Gradually the high-rise in Frankfurt with the name “Omniturm” its final shape. The glass façade is mounted in the lower floors. The shell has reached its final height of 190 metres and has become a new defining Element of the Skyline of Frankfurt. Directly behind the Japan centre, with its characteristic mansard roof he is now, the tower with its slightly offset to the axis in the center – have what is referred to some as the “hip movement”.

recently, the Commerzbank subsidiary Commerz Real has purchased the property with 45 floors and more than 54,000 square meters of floor space, for its open-ended real estate Fund Hausinvest. The price of Commerz reveals-Real-Executive Board member Andreas Muschter. He is likely to have been high.

But Muschter is for sure: In such a Top are layers of high-rise buildings, especially with a mixed-use retail, gastronomy, offices and apartments, a good long-term business. The Fund company is concerned, even to the landlord – and, above all, what are the offices, it is clear: The future users will have to change some old habits.

the WORLD: Mr. Muschter, in good locations, it is becoming harder and harder to find renditeträchtge real estate for a Fund such as the house, invest. Because you are no different than many private landlords. The purchase prices are increased further, the rental income, and accordingly, the yield decreases. Nevertheless, you have acquired in the past few months a lot of expensive properties in Prime locations.

Andreas Muschter: is Expensive relatively. Whether a property is “tax”, as you say, depends on many factors. We have invested since the beginning of the year about one billion Euro and can live with the associated risks very well.

the WORLD: a year Ago you said that in Germany there is actually no interesting objects to a price less than the 25 times the annual rent. What is clear, is no longer economically viable. Their latest acquisitions are cheaper?

Muschter, at the Time I had said that against the Background of the Sony-Center-Deals. The complex at the Potsdamer Platz was sold in 2017, for around one billion euros, which represents according to our estimates, more than 30 times the annual rent – a very high price, and thus far outside the range in which we acquire for the House investment and other funds. The is also true still. When you factor in the 25 circuit is usually. More and more we pay not only willing and able to, if we are convinced that sustained yield through active asset management. Fortunately, objects come on the market, which is profitable in the long term – and to such a long-term perspective, it is us.

the WORLD: What objects are they?

Muschter: Recently, we have acquired, for example, in the Munich Westend business Park Visio, with a floor space of 58,000 square meters. In Stuttgart, the Uhland Carré with 51.600 square meters of space in the city centre – with the Alliance as the main tenant. I see such objects, no reason to worry about the long-term revenue perspective, to Worry, since we are likely to create in the management of significant value. In the end, our investors an attractive Net Operation Income current net revenues and a stable, or in the ideal case, rising real estate value. In particular, institutional investors such as insurance companies need to be able to fulfil their commitments. This is in the case of investments, such as the aforementioned is the case.

the WORLD: And then it doesn’t matter how much you paid?

Muschter: of Course not. The biggest mistake you can still make the purchase. It is important to find the right Assets and the market to properly assess. The economic environment in the Top locations are still very positive, demographics, and the expected tenant demand are intact, the interest rates low for the time being.

the WORLD: Recently, Commerz Real also in the height. 2020 is scheduled to be completed in the Frankfurt Senckenberg headquarters of the 140 – Meter-high residential and hotel tower One, Forty West and 2023 in Vienna, the 175-metre-high Danube City Tower. And recently, they have bought the Omniturm in Frankfurt from Tishman Speyer, 190 meters high. In the middle of the price boom is now so high-rise buildings. This sounds a bit like hubris.

Muschter: but it is not. We hold for more than 30 years of high-rise buildings in the portfolio. New the mixed-use concept is in the high-rise projects. Neither is pure offices pure luxury, residential towers, which makes of the development in a single segment of the market. The Omniturm, for example, has a very successful mix of retail and restaurants in the lower floors – there is a very lively town property. We have offices, a Hotel and apartments. The area efficiency in the case of such high-rise buildings is very high. Apart from that, the Omniturm is also architecturally a great project, I’m thrilled.

the WORLD: And? Are you stuck at the purchase price under the 25-brand?

Muschter: no, we were not able to. If we make in asset management, together with Tishman Speyer but all right, we have a Chance to get there.

the WORLD: keyword: surface efficiency: such As the offices in a modern building, such as the Omniturm?

Muschter: We arrive at the latest with such projects in the age of ‘New Work’ to work the new way. The attractiveness of an employer depends on how the jobs are configured, it provides the employees. We want to create with the Omniturm an office object that makes it any employer easily, High Potencials to recruit. We speak in this context of “Joy of Use” – the joy and in the use of our land. Of course, the space efficiency is an essential factor. The fixed office workstation for each employee is in the past. We will have in the Omnitower a sophisticated office concept, with different areas of work, which can be used by all: meeting rooms, Desk workstations, Lounges, Creative Spaces. The bottom line is there will be significantly fewer jobs than employees.

the WORLD: many of the office tenants a rate of 80 percent is customary to ten employees, eight fixed seats.

Muschter: In the future, this ratio will go down even further. I think that is the right, for several reasons. In a modern service konnektives is A Work intensive exchange with colleagues, interdiziplinäres and flexible Working is much more important than was previously the case. The tasks are complex, and without a constant exchange of a lot of momentum is lost. Collaboration is for the success of a company. Add to this that if you are sitting for many years, always in the same place, the ability for a change in perspective – this has been proven by work psychologists. In addition, far too many office jobs are in many of the buildings still empty a week on average, usually around 30 percent. This is not layers in the expensive city centre, only uneconomical, but also basically unnecessary areas and thus consumption of resources.

the WORLD: office-owners, it is likely that less environmental protection than the rate of return, or?

Muschter: True, but in this case, or both together. This is not, however, as I said, everything. The claims change. Commuters who have to travel because of the high demand for apartments in Metropolitan areas are always more ways to have a growing interest in one or two days home office per week. Also this saves time and resources. In downtown locations, however, the average apartment size per capita is smaller again, here it is for the employees then often interesting, if you find in the office is also an additional living space, well-designed living areas, terraces. A Fitness Area. Gastronomy.

the WORLD: but only at the expense of desktops.

Muschter: so what? As I said, many of the tables are already empty. A prerequisite for flexible jobs, a strict discipline, absolute Clean-Desk Policy, however, is. A Desk in the evening to be so emptied out that he can in the morning be of other colleagues. Thus, a certain degree of cultural change is, of course, connected. Intelligent workplace Management. And, above all, the end of unnecessary piles of paper. Anyone who works with a lot of Material, it must bring in the closet.

the WORLD: in Spite of New Work objects, such as the Omniturm but now are once very expensive. They have no fear that the market could also develop down again?

Muschter: We are in the case of any acquisition, be extremely careful and take into account in our calculation is also always negative developments in the market. If it rates a moderate price decline should come, we are prepared. At the Moment, but it’s not looking for happiness then. The Japan-Center in Frankfurt, we sold, for example, recently for 50 million euros on our reviews.

the WORLD: What is with rising interest rates in the United States? It makes you not Worry that the capital might flow, and less in European real estate markets?

Muschter: Also, I see a few signs. The Fed has raised interest rates already, and the real estate prices remain relatively stable. The European Central Bank change their monetary policy, but very leisurely, and, first of all, by a return of the bond to purchases. In fact, the hard facts, which could justify a price drop are still missing.