Developmental appraisal of virgin plots/land for highest best use and return
There adheres to the real estate management and practice. What real estate is about? What comprises of effective real estate? How virgin plots achieve positive and effective means of management and practice in lieu to estate management and other relative factors? Case study information and discussion will be at core research dealing to real estate management and practices, pressing need to adopt research attitude towards daily activities to stimulate deeper understanding between estates and plots appraisal routes. Conventional methods of operations control through accounting are becoming subject of intense debate. Many critics argue that neither the concepts nor the tools of accounting are adequate for control of business operations. However, years of careful study will be required to establish recurrent patterns that warrant our attention. Some of this work will be done in other plots.
For virgin plots application, real estate requires effective monitoring of property performance by means of system of property performance indicators. For given budget, there is tradeoff between many indicators measured few times, few indicators measured many times. The latter is preferable to the former, because management is generally more interested in relative change than in absolute values of performance indicators. In the case of virgin plots, cross sectional comparisons of buildings are difficult because of their heterogeneity and even identical buildings at different locations will appear to be different. There longitudinal comparisons of same building at different points in time are difficult because many building processes are very slow as everything appears to be the same even over long periods of time (Bon, 1994a). One of key concerns of estate management is maintenance of continual ability to adapt to changing economic conditions facing an organization, the structure of real property performance indicators should correspond to the structure of the portfolio itself. The management of adaptability and flexibility should not be narrowly directed only towards individual buildings, problem arises on at least cluster of buildings and of the portfolio as a whole.
Furthermore, on all three levels there are distinct aspects of the problem such physical, financial and organizational. Physical aspects predominate on the level of individual buildings; financial aspects predominate at the portfolio level; and organizational aspects are especially important at the building cluster level (Bon, 1994a). Real property performance should be measured with the objective of gradually changing the character of the entire portfolio via continual managerial action bent on improving real property performance. The key objective is to improve the overall performance of the portfolio by shifting the average performance in the direction of improvement, as well as to tighten the variation around that average performance.
The need to introduce collaborative venture between researchers and practitioners of real estate management in the area of property measurement as well as to show area of estate management require virgin plots structure that stimulates interaction between activities. The understanding of estate management and plots performance in particular, needs to be molded to specific requirements of the involved organization. Real estate management concerns the management of buildings and parcels of land at the disposal of private and public organizations that are not primarily in the real estate business; organization that occupies space is in the real estate business and needs to manage it properly. There covers the entire range of activities concerning portfolios of buildings and land holdings in investment planning and management, financial planning and management, construction planning and management, and facilities planning and management (Bon, 1994b). The possible courses of action differ for buildings and parcels of land in different parts of an organization's portfolio as the structure of the portfolio should reflect alternative courses of action that apply to different classes of real property.
Plot information can be used as the basis for detailed contingency planning for properties that are the best candidates for disposition or significant reconstruction. Real estate management is concerned with the entire real property cycle of each property in the portfolio, although it focuses on the utilization and operation stage. More precisely, it is concerned with the relationship between the real property cycle and other strategic cycles characterizing the organization in question (Bon, 1994b). Real estate management tools need to be applied as early in the real property cycle as possible. As real property portfolio of each organization differs considerably from any other portfolio, each organization needs to develop and maintain a database with information specific to that organization.
Comments