Das Karriere-Portal der TGISC Das Karriere-Portal der TGISC

Innovation for real estate – going under the outer skin layer.

Welcome to the real estate portal.

Our consulting cluster real estate includes the following asset classes: office, housing, entertainment, shopping and logistics.

 

How to achieve complete occupancy in 16 months in a 50,000 square meter office building with a 60% vacancy rate, a reduction of investment costs by 20% and an increase in the rent of 9,80 Euro to 16,80 Euro, how to triple and exceed the value of a property, how to make a B-location into an A-location with top prices and how to make shopping centers that are declared dead toa trendsetter. And how to increase the willingness to pay for a housing project by 61% or receive municipal approvals that were seemingly impossible to get.

This and more in our real estate portal.

In global comparison Germany is still considered a safe haven for real estate investments. This shows for instance in the growth of transaction volumes on the real estate investment market which is predicted also for 2012. The reasons are the stable institutional general setting on the market, for instance compared to other regions throughout Europe and the stable social settings which provide the necessary forecast safety investors and developers need for big investments. The growing scarcity of space in inner city areas is another reason for the strong turnover rates on the market. For 2012 the prices for premium locations will probably grow as well as the relevant readiness to pay higher prices.

 

However the times when it was relatively easy to sell or rent out real estate per se are definitely over. Especially marketing to end users today is a major challenge. Considering the structural vacancies in big German cities, the failures of previous real estate planning are evident in the example of commercial estates. For too long, people have planned and decided based on figures that did not reflect the market realities.

 

This can be seen in the work of our peers who frequently do not rate the strategic necessities in line with the market in their consulting portfolios if they are at all committed to the real estate cluster which is so important for the national economy. Of course the requirements of institutional standards have to be considered in the development guidelines. These are not the central requirements defining the core processes. As in other market segments, for instance in the consumer goods industry, even if this comparison might seem strange on first sight, the user of the real estate has to be the central focal point of the planning for future-proof developments. A healthy portfolio of strategic assets rises and falls with the strength of each of its estates.

 

More about office facilities.

Big German cities have giant excess capacities in this market segment. In the German capital, the vacancy level of office facilities has been approaching the 2-million square meter mark for some time now.

 

While real estate managers and brokers who for these vacancies frequently rely on the steadfastness of standardized marketing activities, we concentrate on the margin-increasing development of new future-oriented facilities. However both problem fields face the same unsolved challenges. The analysis of business processes and the optimization of upkeep costs and space performance corresponds to the Modus Vivendi of a good standard but hardly creates market-strategic benefits.

 

THOMSEN GROUP International Strategy Consultants, in short TGISC® has frequently shown in projects on this segment that sustainable development or refurbishment strategies need more than just a predictable database and smart slogans on marketing posters. Next to the quality of the physical object status, the degree of networking and embedding in the real conditions of the location might lead to market-adequate rating of the chances. Real estate survives changing times. Real estates exist over decades and have to be able to „handle“ changing user conditions, resulting from processes of social changes. Taking this fact into account illustrates the necessity of aligning to estate-specific FutureAssets® as the foundation of holistic development success.

 

This has happened in a big city in the German region of North-Rhine Westphalia. Where brokers did not scare away from even the least sub-rental offer for a commercial estate which was of healthily substance but set in a difficult sub-market in order to realize the best deal, the potential of this object became obvious only after analysis of the real local conditions. They might have been obvious but were not recognized as their relevance was underrated. The market-strategic consideration with contents of a development concept that was able to determine the factual relevance of the object regardless of the user, and focused on obvious market demands, embedded and networked in the general setting of the location provided the estate with sustainable success on the market. This was realized under elimination of the local competition and the rental price margins they had defined. The object exceeded these standards by 30%. Today, real estate is sold through contents , and this has effects on all other process-relevant parameters, for instance their price as described above. The system of TGISC® promises further efficiency options, not only for this sales channel.

 

More about housing estates.

The segment living faces similar challenges as the commercial estate segment. Permanently, new institutional requirements are raised, for instance to the security of Green-Standards of estates, and they limit the radius of activity between these structural „Must-Do’s“. This does not keep estate developers from realizing of new projects, and that’s a good thing. In inner city development areas, and in particular in the big cities, the fights for the last remaining empty pieces of land are brutal. Frequently however the fact that there is pressure of demand in the segment living on many regional markets is the sole reliable guideline for development and marketing of the developed estates. The problem is: the claims of development and the later real use are at opposite ends of the line. A product developed for a certain market price segment has to satisfy the requirements of the users that ahead were specified as sales segment.

 

This means the requirement profiles of these target segments have to be evaluated ahead in detail. It might seem a matter of fact – but it is a giant challenge considering the continuously shattering lifestyle segments. Our LiveResearch® continuously shows us that private housing today is considered the „third skin“ of people. It is an important tool of their lifestyle definitions. It takes over the function of demonstrating the individual being. This starts long before the actual interior design and furnishing, it starts with the planning of the size of apartments and the ground plans of apartments. The design of the entire ensemble and the design of the direct vicinity and the available facilities have to be adjusted to the real needs of the target client groups.

 

How much mobility do they need, how many parking lots are required for realization? How large is their action radius to satisfy the daily demands, for free-time, and which additional mobility offers should be promised? How important is an intact neighborhood? Will opportunities for direct communication between tenants or owners of apartments in bigger estates be a mandatory requirement? The real estate concepts of TGISC®, which have been sharpened continuously over the last 30 years through all sorts of projects on the real estate market helps answering these questions prior to realization of the project, and is an inevitable component of planning listening to the end user –after all he is the market. Market-strategic process support does not end when the architecture is realized, it ends when what was begun as a project is filled with real life. Obviously, price design and marketing strategy have to be in line with the general concept and the end user has to find aspects of his own lifestyle world in them. TGISC® has the view sharpened for all these factors.

More about retail and leisure estates.

The future of leisure is in the inner cities. Commercial and non-commercial offers will be interwoven more tightly. Today, city tourism without shopping program is no longer an option. Vice versa people want to top successful shopping day with leisure activities, for instance they want to see a movie in an Imax-cinema to crown a beautiful day in the city. In this context we speak of the conversion of inner city offers. As shown in the consumer portal, the centers have to open out towards their direct vicinity, at least in the inner cities – the location of the future.

 

If the multilayered characteristics, the identity of the city and the own logics of its everyday life are considered and used as assets in the development process, the center will benefit. This includes sensible handling of the history of the city, its culture from which city identity grows as a central wheel in the drive of urban life. The center must not polarize the city.

 

For the adjacent inner city retail stores, holistic integral development of a city center opens new chances. People assume that retail stores in grown urban shopping areas will b swallowed by centers, but the opposite is true. A study on a wide database shows that the rent levels are positively affected when a center is opened.

 

TGISC® has a lot of expertise with this manifold process, which begins with the aforementioned evaluation of chances of “embedding” in the cultural context of the location and ends with sales designs that satisfy modern consumer requirements. In the best case, it knows how to use the specifics of the local culture of future consumers.

 

More information on consumer issues and retail estates is available from our consumer portal.

 

More information about logistics estates.

Logistics have future. This is supported by the current trend of the entire industry. The growth rate of the sales volumes from 2009 auf 2010 was a lush 9%. Although in 2011 it was „only“ 5% this is Germany’s third-biggest economic sector and one of the biggest drivers of the domestic national product. This is finally reflected in the development of the market for logistics estates which realized record sales volumes in Germany in 2011.

 

What are the FutureAssets® of the logistics industry? Hardly any other industry has to handle the impact of institutional requirements and the bargaining interests of pressure groups as directly as this one. Key words environment and in particular the environmental legislation. The European Committee wants to lower traffic-caused emissions by 60% until 2050. Considering the fact that the cargo transport volumes are going to grow rapidly as the long tail of the Internet, this is a Black Box. Key word scarcity of resources: again by 2050, the share of operative means based on alternative energies applied to cargo transports will not be much higher than the share of conventional energies. Even the best process optimizer won’t have an answer to this problem. The reduction of dead-head-rates he might realize is no more than spitting into the fire. The use of continuous internal optimization as for instance the potential “de-stressing” loosening of „just-in-time“-policies is not disputed, but it is not the future-proof solution for this industry.

 

Not to mention the changing customer requirements in changing regional markets. Changing global dynamics, visible for instance in the rapid growth of strong consumer layers in the middle classes of emerging countries create new unknown logistics hot spots, central turntables of regional growth with centralized warehouses. By 2050, there will be up to 15 new cities with more than 15 million residents each. The strategic selection of the best location and the options of multimodal connectivity will be the most important factors. The role of real estate should not be underestimated. System solutions have to be reproducible all over the world. They don’t have to fulfill efficiency criteria only in the operative processes. They also have to fulfill growing requirements of environmental friendliness. They also have to show enormous flexibilization potentials to withstand territorial market shifts, and provide outdoor land reserves. Considering the aforementioned changes in the industry, with telematic-based self-control, the demand for outdoor land reserves will grow. Not lastly a successful logistics estate has to offer options for re-use after its time is over. Work on your individual FutureAssets®, together with TGISC® for your success. We are looking forward to you.

 

References

Of course, all clients enjoy maximum confidentiality with us. Many prefer even more protection which extends to stating the client’s name. We are, of course, happy to take account of this request. Therefore, below you will find some selected statements of our clients. References.

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