JNKM Optimization for Berlin Multi-Family Buildings

Why JNKM is the key value driver in Berlin

Net cold rent (JNKM) is one of the primary valuation drivers for multi-family buildings. It determines multiples, financing terms and buyer demand. Even small improvements can significantly increase asset value – if executed legally and strategically.

Many optimization measures overlap with energy upgrades, ESG strategies and Milieuschutz compliance. A structured CAPEX plan is essential.

1. Reducing vacancy – the strongest immediate lever

• Quick refurbishment to avoid long vacancy
• Legal, market-aligned re-letting
• Optimized first letting after upgrades

2. Improving rental structure without violating law

• Index-linked leases for new tenants
• Modernisation surcharges for eligible upgrades
• Precise unit size documentation
• Transparent operating cost structure

3. Optimizing commercial units

• Tenant creditworthiness
• Lease terms and renewal options
• Commercial mix
• Market-aligned adjustments

4. Reducing operating expenses

• Heating and energy optimization
• Efficient lighting
• Reviewing service contracts
• Insurance optimization

5. JNKM as a multiplier driver in the exit

Stable, documented JNKM leads to:

• higher valuation multiples
• faster sales
• greater demand from professional buyers
• better financing

Next step

Use our indicative valuation tool to model rental income, CAPEX effects and regulatory constraints – and determine realistic JNKM potential.