Property and Facilities Management

Running head: PROPERTY AND FACILITIES MANAGEMENT
Property and Facilities Management
Name of student
Name of University
Author’s Note

1PROPERTY AND FACILITIES MANAGEMENT
Table of Contents
1. Life Cycle Management..................................................................................................................3
Undertaken Cost Benefit Analysis...........................................................................................................3
Realized the Return on Investment..........................................................................................................3
The valuation that has taken place...........................................................................................................4
Those responsible for efficient returns.....................................................................................................4
2. Lease Management..........................................................................................................................5
Documents that are needed to draft..........................................................................................................5
Requirements of the agreements..............................................................................................................5
Understanding the negotiation that is taking place..................................................................................6
Who is responsible for managing what?..................................................................................................6
3. Financial Management.....................................................................................................................7
The cost involved and Costs incurred......................................................................................................7
Cost budgeted or monitored, reported......................................................................................................7
Costs responsibility..................................................................................................................................8
4. Risk Management............................................................................................................................8
Different Type of Risk Involved..............................................................................................................8
5. Space Planning...............................................................................................................................13
Plan Needed...........................................................................................................................................13
Performing the space planning...............................................................................................................13

2PROPERTY AND FACILITIES MANAGEMENT
Reported, Monitored and performed the space planning.......................................................................14
Space Planning Responsibility...............................................................................................................14
6. Final Recommendation..................................................................................................................15
Stakeholder involvement........................................................................................................................15
Benefits of the project............................................................................................................................16
Future cost of commitment....................................................................................................................17
Environment considerations...................................................................................................................18
Cash flow requirements.........................................................................................................................18
Negotiation and documentation strategy................................................................................................18
Reporting requirements..........................................................................................................................19
Risk identification and reduction...........................................................................................................19
Staff amenity and future growth............................................................................................................20
7. Reference.......................................................................................................................................21

3PROPERTY AND FACILITIES MANAGEMENT
1. Life Cycle Management
Undertaken Cost Benefit Analysis
Important progress requires to be made for the cost benefit to manage the life cycle of the
current office and analyse the infrastructure of the future workplace. The project benefits and
cost would be measured regarding the total equivalent value of money that benefits the project's
community (Azzouz et al., 2017). The senior management decides to provide benefits regarding
$ 750 amount for a current rental that is considered for the project. The growth is forecasting at
10% per annum were current density is 8m2 per person. The value could be either less than or
greater than the market value. In this project, the management has provided an estimated value of
around $500,000 for about every year until the next move. The analysis of the cost-benefit that
needs to be undertaken in this project is to approach and decide by putting the benefits on one
side and the cost on the other side (Säynäjoki et al., 2017).
Realized the Return on Investment
For the goals of the business, the needle can move to achieve the space of the office for
the future. The physical office can benefit the business greatly by ensuring productivity for
widening the office. The facility manager would align the space of the office and create an
environmentally efficient to overarch the business goals which have a higher return on
investment (Muehlemann, & Wolter, 2014). The facility manager would upgrade the office for
making the business case and try to optimise the current space. There will be a meeting in-house
with ease and convenience for the customers. A comfortable room for a meeting, having a space
for easy-to-navigate and company values that have innovative technologies. The bottom line for
minimising the impact of the costs would be to use the resources that could maintain the

4PROPERTY AND FACILITIES MANAGEMENT
equipment consistently. It is helpful for the managers to use space management tools for the
square footage (Lavy, Garcia, & Dixit, 2014). From the workplace management system, the data
and visuals can be used to reduce the internal costs of the office (Miller, Goore & Uddenberg,
2018).
The valuation that has taken place
Valuation for the office mostly contains the elements that are necessary for the net annual
value. For office valuation, some Comparative Principles are used for valuation and be able to
recognise that some of the parts of the office space are consistently valuable (Damodaran, 2016).
The most valuable space for the office users are the elements of the office that have a higher
value (Waber, Magnolfi & Lindsay, 2014). Additionally, accommodations can be made on the
basement, or the second or higher floor which may have a lower value than the first or the
ground floor of the space-dependent that have access to nature (Şahin et al., 2015). It is better to
mention the valuation that has the net internal area of the room. The office accommodation
valuation with the office space revolved around the office classification system and based on the
separate classifications the final classification is made (Langevin, Wen & Gurian, 2015). It is
difficult to determine the services that are inclusive of paying the rental fees for the office space
and would, therefore, be valued at the office level properties (Schor & Fitzmaurice, 2015).
Those responsible for efficient returns
The people who are responsible for the efficient return include the commercial tenant.
This tenant is the external parties for the lease space of the office that would be defined for some
period (Chau & Wong, 2016). The next is the facilities management information system who
will be helpful in space management (Love et al., 2014). A hot desk that could be used by multi-
workstation and different employees can easily access it (Kim et al., 2016). The senior executive

5PROPERTY AND FACILITIES MANAGEMENT
is the staff members of the office that has the managerial post such as the director, CEO, vice
president, CFO and more.
2. Lease Management
Documents that are needed to draft
For office space, a business has to operate by drafting a lease for the rights of the
property. The lease itself is the legal document for renting the building for the office space
(Remøy, & van der Voordt, 2014). It gives the power to sue them if the payment is not made.
The owner can even charge for some security deposit for some duration of the lease or can either
hire an attorney or draft legally an enforceable lease that can be used multiple times (Furth-
Matzkin, 2017). There are some specific terms written on the agreement and is organised to
outline the document. Identifying the property owner is necessary.
Requirements of the agreements
The agreements are required at a time when confirming that the company is about to rent
some space for the office. The agreement contains the information on the length of time that the
company need to lease for the office space (Janda et al., 2016). There is some major construction
required in the commercial office space before moving into the new area. The terms and
conditions are inserted in the contract which can protect the interests and prevent some
misunderstanding that comes in the future which usually leads to disputes, trouble, litigation or
financial losses (Kumari, & Nakano, 2016). The lease agreement gives rights to the company to
rent the space for the office. The eight months of lease agreements is a common form of
agreement that is used for the commercial properties (Ajupov, Kurilova & Ozernov, 2015). It is
important to specify the duration for the lease that is to be made. It is very much considered that