Carsten Watermeier, Managing Director at Real I.S. Property Management GmbH
Active property management can contribute to the success of a real estate investment. This is because it involves much more than just managing properties. In fact, professional property management is a key element in comprehensive real estate management, with the aim of creating and maintaining value over the long term. This is especially true in strained phases of the market, such as we are currently experiencing. This is because property management is in touch with tenants and with what is happening on the market. It can support investment management and asset management in reacting quickly and efficiently to changes, while also offering space that meets market requirements over the long term.
Ultimately, active and tenant-focused property management helps to raise tenant satisfaction as well as reducing fluctuation and vacancy rates. The fundamental features of a property are naturally also important for properties' attractiveness to potential tenants, such as location and structural condition. Yet property management also has a major influence on high occupancy rates and, ultimately, on the growth in the value of the property and on the performance of the portfolio.
Real I.S. manages assets worth around EUR 2.4 billion
For more than 30 years, Real I.S. has consistently focused on generating value-added with comprehensive property management for our customers, retail and institutional investors. On 1 January 2022, the Group’s property management resources were bundled in one company: Real I.S. Property Management GmbH. The volume of assets under management is currently worth EUR 2.4 billion. The portfolio covers a total leasing area of around 750,000 square metres and approximately 50 properties. The company has a regional presence in Berlin, Hamburg, Jena, Leipzig, Dresden, Munich and Stuttgart. In addition, we manage five mandates for third-party customers.
Our Property Management team has expertise in a broad range of areas – from technical building services through architecture to facility management and legal issues or IT tools.
What constitutes successful property management is summarised once again below.
1. Local offices
Proximity to tenants is a key factor in responding quickly to their wishes and reacting flexibly to changes, and for developing a general feeling for tenants' needs and market trends. The property manager does not have to be located in the same building, but some sort of local presence does play a major role.
2. Regional market know-how
A good knowledge of the market is highly important not only in asset and investment management. Property management also has to be in tune with the regional situation: customers in Hamburg, for example, have different requirements than those in Munich. A local presence and dialogue with tenants can also generate valuable input, including ideas to optimise investment and asset management.
3. Consistency in customer support
Regular and, above all, personal communication with tenants creates a relationship of trust, leading to greater tenant satisfaction and, ultimately, to lower fluctuation rates. This constant interaction also ensures that property management knows the tenants (and vice versa, of course), and can respond accordingly to their needs.
4. Transparency and openness
Presenting facts and challenges clearly: this is the key to finding joint solutions with the tenant. Open and transparent communication enables properties to be managed well, even in difficult market situations.
5. High-quality leasing strategy
Property management should develop a long-range leasing strategy together with asset management. This includes an optimal tenant mix, for example. That also has an impact on the future viability and stable value of the property.