All About Commercial Real Estate Asset Management
 |
Description
Book Introduction
The fact that acquiring knowledge or understanding the job is not easy is partly due to the fact that real estate requires comprehensive knowledge as it is connected to various fields of society.
One of the inevitable challenges that newcomers to the real estate industry face is having to master a wide range of knowledge simultaneously.
Moreover, commercial real estate is greatly influenced by economic conditions and related laws and regulations, making it difficult to grasp market trends unless you are in the field.
This is a point that many people preparing for employment in the commercial real estate industry or those looking to change careers in other fields find to be a barrier.
In an attempt to alleviate some of these difficulties, I compiled the knowledge and information I had accumulated while working in the field and wanted to share with my juniors, and published it in a book.
One of the inevitable challenges that newcomers to the real estate industry face is having to master a wide range of knowledge simultaneously.
Moreover, commercial real estate is greatly influenced by economic conditions and related laws and regulations, making it difficult to grasp market trends unless you are in the field.
This is a point that many people preparing for employment in the commercial real estate industry or those looking to change careers in other fields find to be a barrier.
In an attempt to alleviate some of these difficulties, I compiled the knowledge and information I had accumulated while working in the field and wanted to share with my juniors, and published it in a book.
index
PART 01: The Commercial Real Estate Market and Asset Managers _ 023
01 The Purpose of Asset Management and the Definition of Asset Managers _ 023
The Purpose of Real Estate Asset Management _ 023
Introduction to Real Estate Asset Management _ 025
What is a Real Estate Asset Manager? _ 027
Definition of an Asset Manager _ 029
Real Estate Asset Manager _ 030
02 Commercial Real Estate Market Structure and Asset Characteristics _ 031
Commercial Real Estate Market Participants _ 031
Types and Characteristics of Commercial Real Estate _ 033
Real Estate Life Cycle and Key Tasks _ 034
03 Components for Asset Management _ 037
Asset Management and the Role of Each Sector _ 037
PM Team Composition and Asset Management Fees _ 038
PART 02 Basic Knowledge for Asset Management _ 043
01 Asset Manager's Competencies and Background Knowledge _ 043
Real Estate Asset Manager Competencies _ 043
Background Knowledge for Asset Management _ 046
02 Understanding Financial Statements for Asset Management _ 049
Components of Financial Statements _ 049
Using and Understanding Financial Statements _ 052
03 Understanding Real Estate Public Records _ 055
Management of Real Estate Public Records _ 055
Understanding the Building Register _ 056
Understanding the Register of Real Estate _ 057
04 Facility Management Personnel and Building Equipment _ 059
Facility Operations Team Composition and Roles _ 059
Appointment of Legally Essential Personnel _ 061
Understanding Building Equipment _ 062
PART 03 Asset Management Preparation and Risk Management _ 069
01 Tenant Move-in and Operation Preparation _ 069
Tenant Move-in Procedure _ 069
Pre-tenant preparation work _ 070
Information required for tenant move-in _ 073
02 Tenant Move-in Preparation and Management _ 076
Preparing for Tenant Interior Construction _ 076
Key Contents of the Interior Construction Guidelines _ 078
The Need for Interior Drawing Review _ 078
Key Considerations for Each Interior Process _ 079
Interior Construction Schedule and Process Management _ 082
Final Inspection and Defect Handling _ 084
Complaints and Precautions Related to Interior Construction _ 085
Tenants should be aware of interior construction issues _ 090
03 Operating Regulations and Manual for Asset Management _ 093
The Need and Composition of Building Operation Regulations _ 093
Other manuals required for operation _ 094
04 Tenant Risk Management and Prevention _ 097
Types of Tenant Risk _ 097
Preventing and Eliminating Tenant Risk _ 099
Tenant Selection Criteria _ 102
Weighted Average Remaining Lease Term (WALE) _ 103
Utilizing the Law of Dispute Resolution _ 105
Handling and Responding to Bad Tenants _ 107
05 Accident Prevention and Operational Insurance _ 109
Prevention of Disasters and Accidents During Operation _ 109
Tenant Complaints and Responses _ 110
Real Estate Operation Insurance _ 112
Insurance-Related Terminology for Building Operations _ 115
PART 04 Lease Agreement Management and Practical Knowledge _ 119
01 Structure and Basic Knowledge of the Commercial Real Estate Lease Market _ 119
Distinction between the rental market and the rental business _ 119
Practical Knowledge for Leasing Business _ 122
Definition and Interpretation of Net Occupancy Cost (NOC) _ 125
Factors Tenants Consider When Relocating Offices _ 127
Why Tenants Move Offices _ 132
02 Types of Rent and Management Fees and Rental Marketing _ 135
Types of Rent and Management Fees _ 135
Rental Marketing Support Methods _ 137
Leasing Strategy _ 140
03 Key Items and Contents of the Standard Lease Agreement _ 142
Key Items of a Lease Agreement _ 142
04 Lease Agreement Information Management _ 152
Managing Lease Agreement Information _ 152
Tenant Status Management _ 155
05 Changes to Lease Agreements and Adjustments to Rent and Management Fees _ 158
Changes to the Lease Agreement _ 158
Adjustment of deposit, rent, and management fee _ 159
PART 05: The Key Duties of an Asset Manager _ 163
01 Key Tasks During Tenant Move-in _ 163
Tenant Occupancy Work _ 163
02 Billing of rent and management fees and payment of various expenses _ 171
Billing of Rent and Management Fees and Management of Receivables _ 171
Billing of operating expenses and payment of various expenses _ 172
Processing payments for maintenance, miscellaneous expenses, and unexpected expenses _ 174
03 Managing Relationships with Tenants _ 176
The Importance of Tenant Maintenance and Care _ 176
What Tenants Want _ 177
Items Renters Value Highly _ 178
Communication with Tenants _ 180
04. Occurrence and Management of Delinquent Tenants _ 181
Business Procedures in Case of Overdue Payments _ 181
Negotiating with Delinquent Tenants _ 182
05 Tenant Eviction Procedures and Related Work _ 185
Tasks required when moving out a tenant _ 185
Deposit Return Checklist _ 186
PART 06 Preparation and Composition of the Operating Budget _ 191
01 Preparing the Operating Budget and Background Knowledge _ 191
Preparing and Writing an Operating Budget _ 191
Establishing Standards for Preparing Operating Budgets _ 192
Structure and Items of an Operating Budget Template _ 194
Operating Budget Flow _ 197
02 Operating Budget Composition and Item Description _ 198
Composition of Operating Revenue _ 198
Composition of FM Service Fees _ 201
Outsourcing and Repair Costs - Construction _ 203
Outsourced Services and Repair Costs - Electrical _ 204
Outsourcing and Repair Costs - Machinery _ 206
Outsourced Services and Repair Costs - Fire Protection _ 207
Outsourcing and repair costs - USD 209
Outsourcing and Repair Costs - Security/Guidance _ 210
Outsourced Services and Repairs - Parking and Others _ 210
Outsourced services and repair costs - Construction costs _ 212
Water, electricity, and heat bills _ 212
Various taxes _ 213
Insurance premiums, etc. _ 214
Rental costs, PM fees, etc. _ 215
Other operating expenses _ 216
Non-Operating Income and Expenses _ 217
Capital Expenditures (CAPEX) _ 218
03 Preparing an Asset Management Report _ 219
Structure and Contents of Asset Management Reports _ 219
Evaluation and Standards for Asset Management _ 222
PART 07 Understanding Asset Sales and Investment Strategies _ 227
01 Understanding the Real Estate Asset Sale Process _ 227
Real Estate Asset Sale Procedures _ 227
The Role of Asset Managers in Asset Sales _ 229
02 Four Basic Due Diligence Steps for Asset Purchases _ 231
Legal Due Diligence _ 231
Emotional Assessment _ 232
Financial Audit _ 233
Physical Examination _ 233
03 Real Estate Finance Terminology and Asset Pricing _ 235
Capitalization rate _ 235
Understanding the Three Approaches to Emotional Assessment _ 237
Comparing Asset Prices Using Rent and Sale Price Comparison Cases _ 240
Loan Interest Rates and Asset Prices _ 243
04 Investment Fund Composition and Types of Funds _ 244
Composition of Investment Funds _ 244
Understanding the Types of Investors _ 246
05 Strategies through Diverse Investment Structuring _ 248
Diversification Using Equity Investor Trench - Heterogeneous Income Securities _ 248
Diversification through Loan Investor Trenching - Senior, Intermediate, and Subordinated Structures _ 250
Asset Management Companies' PM Orders - Common Stock Participation and Lease Commitment _ 251
Equity investors and loan investors are the same _ 252
Participation in Common Stock after Sale and Leaseback _ 253
Construction Companies' Responsibility for Completion and Master Lease Structure _ 254
Investor Conditional Pre-Order Structure _ 255
Exercise and Use of Priority Buy Options _ 256
Structuring through Cash Flow Stability _ 258
Share Deal VS Asset Deal _ 259
Refinancing _ 260
Recapitalization _ 261
PART 08 Asset Value Enhancement Strategies and the Future of Asset Management _ 265
01 Real Estate Asset Value Enhancement Strategies and Implementation Plans _ 265
The Meaning of Asset Value Enhancement _ 265
Types of Asset Value _ 267
Exploring Case Studies on Enhancing Asset Value - The Work Environment of FM Workers _ 269
Exploring Case Studies on Enhancing Asset Value - Differentiated Building Services _ 271
Creating Additional Income _ 273
Remodeling and Facility Improvement Projects _ 274
Promotional Marketing Strategy _ 276
02 Changes in Tenant Working Environments and Various Cases _ 278
Generational Change and Changes in Work Style _ 278
The rise of high-rise buildings and mixed-use development assets _ 279
The Emergence of Building Competitors _ 281
Tenant Amenities and Cases _ 284
03 Operation and Management of Eco-Friendly Buildings _ 286
Demand for a comfortable indoor environment _ 286
LEED, WELL, and ESG _ 288
Finishing the Book _ 291
01 The Purpose of Asset Management and the Definition of Asset Managers _ 023
The Purpose of Real Estate Asset Management _ 023
Introduction to Real Estate Asset Management _ 025
What is a Real Estate Asset Manager? _ 027
Definition of an Asset Manager _ 029
Real Estate Asset Manager _ 030
02 Commercial Real Estate Market Structure and Asset Characteristics _ 031
Commercial Real Estate Market Participants _ 031
Types and Characteristics of Commercial Real Estate _ 033
Real Estate Life Cycle and Key Tasks _ 034
03 Components for Asset Management _ 037
Asset Management and the Role of Each Sector _ 037
PM Team Composition and Asset Management Fees _ 038
PART 02 Basic Knowledge for Asset Management _ 043
01 Asset Manager's Competencies and Background Knowledge _ 043
Real Estate Asset Manager Competencies _ 043
Background Knowledge for Asset Management _ 046
02 Understanding Financial Statements for Asset Management _ 049
Components of Financial Statements _ 049
Using and Understanding Financial Statements _ 052
03 Understanding Real Estate Public Records _ 055
Management of Real Estate Public Records _ 055
Understanding the Building Register _ 056
Understanding the Register of Real Estate _ 057
04 Facility Management Personnel and Building Equipment _ 059
Facility Operations Team Composition and Roles _ 059
Appointment of Legally Essential Personnel _ 061
Understanding Building Equipment _ 062
PART 03 Asset Management Preparation and Risk Management _ 069
01 Tenant Move-in and Operation Preparation _ 069
Tenant Move-in Procedure _ 069
Pre-tenant preparation work _ 070
Information required for tenant move-in _ 073
02 Tenant Move-in Preparation and Management _ 076
Preparing for Tenant Interior Construction _ 076
Key Contents of the Interior Construction Guidelines _ 078
The Need for Interior Drawing Review _ 078
Key Considerations for Each Interior Process _ 079
Interior Construction Schedule and Process Management _ 082
Final Inspection and Defect Handling _ 084
Complaints and Precautions Related to Interior Construction _ 085
Tenants should be aware of interior construction issues _ 090
03 Operating Regulations and Manual for Asset Management _ 093
The Need and Composition of Building Operation Regulations _ 093
Other manuals required for operation _ 094
04 Tenant Risk Management and Prevention _ 097
Types of Tenant Risk _ 097
Preventing and Eliminating Tenant Risk _ 099
Tenant Selection Criteria _ 102
Weighted Average Remaining Lease Term (WALE) _ 103
Utilizing the Law of Dispute Resolution _ 105
Handling and Responding to Bad Tenants _ 107
05 Accident Prevention and Operational Insurance _ 109
Prevention of Disasters and Accidents During Operation _ 109
Tenant Complaints and Responses _ 110
Real Estate Operation Insurance _ 112
Insurance-Related Terminology for Building Operations _ 115
PART 04 Lease Agreement Management and Practical Knowledge _ 119
01 Structure and Basic Knowledge of the Commercial Real Estate Lease Market _ 119
Distinction between the rental market and the rental business _ 119
Practical Knowledge for Leasing Business _ 122
Definition and Interpretation of Net Occupancy Cost (NOC) _ 125
Factors Tenants Consider When Relocating Offices _ 127
Why Tenants Move Offices _ 132
02 Types of Rent and Management Fees and Rental Marketing _ 135
Types of Rent and Management Fees _ 135
Rental Marketing Support Methods _ 137
Leasing Strategy _ 140
03 Key Items and Contents of the Standard Lease Agreement _ 142
Key Items of a Lease Agreement _ 142
04 Lease Agreement Information Management _ 152
Managing Lease Agreement Information _ 152
Tenant Status Management _ 155
05 Changes to Lease Agreements and Adjustments to Rent and Management Fees _ 158
Changes to the Lease Agreement _ 158
Adjustment of deposit, rent, and management fee _ 159
PART 05: The Key Duties of an Asset Manager _ 163
01 Key Tasks During Tenant Move-in _ 163
Tenant Occupancy Work _ 163
02 Billing of rent and management fees and payment of various expenses _ 171
Billing of Rent and Management Fees and Management of Receivables _ 171
Billing of operating expenses and payment of various expenses _ 172
Processing payments for maintenance, miscellaneous expenses, and unexpected expenses _ 174
03 Managing Relationships with Tenants _ 176
The Importance of Tenant Maintenance and Care _ 176
What Tenants Want _ 177
Items Renters Value Highly _ 178
Communication with Tenants _ 180
04. Occurrence and Management of Delinquent Tenants _ 181
Business Procedures in Case of Overdue Payments _ 181
Negotiating with Delinquent Tenants _ 182
05 Tenant Eviction Procedures and Related Work _ 185
Tasks required when moving out a tenant _ 185
Deposit Return Checklist _ 186
PART 06 Preparation and Composition of the Operating Budget _ 191
01 Preparing the Operating Budget and Background Knowledge _ 191
Preparing and Writing an Operating Budget _ 191
Establishing Standards for Preparing Operating Budgets _ 192
Structure and Items of an Operating Budget Template _ 194
Operating Budget Flow _ 197
02 Operating Budget Composition and Item Description _ 198
Composition of Operating Revenue _ 198
Composition of FM Service Fees _ 201
Outsourcing and Repair Costs - Construction _ 203
Outsourced Services and Repair Costs - Electrical _ 204
Outsourcing and Repair Costs - Machinery _ 206
Outsourced Services and Repair Costs - Fire Protection _ 207
Outsourcing and repair costs - USD 209
Outsourcing and Repair Costs - Security/Guidance _ 210
Outsourced Services and Repairs - Parking and Others _ 210
Outsourced services and repair costs - Construction costs _ 212
Water, electricity, and heat bills _ 212
Various taxes _ 213
Insurance premiums, etc. _ 214
Rental costs, PM fees, etc. _ 215
Other operating expenses _ 216
Non-Operating Income and Expenses _ 217
Capital Expenditures (CAPEX) _ 218
03 Preparing an Asset Management Report _ 219
Structure and Contents of Asset Management Reports _ 219
Evaluation and Standards for Asset Management _ 222
PART 07 Understanding Asset Sales and Investment Strategies _ 227
01 Understanding the Real Estate Asset Sale Process _ 227
Real Estate Asset Sale Procedures _ 227
The Role of Asset Managers in Asset Sales _ 229
02 Four Basic Due Diligence Steps for Asset Purchases _ 231
Legal Due Diligence _ 231
Emotional Assessment _ 232
Financial Audit _ 233
Physical Examination _ 233
03 Real Estate Finance Terminology and Asset Pricing _ 235
Capitalization rate _ 235
Understanding the Three Approaches to Emotional Assessment _ 237
Comparing Asset Prices Using Rent and Sale Price Comparison Cases _ 240
Loan Interest Rates and Asset Prices _ 243
04 Investment Fund Composition and Types of Funds _ 244
Composition of Investment Funds _ 244
Understanding the Types of Investors _ 246
05 Strategies through Diverse Investment Structuring _ 248
Diversification Using Equity Investor Trench - Heterogeneous Income Securities _ 248
Diversification through Loan Investor Trenching - Senior, Intermediate, and Subordinated Structures _ 250
Asset Management Companies' PM Orders - Common Stock Participation and Lease Commitment _ 251
Equity investors and loan investors are the same _ 252
Participation in Common Stock after Sale and Leaseback _ 253
Construction Companies' Responsibility for Completion and Master Lease Structure _ 254
Investor Conditional Pre-Order Structure _ 255
Exercise and Use of Priority Buy Options _ 256
Structuring through Cash Flow Stability _ 258
Share Deal VS Asset Deal _ 259
Refinancing _ 260
Recapitalization _ 261
PART 08 Asset Value Enhancement Strategies and the Future of Asset Management _ 265
01 Real Estate Asset Value Enhancement Strategies and Implementation Plans _ 265
The Meaning of Asset Value Enhancement _ 265
Types of Asset Value _ 267
Exploring Case Studies on Enhancing Asset Value - The Work Environment of FM Workers _ 269
Exploring Case Studies on Enhancing Asset Value - Differentiated Building Services _ 271
Creating Additional Income _ 273
Remodeling and Facility Improvement Projects _ 274
Promotional Marketing Strategy _ 276
02 Changes in Tenant Working Environments and Various Cases _ 278
Generational Change and Changes in Work Style _ 278
The rise of high-rise buildings and mixed-use development assets _ 279
The Emergence of Building Competitors _ 281
Tenant Amenities and Cases _ 284
03 Operation and Management of Eco-Friendly Buildings _ 286
Demand for a comfortable indoor environment _ 286
LEED, WELL, and ESG _ 288
Finishing the Book _ 291
Into the book
Commercial real estate is large in scale, and the entities that own and operate it usually hold the assets for investment purposes.
Looking at the large buildings in Seoul's major business districts, such as the downtown area, Yeouido area, and Gangnam area, some are owned by general corporations, but there are also a significant number of assets owned in the form of real estate funds or REITs for investment purposes.
Many such office buildings are being traded repeatedly in the asset market, and the entities that invest in and manage these assets are real estate asset management companies, real estate investment firms, and real estate asset management companies with real estate experts.
With professional investors active in the market, commercial real estate transactions in Korea have become more active and the size of asset investment has also grown rapidly.
Meanwhile, interest in the commercial real estate industry as a career field is growing day by day.
On the other hand, because it is a field that has grown rapidly in a short period of time, there is still a lack of systematic training or manuals for work related to the job.
Additionally, since it is a job that requires expertise, there are many things that people in the field need to continuously develop themselves and learn.
Moreover, beginners looking to enter the commercial real estate industry often find it difficult to know where to start and what to learn.
Although real estate majors learn at least the basic knowledge in school, many of them end up getting jobs without having sufficiently learned the practical skills needed in the field.
As a result, the level of practical knowledge acquired is bound to differ depending on which company you join or which team you work for.
The fact that acquiring knowledge or understanding the job is not easy is partly due to the fact that real estate requires comprehensive knowledge as it is connected to various fields of society.
One of the inevitable challenges that newcomers to the real estate industry face is having to master a wide range of knowledge simultaneously.
Moreover, commercial real estate is greatly influenced by economic conditions and related laws and regulations, making it difficult to grasp market trends unless you are in the field.
This is a point that many people preparing for employment in the commercial real estate industry or those looking to change careers in other fields find to be a barrier.
In an attempt to alleviate some of these difficulties, I compiled the knowledge and information I had accumulated while working in the field and wanted to share with my juniors, and published it in a book.
I wrote this book with the hope that it would serve as a textbook for beginners and novice students preparing to enter the commercial real estate industry, by organizing the know-how and practical work knowledge I've learned through lectures and online content.
This book contains practical knowledge necessary for the operation and management of office buildings, a representative commercial real estate asset.
We have systematically organized what you need to know about working in the commercial real estate industry, focusing on office buildings, a major investment asset in commercial real estate.
We chose office buildings to organize our books because they are the optimal assets for understanding commercial real estate investment and operational management.
Having a basic understanding of office buildings will make it easier to understand other types of commercial real estate assets.
The commercial real estate industry will continue to grow, evolve, and change. We will continually revise this book to ensure it remains helpful to practitioners, while continually adding content to keep pace with this industry.
As the author, I hope this book will serve as a reference for job seekers entering the commercial real estate industry and for junior professionals in the industry.
So, I hope this will be a book that readers will continue to come back to for a long time.
Looking at the large buildings in Seoul's major business districts, such as the downtown area, Yeouido area, and Gangnam area, some are owned by general corporations, but there are also a significant number of assets owned in the form of real estate funds or REITs for investment purposes.
Many such office buildings are being traded repeatedly in the asset market, and the entities that invest in and manage these assets are real estate asset management companies, real estate investment firms, and real estate asset management companies with real estate experts.
With professional investors active in the market, commercial real estate transactions in Korea have become more active and the size of asset investment has also grown rapidly.
Meanwhile, interest in the commercial real estate industry as a career field is growing day by day.
On the other hand, because it is a field that has grown rapidly in a short period of time, there is still a lack of systematic training or manuals for work related to the job.
Additionally, since it is a job that requires expertise, there are many things that people in the field need to continuously develop themselves and learn.
Moreover, beginners looking to enter the commercial real estate industry often find it difficult to know where to start and what to learn.
Although real estate majors learn at least the basic knowledge in school, many of them end up getting jobs without having sufficiently learned the practical skills needed in the field.
As a result, the level of practical knowledge acquired is bound to differ depending on which company you join or which team you work for.
The fact that acquiring knowledge or understanding the job is not easy is partly due to the fact that real estate requires comprehensive knowledge as it is connected to various fields of society.
One of the inevitable challenges that newcomers to the real estate industry face is having to master a wide range of knowledge simultaneously.
Moreover, commercial real estate is greatly influenced by economic conditions and related laws and regulations, making it difficult to grasp market trends unless you are in the field.
This is a point that many people preparing for employment in the commercial real estate industry or those looking to change careers in other fields find to be a barrier.
In an attempt to alleviate some of these difficulties, I compiled the knowledge and information I had accumulated while working in the field and wanted to share with my juniors, and published it in a book.
I wrote this book with the hope that it would serve as a textbook for beginners and novice students preparing to enter the commercial real estate industry, by organizing the know-how and practical work knowledge I've learned through lectures and online content.
This book contains practical knowledge necessary for the operation and management of office buildings, a representative commercial real estate asset.
We have systematically organized what you need to know about working in the commercial real estate industry, focusing on office buildings, a major investment asset in commercial real estate.
We chose office buildings to organize our books because they are the optimal assets for understanding commercial real estate investment and operational management.
Having a basic understanding of office buildings will make it easier to understand other types of commercial real estate assets.
The commercial real estate industry will continue to grow, evolve, and change. We will continually revise this book to ensure it remains helpful to practitioners, while continually adding content to keep pace with this industry.
As the author, I hope this book will serve as a reference for job seekers entering the commercial real estate industry and for junior professionals in the industry.
So, I hope this will be a book that readers will continue to come back to for a long time.
--- From the preface
GOODS SPECIFICS
- Date of issue: September 30, 2025
- Format: Hardcover book binding method guide
- Page count, weight, size: 296 pages | 153*224*20mm
- ISBN13: 9788958214731
- ISBN10: 8958214732
You may also like
카테고리
korean
korean
![ELLE 엘르 스페셜 에디션 A형 : 12월 [2025]](http://librairie.coreenne.fr/cdn/shop/files/b8e27a3de6c9538896439686c6b0e8fb.jpg?v=1766436872&width=3840)
