UsedThe federal government has been paying around 2.5 million euros per year since June 2017 for the rent of an empty office building in Bruges, according to figures obtained by MP Franky Demon (CD&V) from the Secretary of State for the Buildings Agency, Mathieu Michel.
The Region manages a large property portfolio, including offices where civil servants work. Some buildings are owned by the Region, others are rented.
In Bruges, the Finance Centre, which occupied 19,325 m2, has been empty since June 2017. However, it is still being rented for an amount of around 2.5 million euros each year, or 15 million euros since 2018.
“At a time when Europe is threatening us with proceedings for our high deficit, this is not optimal,” Mr Demon noted.
The rental contract continues until the end of September 2028. The MR Secretary of State recommends negotiating with the owner for an early termination of the agreement. The MP is advocating for a new use of the building in the meantime.
In total, 1.43% of the total surface area of buildings managed by the Régie and used as administrative space is empty, according to the Secretary of State. This proportion is in line with the standard applied to private real estate managers. Due to a change in software, the Régie was unable to provide a comparison with previous years.
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Belgian Government Pays Millions for Empty Bruges Office Building
UsedThe federal government has been paying around 2.5 million euros per year since June 2017 for the rental of an empty office building in Bruges, according to figures obtained by MP Franky Demon (CD&V) from the Secretary of State for the Buildings Agency, Mathieu Michel.
The Region manages a large property portfolio, including offices where civil servants work. Some buildings are its property, others are rented.
In Bruges, the Finance Centre, which occupied 19,325 m2, has been empty since June 2017. However, it is still rented for an amount of around 2.5 million euros each year, or 15 million euros since 2018.
“At a time when Europe is threatening us with proceedings for our high deficit, this is not optimal,” Mr Demon noted.
The rental contract still runs until the end of September 2028. According to the MR Secretary of State, it is necessary to negotiate with the owner for an early termination of the agreement. The MP is arguing for a new use of the building in the meantime.
In total, 1.43% of the total surface area of the buildings managed by the Régie and used as administrative space is empty, according to the Secretary of State. A proportion in line with the standard applied to private real estate managers. Due to a change in software, the Régie was unable to provide a comparison with previous years.
Empty Buildings: A Common Problem
The issue of empty buildings is not unique to Belgium. Governments and organizations around the world grapple with the challenges of managing and repurposing vacant properties.
There are various reasons why buildings become vacant. These can include:
- Economic downturn
- Shifting demographics
- Changes in technology
- Insufficient maintenance
- Lack of investment
Empty buildings can pose significant challenges:
- Loss of tax revenue
- Decreased property values
- Urban blight
- Safety concerns
However, there are also opportunities associated with empty buildings:
- Potential for redevelopment
- Creation of new jobs
- Improved aesthetics
- Increased economic activity
Repurposing Empty Buildings
Governments and organizations can take various measures to address the issue of empty buildings, including:
- Incentives for redevelopment
- Tax breaks for renovations
- Streamlined permitting processes
- Public-private partnerships
- Community engagement
The case of the empty office building in Bruges highlights the importance of responsible property management and efficient utilization of resources. As governments and organizations strive to address budgetary constraints and optimize public spending, repurposing empty buildings should be a key consideration.
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