Letting Performance of Commerz Real Climbs to Five-Year High

Notwithstanding the tight situation on the commercial real estate market, Commerz Real managed to increase its letting performance by almost 50 percent year-on-year in 2009. In terms of net absorption, it was a banner year that closed with a five-year high. Overall, nearly 600,000 sqm in office, retail, and logistics space were let on long-term leases to renowned companies of superior creditworthiness in 2009.

“The high-end quality of property and location that defines our real estate helps us not just to realise an excellent re-letting performance. Existing leases are often renewed prematurely because our tenants simply feel comfortable in our properties and wish to secure their extended residence ahead of time,” said Hans-Joachim Kühl, Member of Commerz Real’ Management Board and – among other responsibilities – in charge of real estate asset management.

The most prominent transactions of 2009 include two leases signed in Amsterdam for the ”hausInvest europa” open-ended real estate fund. In one case, the lease of an international law office for a space of about 12,500 sqm was extended through 2019. In the other case, a company active in the chemical industry secured a lease renewal through June 2017.

Successful letting transactions on behalf of the “hausInvest global” fund included a total space of roughly 13,000 sqm at the Charles Square property in Prague. In addition to the tobacco company Philip Morris, which extended its lease prematurely through January 2015, the corporate consulting firm Ernst & Young renewed the lease for its Czech headquarters through June 2013.

In the segment of closed-end real estate funds attractive agreements were signed for the East Building in New York City, for instance. Here, the total space let approximated 11,000 sqm as a major law firm extended its lease through the end of 2022, while a financial service provider signed a lease through January 2021.

“Before the background of this outstanding take-up, we were able to report high occupancy rates for either of the hausInvest funds at the end of 2009. The rate for “hausInvest global” stood at 97 percent, that for “hausInvest europa” at about 96 percent. Given the current market circumstances, this is certainly very good news,” Kühl commented.