility as well as stability. These hybrid workplaces enable employers to meet the specific needs of every employee. Companies are increasingly becoming aware that they should stick to what they’re good at, and leave the interior design of offices to the experts. That’s why we’re seeing more and more outsourcing with regard to office space.”
Serge Hannecart, Stijn Geeraets & Maarten Van Gool, Fosburry & Sons
Dr. Theo Compernolle
By 2030, 75% of active workers in the world will belong to the Millennial generation
“Open-plan offices decrease productivity”
Alain Brossé, Welkin & Meraki
What does coworking/conventional balance look like right now? “30 years ago, conventional leases made up 100% of the market. Today, in many markets we’re seeing around 80% conventional and 20% flexible. This is not the case for Brussels, for many reasons. However, even here, there is an increasing demand from companies for more flexibility, which translates into an increased rental of coworking space. Wework, for example, has announced it is looking to occupy 100,000m2 in Brussels during the next two years. The balance will tilt increasingly towards coworking and serviced offices.” New generation? War for talent? Do they play a part in this evolution? “Yes, absolutely. By 2030, 75% of active workers in the world will belong to the Millennial generation. Millennials have different demands and are especially engaged with the “shared economy”. Research indicates that the flexible workspace is not just a passing trend; it is part of the very fabric of the future of work. Millennials are looking for something more than functionality, and they’re not skimping on it either. By understanding and building a workplace product designed for millennials, coworking owners can attract and retain millennial talent at their shared workspace. Which can have beneficial network effects attracting more like-minded millennial start-ups workers. Thus, a long-term growth cycle begins.” Is this a threat to the conventional office market? “I believe the future for building owners lies in the mix they create between the long term and the short term. There’ll always be volume in traditional leases for big corporations, but I think they are also going to increasingly build a flexible layer into their facilities strategy. That’s why today, in several markets, we’re seeing that building proprietors are starting to collaborate with coworking or serviced office providers to offer these types of services. So there’s certainly no need to think of it as a threat. The amalgam of the two sectors is exactly what will determine the success of both parties in the future.”
Even though open-plan offices provide flexibility, neuropsychiatrist Theo Compernolle mostly points to their disadvantages. “A great deal of research has unequivocally shown that office landscapes decrease intellectual productivity, creativity, and even the quality of communication, and exacerbate stress. Working in an open-plan office where people are disturbed on average every two minutes is a genuine catastrophe for brainwork that requires attention and concentration. Because our thinking brain can only pay attention to a single thing at the same time,” says Dr Compernolle. “In an open-plan office, we’re more easily distracted, causing us to juggle information, lose time, and that saps our energy. So not only do people go home in the evening showing more signs of exhaustion, but they also make worse creative and ethical decisions during the last hours of the working day.” “The tasks we carry out in an office can be classified into four categories: concentrating, communicating, collaborating, and recuperating. Companies regularly make the capital mistake of letting all these things happen in one and the same room. Communication in particular, in a room where others have to be able to concentrate, is ruinous for intellectual productivity and creativity. An office landscape is often presented as a stimulus for better communication and more cooperation. But that’s a misunderstanding. The lack of privacy makes for more small-talk and fewer real conversations, more distraction and more irritation. It’s important to gear an office to people’s needs.” Dr Theo Compernolle has authored several bestsellers, including “How to unchain your brain, “Stress: Friend and Foe”, “BrainChains” and “How to Design Brain-Friendly Flexible Offices”.
‘The office market will increasingly thrive in regional cities’
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CEUSTERS l Offices
he office market in Flanders is the most important in Belgium right now, compared to Brussels and Wallonia. ‘Proven by the take-up and the number of transactions last year. But the office market is a momentum-driven one. In 2017 and 2018 Antwerp took the lead primarily thanks to two large-scale projects, The Link and PostX. In the coming years, the focus will still be Flanders, especially in regional cities and in locations which still boast a lot of space and good motorway access. A good example is Waregem, where 30,000 m² were taken up last year. Two years ago, no one was even talking about it. Roeselare, Kortrijk, Leuven, and also Hasselt will be playing a critical role on the office market in the future. Take-up has increased five-fold there over the past few years, especially thanks to the strong growth of start-ups and the success of projects such as Corda Campus. In general, the Brussels market is in decline, which is chiefly due to poor mobility and the negative perception of Brussels. But take-up is likely to rise again this year when the new government takes office. The growth we see in Brussels is private-sector-driven by the coworking initiatives of companies like Regus and Wework, who have taken up a lot of office space. Wallonia has also seen a dip, except for Liège,
where we’re seeing new projects near the station. In their choice of offices, companies are increasingly obliged to look at public transport, which often leads them to station districts. This evolution is positive for all parties concerned: companies lose less time thanks to their strategic location, employees don’t have to suffer as much gridlock, and the station districts themselves begin to flourish again. Nowadays mobility is more and more important for the office market. The time when companies could ask for one parking space per employee is far behind us.
Kievitplein Antwerp Building C-D-E-F
Ronny Nuten Ceusters
Nowadays mobility is more and more important for the office market.
Hotels more attractive to real estate developers and investors
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CEUSTERS l Leisure
ouis Caroni is the Benelux manager of B&B Hotels, which opened its first branch in Belgium in September 2018. This Antwerp hotel is the 450th of the French group, whose skyrocketing growth—50 new hotels a year, 5 new markets developed over the last 6 months—is showing no signs of stopping In Belgium. The chain is planning to open 15 hotels in the short term, and it has its sights set on the Netherlands. An interview. B&B Hotels is breaking into the Belgian market with a bang, its aim being to open 15 hotels within 5 years. How do you explain this ambition? Is the market particularly favourable right now? Several elements come into play. There are an increasing number of investors with a lot of liquidity in the market, because the cost of money to finance a real estate development is not a boundary. The profile of the hotel market has also changed: in the past there were plenty of developments, chiefly of high-end and top-tier hotels. The past few years, however, a range of new hotel operators have come into the European market with different offerings and concepts, most
of which are mid-range, aimed at a wider audience and located in more urban environments. So there are more hotel industry players and there’s more available money—real estate developers have caught on and are taking this opportunity. One of the most far-reaching trends in the real estate industry is the success of mixed-use projects. Are they suitable for the hotel segment? Absolutely. It’s a significant trend. Developers are launching projects that combine housing, retail, and offices, as well as hotel accommodation. In the past, you had many developers who were only specialized in one segment (offices, housing, and so on) but today developers really want to offer mixed-use projects. This trend also gets political support:
public authorities no longer want dormitory towns or office districts which are busy during the day and completely deserted at night. Is that specific to Belgium? No, it’s a trend we’re seeing very clearly just about everywhere in Europe. Does this trend create opportunities in Belgium? For sure. In Brussels in particular, there are plenty of older office buildings which no longer meet the demands of the market and many of which are vacant, providing us opportunities for redevelopment. Typically, they’re converted into housing, so potentially they could also be turned into hotels. Is converting office space into hotels easy? It’s a bit more complicated for the
LOUIS CARONI Benelux B&B Hotels
'I don't think I've already had the pleasure of working with such efficient brokers'
hotel industry, because there’s a huge need to rationalize the available space. In B&B’s case for example, a 14-meter wide building can be converted into a hotel, but if it’s wider, things get more challenging. That’s because a hotel needs a central hallway from which you can access the rooms. In light of the demographic issues in urban areas, do public authorities look favourably on hotel projects? Mostly they do, yes. They often express genuine interest. Hotels are an important service, because they offer accommodation solutions not just to tourists, but also to business travellers. It’s an important element for city marketing and thus economic urban development. What we sometimes see is that elected officials are looking to welcome only top-tier hotels, which isn’t necessarily what markets need. Overall, however, this is not an issue in Belgium. On the contrary, I find collaboration between the private and public sectors quite efficient and positive as long as you’re developing a quality project. Furthermore, we don’t have the same impact that Airbnb has, for example, because that artificially drives up real estate prices. What criteria are essential for a good B&B project? Location, of course, is crucial in our marketplace. Then I would say the quality of the partners involved, the long-term relationship of trust you build with developers and investors. That’s what happened with CEUSTERS: when we took an interest in the Belgian market, we had
thing that comes to mind. That’s because, until recently, hotels weren’t really thought of as an asset class like offices or retail spaces and the developers and investors didn’t have experience. But, in part thanks to the political goodwill and growing traveller numbers, there’s increasing interest. All the more so because for developers, it’s a good way of limiting their risk.
no agent and limited insight into the opportunities and market players. We were able to leverage their network, their knowledge of the market, etc. Two years later, we’ve got four hotel projects underway, one of which is already built and open, in Antwerp. Of those four projects, three are directly connected to CEUSTERS’’s scouting work. Their propositions are always relevant and meet our search criteria. That makes our work more simple. I don’t think I’ve already had the pleasure of working with such efficient brokers. Some brokers would rather send a massive number of prospects than filter them for quality. Do developers and investors sufficiently consider hotel development? For many of them, it’s not the first
How do you “motivate” and appeal to investors/developers? We do our utmost to make the project as interesting and reassuring as possible for investors. We offer a 15-year fixed-term lease of the “triple net” type. That means we pay for all charges and expenses (work, maintenance) to ensure the buildings run efficiently. The fees and rents are guaranteed and not linked to the hotel’s performance, which is facilitated, among other things, by the fact that we own our hotels, and don’t franchise them out, and because we can bank on the robust base of our parent company. We have very clear ambitions: on average, we open 50 hotels per year all over the world. These are either new builds, or existing hotels or buildings in need of renovation, which we buy and then do sale-and-leaseback transactions on. In particular, we’re looking for partners—developers or investors—for long-term collaboration.
Six experts on property management
Sophie Lambrighs is COO of Eaglestone and has over 20 years’ experience in real estate, including at Axa Reim, Immobel and Home Invest Belgium.
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he property management of offices has always received too little attention. Nevertheless, it is an essential link in the optimum valuation of a building. We are now seeing that this trend is changing, not least because of the advent of new (shared) spaces and services in buildings. Tenants are no longer happy with just an office suite but want a building where you feel a dynamic atmosphere as soon as you walk into the foyer. The image of a company depends, at least partly, on the image of the building housing its offices.
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CEUSTERS l Property Management
'Property management is finally getting the attention it deserves' This is where I see many opportunities for a property manager. In addition to their ordinary duties, they can become a true “facilitator for the building” and hence connect the various tenants with one another. Over the longer term, this can create greater loyalty. Services and flexibility are therefore gradually becoming more important than the technical aspects. There is certainly a challenge at human level. After all, it is not easy to combine the technical and financial rules, on the one hand, with the skills of a facilitator, on the other hand.”
Vincent Schobbens is CEO of Growners, an estate agent specialising in commercial property for SMEs.
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he commercial real estate market in general, and the market for offices in particular, is currently undergoing a fundamental transformation which is probably still in its early stages. In the past, the market mainly involved providing space based on medium to long-term leases. The owner might contribute financially to the fitting out carried out by the future tenants themselves. We are now seeing that the market is increasingly geared to a service-focused approach to meet the tenants’ needs and that the requirements for tenants are becoming increasingly flexible. The job of the property manager will therefore also increasingly revolve around the tenants and become increasingly flexible towards the owners.
'The demands from the industry will only increase' The demands from the industry will only increase. That means that only property managers that are able to adapt to this two-pronged trend and offer high-quality services will survive. Those that cannot adapt will no longer be able to switch from one customer to another. Since contracts are becoming shorter and shorter in duration and are not automatically renewed, their profitability will also be in jeopardy.”
Stefanie Van den Rul is ‘Head of Property Management’ at CEUSTERS
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he increasing demands of property owners and tenants, on the one hand, and the advent of proptech and smart/big data, on the other, will have a major impact on the concept of property management and its interpretation in the coming years. Although over recent decades a competitive advantage has mainly been created by means of comprehensive automation and efficiency among property managers, in future, this service will evolve even more towards tailor-made solutions, flexibility and a pro-active approach.
'The interpretation of property management will change massively in the coming years' Investors increasingly expect the property manager to become a long-term all-round partner who not only undertakes the financial and administrative duties but also takes on an advisory role in terms of strategy. The advent of new proptech also offers opportunities for the property manager to improve the tenant’s experience, whilst at the same time optimising the owner’s returns. Consider, for example, the options for calibrating heating and lighting to the effective use of a building and optimising the tenant’s user experience. Property managers who can approach owners with all the future tools in a flexible and tailored package will be the winners in this competitive market. The ability to offer strategic advice on asset and investment management will therefore be an additional selling point enabling owners and users/tenants to work with the property manager to optimise their real estate (portfolio).”
Jean-Louis Appelmans was CEO of Leasinvest Real Estate for 19 years before handing over the reins last year. He is still a member of the Board of Directors.
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uilding up a property portfolio is probably the most enjoyable part of asset management in a public real estate company. The least enjoyable is the less sexy property management because it is predominantly driven by operational needs. It requires high-performance management systems and skilled staff to strive for a single important goal: ‘keep the customers satisfied’.
'Property management is and will remain a people business' Of course there are benefits to the investor putting together its own property management team, such as the ability to react quickly to the tenants’ needs. On the other hand, there are also drawbacks such as building up social liabilities, searching for the right team members and a reduction in flexibility if the portfolio shrinks. Working with an external professional property manager is therefore often a very good solution because it removes many of the drawbacks whilst largely keeping the benefits. As with any decision, the pros and cons need to be weighed up in order to choose the right solution. However, the main challenge - whether internal or outsourced - is finding the right people. After all, it remains a people business in which contact and dealing with people properly are key.”
Marc Van Horenbeeck is project manager Facility & Renovation at Brussels Airport Company.
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usinesses must keep adapting to new market needs such as the growth in e-commerce. Many businesses use that transformation as a springboard to move to a new office. A property manager has an important advisory role here, especially with his or her knowledge of the market. A major trend we are seeing, for example, is that when companies are choosing a new office, they are no longer just looking at the number of square metres they need per employee but more at the overall experience and the needs of their staff. In the past, many companies wanted to be close to or in Brussels, but now they are taking greater account of mobility and their employees’ needs in that area. The new way of working is also playing a major part in this. Employees no longer need
'Property managers play an important advisory role' a permanent place of work, but they do need the right technologies, such as IoT solutions, in order to be able to work from other locations. This enables companies to save on the number of square metres they need in their office building. Moreover, the way the suites are fitted out is also changing to reflect this new way of working, with a combination of open-plan offices, formal and informal meeting rooms and areas where you can work without being disturbed. When choosing an office, companies are no longer looking at the costs only, but certainly also at the profitability of the employees and their needs.”
Eric Wauters is ‘Head Department Co-Ownership’ at CEUSTERS.
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ore office buildings and SME parks are falling under the law on co-ownership. There are 2 main reasons for this trend. Older office buildings are being bought by project developers who renovate them and split them into separate lots. This means that single buildings are increasingly owned by several owners. As soon as that happens, the law on co-ownership covers it and there is a statutory obligation to appoint a property management agency. In addition, we are seeing that more small and medium-sized enterprises are choosing to buy an SME unit instead of renting it because of the low interest environment. As a result, there is a huge increase in supply and demand for SME units in Belgium. The management of co-owned properties requires a very different approach to management for a single owner and its tenants. (stewardship)
'More and more office buildings and SME parks need a professional property management agency' In all these cases, it is essential to work with a property management agency witch has the right knowledge of commercial property. A wide range of services with thorough technical and legal knowledge is critical for long-term management of a property in co-ownership. After all, for the co-owners it is extremely important for their investment to be protected through proper maintenance. We have seen the demand for management agencies for commercial property sharply increase in recent years. This is because our services go beyond those of a traditional property management agency and we offer the same high-quality service throughout Belgium via our branch network. The CEUSTERS ‘co-ownership’ business unit currently manages some sixty projects, representing 458,928m2 for 1,086 co-owners. That is a sharp increase compared to 2015 when we managed 23 projects, representing 163,796m2 for 375 co-owners.”
“We want to offer our customers a total destination experience that goes well beyond traditional shopping”
I
18
CEUSTERS l Retail
n 2007 Katrien Geysen started working for Ceusters. In August 2018 she was appointed as the shopping centre manager of Wijnegem Shopping, the largest shopping mall in the Benelux with 59,690 m² of floor capacity. Toon De Meester has been the shopping centre manager of Waasland Shopping Center since 2015. It is the eighth largest shopping mall in Belgium and the number 2 in Flanders. Why has the “experience” become so important in retail? KG: “Competition in the retail industry is fiercer than ever. Consumers have plenty of choices when it comes to where they spend their time and money. While retail is still in the middle of debunking the shopping habits of millennials, members of Generation Z have been rising steadily. This constant change in consumer behavior has forced the retail industry to test and innovate different ways to engage with consumers. Today it is all about retailtainment, winning your consumers by understanding their emotions. You need to provide customers with fun, unique experiences that elevate shopping above any traditional shopping. That’s why we want to offer a total destination experience beyond the range of 250 shops. Innovative malls like Wijnegem are incorporating value-added
elements including personals shoppers, events, entertainment, trendy places to meet up with friends and family, smartphone chargers, kids & baby corners.... These services provide a level of leisure and entertainment that can never be satisfied online. Ultimately, the true testament of effective retailtainment is whether it can lead the way in pulling consumers away from online shopping and back into the physical stores. “ TDM: “Forbes recently reported that 72% of the younger generation chooses experiences over materialistic items as the happiness driver, and 69% believe that attending live experiences helps them connect better with their friends and their community. Shopping centres are the hub of the local community – a place to share quality time with friends and family, not just to shop. On top of that many people are looking for a special experience they can share with their family and friends on social media. Shopping Centres need to take the social experience to the next level. It is all about infusing traditional retail with experience-driven offerings like restaurants, activities, and services that can’t be replicated online. We believe it is critical to take a more active role in shaping this total destination experience.” How do you capitalize on that? TDM: “Shopping Centres need to create an entire experience where consumers can go every day, not just for major shopping trips. The goal is to create a so-called third place – somewhere people can go that’s not work and not home. It is all about defining the optimum shopping centre experience. And that experience starts in the parking lot. It’s free of charge and easy to access. Our shopping centre is located in a nice, safe, clean environment with special entertainment for children. We organise interesting happenings
such as pop-up shops and giveaways. We have many different facilities such as free Wi-Fi, a baby corner, charging stations for electric cars and bikes, etc. And of course, a wide range of food and beverage options. It is all these components together that add an “extra-perience” layer for shoppers.” KG: “I fully agree with Toon. So, yes, by adding services and creating experiences that cannot be mimicked online, shopping centers can ultimately be turned into destinations that provide customers with things that they can’t get online – factors that will draw people in. We prioritise the customer. We continuously strategically evaluate and rethink the type of shopping experiences that consumers will respond to. We do surveys and analyse every aspect of the total shopping experience. We believe in a holistic approach. After all, online and offline work together, and your customers interact with you in different ways at different stages of the buyer journey. At Wijnegem our customers are our brand ambassadors. Segmented communication
Katrien Geysen, Wijnegem Shopping Toon De Meester, Waasland Shopping Center
Luc Plasman The real estate world is rapidly changing and we must do so too. One of the biggest challenges the retail sector faces today is “The New Consumer”. What do consumers today desire and expect? How can the real estate industry elevate their capability in servicing their expectations? “Our answer to that question is exceptional service and authenticity,” says Luc Plasman
'This constant change in consumer behavior has forced the retail industry to test and innovate different ways to engage with consumers.'
through popular social media such as Facebook, Instagram and TikTok guarantees us a top-of-mind leadership position. We successfully host social media events at different occasions. Consumer behavior is constantly changing, and we need to keep up, transforming customer experiences as quickly as customer preferences change.” Is that an efficient way of distinguishing yourself from online shopping? TDM: “Yes, we need to move in a different direction, away from traditional shopping experiences and towards a broadened total destination experience for consumers. I believe with innovation and
Luc Plasman is General Manager of BLSC, the Belgian Luxembourg Council of Retail and Shopping Centers. BLSC promotes the common interests of its members for the development, promotion, financing, operation, and preservation of shopping centres in the Belgian and Luxembourg markets. “Consumers are still longing for authenticity and a pleasant shopping experience. Personal service and good shop accessibility are key to that. Shopping should become an “experience” again. That’s why active management and marketing is so important for shopping centres, retail parks, and high streets,” Plasman asserts. “Another challenge is e-commerce, a trend we simply cannot ignore. The retail sector must absolutely embrace it in order to comply with customers’ and society’s needs.” “Finally, flexibility is also an increasingly important factor in customers’ expectations. To be able to anticipate on that, we’re advocating, among other things, flexible regulations on shop opening hours and a simple permit procedure for product assortment changes.”
they received candy and a ticket with a gift or reduction in one of our stores. This campaign generated extra traffic to the stores and boosted our sales, but most of all, our customers loved it! This sales activation was a great success and has won both a national BLSC and an international ICSC marketing award.
a clear customer focus, shopping centres can transform into “consumer engagement spaces”. It is our role to rethink the value proposition in partnership with the retailers to make sure people find what they are looking for. To succeed in the future, we need to continue to be innovative.
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CEUSTERS l Retail
Could you provide an example of “retailtainment”? KG: “Retailers know that most woman like to shop for a longer period then their spouses, resulting in men idling around in shops or sitting outside on benches for a long time. Not so in Wijnegem! In order to optimize the shopping experience of these men, we’ve opened “The Hub”. This is a smart spacious recreation room of 240 m². It has billiards and football tables, gaming consoles, giant TV screens, beer and a cocktail bar. You can sit back and read the newspaper, charge your smartphone, or just relax in a comfortable couch. The interior is very masculine—like a man cave—and well appreciated! “The Hub” is truly innovative! We provided product placement opportunities to leading brands such as Coca Cola, Philips, De Persgroep, Thissen, Proximus, Duvel, Game Mania, etc. By combining their marketing budgets, we were able to successfully launch this impactful project. We have received international press coverage and very positive feedback from our customers.” Do you have more examples of success stories? KG: “Each year in September, we launch the new fashion collections of our stores in a creative way. Last year our theme was “Candy”. The clothes were presented on colourful candy-themed platforms and in our central court we’ve built an 8-meter-high candy machine, filled with candy and discounts/ gifts from our shops. Customers who showed a purchase ticket from one of our shops, could spin the machine for free:
E-commerce is a challenge, a trend we simply cannot ignore
TDM: “Our ‘W.Smile’ campaign, which is all about a warm welcome and the customer’s smile. What started with an awareness campaign towards the tenants, has evolved into an integrated customer excellence strategy. From funny actors walking around in the mall and making people smile or sharing flowers on International Flower Day, every event, communication and decoration has W.Smile elements. When we saw how strongly our tenants supported this project, we also developed the W.Smile Games, a unique competition between all the tenants. This partnership clearly works. We’ve seen our customer satisfaction scores rise steadily.” KG:” A few years ago, Wijnegem was under “remodelling”. Surveys anticipated a decrease in numbers of visitors – especially families with young children. We created a construction yard for kids in which they could “be innovative and creative” with the remodelling. Kids (but also their parents!) loved it so much that we saw an increase (!) in visitor numbers during this remodelling phase! This fun experience was the talk of the town. We’ve also recently changed our baseline into Shop Eat Enjoy. Wijnegem gives people so much more reasons than just retail to pay a visit.”
Some interesting facts you didn’t know about our extensive shopping center survey Survey conducted among visitors of 7 shopping centers in Belgium in 2018 (geographically spread / inner city and out of town projects / 2,110 respondents)
Has/collects loyalty cards on smartphone
Number of shops visited 0 to 3 shops 4 to 6 shops ≼ 7 shops
28.2 %
Payment method
49.8% 30.2% 20%
average number 5 shops Out of town projects 6 shops Inner city projects 4 shops
Average age visitor
0.2% Smartphone
45 years 23.7% Cash
35 years
76.1%
Debit/Credit card
17.6%
sets a budget in advance
Budget exceeded? Yes 25.7% No, spent it exactly 50.8% No, spent less 23.5%
Axel Ceusters, Ceusters
For renovations or new developments, we aim for 15% F&B. I can’t see 25% happening in Belgium any day soon.
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CEUSTERS l Retail
'There’s definitely a future for both online sales and brick-andmortar shops'
W
hat are the important retail trends and to what extent are they already present in Belgium? Will we still shop offline in the future? And what can we expect will happen to rent prices? We talk to Rob Wingrave, Managing Director of Time Retail Partners, a renowned London retail consultancy agency, and Axel Ceusters, COO of CEUSTERS since 2018. What are the current trends in shopping centres? RW: “One of the most important trends is “placemaking”.
About 10 to 15 years ago, shopping centres’ interiors were mostly sterile and white. Now, however, we’re calling in architects to make them more interesting and attractive. Because people are looking for something different and a nice environment. I believe art will have a big role to play here. In addition, we must take into account differing tastes and a variegated target audience. Because it’s no longer just women who like to come to shopping centres. And shopping centre customers don’t just want to shop, they want to find everything under the same roof: shops, F&B, and entertainment. Many of the trends we see here come from the United States. In the US, malls are being converted into full-fledged resorts, with hotels, apartments, and different forms of entertainment, going far beyond just cinemas. Ten years ago, on average 2% of a shopping centre’s floor area was F&B. Here in the UK, we’re now aiming for 20% F&B and 10% leisure. And I think this trend will
persist and we’ll end up with a ratio of 50% retail, 25% F&B, and 25% leisure. AC: “With shopping centres, we are indeed evolving to places where all aspects of life converge: shopping, living, working, and so on. But 25% F&B is already taking it very far. We don’t have those types of far-reaching projects yet in Belgium. Here, in existing projects we see between 7 and 10% F&B. For renovations or new developments, we aim for 15%. I can’t see 25% happening in Belgium any day soon. For an F&B concept, location is also primordial. Can they remain open in the evening, for example? Is it a concept with possible morning shifts? Those are all aspects that determine the project’s financial feasibility. In the leisure domain, there are very few quality examples to be found in Belgium, mostly for lack of new projects. You can’t just pop concepts like a cinema or a trampoline or skate park into a vacant retail space. For those,
AC: “Yes, I agree wholeheartedly. The burdens that come with e-commerce are so enormous that it’s become impossible to justify today. Ecologically, it’s not just the plastic packaging that’s increasing companies’ footprints. Online sales also heavily impact traffic and further exacerbate congestion on our roads. The fact that you can have a 40-cent lighter delivered for free and that you can even return it if you don’t like the colour is downright disgraceful. More and more often brickand-mortar shops are used as platforms for online sales, where orders can be picked up and returned. That’s where I see a bright future in store for shopping centres, thanks to
Rob Wingrave, Managing Director of Time Retail Partners
think we’ll be seeing the same thing happen in European cities. Because retailers are under high pressure due to decreasing margins. You also see that turnover leases are becoming ever more of a challenge. Because retailers try to keep their online sales out of these and not ascribe them to a brick-and-mortar store.” AC: “Over the past years, we’ve gone from a lessors’ market to a tenants’ market. Right now, tenants have more control than owners. In addition, very few new retailers are breaking into the market, and if they do, they are opting for cheaper locations or pop-ups. That makes things much more uncertain for owners. These past several years, we’ve
'Online sales heavily impact traffic and further exacerbate congestion on our roads'
you need a space that’s built to suit. And for the last 5 to 10 years, the volume of new developments in Belgium has been very low. That’s why today we have few clear examples of projects that do contain that leisure aspect. In new developments, it’s definitely a consideration. Because leisure is an ideal underpinning for both F&B and conventional brick-andmortar shops. With that, you can draw in people from further away and keep them on the premises for longer.” How do you see the future of online and offline shopping? RW: “Online sales have exploded because of smartphones, especially in the UK. We’re one of the pioneering countries in this regard. But I don’t hold with the prediction that we’ll be buying everything online in the future. That’s because online sales have quite a few disadvantages. Fashion retailers in particular have seen their margins plummet due to the return policy. Retailers are really going to have to reconsider this policy. Moreover, costs for website maintenance keep rising. The tonnes of plastic packaging used are another source of concern. From an ecological perspective, there’s a very great deal of criticism. I believe there’s a chance the government will decide to levy additional taxes on this, especially because it’s hard to collect tax revenue from online sales.”
their accessibility. Those types of service points already exist today. On the one hand, you’re meeting your customers’ needs, and on the other, you can lessen the harmful consequences of e-commerce. In addition, you’re drawing online shoppers to your shopping centre. In a later stage, you could also use the entire mall as a logistics hub. If, in your capacity as owner or manager, you were to obtain access to the shops’ inventories, you could set up a centralised sales platform, which would make optimum use of the customer’s physical proximity and the retail mix available. On top of that, it would also bolster the shopping centre’s brand name. Moreover, you’d be reducing the overhead costs that shops incur due to their e-commerce business.” What are the expectations with regard to rent prices? RW: “You can see that owners are quite apprehensive in that regard. In New York, there’s a decrease of about 30 to 40%. I
evolved to a model in which rents are determined in large part by the turnover that shops achieve. But maybe we need to start thinking about a new earnings model and a new pricing policy. One in which we not only take into account turnover, but we also consider other parameters, such as the number of passers-by. There’s already a lot of discussion about that right now. We are now indeed seeing a downward trend in rent prices, but I think they will increase again with time.” RW: “I think the future of the retail industry is perceived in too negative light. In the US we see that many retailers are again recording rising sales. And what happens over there, usually comes to us afterwards. I think there’s definitely a future for both online sales and brick-and-mortar shops. For brand perception, too, it’s better to maintain a combination of both online and offline business. I just think we need more interaction between the two.”
Total portfolio property management 6 projects in the spotlight
Rotterdam
Property Management Office New Tide Rotterdam : 16,391 sqm Single tenant: National Police
Retail Park Management The Leaf : 29,611 sqm retail 14 shops / Opened November 8 2018
Ternat
Machelen
Waterloo
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CEUSTERS l Property Management
Mons
Shopping Center Management Grands PrĂŠs : 44,453 sqm retail 100 shops / 3,495 parking places / 6,3 Mio visitors
Management co-ownership
Shopping center management
Retail park management
Marketing
Property management
Stand alone
“With our new Amsterdam office, we’re aiming at a qualitative and permanent development of our Dutch activities”
Stand –alone Retail Unit 77 sqm unit in shopping center Woensel part of a portfolio of 100+ stand-alone retail units
As of April 2019, CEUSTERS will geographically expand its clout with an Amsterdam HQ. This branch will focus mainly on the “Asset Management Services” we offer with regard to commercial real estate. The Amsterdam team will be headed by Philippe Van den Broeck, COO, who will be settling in the Netherlands permanently as of March. He can rely on the support of several local partners as well as on the main office’s know-how and contacts. “Several of our clients are now engaging in -border diversification. We’d like to support them as they grow, on a permanent basis and from close by,” says Philippe Van den Broeck.
Eindhoven
Property Management Brussels Airport Company : 21,294 sqm offices + 53,658 sqm logistics Multiple tenants
“These past few years, a number of Dutch mandates were added to the portfolio, such as an office building in Rotterdam and a retail portfolio in the south of the Netherlands. From Antwerp, we’re already managing to reach the south of the Netherlands. Now, from the Amsterdam office, we want to extend our reach to the rest of the country. The Randstad definitely isn’t a geographical limitation for us; we are ready to service the whole of the Netherlands. Given the professionalization of both the industry and our own company during the last 10 years, we can now bring to bear the necessary tools (IT and others), structure, and teams for this expansion. The idea behind it is not a hasty expansion, but a high-quality, permanent development of our Dutch activities.”
CROSS BORDER
Management Co-ownership Waterloo Office Park : 4,440 sqm offices with 39 lots 6 to 10 co-owners
CEUSTERS has a professional global partnership with Gerald Eve, a real estate advisory business headquartered in London. With Gerald Eve International, they have a “best in class” network of Worldwide Real Estate experts. Simon Prichard, partner of Gerald Eve: “The real estate business has become a global marketplace, local expertise is extremely valuable but international reach is becoming increasingly important to inves-
tors and corporate occupiers. This is not a quest for world domination but, rather, a way of offering best in class advice and service in key markets throughout Europe and, ultimately, beyond.”
“Experts who are familiar with the local situation and stakeholders will remain highly valuable”
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CEUSTERS l Valuation
he challenges of the real estate sector in 2019 are greater than ever. Deadlines are shrinking and projects are becoming vaster, more mixed use and subsequently more complex. The increasing need for professional expertise and analysis does therefore not come as a surprise. And typically for property: despite globalisation, familiarity with the local market remains crucial. These are just some of the findings of a recent market analysis performed by CEUSTERS and BDO Belgium. The Belgian property sector has experienced turbulent times in recent years. New work models such as coworking, increasing demand for mixed use projects, more stringent requirements for energy performance, etc. All in all, this creates lots of opportunities, but also implies that steadily larger and more complex projects have to be completed within a shorter timeframe. This trend is increasing the need for a professional approach and operational flexibility. All parties concerned, financiers just to name one, want to keep risks to a minimum and also wish to stay in control and follow up, whatever the size of the project at hand. Ways in which this can be achieved include highly detailed monitoring and strong management. Erik Van den Broeck, head of the Real Estate & Construction Practice department at BDO Belgium: “Nowadays, companies and public sector organisations increasingly want to be able to justify their choices and actions to all stakeholders involved. With this in mind, they are bringing in external experts more and more . From an advisory perspective, this mainly means these experts are being given more responsibility and are requested to deliver tailored professional analyses. Simply producing figures is clearly not enough anymore. We feel the increasing demand from clients to produce various alternative sce-
Hans Wilmots, BDO narios to their initial objectives. Vincent Gommers, Head of Valuation & Advisory at CEUSTERS: “Project developers, companies (from SMEs to MNCs) and public sector organisations often do not have the in-house manpower to do all of this themselves or to appoint their entire teams to these tasks. Where a firm such as BDO provides the fiscal and financial structures, we as a property expert step in for the valuation of individual properties (all types/ segments), (semi-)industrial and logistic sites or development projects, setting up and developing scenarios and providing strategic advice. People often regard a valuation report simply as an administrative document that is needed to obtain financing. However, at the client’s request, our valuation & advisory reports can go much further than just reporting market value. We offer relevant input to the client’s case geared to his/her needs, and incorporate our advice into these reports. Examples include strategic advice in view of mergers and acquisitions or within family property portfolios at times of decision making in view of succession.”
Globalisation and financing Although property often remains a local matter, the sector cannot escape the trend towards globalisation. BDO is seeing this trend in, for instance, the sources of financing for some property projects. Increasingly, the end clients for major investment projects are international funds seeking to achieve global diversification.
Vincent Gommers, Ceusters
However, at the client’s request, our valuation & advisory reports can go much further than just reporting market value. Erik Van den Broeck: “The growth and consolidation in the financial sector mean we are seeing a larger group of funds that are also pursuing diversified real estate strategies on a global scale and are consequently displaying interest in the Belgian market. Moreover, a number of Belgian Real Estate Investment Trusts (REIT) are rapidly working on an international strategy in niche markets - Aedifica and Cofinimmo in healthcare-relat-
Erik Van den Broeck, BDO
ed property or WDP and Montea in logistics property are examples. This internationalisation gives leverage to expertise built up locally, increasing the average return of portfolios.” In terms of project financing, such as public-private partnerships, international capital from banks and private equity (risk capital) is also flowing towards local property and infrastructure projects. Erik Van den Broeck: “Opening up the market to international money allows greater potential to be tapped and more focused financing structures to be set up. However that also means that promoters and public sector organisations must also adapt to the international standards of risk allocation, documentation, ‘bankability’ and legal structures if they want to attract these funds, which means a professional approach is of great importance.”
Local expertise is still essential Despite increasing internationalisation in the property sector, local knowledge is still an absolute must when it comes to expertise. Erik Van den Broeck: “Even though expertise in project financing has already become an international business with standardised methods, financial modelling, risk allocation and contractual models, local input is still important, especially in terms of technical, financial and legal expertise. Every region has its own specific standards, legislation and procedures. That is why it is still important to work with local business partners to set up successful strategies.”
'External experts are being given more responsibility'
Vincent Gommers: “Our clients need professional advice at short notice from an independent party that is close to the market and is familiar with the local situation and stakeholders. Whether projects are sold locally or internationally, they are still developed by (supra) locally embedded companies. For existing properties, a pragmatic approach and experience are needed to give clients professional support within their expected timeframe. They can always trust us to deliver them professional and independent advice at each phase of the lifetime of their property or the property they wish to acquire (buy/sell/hold/develop).
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CEUSTERS l Industry and Logistics
‘Logistics will become more intelligent. It won’t be cheaper, but It will be better and more sustainable’ In a world where mobility, speed, and sustainability play an increasingly big part, the logistics sector is facing important challenges. Jo De Wolf, CEO of Montea, logistics real estate expert, and Christophe Wuyts, Head of Industrial Agency at CEUSTERS, share their vision by way of four propositions.
When it comes to e-commerce, Belgium is still in its infancy. Especially compared to its neighbouring countries. JDW: “These past few years, we’ve seen that Belgium is one of the strongest European growers in e-commerce. Of course, we have to factor in that the e-commerce in other countries like the UK and the Netherlands is already much more advanced. That higher growth rate doesn’t mean we’re overtaking them, but rather slowly catching up. Last year, approximately 80% of Belgians older than 15 shopped online
Christophe Wuyts, CEUSTERS
at least once. Over 50% of senior citizens are also shopping online. Belgian consumers are also spending more and more, with an average consumer spend of 1,265 euros. The UK still leads the pack with almost 4,000 euros. That growth is definitely positive, but Belgium also still has a lot of untapped potential.” In the near future, new (greenfield) sites will gradually be completely replaced by the conversion of existing real estate. JDW: “Absolutely. There are still a number of areas logically situated near important approach roads, but there won’t be any more public support for utilizing greenfields for new logistic developments. We support this vision and are already attempting to be one step ahead of this trend. We think about infill development, vertical construction or—why not—multifunctional land use where the roofs of our buildings have alternative uses (relaxation, green space, offices, and so on). In 2018, we also took the initiative to be the first Belgian company to invest in an online logistic solutions platform to deal with temporary excess stock. ‘Stockspots’ is the logistics version of Airbnb. Its purpose is to optimize the occupation of existing build-
'We will see more and more urban distribution hubs pop up'
ings, thereby reducing the need for new ones. In other words: the most sustainable building is one that doesn’t need to be built at all.” CW: “We’re seeing this trend today. Using greenfield areas is still possible in certain regions like Limburg, the area north of Ghent, and Wallonia, but for other logistics hotspots, the focus will be on infill development and redevelopment. This requires specialised expertise of sanitation, earth-moving, brownfield covenants, and the like. The key to optimally advising our customers is know-how.”
Jo De Wolf, Montea
Logistics will—given Belgium’s problematic mobility—only become more expensive. JDW: “Logistics will become more intelligent. The race to the bottom pertaining to prices and delivery times is untenable because it’s not sustainable. Or not sustainable and therefore untenable. Both points of view lead us to the same conclusion. We’ll need to optimise transport in the same way we’re trying to optimise the occupation of our logistic buildings. Whether it’s trucks on European roads or delivery vans downtown, both will have to contribute to disentangling the mobility knot by delivering more efficiently and carrying a smarter load. CW: “Various studies show that traffic will increase further in years to come but will obviously become much greener as well. The entire supply chain can certainly still be optimised in that respect. Think, for example, about last-mile deliveries in our cities and municipalities. This can and must change by way of groupage shipments. On top of that, this economy of scale will save those companies money. That’s why we’ll see more and more urban distribution hubs pop up.”
'Young people’s rising awareness of the climate problem will force companies to take a more sustainable approach to logistics and transport'
In logistics, everything has to go faster. Those who can’t adapt, won’t survive. JDW: “The price of speed today isn’t charged to the customer. Or not enough, anyway. Do you really need the product that you’ll order from your computer tonight by tomorrow? Or would you be prepared to wait a little bit longer, provided you receive an additional discount? We believe that profit cannot be found in the red ocean strategy of cheaper and faster, but in being better and more sustainable. Young people’s rising awareness of the climate problem will force companies to take a more sustainable approach to logistics and transport.”
‘Every company has a societal role to play to achieve the SDGs by 2030’
30
CEUSTERS l Interview
T
his is a historic moment in time – We have to take action now. The Sustainable Development Goals (SDGs) were adopted in September 2015 by the 193 Member States of the United Nations. These 17 goals set 169 targets aimed at ending poverty, fighting inequality and tackling climate change over the next 11 years. The World Economic Forum estimates that buildings account for around 40% of the world’s consumption of primary energy and produce around a third of all anthropogenic CO2 emissions. As CEO I take this 2030 agenda very seriously. I believe responsible business is good business– is not only about creating a profit, it is also about being able to attract people to come work for you, making sure that your own people and your business partners feel proud and in maintaining a strong reputation for CEUSTERS. We at CEUSTERS look at the bigger picture. Contributing to ‘End Poverty’ (Goal 1), ‘Achieve gender equality and empower all women and girls’(Goal 5), ‘Build resilient infrastructure, promote sustainable industrialisation and foster innovation’ (Goal 9),‘Make cities inclusive, safe, resilient and sustainable’ (Goal 11), and ‘Take urgent action to combat climate change and its
‘Warmste Casino’ In December of 2018, CEUSTERS organized the ‘Warmste Casino’ for the very first time: a fundraising night supporting De Warmste Week, Studio Brussel’s annual charity event. All of the event’s proceeds went to the Antwerp non-profit organisation Moeders voor Moeders, an organisation that supports families with children living in poverty. During the fundraiser, the 24 companies and over 180 guests present were able to let their hair down during a game of roulette, craps, poker, or blackjack. Professional croupiers provided the guests with the necessary instruction in how to correctly bet the fictitious money. In total, the guests raised a whopping 9,417 euros.
impacts’ (Goal 13) are certainly part of the role that our company is expected to play in promoting sustainable development. It is a journey of learning and continuous improvement. A business model based on sustainability is, in my mind, a business model that values its key stakeholders, creates shared value and contributes to society. We are a people business. Our talent drives the customer experience. There are many ways to illustrate some of our initiatives: we have a diverse leadership with purpose team, various offices are housed in ‘green’ buildings, at our headquarters we have a garden and work with recycled furniture, and we work hard on building a culture of diversity and inclusion. I am proud to share that at CEUSTERS the female/male ratio is 50/50. For 9 years, you were the chairwoman of the Special Olympics,
I think male and female leaders are well aware of the oftendifficult trade-offs involved in a career.
the Olympics for people with intellectual disabilities. Next year they’ll be held in Antwerp. How does that affect you? Special Olympics is indeed close to my heart. Today I am Honorary Chairwoman and Member of the Council of Sages. My long-term involvement with Special Olympics has developed from two different threads in my life: first my deep belief in the importance of the integration of people with disabilities in society, and secondly my personal commitment to support the Special Olympics athletes for acceptance, dignity and inclusion in their life journey. There are some 4.9 million athletes with intellectual disabilities who are involved in Special Olympics worldwide. The Special Olympics goal is to continue that same feeling long after the competitions are over. We see a world where there is no ‘us’ or ‘them.’ Instead, people of all abilities are treated with dignity and respect and all are welcomed with acceptance and understanding. It is brilliant that the Special Olympics will bring the Olympic flame back to Antwerp. No other organized event in the world has the social and emotional impact of the Special Olympics Games. Antwerp will be the perfect host to welcome important cross-cultural conversations about how to foster inclusion of people with intellectual disabilities. Athletes, families, volunteers, leaders will meet at the Games to attend summits, exchange ideas and talk to the public about the life-changing transformations Special Olympics brings about in participants and communities. For the athletes and their families, the experience opens doors to unimagined possibilities. For volunteers, coaches and other supporters, the Games inspire hope and belief in a brighter future of acceptance, understanding and unity. I will definitely be encouraging our employees and customers to volunteer.
mechanisms, and leadership development practices to allow our employees the space and time to manage a work-life balance.
Does it matter that you’re a woman in a man’s world? Do you think it causes you to make different choices in this field? I think male and female leaders are well aware of the often-difficult trade-offs involved in a career. Everyone has their own leadership style. However, I do see myself as a true entrepreneur. I trust people, take “calculated risks” and I try to make the right choices. Yes, sometimes trust is broken and mistakes happen, but I move forward. Every day is a new beginning. What I see is that the biggest challenge for women with leadership aspirations remains that first step: recognizing and accepting their own ambition and being prepared to make the trade-offs that come with it, particularly in terms of work/life balance and having children. In that, we are working hard at CEUSTERS to support this long-term outlook by revising HR policies, support
The war for talent is a hot topic. What initiatives are you taking in order to be an attractive employer for employees? With the war for talent, a company’s DNA is the foundation. My view is that a culture of the organisation shapes the motivation of your employees. Our leadership team articulates a culture of purpose–and, equally important, serves as a visible, consistent example of those behaviours. This brings me back to the core values of CEUSTERS and thus the “employee value proposition”. A pay check may keep a person on the job physically, but it alone will not keep a person on the job emotionally. Building a unique company culture that drives employee motivation and engagement is a difficult thing to do for any business, small or large. At CEUSTERS we focus on the following 3 key pillars - worklife balance, lifelong learning, and recognition. Developing skills through education within the organisation is a critical pillar in our HR Policy especially as changes in technology continue to intensify. We foster a full culture of learning throughout in ways that include leveraging internal resources, as well as external training and experience platforms that let our people develop their skills on their own time. Recognition is the “pat on the back” that I believe employees regularly need to feel good about their work and the business. It is my view to prepare CEUSTERS fit for Purpose. It requires team engagement from and cooperation with all our business partners. Yes, we are ambitious. We want our people to become the Olympic Team of real estate professionals in the country.