Beyond property management, real estate asset managers grow the value of your real estate assets and keep a constant eye on opportunities for you.
While many were shocked at the overnight collapse of the oceanfront condominium in Miami in June this year, the unfortunate incident also brings into spotlight the importance of engaging a credible and professional property manager.
In fact, if you have a large portfolio of real estate assets, it may even be worth engaging the services of a real estate asset manager. An asset manager would have a team of qualified professionals who can manage your properties but can do even more to grow the underlying value of your real estate assets.
So, what exactly is the role of a real estate asset manager?
They help to grow the value of your properties
More diverse than the name suggests, a real estate asset manager oversees multiple facets of your properties, from operations to staffing and training, to leasing and strategic placement. Although the chief role of a real estate asset manager is to ensure that there is a safe environment for all occupiers and visitors of the buildings they manage, daily operations and procedures in a building are not their only focus.
"An asset manager would have a team of qualified professionals who can manage your properties but can do even more to grow the underlying value of your real estate assets."
Apart from the buildings they manage, a qualified real estate asset manager also needs to have a strong handle on the trends across the industry, and even global current affairs. As industries shift and change, there would be a direct impact on tenant demand, occupancy, rental levels, engagement, and ultimately, value.
Such an awareness will help asset managers improve the underlying value of the assets they manage through tenancy management strategies, Asset Enhancement Initiatives (AEIs), implementation of standard operating procedures (SOPs), customer service plans, marketing and vendor controls, among others.
What makes a strong real estate asset manager?
A capable asset manager should have the ability to review, compress and digest information that would have immediate, medium- and long-term implications on the assets they manage. This is crucial for drawing up future maintenance budgets, reviewing leasing tenures and profiles, developing marketing techniques, as well as handling the day-to-day operations of the properties. Essentially, the asset manager becomes an extension of the buildings they manage.
"A capable asset manager should have the ability to review, compress and digest information that would have immediate, medium- and long-term implications on the assets they manage."
On the day-to-day operations, competent real estate asset managers also ensure that the buildings are managed with efficient and globally recognised SOPs. These include procedures to manage customer service matters, vendors, contractors, projects, leasing mandates, general operations and staffing, among others. The managers would also need to carefully manage both revenue and operating expenditure through proper budgeting, planned and preventive maintenance programmes, as well as strategic leasing.
A proficient one makes a difference
In our experience, we have witnessed that with a robust and well-planned strategy that encompasses all elements of the real estate cycle, a strong real estate asset manager can ensure that a building that they manage outperform its peers and the market by up to 13% in income generation, over a period of 2 to 3 years.
Talk to a Colliers asset management expert today, if you are looking to have your real estate assets managed professionally and their underlying value improved.
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