Optimization of established Buildings

Optimization of established Buildings

See challenges as opportunities

The economic optimization of established buildings is gaining increasing importance. But optimization is both a challenge and an opportunity as without a target-oriented strategy and an exact plan, failure is almost inevitable. On the other hand, optimization offers a unique opportunity to tackle and shape the future potential that lies dormant in a building.

What shape is our property portfolio in?

Portfolio owners face many problems today. Above all, excessive costs, falling rental incomes and the generally low functionality of older properties cause headaches. The cause is often the condition of the building itself, but also a work environment that is undergoing rapid change and constantly makes new demands.

When looking at the necessary measures, market participants naturally favor balanced approaches. Solutions must not only be profitable but also fit the balance sheet and the profit & loss statement. The approach is to be holistic, but projects should be lean: Both the outcome and the path towards it should be economical, ecological and functional.

This requires strategies based on sound expertise and tailored to the individual requirements of each portfolio owner. Strategic real estate management forms the basis for the planning of cost-effective realization.

The property clock – in which phase is my building?

The value of the building depends on its age and condition. Knowing where a property is in its life cycle is the key for economic optimization. The property clock is based on the face of a clock, with the pointer running clockwise towards twelve. This is the countdown for the building.

Practice shows that the developments described here are reversible: Optimization means turning back the property clock.

Information exchange: The basis for consulting and analysis

Activating and consolidating the client's property knowledge is essential for achieving the right optimization strategy. This is done through intense exchange between the external consultants and all the owner's departments involved in property issues, such as in-house asset & property management or the construction department. Only these departments have access to the data that will allow target-oriented refurbishment.

For this reason, consultants must above all moderate between the various perspectives. In collaboration with the client's departments they secure organizational planning, commercial and technical feasibility, and finally the implementation of the entire project. During this early consultation phase, information flows in both directions – but when it comes to decision-making, the owner's ideas and goals prevail.

We will be happy to provide further information on specific analysis methods, approaches to optimization and implementation possibilities in a personal meeting.