Early Renewal of a Lease in Babelsberg

As the owner of an office portfolio in Potsdam, our focus is currently increasingly on stability, planning certainty, and active risk management. In a market environment characterized by high interest rates, low transaction activity, and falling purchase prices, long-term, secure leases are becoming increasingly important.

A recent example is the early renewal of a commercial lease for a single-tenant building in Babelsberg.

Operational life secured through 2035

The existing lease agreement with a public-sector tenant was originally set to expire in 2030. As part of the loan agreement extension, the lease term was extended early to 2035 following constructive discussions.
This provided planning certainty at an early stage and significantly reduced the risk of a potential vacancy of approximately 1,650 m².

Rent Reduction as a Deliberate Risk Decision

Part of the agreement was a rent reduction of approximately 12 percent. While this step has a short-term impact on income, it was deliberately weighed against the potential risk of vacancy in a few years. From the perspective of a sustainable portfolio strategy, the focus was not on maximizing short-term rent but on the long-term stability of the property.

Active Asset Management Means Weighing the Options

The contract extension demonstrates that active asset management requires timely decisions, especially in a challenging market environment. Opportunities and risks must be weighed against one another, and viable solutions must be developed in collaboration with tenants.

The early extension through 2035 creates a more reliable foundation for the property in Babelsberg while also reducing significant leasing risks in the office portfolio.