Europe Obsolescence Equals Opportunity

An asset may be a good candidate for repositioning if tenants are still active in leasing space throughout the market and submarket—yet they are most attracted to highly-amenitised, higher-quality properties. In such a case, capital investments to improve and reposition the property can help to put the asset at the top of a tenant’s short list. Here’s a short list of steps that should be taken: • Define the project: Compiling a detailed estimation of project costs is key, as is projecting what rent and occupancy can be achieved following the repositioning project. Ultimately, a full assessment of the cost of investment is overlaid with a view of achievable rents and asset valuation perspective.

Repositioning strategies are among the least costly and most efficient strategies for bringing an obsolete office property up the value and relevance curve.

The Next Evolution of Office and How Repositioning and Repurposing Will Shape the Future of European Real Estate | 13