Real Estate

Primary vs. Secondary Assets

What to do with secondary assets? Adapt or demolish?

Avoiding portfolio risks

High vacancy rates, falling values and ever-stricter regulatory requirements present major challenges for investors and owners of so-called secondary assets while also requiring some crucial decisions. While demand for primary assets – premium properties in prime locations – remains high, the gulf between them and B and C locations continues to widen, resulting in significant value loss for the portfolio. We can help you strategically realign your portfolio. The goal is to secure values, ensure future viability and systematically exploit opportunities that go beyond conventional usage concepts.

The current situation is not a cycle, but structural change

The real estate market is currently undergoing extensive restructuring:

Sky-rocketing vacancy rates, especially for office buildings
Decreasing space requirements and changing user behavior
Obsolete building stock and stricter ESG requirements
Regulatory pressure (e.g. due to revised Energy Performance of Buildings Directive, EPBD)
Demographic change
Misallocation of resources

Market forces alone will not reduce this overcapacity. Unless countermeasures are taken, there is a risk of a long-term loss of building stock and capital.

Restructuring existing buildings rather than writing them off

We pursue a holistic approach that does not end with analysis, but consistentlyextends through to implementation. We develop well-founded decision-making scenarios, identify sustainable uses and implement measures that make sense technically, economically and with regard to regulation – always with a clear focus on long-term value retention.

Our services at a glance

Strategic, technical and commercial basics

Portfolio analysis along with strategic real estate and portfolio consulting
Examination and evaluation of future-proof asset classes
Transaction and due diligence services
Capex and opex optimization

Transformation and value enhancement

General planning and implementation of value-add measures
Repositioning and conversion of existing properties
Development of alternative usage scenarios to reduce vacancy rates
Responsible deconstruction including material flow management (urban mining)

ESG, regulation and subsidies

Efficient building monitoring and ESG optimization
Investigation of and application for subsidies
Smart implementation of legal requirements (e.g. EPBD)
Comprehensive reporting for our customers

Making systematic use of opportunities

Despite structural challenges, attractive growth markets are opening up in a range of asset classes including data centers, life sciences, logistics, and hybrid living (residential mixed-use concepts). These segments are benefiting from technological change, demographic trends, and ESG-driven demand. We can help you make your portfolio fit for the future – both nationally and internationally.