What are Asset Management Fees in Commercial Real Estate?

What Do Asset Management Fees Pay For?

Asset management fees take up just a small percentage of the revenue generated by a real estate co-investment, and the benefits you receive in exchange are significant.

These fees cover the time and costs associated with deal sourcing, investor onboarding, and ongoing tasks like reporting, managing the asset and overseeing investor relations.

Keep in mind that this differs from property management fees, which cover the costs of operating and maintaining the property.

How are Asset Management Fees Determined?

Asset management fees are typically set up in one of two ways. In some cases, sponsors charge a flat rate to their investors.

More often, sponsors will take a fixed percentage of the revenue a property generates.

Choose the Right Sponsor for Your Next Real Estate Investment

At Excelsior Capital, we’re committed to making the co-investment process as easy as possible for our investors. We handle all the heavy lifting associated with sourcing, vetting, and managing our deals, and our extensive network allows us to find off-market deals that you’d likely be unable to access otherwise.

We’re also focused on finding the highest quality of commercial real estate deals, and our strategy has delivered consistently strong results for our investors.

In particular, we focus on commercial assets in healthy secondary markets, especially asset classes with low volatility, including medical office buildings and flex/light industrial properties.

To learn more about Excelsior Capital and our direct co-investment opportunities, please fill out this short form to get in touch with a member of our team.