Real Estate Services

Real estate services are among the most important B2B services in Germany and represent the sector with the highest employment levels. The market for the administration and management of real estate and buildings is substantial. The external market volume for facility services, for example, currently amounts to around 59 billion euros in Germany. Although real estate services often operate behind the scenes, they are of immense economic importance.

Asset management: managing and growing real estate assets

In the real estate industry, asset management refers to services related to a client’s real estate assets. These services include advisory activities and investment decisions based on the investment strategy, risk appetite and capital availability of real estate investors. Targeted actions focus on value-enhancing management of real estate assets. Real estate assets can be divided into subcategories, such as residential, commercial and special properties, based on construction, use and quality.

Property management: managing real estate with a focus on returns

Property management provides professional services for yield-oriented property management. The goal is to manage the real estate portfolio in an entrepreneurial manner that benefits the building operator and increases revenues. Property managers always consider capital employed and operating expenses.

Facilities management: a wide range of services

The facility services market is highly diverse. Its various components fall under three classic categories: infrastructure, technical and commercial facility management. The most important area is building cleaning, followed by maintaining building technology and security and guard services. However, neighbourhood services, smart building concepts and corporate real estate management services are further functions offered by facility service providers. Since 2003, Lünendonk has been monitoring the German facility services market. Our market research institute has also been surveying facilities management clients for several years, providing comprehensive market insights.

Current trends: integrated and user-centric services, skills shortage, sustainability, digitalisation and volatility

The market structure for real estate services, asset management, property management and facilities management is constantly evolving. Key industry trends include integrated facility management, digitalisation, environmental, social and governance (ESG) practices, user-centric facility management (FM), staff shortages and volatility. Given the numerous developments, there is an increasing demand for real estate consulting leveraging external expertise around issues related to FM consulting, ESG services, integrated workspace management systems (IWMS), site services and matters of real estate life cycle and life cycle solutions.