Now is the Time to Better Understand Your Assets
With 2023's downturn in CRE Acquisitions, now is a great time to get to know your current Assets
The commercial real estate market has seen a major slow-down in 2023. Many indicators are pointing to a rough acquisitions market across the country. Many companies are reorganizing their plans and are looking at 2024 and beyond as a recover and catch up. But how many companies are actually looking at their current portfolio and where they stand with those current assets? This is an area that is getting overlooked and in most cases, is overdue and much needed. So, do you know your Assets? Now is the time to better understand your Assets, before it is too late.
When is the last time you have evaluated your assets and had them assessed? Now is the time to better understand your Assets!
CBC has seen many different scenarios take place over short and longer holds on properties. There are times, especially in a medium or larger portfolio of properties, when the Asset Management Team relies too heavily on the maintenance team to ensure that the properties are healthy and safely operational. Not to negate the fantastic work that maintenance teams do, but there are instances when properties experience issues that are not resolved effectively, life safety issues that are not identified or addressed, and capital budgets that are not corrected or established correctly in the first place.
These scenarios can happen with a one or two property hold and especially with a medium to large portfolio. Identifying, understanding, and then correcting the issues is not always easy when you are so close to the situation. Asset Management can be challenging and at sometimes overwhelming, CBC offers the tools to help you have a better understanding of your investments.
Asset Condition Assessment (ACA)
CBC offers Asset Managers an Asset Condition Assessment (ACA) as a tool to identify, understand, and address any needs with a property. As a part of the ACA, CBC provides a full list of services such as:
Capital Expenditures (Capex Budget)
The property inspection helps to establish the current condition of the property utilizing the ASTM Standards. This allows CBC to uncover any concerns with the property's current structure, roof, plumbing, electrical, drainage, and etc.
CBC will also take a look at any concerns and provide the following:
Life Safety Issues and Immediate Needs to address any items of immediate concern that needs be addressed.
These concerns will be presented in a table with cost to repair/remediate. CBC will prepare a 7, 10, or 12-year (client's choice on time-frame) Capital Expenditures Budget (Capex Budget) to address all capital needs over an extended period of time.
The Capex Budget works to identify individual capital expenditure needs on a yearly basis over an extended time frame, it also provides an inflationary rate over the yearly time frame and over the term along with a Per Unit cost (Multi-Family Properties).
CBC will generate an electronic report that covers all areas of the property utilizing the ASTM standards and will include the Immediate Needs table, CapEx Budget, and pictures.
Life Safety Assessment
One of the most important aspects for any Asset is to ensure that the property is secure and safe, and that any life safety issues are addressed immediately. However, many times life safety issues are missed by maintenance, staff, and management. CBC offers our clients the opportunity to have us perform a Life Safety Assessment on your properties to help you not only better understand any safety issues around your property but to identify and address those issues.
A Life Safety Assessment will provide you with a written conclusion of any life safety and immediate needs concerns noted during the property walk. It will also provide a Life Safety Table listing any life safety concerns that need to be addressed immediately, along with the estimated costs for those concerns.
Capital Budget Reserves & Expenditures
CBC can provide a Capital Budget Reserves & Expenditures for items that are considered a capital long term item. Examples of these items could be:
Drainage & Site
The Capital Budget Reserves & Expenditures breaks down the various items along with the cost and time frame needed to address these issues. The table provides for a 7, 10, or 12-year (client's choice on time-frame) break-out based on a yearly expenditure for items that are due to be addressed, along with an inflationary rate per year over the time frame.
CBC provides a Market Analysis of a property to help determine the viability of the property in several different aspects. A market analysis is commonly used in a pre-purchase aspect during the due diligence stage. This helps to better understand if the property being developed or purchased can sustain and grow over the long term within the parameters of the market in which it is located. A market analysis on a property, after the property has been purchased and is owned by a client, can provide many useful segments of information. The market analysis is mainly but not solely used to better determine the desire to keep the property or to liquidate it, or to better understand challenges within the market such as low occupation that may be due to unnoticed changes or extraordinary circumstances in the surrounding market area.
Get to Know Your Asset
Even if you think that you may know your asset(s), you would be surprised at what you may not know!
CBC's Asset Management Services are not designed to see how bad an Asset Management department is doing, it is designed for the exact opposite. We provide the tools needed to ensure that your assets are preforming at their very best.
We help Asset Management Teams to promote healthy assets and asset management, and we help Asset Management Teams to sustain and grow their place in the market. CBC provides the tools necessary to establish a stronghold on the success of current and future assets.
CBC works close with your Asset Management team to help assess, enhance, preserve, and protect the equity value of your assets.