The goal of real estate management is nothing other than a qualitatively and quantitatively predictable result of owning, disposing of and using the corresponding real estate object. The expected result is differentiated depending on the type of real estate object, the stage of the lifecycle of the real estate object, and the intentions and goals of one of the main real estate market participants (owner, investor, real estate user and real estate manager).

The strategic goal of each participant is expressed not only in quantitative (financial and economic), but also in qualitative terms.

In addition, it should be taken into account that the same real estate market participant may be interested in the objectives of several real estate market agents (for example, an investor constructs an office building, subsequently becomes the owner of this building and places his own business there), for which reason the strategic objectives of a particular participant may change over time, be replaced and combined with the objectives of other participants.

The consolidation of the most significant real estate assets of different functional purposes in groups of companies of the corporate type is characteristic of investors. The main purpose of such unions is to obtain results from real estate investments, namely to maximize the income received from real estate, increase the value and diversify the real estate portfolio in order to reduce potential risks.

In turn, private owners form large real estate portfolios specializing in a particular function (e.g. office) and concentrating on one market sector (e.g. Class A office rental). This approach creates the conditions for leveraging economies of scale during real estate operations, which minimizes costs associated with real estate maintenance, preserves the value of the real estate portfolio and introduces a single, strategically focused real estate portfolio management.

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The principle of complexity of management. Real estate management activity implies systematic decision making aimed at achieving the goals of the owner and their implementation at all stages of the life cycle. A full-fledged process of real estate management can be provided only if the necessary condition of covering the entire life cycle of the object is met.

Principle of separation of ownership and management – the principle of real estate management, in accordance with which in the process of management there is a separation of functions of the owner and manager. The owner retains the functions of adopting strategic decisions and quality control over management.

Principle of purposefulness of management – principle of real estate management according to which the founder of management must determine and fix the goal it pursues and the achievement of which the object serves. The objectives of the founder must have an appropriate quantitative and qualitative expression that allows to assess the degree of their feasibility and the results of the activity to achieve them.

Principle of object-based management is to create a management system that would allow the adoption of management decisions, recording revenues and expenses in the context of each individual object of real estate.

The principle of the most efficient use. According to this principle, the management of real estate object should provide the best and most efficient use of it. The best and most efficient use (BOO) is defined as a reasonable and possible use that best achieves the goals of the owner.

The principle of economic feasibility of management decisions. Management decisions must be made in accordance with clearly defined criteria, on the basis of reliable and comprehensive information about the state of the property, the state of the real estate market, trends in economic phenomena and processes. This principle implies a complete inventory and accounting of real estate objects, the creation of a cadastre of commercial real estate, including a system of technical, economic and financial indicators that adequately reflect the condition and major trends in the use of real estate.

Principle of professionalism of management – the principle of real estate management, which lies in the fact that the managing company (personnel of the management company) must have the necessary amount of knowledge and skills to provide qualified, high quality, meeting modern requirements of professional services.

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The subgoals of operating property management could be as follows:

• Ensuring that the owner’s core business activities are performed;
• maintaining a good condition of the property;
• minimizing the cost of maintaining and operating the property;
• preserving the value of the property;
• increasing the owner’s prestige as a result of owning the corresponding real estate object.

The second group is commercial real estate – real estate that is not used directly by the owner and is intended for commercial operations with it (sale, lease, etc.). In this case the property is acquired for the purpose of making a profit. The sub-targets of commercial real estate management may include:

• generating a periodic income and maximizing it;
• increasing the value of real estate;
• reduction in the tax base for the organization’s property tax;
• real estate speculation;
• maintaining the good condition of the property;
• minimization of costs for maintenance and operation of real estate;
• increasing the owner’s prestige as a result of owning the real estate object in question.

The third group – real estate as an investment tool – the owner uses real estate as an object of investment in order to preserve and increase their own capital.

The investment goals are similar to the goals of commercial real estate management, namely:

• preserving the value of real estate;
• to obtain a periodical income or to increase the value of the property;
• increasing the prestige of the owner as a result of owning the property.

When it comes to the state as a major real estate owner, social goals are added to its operational and commercial goals:

• stimulating the development of small and medium-sized businesses by making it as easy and convenient as possible for entrepreneurs to access real estate;
• creation of a favorable climate for increasing investment in real estate;
• creating a favorable economic and social environment for the population;
• preservation of real estate value;
• maintaining the good condition of the property;
• minimization of costs for maintenance and operation of real estate.

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