How Understanding Principles of Real Estate Benefits Facilities ManagementJanuary 25, 2021
Students pursuing a degree in facilities management and critical infrastructure learn that the work they do goes hand-in-hand with the real estate industry. As such, it’s important that all students have a fundamental understanding of real estate and how it applies to their field of study.
For Capitol Tech students working at a bachelor’s in facilities management, a course called Principles of Real Estate prepares students for well-rounded careers, by focusing on topics including real estate financial management, site selection, master planning, leasing, purchase vs.lease, property management and highest and best use analysis.
According to the International Facility Management Association (IFMA), real estate is one of the core competencies of facility management. IFMA also states that facility managers share common roles with real estate managers.
“FMs contribute to the organization’s bottom line through their responsibility for maintaining what are often an organization’s largest and most valuable assets, such as property, buildings, equipment and other environments that house personnel,” says IFMA.
Asset management includes understanding what is owned, reports FMLink. To properly evaluate assets requires knowledge of real estate and is vital for planning purposes – whether occurring as an evaluation of a building considered for purchase or during an annual review of an already-owned building.
“It is not enough, for example, to state simply that a ten-story office building is owned,” says the article The Facility Manager’s Role in Real Estate Management. “Rather, the answer warrants a detailed response that includes specifics about the property and its surrounding market.”
Reviews of property typically include legal document inspections, physical property review, and market analysis, FMLink reports.
“Aspects of each of these can be supported by a facility manager, but none more so than the physical review,” the article continues.
Reviews include evaluating curb appeal, interior quality, foundation and exterior quality, and tenant feedback and are just some of the knowledge areas required of facilities managers that fall under the realm of real estate.
Knowledge of real estate also allows facilities managers to improve resident retention, maintain and enhance property value, establish profitable rent structures, and otherwise successfully manage both small and large sites.
Careers in Facilities Management
Having a degree in facilities management with coursework in real estate preps students for careers as:
- Asset managers
- Property managers
- Facilities managers
- Building services officers
- Integrated facilities managers
Want to learn about facilities management? Capitol Tech offers bachelor’s, master’s and doctorate degrees in construction, facilities, and safety. Many courses are available both on campus and online. To learn more about Capitol Tech’s degree programs, contact firstname.lastname@example.org.