In the property sector, asset management refers to the strategic, value-driven management of a property or property portfolio throughout its entire life cycle. The aim is to safeguard and increase the value and return on the property in the interests of the owner or investor. Asset management involves making overarching decisions regarding acquisition, holding, refurbishment and sale, and thus takes precedence over the day-to-day running of a building.
What is asset management in the property sector?
Property asset management involves the commercial and strategic management of a property as an investment. The asset manager develops the strategy for the property, manages investments, monitors the market and is accountable to the owner for the property’s performance. Unlike purely technical or operational management, asset management views the property primarily as an asset whose returns and risks need to be optimised. It therefore works closely with financial indicators, market data and, increasingly, sustainability criteria.
How does asset management differ from property and facility management?
In the property sector, a distinction is usually made between three levels. Asset management is the strategic level and determines the property’s positioning as an investment. Property management is the commercial management level, which organises tenancy agreements, service charges and day-to-day management. Facility management is the operational, technical level, which ensures the building’s day-to-day running, from maintenance to energy management. The three levels are interlinked, as strategic decisions rely on reliable operational and consumption data from the lower levels.
What role does energy data play in asset management?
Energy performance indicators are becoming increasingly crucial for asset management because they have a direct impact on a property’s value. Regulatory requirements, rising CO₂ costs and the expectations of tenants and investors mean that energy-inefficient buildings lose value – an effect known as the ‘Brown Discount’. Reliable consumption data from energy monitoring provides the basis for assessing a property’s energy performance, justifying refurbishment decisions on economic grounds and safeguarding its long-term value. This means that technical data becomes a direct input for strategic decisions.
Related terms
Sources and further information:
- Betterspace: Regulatorik, ESG und Resilienz für Betreiber
- Betterspace: Asset Management für Immobilien: Was Stranded Assets, Green Premium und Brown Discount für deinen Gebäudewert bedeuten
- Gesellschaft für Immobilienwirtschaftliche Forschung (gif): Definitionen zu den Managementebenen