Asset Management is an over used term in the property sector, particularly on the landlords’ side. Too many claim to be Asset Managers yet fail to react to opportunities that are presented. The ability to assess and manage risk for many appears to default to no risk but at the same time wanting a return that is appropriate for some one taking risk of at a manageable level. Without being able to properly assess the risk return equation landlords are missing out on opportunities that are presented and are crystallising respective positions of landlord and tenant, for a zero gain position for both.
For the corporate occupier, asset management it is about having clarity on the detail of the portfolio and keeping it aligned with the business needs and strategy. Therefore, there should be constant adjustment of the portfolio to the property strategy and hence the business strategy, including looking for opportunities and solutions to long-term issues.
Seeking out those opportunities to add value; to challenge costs; etc. is all part of the effective management of the assets of the organisation and requires an understanding of both the landlord and tenant drivers. Which is currently being made harder by the low risk approach of landlords.