There are many things to explore as part of a new property management listing on your brokerage books. In this audio program, John Highman talks about the factors to question and review. Most particularly key matters to look into will include:
You can listen to the audio program here to understand exactly how you can approach the handover process in commercial property management today. It doesn’t matter whether you are managing a retail shopping centre, or a commercial office tower. The same strategies and processes apply. Attention to detail will help you with the fact review and gathering process.
Real skills are required and special people should be dedicated to the process of providing specialised services to investors and company owners.
In this audio program, John Highman talks about the special and unique skills required to manage a commercial or retail property today. Learn how to grow your brokerage business from a base of management activity and property management clients.
Property Facts and Controls
When you completely understand the strategies behind property management, you can develop special services across asset performance including the following:
– tenant retention
– income enhancement
– lease negotiation
– expenditure management
– net income generation and cash flow control
– lease administration
– maintenance management
– risk minimization
– renovation and refurbishment activities
– vacancy minimization
So there are many concepts and strategies within this list. If you take each individual concept, there are many specialised services that can be provided to your clients and customers.
In this audio program, John Highman talks about the importance of commercial and retail property management in brokerage performance today. Learn how to improve your brokerage business and the future commission opportunities available in your town or city.
There are many different strategies to consider when it comes to pitching for a new commercial property management. In this audio program, John Highman talks about the particular elements of a property management presentation that will be of relevance to most clients today.
Listen to the audio program and develop some specific ideas to modify your property presentation and management ideas. Don’t forget to talk about income enhancement, tenant mix changes, property controls, and risk reduction.
If you are about to take on a new commercial or retail property from a management perspective, there are things to think about. There are things to think about and the property management handover is critical to gathering the right information. Every client and every property will have unique issues to prepare for and ask questions about. (NB – you can get plenty of property management tips in our Snapshot program right here – its free)
There is something to remember here about a property handover and why it is so important; you only have a short period to get the full information about the property and its performance over time. Questions must be asked of the previous property manager, owner, or tenants.
So here are my experiences and ideas relating to taking over a complex commercial or retail property. Preparation is the key to success in capturing all the recent and relevant property detail. You may be able to add to the list based on the location and the landlord:
Check out the physical aspects of the property – it always helps if you visit the property first before you do other things. The visual aspects of the property will help you significantly with investigations and questions.
Review the tenancy mix – in a property with several tenants, look at the types of businesses, location of each tenant, and the performance of the property for the tenants in situ. Some tenant types put pressures on the property such as security or staff issues.
Review all the leases relating to occupancy – the leases will have unique elements of occupancy to review. All leases should be read; extracts and critical dates should be taken from each lease where you can see important facts impacting occupancy.
Understand the vacancy factors – any vacancy now or in the future is an issue. Resolve vacancies through a tenant retention plan, a marketing plan, or a targeted leasing program. You can also move existing tenants around the property. Think outside the square when it comes to tenant movement and placement.
Look at maintenance and risk factors – any person owning a property assumes risk and must plan for the challenges of property ownership. The building, the improvements, the location, or the tenant mix, can create risk matters and pressures. See things for what they are and how they could challenge the investment performance.
Review income and expenditure results – there will be a pattern of income and expenditure to review and consider. The last few years will have value to you when assessing passing income and net income. The results of the last few years will help you set new budgets for the property given the existing tenants, leases, vacancies, and landlord targets.
Talk to the landlord about expectations and reporting – every landlord will have certain requirements of reporting and control. The property will have income and capital value targets over time. How can you report to that criteria for the current property owner? Have you got a software property management program that allows you to report conveniently about the asset and the current results of income, leasing, and tenant activity? The information that you gather from a property management handover will be captured into the software that you are using to manage the property.
So, there are many things on this list to investigate. One thing or one question will lead to many others. As you take on a new property to manage, be prepared for the information and the facts that come your way; take plenty of notes.
The idea of inspecting every property in your commercial real estate portfolio can be a bid daunting given that there are plenty of things to look at and investigate as part of the inspection. The greater the number of properties that you have to manage, the bigger the process of review and documentation. (NB – you can get our free commercial real estate course for brokers right here)
When you have lots of tenants in occupancy, the whole equation of inspection becomes more complex given that many tenants are in occupation and they all run different businesses. So the inspection process has to be comprehensive and records need to be kept. The property manager or the center manager has to implement the property inspection process regularly and in a detailed way.
In this audio program, John Highman talks about the routine inspection process that is all important in the commercial and retail properties under management.
The commercial property management segment of the market can be quite lucrative from a brokerage perspective. The clients that you serve in that way require specialized skills and services over an extended period of time. The complexity of the property can involve strategies and activities across the tenancy mix, leasing, vacancy resolve, maintenance management, asset planning, and income performance. There are many things to do and many ways to approach the challenges that the client may face.
So the message here is that you can and should develop a significant property management portfolio in your real estate brokerage. Take the time to develop a list of clients and prospects who will need your services in management at some stage in the future. Develop a prospecting process to open the doors to management opportunity.
The best way to attract commercial real estate clients and those needing management services is to directly prospect the owners of the best buildings in the best locations. It is always preferable to manage a building with multiple tenants in occupancy and multiple levels of income generation.
The bigger buildings and those with a complex tenant mix require expert management help. They also require complex software management programs to administer the required controls on leasing, maintenance, tenant mix, and income optimisation.
So there are some distinct advantages here to be optimised. In this audio recording, John Highman talks about the opportunities of commercial real estate property management in brokerage today. See if you can use some of the tips that John talks about to open up your brokerage opportunities in this way.
Budget time in commercial property management is something that requires accuracy and planning. Mistakes can be made when it comes to setting the budgets that apply to income and expenditure in an investment property. Many property managers understand the key issues to focus on when it comes to budget establishment.
Essentially a budget of this type involves complete review of the income possibilities for the building given the existing tenancy mix and the prevailing property market. Assumptions have to be made given the known facts and the targets of the landlord.
The history of the property will have some important indicators to merge into the ongoing property budget. You can learn a lot through reviewing the timed income and expenditure over the period of the last few years.
In this audio recording John Highman talks about the strategies behind the commercial and retail property management budgeting process. Understand the key factors that apply, and then merge them into your business plan for the asset.