Promising market potential for the repurposing of office space
Dietlikon, 2 October 2015 – Implenia shows in a recently released study done jointly with the market experts from JLL: The repurposing of office properties in the right locations is worthwhile from the perspective of investors and can help to mitigate the housing shortage. Implenia presented the findings of the study last week in Zurich to more than 100 invited Swiss real estate investors and transaction specialists. Adrian Wyss, head of the Implenia Modernisation & Development Business Unit, said: “The question of whether flats can be made out of empty offices is not a new one. But it was time to take a closer look at this issue once again from an economic and structural perspective." The look at economic data and rental markets reveals: the focus is shifting increasingly to repurposing as an option for investors given the different points in the real estate cycle at which the two segments “Residential” and “Office” currently find themselves. The study also shows the locations in Switzerland with market potential for the repurposing of office space. Office properties which are in need of rehabilitation and for which there is little demand but which are situated in urban centres with a limited supply of housing are especially attractive. In Zurich for instance the rents for new apartments in peripheral and "intermediate districts" such as Altstetten, Wipkingen or Schwamendingen surpass rents for offices by more than CHF 90 per square meter and year. The same is true of the eastern part of the city of Geneva. The potential for properties "in the second row" and in peripheral districts is therefore often underestimated. The high potential yield at these locations enables old offices to be transformed into attractive apartments. Meanwhile, various property analyses and projects carried out by Implenia in recent years have shown that the potential can only be used if reliable cost estimates are combined with innovative ideas and experience in the handling of modernisation projects. The complete Implenia modernisation study for 2015 – only available in German – can be downloaded here.
Questions on the study:
Christian Kraft
Head Consulting, Modernisation & Development
Telephone: +41 58 474 02 68
Media contact at Implenia:
Philipp Bircher
Head of Communications Group
Telephone: +41 58 474 74 77
The Implenia modernisation study entitled “Repurposing office buildings – Myth or reality?” was presented to about 100 invited Swiss real estate investors and transaction specialists. The venue for the presentation was the modernisation project of Allianz Suisse Versicherungs-Gesellschaft AG at Bleicherweg 19 and Claridenstrasse 41 in Zurich. Implenia was responsible as total contractor for the comprehensive modernisation of this property.
Implenia is Switzerland's leading construction and construction services company and has a strong position in the German, Austrian and Scandinavian infrastructure markets. Founded in 2006, Implenia looks back on a 150-year tradition in the building industry. It brings expertise from highly qualified sectoral and regional units under a single roof to create a company that conducts business throughout Europe. With its integrated business model and specialists operating in all areas of the building sector, the Group is able to manage a building project through its entire life cycle and deliver work that is economical, integrated and customer-centric. The focus is on striking a sustainable balance between financial success and social and environmental responsibility.
Implenia has its head office in Dietlikon near Zurich, employs about 8,100 people and generated pro forma revenues of around CHF 3.6 billion in 2014 (including the former Bilfinger Construction). The company is listed on the SIX Swiss Exchange (IMPN, CH0023868554). Further information at www.implenia.com.
