Which of the following actions can asset managers take to improve asset performance?

Extending lease durations is a strategic action that asset managers can take to improve asset performance. By securing longer-term leases, managers create stability in cash flow and reduce the risk of vacancy. This not only ensures continuous revenue from tenants but also minimizes turnover costs and the associated downtime between leases. Additionally, long leases can strengthen the relationship between landlord and tenant, often leading to better care of the property and potentially fewer disputes.

While reducing maintenance costs can be beneficial for profitability, it should not compromise the quality of the asset or tenant satisfaction. Increasing vacancy rates would have the opposite effect on performance, leading to decreased revenue, while offsetting debt service is a financial maneuver that does not directly enhance the asset's operational performance or its appeal to prospective tenants. Thus, extending lease durations is a proactive approach that contributes to the overall health and performance of an asset.