Real Estate Portfolio Management & Acquisition

The real estate asset management function is made up of property level specialists who add value to fund managers by executing property level strategy. The Express Services Company, Inc. team specializes in both regional market fundamentals and in specific property types, and is focused on optimizing the value of the assets in our custody.

In addition to providing portfolio management information on local prospects and facilitating transactions, we also take up the responsibility of enhancing the property level performance. That means our asset managers don’t just handle budget approvals and expense management, they also work on increasing the value of the assets we handle by managing the leasing at one or more properties.

Although it may seem like a black and white affair, leasing is a complex function that inevitably decides the value of a property and portfolio. Success in leasing is not only attained by finding and executing the highest possible leasing opportunities at each property, but also by conducting a leasing program that aligns with portfolio strategy while maintaining the best relations with existing tenants.

Leasing is a highly negotiated process, which can involve making decisions at odds with the tenants’ needs in order to optimize the value of the property. For example, for properties that are slated for sale, leasing might be suspended during a sales period to allow new owners to factor higher potential leasing rates. This can lead to increased forecasted property values and therefore higher sales offers. During periods of rising rental rates, long term leases may be locked in for income-oriented properties, while for strategies focused on capital appreciation, lease terms may be shortened to take advantage of higher expected rates in the future.

Our asset managers’ ability to accomplish the appropriate tenant mix, execute leasing strategy that aligns cash flows with portfolio needs, and manage both capital and operating expenses can significantly affect the overall portfolio value.