Abstract

Bachelor thesis 15 credits, Construction and Real Estate Business Programme, Halmstad university

Authors: Anton Månsson, David Andersson

Supervisor: Gunnar Wramsby

Examiner: Per-Ola Ulvenblad

Purpose & research question: The study investigates the strategies real estate companies employ when faced with high vacancy rates and low profitability. It explores the similarities and differences between the various focus areas of these real estate companies. The study aims to answer the following research questions:

What strategies have real estate companies used to counter higher vacancy rates and lower profitability?

What measures have real estate companies taken to reduce operating costs and improve energy efficiency in their properties?

What risk management strategies have real estate companies used to protect themselves against economic downturns and market volatility?

Method: This study is based on a qualitative research approach, focusing on gaining an in-depth understanding of the strategies real estate companies apply to manage high vacancy rates and reduced profitability. It utilizes six semi-structured interviews from six different real estate companies.

Results: The study reveals that real estate companies address high vacancy rates and reduced profitability by fostering strong tenant relationships, investing in energy efficiency, and adapting strategies to market conditions. By combining proactive measures with flexible risk management and internal preparedness, they can navigate economic downturns and create attractive properties. Strong knowledge of the local market provides a competitive advantage.

Keywords: Commercial real estate, Interest rate, Vacancy rate, Profitability, Yield