WHAT IS REAL ESTATE ASSET MANAGEMENT?
The umbrella term of ‘real estate asset management’ refers to the practice of providing investors desiring commercial real estate as part of their portfolio with valuable information about i) potential investment opportunities; and ii) maximizing value of existing holdings. This involves professional recommendations regarding investments such as buying existing properties versus developing new properties; choice of asset class, such as retail, office, multi-family, etc.; and setting strategies to unleash value from the assets the investor holds.
WHAT DOES A REAL ESTATE ASSET MANAGER DO?
Real Estate Asset Managers are responsible for overseeing the financial performance of the real estate assets of their clients. In short, they seek to find the ideal balance between incurring risk and earning returns from investments, thus increasing the value of the client’s portfolio. Key drivers of this value optimization include effective leasing, property management, capital re-investment, development potential, and balance sheet management.
A Real Estate Asset Manager considers several variables of a client’s portfolio, including: the size and scale of an organization, capital allocation for real estate, the number and type of assets under management, the business goals of the owners (e.g. current income vs. capital gain), as well as the nature of the mandate (internal or outsourced to a third party).
A Real Estate Asset Manager also focuses on the process of investment management. This involves monitoring the performance of any investments a client has in his or her real estate portfolio. As part of the management process, the asset manager will make recommendations regarding which investments to hold on to over the long term, which ones should be sold within a given period of time, and which offerings should be acquired. The goal is to maximize the return on all assets contained in the portfolio, while keeping the level of risk associated with the investment process within the limits determined by the client.
Depending on the relationship between the asset manager and the client, the manager may be granted limited authorization to engage in buying and selling on behalf of the client. This is often the case when the business relationship has been established for some time, and the client has come to trust both the expertise and the integrity of the manager. However, it is important to understand that the client always has the ability to override the suggestions of the manager, and take an alternate course of action, if he or she desires.
The Real Estate Asset Manager is there to consult, advise and recommend potential opportunities based on their research and experience. They can be the difference between a client making a great decision or a potentially poor decision when it comes to a real estate investment acquisition, ongoing ownership and divestiture.
WHAT’S INVOLVED IN WORKING WITH A TRUE NORTH GROUP REAL ESTATE ASSET MANAGER?
Our ultimate objective is to help you to achieve your financial goals by investing in and expanding the performance of your commercial real estate holdings. We do this by offering our over 80 years of combined industry experience in real estate asset management and investment advice.
Our process is straightforward: we validate your need, formulate solutions, and provide a program for implementation. These services include first analyzing the current status of your commercial real estate asset(s), then identifying future requirements for amplifying the potential of your holdings, followed by modeling alternative recommendations to take your vision to the next level and ultimately backing-up our information and analysis to support the recommendations we make.
True North formulates and delivers focused and customized solutions designed specifically for you.
Please Contact us to schedule a more in-depth discussion about your commercial real estate portfolio and to learn more about how partnering with True North can benefit your assets.