Vacancy, from problem to opportunity

Vacant real estate is a growing problem in the Netherlands. Office buildings, retail spaces, and other buildings sometimes stand empty for years, leading to deterioration, vandalism, and even squatting. At the same time, the Netherlands is struggling with a severe housing shortage, with various target groups unable to access affordable housing.

The transformation of vacant properties into temporary housing is an efficient way to tackle both vacancy and housing shortages. The process begins with a thorough analysis of the property and its potential. Plans for meaningful repurposing are then developed in collaboration with municipalities and owners. Patrick Dillen of Monoma, a company specializing in the management of vacant real estate, focuses primarily on office buildings. “Offices are automatically suitable for transformation,” he explains. “A vacant office is often a headache for the owner. It costs money and entails all kinds of risks. By temporarily transforming a vacant property, we limit the risks and guarantee that the property retains its value.”

Monoma offers property owners two options: either they supervise the entire transformation process, or they rent the spaces themselves, then transform them and rent them out temporarily. “With the latter option, we take the economic risk,” says Dillen. “Sometimes we rent directly from the owner, sometimes after making small investments such as improving fire safety.”

Transparency as the key to success

According to Dillen, transparency is crucial in this process. “Let's be open: what financing is available for the building, what investments do we need to make to transform it into housing, what is the return on investment, and what can we pay back to the owner? Discussions often take place in a three-way meeting, because all parties feel comfortable with this approach.”

Not every vacant property is suitable for transformation. “If, for example, changes need to be made to fire safety or the living environment that are not financially viable, we explain this to the municipality,” says Dillen. It is precisely this honesty and transparency that ensures support from all parties involved.

“We see little benefit in having a single target group in a residential complex. The strength of such a building lies in its community.”

The Magic Mix of residents

A distinctive element in Monoma's approach is what they call the “Magic Mix”: different target groups are deliberately mixed in a residential complex. "For example, we place emergency seekers and the economically homeless, but also young people and students. We see in our daily management activities that these target groups help each other. That strengthens cohesion. We don't see much point in putting a target group in a residential complex. Instead, we encourage a sense of community by organizing activities around their interests; that is the strength of such a building."

Challenges in a complex playing field are complex

The current housing market presents Monoma with challenges. “The political playing field is complex,” Dillen acknowledges. “Municipalities are struggling enormously with their budgets. Every target group currently has an urgent housing need: young people cannot find a home, neither can students, nor status holders. But neither can the transition group, who want to take the next step from smaller homes.”

Monoma focuses primarily on students and young people. “That is where our strength lies, also with our management and the people we employ,” says Dillen. But he emphasizes: “We are very broad. From small issues to project management and total project transformation, and if desired, we can also participate in an investment. That total picture is exceptional in the Netherlands.”

Squatting is back

An urgent problem for property owners is the increasing risk of squatting. “Due to market tensions and the housing shortage, squatting has once again become an important issue in the West,” says Dillen. According to Dillen, this cannot simply be attributed to wrong choices. “There are elements that play a role: economic reasons, politics, rising interest rates, government decisions. But I think we should not forget that there are things we can work on: a better distribution of household composition.”

Social impact

One of Monoma's showpieces is a project on Plotterweg in Amersfoort. “There, migrant workers, young people in crucial professions such as police, nursing, and firefighting, disadvantaged groups, and status holders have all been given a place,” Dillen says proudly. "It's a unique project where people find each other and move on. There is even someone who was homeless for almost 15 years and is now employed by us as a caretaker.“

Dillen is confident about the future. ”We are seeing enormous growth in demand because the costs of land, construction, and interest rates continue to rise. To keep housing affordable, you will have to build differently: smaller spaces with large communal facilities such as a gym, living room, or cinema."

“The circular nature of our organization is important,” Dillen concludes. “We identify vacant properties and then look for a solution focused on initial occupancy through the organic growth of the immediate environment. Instead of working in a profit-driven way, we look at the problem: which target group needs housing and which environment can benefit from it? Of course, risks must be covered, but with a social impact.”

This article was previously published in the Real Estate & Construction section of the Financial Daily:

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