DEMIRE successfully concludes new lease agreements for former Deutsche Telekom space in Bad Kreuznach
Frankfurt/Main, 26. July 2016 – Frankfurt/Main, July 26, 2016 – DEMIRE Deutsche Mittelstand Real Estate AG has successfully repositioned an office property in Bad Kreuznach by leasing it to the city’s administration. The property had been previously leased, in its entirety, by Deutsche Telekom.
The commercial property located in the city centre of Bad Kreuznach consists of roughly 7,800 square metres of lettable space and had a vacancy rate of approx. 47 % at the time DEMIRE purchased it as part of a portfolio transaction in early 2015.
New lease agreements with Bad Kreuznach’s city administration concluded in the fourth quarter of 2015 had already more than halved the property’s vacancy rate. Additional leases concluded in the current fiscal year, some of which will not take effect until the turn of the year 2016/2017, will reduce the vacancy rate by more than 80 . At the same time, contractual annual leases have increased by 77 and will amount to roughly EURk 430 starting in 2017.
Markus Drews, a DEMIRE Executive Board member responsible for the operating business commented: “The Bad Kreuznach property’s excellent location and floor plan are ideal for the city administration’s needs. Several agencies such as the registration office, administrative authority and family registry office are now located at the property”.
The Executive Board