The Reality of Business Poker Unveiled
In the heart of Berlin, real estate investor Commerz Real is making waves with its ambitious plans for a "department store of the future" at Alexanderplatz. This mixed-use development, which includes retail, offices, coworking spaces, and entertainment, is a shift from traditional department stores and aims to create a vibrant, integrated cultural and commercial hub.
The vision for this development involves courting the Zentral- und Landesbibliothek Berlin (ZLB) as an anchor tenant. However, questions arise about the profitability of the over-one-billion-euro project without the library as a anchor tenant.
The idea of housing the ZLB in the closed Galeries Lafayette on Friedrichstraße was initially considered, but Tishman Speyer, the building's owner, has opted to convert the former department store into offices.
Negotiations between Commerz Real and the Berlin Senate are ongoing, with a lease-purchase or purchase option at Alexanderplatz under discussion. The potential cost of this venture ranges between 700 million and 1.2 billion euros.
The Galeria department store, which occupies 36,000 square meters, has been a fixture at Alexanderplatz. However, its lease, which expires in February 2026, has been a subject of contention. An extension of the lease was proposed until August, but Commerz Real demanded a rent increase of 4 million euros, citing neglected maintenance work such as fire protection.
Economy Senator Franziska Giffey (SPD) has been trying to keep the negotiations open regarding the Galeria lease. The Senate, seeking a sustainable, long-term solution for the space, is now looking for a single location to unite the two overcrowded and heavily in need of renovation parts of the library on Breiten Straße in Mitte and the Amerika-Gedenkbibliothek in Kreuzberg under one roof.
If an extension of the Galeria lease is not agreed upon, the department store may have to negotiate with its employees about the dissolution of employment contracts. On the other hand, the preservation of the Galeria department store (reduced to 12,000 square meters) will only be possible if the Senate houses the Central and Regional Library (ZLB) in the existing building and the currently under-construction high-rise.
As the negotiations continue, it's clear that both parties are seeking a solution that benefits the city and its residents, whether it's through the revitalisation of Alexanderplatz or the modernisation of the city's libraries.
The proposed development by Commerz Real at Alexanderplatz, which encompasses retail, offices, coworking spaces, and entertainment, aims to incorporate technology as an integral part of the mixed-use project. To ensure the success of the over-one-billion-euro project, it is crucial to secure the Zentral- und Landesbibliothek Berlin (ZLB) as an anchor tenant, as debates surrounding the project's profitability without the library's presence arise.
