Portfolio Management

Flex Bldg

If you’re a property investor of one or more leased properties, the equity placed into the property is expected to generate a preferred ROI.  Market forces dictate how the property competes for tenants and buyers.  Yet, if you’re aware how to optimize space use and condition, it influences the rent and lease term(s) you can secure from tenants desirous of operating from your building.  Day-to-day property management enhances property value, helps to retain tenants, and attract a flow of new ones.  Whether you build new, buy fix and flip, buy the present value of a cash flow, or buy a troubled asset, the path chosen affects the ROI expected from your asset and portfolio of property investments.  Before buying, consider mindshare with the following service providers to optimize the returns generated from your equity: portfolio manager, asset manager, property manager, leasing agent.

INVESTMENT MANAGEMENT
TopicAssess GoalsStrategic PlanningPortfolio MgtEfficient FrontierProperty RepositionAsset Mgt
EducationTerrapin, MIT SA +P CCIM C101CCIM C104

Port-Mgr

Portfolio Manager.  Evaluates how market conditions will affect the properties evaluated to generate the investment yields preferred by the owner.  Owner’s equity is leveraged in blocks by creating a stack of equity investors, promised a rate of return over a holding period.  Proformas are run to determine what holding period will generate the desired ROI from the asset.  Holding period could suggest the sale of a substantial interest in the property, maintaining leasing and management control, to pay the investors and owner the ROI planned at the beginning of the project.

AM

Asset Manager.  The unofficial COO of the property.  Operates economics and compliance of the asset over the holding period to align with the objectives of the Portfolio Manager and Owner.  Leases can be viewed as individual investments contributing to property IRR.  Evaluates how all space from each asset acquired or built new will be allocated to generate the desired yield over its holding period.  They evaluate how market forces will affect rent rates and lease terms.  The asset manager hires the property manager, listing and sale agent, and builds relationship with professional service providers to the property (e.g. accountants, auditors, attorneys, space planners.)  The Asset Manager influences decisions made by the Portfolio Manager and Owner.

Ppty Mgr

Property Manager.  Hired by the Asset Manager.  They are charged to maintain the physical integrity of the asset and ensure that monthly property economics are kept current.

Agency Leasing

Leasing Agent.  The agency leasing rep aligns ROI objectives for the asset with market conditions.  This occurs through marketing, securing tenants, how space is used and divided per floor, securing business terms of leases, and staggering lease terms to limit economic risk and maintain a steady flow of rent income.  An agency leasing project is for a limited time; leasing agents can be changed if the asset manager, portfolio manager and owner think its in the best interests of project success.

Investment Sales Agent.  This capital markets professional will suggest what the asset is worth on the open market, which types of businesses would want the space and how current supply and demand conditions will influence the deal terms achievable.  The objective is to secure the highest fair market value for the property to generate the anticipated IRR for the asset over its holding period.  Strategy and planning are key to a successful sale and use of proceeds.  Stick to your plan; leave a bit of room for flexibility. Recruit multiple offers to assure the sharpest sale terms; have alternate buyers ready to fill sales that break up unexpectedly.

BREG locates underutilized properties to re-position on behalf of Users, Investors and Developers.  I have developed a keen knowledge for commercial markets within the Tri-State region over a 20+year history in brokerage. Such knowledge facilitated agency leasing or investment sales of 160Ksf of buildings and land; I made a market for select properties using valuation techniques when no comps existed.

My Reliable Business ProcessStrategic Planning (ID property types and risk appetite fitting core investment portfolio) >Create search criteria for new investments >Business case for initiatives (justify need to pursue potential investments) >
Apply 5 Guiding processes (Strategy, Design, Implementation, Operations, Continuous Improvement) >Project Management framework to pursue each new initiative >Manage Portfolio, Monitor Performance (Asset Management) > Apply Continuous Improvement to improve returns of core portfolio (plan to relet, C.I., sale)

BREG can provide portfolio and/or asset management, agency leasing, or investment sale services to property owners within the tri-state region with a portfolio up to 750,000rsf of office space or 3 million sf of industrial space.  Compensation for all services hired can be generated from brokerage commissions per transaction.  A client-centric approach drives analysis of property for re-use.  Listing services are used to reposition assets for sale to improve economics of communities and businesses.  A strategic marketing plan is formulated to guide the lease or sale of vacancies for their most likely use.  The plan is presented to the owner for approval or revision before launch to the public as listing broker.  A cross-functional team is assembled to run each listing using a project management framework.  Services are influenced by graduate education in real estate services, market research and best practices in service delivery; see http://www.linkedin.com/in/bregmetro for details.

improving communities through real estate services

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