Commercial Property Manager

Should I Hire A Commercial Property Manager?

Often a new building owner doesn’t realize all that is required to manage commercial real estate. It won’t take long to learn there is more to it than just depositing rent checks. However, it’s not the kind of thing you want to learn on the job. There is too much on the line to risk managing a good property poorly.

Property management is a full-time job.

If you are an experienced building owner, you already know that property management is a full-time job.  A good property manager must be proactive when considering the volume of detailed tasks that need regular tending. Anticipating needs, rather than waiting for inevitable problems to develop, signifies a good property manager.

That means an organized and systematic approach to market analysis, tenant relations, collections, financial reports, lease management, marketing, hiring vendors, managing repairs, scheduling annual inspections, and the hundreds of other issues a commercial building requires attending to. To be sure, anyone can learn how to do these things and create systems around them, but it takes time.

Commercial property management experience is essential.

At some point, it may become evident that unless you intend to become an experienced property manager yourself, then hiring a professional commercial property manager is the way to go. A good property manager will already have the processes, relationships, checklists, data, and knowledge to get the most out of your investment for you.

Unless you are onsite, an experienced property manager will spend more time at your property than you will. They will know your tenants better than you will. They will understand the physical condition of your building better than you will.

The point of hiring a good commercial property manager is to free you up to spend your time on more profitable activities. Perhaps activities that can help you to own more commercial real estate. If you need a property manager, contact us today.

Investing in Commercial Real Estate

Investing in Commercial Real Estate: It’s as Much a Business as an Investment

Let’s be clear, investing in commercial real estate can make you, and it can break you. To be sure, a lot of folks have made and lost fortunes in residential investing too. This article is about commercial investing, so that’s what we’ll consider here. That’s not to say investing in commercial real estate is really any different than any other business you may invest in. It has the potential to change your financial life, but without a serious business approach, you are almost dooming yourself to fail.

Unlike stocks, bonds, or mutual funds, investing in a commercial building is more of a hands-on affair. If you have a multi-tenant building, it’s even more so. That doesn’t mean you have to be the one to be hands-on, but someone does. There are so many tasks, and circumstances particular to your property, that may not apply to other like properties, that keep commercial real estate from being a passive investment.

Choosing Commercial Real Estate

Once you’ve decided what kind of property you want to buy, whether retail, office or industrial, you need to be sure to get a good price. You do that by performing thorough due diligence, to make sure you’re getting what you pay for. That is only the beginning though. You should maintain the commercial property with a competent contractor.  It should also be competitive, relative to its immediate market. It needs to have happy and successful businesses for tenants. Also, it needs to be watched for opportunities to reduce expenses and increase profits. These and other good landlord skills are needed to ensure your commercial investment continues to be worth your time and money.

Remember, you don’t need to be the one to do all of this work, and unless you are experienced at managing a commercial property, you really shouldn’t. Some of our clients who probably could manage their own property, don’t. There is so much more to consider than what’s here. If you want to learn more, check out our reviews, and ask us to help you.

Why a Small, Local, Commercial Real Estate Firm Might Be Right for You

One Reason Why a Small, Local Commercial Real Estate Company Might Be Right for You

Every commercial property owner and tenant has to decide when to hire a property manager or broker.  Should you choose a small local commercial real estate company or a larger one? Obviously, there is more a lot to consider. So, the following might be helpful if you are trying to decide who to go with.

Large Firm Talk

Recently, I was researching other commercial real estate brokerages in my market. A question was asked on the website of one of the large national firm’s landlord representation page. I thought the answer demonstrated perfectly how large corporate firms could be very different from small local brokerages. The question was: “How can I distinguish my building from other properties?” And the answer went like this:

“Cultivating and highlighting your property’s unique amenities requires a nuanced understanding of the property, local ecology profile, and the market at large. It’s also important to showcase the benefits of adjacent tenants and services, as leasing space to complementary businesses can help foster a sense of community that makes the property more desirable.”

Small Firm Talk

Now I get it; some folks really talk like that. Some companies may need a broker that talks like that because that’s how they talk at their company. However, here is a different way to phrase the above answer. “You need to have a thorough knowledge of your property and market. And, by describing the tenant mix in your building and the surrounding area, you can make your property more attractive to prospective tenants.” I know it doesn’t sound as fancy, but that may be closer to how you talk.

It’s a subtle point I’m making here, but different firms have different cultures, and you might want to consider the culture of the firm you are going to be working with. That’s not to say all small firms are down to earth. Many small brokerages try hard to look and sound stuffy and important, but we don’t talk or act like that, and I think our clients, even our big Fortune 500 clients, tell us they appreciate that. If you want to learn more, check out our reviews, then ask us to help you today.

Commercial Property Management Company

What Can a Commercial Property Management Company Help With?

Every piece of real estate is different, as is every portfolio and investor. At some point bringing on a commercial property management company makes sense. So, if you own commercial real estate, a good property manager is going to take a lot of things off your plate. Also, they will give you “fresh eyes” to see what opportunities and threats you may be overlooking.

Create a Strategy

Beginning with a strategy that should take into consideration the goals of the property owner, the age, location, history, and condition of the property, and other relevant considerations, a plan is developed. Depending on the property it can be more or less formal. What is most important is that it becomes a guide for the property management company. Going forward, the guide will help to make decisions that reflect the mind of the owner, as closely as possible.

Customize a Plan

Once a property manager understands the strategy, it’s time to work out the nuts and bolts of how the property will be managed. This customized plan is largely a schedule to implement the hundreds of tasks that a commercial property needs to be accomplished over the course of a year and beyond. Tasks like maintenance, janitorial, inspections, budgeting, financial reporting, insurance reviews, communications, marketing, and on and on. At some point, the properties will need a new roof, new HVAC systems, and other large items replaced. There needs to be a discussion and a plan for that too.

As you can imagine, commercial property management companies, come in all shapes and sizes. A large corporate owner or a real estate investment trust requires giant corporate property management companies with each aspect of management run by a separate department. Most commercial property owners don’t require that, and frankly wouldn’t be a good fit for those big box management companies.

Our company is not a giant corporation. We are a local commercial property management company in your market. Check out our reviews and then ask us to help you today.