Secure return on revitalization projects? Drees & Sommer shows market-focused concepts and their implementation at a fixed price

Owners of legacy buildings and investors often find that their properties are difficult to market, lease income drops, and properties no longer deliver the anticipated returns. Secure, cost-covering revitalization measures - in particular for vacant commercial and office buildings - offer Owners and project developers high value-add potential. Drees & Sommer offers a holistic range of services to make legacy properties marketable and profitable again - on request at a fixed price.

Carrying out a profitability and potential analysis
First, Drees & Sommer analyzes the state of the property through a Technical Due Diligence, evaluates the site, assesses the market situation and - if appropriate - looks for suitable uses for the property. As a result of the profitability and potential analysis and the scenarios, the Owner is given recommendations, for example for a light renovation or complete redevelopment of the property. Drees & Sommer also gives estimates of necessary investments and possible increases in income.

Developing a market-focused concept
With an interdisciplinary team of market analysts, lawyers and planners, Drees & Sommer develops a market-focused utilization concept and summarizes findings in a feasibility study. During this, experts also examine planning approval, make suggestions for optimizing tenanting, and develop a marketing strategy to establish the anticipated future yield  based on these parameters.

A more detailed inventory - for example of building damage, load-bearing structure or contamination - secures investment and operating costs. These can then be compared with yield by means of return analysis. Even at this stage, the construction cost of revitalization measures can be guaranteed with the Drees & Sommer Partner Model. This provides Owners and investors with maximum security - not only for on-schedule completion of the various project phases, but also with regard to investment costs and the anticipated returns. 

Securing implementation
Whether with or without a fixed-price guarantee, Drees & Sommer contributes extensive experience in the management and controlling of revitalization projects and secures adherence to budget, schedule and qualities throughout the entire process until the building is once again attractive for tenants and either leased or sold in a higher price category.

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