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Career Tips and Advice for Commercial Property Managers

City buildings on the edge of a river. Commercial high-rise buildings and bridge.

The levels of knowledge and the professional skills required in commercial and retail property management are unique and deep.  They are quite different to the skills required in a leasing or sales situation.  A property manager is a differently skilled person, and they need to look at the big picture and remain focused on their properties and clients for months if not years.

 

That long-term focus allows the managed investment to improve over time through changes to the tenancy mix, the cash flow, and the property function.  The investment process is lengthy; the investment requirements of clients will be individually unique.  That is why and where professional service and property manager performance will underpin client attraction, retention, and engagement.

 

If commercial property management is a career for you, then there are some things to learn and disciplines to implement for the long term.  Expect to be very busy as you embark on your career and remain in it as a professional.

 

What do you need to know?

 

You will need to learn about the legalities of occupancy, investment performance, leasing, cash flow strategy, and property documentation.  Control systems will be at the centre of your property management career and portfolio control.

 

Every day there will be pressures on your portfolio and your properties with tenants, maintenance, landlord focus, reporting, and risk management.  As part of your career, you will be at the centre of many events, requests, and communications.

 

If your properties and workload pressures are excessive, you will lose control of the ‘property management process’; that then leads to unhappy clients and out of control tenants.  There is a balance between quality property management services and a sensible workload of tenants and landlords.

 

Typically, the landlord will be your client, and you will be the main controlling factor to property performance and investment outcomes.  That is why the skills of the property manager are so important.  The days of collecting rent and maintaining the property are well gone.  The strategic approach to property management is now well established and evolving in new and different ways with efficiencies in building technology and the requirements of local business.

 

What do you need to do?

 

Are you ready for the property management challenge?  If you have a large portfolio or a long list of tenants, the complexity of the daily workload just gets deeper and more challenging.  There will be plenty of work to control and direct.  Here are some rules to help you with that approach:

 

  1. Knowledge – get to know everything possible about your location, the leases, competing properties, business activity, rents, and investment priorities. Through a substantial level of knowledge, you will see how you can improve an investment situation for your clients.  That is where tenant mix changes and leasing strategies will help with property performance.  That then becomes an important part of your professional services.
  2. Complexity – there are many variations to tenancy mix control, lease negotiations, rental cash flow, and property performance. The decisions of today with a tenant or lease matter will impact the investment for the long term.  Understand your decisions and how you can improve the investment outcomes for your client.
  3. Clients – every client will have different pressures and priorities when it comes to property performance. Get to know those factors with your clients, understand their portfolio activity, and look at the life cycle of their investments.  Don’t just manage a property but understand the asset and the focus of the client.
  4. Controls – there will be different systems that you can use to help you in providing services to your clients. Software programs will cover the facts and variables of lease management, rent collections, maintenance, and facility management.
  5. Reporting – report about your managed properties in the ways that the landlords require. Information will help them make choices with rents, occupancy, and expenditure spending.
  6. Tenants – expect the tenants to be pressuring you on their issues and their occupancy. A retail property is a prime example of that pressure with many tenants positioning for better sales, lower rents, and a successful business.
  7. Property performance – every property should have a business plan and a budget to work to over time. The client or landlord will be setting investment priorities and cash flow controls.   If you manage properties for many clients, the issue gets deeper and more challenging.

 

Through all these pressures and strategies there will be opportunities for a professional property manager to excel in skills and career development.  Are you ready for the challenge?

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Ways of Building Tenant Mix Strategies that Work in Retail Shopping Centers

shopping center mall

In a retail shopping center, there are key factors to watch that can impact the shop tenant mix and the vacancy factors.  (NB – you can get plenty of retail shop leasing tips in our Snapshot program – its free)

As a leasing expert in retail you really do need to balance all of these issues mentioned below in any shopping mall and the shopping center, particularly when placing a tenant:

  • Positioning a new tenant in the retail cluster of tenants
  • Choosing rents that aligned to the local market and that are achievable for the long term
  • Lease documents that build the landlords investment position over time
  • Lease clauses that encourage the tenant to build their successful retail business

So there are things to do here.  I have said many times that ‘retail’ is perhaps the most unique and special part of investment property performance.

In this audio program, I talk about the special factors of retail leasing and tenant mix establishment.  You can get the audio here below:

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Commercial Real Estate Leasing – Rental Income Growth Strategies for Agents

City buildings on city skyline.

When you work in commercial real estate leasing, you will need a good degree of local market awareness to help you with the leasing and rental strategies of any property negotiation.

Note – You can get plenty of commercial real estate leasing tips and ideas through our regular coaching and training material right here.

As you work for different landlords with different property types locally, the market rents, and the occupancy costs vary from property to property. In this audio program, John Highman shares some ideas to help you improve your leasing market awareness and negotiation outcomes.

Of course you can work for either landlords and tenants in today’s property market. They can both be valuable clients to work for from different ends of the leasing equation. It doesn’t really matter whether you work for landlords or tenants, but it does matter as to how you optimize the rental position of your client as part of the leasing process.

As you strive to achieve better results in the leasing market today, consider the special factors of lease occupancy where you can add value to your client. Most particularly those factors should include the following:

– level of market rental
– lease duration
– lease documentation
– optimal use of leased space
– sensible balance of occupancy costs to area occupied
– vacancy minimization
– the budgeting of occupancy costs given current market rentals

In this audio program, John Highman shares some specific income growth strategies that you can use in commercial and retail property leasing today.

You can get the audio program below:

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Commercial Property Management Questions to Use in a Handover

City buildings on Sydney Harbour

When you take over a new commercial property as part of a management strategy for a new client, you should ask specific questions relating to the asset, its history, and the tenancy mix.

You can get plenty of commercial property management tips and ideas as part of our regular online coaching right here.

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:

– lease documentation
– tenancy mix
– property maintenance routines
– risk matters
– rentals and rent recoveries
– critical dates
– vacancy factors and pressures

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.

You can get the audio below:

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Boost Rents and Leasing Strategies in Commercial Real Estate

Buildings and boat on Hong Kong harbour

There are many different rent strategies that you can implement in commercial real estate brokerage.  The facts of the rental matter hinges on just how long the property owner wants to own the property. (NB – you can get plenty of commercial property leasing tips in our Snapshot program right here)

You can have rent strategies for the short term or the long term.  You can boost property value in a rental lift.

You can encourage a tenant to lease a property using fair and staged rents, or you can ask for the highest levels of income from the leased space and run the risk of a vacancy occurring.

Don’t forget that you also have net rents, gross rents, and incentives to work with in any lease negotiation.  The income or rent that you start with can be enhanced over time, so look at the bigger picture when negotiating with tenants.

Don’t focus so much on the start rent, but the income over time.  Look at the rent reviews and how they can support stable occupancy for the longer term.

In this audio program, John Highman talks about the rent and leasing strategies that are so important in today’s property market.  You can listen to the audio and download it here: