I was in Tower 185 of Deka Immobilien Investment in Frankfurt this week. The Urban Land Institute (ULI) had invited its members, together with the Raumagentur, to a discussion about future working environments. ESG criteria and the increasing use of home offices pose challenges for the real estate industry but also open up opportunities for investors who continue to be active in the office asset class.
As I disagree with the blanket dismissal of office real estate, I found the personal exchange with Burkhard Dallosch as Managing Director of Deka Immobilien Investment and Annette Kaiser as the responsible asset manager of Tower 185, particularly interesting. Deka Immobilien Investment is clearly committed to the office asset class as a key market player in the real estate fund business. Almost two-thirds of Deka Immobilien Investment's portfolio consists of office properties. The management has not made a strategic decision to reduce the proportion of office properties in the real estate portfolio. The current market situation in the office market would open up opportunities for strategic acquisitions. Deka's public property funds were also able to escape the negative trend in the sector in 2024. A net inflow of around €350 million was recorded.
All in all, it was another insightful evening. Many thanks to the organizers and my discussion partners.
PS: If you would like to look behind the scenes of Tower 185, I recommend a documentary in the ARD media library in which Deka Asset Manager Annette Kaiser and employees of the Raumagentur are involved.
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