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Thursday, 28th July 2022
The Six Benefits of Commercial Asset Management
Today’s business world is more competitive than ever before. Investors and companies that fail to adapt their operational strategies risk becoming obsolete. Technology has accelerated the rapid pace of change, and businesses that don’t adopt new tools and techniques won’t survive. Operational excellence is a critical component in today’s digitally-driven business environment. Businesses must optimize their performance, increase efficiencies, and reduce costs across all areas of their company. Strategic Asset Management can help investors and companies optimize their commercial property portfolios, streamline operations, and reduce costs by monitoring real estate usage and maintenance expenses. This article discusses six benefits of commercial asset management and how adopting it can help you succeed in the marketplace.
Monitor your asset value
One of the key benefits of implementing a successful strategic asset management plan is being able to accurately monitor the value of your commercial assets. This information can help investors identify areas of potential growth, as well as possible risks, associated with their real estate portfolio. When you know the specific value of your property assets, you can better assess the impact of any changes to those properties. For example, if you decide to implement a capital expenditure program to upgrade services or a foyer etc, the costs of that program will impact the property value. Knowing the value of your real estate assets is also important when it comes to insurance coverage. If a fire damages a building, the cost of repairing it will depend on the property’s value. Investors with a comprehensive strategic asset management plan can better understand the value of their commercial property assets, facilitating the process of obtaining appropriate insurance coverage.
Streamline your operations
A second benefit of implementing a successful strategic asset management plan is being able to streamline your operations. This occurs when you have visibility and control over the various assets in your portfolio. When you have visibility into the status of your office buildings, warehouses, and other assets, you can optimize their usage and enable your Asset Manager to be more productive. An effective strategic asset management plan can help you make data-driven decisions that improve your portfolio's performance.. A strategic asset management plan can help investors better utilize their assets by increasing visibility into these assets’ status.
Reduce costs with smart maintenance strategies
A third benefit of implementing a successful strategic asset management plan is being able to reduce the costs associated with maintenance. When you have visibility into your assets’ usage and characteristics, you can employ a more strategic approach to maintenance. This enables you to reduce costs by only performing maintenance when it’s necessary, as opposed to performing irrelevant preventative maintenance every year. Commercial asset management systems also enable you to better track and record maintenance expenses, facilitating the process of securing funds to cover those expenses. This ensures that the right level of funding is available to perform necessary maintenance.
Proactively identify problems
A fourth benefit of implementing a successful strategic asset management plan is being able to proactively identify problems. This occurs when you have the necessary data and tools to identify issues that may affect your commercial real estate assets. This could include structural problems, fire hazards, or other potential issues. When you have visibility into your property assets, you can detect potential problems and take action to prevent them from becoming issues. This enables you to reduce the likelihood that issues will develop into costly problems. It also provides you with the opportunity to fix those issues before they become costly problems to solve.
Provide a platform for contractors training and development
A fifth benefit of implementing a successful strategic asset management plan is being able to provide a platform for contractor training and development. When you have visibility into the use of your assets, you can see where your tenants and contractors are spending the most time. This data will help you identify the best places to spend your capital and equip contractors with the tools and training they need to best perform their jobs, along with providing an environment conducive to productivity.
Provide a test bed for new technologies
A sixth benefit of implementing a successful strategic asset management plan is being able to provide a test bed for new technologies. This occurs when you have visibility into the characteristics of your commercial property assets. This visibility will help you identify the best places to implement new technologies and determine if they will meet the needs of your property. When you have the necessary visibility, you can use your commercial property assets to test new technologies and determine if they will be a good fit for your property/portfolio. This enables you to determine which technologies are worth investing in and which aren’t worth the investment.
Bottom line
A successful strategic asset management plan has many benefits. It can help you monitor the value of your property assets, streamline your processes, reduce maintenance costs, identify problems proactively, provide a platform for workforce training and development, and provide a test bed for new technologies.