New Research Defines Real Estate Asset ManagementFebruary 15, 2017
| Ron Gjerde
One of our continuing goals at IREM is to support the development needs of property managers and asset managers. We intend to accomplish this by first thoroughly understanding the roles of both positions and how they relate to each other.
The property management and asset management disciplines are clearly different today than they were 10 to 20 years ago. Competitive pressures have forced real estate practitioners working in these closely aligned fields to expand their service offerings and collaborate with each other to achieve the investment objectives of sophisticated real estate ownership groups.
In 2016, IREM funded a new research study to gain a better understanding of the core responsibilities of asset managers and the skills required for success in that profession. The study consisted of in-depth interviews with 92 individuals working in asset management or in conjunction with asset managers. This group included executives from many of the largest real estate owners and service providers by product type, as well as executive search firms engaging in real estate placements. The project complements the substantial amount of research IREM has undertaken in the past examining the evolving relationships and job requirements of both property managers and asset managers.
The final report provides new insights into the roles, responsibilities, and requirements of asset managers working in different types of real estate companies. It also presents a typology that can be used to better understand alternative approaches to asset management and a discussion of the factors that frequently contribute to an individual’s success in the field.
This analysis will serve as a starting point for future study of the asset management process, as well as a means of stimulating conversation about the steps that can be taken to support the ongoing growth and development of asset management as an attractive and rewarding career option. It will also help identify the development and education a property manager needs to either move into an asset management position, or simply collaborate more effectively with asset managers.
A copy of the final research report, Real Estate Asset Management: A Process and A Profession, is now available in the IREM Store.
About the Author
Ron Gjerde is Vice President, Knowledge Center for the Institute of Real Estate Management. Ron oversees the production of IREM’s magazine, the Journal of Property Management, and the development of numerous text books and publications on real estate management. He also oversees government affairs and the Income/Expense program.