Value add retail real estate

In value-add real estate investments, various ways to increase property value are explored. Below are some examples of value additions in which 2FN Real Estate specializes:

1. Retail spaces with vacant upper floors: In the past, adding a staircase to a retail space was often more expensive (in terms of rental value) than the potential revenue from leasing the upper floors. However, the real estate market has significantly changed in this regard in recent years. Ground floor rental prices have decreased, while rental rates for upper floors have increased. As a result, leasing out upper floors has become more attractive again. This shift presents an excellent opportunity to unlock the untapped potential of these buildings and create attractive, livable spaces.
2. Commercial spaces with low energy ratings: In the commercial real estate sector, buildings with low energy ratings often struggle to secure financing. This reluctance results in higher returns for investors since they need to provide more equity. A smart investment strategy, however, lies in upgrading these properties to higher energy ratings. This approach maintains high returns while also making the property more future-proof.
3. Real estate with undeveloped/unused land and unutilized zoning potential: Zoning plans determine what is and isn’t allowed on a given plot. 2FN Real Estate often finds that a property’s potential usage can be optimized by finding a tenant who fully utilizes its zoning possibilities. Additionally, many zoning plans allow for building expansions, creating extra leasable square meters and increasing the property’s overall value.