Asset Management… what’s that?
All through my long career in various property sectors, I’ve always paid close attention to asset management and enhancing the value of property assets.
However, over the months whilst dealing with, particularly, commercial type assets, I’ve repeatedly been surprised, and more recently regularly perplexed, at what passes for asset management in this part of the world!
Take a recent example of an attempted leasing we have been doing in a reasonably well known shopping centre located in a very prime position. Apart from the poor maintenance and uninspiring decoration and visual presentation of the centre, the key issue has been the rental and other commercial terms.
With vacancies running at well over 80%, the owners insist on maintaining exceedingly high asking rentals, which they kindly “discount” by 30-40% to get to a still excessively high rental—which then becomes absolutely, totally, non-negotiable!
No amount of discussion as to the folly of this policy is accepted. No amount of debate or argument about why it might be wiser to fill up the vacant space at lower rents, bring business back to the centre and then start to increase rentals can be agreed to…
Then, to cap it all, the management team announced, quite deadpan that, anyway, the asking rentals for the 80% or so of the vacant space are going to be increased in January next year!
No tenants, no shoppers… sad.., but no idea..!
What do you think? Know any shopping centres like this near you?
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.