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HOUSING

Berlin seeks to keep rents down on commercial properties to save small shops

Rents in Berlin are not only rising excessively for private apartments – but also in commercial properties. Here’s how the local government wants to take action.

Berlin seeks to keep rents down on commercial properties to save small shops
Costume and magic shop Zauberkonig in its former location in Hermannstraße, Berlin. Photo: DPA

When it comes to the debate about rising rental prices in large cities, one area is often overlooked: shops and businesses. 

While there are already regulations limiting rents for apartments in large German cities, such as the Mietpreisbremse (rental price brake), there are no comparable laws for commercial premises. 

But prices are undoubtedly increasing. In so-called “1-B locations” in Berlin, rents on large retail spaces went up by more than 260 percent between 2009 and 2018. For smaller spaces the increase was 200 percent.

In prime sites (so-called I-A locations), rents have risen by around 50 percent.

The Berlin Senate wants to limit this, and on Tuesday it is launching an initiative in the German Bundesrat, the upper house of parliament, for regulation of commercial rents.

The aim of the application, which was seen by the Süddeutsche Zeitung, is to “introduce a brake on commercial rental prices in strained commercial-space markets”.

Markets are deemed to be strained if “there is a particular risk that small and medium-sized companies will no longer find commercial leases with reasonable terms’.

The senate states that commercial rents have “exploded” and that “exorbitant price increases” have led to small and medium-sized businesses being pushed out, or no longer being able to gain a foothold in some locations.

For this reason, Berlin authorities say laws should be introduced to make it possible “to limit the permissible rent at the start of the lease”.

READ ALSO: What Germany is doing to keep rents down

Save neighbourhood shops

Berlin senator of justice Dirk Behrendt, of the Greens, said the focus was on saving small neighbourhood shops and stop them being displaced by large chain firms.

“Traditional shops, family-run butchers and bookstores” are being replaced by large chains, he said. “We want to stop this negative trend with our commercial rental price brake.”

Dirk Behrendt at a packaging free supermarket in Berlin.

At this stage the proposal states that the Bundesrat should ask the government “to examine the introduction of a commercial rent brake in tense commercial space markets”.

In October 2018, the Bundesrat had already pointed out in a resolution “with concern” that “against the backdrop of considerable increases in commercial rents, a structural change is emerging in inner-city locations in recent years that is also characterized by the displacement of small owner-managed commercial enterprises and social facilities”. 

At the time, however, the Bundesrat did not call for the introduction of a brake on commercial rental prices. It just asked the government to “examine measures in commercial tenancy law, economic development and urban development law”.

READ ALSO: Berlin opts to freeze rental prices for five years

However, the federal government has so far shown no great interest in bringing in a brake on commercial rental prices.

In an answer to a question from Green MPs, the government said introducing protections for commercial properties similar to private housing regulations did “not appear to be advisable”.

In their question, the Greens said that due to high commercial and residential rents, there was a development towards inner cities serving “as a backdrop for tourists and their needs” and becoming “one-sidedly inhabited by wealthy households”.

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BERLIN

EXPLAINED: Berlin’s latest Covid rules

In response to rapidly rising Covid-19 infection rates, the Berlin Senate has introduced stricter rules, which came into force on Saturday, November 27th. Here's what you need to know.

A sign in front of a waxing studio in Berlin indicates the rule of the 2G system
A sign in front of a waxing studio indicates the rule of the 2G system with access only for fully vaccinated people and those who can show proof of recovery from Covid-19 as restrictions tighten in Berlin. STEFANIE LOOS / AFP

The Senate agreed on the tougher restrictions on Tuesday, November 23rd with the goal of reducing contacts and mobility, according to State Secretary of Health Martin Matz (SPD).

He explained after the meeting that these measures should slow the increase in Covid-19 infection rates, which was important as “the situation had, unfortunately, deteriorated over the past weeks”, according to media reports.

READ ALSO: Tougher Covid measures needed to stop 100,000 more deaths, warns top German virologist

Essentially, the new rules exclude from much of public life anyone who cannot show proof of vaccination or recovery from Covid-19. You’ll find more details of how different sectors are affected below.

Shops
If you haven’t been vaccinated or recovered (2G – geimpft (vaccinated) or genesen (recovered)) from Covid-19, then you can only go into shops for essential supplies, i.e. food shopping in supermarkets or to drugstores and pharmacies.

Many – but not all – of the rules for shopping are the same as those passed in the neighbouring state of Brandenburg in order to avoid promoting ‘shopping tourism’ with different restrictions in different states.

Leisure
2G applies here, too, as well as the requirement to wear a mask with most places now no longer accepting a negative test for entry. Only minors are exempt from this requirement.

Sport, culture, clubs
Indoor sports halls will off-limits to anyone who hasn’t  been vaccinated or can’t show proof of recovery from Covid-19. 2G is also in force for cultural events, such as plays and concerts, where there’s also a requirement to wear a mask. 

In places where mask-wearing isn’t possible, such as dance clubs, then a negative test and social distancing are required (capacity is capped at 50 percent of the maximum).

Restaurants, bars, pubs (indoors)
You have to wear a mask in all of these places when you come in, leave or move around. You can only take your mask off while you’re sat down. 2G rules also apply here.

Hotels and other types of accommodation 
Restrictions are tougher here, too, with 2G now in force. This means that unvaccinated people can no longer get a room, even if they have a negative test.

Hairdressers
For close-contact services, such as hairdressers and beauticians, it’s up to the service providers themselves to decide whether they require customers to wear masks or a negative test.

Football matches and other large-scale events
Rules have changed here, too. From December 1st, capacity will be limited to 5,000 people plus 50 percent of the total potential stadium or arena capacity. And only those who’ve been vaccinated or have recovered from Covid-19 will be allowed in. Masks are also compulsory.

For the Olympic Stadium, this means capacity will be capped at 42,000 spectators and 16,000 for the Alte Försterei stadium. 

Transport
3G rules – ie vaccinated, recovered or a negative test – still apply on the U-Bahn, S-Bahn, trams and buses in Berlin. It was not possible to tighten restrictions, Matz said, as the regulations were issued at national level.

According to the German Act on the Prevention and Control of Infectious Diseases, people have to wear a surgical mask or an FFP2 mask  on public transport.

Christmas markets
The Senate currently has no plans to cancel the capital’s Christmas markets, some of which have been open since Monday. 

According to Matz, 2G rules apply and wearing a mask is compulsory.

Schools and day-care
Pupils will still have to take Covid tests three times a week and, in classes where there are at least two children who test positive in the rapid antigen tests, then tests should be carried out daily for a week.  

Unlike in Brandenburg, there are currently no plans to move away from face-to-face teaching. The child-friendly ‘lollipop’ Covid tests will be made compulsory in day-care centres and parents will be required to confirm that the tests have been carried out. Day-care staff have to document the results.

What about vaccination centres?
Berlin wants to expand these and set up new ones, according to Matz. A new vaccination centre should open in the Ring centre at the end of the week and 50 soldiers from the German army have been helping at the vaccination centre at the Exhibition Centre each day since last week.

The capacity in the new vaccination centre in the Lindencenter in Lichtenberg is expected to be doubled. There are also additional vaccination appointments so that people can get their jabs more quickly. Currently, all appointments are fully booked well into the new year.

 

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