Earlier this year, IREM hosted some major industry heavyweights in January for our first IREM Commercial Summit--from the institutional side were such names as Bentall Kennedy, Deutsche Bank, Inland Real Estate, New York Life Real Estate Investors and Principal Real Estate Investors. Also on hand were senior representatives from property management operations of all stripes--from independent regional firms to the management divisions of global brokerage houses. More on them a bit later.
An ongoing focus for IREM, of course, is the shifting, tightening relationship between asset and property managers, which was kicked off last year with a White Paper on the subject (www.irembooks.org). It also formed the meat of a lively discussion between both disciplines at the Summit. And while we'll protect the anonymity of the speakers, we thought you'd be interested in some of the comments the discussion inspired from both sides of the aisle--asset and property managers. We started with the institutions, and asked them:
Q: What do you look for in a property manager?
A: We have all five asset classes, so what we look for in property management varies with each class. But generally speaking, we look for firms that have scale to provide the proper resources. They can afford systems and technology and have specialists in place.
A: Good property managers focus not just on process, or checking off items on a checklist. The best property managers understand the value side of real estate.
A: The best property managers understand value and their impact on value, for example, a roof repair affects value.
Q: Do you prefer staff-based or outsourced property management?
A: Our U.S. model has always been based on...