Real Estate

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REAL ESTATE MANAGEMENT: 1990s AND BEYOND

TABLE OF CONTENTS

Introduction

Expansion and Diversity

Human Resources Management

Conclusion

References

REAL ESTATE MANAGEMENT: 1990s AND BEYOND

BY Clark Jones

INTRODUCTION

The Journal of Property Management (1998) reports that real estate has been freed up by certain laws in the 1990s, most importantly, the relaxation of the Glass-Steagall Act of 1933, allowing market access to real estate by banking institutions; the Taxpayer Relief Act of 1997, allowing property owners indefinite tax deferral on the sale of property (an estimated $91 billion to reinvest in real estate); and the 1998 appropriations bill which cuts housing costs by introducing "mark-to-market" rents (Anonymous, 1998, p. P6S). All of these translate into financial advantages for real estate companies. Interestingly, the 1990s have already seen changes that complement these changes. Most real estate companies have become management companies. Much like an investment portfolio, they not only list and sell property, but also manage and invest in a number of properties. In addition, they are taking advantage of mergers and agreements.

As if this were not enough change in a single decade, many real estate companies are changing the way they do business internally. Although they have always operated on a contractual basis with agents, stakeholding and entrepreneurship have new meaning in the 1990s (Davies, 1995, p. 54). In addition, cultural demographics are changing quickly. This means changes in organizational structures within real estate offices.

This paper will address these changes in the context of the ethical considerations for which real estate has always been accountable.

EXPANSION AND DIVERSITY

Among other things, real estate brokerage services in the 1990s includes understanding and complying with federal and state real estate laws; surveying real estate; evaluating real estate according to specific criteria; ethically representing buyers and sellers and seeing that all agents do likewise’ performing marketing analyses, cycles and trends; establishing public relations and advertising campaigns; conducting business according to corporate management; operating within cooperative ownership agreements; determining investment areas, and analyzing financial procedures of both the c...

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...t real estate brokerages are becoming conglomerates, they must now begin to reconsider the human potential within their firms-and something else. While they are expected to be the megacorporations of tomorrow, they are also expected to retain their ethical and cultural focus.

REFERENCES

Anonymous. (1998, Jan-Feb). Legislation Gets Off the Ground; The Real Estate Industry Awaits New Direction. Journal of Property Management, pp. 6S(4).

Belloit, Jerry, Ph.D. (1997). Real Estate Investment. Clarion University. At: http://www.clarion.edu/cob_web1/courses/realest/re471/index.htm, sld270.htm-274htm.

Bowen, Brayton. (1995, Apr. 3). Wanted: Workforce of the Future. Industry Week, pp. 32(1).

Davies, John R. (1995, Nov 6). Using Work Breakdown Structure in Project Planning. Plant Engineering, pp. 54(3).

Melcher, Richard A.; & Forest, Stephanie Anderson. (1997, Sept. 22). The New World of Real Estate. Business Week, p. 78.

Romano, Ellen. (1995, March-April). Opportunity in Diversity. Journal of Property Management, pp. 30(6).

Sinderman, Martin. (1994, Nov). Strategic Alliances Evolve as New Way of Doing Business. National Real Estate Investor, pp. 72(5)

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