KanAm Grund Group again significantly increases total letting performance

In 2024, the KanAm Grund Group leased or extended existing leases for more than 133,000 square meters of space for an annual rent of over EUR 47 million. The letting performance of the two previous years of around 66,000 square meters of space in 2022 and around 90,000 square meters of space in 2023 was thus significantly increased. In terms of new leases, the KanAm Grund Group was even able to lease twice as many square meters in 2024 as in the previous year. The figure for 2023 was just under 30,000 square meters of space, compared with just under 60,000 square meters in 2024. A total of around 54 leases were concluded in the period under review, of which almost 70 percent were for office use.           

The figures show that demand for office properties remains strong even in a changed market environment - including new working environments and the switch between working in the office and working from home. The result also shows that the KanAm Grund Group's modern office properties in good to very good locations are still in demand on the rental market.

Broadly diversified letting successes in Germany and Europe     
The letting successes in 2024 are spread across 30 properties in seven countries. Of the 133,000 square meters of space let in 2024, properties located in Germany accounted for the largest share of the letting success in terms of space with over 70,000 square meters, followed by properties in the United Kingdom and France with over 28,000 square meters and just under 23,000 square meters respectively. There were also successful lettings in Belgium, Luxembourg, the Netherlands and Poland.
In addition, rental income increased significantly at some of the KanAm Grund Group's properties in 2024. Rents increased by 20 percent, and in some cases by as much as 33 percent.

Targeted asset management activities and local presence in key markets pay off    
Targeted asset management activities continue to form the basis for sustainable letting successes with potential for rent increases. Last year, the KanAm Grund Group again implemented refurbishment measures for selected properties in accordance with strict sustainability criteria in order to increase their energy efficiency, among other things.    
The optimization of the property portfolio with a focus on sustainability and modernization helps to make the individual properties even more attractive to tenants and to stand out from the competition. It also increases the prospect of rising rental income.     
The KanAm Grund Group's local presence in various locations in Germany and Europe - such as Paris, London and Madrid - plays a key role both in the implementation of asset management activities and in letting processes. This is where extensive knowledge of the local real estate market, current demand for properties, trends and market conditions pays off. A personal network and local contacts are further advantages.

Olivier Catusse, Managing Partner and CEO of the KanAm Grund Group, says: “The office asset class has not yet fully recovered and is still undergoing a transformation process. However, high-quality properties in central locations with good connections continue to experience strong demand coupled with low supply and offer corresponding potential for rent increases. For example, rents on the Munich office market for these properties have risen to over EUR 60 per square meter. In Paris, too, the limit of EUR 1,200 per square meter (annual rent) has now been exceeded. With our broadly diversified office property portfolio, we are well positioned for the long term and can flexibly meet the requirements of our tenants. This is reflected not least in the increasing letting successes in recent years. Through targeted asset management and repositioning measures as well as sustainability activities, we aim to further increase the attractiveness of individual properties for tenants and buyers. We are developing appropriate investment strategies to meet the need for repositioning and have already identified selective investment opportunities that we intend to implement for our investors this year.”