Through ongoing communication with the industry, our sales team know the current situation and developments in office real estate. We asked Benno Loerwald, Key Account Manager for the Office application, where the market is heading and what this means for lighting.

Boom or bubble: how is the German office real estate market doing?

The office rental market in Germany is currently very challenging. Due to the ESG requirements for real estate, many project developers and asset managers are in the process of analyzing the refurbishment potential of their properties so that they do not become stranded assets. Certification standards for offices, particularly concerning sustainability and well-being, are consequently growing in importance.


What does this mean for our lighting solutions?

In discussions, customers inquire about the specific contributions our office lighting solutions make to meet the desired certifications such as high efficiency and the use of sustainable product designs and materials. Our luminaires have a lot to offer here.


Does the traditional office still have a future?

Definitely. However, there’s a consensus within the industry that hybrid work concepts will shape the future. With the office competing against alternative workspaces, it must become much more appealing to ensure regular employee use.

So, an additional task is to enhance these rooms aesthetically?

Indeed. There’s a growing trend towards using more accentuating and atmospheric lighting solutions in office projects. Additionally, our customer interactions are also changing. Whereas in the past we often discussed product details with the people responsible for the technology, today we hold large discussions with workplace and well-being consultants and the works council on topics such as sustainability and well-being. Overall, companies need to be aware that even the most attractive office spaces won't help if the basic work culture doesn't fit in with "New Work".

What implications do the new requirements have for real estate developers?

We are seeing a clear trend towards ever smaller, but higher quality office space. Instead of "single tenant" properties, which are only geared towards one large tenant, several smaller tenants are sharing an office building (multi-tenant), with a shorter lease term. This is prompting real estate developers to look for more flexible lighting solutions that can also meet the requirements of new potential tenants.

From individual workstations to collaboration areas to transitional zones: A holistic lighting concept ensures customized, high-quality illumination and an inviting ambience throughout.

And we have the right solutions?

Exactly. Our range includes mobile luminaires (free-standing or table luminaires), track systems or our new flexible YONOS system, which we will be presenting for the first time at Light + Building in Frankfurt, which are all suitable. Thanks to its modular design, new lighting scenarios can be flexibly implemented by exchanging the modules if the office space changes use or if there is a change of tenant.

Digitalization - how smart will office buildings be in the future?

As smart as possible. We discuss a wide range of options with our customers on how lighting can become a digital infrastructure point in the building across all trades. The problem here is that, on the one hand, intelligent buildings that automatically adjust to people's needs are desired. On the other hand, the issue of "data protection" is taken very seriously in Germany. In this area of conflict, we will continue to develop customized solutions for an exciting market in the future. It is important that smart building solutions also bring real added value to the relevant stakeholders.