Building Analysis In Real Estate Portfolio Management - A Market-Based Assessment Tool

"In the context of profitability analyses of office real estate the income return and capital growth are taking the center stage. The provision of information concerning office buildings is often concentrated only on the respective market conditions, locations and the rent level resulting from this. Qualitative requirements of the office market in terms of occupants expectations on building attributes most play an underpart, although office buildings can absolutely be the cause of lower rates of return. For the assessment of the marketability of office buildings and their impact on the rent level, assessment tools are needed. The use of these tools may make the difference between success or failure in an ever-increasing competitive environment such as the actual German office market. With the present paper a multi-level analysis to evaluate portfolio properties is presented. This analysis is based on Quality Function Deployment (QFD), a strategic methodological approach for the preventive quality management of a systematic product and process planning. The root of the QFD approach is to transform ""the voice of the occupant"" into product attributes. To assess occupant satisfaction, the attributes are assigned with specific target values that are checked against the occupants needs. In addition the presented analysis includes an assessment of the adaptability of the identified weaknesses of portfolio properties to the occupants` requirements. The purpose of this paper is to present an adaptable, transparent technique that enables an assured assessment of the marketability and sustainability of portfolio properties. The result of the analysis is used to support decisions in the further handling of portfolio properties."