Reviewing the Year’s Results for the Real Estate Management Market

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The end of the year is an appropriate time for summing up the results of the office market. Armen Sarukhanyan, General Director of RD Management, shared his thoughts with the portal CRE.ru.

The current market situation presents a certain challenge for management companies, which need to preserve their existing portfolio of properties as well as volume and quality of services provided.

“The external environment and the expectations of discounts on lease rates do not directly provide grounds for lowering prices for the services of management companies. During a time of inflation and unstable ruble rate, the prices on maintenance materials increase. At the same time it is necessary to index the salaries of employees in order to preserve one’s human resource potential. This occurs thanks to a reduction in the company’s profit margin,” Armen Sarukhanyan says.

QUALITY OF SERVICES

According to the General Director of RD Management, building owners are interested in preserving their partnership relations with management companies. During times of instability on the office market, quality of services is a critical condition for retaining tenants. Now is not the right time to be economizing on service quality, including the quality of building maintenance.