Real Estate: Why Office Landlords Are Suddenly Willing to Pay for Renovations
Empty desks are changing the market: instead of moving out, companies are modernizing their offices and involving landlords in the costs. Experts show that now is a good time to negotiate.
The Deutsche Bank relocated hundreds of specialists from its technology centers in St. Petersburg and Moscow to Berlin, requiring new office space. Instead of renting new space, the bank decided to renovate two existing buildings at Ernst-Reuter-Platz, working around its current occupants. This approach is becoming more common, driven by a decline in demand for new office space since the COVID-19 pandemic, which has left many landlords willing to make concessions to keep tenants.
According to experts from Savills, JLL, and CBRE, landlords are offering incentives such as rent-free periods, construction cost contributions, and flexible lease terms, which can amount to 5-20% of the contract value.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
