Are Property Managers Becoming Asset Managers?

Lori Burger, 2015 President of the Institute of Real Estate Management, recently published an article addressing a trend she is seeing in the real estate world – that Property Managers are increasingly taking on more of a role of an Asset Manager.

By definition, “asset management” is commonly-used in the financial world to describe people and companies that manage the investments of others. This term refers to any system that monitors and maintains things of value to an entity or group. It can apply to both tangible assets such as buildings and to intangible assets such as human capital, intellectual property, goodwill, and financial assets. Asset management is the process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively.

Contrarily, “property management” is broadly-defined as the operation, control, and oversight of real estate.

In her article published on nreionline.com, Burger says, “New demands and new technologies are coming together to advance the role of the property manager. Traditionally assumed to be a day-to-day role with little to no strategic responsibility, the property management function today takes on much of the aspect of asset management.” She goes on to say that, “Today, there is significant pressure on the property management professional to put in place new or revised policies and practices to comply with vast state and federal regulations that impact the health of the real estate asset.”

Our network of Property Managers is vast, so we’re curious – what are all of you seeing? Do you believe this the focus your position is taking?


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