exporeal.net - INVESTMENT

However, the reasons he should be involved in product selection – whether it is a finished product or a product development – is not just his experience with each object (and its possible weaknesses), but also because of his market-oriented perspective. What good is the most attractive, modern and space-efficient building in a CBD if there are no suitable tenants – large national and international companies – who can pay the high rents? Why would a call centre or start-up company who moves into a property on the outskirts of a city need a large representative foyer? What good is it to take the wishes of a large tenant into consideration when developing a building, if the tenant moves out after five years and the space cannot easily be separated into smaller units? Why invest in an office building if the local need is largely satisfied, but there is an undersupply in logistics space? It is essential for the asset manager to have a good understanding of the market, to support the investor in choosing the right (i. e. sustainable) product in the right location at the right time, for the right price. It is not just about the current market situation, but also about a foresighted estimation of the future market development.

To have this ear to the market, real estate asset management must be organised accordingly. Particularly when cross-border investments are more the rule than the exception, and there is usually not just one target country, local or regional units are needed who are networked with the individual locations, close to the tenants and other business partners. They can then leverage their local expertise and market insights, not just in selecting the objects/ products, but also in legal and tax issues. A central organisation is also needed that is closer to the investor that can cover his various interests, but also can collect the knowledge and experiences of each local/regional unit. It can also bundle and prepare these so they are available any time within the asset management organisation. This knowledge management is essential to prevent reinventing the wheel with each new project, or worse, making the same mistakes twice. How an investor organises his asset management in detail, whether he manages the whole process or outsources it to a third party, is something each investor must decide for himself. The choices are as numerous as the number of investing real estate companies. With outsourcing, however, it is important to have a high amount of trust in the external asset management organisation.