Nomenclature, Scope Of Service, And Interfaces Of Real Estate Investment-, Portfolio-, Asset-, Property And Facility Management Based On The Ìbasic Concept Of Real Estate Managementî

Everybody uses the terms and there are multiple definitions as well as a heterogeneous understanding of ìReal Estate Management (REM)î aspects. What has been missing is a unifying framework that integrates existing knowledge of REM, logically structures those topics, is expandable for new developments, and at the same time ensures consistency with other fields of business administration, especially Finance. Therefore, the authors propose such a thorough, logical and sustainable framework named the ìBasic Concept of Real Estate Managementî. Focal points of the paper at hand are the management levels and perspectives of REM for which a standardized nomenclature is introduced. In addition, the framework and the nomenclature are concretized by describing the scope and tasks of specific REM services and their interfaces. The specified REM services are the ìReal Estate Investment Management (REIM)î on the investment level, the ìReal Estate Portfolio Management (REPM)î on the portfolio level, the ìReal Estate Asset Management (REAM)î on the strategic object level, and the ìProperty Management (PrM)î as well as the ìReal Estate Facility Management (REFM)î on the operative object level. Those services are characterized and defined and their individual scopes as well as their tasks within the management cycle are described in detail. Commonalities and differences between the ìreturn-orientedî and the ìuse-orientedî perspectives are pointed out where necessary. In addition, the authors suggest a new term ñ ìInstitutional-Investment Real Estate Management (IIREM)î ñ for the management concept that covers institutionally owned real estate assets that are managed with the goal to optimize total return, risk, and liquidity, thereby complementing the ìCREMî and ìPREMî concepts and clarifying the confusing use of ìREIMî in Germany. The attempt to logically and consistently define and standardize the nomenclature of REM and to systematically associate REM services with their respective management tasks is by no means a theoretical exercise; instead it provides the preliminaries to clarify and manage the interfaces between involved participants that in all areas of REM are resulting from increasing focus and specialization. Thus, the paper lays the ground for easier communicating and contracting of parties, for effectively organizing companies, and for designing jobs that fit, in sum, to optimize performance, the overarching goal of real estate management.