6 Key Skills of an Investment Property Asset Manager
As you progress through the commercial property industry and work on different properties particularly in corporate portfolios you'll come across the role of an Asset Manager. In this article we explain the actions and duties of this person. This is relevant when you are seeking to help that person to sell, lease, or manage their portfolio. Asset Managers are good sources of new business for the real estate agent.
Large corporate tenants or businesses will have people designated for the Asset Manager role. They will oversee the portfolio and make decisions or implement change as appropriate. Property Agents will find this person to be a great source of opportunity and future business.
They have special skills
The person chosen for this role can analyse all the financial alternatives and formulate reasons for decisions on property matters. In many circumstances they have related property degrees from a university. Sometimes you'll see the higher end Property Agents in capital cities employing a person in the role of an Asset Manager. This will be a senior position overseeing the activities of other property managers.
Typically this person is a decision maker and strategist in corporate property. The types of questions that they ask or explore with real estate agents are similar to:-
• What would be the financial result of continuing to run the property in its present state and occupancy?
• What would be the financial results from refinancing, exchanging, or selling the property?
• What would be the financial results of remodelling, renovating, or recycling the property?
• What would be the financial results emanating from a combination of the above?
Analysis skills
An asset manager will look at and continually monitor the effects of income and expenditure from a single asset into the greater property portfolio performance. They will be looking for weakness or change as a possible threat event in the future.
As they are forward planners in property performance they typically work in timeframes of two to five years ahead of current market. In only this way can they maximise opportunity and shift strategy. Property Managers need to respect and work with the skills of an Asset Manager and also elevate their own knowledge as part of the service to the Asset Manager.
Management plan
It is common for these special property performance people to compile a management plan for an asset well prior to any financial year. The property manager then works within the management plan and highlights any shifts or changes which could affect the end net property result.
Within the management plan key decisions are made regards large items of capital expenditure and also leasing decisions which affect occupancy and cash flow particularly with large tenants. The management plan once established is a key document to be respected by the Property Agent and administered as directed.
Highest and best use
If there is a higher use for the property or an alternative way in which the property can produce a better return, then the Asset Manager will identify the change and implement a strategy to affect that change. Professional Asset Management is the art of combining the daily physical management of property together with the building owner's targets and holding cycle or timeframes.
Six Levels of Skills
Typically an Asset Manager will bring significant personal skills to the job role including those such as:-
Legal documentation
Financial skills
Valuation skills
Negotiation skills
Engineering awareness
Taxation awareness
A Property Manager then working with an Asset Manager helps implement change and the daily function of an asset. The larger the assets, the more complex the decisions made and items of strategy administered and monitored.
The Asset Manager is the administrator of the big picture and interacts with the corporate building owner or large investor.
##Need More Help?##
John Highman is a prominent investment real estate speaker and coach that helps real estate agents and real estate brokers globally to improve their commercial real estate market share and close more sales and leasing deals. He himself is a successful real estate agent that has specialised in commercial, industrial, and retail real estate of all types for over 30+ years.
Whether you specialise in real estate sales, leasing, or investment, John has the tools that can help you and your office succeed in your market.
Today John Highman gives workshops and keynotes to real estate agents and brokers globally on how to be professionally better than your competition in any market and drive more of the right listings and commissions.
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Large corporate tenants or businesses will have people designated for the Asset Manager role. They will oversee the portfolio and make decisions or implement change as appropriate. Property Agents will find this person to be a great source of opportunity and future business.
They have special skills
The person chosen for this role can analyse all the financial alternatives and formulate reasons for decisions on property matters. In many circumstances they have related property degrees from a university. Sometimes you'll see the higher end Property Agents in capital cities employing a person in the role of an Asset Manager. This will be a senior position overseeing the activities of other property managers.
Typically this person is a decision maker and strategist in corporate property. The types of questions that they ask or explore with real estate agents are similar to:-
• What would be the financial result of continuing to run the property in its present state and occupancy?
• What would be the financial results from refinancing, exchanging, or selling the property?
• What would be the financial results of remodelling, renovating, or recycling the property?
• What would be the financial results emanating from a combination of the above?
Analysis skills
An asset manager will look at and continually monitor the effects of income and expenditure from a single asset into the greater property portfolio performance. They will be looking for weakness or change as a possible threat event in the future.
As they are forward planners in property performance they typically work in timeframes of two to five years ahead of current market. In only this way can they maximise opportunity and shift strategy. Property Managers need to respect and work with the skills of an Asset Manager and also elevate their own knowledge as part of the service to the Asset Manager.
Management plan
It is common for these special property performance people to compile a management plan for an asset well prior to any financial year. The property manager then works within the management plan and highlights any shifts or changes which could affect the end net property result.
Within the management plan key decisions are made regards large items of capital expenditure and also leasing decisions which affect occupancy and cash flow particularly with large tenants. The management plan once established is a key document to be respected by the Property Agent and administered as directed.
Highest and best use
If there is a higher use for the property or an alternative way in which the property can produce a better return, then the Asset Manager will identify the change and implement a strategy to affect that change. Professional Asset Management is the art of combining the daily physical management of property together with the building owner's targets and holding cycle or timeframes.
Six Levels of Skills
Typically an Asset Manager will bring significant personal skills to the job role including those such as:-
Legal documentation
Financial skills
Valuation skills
Negotiation skills
Engineering awareness
Taxation awareness
A Property Manager then working with an Asset Manager helps implement change and the daily function of an asset. The larger the assets, the more complex the decisions made and items of strategy administered and monitored.
The Asset Manager is the administrator of the big picture and interacts with the corporate building owner or large investor.
##Need More Help?##
John Highman is a prominent investment real estate speaker and coach that helps real estate agents and real estate brokers globally to improve their commercial real estate market share and close more sales and leasing deals. He himself is a successful real estate agent that has specialised in commercial, industrial, and retail real estate of all types for over 30+ years.
Whether you specialise in real estate sales, leasing, or investment, John has the tools that can help you and your office succeed in your market.
Today John Highman gives workshops and keynotes to real estate agents and brokers globally on how to be professionally better than your competition in any market and drive more of the right listings and commissions.
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