Which strategy involves improving assets to increase their value?

The strategy that involves improving assets to increase their value is the value-add strategy. This approach focuses on making targeted investments to enhance the quality or functionality of an asset, which directly contributes to elevating its market value and attractiveness to potential buyers or tenants. By creating additional value through improvements or renovations, property owners or managers can generate higher returns on their investment.

This strategy is particularly relevant in the realm of real estate, where enhancements such as upgrading facilities, improving energy efficiency, or modernizing interiors can lead to increased rental income and appreciation in property value. The rationale is that through these improvements, the asset becomes more competitive in the market, appealing to a broader base of potential users or investors, thereby justifying a higher valuation.

Other strategies, while important in their own contexts, do not specifically emphasize the process of enhancing existing assets through deliberate improvements aimed at increasing value in the same manner as the value-add strategy.