When you manage commercial real estate, you really do need to know what’s going on in the property every day of the week. As the property gets larger, many things can happen and challenge your personal organization and business skills. The diversity of the tenancy mix can also create extra demands on your time in negotiating leases and managing occupancy issues.
The categories of activity than need to be monitored from a management perspective include the following:
- The marketing and leasing of vacant space to the local business community and potential tenancies
- The optimisation of rental as it applies to the existing leases and the tenancy mix
- Maintaining good relationships with the tenants and the landlord to ensure that the property performance remains on target in keeping with the interests of the stakeholders
- Budgeting the activities of income and expenditure as it relates to the property each financial year and then tracking that activity to the actual cash flow.
- Ensuring that the maintenance of the property complies with laws and regulations associated with the building codes and the occupancy approvals.
- In the case of retail property, the function of the property needs to be maintained to match the needs of the customers and the tenants. This is more critical than office or industrial property.
- In the case of retail shopping centers, the marketing of the property to the local community will encourage extra trade for the tenants. This underpins the rental for the property and its overall success for the landlord. Everything is linked.
So these things are separately administered and managed on a daily basis. It is the job of the property manager to oversee and action any events within these categories. A complex property will have further issues to consider, and in the case of very large properties, you will find that further specialised assistance will come from maintenance managers, lease managers, and administrative assistants.
It is interesting to note that the greater experience knowledge and expertise required of a professional property manager will put them in high demand when it comes to complex and modern properties today.
In many cases commercial and retail property managers have far more experience in the industry than sales and leasing people. Property managers understand how to optimise the performance of existing property and then direct it into a new level of activity and success for the landlord.