Property managers in transition: New challenges for the real estate industry

Property managers in transition: New challenges for the real estate industry

The role of property managers is currently undergoing profound change. Amid increasing cost pressures and more complex reporting requirements, property managers must adapt more than ever. Report like that The press that the areas of responsibility in administration are increasingly moving towards comprehensive services. Traditionally viewed as “unspectacular”, the challenges are increasing, particularly in commercial real estate. This situation requires a rethink as the requirements of tenants, especially international companies, are changing.

The central challenge is increasing costs arising from recurring operating costs and maintenance costs. Andrea Dissauer, Managing Director of PMV Immobilien Management, emphasizes that there is less and less time for classic property management tasks. Commercial properties often have fewer tenants per square meter, which reduces the organizational effort but at the same time requires more intensive support measures.

ESG requirements and reporting

A key aspect that is becoming increasingly important is ESG requirements. These not only have to be implemented technically, but also coordinated by the tenant. According to the Wüest Partner analysis, ESG ratings are becoming increasingly important for the valuation and preservation of the value of real estate. These ratings assess the ESG compliance of properties and companies and provide information about their sustainability. A variety of rating methods, such as the ECORE scoring, which was introduced in 2020 by the ECORE industry initiative, makes comparability within the real estate industry easier.

The reporting requirements have increased. It is no longer enough to simply bill operating costs; Comprehensive ESG reporting now also needs to be created. These integrate different systems and often have to be mapped in their own customer systems. The use of Excel spreadsheets for data collection is common, but not without controversy as there is often a lack of standardization.

Technological developments and challenges

In order to meet the new requirements, many property management companies are relying on IT solutions and automation systems. Standard processes such as billing and appointment scheduling are increasingly being handled via IT platforms. The harmonization of IT interfaces remains a challenge, as different owners often have different reporting needs.

Building technology is becoming increasingly complex. Modern heating systems and smart building technologies require specialized knowledge. This means that property management companies are developing from pure managers into comprehensive service platforms. A larger range of work and increasing specializations, for example for shopping centers, hotels or student residences, are necessary in order to survive in the competition.

Personnel and economic aspects

A central concern remains the recruitment and retention of qualified personnel. The increasing expectations of modern working models, flexibility and work-life balance pose an additional challenge. Despite rising salaries and operating costs, property managers often have to balance regulated management fees. One of the biggest challenges is therefore finding economically viable solutions that maintain quality for both owners and tenants.

The development of property management shows how important adaptability and innovation are in a changing industry. With more stringent ESG requirements and more complex operational requirements, property managers remain challenged to align and optimize their strategies accordingly.