What should be the first focus for an asset manager when dealing with troubled assets?

The first focus for an asset manager dealing with troubled assets should indeed be on understanding the causes of the property problems. Identifying the root causes of issues allows the asset manager to develop a targeted strategy to address the challenges effectively. By understanding whether the problems stem from financial mismanagement, physical property conditions, or market dynamics, the manager can create actionable plans to mitigate or rectify these issues.

For example, if the property has high vacancy rates due to location challenges, the asset manager might focus on improving marketing strategies or considering renovations to attract tenants. Conversely, if financial weaknesses are identified as a cause, the asset manager can work on improving cash flow or restructuring debts. The emphasis on uncovering the causes sets the foundational knowledge required to take meaningful steps toward remediation, ensuring resources are allocated efficiently and effectively. This informed approach ultimately contributes to the overarching goal of improving the property's performance and value.