Achieving ROI goals with technical asset management

Last year's subprime crisis - at the latest - marked the end of fast and lucrative onselling of properties. A good return now has to be generated in different ways. In the case of existing buildings, an increase in value can be achieved by reducing operating costs, increasing occupancy and optimal use of the property. Here, Drees & Sommer offers a comprehensive services package that focuses building operation and the associated costs.

In addition to commercial factors, technical asset management is an integral element of promising investment in real estate. Buildings have to meet an appropriate standard in order to keep existing tenants, attract new ones, or sell the property. Drees & Sommer establishes individual requirements, shows optimization potential and develops sustainable solutions. Based on a comprehensive analysis of the building's condition, profitability, structure and potential, consultants develop a property strategy that makes sense in the long term. The quality of the property is an important factor here, but tenant structure and marketability also have to be taken into account. For this reason, successful management involves competency in all three areas of expertise: commercial, technical and marketing. Technical asset management aims to provide a suitable exit strategy, to increase and secure profit, and to reduce costs. It covers the three pillars of Management Performance, Cost Performance und Building Performance.

Management Performance involves the analysis of operator structures in order to create efficient organizational units. In parallel to this, Drees & Sommer examines lease agreements with respect to regulation of operating costs and utility costs, and for homogeneity. Further criteria include a tenant structure adapted to local and building-specific conditions, and suitable facility and property management.

The goal of Cost Performance is to minimize expenditure - also in view of changing laws and regulations. Also, maintenance contracts, contracts with energy suppliers, service providers and tradespoeple have to be subjected to regular scrutiny, as this often results in huge savings. Other areas of expenditure include maintenance and management strategies, the optimization of energy consumption - possibly including an energy pass - and the forecasting of life-cycle costs.
 
A balance has to be achieved between cost reduction and maintaining maximum Building Performance, as the profit lies in the margin between the optimized costs and in increase in the value of the property. In most cases, building use can be further enhanced - an important criterion for the property strategy.