What is Real Estate Project Management?

real estate projects differ from all other fields in terms of the number of different components they contain, and the complexity of these components necessitates a professional project management for a successful and lasting result. A well-planned project management process is the only way to ensure that a real estate project is completed on time and cost-effectively, regardless of the size of the project.

Projects in the real estate sector can meet many different needs, from renovation projects that require detailed planning to multi-stakeholder negotiations and new designs. Therefore, each project needs to be evaluated, scheduled, risks calculated and followed within its own boundaries. But generally the management of a real estate project encompasses the processes of planning, program management, resource management, collaboration and stakeholder relationship management. In order for the project to be carried out properly, the manager defines the business processes, divides the projects into units and synchronizes the stakeholders that need to be together. In addition, project managers are also interested in administrative responsibilities such as reporting project processes, planning risk reduction moves in the project and ensuring healthy communication of all teams involved in the project.

How Does Project Management Differ from Operational management or Portfolio Management?

A project is a set of tasks that are done within a certain period of time, that is, with a beginning, middle, and end. Operations, on the other hand, involve never-ending or repetitive tasks for the company. Imagine you want to add a meeting room to your office; planning, designing and commissioning this room is defined as a project and therefore you will need a project manager. But after the meeting room is set up, maintenance of ventilation systems, computers and other technical equipment in the room, cleaning of the room and all such repetitive processes fall under the scope of operation management.

Portfolio Management is about managing more than one real estate (such as hotels, branches, different offices), maintaining certain standards in these places, and keeping profit-loss ratios at predicted levels. Portfolio management therefore involves creating and overseeing a set of investment maneuvers that will meet an investor’s long-term financial goals and risk tolerance.

What Do Real Estate Project Management Companies Do?

Real estate project management companies; They are organizations that appoint project managers for corporate real estate projects, establish project teams using external or internal experts, and ensure that projects are managed at the appropriate time and budget. It is critical that you pay attention to whether the portfolio of projects and other clients of the firm is suitable for you.

What are Real Estate Project Types?

Here are some basic types of projects that can be executed in sync with project management companies in the real estate industry:

Procurement Projects: Purchasing commercial property to expand the company portfolio is a type of project management that includes many different processes. Some of these processes can be exemplified as site identification and evaluation, conducting the necessary zoning/authorization studies to continue the project, organizing the financing or securing the financing layers, negotiating with public bodies, sharing the plans with the media.

Developing a New Construction: Starting and developing construction in a purchased area is one of the business processes where project management is most essential. At this point, the project management can assume the role of developer and ensure that the construction is completed in a certain time frame, put into service and starts to generate profit.

Real Estate Projects in Existing Institutional Buildings: Especially for companies located in more than one location such as retail stores, hotels, multi-office companies, it is inevitable to innovate, revise and transform existing buildings, thus carrying out real estate projects. Numerous examples of these projects include the development of buildings, the introduction of a new brand/logo in the space, for example rebranding after a merger, strengthening the building, innovations regarding accessibility.

Commercial Projects That May Require Special Expertise: Specialized buildings such as medical facilities, hospitals, factories, data centers, distribution centers and high-sensitivity communication facilities may need project management teams that require special expertise. These projects may require private contractors experienced in the firm’s service, technically specialized subcontractors, or engineers with urban planning skills. Therefore, the main purpose of project management is to meet the special personnel, equipment and needs required by the project.