Tattersall Lorenz Immobilienmanagement GmbH states in its white paper “Manage to Core – Further Developing Properties from Existing Stock” that persistent vacancy in existing properties requires a more comprehensive approach than merely intensifying marketing efforts. The publication, prepared for EXPO REAL 2026, advocates for a closer integration of letting strategies and investment planning. These should be consistently oriented towards the technical and economic development of the respective building. The goal is a gradual stabilisation of properties that show an increased need for action.
Within this approach, property management coordinates the implementation of on-site measures, while the overarching strategic investment goals continue to be defined by the owners and asset management. Susanne Tattersall, Managing Partner of Tattersall Lorenz Immobilienmanagement GmbH, emphasises that vacancy continues to increase in many markets. She highlights that owners, asset managers, and property managers must jointly develop solutions to achieve optimal lettability of vacant spaces in a challenging environment. Merely increasing the reach of offers is no longer sufficient; instead, there must be more intensive work with the spaces and their potential.
Root Cause Analysis and Strategic Prioritisation
The basis of every effective strategy is a precise analysis of the causes of vacancy. These can include, for example, unsuitable floor plans, outdated technical equipment, or a disproportion between rental price and the quality of space offered. A reliable letting strategy, as outlined in the white paper, must therefore consider the overall property and its market positioning. If structural or technical deficits are identified, these findings must be directly integrated into investment and action planning.
The prioritisation of investments is based on the contribution a measure makes to the previously defined target state of the building. Not every sensible measure is equally economically viable or necessary at the same time. Modernisations of vacant spaces should be aligned with actual demand. If technical systems are due for renewal anyway, a joint examination of possibilities for energy improvement is recommended. A tenant fit-out can be used to link technical adjustments with long-term tenant retention. ESG goals are to be understood as an integral part of the technical and economic property development. This includes identifying high-consumption systems and linking improvements with already planned investments. Similarly, deficits in the data basis must be recognised, and appropriate measures scheduled, with a transparent action plan recommended for the gradual development of the building.
Operational Control and Measurability of Progress
Parallel to reducing existing vacancies, the support of current tenants is important. Early discussions about contract extensions and changed space requirements can prevent new vacancies from arising. The stabilisation of a property must therefore not exclusively focus on currently vacant spaces.
Property management plays an enhanced operational steering role in this process. Through continuous tenant contact, insights into cost structures, and the technical condition of a building, needs for action can be identified early. The task is to translate strategic guidelines into concrete measures and to oversee their implementation, without assuming the role of asset management. The “Manage to Core” approach does not aim to elevate every building to a uniform core standard regardless of its prerequisites. The potential of the respective property and the economic viability of the measures are decisive. Progress is reviewed using parameters such as the vacancy rate, completed lease extensions, and the reduction of technical risks, meaning that “Manage to Core” is conceived as an ongoing management process.
