Strategic Management Of Real Estate Assets Assignment Sample

Introduction OfStrategic Management Of Real Estate Assets

Strategic Management Of Real Estate Assets Is Essential For A Company In Present Competitive Economic Environments

The demand for the Real estate has evolved and increased meteorically in these current years. The Investors have been believing in the real estate market that very important for different companies to grow and survive in this competitive market as it is the significant factor steady growth of this industry. As the size of the real estate industry has been growing at a rapid pace, a proper strategy is needed for the management of assets that is crucially needed for the survival in the market. The strategy should be formulated according to the different factors that have been affecting the internal and external environment of the organization. They take a lead in the business and to manage the business operations that have been performing in the competitive market there should be an effective strategic approach in order to gain the advantage points over the rivals of the industry. There would be opportunities and adversities that could be observed, but by following these six principles, assets management could be established which could present a general idea and overview of the strengths and shortcomings regarding the environments of the organization. These principles would be 1. Proper setting of goals, 2. Detailed analysis of the environments, 3. Designing of the proper strategy, 4. Evaluation, 5. The implication, 6. Management of the asset.

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Background of the data, Sources and references

In the market of the real estate business that have been in the market for the originality from the 1960s, as the growth of the various industries in the financial market. Many Industries like Civil engineering, Public infrastructure etc. have rapidly grown for the time being. The development of the logistics infrastructure and the increase of the valuation of the different share markets around the world like the New York Stock Exchange, The London Stock Exchange have given birth many flagship business organization that have significantly contribute in the global economy. Organizations like Microsoft, Apple, and Google etc. have also managed there assets and properties that have been relevantly sustained in the financial market, as the recession 2008 have damaged these organizations. Through the proper asset management these organizations have regained their valuation and also the goodwill in the customer base.

Aim and objectives

Aim: The aim of the paper is to identify the strategic management of real estate assets is essential for a company in present competitive economic environments.

There are many objectives that needed to the addressed for the effectiveness of asset management to fulfill long-term goals. There are 3 categories of objectives that needed to be addressed for proper asset management of an organization, which are discussed under

• To resale valuation of the assets and increase the price of property.
• To reduce the operational cost for critical valuation increase in assets.
• To develop a state of the art technology for managing assets.
• To create strategies for the property asset management for ill-environmental cost reduction.
• To regulate standard measures that needs to be followed for the enhancement of the life cycles of the assets.

Discussion

Corporate real estate or CRE is associated with those Buildings and lands that have been owned by different companies that have been basically associated with the business of the real estate sector (Munir, 2019). This term of CRE is also being applied to those properties that have been either leased or owned by the company for the achievement of the company goals. In this process of asset management, there should be a proper discipline that should be utilized for the effective utilization of the resources according to the prescribed models which should be in a cost-effective manner, which will create a demand for the shareholders and for the business growth. In the early 1980s, the concept of CRE have been adopted by the U.K. and the U.S. (Tarigan, 2022). According to a Harvard study, there was 40 percent of the corporate real estate has been owned by the major real estate companies that have been enhancing the performance in the evolution and development of the real estate corporations. The development of the CRE was crucial for the massive business shifts in the U.S., as there were many business plans and solutions to problems that have evolved the functions of management (de Prado, 2020). The evolution of administration, custodial and managerial perspectives would be were the key factors for strategic CRE management in the 1990s and 2000s onwards.

Corporate Real Estate into Corporate Strategy integration

In this necessity of the implication of the strategic plans, there should be decisions that needed to be taken as there is a situation for the maximization of the profitability of the company that has been managing its assets for the getting the proper monetary value of the properties(Lu,2021). The business should create an image that should have support in the process of the fulfillment of the meeting of the goals. An understanding of the financial market is very crucial for the decision-making in regard to asset management which has been momentarily crucial for the development of the business (Gavrikova, 2020). The trends and the directions should be maintained as through the implications of these measures, investors are attracted to those organizations. There should be also the proper utilization of the resources that have been very significant for the effective operations of the organization and proper management of assets as per the detailed analysis of the financial markets. The incorporation of various technology, information, and proper human resource would be a significant factor for the proper asset management, as it could provide a proper database for the evaluation of the real estate business. The integration of human resources is the second most expensive inquisition for the company as the employees could effectively manage the asset and property valuation of the organization (Buffa, 2022). Through this implication of the regulated measures for the production and the valuation of real estate, a business could eventually grow and surpass the market competition that has been posing different challenges and obstacles to the achievement of desired goals in asset management.

Analysis

In the assessment of the strategies for the effective management of asset management, there would be many attributes that needed to be addressed that have been discussed in the following elaborately.

The importance of Goal set up in an Organization

There are business organizations that have been contributing different significance that has been particularly important for the assessment of the strengths and challenges for the maximization of the monetary values (Tscheikner-Gratl, 2019). There is a significant of allocating the goals and proper utilization of the resources, as it could become the key denoting factor for the effective operation and cost reduction of the organization. Through the improvement of technological perspectives, the lack of transparency regarding the data of the financial management could be resolved. Through the proper improvement in the asset management and the proper utilization of idle assets, the desired goals could be met as the demand in the real estate market is gradually increasing (Xie, 2019). By leveraging the data, improvement in performance and cost-effectiveness could be observed. For maximizing the effectiveness and managing the life cycle of the assets, there could be a saving in the maintenance cost and also replacement cost which is important for the calculation of the depreciation of assets.

Work environment analysis

Through the proper analysis of the property management of an organization. The overall idea of the external and internal environments should be established, as it is very important for the business evaluation. To gain an advantage in the competitive market, proper models and theories should be followed which are based on detailed research analysis. There are mainly two types of assets that needed to be managed, 1. Tangible asset, 2. Intangible asset. From the perspective of intangible assets, there is a component of goodwill that is very important for the business growth as there would be many external threats that could damage this factor which could damage the work environment of the organization (Wang, 2022). A balance is needed in the balance of external and internal environment for business evaluation.

Strategy design of asset management

In the proper assessment of the financial market, the organizations could improve the business evaluation strategy, as there should be a development of the proper leadership in management that will ensure the thorough utilization of the resources. Through research analysis of the real estate market, the design overview should be strategies as the proper utilization of the significator should be implicated in the journey of the business evaluation and survival in the market (Ito, 2019). Through Asset performance management, Asset strategy management, and work management a reliable design could be observed for the survival of the market competitiveness. Through the execution of the previously discussed measures and through the understanding of decision makings of the financial markets a business organization could properly become a flagship institution by managing its properties and assets.

Result of analysis

Through the proper implication of the different measures that have been used in the assessment of the development of the proper strategy for asset management, there are many outcomes and results have come through the analysis. By following the objective the outcomes would be as productive for business development (journals.uchicago, 2022). Through proper practice of asset management that participating businesses could gain an understanding of their strengths and gaps. That needed to be focused on and should also add valuations in those measures.

Developing a proper technology in regard to the keeping of the database of the various assets is critically important for the development of proper planning and future endeavors (baker Hughes 2020). To get maximized profitability through the property and assets the proper utilization of resources should be practiced as it could be the key defining factor for operational cost-effectiveness. From the perspective of the reduction of the maintenance of the assets, there should be quality elements that needed to be used in the making of the asset. There are many attributes that needed to be used in the balancing of the internal and external environment that is very important for the regulation of the business. By gaining an understanding of the external threats that have been presented by the competitors, a business organization could implicate effective models and theories that would boost in the performance of asset management to fulfill the desired future goals of the organization (science direct 2022). The integration of the strategy into the corporate real estate market is significant for the increase in the valuation of the properties and assets. Through the proper valuation of the properties, a stabilization in the real estate market could be seen. The shareholders and the stockholders could be attracted to the strategic implications of management models (onlinelibrary2019). The overall evaluation of the real estate market is significantly crucial for the stabilization of the financial markets of the globe, as the regulatory policies regarding proper asset management should be followed.

Recommendation

In the Recommdation of the asset management of the real estate sector, there are many different aspects that need to be addressed, they are

• There should be a proper utilization of the resources that could have decrease the operating cost of the organization
• There should be a proper strategy that could be instigated for the development of the properties that have been stable for the long run.
• The Understand the financial market and to adopt different models and regulated measures

Conclusion

In the conclusion of the analysis of the strategies of asset management that needed to be implicated in the business evaluation have been discussed elaborately in the above columns. The practice of management of assets should be regulated and disciplined especially in the real estate market. The longevity of the properties and the proper valuation of the resale of assets are addressed, as by taking these measures the maintenance and the cost operations could be reduced. Through the reduction of the cost, an increase in the valuation of the assets could be observed for the survival of the competitive market. Proper decision-making according to the detailed analysis of the financial markets which have been variating according to the demand for real estate should be thoroughly analyzed, and the adaptation of the flexible business models and strategies should be processed for the future endeavors of the organizations. The management of work shouldn't also be taken for granted as there would be many factors that need to be considered. The scheduling of work, the analysis of the work data, the execution of the strategized work and the feedback from the customer regarding the assets are disgustingly significant for the improvisation of maintenance and management. Through this feedback, the organizations could assess the strengths and opportunities for the business evaluation that is important for the counter of external challenges and competitive threats that could severely damage the goodwill of the organization. The relationship between financial aspects like taxation processes and the analysis of the balance sheet should be cleared as these could impact the financial credentials of an organization.

References

Book

• Pompian, M.M., 2011. Behavioral finance and wealth management: how to build investment strategies that account for investor biases. John Wiley & Sons. Available at:https://www.academia.edu/download/58682710/Behavioral_finance_and_wealth_manageme.pdf [Accessed on: 03.03.23]

Journals

• Buffa, A.M., Vayanos, D. and Woolley, P., 2022. Asset management contracts and equilibrium prices. Journal of Political Economy, 130(12), pp.3146-3201.
• de Prado, M.M.L., 2020. Machine learning for asset managers. Cambridge University Press.
• Gavrikova, E., Volkova, I. and Burda, Y., 2020. Strategic aspects of asset management: An overview of current research. Sustainability, 12(15), p.5955.
• Herrera, M., Sasidharan, M., Merino, J. and Parlikad, A.K., 2022. Handling Irregularly Sampled IoT Time Series to Inform Infrastructure Asset Management. IFAC-PapersOnLine, 55(19), pp.241-245.
• Ito, K. and O'Dair, M., 2019. A critical examination of the application of blockchain technology to intellectual property management. Business Transformation through Blockchain: Volume II, pp.317-335.

Article

• Sciencedirect.com (2022). Handling Irregularly Sampled IoT Time Series to Inform Infrastructure Asset Management. Available at https://www.sciencedirect.com/science/article/abs/pii/S0007681318301903 [Accessed on: 03.03.23]
• Onlinelibrary.com (2019). A critical examination of the application of blockchain technology to intellectual property management. Business Transformation through Blockchain: Volume II. Available at: https://onlinelibrary.wiley.com/doi/abs/10.1111/1744-7941.12285 [Accessed on: 03.03.23]
• Sciencedirect.com (2020). The ‘how' of benefits management for digital technology: From engineering to asset management. Available at: https://www.sciencedirect.com/science/article/abs/pii/S0926580519304297 [Accessed on: 03.03.23]

Websites

• Journals.uchicago.com (2022). Asset management contracts and equilibrium prices. Journal of Political Economy. Available at: https://www.journals.uchicago.edu/doi/full/10.1086/720515 [Accessed on: 03.03.23]
• Bakerhughes.com (2020). Strategic aspects of asset management: An overview of current research. Sustainability. Available at: https://www.bakerhughes.com/bently-nevada/integrated-asset-performance-management?_bt=632096280229&_bk=asset%20performance%20strategy&_bm=p&_bn=g&_bg=148254455692&utm_source=google&utm_medium=cpc&utm_campaign=&utm_term=asset%20performance%20strategy&utm_content=&gclid=Cj0KCQjwk7ugBhDIARIsAGuvgPb5mTQLQWq-i0yUcZmoJIDHkYuxbb0jSGAiAR6VXLRMP-OhNhBePeQaAiKaEALw_wcB [Accessed on: 03.03.23]