Our member, apoprojekt explains how existing properties can be made climate-compliant and economically viable.
By modernising office spaces, they address market pressures and enhance property value while meeting sustainability goals. Stephan Winn, Managing director of apoprojekt, explains how existing properties can be made economically viable. As a general contractor specialising in transforming existing properties, apoprojekt has the answer: Design & Build.
Office Real Estate Market Under Pressure
In 2023, office space turnover in Germany hit its lowest level since 2009, especially in the top six locations. Modern spaces in prime locations are in high demand and command top rents, but they are scarce. According to JLL, this supply gap could widen to 71% by 2030. In contrast, properties in outlying areas with poor CO2 balances are facing more vacancies and trouble finding new tenants, causing property values to drop in Germany’s largest office markets.
Modernising Office Properties Is Essential
High financing and construction costs, along with limited space, are shrinking the pipeline of new construction projects and reducing the number of building permits. The focus now is on existing properties. For owners and asset managers, modernising these properties can be highly rewarding. The property's attractiveness increases as tenants seek modern, flexible, and sustainable spaces, leading to greater tenant security and the potential for higher rents. This results in a much-needed value enhancement. Most properties are re-evaluated every ten years, so there are only two evaluation cycles between 2024 and 2045—the target date for climate goals.
"We cannot change the high construction costs – but we can change our mindset: The construction and real estate industries must unite and work together in a spirit of partnership using the Design & Build approach. This way, budgets can be optimised and, ultimately, the idea of sustainability can be economically realised."
How Climate-Compliant Revitalisation Succeeds
Needs-based consulting is the foundation of apoprojekt's transformation process. They conduct detailed building analyses and present various decarbonisation paths, assessing each based on its cost-benefit ratio. Depending on the client’s preferences and budget, several options can be chosen—it doesn’t always have to be “all or nothing.”
Measures range from immediate actions in building operations to using photovoltaics, modernising technical building equipment, and insulating the building envelope.
The biggest challenge in the current market is retaining tenants and securing new leases. Successful financing, economic viability, and project implementation depend on this.
Design & Build: The Future of Sustainable Construction
To turn sustainability into an economically optimised model, early bundling of competencies, transparency in planning and construction, and partnership trust are needed—in short: Design & Build.
Apoprojekt's long-standing experience shows that construction projects are significantly more efficient when all services, from planning to turnkey handover, are provided by one source in partnership with the client. Bundling project responsibility across the entire value chain allows for full control over budget and timelines.
With this approach, apoprojekt can outline and directly implement decarbonisation measures. They offer consulting, planning, and construction implementation from a single source, ensuring accountability for the overall success of a project and adherence to clearly defined budgets.
To find out more, please visit: www.apoprojekt.de