Commercial real estate returns are determined in no small part by how well the ongoing management function is performed. Management decisions can be classified into two categories: property management and asset management. Which of the following functions would be considered a primary responsibility of an asset manager?
A) Property acquisitions and dispositions
B) Marketing a property to prospective tenants
C) Maintaining the condition of the property
D) Signing leases

Question

Quizplus · Accepted Answer

Property acquisitions and dispositions are a primary responsibility of an asset manager. Asset management focuses on the strategic planning and financial management of a real estate portfolio to maximize returns and achieve investment objectives. This includes making decisions on buying or selling properties, analyzing market trends, and determining the optimal use of capital. Property management, on the other hand, focuses on day-to-day operations such as maintenance, leasing, and tenant relations. Marketing a property to prospective tenants, maintaining the condition of the property, and signing leases are all functions of property management.

Commercial Real Estate Returns Are Determined in No Small Part