In the market economy, real estate management is characterized by a variety of forms of interaction between the owner of real estate and the real estate manager. This is due primarily to the fact that theoretically the most developed form – the provision of services by a management company on the basis of a trust management agreement – is not always the most effective with regard to the state of legal regulation of trust management, tax legislation, individual characteristics of real estate, the level of trust the owner has in the property manager. That is why the starting point of real estate management is the definition of strategic real estate management objectives for each of the main participants in the real estate market.
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.