This document discusses the sharing economy's potential impact on the German real estate industry. It first provides historical context on sharing and examines companies like Airbnb that disrupted the hospitality sector. It then evaluates the current state of the German real estate market, explores different sharing economy business models, and recommends strategies for real estate developers to engage with or benefit from the sharing economy, such as co-working and co-living spaces. The document concludes that the sharing economy presents numerous opportunities for the real estate industry if developers actively monitor trends and customer needs.

1. Sharing economy: Opportunity or threat
for the German real estate industry?
Jürgen Notz

2. Table of contents
2Sharing economy: Opportunity or threat for the German real estate industry?
1. Introduction
2. Current state of the
German real estate industry
3. Understanding the sharing
economy
4. Strategies to cope with the sharing economy
5. Recommendations
6. Q & A
05/29/18
Jürgen Notz

3. Sharing economy is not a new form of doing business:
throughout history, people have pooled their resources
1864
GERMANY
Community gardens
3
1. Introduction – The past
Sharing economy: Opportunity or threat for the German real estate industry?
(Credite Suisse 2015, p. 8)
05/29/18
Jürgen Notz

4. 1909
ISRAEL
Kibbutzim
4
1. Introduction – The past
Sharing economy: Opportunity or threat for the German real estate industry?
(Credite Suisse 2015, p. 9)
05/29/18
Jürgen Notz
Sharing economy is not a new form of doing business,
throughout history people pooled their resources

5. Sharing economy is not a new form of doing business,
throughout history people pooled their resources
1930
USA
Rural electrical cooperatives
5
1. Introduction – The past
Sharing economy: Opportunity or threat for the German real estate industry?
(Credite Suisse 2015, p. 8)
05/29/18
Jürgen Notz

6. Airbnb grew to one of the worldwide biggest overnight
accommodations and strongly disrupted the real estate sector
6
1. Introduction – The presence
Sharing economy: Opportunity or threat for the German real estate industry?
(Economist 2017)
05/29/18
Jürgen Notz
(Airbnb 2018)
Airbnb
• Airbnb radically changed
the real estate and
hospitality sector
• By using sharing
economy principles,
Airbnb grew fast to a
valuation of 31 billion $

7. Six questions are used to investigate the research question
• What is the current state of the German real estate industry?
• What are the business models of the sharing economy?
• How can the sharing economy be implemented?
• Which strategies should be used?
• What are future scenarios?
• What are the key success factors?
7
1. Introduction – Research questions
Sharing economy: Opportunity or threat for the German real estate industry?
05/29/18
Jürgen Notz
Is the sharing economy an opportunity or threat for the German real
estate industry?

8. The real estate industry is influenced by several main external
factors
8
2. Current state of the German real estate industry
Sharing economy: Opportunity or threat for the German real estate industry?
05/29/18
Jürgen Notz
Political • Low interest rates
• Brexit and influx of refugees
Economical • Strong economic growth
• High investment rates
Social • Socio-cultural change
Technological • Digitalization
Ecological • Climate change
• Necessity of sustainability
Legal • Highly regulated and bureaucratic
laws
• Attractive place for investment
The sector is in a very good shape and the market conditions are positive,
however, several (future) challenges exist

9. Real estate developers should regard several key success
factors to stay competitive
9
2. Current state of the German real estate industry
Sharing economy: Opportunity or threat for the German real estate industry?
05/29/18
Jürgen Notz
General
• Third use ability
• Usage of new technology
• Reduction of life cycle costs
• Reduction of costs
• Horizontal integration
• Reduction of transaction costs
Costs and income
Office + residential space
• Scarcity of space
• Solutions for new work patterns
• Demographic change
Strategy
• Strategies for cyclicity
• Strategic alliances
• Short and long term strategies

10. Participation in the sharing economy can be achieved by
implementing at least one of three basic concepts
Key insights:
• Selling the service, not
the product
• Digitalization + Platform
• Use of scalability
• Analysis of data
• Hundreds of possible
business models
10
3. Understanding the sharing economy
Sharing economy: Opportunity or threat for the German real estate industry?
Co-Ideate
Co-Fund
Co-Build
Co-Distribute
Co-Market
Co-Sell
Co-Revenue Share
Rent
Subscribe
Resell
Co-Op
Swap
Lend
Gift
PROVIDE A
PLATFORM
MOTIVATE A
MARKETPLACE
COMPANY
AS A SERVICE
SERVICEMARKETPLACE
PRODUCTS
SHARING
ECONOMY
3 1
2
05/29/18
Jürgen Notz
(Owyang et al. 2013, p. 10)

11. Different strategies can be followed to integrate sharing
models and participate in the sharing economy value chain
Options to participate in
the value chain
• Co-working
• Co-living
• Service platforms
• Financing solutions
• Blockchain technology
• Trust and reputation
• Strategic alliances
• After sales – company as a
service
• … and many more
11
4. Strategies to cope with the sharing economy
Sharing economy: Opportunity or threat for the German real estate industry?
05/29/18
Jürgen Notz
Framework to react to the sharing
economy
Derives from (Mouazan 2013, p. 23)

12. Examples of co-working: Design offices and WeWork
12
4. Strategies to cope with the sharing economy
Sharing economy: Opportunity or threat for the German real estate industry?
(Design Offices 2018)
05/29/18
Jürgen Notz
(Design Offices 2018)
(WeWork 2018)

13. Examples of co-housing: BMW Mini Living
13
4. Strategies to cope with the sharing economy
Sharing economy: Opportunity or threat for the German real estate industry?
05/29/18
Jürgen Notz
(BMW 2017)
(BMW 2017)
(BMW 2017)

14. Two scenarios predict different future developments of the
residential and office sector
14
4. Strategies to cope with the sharing economy
Sharing economy: Opportunity or threat for the German real estate industry?
05/29/18
Jürgen Notz
Own presentation, derives from (Deloitte 2017, p. 4)
Scenarios
• The office sector shows a high
degree of disruptive potential
and a high market
attractiveness
• In the residential sector the
sharing economy trend remains
a niche, however the market
stays attractive as well
Real estate developers have to constantly assess market demand and how
the sharing economy impacts their business concepts

15. 10 key success factors can be identified to profit from the
sharing economy
1. Create shareable products and business lines
2. Be a buyer, not just a seller
3. Identify key customer demands
4. Network to enforce sharing activities outside of the real estate sector
5. Improve trust, as it is the most important currency in the sharing economy
6. Monitor disruptive tendencies and watch out for scalable trends
7. Use technology and analyse customer data to add value
8. Monitor transaction costs
9. Agility and speed matters
10. Think out of the box
15
6. Recommendations
Sharing economy: Opportunity or threat for the German real estate industry?
05/29/18
Jürgen Notz
The sharing economy is not one big opportunity, it contains numerous
ones, however there are exist minor threats for the real estate industry

16. Bibliography
16Sharing economy: Opportunity or threat for the German real estate industry?
05/29/18
Jürgen Notz
Bibliography
Airbnb, 2018. Airbnb’s economic impact on the NYC community. Available at: https://blog.atairbnb.com/airbnbs-economic-
impact-nyc-community/%0D%0A [Accessed May 20, 2018].
BMW, 2017. MINI creates the world’s first MINI LIVING building in Shanghai. Available at:
http://www.bmwblog.com/2017/11/20/mini-creates-worlds-first-mini-living-building-shanghai/ [Accessed
May 20, 2018].
Credite Suisse, 2015. The sharing economy - New opportunities, new questions. Global Investor 2.15. Available at:
https://www.credit-suisse.com/media/assets/corporate/docs/news-and-
expertise/articles/2016/07/global-investor-2-15-en.pdf [Accessed March 18, 2018].
Deloitte, 2017. The future of commercial real estate in Europe. Available at:
https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/real-estate/deloitte-nl-real-estate-the-
future-of-commercial-real-estate-in-europe.pdf [Accessed February 15, 2018].
Design Offices, 2018. Design Offices - München Arnulfpark. Available at: https://www.designoffices.de/standorte/muenchen-
arnulfpark/ [Accessed May 25, 2018].
Economist, 2017. Among private tech firms, Airbnb has pursued a distinct strategy. Available at:
https://www.economist.com/business/2017/05/27/among-private-tech-firms-airbnb-has-pursued-a-
distinct-strategy [Accessed May 26, 2018].
JLL, 2017. Coworking’s unstoppable market growth. Available at: http://www.us.jll.com/united-states/en-
us/research/property/office/coworking-market-growth [Accessed April 25, 2018].
Mouazan, E., 2013. Sharing corps - Should companies build a new competitive advantage by embracing the sharing economy?
Available at: http://www.ecovala.eu/wp-content/uploads/2014/02/sharingeconomy-finalreport2013.pdf
[Accessed February 16, 2018].
Owyang, J., Tran, C. & Silva, C., 2013. The collaborative economy: A market definition report. Altimeter Group. Available at:
http://www.web-strategist.com/blog/research/ [Accessed March 23, 2018].
Wework, 2018. Wework - Jackson Square. Available at: https://www.wework.com/buildings/jackson-square--sf-bay-area--CA
[Accessed May 23, 2018].