Asset managers, property managers, and brokers are often involved in the leasing process at the same time. This can delay processes and lead to vacancies—experts explain what structures are necessary for successful leasing. Professional rental management is crucial to the economic success of real estate. Sufficient and reliable cash flow in the form of rent is a prerequisite for financing. Commercial real estate projects usually do not get off the ground without a high pre-letting rate, and even in rental apartment projects, forward deals without pre-letting are no longer in demand. Asset managers, property managers, and external brokers are involved in the leasing process. If their roles are not clearly defined, this can lead to delayed leasing processes, inconsistent market approach, and vacancies. Four real estate experts discussed the structures required for successful property leasing in an online panel hosted by Rueckerconsult. According to the panel, unclear communication and decision-making structures are a key cause of many conflicts. Too many contact persons, parallel coordination, and a lack of centralized external communication often lead to misunderstandings and delays. Successful leasing projects are characterized by clearly defined roles, fixed contact persons, and coordinated decision-making processes. "Each party involved needs a fixed contact person so that the flow of information does not come to a standstill," explained Martin Schubert, Head of Letting Management Berlin at HIH Real Estate. If there are several contact persons on one side, this can be fatal: not everyone always knows exactly what is going on, and decisions often have to be made on the basis of incomplete information. While asset managers define the strategic guidelines, property managers and brokers are operational letting specialists. Fund and investment managers or the owners themselves are often also involved. "If there is a lack of clear responsibilities and common goals, conflicts can arise – for example, between rapid full letting and long-term sustainable leases," said Schubert. It is particularly important to establish agreement on responsibilities and objectives with all parties involved at the outset of a leasing project. This includes, among other things, determining rent price ranges, terms, investment frameworks, and the handling of incentives such as rent-free periods or fit-out subsidies. According to Jürgen Hau, managing director of Industria Immobilien, the desire for quick leasing in new buildings is often not feasible and not always sensible. "First of all, you don't usually sign a lease with the first interested party immediately after a viewing." Especially in cities that are not prime locations, the leasing effort is much higher. This is also a question of tenant creditworthiness. "We are commissioned with the initial letting of large new construction projects. Here, we often have to let between 100 and 400 units at once," says Sascha Nöske, CEO of Strategis. It is important to be quick, because the client's requirement is that there should be no remaining vacancies by the time construction is completed. The higher-priced rental segment has similarities with the sale of condominiums. According to Nöske, asymmetric leasing must be avoided in new residential construction. This occurs when the rental prices within a larger residential project are not differentiated enough according to the actual qualities of the individual units. The attractive apartments are rented out quickly – but at too low a unit price. "The result is a property that is only partially rented out, with the second half of the units only able to be placed at a discount. The planned profit margin then never materializes," explained the Strategis CEO. According to experts, the goals for residential and commercial rentals are comparable despite different structures: high rental income, low vacancy rates. While the small-scale residential segment is easier to scale in terms of rentals, commercial rentals are more strongly influenced by individual user requirements, space concepts, and long-term strategic considerations. Living in metropolitan areas has been a landlord's market for years, while the commercial sector is transforming into a tenant's market – with significantly longer marketing times. "Our work has become much more consultation-intensive," reported Stephan Wege, Head of Office Letting NRW at the real estate agency Colliers. In the past, it was mainly about pure marketing. "Now we see ourselves more as a sparring partner for the owner," said Wege. It is increasingly a matter of jointly developing strategies, weighing risks, and identifying scenarios. Landlord representation, where owners or asset managers are represented strategically and operationally throughout the entire leasing process, is increasingly in demand. HIH Real Estate leasing manager Schubert added: "The toughest competition for new leases is the leasing of existing commercial properties." Although existing leases do not generate large rent increases, there are no brokerage fees or incentives, and the risk of vacancy and renovation times are lower. Sustainability remains a major issue in rental management. "ESG is at the top of the agenda for large corporations and is here to stay," says Colliers expert Wege with certainty. "The issue of green leases plays a major role for large corporations. For smaller companies, it is more of a secondary concern. There, the focus is on ancillary costs or, for example, e-charging stations." When Industria purchases and places projects, ESG is always an issue. According to Managing Director Hau, the tension then lies in energy purchasing, "because that's how you can make the second rent as attractive as possible." This is a top priority for tenants. In the residential sector, on the other hand, stable and affordable ancillary costs are becoming increasingly important, according to the panelists. Digital rental processes, structured data rooms, and transparent documentation are becoming standard—also to ensure speed and quality in a highly competitive market.

As Germany’s real estate markets adjust to sustained tenant bargaining power, leasing is shedding its long-standing role as a downstream operational task. REFIRE attended a recent panel discussion hosted by RUECKERCONSULT on the interface between asset management and property management. The discussion highlighted how, in both residential and commercial real estate, leasing has become a central risk variable, with direct implications for refinancing, stabilization, and asset value. What emerged was not a simple clash between asset managers and property managers. Instead, the discussion—deftly moderated by Dr. Kathrin Dräger —revealed a market grappling with tighter absorption, more demanding tenants, and a growing need for internal discipline. In that environment, informal processes that once functioned tolerably well are increasingly exposed. One theme ran through almost every contribution: leasing today is less about execution speed and more about managing downside risk. In commercial real estate, that shift has been particularly stark. Martin Schubert, Head of Letting Management Berlin at HIH Real Estate, described how the balance of power has reversed in recent years. Where owners once chose between tenants, they are now competing for attention. "You used to have one space and ten tenants," he said. "In the worst case today, it's ten spaces and one tenant." The consequence is that leasing has become consultative and strategic, requiring far more input on use concepts, tenant needs, and alternative scenarios than in the past. Stefan Wege, Head of Office Letting NRW at Colliers, echoed that assessment. Brokers, he argued, are no longer engaged primarily as marketers, but increasingly as sparring partners. Leasing decisions now involve weighing risks, modeling outcomes, and advising owners on how far to adapt product and pricing to secure demand. The traditional division between marketing and strategy has blurred. Yet if the tenant market has changed the nature of leasing, the panel was equally clear about where processes tend to break down. The most common friction point is not disagreement between asset management and property management in principle, but a lack of clearly defined interfaces in practice. Schubert repeatedly warned against parallel communication structures. When multiple internal and external parties engage tenants without a clear hierarchy, gaps quickly open up. "What is fatal is when several contact persons are involved," he said. "Then things are discussed that others don't know about — and that's where problems start." Technical advice given without economic oversight, for example on fit-out specifications, can quietly undermine a business plan long before the implications are recognized. The consensus was that tenant markets punish such informality. Clear decision rights, a single empowered contact, and early agreement on economic limits are no longer optional. Where governance remains vague, leasing problems tend to metastasize into financial ones. The discussion also challenged another entrenched assumption in the German market: that strong demand, particularly in residential, makes leasing simpler. In practice, the opposite is often true. Sascha Nöske, CEO of STRATEGIS, was blunt in dismissing the idea of “self-running” assets. Even in high-demand locations, large residential schemes require intense operational effort. “With good objects, we run to the property four times before a contract is signed,” he said. “A self-runner where you go in once and come out with a lease — that doesn’t exist.” The real danger lies in pricing strategy. Large, heterogeneous projects require finely calibrated rent differentiation. If early units are let too cheaply, later units can become unmarketable at required levels. "That is total damage," Nöske warned. "You end up with a half-let project and have to discount the rest." From a portfolio perspective, Jürgen Hau, Managing Director of Industria Immobilien, reinforced that complexity does not disappear with scale — it multiplies. First lettings behave very differently depending on location, tenant profile, and expectations. "The wish is always to have a rental contract after one visit," he noted. "But that is often not feasible — especially outside the A cities." For institutional owners operating across regions and vintages, early goal definition and disciplined execution matter more than market momentum. ESG, meanwhile, featured as a moderating rather than dominating force. The panel converged on a pragmatic view: sustainability has not disappeared from leasing decisions, but its influence is increasingly differentiated. For large corporates, ESG criteria are structural and non-negotiable. For smaller tenants and residential renters, cost remains decisive. Nöske observed that tenants ultimately benchmark the gross rent. Environmental features are welcomed, but only where they reduce operating costs or improve reliability. Wege and Schubert similarly noted that ESG can strengthen a letting proposition — but rarely salvages an uncompetitive one. The message was not that ESG is fading, but that it is being priced more realistically. Taken together, the discussion painted a picture of a market learning discipline under pressure. Tenant markets are exposing informal habits and forcing clearer structures around leasing decisions. Asset management and property management are not drifting apart; they are being compelled to align more tightly. Leasing in Germany is no longer a mechanical step between completion and cash flow. It has become a core component of asset risk management. In a tenant market, professionalization is no longer a strategic ambition but a survival trait.