How to successfully rent out commercial and office space despite coronavirus and working from home – an interview.

Reading the news, you would think that demand for commercial space must be very low at the moment. Is this assumption wrong?

Well, one man’s sorrow is another man’s joy. Of course, more commercial and office space is currently coming onto the market and many companies are taking the opportunity to consider a change. Be it larger or smaller properties, an improvement in location, a more prestigious property, new infrastructure requirements due to a change in business model or increased demands due to growth – there are also sectors that are doing consistently well or are even benefiting from the current situation. So there is currently movement in the market and, despite falling demand, the chances of a market-oriented property being rented again are intact. Of course, you always have to do a bit more than with apartments that are available to rent again, which are selling like hotcakes, especially here in the greater Zurich area, but it’s worth the effort.

What do you mean by a market-oriented property?

This is where we see our main task as a Real Estate service provider and professional manager: to take the owners of commercial premises by the hand and adapt their offer to the market. Because what was true just a few years ago is no longer necessarily true today. Former stores have become architectural offices, production halls have become event locations and unmanaged train stations have become shopping zones. The change does not always have to be on this scale, but it is certainly crucial to take a closer look at the potential of the property and the potential target groups and to bring this into harmony.

You seem to have succeeded in doing this several times recently. Congratulations on that. But now the question: How exactly?

Thank you (laughs). There are various factors that have to go hand in hand for a property to be let successfully. This certainly includes knowledge of the market and the ability to recognize the potential of a property and see how this potential can be exploited profitably. Thanks to our database of potential tenants, Ginesta Immobilien’s 75 years of experience in the region and the invaluable network that has developed as a result, we know what companies looking for a new office or commercial space want. Thanks to our many relationships with architects with preliminary projects, we can show them what is possible in a property that may not seem ideal at first glance. We then use our negotiating skills to bring our management client together with the potential tenant and create deals that are optimal for both parties. Who will pay which conversion costs and how long should the contract run for? This goes into great detail and requires structural, financial and human skills that only a team like ours can handle. After all, the best solutions are always found in collaboration with my esteemed colleagues.

And what about the luck factor?

(Laughs again) Gotcha! In the case of a recently let property, this was indeed an important factor that should not be overlooked. It was a beautiful listed property that our future tenant had been looking for for a long time without success and was therefore able to decide on the offer quickly. Of course, that’s always nice for us too. But as I said, it would be unprofessional and negligent to expect this. As landlords, we have a duty and responsibility to our customers to find a suitable solution wherever possible.

Thank you for the interesting conversation.

* Deborah Pinelli is a federally certified real estate manager and has been working at Ginesta Bewirtschaftung in Küsnacht for five years. She manages a diverse real estate Portfolio of residential and commercial properties.