Added Value: Property & Asset Management
Published on: Wednesday, December 9th, 2015
A newly released white paper from IREM garnered a lot of attention at the Fall Leadership Conference in Salt Lake City. Some 160 managers were on hand to hear the details of A Shifting Dynamic: Asset vs Property Management from three of the white paper’s major contributors.
The white paper, which explores the changing relationship between the two disciplines, is a combination of practitioner interviews, the recent IREM Job Analysis Survey and other previously published intelligence, and it forms the foundation for ongoing research on the topic the Institute will explore in future weeks and months.
What was the major headline emanating from the white paper? The three panelists, from three different disciplines, offered three disparate perspectives.
“The major headline is that it’s not business as usual, and asset managers need our help as property managers more than ever before,” offered Andrew Genova, executive managing director at CBRE in Washington, DC. “The pressures that are put on them from the sheer number of properties they handle, which can be upwards of 30 or 40, means they have to look to us to help them maximize value.”
For Craig Cardwell, CPM, owner of Island Investments in Memphis, it’s a question of skill sets: “There are very distinct skill sets for which there isn’t much crossover. But that doesn’t mean that property managers cannot be more asset manager-like, and it doesn’t mean that asset managers can’t learn to do property manager things. But have you ever seen an asset manager try to get out of paper bag trying to do property management? No. It’s not as easy as it looks.”
Bill Whitlow is a partner in San Francisco-based Terra Search Partners, and one of his major headlines was that “There’s a strategic partnership between asset and property management, and that’s where most of the value is created in real estate.”
Clearly, the relationship between asset and property managers is in a state of necessity-driven flux. But there is one realization that binds the two together, and ultimately, however the relationship continues to change, that one reality will remain, and Genova expressed it best: “Asset managers know that their success is tied to our success.”
Read the IREM white paper on asset management, A Shifting Dynamic: Asset Vs. Property Management.
For a full report from this and many other IREM Fall Leadership Conference sessions and events, see the digital-only JPM IFLC Special Edition.
About the Author
John Salustri is one of the nation’s most respected writers in the field of Commercial Real Estate. A multiple award winner for excellence in journalism, John is the founding editor of GlobeSt.com, the nation’s premier news and information site for the commercial real estate industry. Today John is a freelance writer and editor, focusing on helping companies boost their industry presence through enhanced web and print content.