5 Questions Put to our Expert: The strategic importance of brownfields

Rick Mädel

Managing Partner GARBE Regeneration

Since when has GARBE prioritized brownfields—and why?

GARBE has been pursuing the topic of brownfield development for some time. With the establishment of our subsidiary GARBE Regeneration this summer, we have made brownfields a consistent strategic focus. Our approach is to reactivate existing sites, avoid additional land sealing, and create value in locations that are already integrated into existing infrastructure.

The GARBE platform, which encompasses a wide range of asset classes – from logistics and light industrial to data centres, retail, residential and office – enables us to assess potential uses at an early stage. This accelerates processes, enhances planning and cost certainty, and facilitates constructive dialogue with local authorities.

Financing is more difficult in the current environment—how are you proceeding?

Risk premiums have increased, and investors are acting more cautiously and selectively, which is naturally challenging for us. However, market conditions are not entirely unfavourable: land prices have fallen significantly in many areas. Our focus is on bringing thoroughly assessed projects to the capital market. This may take longer, but it enhances resilience for both us and our partners.
We are also interested in acquiring sites that, in addition to existing industrial buildings providing immediate and reliable cash flow, offer further development potential. This combination of ongoing income and planned revitalisation with medium-term value growth aligns well with the current market cycle.

Which locations are in focus?

We do not have a specific regional focus, but we are primarily looking for brownfield potential in northern, western, and southern Germany. Infrastructure remains the key factor. In addition to accessibility and planning potential, aspects such as labour availability, demographic trends, and economic resilience are equally important.

With in-house access and expertise across various asset classes, we assess urban locations for high-quality uses such as residential developments and small-scale commercial concepts, as well as peripheral sites for traditional warehouse schemes.

What role do ESG requirements play?

As far as ESG is concerned, brownfields form an integral part of our company-wide ESG strategy. The reactivation of old, disused commercial sites helps to prevent further land sealing and enables the remediation of contaminated areas. In most cases, the issue of contamination can be managed cost-effectively, provided that remediation methods, monitoring, and follow-up costs are precisely calculated. However, the perpetual obligations associated with groundwater remain critical – that is, the long-term responsibility for monitoring and, if necessary, treating contaminated groundwater areas, even long after a project has been completed – and may, in some cases, lead us to withdraw from a project.

Sustainability considerations are the guiding principle in the redesign of these sites – ideally, we can enhance both the sustainability performance of the area and its urban quality.

When ownership changes at a later stage, we document transparently which ESG measures have already been implemented and which development steps may remain.

If you dare to look ahead, how will the situation for brownfields develop?

Today, we are seeing more supply than demand in parts of the market. Structurally, however, land remains scarce – particularly in key logistics regions – and approval processes are not accelerating. That is why we are now securing suitable sites, advancing planning permissions and keeping projects construction-ready within our pipeline.

We expect the market to regain momentum in about three years. Those who have technically robust, fully permitted projects at that point will be able to accelerate market entry – and that is precisely what we are preparing for.