In times of acute housing shortages and empty office properties, one topic is becoming increasingly important in the focus of investors and owners: The conversion of office space to living space. What sounds like a social and ecological contribution at first glance, On closer inspection, it turns out to be a tangible entrepreneurial opportunity. Because the transformation of unused commercial space can - correctly analyzed and implemented - generate an attractive cash flow, Secure real estate values and at the same time create socially urgently needed living space.
The pressure on the housing market: A challenge with potential
According to a current analysis, round is missing throughout Germany 550.000 Apartments, Especially in the segment of the affordable living space in metropolitan areas. At the same time there are many places Hundreds of thousands of square meters of office space empty - for example in Hamburg alone, 753.000 m². The change in the labor market through home office and desk sharing further strengthens this trend.
What is an acute problem for municipalities and those seeking housing, can be an economic option for real estate owners: The conversion of empty office properties in residential units is not just a solution with social added value, but also a way to more stable and sustainable rental income.
Why the conversion is worthwhile - economical and ecological
1. Reduced construction costs through inventory use
An essential advantage is the existing building fabric: Entity, Covering, Development - a lot is already available and thus saves material- and construction costs. This often makes conversions compared to new buildings significantly cheaper and more resource -saving. Most of the so -called “gray energy” Is already bound. That means: fewer emissions, shorter construction times, Lower planning effort.
2. Sustainability and ESG conformity
The use of existing buildings supports climate goals and improves the ESG record of a property. In a market, in which sustainability is increasingly also relevant to financing, this is a strategic advantage - especially with a view to investors, Banks and institutional partners.
3. Higher cash flow through market -friendly residential rent
In tense apartment markets significantly more stable rental income realize as with classic office space, whose rental price development has been stagnated or declining since the pandemic. Smaller residential units in particular offer a good return risk ratio.
From the idea to implement: The structured process of conversion
A successful red-revelopment project begins with a detailed analysis and does not end with the construction, but with the stable operation. The typical course of the project comprises five central phases:
1. Start with the location- and object evaluation
Start with a objectified assessment of your location:
How high is the local demand for living space? Which target groups (z. B. Student, Family, Senior citizen) dominate the market? Which building law restrictions apply? And very crucial: The property is structurally suitable for living use?
Typical criteria:
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Depth of building ≤ 14 Meter: Important for natural exposure
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Flexible floor plan structure: z. B. Support construction instead of load -bearing walls
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Number and location of stairwells and elevators
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Exposure and ventilation potential
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Fire protection and soundproof status
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Technical building equipment (TGA): z. B. central heating, ventilation, Electric
An experienced project advisor or architect can already provide a sound assessment here in a first inspection - often combined with a coarse investment framework and the sketching of potential reports.
2. Cash flow modeling: Realistically calculate profitability
A crucial step for owners and investors is the economic assessment of conversion. A detailed helps Cash Flow Modell, that both the conversion costs, the temporal processes as well as the planned rental income and operating costs into account.
Typical entrance variables:
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Bau- and planning costs per square meter
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Eligible shares and possible grants
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Financing structure (Own/debt)
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Planned rents by target groups
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Rental period and vacancy reserves
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Depreciation models (AfA, Special AFA near social housing)
Key figures, which derive from it:
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Net netfangeenite (Net Initial Yield)
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Capital value (NPV)
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Internal interest foot (IRR)
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Break-even time
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Dynamic amortization
Especially in the case of inventory objects: A moderate, But realistic rent is usually more achievable than with expensive new buildings - which often improves economy despite any structural challenges.
3. Create legal certainty - speak to authorities at an early stage
The German planning- and building authorization law places high demands on changes in use. It is all the more important, Early in the dialogue with building authorities, City planners and possibly. To go monument protection authorities.
Dabei helfen u. maid.:
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§34 BauGB (Insert in the area)
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§13a BauGB (Accelerated methods indoors)
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Current state regulations on standards for conversions (z. B. Schleswig-Holstein or Hamburg)
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Exemptions from the parking space evidence or deviations in window ratings
The goal should be a legally secure renovation, that does not bring any nasty surprises during or after the construction phase.
4. Use funding and tax lever
The state supports conversion with various Funding instruments, Especially in the area of affordable living or energetic renovation. Funding opportunities exist on several levels:
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Federal level: z. B. KfW funding loan, BEG-Programme
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State programs: Grants for conversions, Label funding
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Local level: Refraining law or development aids
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Tax: Special depreciation for social housing (§7b EStG), Monument, Investment deduction amounts
Is important: Funding are early to apply for and usually bound to certain standards or rental boundaries. Therefore, they should be integrated into the planning early - not in the first place, If the construction costs are already fixed.
5. Marketing or operation: Sustainable use for stable yields
After the successful renovation of your office property in living space, the decision is due: Keep or sell stock? Both paths offer different opportunities - is crucial, what goal you pursue with the property: short -term liquidity, Long -term cash flow or portfolio optimization.
Option A: Existing development and renting
If you keep your property in the stock, Benefit from regular, calculable rental income. Especially in tense apartment markets, living space can be found in well -connected locations rent sustainably and quickly - often with lower marketing costs than in new apartments.
Particularly interesting:
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Micro-card or WG-capable apartments For students or young professionals
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Barrier units for seniors or people with a need for support
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Socially funded apartments, often in cooperation with providers or cities (z. B. With refined or guaranteed rental)
The long -term rental is particularly recommended:
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Positive cash flow from day 1
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Attractive location with rental price dynamics
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Protection against market cycles by diversified tenant structure
Option B: Sales in the renovated state
A reducent can also be a targeted one Value increase strategy serve: By renovating you increase usability, Reduce vacancy and create living space - a coveted goods, Especially for institutional buyers or housing associations.
Sales advantages:
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Realization of silent reserves through upgrading
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Higher purchase price factors for rented living space than for vacant office space
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Possibility of bundling of the project (z. B. Package sales of several converted objects)
A marketing concept should be developed for this strategy at an early stage - for example with target group analysis, Usage concept, Visualizations and exit scenarios.
Option C: Cooperation with social providers or residential projects
Especially in urban locations and with smaller units it can make sense, Long -term partnerships with social providers, To enter into living initiatives or municipalities. These often not only take over the rental payments (z. B. About KDU services), but also parts of the administration.
This option offers:
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Stable rental income with a minimum risk of vacancy
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publicity effect (ESG/sustainability)
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possibly. Access to additional funding or tax discounts
Obstacles and how to overcome them
Of course, conversion is not a sure -fire success. There are challenges, among other things, in:
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building law restrictions (Change in use, Fire protection, Parking of parking space),
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high demands on sound insulation and energy efficiency,
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The need for a functional floor plan for residential units.
But this is exactly where strategic planning and specialized advice start. With an interdisciplinary team of architects, Project developers, Financing- And tax experts can also be successfully implemented complex projects. An experienced partner can also help, to identify realistic funding backdrops and accelerate approval processes.
Perspectives: From the individual owner to institutional investor
Depending on the owners' structure, there are different strategies and goals for a redue:
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Private investors with vacant offices: can generate new rental income through conversion, Use depreciation and secure the asset substance.
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Family offices and existing holders: benefit from the ESG effect and portfolio diversification-especially in regions with limited new construction potential.
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Housing associations and cooperatives: Can activate empty areas, To create socially bound residential offers - often encouraged and with cash flows that can be planned in the long term.
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Institutional investors: often develop entire quarters - e.g. B. In combination with mixed uses, Mobility concepts and new infrastructure.
Conclusion: Change as an opportunity for sustainable investments
The conversion of office space to living space is more than a short -term trend - it is one Strategic answer to several pressing questions at the same time: affordable living space, Climate protection, Sustainable urban development and economically sensible reuse.
For owners and investors, who want to set up their real estate portfolios resilienters, offer vacant commercial space a remarkable potential - provided, You recognize it and specifically implements it.
You want to know, What potential in your office property is?
We accompany you from the idea to implementation - neutral, open and with the aim, To make the best of your property.
