INDUSTRIAL REAL ESTATE MANAGEMENT IN THE CONTEXT OF LIFE CYCLE THEORY

Abstract

In the process of large manufacturing enterprise management, the problem of the effective management
of real assets is very important. Within a market economy, real estate is an expensive commodity, the value
of which depends on many factors such as the type and class of property, type of use, the period of economic
life, the wear rate, the economic situation in the country, etc. According to the conventional theory, the main
performance indicator of real estate is the dynamics of its market value. In spite of the deep study of the
theory of real property appraisal, the existing methods do not allow to adequately appraise industrial
properties because they are developed for commercial or residential real estate. Thus we see obvious
contradiction between the objective need in effective property management on industrial enterprises and lack
of theoretical research in the field of real asset management. The paper deals with the analysis of life cycle
theory for real estate management. The author suggests a function of the development of industrial real estate
management policy based on life cycles of real estate, business and real estate market. The results can be
used in the process of industrial real estate management.