The process of facility management can be a real income earner in commercial real estate brokerage. In itself, facility management is an offshoot of commercial property management, focusing on safe and economic operations of a property asset. It requires specific and specialized processes and people to take over the day to day operations of a commercial, industrial, or retail property.
The size and type of property worked on together with its location will have a lot to do with the complexity of the facility management (FM) process to be established; that will then dictate the number of people needed for the job, and the systems and processes to be applied.
Here are some of the key targets that are normally achieved through the establishment of a facilities management property model:
- The provision of specialized people to manage the site(s) given its complexity, layout, plant and equipment and operations.
- The establishment of budgets and standards to apply to each stage of the facility and its operation.
- The identification of risk and return so that the asset can be correctly managed to a positive outcome given the existing factors of risk.
- The compliance of the property to all codes of compliance, safety, occupancy, and building standards.
- Efficiencies in consumables such as energy, water, gas, and lighting.
- Establishment of systems of control to keep the property and building functioning at appropriate levels and standards for all stakeholders.
- The transference of complex property operational factors to a specialised group where appropriate experience and control can be provided.
The facts of the matter are simple; some property owners are not well suited to running assets operationally and economically. That’s where the specialists can step in and help out. Moving the property risk and operations to a specialized firm of skilled people is a wise move.
Larger FM Properties
The largest properties suited to facilities management are typically:
- Retail Shopping Centers
- Industrial parks
- Large office buildings
- City malls and precincts
The larger commercial real estate brokerage firms typically have a ‘facility management’ arm of the business to cater for this unique part of the industry.
The Best FM Clients
The targeted clients looking for this service are usually in the following categories:
- Property trusts
- Municipal Councils
- Large portfolio owners
- Shopping Center Owners
- Property Developers
So this is a segment of the property market that offers real opportunity for the right people and large brokerages where the right skills and knowledge exist. Facility management is normally a partnering process between the client and the brokerage, with key performance indicators and operational standards applying. Significant fees can apply for the right property project and services.