INDUSTRIAL REAL ESTATE MANAGEMENT IN THE CONTEXT OF LIFE CYCLE THEORY

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.