"Aengevelt sees the Office asset class facing massive restructuring."

The future reductions in demand for office space will primarily affect older monostructured existing properties that offer inflexible floor plans with cubicle offices, have an energetically problematic condition and/or are located in peripheral locations. Such properties are increasingly developing into "stranded assets" with the prospects of demolition or conversion (e.g. to commercial housing). The pressure on old properties is also exacerbated by the fact that, despite the reduction in quantitative space requirements as part of the "Flight to Quality", Aengevelt sees continued brisk demand for new office buildings in the medium and long term, which is also reflected in rising prime rents in the growth markets.

According to Aengevelt, future-proof office properties are characterised by the following features:

• Central locations in an urban environment with good accessibility by local and long-distance public transport, motorised private transport and e-bikes.
• New Work-friendly, flexible floor plans with co-working spaces, flex offices and social areas that can also be adapted to future changes in the world of work.
• Fulfilment of ESG criteria with high energy efficiency.
• Attractive interior design and ambience to make presences attractive for employees.
• Accompanying mix of uses through needs-based services and restaurants

According to Aengevelt, these qualities can be realized both through new buildings and, for example, through renovated historic factory buildings with loft-like interiors and possibilities for flexible floor plan design.

Mark Aengevelt, Managing Partner of Aengevelt Immobilien: "The demands for office space are continuously increasing, and demand is focused on modern, ESG-compliant and, in particular, energy-optimised and efficient New Work-suitable office space in top locations. Companies compensate for the associated rents, which are usually significantly higher, by reducing the size of the space previously used. In view of these framework conditions and at the same time shortening product life cycles, competitive pressure is growing on the part of suboptimal existing properties, so that needs-based conversion scenarios are becoming increasingly relevant for consulting and marketing."