Real Estate is one of the 19 functional FM knowledge areas that are categorized into four key knowledge domains.

Definition: Real estate management is responsible for the location of the facility site, whether building or leasing, and all the steps necessary to acquire it.

Facility managers not only manage contracts, buildings, and structures; they also can perform property selection (requiring environmental and legal due diligence), acquisition, leasing, and disposal. All of this equates to real estate, which is historically the area most requiring augmentation in a facility manager’s skill set.

The bigger and more diversified an organization becomes, the more a facility manager needs reliable, accurate information about its leases, buildings, costs, and separate tracts of real estate. Facility managers must become familiar with the details of managing real estate, which includes leasing (or buying) property for the organization’s use or managing property that the organization leases out, acting as either tenant or landlord as circumstances dictate.

Key Concepts:

• Buy vs. lease analysis.
• Occupancy types.
• Purchasing and leasing advantages.
• Site selection and acquisition.
• Property condition assessments (PCA).
• Managing and coordinating a build-out.
• Property purchase checklist.
• Types of leases.
• Lease agreements (key sections).
• Leasing process.
• Covenants.
• Negotiating leases
• Green leases.

Real Estate Proficiency Indicators (Task Statements)

• Demonstrates understanding of different types of leases (e.g., triple-net, full service, green).
• Demonstrates basic understanding of leasing standards.
• Performs buy versus lease analysis.
• Performs site selection and acquisition (due diligence).
• Works with property manager to oversee building performance to support occupant needs.
• Follows strategic approach to facilities portfolio and clearly communicates how real estate and facilities can support these missions.
• Identifies build-out specifications.

Image by Amine Kaddari from Pixabay