Credit Crunch Shifts Emphasis to Top-Notch Management Skills for Driving Commercial Property Values, Says IREM(R)
CHICAGO, Feb. 4 /PRNewswire-USNewswire/ — “As the sub-prime mortgage crisis depresses the commercial credit market, which until recently had fueled soaring real estate investment returns, emphasis now is shifting to improving operating results to drive property values,” said IREM(R) President Regina T. Mullins, CPM(R). “Operations is replacing speculation as the stimulus for growing real estate values – and the lead players in this essentially back-to-basics scenario are the top-notch, professional managers of real estate assets who are hired by investors to do just that, to optimize ROI from operations.
“Indeed,” Mullins said, “protecting real estate assets and enhancing their value are what professional real estate managers have always been about. The fundamental mission of credentialed managers is to improve ROI by optimizing operating revenue and controlling expenses. And now that flipping properties no longer is as prevalent or feasible as it once was, owners and investors are looking to sustained long-term ROI growth as the key to increasing the value of their investments.”
“Professional, credentialed real estate managers,” Mullins points out, “do a lot more than just collect rents.” She cites the full range of skills, experience and integrity that credentialed managers bring to the table to optimize ROI from operations, including:
— Budgeting and financial management
— Asset and risk management
— Marketing and leasing
— Human resources management
— Physical property management
— Business development and negotiation skills
— Communications and resident/tenant relations skills
— Ethical business practices
“As well, they must have knowledge of increasingly competitive market conditions and complex technologies. Finally,” said Mullins, “well-managed properties don’t just appreciate in value but also improve the quality of life for the people who live, work and shop in them.”
ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
The Institute of Real Estate Management (IREM(R)) is celebrating its 75th anniversary in 2008. Major sponsors of the year-long celebration are Yardi Systems, a leading provider of high-performance software solutions for the real estate industry, and the REALTORS(R) Commercial Alliance (RCA), the collective commercial constituency within the National Association of REALTORS(R).
For more than seven decades, IREM has been the source for education, resources, information, and membership for real estate management professionals. An affiliate of the National Association of Realtors(R), IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors. With 80 U.S. chapters, eight international chapters, and several other partnerships around the globe, IREM is an international organization that also serves as an advocate on issues affecting the real estate management industry.
Membership includes more than 18,000 individual members and 500 corporate members. IREM promotes ethical real estate management practices through its credentialed membership programs, including the Certified Property Manager(R) (CPM(R)) designation, the Accredited Residential Manager(R) (ARM(R)) certification, the Accredited Commercial Manager certification, and the Accredited Management Organization(R) (AMO(R)) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management. In addition, IREM offers Associate, Student, and Academic memberships.
Collectively, IREM CPM(R) Members in the United States manage over $1.5 trillion in real estate assets, including 8.4 million residential units and 8.4 billion net square feet of commercial space. An additional 977,400 residential units are managed by IREM ARM(R) Members. IREM Members are employed by some of the most prestigious real estate firms in the world and nearly 70% hold upper-level management positions. Due to their professionalism and vast experience, property owners and investors worldwide continually seek out the management services of IREM Members.
To learn more about the Institute of Real Estate Management and its chapter network, call (800) 837-0706, ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.
SOURCE Institute of Real Estate Management
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