Commercial Real Estate remains an excellent investment these days. With property prices at their lowest prices in a decade, and interest rates low, investing now may be one of the greatest opportunities of our lifetimes.
The down side is that managing these properties is more difficult than ever. Dealing with the higher turnover that new business failures are causing, property maintenance requirements, state and local legal issues and regulations, occupancy, and many other concerns are both time consuming, and risky, require a constant investment of your time in day-to-day management and self-education.
This brings us to the commercial real-estate management company. Whether yours is a shopping center, warehouse storage, or an office building, top-notch commercial management companies have the experience and knowledge to take the burden of keeping your property profitable off of your hands.
The real question isn’t should you utilize a management company, but how to decide which company you should use. When analyzing your potential property management partners, you should concentrate on two principal areas.
Management Functions
The most critical function your property manager will fulfill is the maintenance and improvement of the property. Knowing local regulations, keeping the property in excellent shape, and constantly improving the tenancy experience will keep the local regulators out of your hair, and have the tenants lining up to fill your vacancies. Collecting rent, finding new tenants, maintaining common areas, and doing all the little things necessary to give you peace of mind are the keys. When you’re interviewing companies, ask about their experience in like properties. Do they have extensive experience in managing shopping centers, for example Ask to see some of their existing managed properties. Talk to the tenants; see how they feel about things. Find out how often they report to you and the communications methods.
Consultation Services
Your commercial property manager is the expert. And he should be able to share that expertise with you, on-demand and proactively. What can be done to improve the value of the property When is a good time to sell When is a good time to expand What can be done to improve the return on your investment In addition, the need to stay on top of legal requirements such as licenses, leases, taxes, and record-keeping are all within the scope of what your property manager should provide.
The great news is that the experts are out there. Companies with decades of experience, and hundreds of properties under their management have seen it all and have the processes and procedures down to an art. Commercial property managers exist that specialize in your particular type of properties, and who will take the burden of management off your shoulders and bear it willingly. Just shop carefully, and remember to ask the right questions.
Tags: commercial management, commercial real estate management, communications methods, critical function, management partners, principal areas, real estate management, real estate management company, self education, warehouse storage