- Occupancy rate of HIH portfolio rises to 98.5% in 2017
- 120,000 square metres of newly rented space
- Specialisation ensures agility in increasingly fast markets
Hamburg, 26 February 2018 – Over the last year, HIH Real Estate (HIH) added 141 rental agreements to its portfolio,104 of which were new tenancies. The revenue came from letting 120,000 square metres and 42,000 square metres of that were for lease extensions. The vacancy rate of the portfolio comprising almost two million square metres of lettable space was reduced from 2% to 1.5%. “We managed to achieve full occupancy in many properties almost as soon as we assumed management of them,” says Ken Kuhnke, Head of Letting Management at HIH Real Estate. The portfolio’s highest revenue came from the long-term lettings of 10,800 square metres to a well-known advertising agency in Düsseldorf, of approximately 7,400 square metres to a major bank in Frankfurt am Main, of over 5,300 square metres to the M&W Group in the Stuttgart Löwentorbogen, and from an agreement with an agency for around 2,500 square metres in Global Gate, Düsseldorf.
Third-party business throughout Germany
Ken Kuhnke attributes three main reasons why the portfolio of over 200 properties managed by the HIH letting managers is almost fully let. “It is factors like specialisation and local presence that encourage more and more customers to use the services offered by HIH to meet their real estate needs,” commented Kuhnke. “Foreign investors in particular who are unfamiliar with German market conditions value our market penetration rate in Germany.” For more than two decades, HIH has been working to fill and prevent vacant spaces by allowing the letting management team to focus on securing lettings through the implementation of a collaborative and strategic marketing campaign. “It is only when we fully concentrate on letting activities that we know what trends are developing on the rental market and are therefore in a position to draw up guidelines for a sustainable and promising letting campaign”, Kuhnke adds.
“We managed to achieve full occupancy in many properties almost as soon as we assumed management of them.” “It is factors like specialisation and local presence that encourage more and more customers to use the services offered by HIH to meet their real estate needs. Foreign investors in particular who are unfamiliar with German market conditions value our market penetration rate in Germany.” “It is only when we fully concentrate on letting activities that we know what trends are developing on the rental market and are therefore in a position to develop a sustainable and promising letting campaign.”
Ken Kuhnke, Head of Letting Management,
HIH Real Estate
