Real Estate Services
Real estate services rank among the most important B2B areas in Germany, with more people employed here than in a range of other sectors. And the market for the stewardship and management of property and buildings is large: external market volume for facilities services in Germany, for example, currently amounts to around 55 billion euros. Real estate services may well often be delivered behind the scenes but they remain of immense economic importance.
Asset management: administering and increasing property wealth
Asset management in the real estate industry relates to services around the customer’s fixed property assets. Services include not only consultancy but also investment decision-making based on real estate investors’ investment strategies, appetite for risk and availability of capital. Targeted courses of action are taken with the goal of increasing the value of the property assets. The real estate asset class can be subdivided into categories such as residential, commercial and special-purpose property based on construction, type of use and quality.
Property management: profit-oriented administration of real estate
Property management is the provision of professional building management services to ensure the profitable stewardship of a real estate asset. The goal is to oversee the building operator’s property portfolio as a business and increase revenues. Property managers thus always have an eye on recurring costs and capital expended.
Facilities management: a heterogeneous range of services
The facilities services market is highly heterogeneous. Services offered can be allocated to one of the three classic pillars of facilities management: infrastructural, technical and commercial facilities management. Building cleaning is the most important area of work, followed by building technology maintenance and security and guard services. But the portfolios of buildings services providers also include accommodation services, smart buildings concepts and corporate real estate management services. Lünendonk has been monitoring the German facilities services market since 2003. Our market research institute has also been surveying clients in facilities management for a number of years, providing a comprehensive overview of the market.
Trends: integrated and user-centred services, skilled staff shortages, sustainability, digitisation, volatility
The structure of the market for real estate services and asset, property and facilities management is constantly evolving. Key trends in the sector are integrated facilities management, digitisation, ESG, user-centred FM, staffing shortages and volatility. In the face of the vast range of developments, demand for external real estate consulting expertise to address FM consulting, ESG services, integrated workspace management systems (IWMS), site services, property life cycle and life cycle solutions issues is increasing.