Buildings without profile, identity and charisma are a problem, especially in competitive markets such as Frankfurt, and this has considerable impact on their general reputation. This was the case with AOC.
A vacancy rate of over 30% for several years and a lack of marketing strategy created pressure, which we confronted head on.
Our repositioning and a letting push for AOC
AOC FrankfurtThe property
AOC in Frankfurt with around 25,000 sqm marks the eastern fringe of the city’s office letting market on Hanauer Landstrasse and is located just before the Ratsweg roundabout. Built in timeless industrial brick style in a comb-like shape, the structure of the building offers a variety of rental options. The smallest possible rental unit is 75 sqm. The building offers over 400 parking spaces and has retail space on the ground floor.
Facts & figures
| Property name | AOC - Accent Office Center |
|---|---|
| Address | Hanauer Landstrasse 291-293 in 60314 Frankfurt/Main |
| Submarket | East |
| Asset class | Office, retail |
| Year of construction | 2014 |
| Lettable area | 25,000 sqm |
| Landlord | Activum; GLL |
| Activities | Sell-side mandate, Repositioning, Landlord Representation |
| Mandate period | 2012–2015; 2015-2017 |
The challenge
The property did not have a good reputation in the market when it was taken over, because much of the space had not been let for years and the vacancy rate was around 30%. There was no letting and marketing strategy for the property, and so it was a question of developing a profile and breathing new life into the building. The small units sizes in the building were a particular challenge.
Run, run, run! Every measure under our asset management perspective has strategic foundations and goals, but that does not mean that we can also act very pragmatically. In the case of AOC, dynamism with a high number of property viewings and considerable legwork on the part of the marketing team accompanied by a fast turnaround in terms of planning was a key success factor.
The method
Active asset management with effective measures and tools
- Development of a letting strategy
- Preparation of marketing documents
- Broad and dynamic market approach
Run, run, run! Sales offensive with high dynamism and speed. AOC is a modern, well-appointed property, but it needed a modern marketing concept adapted to the complexity and letting challenges of the building. It also required a clear letting strategy and communication for prospective tenants in this submarket. This is a submarket that you have to be able to read, due to its mix of national and international industrial concerns and creative companies of all sizes.
Therefore, success of the project and property required one thing above all: fast feet and legwork! Due to the small-scale letting opportunities, it was not unusual for there to be several viewings in one day. This required the highest level of service and a fast turnaround in terms of viewings, space planning and rental offers. We were able to work with our dynamic client to achieve this in record time.
Property particulars
New TI & CapEx programme
Market and location analysis
The result
Building value: the positive results from Asset Management and Investment Advisory for AOC
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- Over 90% let for the first time since it opened its doors 11 years ago
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- Reduction in long-standing vacancy within 18 months of finalising all marketing measures
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- Creation of a higher market value product. This was manifested by the successful sale to an international Core investor
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- Support for the next buyer with further stabilising and value-enhancing measures
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- Value uplift of 250% achieved during the holding period (purchase prices at acquisition)
By combining our Asset Management and Investment Advisory services in this task, our activities achieved both short- and long-term success. The noticeable repositioning and high level of letting had a considerable effect on value, with a value uplift of 250% achieved. We provided the buyer with comprehensive advice and accompanied the deal in all areas.