Q: What does an Asset Manager do for me?
A: The role of an Asset Manager is to oversee the entire operation of the property. The Asset Manager is the direct conduit between the Owner and all aspects of property operations. The Asset Manager directs, monitors, supervises and evaluates the various service providers (property manager, property staff, leasing personnel, attorney, architect, accountant, etc.) as well as handles investor reporting and communication, accounting, lender compliance, performance analysis, etc. The Asset Manager is the Owner’s advocate.
Q: Does my property really need an Asset Manager?
A: An asset manager is generally viewed as critical for the efficient operation of commercial real estate. An asset manager should act as a staunch advocate for the Owners of the asset by pushing for tight expense controls, active property management, aggressive leasing, and strategic planning as if he owned the property himself.
Q: I already have a Property Management firm, what more do I need?
A: Experienced real estate investors will tell you property managers must be actively supervised by credible and experienced personnel in order to maximize property value. Property management firms are only as good as the owners/Asset Managers require them to be. The practical impact of that reality is that your property is likely to receive less attention and focus unless you have an active and aggressive advocate on the job representing your interests.
Q: Where does the Asset Manager add value?
A: There are literally hundreds of decisions which dramatically impact a property’s financial performance. Some of the areas where a good Asset Manager can have the biggest impact are:
STRATEGIC PLANNING
TENANT SELECTION
LEASE NEGOTIATION AND REVIEW
OVERSIGHT OF TENANT IMPROVEMENTS
OVERSIGHT OF OPERATING EXPENSES
VENDOR SELECTION
CAPITAL NEEDS STUDIES
LENDER COMPLIANCE
ACCOUNTING CONTROLS
MARKETING AND OPERATING PLANS
DETAILED INVESTOR/CLIENT REPORTING
TENANT RELATIONS
FORECASTING
Q: How common is it to use an Asset Manager to administer commercial real estate?
A: Every single institutional owner of investment grade commercial real estate utilizes Asset Managers, every one. Knowledgeable, professional institutional investors like Prudential, Northwestern Mutual, TIAA CREF, CALPERS and others all employ asset managers.
