The triade of asset, property, and facility management: : A corporate view to creating a model of key-value drivers for investors, owners, and users of real estate

Abstract

Companies are faced with the challenge of global competition, increasing technologicalization - accompanied by the need to protect the IT infrastructure,competition for employees, compliance with legal requirements such as product and occupational safety or environmental compatibility, positioning the company as sustainable, and the expectation of shareholders to generate profits. This list is an excerpt of the corporate context in which a company operates, without mentioning the actual product or service that is manufactured or offered. Unless it is an industrial production facility, personnel costs are the highest expense for a business on the balance sheet, followed by the building and equipment costs.The competition for the best workers is about the salary and image of the company,the working conditions, and the workplace environment. The core business operates within the framework of the supporting functions. These framework conditions are not left to chance in the Corporate World. In accordance with the core business, the Real Estate Management plans, manages, and controls how the building and the technical infrastructure are organized, what requirements there are for structural flexibility and the workplaces, the importance of ensuring safety for the users of the building, and the reliability of the technical infrastructure. Depending on whether the building is owned by the company or leased into a building, there may be different expectations of the building and infrastructure. The user wants a high degree of comfort, for example, to control the temperature himself and disputes the inadequate ventilationsystem or shading systems. While interested in the occupant's satisfaction, the owneris primarily oriented towards the property's profitability and wants to achieve the highest return with the least amount of investment. If the ventilation system and blinds are working and are not yet depreciated fully, the motivation for renewal will be very low.As described above, there are different interest groups:o the investoro the ownero the user These interest groups have their specialized representativeso Asset Managero Property Managerso Facility Managers.taking care of the second-highest cost factor within a company. Corporates' intention is to use the built environment in the best way.The investor's and Asset Manager's goal is to capitalize on the building. The owner and Property Manager intend to have the building fully leased and tenants who pay the rent reliably. The user's and Facility Managers objective is to have a building and infrastructure that support primary business processes, make them more efficient and productive.The roles and functions of Asset, Property, and Facility Managers are described in the literature. All are part of Real Estate Management. Each of them has their specialty. Despite attempts to classify Real Estate Management into a model, Asset,Property, and Facility Management are interpreted and defined differently within industry professionals and users despite expressed industry norms. The real estateindustry seems to overtake itself by creating new sub or superior levels of business or management approaches. This is partly because all these professions have overlapping areas in their competency, which might be evident by their contractual agreement to the parties involved but appear blurred to a client or exterior party. The source of information each of them is working on a specific building is the same.Being in a competitive environment, the question is, "how to create value-add through the collaboration for each profession and their client?". All three parties work on the same object and with the same installed technical systems. All three are interested in energy consumption, building utilization, maintenance and repair measures, and costs. All three want to be successful in their field. Based on literature and expertinterviews, this paper presents a model that conditions and arrangements are necessary to create a win-win situation and generate a competitive advantage for the involved parties.