Commercial Property Asset Management: Strategies For Increasing Occupancy Rate Essay.

Discuss about the Management of Property Asset.

The commercial property asset management is known as the strategies for reducing the overall operational costs for building properties thereby enhancing the values of the properties. It has been found that effective asset management is becoming very much crucial for the investors to obtain returns from the market for the commercial property. The owners of different properties are demanding for various kinds of strategic approaches that can be utilized for management of assets on a long-term basis.

Primarily, the research concentrates on the methodology of the research followed by the analysis and SWOT analysis of the property asset. The discussion then continues with the strengths, weaknesses, opportunities, and threats of the property asset management. The discussion then continues with the evaluation followed by the recommendation for improvement. Finally, the report ends with a conclusion.

According to the given case study, it has been found that the chosen client for the research has three commercial buildings of his own and which were sited exactly at the central portion of Singapore where the occupancy rate has reduced below the expectation of the market. This particular issue has created a problem for the client and which requires better mitigating measures for keeping the organization sustainable thereby improving the rate of occupancy. The risk and understanding the requirements of the customers are also needed to be assessed (Fang et al. 2016). The occupancy rates are very much crucial for the investors of real estate and which can be increased by performing careful research related to the competition in the market and better marketing tools need to be utilized by the owners of the real estate to attract the customers with great ease.

The present issue which is being faced by all the real estate investors is the reduction of the occupancy rate that is below the market expectation. The lowering of the occupancy rate of real estate is due to the issues with quality regarding the property valuation (Murphy 2017). The current research study is going to concentrate on identifying various recommendations for enhancing the occupancy rate thereby maintaining the market sustainability followed by understanding the requirements of the customers.

According to the research it has been found that the human population is increasing in an exponential manner and for that reason, the supply of land is getting limited. This condition results in price inflation of the land that is present in Singapore but having three commercial buildings situated at the same place resulted in a reduction of occupancy rate. The most crucial trends of the real estate market in Singapore in the current year are as follows:

1. En bloc frenzy: Based on the research of Christine Li it has been found that 18 residential projects with a valuation of $6.34 were spent by the developers of real estate with the help of En bloc frenzy.
2. Rebounding of price: Due to the price rebound, it can be seen that the homeowners and developers of Singapore will able to sell their properties in higher rates.
3. Revolution of PropTech: The developers of properties in Singapore are concentrating on the implementation of new technologies for building innovative constructions followed by creating a connection with the developers of other projects (Byrne 2015).

SWOT Analysis of Commercial Property Asset

SWOT analysis is considered as the framework that is being utilized for evaluating the competitive position of the organization with the identification of strengths, weaknesses, opportunities and also the threats that are associated with the organization. SWOT analysis is known to be the foundational structure which helps in measuring the performance of the organizations related to the potential threats and opportunities. This particular SWOT analysis is going to identify the issues related to the occupancy rate that is associated with the three commercial buildings situated at Central Area of Singapore.

The site that has been selected for investigation has a comprehensive transportation network with the whole city. Moreover, the place has flawless network connectivity via underground support. There is a local financial hub present in the central area of Singapore. The sea view from the three buildings is also uninterrupted.

The occupancy rate got reduced below the market expectation due to the investment of the huge amount of money for buying the land followed by spending enough money for the development purpose (Byrne 2016). The other buildings that are present in the central area of Singapore are iconic with respect to the development concepts. 

During the research, it can be analyzed that various kinds of large multinational corporations can plan to relocate into the central area of Singapore for their own stability and which in turn can help to make those three buildings active for professional usage. Singapore is becoming a dynamic and vibrant district which will provide kinds of opportunities for enhancing the occupancy rate by upgrading the market expectations (Haneef, Kamil, and Ayuniyyah, 2017).

After the research it has been found that the interest rates related to the borrowing of land in the central area of Singapore are going to rise exponentially that is considered a threat (Haneef, Kamil, and Ayuniyyah, 2017). It can be seen that the existing companies in the central area of Singapore may try to decentralize away from the locality.

After the analysis of the overall research, it has been evaluated that the chosen site for the three buildings has a good transportation network followed by underground network connectivity (Viglia, Minazzi, and Buhalis, 2016). A local financial hub is also present near the three buildings which are a positive symbol for increasing the occupancy rate in the future. Moreover, it has been found that a huge amount of investment is required for running the three buildings which may hamper the occupancy rate to some extent. Research has found that many large multinational organizations can shift to the central area of Singapore which is going to enhance the occupancy rate followed by making the chosen organization sustainable in addition with fulfilling the requirements of the customers. The increase in the interest rates may result in reducing of the occupancy rate which is regarded as the threat for the organization. 

Evaluation and Recommendation for Improvement

After the analysis of the overall research, it can be recommended that creation of promotions and exciting packages can result in increasing of the occupancy rate for meeting the expectation of the market (Viglia, Minazzi, and Buhalis, 2016). Moreover, it is necessary to make a partnership with the local business heads for settling in a proper manner within the central area of Singapore. For making the organization sustainable in nature it is necessary to involve all the employees of the organization by explaining to them the ways to make the firm sustainable (Frias?Aceituno, Rodríguez?Ariza, and Garcia?Sánchez, 2014). Then, it is necessary to have a discussion with the competitors for getting detailed information about the expectations of the customers.

Conclusion

After the analysis of the overall research it can be concluded that the effective asset management is becoming very much crucial for the investors to obtain returns from the market for the commercial property. The primary issue is related to the downfall of the occupancy rate in comparison with the market expectation. The researchers have analyzed the fact that occupancy rates are very much crucial for the investors of real estate and which can be increased by performing careful research related to the competition in the market and better marketing tools need to be utilized by the owners of the real estate to attract the customers with great ease. The occupancy rate can be increased with the development of exciting packages and promotions followed by making a partnership with the local business. Thus to make the firm sustainable, it is necessary to involve all the employees of the organization by explaining to them the ways to make the firm sustainable.

References

Byrne, M., 2015. Bad banks: the urban implications of asset management companies. Urban Research & Practice, 8(2), pp.255-266.

Byrne, M., 2016. ‘Asset price urbanism’and financialization after the crisis: Ireland's National Asset Management Agency. International Journal of Urban and Regional Research, 40(1), pp.31-45.

Fang, H., Chang, T.Y., Lee, Y.H. and Chen, W.J., 2016. The impact of macroeconomic factors on the real estate investment trust index return on Japan, Singapore and China. Investment Manage. Finance. Innov, 13(4-1).

Frias?Aceituno, J.V., Rodríguez?Ariza, L. and Garcia?Sánchez, I.M., 2014. Explanatory factors of integrated sustainability and financial reporting. Business strategy and the environment, 23(1), pp.56-72.

Haneef, M.A.M., Kamil, N.K.B.M. and Ayuniyyah, Q., 2017. DEVELOPMENT OF WAQF IN INDONESIA: THE SWOT ANALYSIS OF INDONESIA WAQF BOARD (BWI). Al-Infaq: Jurnal Ekonomi Islam, 8(2).

Murphy, L., 2017. Globalising commercial property markets: the development and evolution of the listed property trust sector in New Zealand. In Globalising Worlds and New Economic Configurations (pp. 89-100). Routledge.

Viglia, G., Minazzi, R. and Buhalis, D., 2016. The influence of e-word-of-mouth on hotel occupancy rate. International Journal of Contemporary Hospitality Management, 28(9), pp.2035-2051.

Viglia, G., Minazzi, R. and Buhalis, D., 2016. The influence of e-word-of-mouth on hotel occupancy rate. International Journal of Contemporary Hospitality Management, 28(9), pp.2035-2051.