Property asset management is employed by business organizations to efficiently manage their property assets. The idea is to provide a structured and integrated approach to the management of the company’s property assets. Implementation of this plan increases the efficiency quotient of the organization.
Property asset management falls under strategic asset management. It provides a synchronized, integrated and structured approach for the management of property assets. The aim is to effectively meet the set business objectives and deadlines. Property asset management comprises a strategic part and an operational part. Property assets of a business organization refer to its buildings, infrastructure and land owned.
Strategic Part of Property Asset Management (PAM)
It involves strategic decisions regarding:
- Investment on property assets and
- Meeting of service delivery needs
The bottom line is meeting the customer needs. The most important part of it is that these strategic decisions are essentially long run concepts. The focus here is on the medium run to the long run time frame. It is understandable since capacity creation does have a gestation gap. It should be noted here that medium term usually refers to a period of 3 to 5 years. Whereas, 10 years and above is a long run time framework.
Operational Part of PAM
The operational part of PAM focuses on property asset management in the short to medium run time frame. The budgetary allocation for the same is set at the strategic level. Budgetary allocations are made only after the investment decisions regarding them has been made. The operational part of PAM deals with property asset management within a department of a business organization. Hence, it is on a relatively microscale. It should be noticed here that short run refers to a time period of up to 3 years.
Property Asset Management Policies
Property asset management plans employ property asset strategies. Property asset strategies tell one which assets to acquire, dispose of, renew, maintain or improve. However, this is done only when other alternative options of investment have already been explored.
Property Asset Management plan formulates the asset strategy as a sequence of several integrated steps. In brief, they are the following:
Plans on Capital Investment
Plans on Asset Maintenance
Strategies on Asset Disposal
Plans for Workspace
Plus Points of Property Asset Management
Property asset management techniques promote efficiency. This is done through a more efficient facilities management performance, a refurbished leasehold management performance, improved work techniques and better management of workspaces.