Unlike financial investments, real estate assets are at risk of damage, tend to deteriorate over time and need to be acted upon.
And that is where Asset management emerges. It is about implementing a commercial, economic and technical strategy that allows maximizing the return on investment.
The Asset manager is the figure that configures the most suitable team of professionals for each case, works so that the client’s investment is not depreciated and adopts measures to mitigate the risk of the investment’s inherent exposure.
One of the greatest values provided by Asset management is information management. And today data management is essential. The new proptech tools allow trends to be extracted where previously only data was observed and to do so in an efficient way, in time and costs. Decisions based on data must serve to nurture and adapt the strategy at all times.
In recent years, ESG policies (Environmental, Social and Governance) have been configured as a true driver in the selection of investments. The pandemic, the rise of social unrest and the pressure from citizens for sustainability and social justice have affected the investment criteria of many players.
ESG actions must be implemented in an appropriate and complementary manner to the underlying investment strategy, and in support of the value proposition that the building must offer to the market. The current trend is to move towards smart buildings, to attract -and retain- occupants willing to make a greater economic effort in exchange for a building with higher quality and sustainability standards. In this way, it will be possible to comply with both the environmental and financial objectives of the investment. The strategy must be able to align both objectives. Good asset management is key.