REAL ESTATE ASSET
MANAGEMENT
A PROCESS AND A PROFESSION
By Dustin Read, PhD/JD
,REAL ESTATE ASSET
MANAGEMENT
A PROCESS AND A PROFESSION
By Dustin Read, PhD/JD
,©2017 by the Institute of Real Estate Management
of the NATIONAL ASSOCIATION OF REALTORS®. All rights reserved.
Published 2017.
This report or any part thereof may not be reproduced, stored in a retrieval system,
or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the publisher. Inquiries
should be directed to:
Publishing Department
Institute of Real Estate Management
430 North Michigan Avenue
Chicago, IL 60611–4090.
Text and cover composition: Nadia Geagea Pupa
Cover image © shuoshu / iStock Photos
ISBN: 978-1-57203-251-4
SKU: 761
IREM® logo, IREM®, Certified Property Manager®, CPM®, the CPM key logo, Accredited
Residential Manager®, ARM®, the ARM torch logo, Accredited Management Organization®, AMO®,
the AMO circle logo, Income/Expense Analysis®, Expense Analysis®, JPM®, and MPSA® are
registered marks of the Institute of Real Estate Management.
IREM practices diversity. We are an inclusive organization that embraces and values
differences and welcomes individuals of all races, genders, creeds, ages, sexual
orientations, gender identities, and national origins and individuals with disabilities,
providing an equal opportunity environment among its members, vendors, and staff.
IREM is dedicated to supporting real estate management strategies that advance an
environmentally sustainable and economically prosperous future.
ii.
, Table of
Contents
Preface..............................................................................................................................................................................1
Executive Summary.................................................................................................................................................3
Defining Real Estate Asset Management................................................................................................... 6
The Traditional Real Estate Management Trichotomy..............................................................7
Sources of Confusion and Disagreement ................................................................................. 10
A Need for Greater Clarity and Understanding ...................................................................... 12
Analyzing the Perceptions of Real Estate Executives............................................................. 14
Organizing and Interpreting the Qualitative Results.............................................................. 16
Understanding Asset Management as a Process...................................................................... 18
Acquisition Support........................................................................................................................... 18
Business Planning.............................................................................................................................. 21
Leading a Team.................................................................................................................................. 23
Budget Preparation........................................................................................................................... 25
Approving Leases and Capital Improvements.......................................................................... 27
Promoting Operational Efficiency ............................................................................................... 29
Financial Analysis .............................................................................................................................. 31
Market Research................................................................................................................................ 33
Disposition Assistance .................................................................................................................... 35
Surveillance and Reporting ............................................................................................................ 37
Approaches to Asset Management: A Typology......................................................................... 40
Analytical Asset Managers.............................................................................................................. 41
Operational Asset Managers.......................................................................................................... 42
Transactional Asset Managers....................................................................................................... 44
Comprehensive Asset Managers.................................................................................................. 45
The Future of Asset Management.................................................................................................... 47
Filling Knowledge Gaps and Spotting Talent ............................................................................ 50
Assessing the Opportunities and Challenges Presented by Careers
in Asset Management....................................................................................................................... 53
Firm-Level Considerations.............................................................................................................. 56
Concluding Remark........................................................................................................................... 57
References.................................................................................................................................................. 58
iii.
MANAGEMENT
A PROCESS AND A PROFESSION
By Dustin Read, PhD/JD
,REAL ESTATE ASSET
MANAGEMENT
A PROCESS AND A PROFESSION
By Dustin Read, PhD/JD
,©2017 by the Institute of Real Estate Management
of the NATIONAL ASSOCIATION OF REALTORS®. All rights reserved.
Published 2017.
This report or any part thereof may not be reproduced, stored in a retrieval system,
or transmitted, in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the publisher. Inquiries
should be directed to:
Publishing Department
Institute of Real Estate Management
430 North Michigan Avenue
Chicago, IL 60611–4090.
Text and cover composition: Nadia Geagea Pupa
Cover image © shuoshu / iStock Photos
ISBN: 978-1-57203-251-4
SKU: 761
IREM® logo, IREM®, Certified Property Manager®, CPM®, the CPM key logo, Accredited
Residential Manager®, ARM®, the ARM torch logo, Accredited Management Organization®, AMO®,
the AMO circle logo, Income/Expense Analysis®, Expense Analysis®, JPM®, and MPSA® are
registered marks of the Institute of Real Estate Management.
IREM practices diversity. We are an inclusive organization that embraces and values
differences and welcomes individuals of all races, genders, creeds, ages, sexual
orientations, gender identities, and national origins and individuals with disabilities,
providing an equal opportunity environment among its members, vendors, and staff.
IREM is dedicated to supporting real estate management strategies that advance an
environmentally sustainable and economically prosperous future.
ii.
, Table of
Contents
Preface..............................................................................................................................................................................1
Executive Summary.................................................................................................................................................3
Defining Real Estate Asset Management................................................................................................... 6
The Traditional Real Estate Management Trichotomy..............................................................7
Sources of Confusion and Disagreement ................................................................................. 10
A Need for Greater Clarity and Understanding ...................................................................... 12
Analyzing the Perceptions of Real Estate Executives............................................................. 14
Organizing and Interpreting the Qualitative Results.............................................................. 16
Understanding Asset Management as a Process...................................................................... 18
Acquisition Support........................................................................................................................... 18
Business Planning.............................................................................................................................. 21
Leading a Team.................................................................................................................................. 23
Budget Preparation........................................................................................................................... 25
Approving Leases and Capital Improvements.......................................................................... 27
Promoting Operational Efficiency ............................................................................................... 29
Financial Analysis .............................................................................................................................. 31
Market Research................................................................................................................................ 33
Disposition Assistance .................................................................................................................... 35
Surveillance and Reporting ............................................................................................................ 37
Approaches to Asset Management: A Typology......................................................................... 40
Analytical Asset Managers.............................................................................................................. 41
Operational Asset Managers.......................................................................................................... 42
Transactional Asset Managers....................................................................................................... 44
Comprehensive Asset Managers.................................................................................................. 45
The Future of Asset Management.................................................................................................... 47
Filling Knowledge Gaps and Spotting Talent ............................................................................ 50
Assessing the Opportunities and Challenges Presented by Careers
in Asset Management....................................................................................................................... 53
Firm-Level Considerations.............................................................................................................. 56
Concluding Remark........................................................................................................................... 57
References.................................................................................................................................................. 58
iii.
