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Case Study – Grant Tucker Properties

Property Name: Grant Tucker Property Portfolio

Case Study: Property Management

Property Locations:

Carlsbad

La Jolla

Rancho Bernardo

Alpine

Property Description: 4 Retail Centers at 82,000 Total Square Feet

 

Client Requirements

Meissner Commercial Real Estate Services manages four neighborhood shopping centers – La Costa Plaza, La Jolla Colony Plaza, Rancho Bernardo Center, and Alpine Village Center – for Grant Tucker Properties, a private investment group. The four retail properties are each anchored by a major grocery store, total 82,000 square feet, and are located in cities throughout San Diego County. The objectives for these accounts vary, based on the age of each asset, but the goals remain the same, responsive tenant service, accurate and complete CAM billings and collections, and excellent property operations.

Process

Upon takeover of management from the first property in 2003 to the fourth in 2008, Meissner enacted its routine commercial property operations, including instituting appropriate vendor contract services, preventative maintenance programs, resolving physical plant issues, responding to tenant needs, and ensuring safety is maintained through compliance with federal, state and local mandates.

By establishing appropriate scopes of work, negotiating, and supervising contracts for typical vendor services, such as day porter, landscaping and trash removal, Meissner is able to obtain professional services at competitive pricing. This, coupled with a well-defined operating budget, allows for the control and reduction of operating costs.

Equally important to the ability to monitor and control operating costs, is tenant retention. Meissner, with the help of ownership, creates a long-term, stable environment where tenant satisfaction is at the forefront. By performing regular property visits, ensuring superior property and tenant services, and promptly responding to tenant requests, Meissner maintains a hands-on management style that enforces tenant retention.

Result

Due to Meissner’s effective commercial property management services, the retail centers experience high occupancy rates – three centers are 100% occupied and one is 90% occupied. Ownership is consistently pleased with Meissner’s results over the past 11 years of management.

Sources:

Meissner Commercial Real Estate Services

Top 7 Tips To Help You This Budget Season!

Next Year’s Budgets: What’s your status?

How are you doing with your property budgets for 2024?  Here at Meissner, budget season is coming into the home stretch!   If you’re feeling challenged to complete your property budgets, here are some insights, contributed by our experienced team of managers and accountants, that may help you gain the momentum you need!

1.  GETTING STARTED: Define the purpose of the budget

It is helpful to start by identifying your goal for both the budget and the subject property or portfolio.  This sounds obvious, but sometimes we launch into a complex project such as creating a budget and dive right into the details and mechanics – with great intentions of powering through it – only to find we get bogged down in numerous decisions soon after we begin.   When creating a property budget, it’s important to start with the end in mind.   What is the purpose of your budget?  Who are the users?  Are there other investors with specific reporting needs related to property performance and reporting metrics?  Or will the budget be mainly used by an internal owner/manager team to guide operational activities and related expenditures?

2. Goals/plans for the property

Once you have identified the purpose for the budget and the needs of its users, define the goal for the property.  Is the objective to maximize the cash flow?   Or is the goal to create value by investing in improvements now to reap a larger gain upon sale?  This will help to prioritize decisions concerning budgeted uses of funds and management resources and will ensure your management of the property supports your objectives and for it.

3. “Piggyback” off of current year actuals with a current year reforecast

Create a reforecast of the current year.   A reforecast would include actual income and expenses recorded to date in the current year.   Use this reforecast as the first budget draft for the same months in the year to be budgeted.   If your property accounting software does not have a function to automate this reforecast, seek a consultant [the word “consultant” could perhaps link to info about MCRES Yardi consulting services] with expertise in your software who can automate this reforecast for you.

4. Start with what is known

There are many items to include in a budget, and looking at an empty software template or Excel workbook can be overwhelming.  Start with what is known or is unlikely to vary greatly from historical norms.  For rental income, start with non-expiring leases and those highly likely to be renewed, and factor in any scheduled rent increases.  For expiring leases, project income through the end of the lease term and consider completing the projection for that space after a separate analysis of new potential lease rates and needed incentives.

Known expenses include utilities, minimum expected repairs and maintenance, property taxes, and insurance premiums — subject to potential rate increases.   For tips on actions you can take to help minimize premium increases, click HERE (https://www.linkedin.com/pulse/navigating-rising-commercial-property-insurance-costs-chris-gore%3FtrackingId=b%252FE53VpYRkuhB5ZmtyPFPg%253D%253D/?trackingId=NnEq3cvzSWOvAOgvokEZGA%3D%3D)

For mortgage payments and the related interest expense, refer to the loan amortization schedule or ask for an updated one from your lender.

Once these knowns are complete, this will not only complete a healthy portion of the work, but it will also inform what resources remain to be budgeted for other, discretionary, expenses.

5. Start with a manageable time frame

Start with a one-year property budget before undertaking longer-term projections.   You will learn much in the process of creating and finalizing the first-year budget, and these insights will inform future years’ projections.   If you tackle future years after completion of the first year, the work required to complete those future years will be less.

6. Document, document, document

Finally, document your assumptions as you go while creating the property budget.   Keep supporting documentation and detailed supporting schedules in the budgeting software, the excel spreadsheet, or a document accessible to all who will work on the budget.   Having clear and complete documentation will eliminate time spent trying to recall or recreate how a calculation or projection was derived when reviewing or explaining later.

Budget narratives are a key component of documentation and one of the most useful parts of a budget report for anyone reading or analyzing the budget.   This can spell out expected fee increases, seasonality, or operational needs that give rise to changes from the prior budget year as well as to monthly changes within the budgeted year.   Lastly, they are helpful in understanding variances between actual and budgeted numbers as you progress through the year and analyze performance.   Having your narratives housed in your budgeting software for easy reference and reporting is optimal.

7. If you get bogged down

One thing that we see sometimes slows managers down in completing a budget is a fear of getting it wrong.   Keep in mind that the purpose of the budget is not to predict the future, but to prepare for it.  The budget provides a benchmark so that, if circumstances change – and they almost certainly will – you have a tool to help make informed decisions about what to adjust.    Make quality projections based on the best information you have, along with your knowledge and experience, and you’ll have a basis for informative reporting and sound decision making.

commercial property management

Main Street Industrial Park

Main Street Industrial Park is a 160,000 square-foot, two-building complex that is rail-served and occupied by national credit tenants.

Meissner Initiatives:

Under our 8-year management of the park, the property has undergone significant upgrades. Projects have included a structural retrofit, new roof and skylights, tenant improvements, and lease renewals. Our attention to detail and responsiveness produced maximum cash yields for the client.

commercial property management, commercial property management companies

San Diego Spectrum Association

San Diego Spectrum Association

San Diego Spectrum Association is a dynamic 181-acre site located in a prime commercial area of San Diego, formerly home to General Dynamics. The association boasts a diverse mix of retail, light industrial, manufacturing, office, and residential properties. Managed by Meissner since its inception in 2000, the site has seen continuous development and growth.

Meissner has played a key role in the ongoing development of the property, ensuring it meets high standards and remains attractive and functional. The company works closely with the board of directors and property owners to maintain clear communication and execute a long-term plan. Their diligence ensures that the property not only looks great but also supports the diverse needs of its occupants.

Meissner initiatives:

Meissner oversaw a major landscape renovation, converting the original plant palette to a drought tolerant palette through out the property. Working closely with the landscape service provider and the San Diego County Water Authority, Meissner was able to secure substantial rebates for this project, offsetting a large portion of the cost.

property management commercial, commercial properties management

Bressi Ranch Commercial Association

Bressi Ranch Commercial Association is located in Carlsbad, CA and is part of a 585 acre Master Association and is one of Carlsbad’s largest developments. Included on Bressi Ranch’s 150 acres are offices, industrial, and retail properties.

Meissner Initiatives:

Include the maintenance of superior curb appeal for common area landscaping, efficiently manage the $400,000 operating budget, establish sign criteria, and transition the Association from vacant lots to stabilized building ownership.

Case Study: Try Our Three-Tiered Approach to Construction Management

Undertaking a space renovation or building improvement requires teamwork and a well-defined approach. Successful projects involve a three-tiered construction management approach that should add value, provide negotiating expertise, and manage details. See why Meissner’s construction management approach makes us one of the top commercial construction management companies.

Property Name:                               Farmers Insurance Building

Property Location:                          5280 Carroll Canyon Road, San Diego, CA 92121

Property Description:                    Office, totaling 32,051 square feet

Meissner  Commercial Real Estate Services was contracted by ownership to provide professional commercial property management services and oversight of construction management to the property located at 5280 Carroll Canyon Road, San Diego, in the highly sought-after submarket of Sorrento Mesa.

Client Requirements

The 32,051 square foot office building is comprised of three floors, two of which were occupied by a single tenant. The third floor was vacant and undergoing extensive renovations, where Meissner provided the construction management oversight. In addition to the space renovation, Meissner also oversaw various building improvements consisting of deferred maintenance items such as, roofing, HVAC, elevator and lobby modernization, paint, signage, and landscaping.

 

Process

Meissner provided construction management value to ownership through their knowledge of building products, building costs and construction techniques, and through their relationships with general contractors and subcontractors to ensure the best contractor candidates compete for the project.

Due to Meissner’s experience with negotiating millions of dollars’ worth of exterior and interior upgrades, including HVAC, chillers, boilers, landscaping renovation, signage, and property improvement contracts throughout Southern California, they understand that close, on-site supervision is required to verify that the products and quality negotiated are, in fact, utilized. Meissner diligently supervised all service providers to ensure that the space renovation and building improvements were completed according to plan and on time. Meissner is considered a major account to vendors and service providers and this purchasing leverage allows for better pricing negotiation and substantial cost savings, resulting in the ability to stay within budget.

Result

In order to achieve ownership’s objectives of obtaining full occupancy, maintaining operational excellence, and maximizing operating income, Meissner focused on completing the space renovation and building improvements on time and within budget by instituting cost effective construction management processes and adhering to the financial goals and parameters of the project to ensure maximum cash flow in both the short and long term.

Sources:

Meissner Commercial Real Estate Services

commercial property management services

Case Study – Pacific Corporate Center

Property Name: Pacific Corporate Center

Case Study: Construction Coordination

Property Locations:10350 Barnes Canyon Drive, San Diego, CA 92121

Property Description: 4 Star Flex Light Manufacturing, 38,018 Total Square Feet

Client Requirements

​USE Credit Union, the owner of Pacific Corporate Center, contracted with Meissner Commercial Real Estate Services in 2011 to provide professional commercial property management and lease renewal services. The Center’s majority tenant underwent a major tenant improvement wherein Meissner worked on behalf of Ownership to provide oversight of the construction coordination.
Process
Meissner worked closely with Ownership, Tenant, and Contractor, Harvey Inc., to ensure that all aspects of the tenant improvement were executed on time and within budget. Included in the tenant improvement’s scope of work were the upgrade of all restrooms to maintain adequate ADA compliance, re-carpeting of the tenant’s entire 25, 018 square foot space, LED lighting upgrade to 60% of the tenant’s space, and remodeling of the kitchen/break room, copy areas, and large conference rooms. In order to afford the tenant quiet enjoyment during construction, Meissner completed the Tenant Improvement construction work in less than 7 weeks, working in phases, and after hours. In addition to providing excellent construction coordination oversight, Meissner simultaneously coordinated a significant building improvement, the replacement of six HVAC units.
Result
Meissner succeeded in upgrading the Tenant’s space to Ownership’s and Tenant’s specifications, and acted as Landlord’s representative in renewing the Tenant’s lease for an additional 6 years. Meissner continues to provide professional commercial real estate services to Ownership, Tenant, and this excellent asset.
Sources: Meissner Commercial Real Estate Services

HEAVY DELAYS IN COMMERCIAL UNLAWFUL DETAINER CASES

According to an update from Kimball, Tirey, & St. John LLP (KTS), unlawful detainer cases are experiencing heavy delays throughout California. In San Diego County, “sheriff lockouts are expected approximately 5 months from the date of submitting a request” for default judgment.

The delays are due to reasons including “a large backlog of cases and understaffing in both the courts and Sheriff’s Departments.”

Please see the link here for the timeline of estimated delays provided by KTS attorneys.

News Flash from the California Business Properties Association

Update from BOMA California quoted below.

“Major Threat to Proposition 13 Passes the Assembly: Urgent Action Needed to Stop ACA 13.

Assembly Constitutional Amendment 13 (Ward; D- San Diego and Rivas; D-Salinas) is a last-minute attack on Proposition 13.

The bill seeks to limit the initiative process by shifting the power to raise the voter threshold for new and higher taxes away from voters and to the Legislature.

Yesterday, ACA 13 passed the Assembly on a vote of 57-19 with only one Democrat voting no. The bill now heads to the Senate.

Your help is needed. Contact your state senator today in order to help stop ACA 13 and protect Prop 13.

Financial support is needed. If your company wants to get directly involved on this critical cause please contact Matthew Hargrove at [email protected].”

More info can be found on CPBA’s website


The California Business Properties Association (CBPA) has presented a call to action to sign this petition to protect Proposition 13 and oppose ACA 13 as directly quoted below:

“Assembly Constitutional Amendment 13 (Ward; D- San Diego and Rivas; D-Salinas), seeks to limit the initiative process by shifting the power to raise the voter threshold for new and higher taxes away from voters and to the Legislature. ACA 13 is a last-minute attack on Proposition 13 sponsored by the same public employee union group that spent almost $100M on Prop. 15 in 2020 – a Split Roll Property tax measure which we helped defeat.

ACA 13 is meant to protect the recent court decisions that have removed the two-thirds tax vote thresholds on your properties. Most recently this loophole was used to pass Measure ULA in the City of Los Angeles, an $800M per year tax on apartments and commercial properties.

ACA 13 is a brazen attempt to change the Constitution to stop the CBPA co-sponsored Taxpayer Protection and Government Accountability Act, which has qualified for the November 2024 ballot and will restore the two-thirds vote requirement on special taxes, fixing the Upland Loophole and protecting against future attempts at creating a Split Roll tax.

We need your help. Please take a moment to sign the petition to let your legislators know you oppose ACA 13.

If you would like to do more to help please reply to this email ([email protected]) for more information on contacting legislators directly and/or how to contribute to help fund the campaign to protect your rights.

Thank you for your support of our ongoing efforts to protect taxpayers from the continued attacks on Proposition 13.”

 

Sign the petition here: https://fightforprop13.org/