Which of the following would be considered asset management activity?

• A. Handling leasing negotiations for a single building
• B. Developing a plan to maximize value across a portfolio of properties
• C. Inspecting a property for safety
• D. Selling a property to a homeowner

Answer: (B)

Asset management is about coordinating and maximizing the long-term value of an investment portfolio, focusing on strategy across multiple properties rather than handling one asset at a time. Developing a plan to maximize value across a portfolio of properties fits this approach because it involves setting portfolio-wide goals, allocating resources, and making strategic decisions about acquisitions, dispositions, financing, and capital improvements across multiple assets.

The other activities are more operational or transactional in nature. Handling leasing negotiations for a single building deals with day-to-day tenant occupancy and lease terms for one property. Inspecting a property for safety is a maintenance or due diligence task focused on a specific asset. Selling a property to a homeowner is a single-property disposition or sale transaction rather than ongoing asset-management oversight.