Property Management

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Property Management for Facilities Managers

Table of Contents

1.1 Property Portfolio Strategy3

1.2 Property Portfolio Specialist4

1.3 Implementing Property Portfolio Strategy5

1.4 Property Portfolio and Facilities Management Services6

2.1 Costs and Taxes associated with Property Ownership8

Fixed Costs:8

Variable Costs:9

Stamp Duty Land Tax, Revenue Stamps on the Ground10

2.2 Property Cost and Facilities Management10

Property Development Schedule11

2.3 Reducing Occupational Costs12

3.1 Registers Effectiveness13

3.2 Tools for Increasing Registers Effectiveness13

4.1 Impact of Building Design on Operational Use of Property14

4.2 Impact of Building Design on Facilities Management15

4.3 Proposed Methods16

5.1 Property Relocation Planning17

5.2 Resources for Property Relocation18

5.3 Property Relocation Review21

Property Management for Facilities Managers

1.1 Property Portfolio Strategy

The definition of portfolio strategy is based on the preferences of the investor. It is important for a facility manager to understand the needs and wants of the customers willing to develop Property Portfolio. The property portfolio could be developed in accordance with the risk appetite of the customer. The facility manager must ensure to diversity the risk by investing in various kinds of properties to maximize return at a given level of risk. The customers must be given the freedom of action at the portfolio level to a maximum level. However, often the facilities manager has to intervene and put limitations on an investment due to certain restrictions and market situation (McLennan, Nutt, 1992, p. 13).

The three dimensions of the real estate portfolio strategy are as follows:

Geographic segmentation:

Continents, countries and / or regions

Sectoral segmentation:

Sales, residential, office space, etc.

Investment type:

The investment-type is determined by the type of value creation (development, optimization project, existing property) and the rank of capital (standard equity, mezzanine financing, coupon deals, third-party loans, mortgages) It is important to consider these dimensions as it would determine the type of property customer want that is residential/sale/rent etc. It depends on the risk of a particular type according to which the customer choses one type.The customer also want property in a specifie area that is accessible and have all the facilities nearby to be availed. Hence, all these dimensions must be kept in mind by facilities manager before building property portfolio.

Before a portfolio strategy is defined, it is important to be aware of the illiquid nature of unlisted real estate markets too. The holding period of assets in an actively managed portfolio is between about 2 and 8 years. A clear investment strategy is a prerequisite for meaningful and utility-maximizing financial planning (David, 2008, p. 38-51). The 5 basic strategies are:

Buy & hold

(Optimization of costs, capital structure, and tenants and waiting for a favorable selling time)

Buy, Sell & re-positioning

(Leasing of vacant space)

Buy, renovate and sell

(Contractual or non-contractual rent increases after renovation)

Buy, sell & rebuild

(Adaptation of usage and / or structure of existing land and / or creating new rental space)

Building, sell & rent

(Standard real estate development project)

1.2 Property Portfolio Specialist

Developing and managing a portfolio is a very hectic task and it requires the expertise of specialist, who can perform thi job. In recent past, facilities management has evoled as a ...
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