Outsourcing by Real Estate investors: chances for real estate managers?

Abstract

In the Netherlands outsourcing real estate management by institutional investors is not generally accepted. Since real estate investment became common use by institutional investors about 1960, investors started their own real estate management departments. Only property management regarding daily administrative, technical and commercial management was outsourced to external parties. The aim of this paper is to investigate whether there are chances for real estate management organizations to reinforce their market position. To answer this question a survey was done among three different types of real estate investors: institutional investors, limited partnerships and private investors. In the survey current and future outsourcing strategies, motives and the opinion about real estate managers’ services were questioned. In the conclusions a comparison is made between outsourcing strategies of different real estate investors. Chances for the real estate management sector within this market are formulated.