The Management Contract, a real lever for real estate performance

Contract management is revolutionizing real estate management. More than just an alternative to traditional leases, it is an agile contractual model designed to reduce risks, increase asset value, and ensure transparency in relationships between landlords, operators, and customers.

Let's take a look at how it works and why it is becoming a major strategic issue for owners of commercial real estate in France.

Understanding contract management and how it works

Contract management is a legal contract that formalizes the collaboration between a property owner and an operator, also known as an Operating Partner. The lessor retains ownership of the property, while the operator—such as Deskeo—is responsible for its design, implementation, marketing, and day-to-day management.

This approach is based on a clear contractual structure, where each stakeholder knows their role, obligations, and performance factors.

Unlike a traditional 3/6/9 lease, where the rent is fixed and the obligations are shared between the parties, contract management is based on variable remuneration indexed to performance. The owner retains control of their property, while entrusting an expert operator with the task of optimizing its financial return and operational management.

This contractual approach is part of a contract lifecycle management approach, from signing to execution and monitoring of results. Each stage is structured, measured, and analyzed using digital tools and regular financial reporting.

Why contract management is a strategic issue

In a context of transformation in the real estate sector, marked by rapid digitalization and new uses of workspaces, contract management addresses several strategic issues:

Reducing rental vacancies;

• Optimizing the financial performance of an asset;
• Ensuring legal compliance in management;
• Sharing risks between the contracting parties;
• Structuring governance and the contractual relationship over time.

This method is based on a solid foundation: a well-defined risk management process, clear organization, and contract execution monitored by expert teams.

Each contractual document becomes a lever for action: it sets objectives, commitments, and expected results, while ensuring legal and financial traceability.

Who is contract management for?

Real estate contract management is for all owners and companies looking to optimize the management of their assets:

• Institutional investors, real estate companies, or family offices seeking better cash flow, better cost control, and a sustainable return on investment.
• Owners of vacant properties who want to market their buildings to the entire market and are looking to reduce financial risk.
• Real estate developers who need an operating solution as soon as their project is delivered, without relying on a traditional lease.

Thanks to Deskeo's contract management, each real estate project becomes a structured mission: an analysis, an objective, performance indicators, and clear contractual monitoring.

Why this approach appeals to market players

Faced with changes in the service sector, marked by:

• an increase in rental vacancies,
• new expectations from companies (flexibility, services, design, sustainability),
• the need for professional contract management and risk control,
• Increased market share for serviced offices

Contract management is establishing itself as the operating solution of today and tomorrow.

It offers a measurable return on investment and a clear division of responsibilities between the owner and the operator. This collaborative approach is similar to a long-term partnership, where each stakeholder shares a common goal: to create sustainable value.

What a management contract with Deskeo includes

In concrete terms, the management contract revolves around three main tasks that we can take care of on behalf of the owner:

• Design & Construction: Design, branding, construction work. You benefit from the expertise of our in-house teams to transform your spaces into modern living spaces that are suited to the market.
• Marketing: occupancy strategy via our direct sales force and our network of intermediaries. Objective: to minimize rental vacancies.
• Overall operational management: reception, services, maintenance, reporting, with a real focus on cost optimization and user loyalty. You focus on the essentials, we manage the rest.

All this in a transparent model, with:

• Variable remuneration indexed to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) or turnover (for F&B activities),
• An open-book investment budget, co-constructed and adjusted with you,
• Precise monitoring based on four variables: turnover time, rent per square meter, average commitment period, and marketing strategy.

Where usage meets performance

In real estate, contract management involves entrusting the operation and operational management of an asset to an operator, with a clear objective: to maximize its value.

This involves more than simply managing a building or a contract; it means overseeing the entire operation of the asset: construction and development, marketing, day-to-day operational management, user retention, and cost optimization, with continuous monitoring of performance and legal issues.

In practice, this approach makes it possible to:

• Ensure the legal and financial compliance of each contract, in close collaboration with the legal department and asset managers;
• Ensure compliance with contractual obligations: service level, maintenance, occupancy rate, reporting, or environmental commitments;
• Control operating risks related to costs, vacancy, or energy performance;
• And align the economic results of the property with the owner's objectives, thanks to real-time monitoring of key indicators (gross operating income, occupancy rates, customer satisfaction).

At Deskeo, this approach translates into integrated end-to-end management: our design, operational, and contractual teams work together to ensure the proper execution of the contract, optimize the profitability of the property, and guarantee quality of service to occupants.

Our flagship contract management projects

Tour Aurore, La Défense

As part of a partnership with a European private equity fund, Deskeo was called upon to rethink the service experience at the Pavillon (meeting center and coffee shop) in the famous Tour Aurore, in the heart of La Défense. We were involved in the design, creation, and management of a business center and urban coffee shop. Our role was twofold: to create more value for a historic asset and to turn it into an attractive destination, adapted to new market uses. Thanks to our expertise in development, marketing, and operations, combined with a user-centered hospitality approach, the Tour Aurore quickly found a unique place in its market.

👉 Discover the Tour Aurore project

Grande Arche, La Défense

In the heart of the La Défense business district, Deskeo operates several spaces and coordinates services within the Grande Arche, an iconic location in western Paris: an iconic address, symbolizing modernity and professional excellence. Covering 3,000 m², the spaces are divided into several private areas to accommodate meetings of all sizes. With an auditorium, plaza, meeting rooms, and offices, the Grande Arche offers a unique setting designed to combine efficiency, comfort, and conviviality. Bright, open spaces conducive to collaboration, discussion, and high-impact corporate events.

👉 Discover the Grande Arche project

Tour Horizons, Boulogne-Billancourt (92)

For more than two years, Deskeo and a listed real estate company have been combining their expertise to reinvent office real estate through hybrid concepts, combining the flexibility of an operated service with the stability of a traditional lease.

Following the success of projects at 35 Opéra and 32 Haussmann, the latest development project is the Tour Horizons in Boulogne-Billancourt. This exciting project involves the transformation of a 1,800 m² space for 200 employees, combining expertise and innovation to meet the new expectations of companies in terms of office real estate.

👉 Discover the Tour Horizons project

Jadin Monceau, Paris 17

A national institutional owner has entrusted us with the management and operation of several flexible workspaces, entirely designed and operated under contract management. One of them is located at 9 rue Jadin, a stone's throw from Parc Monceau. This distinctive location offers more than 2,000 m² of private offices nestled in a Haussmann-style mansion, combining old-world elegance with contemporary comfort.

👉 Discover the Jadin Monceau project

In conclusion: a model with a high return on investment

As you can see, companies' expectations are changing rapidly, and this has an immediate impact on the office market. Contract management is a unique opportunity to turn these changes into performance drivers: greater value, fewer vacancies, and operation entrusted to a trusted partner.

Do you have a vacant building or space? Contact us: we will work with you to assess the potential of your property and how to transform it into a profitable and sustainable project.