Is The Office Investment Business Plan Being Disrupted?

A CRE masterclass with CapMan’s COO

Quote from Guest: “Property owners can earn higher rents from that space than if they were leasing it traditionally to say one single tenant.” - Ilkka Tomperi

Summary: Ilkka Tomperi, Partner & COO at CapMan Real Estate joins Bold founder Caleb Parker for Episode 4 of Season 9 where they discuss the importance of changing with the times and ensuring assets don’t become liabilities.

In this episode Caleb and Ilkka discuss CapMan’s value added strategy, and how they are approaching the growing gap between supply and demand in office real estate. They also discuss how the world of office and hotel real estate may merge and how this would change the business model.

Connect with Ilkka on LinkedIn

Connect with Caleb on LinkedIn 

If you have any questions or feedback on this episode, email [email protected]

Value Bombs:

I believe the future of Office Real estate is what the hotel industry looks like - 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

The office market is changing extremely rapidly at the moment. - Ilkka

Timestamps: 

[01.49] Why Ilkka wanted to attend MIPIM

[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:

Urban Land Institute

Capman Stockholm Project

Shout outs:

Nor Norms

Real Innovation Academy

Lisette Van Doorn

About Ilkka Tomperi

Ilkka Tomperi is Partner & COO at CapMan Real Estate, a leading Nordic private asset expert with an active approach to value creation.

Ilkka is also a Professor of Practice (Real Estate Investment) at Aalto University.

Connect with Ilkka on Twitter

Sponsors:

Headline Sponsor: DeltaQ

DeltaQ is a Top 3 European PropTech solution for reducing the carbon footprint of the built environment. Operating from the centre of Brussels, they have developed a solution that learns to predict the behaviour of a building (in context of comfort and energy use) and leverages these predictions to automatically steer the energy systems.

DeltaQ improves comfort while maximising energy and CO2 savings and allows operational teams to turn their attention to added value work instead of repetitive tasks and constant finetuning.

When deployed over a large volume of buildings, DeltaQ will deliver an important contribution to realising the world’s ambition in the fight against climate change.

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