Office Transformation: Insights from an Online Press Conference

Expanding floor area pays off

The majority of office buildings in existence today were built before 2000. Anna Lena Stoephasius, a member of the management team at architectural practice AUKETT + HEESE, says: “Buildings that are thirty years old or more not only tend to have rigid floor plans, but also, for example, outdated building services – i.e. inefficient heating, ventilation and cooling systems with high energy consumption and no demand-based control. The aim of a comprehensive refurbishment is to align space efficiency, user comfort and ESG compliance,” Stoephasius adds.

The Berlin refurbishment project “Karlsgärten”, developed by CA Immo and dating from the 1990s, illustrates how this approach works in practice: the design by AUKETT + HEESE focuses on retaining the structural shell as a key lever to reduce embodied carbon, combined with targeted interventions such as adding additional storeys in a timber hybrid construction, activating roof areas and providing private balconies on every floor. These measures create an additional 2,700 square metres of lettable space – a clear commercial uplift.

“The greatest challenge in transforming existing buildings from the 1990s is converting rigid structures into flexible, sustainable workplaces,” explains Sebastian Nau, a member of the management team at AUKETT+HEESE. “Our approach combines maximum retention of the existing fabric with carefully targeted interventions to the structure and façade, in order to redefine both the technical and spatial qualities.”

Project developer CELLS is pursuing the same strategy with the Hamburg refurbishment project “Am Holstenwall”. Almost the entire building structure has been retained. A substantial amount of terrace space creates high-quality areas to spend time, which are also publicly accessible. The building’s lettable area – after standing vacant for twelve years – increased from 8,150 square metres by more than 40 per cent to 11,700 square metres. Jan Trenn, CEO of CELLS, says: “Expanding lettable area is the biggest lever for the commercial viability of office refurbishments. In most cases, modernisation alone is not economically viable.” The project’s success is reflected in an occupancy rate of 83 per cent already one year before completion. The ensemble is due for completion in Q2 2026. The use concept provides for a mix of offices, food & beverage and fitness.

Mixed-use concepts and services support changing demand

The shift from mono-functional office buildings to mixed-use properties – as seen at “Am Holstenwall” – is a key lever for future-proof projects. European real estate company Covivio, for example, is pursuing a strategy of opening up traditional office assets at the Düsseldorf project “ICON by Covivio”. By integrating food & beverage, service offerings and complementary uses, the iconic listed 1970s building is being transformed into a multi-use concept that is more closely aligned with occupier needs and strengthens the asset’s long-term marketability.

Katharina Greis, COO Offices at Covivio Deutschland, says: “For us, multi-use concepts are not an add-on, but a core component of modern office developments. With our hospitality approach, we deliberately transfer service and stay qualities from the hotel sector to office properties – for example through concierge services, digital services or curated shared areas. This ensures our space is consistently aligned with occupier needs and remains competitive over the long term.”

Repositioning as a response to changing market conditions

However, not every asset can be stabilised economically through floor area expansion or multi-use concepts alone. Particularly for large-scale developments, conventional office propositions are increasingly reaching their limits.

Ingo Lindner, Managing Director of FAY Projects, illustrates this using the Stuttgart project “CANNION”, originally conceived as a traditional office scheme: “We had to recognise that, under current market conditions, office space of this scale can no longer be placed as originally planned. The decisive step was to rigorously challenge the concept and realign it.”

The project, with around 27,000 square metres of above-ground gross floor area, is therefore being repositioned as part of the development process. Instead of a mono-functional office use, FAY is implementing a mix of offices, hotel, food & beverage and fitness. The concept is complemented by long-stay offerings, responding in particular to rising demand for flexible living and working formats.

Repurposing and restructuring are gaining importance

Approaches go even further where office buildings are fully removed from their original use. In particular, where there is structural vacancy or assets are no longer marketable, repurposing to alternative uses is moving into focus.

Jens Fieber, Managing Director of HIH Projektentwicklung (HPE), says:
“Not every office property has a future as an office. But many buildings have qualities that make them very well suited to other uses, such as education.” In Hanover, HPE is pursuing corresponding approaches. On the listed former HANOMAG site, a school is being developed on more than 16,000 square metres, converting a former office building. CELLS is also demonstrating how a transformation into a school campus with capacity for several thousand pupils can succeed, by converting the former headquarters of Deutsche Börse in Frankfurt am Main – the “Lateral Towers” with 46,000 square metres of lettable area – into a complex with three schools. The final construction phase will be handed over to the City of Frankfurt at the end of May.

At the same time, the restructuring of stalled developments is gaining in importance – particularly where projects, as a result of changed market conditions, complex financing structures and insufficient pre-letting, need to be rethought as distressed assets. One example is the KORYFEUM project in Unterschleißheim near Munich, where HPE has taken on the restructuring mandate. Together with HIH’s asset management team, the original overall concept is being recalibrated and vacant space in the office buildings already delivered is being let. Contrary to the original plans, the as-yet undeveloped plots will no longer be completed with additional office buildings, but with alternative uses, for example from the light industrial segment.