The first group is operating real estate – real estate occupied by the owner and used by him to implement his business processes (administrative, production, etc.). And the owner can build or buy, for example, a building to locate all his divisions in one place and at one address. Sometimes these buildings have more space than the owner needs, or there have been changes in the working process or in the structure of the company, then there is a question of leasing these areas for rent, which could bring the company additional income.
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.