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Time-Based Usage Contracts

Avatar: Atelier Anachron Atelier Anachron

What should be created?
Usage futures contracts to increase occupancy density and profitability in the portfolio: In order to achieve the net-zero target and relieve the pressure on the housing market, instruments are needed that effectively activate the existing building and land stock. The proposed pilot project aims to develop such an instrument: usage futures contracts that systematically increase occupancy density and enable mobility in existing buildings – without new construction and without displacement. Usage futures contracts are time-defined, use-based agreements that regulate the right to use a residential or office space for a fixed period of time and provide options for adaptation, reduction or exchange in the event of changes in life or work phases. It is expressly not the building or the land that is traded, but the use over time. The instrument is thus clearly distinguished from speculative financial products and is used exclusively for the efficient organisation of existing space. From a financial point of view, use futures contracts enable a separation of net asset value and use value. While the structural stock remains stable in the long term, the use is organized and evaluated over time. This creates incentives to release or reassign space in the event of underoccupancy instead of blocking it permanently. The result is higher occupancy of residential and office space, an extension of the useful life of the portfolio and a significant reduction in grey emissions. There will be a financial upgrade of the existing building compared to the new building. Financial security is increased on the user side, in which it is possible to better influence return flows and the investments made in own funds. Owners benefit from better predictability, and flexibly adaptable models are conceivable. The pilot project aims to test and further develop this instrument under political and social supervision so that it is suitable for the private sector market as a non-speculative, ESG-compliant product. Institutional actors from the financial and insurance industries can contribute as development partners by testing stable, usage-based financing models over the long term. The City of Zurich is taking on a moderating role to evaluate the impact, acceptance and scalability of the instrument and thus make a transferable contribution to increasing occupancy density in existing buildings.
example
Are you an individual or part of a group?
We are a company (e.g. start-up, SME)
Name
Atelier Anachron KLG
Are you implementing the idea alone or are you still looking for comrades-in-arms?
I/we are still looking for comrades-in-arms
Describe the place(s)
Project perimeter, Binz district, City of Zurich
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