Roof System Investment Strategies
The roof of a fifty story high-rise will often get less attention than
an equal ft2 of roof on a office complex or warehouse.
These roofs will require similar repairs over time but expense as a percentage
of their respective total investment is beyond comparison.
CRS offers Roof Management Solutions developed specifically
for real estate investors and investment firms. CRS helps your asset managers
monitor and dynamically adapt to market conditions that influence cash flow...
CRS Roof Management Solutions Brochure
Successful roof investment strategies help investors improve ROI by
managing the life-cycle of capex assets and equipment. Management models
can include a single property, building complex, regional holdings or
global investment portfolio.
The ROI of roof asset investments improve in direct proportion to the quality
of the roof management and maintenance programs implemented.
Tradition rears two approaches: correction of identified problems and reactive
repairs. The latter method of random maintenance is centered on emergency repairs,
leaks and maintaining known roof deficiencies.
Demand driven roof maintenance allow property owners to expense repairs
but results in a higher replacement price at some time in the future.
Risk include increased annual maintenance expense, deck deterioration, tenant
disruption and additonal interior repairs that can reach $110 per ft2.
An effective roof maintenance model will accurately forecast expenses
across an assets life-cycle. Both expensed and capex funding requirements are
planned for in advance, monitored and adjusted to facilitate the dynamics
of different types of property investments.
Depreciated capital expenses for a new roof system are inevitable.
A new roof should last twenty (20) to thirty (30) years
and have annual operating expenses that are lower than average. Unfortunately,
many roof systems begin to fail in less than ten (10) years as a result of
trade-offs made during installation and poor maintenance.
The cost to maintain a failed roof system over the next five to
seven years can equal the expense of replacing it today.
So it's understandable that investors who scrutinize roof condition and accurately forecast annual
cost as part of their due diligence achieve greater returns.
Roof investment management approaches vary by the type of structure as much
as investment strategies influence the best management program.