Is The Office Investment Business Plan Being Disrupted?
Caleb Parker
CEO at Brave Corp | Maximizing Office Asset Values | Repositioning Office Real Estate | Award-Winning Podcast Host | Subscribe to my newsletter/podcast at the link below????
?A CRE masterclass with CapMan’s COO
If you invest in office real estate you’re going to want to listen to this one twice.
There are moments in history where paradigms shift and cause massive disruption. For most, it's chaos.
?? But some people see the opportunity ahead and skate where the puck is heading.
In this episode I’m joined by Ilkka Tomperi, Partner & Chief Operating Officer for Nordic asset management and investment company CapMan Real Estate, which is publicly listed on the Nasdaq in Helsinki, Finland.
Tap below for this?EPISODE 4, or head over to your podcast app for download
Ilkka and I are both alumni of the Real Innovation Academy and have been following each other closely over the last couple years on Twitter and LinkedIn.
I was excited to finally meet him in person for the first time at MIPIM and record this podcast together.
In this episode Ilkka and I talk about CapMan’s value added strategy, and how they are approaching the growing gap between supply and demand in office real estate, including investments to repurpose assets to bring them up to sustainable standards.
We discuss Finland’s multi-tenant flexible lease structures and how the market values income not locked into long-term leases. The valuation community in Finland has a different perspective and doesn't necessarily count on guaranteed future income.
In addition to office, CapMan also invest in the hotel asset class, so I was curious to hear Ilkka’s perspective on the hotel analogy as we create the future of the office, and whether that will impact cap rates and the office investing business plan.
Ilkka goes on to talk about a project that merges hotel and office quite literally, which I found very interesting.
Reminds of this video by Sam Gamble on what offices can learn from hotels.
So what do you think?
Will the future of office real estate look like the hotel industry?
If you have any questions or feedback on this episode, email?[email protected]
Value Bombs
"The office market is changing extremely rapidly at the moment." - Ilkka
"I believe the future of Office Real estate is what the hotel industry looks like today" - Caleb
"For us that means that we are in principle mostly a value add investor. And repositioning assets is actually very much in our heart." - Ilkka
"If we don't invest in these retrofits, in bringing these assets up to speed, they will become stranded assets. And that becomes a liability." - Caleb
"You may have in a building a couple of tenants with three five year leases and then some others with 12 month notice periods. So that brings the weighted average lease length down in a building." - Ilkka
"I think that the lines between the asset classes are blurring a little." - Ilkka
Timestamps:?
[01.49] Why Ilkka wanted to attend MIPIM
领英推荐
[03.41] How Capman are facing the changes happening in real estate
[5.22] Lease structures in Finland
[08.22] Can historical data be used to predict cash flow?
[09.33] Will the future of offices look like hotels?
[10.41] Capman’s recent deal in Stockholm
[12.27] Examples of office and hotel assets being combined
[13.31] Smaller and larger companies working together to lease space
[14.33] The best markets for global investors?
[18.06] Core capital and investors
[18.41] Where different investor profiles are concentrating
Resources:
Shout Outs:
About Ilkka Tomperi
Ilkka Tomperi is Partner & COO at CapMan Real Estate, a leading Nordic private asset and investment manager based in Helsinki, Finland with an active approach to value creation.
Ilkka is an experienced international investment professional and leader with a demonstrated history of working in various roles in the commercial real estate industry. He has a background in portfolio management investments, M&A, capital markets, private equity, real estate, and ESG.
He is also a Professor of Practice (Real Estate Investment) at Aalto University.
Sponsors
Headline Sponsor: DeltaQ
DeltaQ?is a pan-European Prop-tech company that is financially backed by the European Commission in the fight towards net-zero of the built-environment, headquartered in Brussels, with offices also in London and Paris. They help asset managers, landlords, and occupiers reduce their carbon emissions by installing AI that learns and predicts the behavior of the building, and in turn acts like a virtual operator, optimizing the HVAC controls in real-time using advanced algorithms. CO2 and energy savings are contractually guaranteed based on their model.?
Their technology to date has been successfully deployed on commercial real estate assets (500+ buildings), but they are now applying this technology across all non-residential assets as of 2023. They have expanded their product range to support physical and digital diagnosis tools to ensure that the availability of data is as closely aligned with the physical state of the building.?
Fortune Favours the Bold
Bold merges property management & Space-as-a-Service to help office customers grow faster and drive asset value. Bold is a real estate brand owned and operated by NewFlex (www.workbold.co)?
Future Proof Your Portfolio with NewFlex
NewFlex delivers and manages a range of branded solutions for every type of building, in every type of location, for every type of occupier. Including the flexibility to develop your own brand. All enabled by flexible management contracts where we are invested in making money for you. (www.newflex.com)
Launch Your Own Podcast
A Podcast Company?is the leading podcast production and strategic content company for brands, organisations, institutions, individuals, and entrepreneurs. Our team sets you up with the right strategy, equipment, training, guidance and content to ensure you sound amazing while speaking to your niche audience and networking with your perfect clients. Get in touch?[email protected]