КОМПЛЕКСНОЕ АДМИНИСТРАТИВНОЕ УПРАВЛЕНИЕ НЕДВИЖИМОСТЬЮ В БАКУ
Ингольф Бурштедде
14050, Берлин, Лейстиковское штрассе 6, Берлин, Германия, доктор-инженер, почетный проф. СГГА, моб. +49 / 171 / 5526 113, тел. +49 / 30 / 3641 0552, факс: +49 / 30 / 3641 0553, email: ibu@gmx.com
Дается общее описание предпосылок, компонентов и задач комплексного административного управления недвижимостью. Рассматриваются и анализируются деловые партнёры и процессы. Определяется современная форма организации, распределения служебных функций и функций управления объектами. В заключении рекомендуется внедрение специального программного обеспечения в ежедневный процесс работы.
Ключевые слова: деловые партнёры, бизнес процессы, организация, инструментальные средства, программное оборудование.
CORPORATE REAL ESTATE MANAGEMENT IN BAKU, AZERBAIJAN
Ingolf Burstedde
Prof. h.c. Dr.-Ing., LeistikowstraBe 6, 14050 Berlin, Germany, mobile: +49 / 171 / 5526 113, tel: +49 / 30 / 3641 0552, fax: +49 / 30 / 3641 0553, email: ibu@gmx.com
A general description of the background, the components and the goals of corporate real estate management is given. The usual business partners and business processes are described and analyzed. A modern form of organization, separating the service functions and the object management functions, is defined. Finally it is recommended to implement specialized software to support the daily work.
Key words: business partners, business processes, organization, tools / software
1. INTRODUCTION
This paper is based on a consulting contract in Baku, Azerbaijan in November / December 2011. The client was a private company being responsible for the management of different business centers and residential real estate. As its business activities are expanding right now, the company was interested to professionalize its business processes and organization.
2. WHAT IS CORPORATE REAL ESTATE MANAGEMENT?
Corporate Real Estate Management (CREM) refers to the success and value-based purchasing, managing and marketing of real estate which belongs to companies, whose main business does not have a property-specific focus.
2.1.Background
During the last 20 years there was a large restructuring of the economy worldwide. This process is still going on. An unusually high level of capital is related to
this process. In this context the own property of a company is more and more considered as an important resource for the financing needs of businesses. To-day we see a total of five corporate resources: Work, Capital, Technology, Information and Real Estate.
The understanding of the resource “property” has changed significantly in the last years. The classic property management has been replaced by an independent corporate business unit, or at least by a profit center with market-level management. In this sense we speak today of "Corporate Real Estate Management”, in which a profit or a value contribution to the economic success of the company is in the foreground. It should be noted that a large portion of real estate worldwide is in the ownership of companies.
Taking into account, that corporate cash money is sometime blocked or invested on a long term basis, the corporate real estate has become one of the important factors supporting the company with liquid capital.
As a result of this, the property related departments had to be professionalized. Some of them were outsourced as independent profit centers.
2.2.Components of the CREM
Corporate Real Estate Management is a goal-oriented grouping of different instruments. Depending on the structure and orientation of each company, there are mainly three important components of CREM:
- Information Management is the information about markets, competitors and users, and detailed analysis based thereon.
- Corporate Land Management is the quantitatively and qualitatively optimal use of the existing areas including self use, rental, sale, demolition, new construction, area expansion, area reduction etc.
- Facility Management (FM) is the integrated and comprehensive management (= operation) of properties, divided into Commercial, Technical and Infrastructural Facility Management.
2.3.Goals of CREM
The main goal for the Corporate Real Estate Manager is to generate a monetary benefit for his company. That means in specific:
- Recognising and realising of so-called "non-operating real estate",
- Detecting of cost reduction potentials wherever,
- Realising gains without changing or disturbing the core business of the
company,
- Searching the lowest possible vacancy in the company’s real estate,
- Looking for expandability, flexibility and adaptability to changes in the
company’s business,
- Increasing the profitability of the company as a whole and thus making a significant contribution to corporate success,
- Minimizing of long term real estate costs,
- Avoiding unused, unnecessary, inefficient or occupied property,
- Creating of functional and cost effective options for future expansions,
- Generating cash flow,
- Generating tax benefits and finally
- Managing the property efficiently.
2.4. CREM as a planning tool
Corporate Real Estate Management is not just an operating task. It also has a planning component. During the time of construction of a new building it is always important to find the right balance between two different, sometimes excluding goals:
- Minimizing the constructing cost and
- Minimizing the future operation cost.
The constructor is always interested to complete the building within his budget or even below. The corporate real estate manager, however, must be interested to minimize the future operation cost, before the building is finished. Examples:
- A painted fa?ade is cheap in construction but expensive in maintenance.
- Some materials for the floors inside a building are cheap to be installed but
very expensive to be cleaned.
- Open space in a building reduces the construction cost but requires useless
cost
- For cooling, heating, maintaining and cleaning.
He, as the “Voice of the future tenant”, takes over an important role in the planning team, where he has to fight for:
- Enough parking space,
- A high degree of flexibility in the building’s use,
- Optimal room partitions,
- An attractive interior design (materials, colors, decorations),
- Modern technical equipment (for example: high speed internet cabling),
- Energy saving power supply systems etc.
3. BUSINESS PARTNERS
The business processes during operation are considered to be Facility Management (FM) as described in Chapter 2.2. The business partners of the facility manager are: the owner, the tenants and external partners as for example power supply companies, technical service companies or others (see Fig. 1):
Fig. 1
4. BUSINESS PROCESSES
The business processes between the partners are divided into Commercial Facility Management, Technical Facility Management and Infrastructural Facility Management as already said above.
4.1.Commercial Facility Management
The field of commercial facility management includes the following processes:
Annual budgeting
This is the economic plan for the following year. The budget should include and specify the estimated cost for personnel, material, services, maintenance, repairs, representation etc. depending on the owner’s requirements. The owner himself has to check, if necessary correct and finally approve the budget.
Contract management
This includes all kind of contracts as for example: lease contracts with the tenants, supply contracts with the energy supply companies for electricity and water, contracts with insurances, service contracts with private or public companies for technical maintenance and others.
Procurement
If not managed by a centralized organization unit in the company, the commercial facility manager will be responsible for the purchasing of goods, materials and services as well as for the management of tender procedures and the evaluation of offers.
Finance accounting
This is the normal bookkeeping procedure in accordance with the existing local rules and regulations.
Inventory
Inventory means the documentation (and permanent updating!) of all fixed and movable equipment, which belongs to the building.
Controlling, reporting, benchmarking
That is the calculation and analyse of key numbers for different business fields as for example: “area cost per user”, “total operation cost per sqm and year”, “maintenance cost per sqm and year”, “energy cost per sqm and month”, “cleaning cost per sqm and year”, “grade of occupancy in %” and many more.
Space optimization
The commercial facility manager has to check permanently, how the building is used and whether the existing space can be optimized.
Invoicing / money transfers
Finally all kind of invoices and money transfers have to be directed as for example: the coming in invoices for electricity and water consumption, internet use etc. as well as the going out invoices for the tenants' rent and extra cost.
4.2. Technical Facility Management
Technical maintenance
The technical facility manager is responsible for all kind of technical planning, operation, maintenance and repair. That includes: electricity, water,
telecommunication, internet, intranet, lifts, other building equipment etc. in the whole building (public area and tenant„s area).
Technical supervision
That is the instruction and supervision of the workers (painters, carpenters, electricians etc.) from external business partners.
Energy optimization
The technical facility manager has to look permanently for possible solutions to reduce the energy cost as much as possible.
4.3. Infrastructural Facility Management
Cleaning
The infrastructural facility manager is responsible for the cleaning of all public areas in the building. It can also include the cleaning of the tenant’s areas on their demand.
Front desk
A front desk service for the reception, control and information of external visitors of the building should be provided.
Security
The building has to be protected and controlled by security personnel as well as the parking area(s).
Further possible services
It should be considered, whether the company is able and willing to offer additional services to the tenants and their customers, once the building is in use. This could be: catering, kitchen services, move services, transportation, courier services, conference room services or event management (i.e. exhibitions, jubilees or other events). The total offer of services makes the building more attractive for the tenants and enables them to get concentrated on their core business.
5. ORGANISATION
A modern FM-organization should take over the structure of the described business processes in Chapter 4 and, at the same time, the different operational objects of the company, such as the different business centers, shopping malls, underground passages etc.
On the left side there are the so-called Service Departments (commercial, technical and infrastructural facility management). These functions should able to handle their business processes as described in Chapter 4.
On the right side there are the so-called Object Managers, representing the company “face-to-face” to the customers / tenants in the different objects.
Normally the object managers do not have own personnel. The personnel are concentrated in the service departments. So, their employment can be directed in a more flexible way.
The more general working functions Marketing/Sales and Human Resources are considered to be a so-called staff position reporting directly to the CEO.
... Staff ... Service ... Object
Positions Departments Managers
Fig. 2
6. CAFM - SOFTWARE
A CAFM (Computer Aided Facility Management) system is needed to support the business processes of the company in a professional way. In Germany there are at least 20 different CAFM-systems on the market, as for example:
AcadGraph, Aperture, Arcadis, Archibus, Archikart, AT+C, Axxerion, Bentley Sytems, BFM-Key Logic, Byron, Cideon, Com In, conject, eTASK, FaciWare, FMCD, iffm, IMSware, infas, enermetric, INFOMA, Kessler, KMS, Loy & Hutz , N+P, Nemetschek, OneTools, pit-cup, Planon, sLAB-EuSIS, SMB, sonixc, spee-dikon FM, Syskoplan, Topdesk, Voigtmann, 5DInfo and others.
All these systems offer different but similar software modules especially programmed for the daily needs of the facility manager.
7. FINAL REMARKS
All these recommendations cannot be implemented is short time. It is a process of years, until everything is running smoothly. The existing organization has to be changed; the business processes have to be defined in detail; the responsibilities have to be fixed; the technical specifications for the new software have be worked out; the software has to be implemented; the personnel has to be skilled; rules and regulations have to be worked out etc. etc.
At the end there is a great chance that the business of Corporate Real Estate Management is running more efficiently than before, that the service quality will be improved distinctly and that a high percentage of internal cost will be saved. BIOGRAPHICAL NOTES Studies:
- Studies of Geodesy at Technical University, Berlin Professional stations:
- German Development Institute, Berlin
- CERN, European Centre of Nuclear Research, Geneva, Switzerland
- UNESCO, Yogyakarta, Indonesia
- Technical University, Berlin
- German Society for Retreatment of Nuclear Waste, Hannover
- Stadtwerke Dusseldorf AG, Dusseldorf
- IBU Consult Ltd., Berlin (own company)
Academic degrees:
- Dipl.-Ing. (TU Berlin)
- Dr.-Ing. (TU Berlin)
- Prof. h.c. (Siberian State Academy of Geodesy, Novosibirsk, Russia)
Memberships:
- VGB - Technische Vereinigung der GroBkraftwerksbetreiber e.V., Essen (Chairman of the Committee „Surveying“; 1984-93)
- AIV - Architekten- und Ingenieurverein Dusseldorf e.V. (Member of the Executive Committee; 1999-2005)
- DVW - Deutscher Verein fur Vermessungswesen (Member)
Publications:
- Various publications about geodetic networks and information systems Actual activities:
- Lecturing (Siberian State Academy of Geodesy, Novosibirsk, Russia)
- Consulting (Iran, Russia, Namibia, Albania, Indonesia, Azerbaijan)
CONTACTS
Prof. h.c. Dr.-Ing. Ingolf Burstedde LeistikowstraBe 6, 14050 Berlin, Germany Mobile: +49 / 171 / 5526 113 Tel: +49 / 30 / 3641 0552 Fax: +49 / 30 / 3641 0553 Email: ibu@gmx.com
© I. Burstedde, 2012