Asset Management has the responsibility to evaluate the value or interest of current owned and leased real property assets and recommend changes that increase its value to the State or its market value to the commercial sector. Within this charge are five specific work processes that are the direct responsibility of Asset Management:
Core and Non-Core - Establishing core and non-core designation for each major asset in the portfolio provides a basic foundation for asset and portfolio management. A core or non-core designation is a starting point for prioritizing assets for evaluation and investment.
Total Cost of Occupancy (TCO) is a responsibility of asset management and is assembled in collaboration with agency leadership. Total cost of occupancy information will influence the level of capital investment, repairs and maintenance; may identify needed occupancy moves and changes; could pose alternate ownership / leasing models, and will support an overall portfolio planning approach. TCO provides a framework for making better real estate decisions and measuring costs for comparing asset performance.
Asset Evaluation is a deep analysis of a single, particular asset. The results from asset evaluation provide a basis to make portfolio-level decisions around acquiring, disposing or renovating assets. The asset management team combines multiple sources of information during these evaluations to determine current and lifecycle costs, feasibility and highest and best use.
Asset Prioritization is an exercise of identifying properties within the portfolio that have the highest importance for surplus, investment or change. This exercise seeks to continually balance the mix of assets in order to maximize the value to the State.
Surplus Property is the exercise of setting portfolio-level disposition goals and then working towards these goals on an asset-by-asset basis. Establishing a Surplus Property Log shall allow the Asset Management team to constantly look for means to rebalance portfolio assets and to achieve the best combination of cost and utility. Identifying and tracking surplus property ensures that a defined set of objectives is driving the disposition activity. This task also recognizes that surplus property must be linked to overall Strategic and Portfolio planning activities of SPC.