Montibus Asset Management
Olaf Claessen, Montibus Asset Management
Olaf Claessen is the Managing Partner & co-founder of Montibus Asset Management.
The German office market in the first quarter of 2025 sent an important signal to investors: of the total of €7.9 billion in commercial transactions, around €2 billion was attributable to the office sector. This is a share of 24 %, close to the long-term 30 % level of previous years. It is clear that institutional capital is returning to quality space in a targeted manner, thereby reliably creating value even in a more volatile environment.
At the same time, the user side is picking up: 728,100 m² of office space was taken up in the Big 7 metropolises - up 14 per cent on Q1 2024 and the best opening quarter since 2022. At the same time, only 7.3 million square metres were immediately available in the Big 7 cities, which corresponds to a moderate vacancy rate of 7.4 per cent. This shortage is driving prime rents: Frankfurt marked EUR 51 per square metre, Berlin EUR 46.00 and Munich set a new all-time high of EUR 58.
Existing properties as a key resource
In view of this demand and rental pressure, the focus is shifting to the existing office property stock as the market's biggest treasure trove. The average building is usually several decades old, structurally robust but outdated in terms of energy efficiency - a starting point that can save up to 30 % on operating costs thanks to modern technology. Repositioning shortens construction times, saves CO₂ budgets and creates precisely the quality of experience that hybrid working demands.
This is because international workplace studies such as Gensler's Global Workplace Survey 2025 show that Human interaction and a strong sense of community are considered the main motives for returning to the office worldwide. Talented people prefer workplaces that offer a sense of community and are at the cutting edge of technology. Developers are responding with holistic campus concepts that combine catering, sport, culture, mobility and data-driven services.
Montibus Asset Management
Highlight Towers in Munich
Focus on repositioning
Case studies illustrate the extent to which this strategy pays off: Munich's Highlight Towers from 2004, designed by Murphy/Jahn Architects, were given an AI-supported energy management system as well as additional catering and sports areas. 7,200 square metres let even before the work was completed is clear proof that campus qualities generate demand.
The Omegahaus in Offenbach, built in 1994, is being transformed into an Efficiency House 55 neighbourhood with a façade upgrade, photovoltaics, a daycare centre and a conference centre. It thus combines top energy values with a wide range of uses.
At The Verse at Munich Central Station, the repositioning already took effect during the shell construction. Instead of a single-tenant approach, a multi-functional neighbourhood is now being created that relies on LEED Platinum certification, modular and recyclable materials and a padel court on the roof; financing has been secured until 2027. The Verse thus demonstrates that repositioning not only brings existing buildings to life, but can also flexibly align projects to new market requirements during the construction phase.
Increasing value by conserving resources
The frequently quoted formula of ‘maximising value while minimising resource consumption’ takes shape through these examples. In the case of Highlight Towers and Omegahaus, the supporting structure and large parts of the building envelope are retained, while The Verse relies on material and energy-optimised systems right from the start.
The use of resources is noticeably reduced, the carbon footprint shrinks significantly and investor capital flows in stages: Each expansion stage is only released when pre-lettings guarantee predictable income. Lower pre-financing and interest charges meet rising market values resulting from higher rents, longer useful lives and a demonstrably better carbon footprint - a combination that makes returns particularly robust in a tight market.
ESG compliance meets yield security
In view of stable prime yields in the German core markets, scarce ESG-compliant space and rising prime rents, the question is not so much whether to invest, but where the hidden champions are located. Those who identify them now and consistently transform them in campus mode will secure pole position for the next growth cycle - regardless of whether the building has already made history or is changing course before its hour of birth.