The client had a portfolio of properties with a very low occupancy rate. Net operating income was too low, as individual properties in the portfolio were significantly dragging down the occupancy rate. The total vacancy rate was 25% above the benchmark.
How could the occupancy rate be increased overall, when individual properties were significantly dragging down the rate? At the same time, the condition of certain units were not up to market standards.
|Increase the occupancy rate||Renovation||Reduction of costs|
DEAS set up a task force who divided the portfolio into smaller units with individual strategies in order to increase occupancy. At the same time, selected properties were renovated and upgraded. Finally, all the processes were reviewed at property level with a view to optimisation, whereby the costs were reduced.
The result was a portfolio that now performs better than the market standard/benchmark. The vacancy rate has been reduced by 63.6% over five quarters. The improved occupancy rate has created a total growth in the portfolio of 0.5 percentage points.