VGM NL commences with Real Estate Management Benchmark
January 8, 2014
The industry organisation VGM NL will introduce its own benchmark for real estate management. Ten members of this industry organisation for real estate management in the Netherlands will act as founding fathers to enable the establishment of this benchmark. The VGM NL members who have joined forces to develop this benchmark are: Actys Wonen, Bilfinger Real Estate B.V., CBRE B.V., DTZ Zadelhoff Property Management, Grontmij Vastgoedmanagement b.v., Jones Lang LaSalle, MVGM, WTC Schiphol Airport, vb&t Vastgoedmanagement and Vesteda Property Management. The benchmark will be set up and maintained by TIAS School for Business and Society.
Image: © Nationale Beeldbank
Jac Bressers, chairman of VGM NL, is delighted with the market players' initiative to develop a benchmark for real estate management. “VGM NL is celebrating its fifth anniversary this year and represents relevant businesses active within real estate management. VGM NL has hoped for a benchmark from the outset because it provides a vital contribution to the continuing professional development we aim for."
Ilse Kaandorp, director of VGM NL: “The ten market players that have now committed to participating in the benchmark represent the office, shop and housing real estate segments. We are convinced that the number of participants in this benchmark will increase rapidly. Practically the entire real estate management sector agrees that such a VGM NL benchmark offers added value. We have already received numerous positive responses from other market players, including both institutional and private investors as well as housing corporations and the government. They are also confident that an institute such as TiasNimbas will be able to develop the VGM NL benchmark - including the data management - in a professional manner.”
The time is ripe for more transparency within real estate management, according to Ingrid Janssen, Associate Professor at TIAS. “With the VGM NL benchmark we are providing real estate management organisations with a tool for measuring and comparing management performance. We are seeking to improve management processes and ultimately ensure even more professionalism within this sector.”
Wealth of information
Janssen believes that real estate organisations have a wealth of information at their disposal. “This enables the identification of benchmark indicators in a professional manner. In addition to an analysis for each real estate category (dwellings, shops, offices), an analysis can also be made according to the type of property (e.g. multi-level vs. single-family home), type of location or type of client (institutional vs. private). Indicators can also be produced for service and maintenance costs on a detailed level. These are also of value to smaller real estate management organisations as they can compare their operational data and budget for future expenditure.
Furthermore, trend analyses can also be created to provide an insight into how this operational data is developing over the course of time and how these are connected to other indicators such as inflation, consumer confidence, construction price increases, etc.”
Consequently, the benchmark project will not be limited to a benchmark for a number of indicators, but applied on a significantly broader basis, according to Janssen. “On top of that, the partnership with VGM NL offers an effective channel for sharing results with the wider real estate market.”
The first results of the VGM NL benchmark are expected during the VGM NL conference that will be held in mid-2014 to mark the fifth anniversary of VGM NL.