Top most important things a manager has to know about real-estate
Source: http://www.wall-street.ro/
Sorina Negrila, exclusive, 14th January 2010
No matter his field of activity, a manager has to be aware of a few fundamental aspects regarding the real-estate market. Wall- Street talked to a developer, a consultant and a real-estate evaluator to find out which are the most important things the head of a company has to know about real-estate.
Smaller but more stable rents
Ilias Papageorgiadis, CEO of the real estate consultancy company More Real Estate Services, is saying that now, more than any other time, while passing a difficult economical period, any successful manager has next to him more trustworthy persons: the lawyer, the accountant, the financial consultant, the doctor and the real-estate agent.
"A good real-estate consultant is not one who brags excessively, but one who finds solutions, states difficult truths, prevents future problems, and, in the end, reaches smaller targets, which is much better than failing in fulfilling more ambitious ones", Ilias Papageorgiadis explained to us.
Regarding the rental activities, the head of More Real Estate Services is of the opinion that regardless if it is about retail spaces, office spaces or an apartment, a manager does not have to try to obtain the highest level of the rent, but the most serious tenant, the strongest rental agreement together with all the other details which can guarantee to him a stable income.
On the other hand, if the manager plays the role of the tenant, then he has to be aware of the opportunities he has and establish his own rules, but minding the fact that everything has a limit. "The top properties, A class office buildings are and will always be more expensive than B class buildings", emphasizes Papageorgiadis.
Last but not least, no manager must forget that the price says half of the truth. Many times there are adjacent costs or the costs of a building whose construction raises question marks can be bigger than those of an A class building, all options included.
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