Comparative analysis of different and common responsibilities in Facility and Property Management. Trends and perspectives. Convergence and integration.

1. Facility vs. Property Management.
A Comparative Analysis: Find the Differences
FUNCTIONS, RESPONSIBILITIES & COMPETENCIES
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Deyan Kavrakov FRICS, CIPS

2. Frequently Asked Questions
What is the difference between Facility Manager and
Property Manager?
Is there borderline between Property Management and
Facility Management?
Integration or Convergence?
Deyan Kavrakov FRICS

3. “Strength lies in differences, not in similarities”
We must value the differences, but also be aware of
similarities and then learn from one another to excel.
Deyan Kavrakov FRICS

4. Factors of Differentiation
Client’s Goals and Business Agenda
Investor/Owner vs. Occupier/User
Perspective
Assigned Scope of Responsibility
TCM © Deyan KavrakovDeyan Kavrakov FRICS
Between FM and PM

5. Deyan Kavrakov FRICS
Differences
Facility Manager Property Manager
 For the Property Manager the building is an
end in itself
 Property Manager's priority is to increase the
building‘s Net Operating Income and value
 Property Manager acts on the principle:
consideration of the planned business cycle
of an asset, which is lease determined
 Property Manager is focused on
Owner/Tenant relations management in order
to achieve balance of interests
 Property Managers control all property
generated revenues and expenditures for
their Investor/Owner clients.
 For the Facility Manager the building is a means
to an end - the end being the optimal work
environment & quality of life
 Facility Manager's priority is to increase the
User‘s primary business effectiveness and
productivity
 Facility Manager acts on the principle:
consideration of the whole lifecycle of an asset
 Facility Manager is focused on end user and
occupier workplace needs and quality if life
demands
 Facility Managers control the expense side of the
property/physical assets budget for their
User/Occupier client

6. Deyan Kavrakov FRICS
Priorities and Agenda of the Client
1. Income – maximize Return on Investment
2. Value – increase the Yield, thus the value of
the property
3. Customer relations – manage Owner/Tenant
relations to achieve maximum occupancy,
therefore max cash flow
4. Operations – efficiently maintain the
property in order to achieve the first three
goals
User/OccupierInvestor/Owner
1. Operations – maintain the property in support
of the occupier’s core business activities and
end users demand for continuous, effective
and efficient work environment
2. Customer and end user relations – ensure
that FM services are optimal cost/quality ratio
and directed to supporting high productivity
of primary business processes and end users
3. Value – preserve and maintain the value of
the property based on whole asset lifecycle
consideration
4. Income (from property operation) – it is
neither priority, nor responsibility

7. Deyan Kavrakov FRICS
Investor vs. Occupier Perspective
• Capital expenditure & improvement
• Tenant mix
• Occupant’s reputation
• Max occupancy vs. Optimal occupancy
 Differing business agenda of
Investor/Owner and User/Occupier
 Colliding interests

8. Deyan Kavrakov FRICS
The daily operations and responsibilities in FM and PM are overlapping to
very significant extent. The key competencies, skills and responsinilities of the
Facility Manager and Property Manager, which are demanded by the clients
(regardless investors or occupants) are so similar, that job descriptions
converge in 75% of their content.
Integration and Convergence
of FM and PM

9. Deyan Kavrakov FRICS
Daily operations and responsibilities in FM and PM are overlapping to very significant extent.
On operational level, FM and PM scope of services are: maintenance, hospitality,
accommodation, safety and security, logistics, technical infrastructure, workplace, ICT, cleaning
and waste management, open grounds, business services etc.
Shared management and analytical techniques; financial tools; methods; procedures; IT
solutions:
• Total Cost of Ownership/Occupancy - TCO
• Life Cycle Costing - LCC
• Replacement Asset Value - RAV
• Return on Investment - ROI
• IWMS, CMMS and CAIFM etc.
Corresponding management functions: strategic planning, risk management, service
management, financial planning and control, performance management, quality management,
people and change management, energy management, outsourcing, benchmarking etc.
Common Ground of FM and PM

10. Trends and Perspectives of FM and PM
 Convergence of FM and PM
 Emergence of Real Estate Facility Management (REFM) – a
management discipline that integrates Property Management,
Facility Management and Corporate Real Estate
 Mergers & Acquisitions of PM and FM companies:
• C&W and DTZ
• CBRE and GWS (Global Workplace Solutions) of Johnson
Controls
TCM © Deyan Kavrakov

11. Contemporary Facility and Property Managers provide the
answers to plethora of questions What and How. When it is up to
leadership, the perspective of Investors and Occupants drive
the answers of Why.
More detailed analysis can be found in the full article at
https://www.linkedin.com/in/deyankavrakov
Deyan Kavrakov FRICS
Managers answer to What and How,
leaders the Why.
Simon Sinek