Outsourced Property Management On The Rise As Building Owners Seek To Streamline Portfolios

Investors and owners of commercial real estate portfolios are seeking new ways to add value to their assets, particularly as economic uncertainty dominates global headlines and daily decision making. Vertical integrators—real estate operators that have historically kept all operations from property acquisition to daily management under one ownership umbrella—are now looking to outsource the property management portion of their business to focus more time and attention on investments.

This “spinning out” of property management reflects a number of emerging trends in the industry. Real estate is a complicated topic for owners and occupiers these days, with questions arising about how much space is needed and for what purpose. Highly amenitized spaces across sectors have emerged as a way to draw people in, shifting property managers’ roles from responsibility for space to now being in charge of experience.