Imagine that you are the owner of a beautiful house. However, it is not you who live in it, but the tenants. The building is located in a great and desirable location. What is more, it is equipped with the latest technological solutions and modern interior design elements. However, over time, the house “ages” and loses its “freshness”. Things that were once considered state-of-the-art become simply ordinary, and as a result, are perceived as old-fashioned. Lack of care for the house and reluctance to invest in the property can result in the termination of the lease, lack of interest from new, potential customers and, ultimately, wasting a great opportunity for high profits.
This is one of the traps that many developers fall into. The blame for this is the neglect of capital expenditure, i.e. Capex. The costs directly related to the development of real estate are one of the most important activities of every developer who wants to provide tenants with excellent spaces in the long term.
Capex management requires a specific type of skill. Developers need to think about their properties through the prism of asset management.
