Real Estate Management – Strategy and operational business model for achieving greater efficiency

The demand for real estate is increasing, the real estate market is on the move, all forms of existing real estate are professionally and efficiently managed, tenant demands are getting more complex and expected returns on yield are ambitious: to deal with this changing real estate environment, coordinated strategies and suitable business models are essential, but often also across borders. With over 300 billion euro gross value added and over 85% share in German fixed assets, paying attention to the real estate market and its developments definitely pays off, particularly as it is the largest sector of the economy in Germany.

Institutional quality and industrial strength for professional real estate manager

In the real estate sector, the demands for transparency and efficiency in management of real estate assets are vigorously increasing. Especially the demands for transparency are being intensified on and on not least by; owners, users, authorities and outside creditors. Real estate businesses must meet these demands and adapt their planning and taxation, management concepts, organisation, outsourcing processes and systems, purchasing strategies and employees, in order to deliver a competitive performance in line with the real estate market. They have to reinforce their competitive factors.

Corporate real estate management

Land intensive industries such as trade, production, transport and logistics also regularly review their real estate strategy and their real estate and infrastructure management in order to improve both efficiency and effectiveness. Achieving consistent value as well as infrastructure and work in line with market conditions is paramount in order to identify fields of activity in the development of solutions and their implementation.

PwC develops tailored solutions for the real estate market, supporting companies with future sustainable orientation.

Range of consultancy services available:

• Corporate strategy – International growth, digitalization, flexibility, operational excellence, market entry strategies, investment platform strategies
• Portfolio strategy – value-based portfolio and risk management, portfolio and investments strategy, flexible and bundled investments structures, manager selection, optimization of costs and income
• Efficiency – strategic and organizational setup, benchmarking, process optimization, lean management, capacity measurement, strategic cost reduction
• In- and outsourcing – purchase strategy, economic efficiency analyses of make-or-buy, development of performance specifications and service-level-agreements (SLA), selection of manager and partners through structured tendering: e.g. funds manager, administrators, depositories, property manager
• Risk management and compliance – regulatory risk controlling, strategic and tactical opportunities and risk management, reporting, government and compliance, control systems
• Finance market and monopoly regulation – KAGB, Mifid, EMIR, Solvency II, InvStG identification – strategic and operational implementation of industry regulations in strategy, business and operating model and/or reporting
• Reporting, technology and digitalization – digitalization strategy, big- and smart-data, Business Intelligence, process automation, E-Reporting, requirements and selection of systems for property management, technical concepts

Industry expertise

• Asset / Investment Management – optimization of processes e.g. purchase and sale, leasing, data management, controlling etc. for operational excellence or lean management, international location strategy, adjustment of the real net output ratio along the interfaces for external services
• Corporate / Public real estate Management – management and IT-concepts for areas and infrastructure, control and valuations models (KPIs) for real estates, demand-oriented space utilization, benchmarking of the costs of real estate and management according to location / property
• Housing economy – organization of new buildings, portfolio management, maintenance strategy, process optimization and capacity adjustment
• Property and Facility Management – Transparency of the Service Level and costs to do with acquisition and purchase, tendering procedure and negotiations, optimization of contracts, ancillary costs analysis

With our worldwide network PwC advises; corporates, property companies, real estate portfolio managers and the public sector. We offer comprehensive solutions at global and local levels and comprehensive expertise in all types of usage such as housing, offices and trade to operational and specialist properties.