Commercial Property Management Tips from Realtors

Commercial property management is not the expertise of commercial real estate agents because it is not their focus, but because of their day-to-day involvement in the marketing and selling of commercial real estate, they have accumulated experiences and insights that are valuable to commercial property managers.

During the downturn that clobbered commercial buildings, commercial realtors also know why these buildings are not getting sold and why the developers are broke.

The following are various tips and observations from experienced and knowledgeable realtors that you as commercial property managers can apply.

During the downturn, when tenants have difficulties in paying their rents, you can explore non-direct monetary solutions so struggling but responsible tenants can stay and reduce the vacancy rate of the property.

You can also explore cost-effective strategies that cut maintenance, operations and energy costs. Work with your tenants so you can develop standard operating procedures that eliminate waste of energy especially in common areas that are not usually monitored.

To project your cash flow easily, use an automated lease flow system. With automation, you can monitor your expenses daily or hourly and you can make the needed response immediately before things get worse. You can also easily see where you are bleeding or earning and can then make the right decision.

During these times when the vacancy rate for commercial properties is high, it is paramount that you provide the level of service that satisfies your tenants so they do not consider leaving and moving to other buildings where the rent is cheaper.

There are special leases that you need to examine thoroughly before accepting them or before bidding to get them. These include leases from government agencies, nonprofits, military personnel and potential tenants that require extensive redesign or security.

Despite the downturn, there are still a lot of tenants that are conscious about being environment-friendly or greening a space even if it involves additional costs. Explore options because there are ways to be green without spending a lot, although there are green strategies that cost a lot at the beginning but will pay off in the long term.

A lot of commercial buildings now are offering lease-purchase options just to get positive cash flow immediately. You need to examine these options carefully because the success of these options depends largely on the quality of lease-option tenants that you get.

Commercial real estate management involves the ability to apply the basics in management while adjusting to current trends and applying appropriate technology.