The skills required to manage any complex commercial and retail property are many. Far too many agent principals underestimate the quality of person that they should apply to a new property management appointment. Certainly a junior unskilled property manager can learn the skills required, but getting the right quality of person to do the job is very important. If you have not got the right mix of skills in your property manager, things will soon unravel. Here are some ideas from our recent Commercial Real Estate Agent Newsletter.
In this property market, the controls on a commercial or retail property are many. Compliances and property performance come together in a variety of critical strategies. Here are some points of focus that should apply to the role of commercial or retail property manager:
- The person that you select for the role should be an excellent communicator. That will be verbally, intelligently, and in written form. There are so many reports and analysis factors that fall under the control of the property manager today. Top people are required.
- Lease skills will always be important. Understanding how to lease is one thing; negotiating a deal and putting it on paper is another. Good all-round leasing skills are required. That will include the types of rent, lease variations, lease documentation, incentives, market rents, and lease implementation.
- Today we manage all types of properties. When it comes to ‘commercial’ there are many variations of property type. To a degree the manager should be competent in understanding office, industrial, and retail property of most types and sizes. You simply cannot manage something if you do not understand it.
- The factors of income and expenditure in a property are numerous and complex. The larger the property, the more complex the issues. The manager of the property should know about tracking income and how it can be optimised for a property client or landlord. In balance with that, the same can be said about expenditure and how to control it within acceptable industry averages for the property type.
- Reporting in a fashion that is acceptable for the owner of the property will always be important and unique. It should be said that the complexity and reporting requirements of each property should be allowed for in the management fees for each property. Standard fees cannot apply across different property types and landlords; the differences of reporting and property function should adjust the base management fee so you get paid for the work that you do for each landlord.
So are you this person? Do you have these skills? Over time you can learn and improve, it is however important that you understand that you work in a very complex part of the property industry. Recognise the skills required and seek to improve your skills accordingly.
You can get more tips like this in our Newsletter.