KanAm Grund Group again significantly increases total letting performance

In 2024, KanAm Grund Group successfully leased over 133,000 square meters of rental space, generating annual rents exceeding 47 million euros, or extended existing leases. This marks a substantial increase from the leasing figures of approximately 66,000 square meters in 2022 and around 90,000 square meters in 2023. In terms of new leases, KanAm Grund Group was able to lease twice as many square meters in 2024 compared to the previous year, with nearly 60,000 square meters leased in 2024 compared to just under 30,000 square meters in 2023. A total of approximately 54 lease agreements were concluded during the period under review, with nearly 70% of these attributed to office space.

Key Figures and Facts at a Glance:

• Demand for office properties remains strong, even in a changing market environment characterized by new working environments and a shift between in-office and remote work.
• The annual leasing results demonstrate that KanAm Grund Group's modern office buildings in prime locations continue to be in demand in the rental market.
• The leasing successes in 2024 are spread across 30 properties in seven countries.
• Of the 133,000 square meters leased in 2024, properties located in Germany accounted for over 70,000 square meters, the largest share of the leasing success, followed by properties in the United Kingdom and France with over 28,000 square meters and nearly 23,000 square meters, respectively.
• For some properties in the KanAm Grund Group portfolio, rental income has significantly increased, with rent hikes of 20 percent, and in some cases even reaching 33 percent.
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Targeted Asset Management Activities Pay Off:

• The basis for sustainable leasing successes with rental growth potential continues to be targeted asset management activities.
• In 2024, the KanAm Grund Group implemented refurbishment measures adhering to strict sustainability criteria for selected properties to enhance their energy efficiency, among other factors.
• Optimizing the real estate portfolio with a focus on sustainability and modernization helps make individual properties more attractive to tenants and competitive in the market, while also increasing the prospects for rising rental income.

Local Presence in Key Markets is Crucial:

• In both implementing asset management activities and leasing processes, the local presence of KanAm Grund Group at various locations in Germany and Europe—such as Paris, London, and Madrid—plays a significant role.
• Comprehensive knowledge of the local real estate market, current property demand, as well as trends and market conditions provides further advantages.
• A personal network and local contacts are additional benefits.

Olivier Catusse, Managing Partner and CEO of KanAm Grund Group, states: “The office asset class has not yet fully recovered and continues to undergo a transformation process. High-quality properties in central locations with good connectivity continue to see strong demand amid limited supply, and they offer corresponding potential for rental increases. For example, rents in the Munich office market for such properties have risen to over 60 euros per square meter. In Paris, the threshold of 1,200 euros per square meter (annual rent) has also been surpassed. With our broadly diversified office real estate portfolio, we are well-positioned for the long term and can flexibly meet our tenants' requirements. This is reflected in the increasing leasing successes of recent years.
Through targeted asset management and repositioning initiatives, as well as sustainability efforts, we aim to further enhance the attractiveness of individual properties for tenants and buyers. For the need for repositioning, we are developing appropriate investment strategies and have already selectively identified investment opportunities that we want to implement for our investors this year.”