Well-honed procedures determine the difference between mediocre commercial property management and great commercial property management. And the natural outcome of excellent commercial real estate management is a successfully performing asset with solid returns. The right processes can help mitigate unexpected maintenance or budget cuts.
Well-crafted operations go beyond just following a series of steps – they create consistency and a go-to guide in cases of emergencies. While inferior processes make for extra work hours, additional expense and confusion.
The fundamental responsibilities of a commercial property management firm are to establish innovative, practical, and cost-effective solutions to property issues. The goal is to increase ownership’s return on investment, which can only be achieved with the best possible results in accordance with an owner’s business plan and goals. Relevant solutions call for proven procedures.
Tim Meissner, a Principal at Meissner Jacquét Commercial Real Estate Services, a San Diego-based commercial property management company, says that “effective management is a by-product of effective processes. We have instituted detailed procedures to ensure complete oversight – our management and accounting teams have checks and balances to achieve superior results.”
Commercial property managers have the considerable responsibility of providing, maintaining and developing a wide spectrum of services. These services range from enacting ownership’s business plan and investment objectives, site management and preventative maintenance, client relations, tenant retention and satisfaction, accounting and reporting, and vendor management.
Comprehensive, successful commercial property management processes should aspire to outperform the client’s expectations.
Unquestionably, effectively combining processes with the appropriate resources is vital to the success of any business’s health. Effects can be felt at the executive level by achieving strategic and operational objectives. On a mid-management level, proven systems can create a safe and effective working environment – a must have for the well-being and performance of any business, no matter what the size or function.
Resource management is key to running the operations of any commercial property. An effective property management team not only identifies what needs to be done to maintain a property at optimal level, but it also performs extensive due diligence to ensure appropriate resources are in place so that the property operates at peak performance.
Designing and implementing a commercial real estate management process that is unique to the property requires a structured framework that will allow the management of the process to become second nature to those responsible for carrying it out. Vendors including security, HVAC, janitorial, and landscaping, all require a detailed maintenance schedule to ensure that services are performed consistently and correctly.
Professional commercial property management firms institute proven processes, techniques and practices, including the methods, systems and resources to manage:
- Construction projects
- Property operations
- Vendor management
- Maintenance & technology systems
A crucial component of a successful commercial property manager’s process is to keep the owner informed at every level, including:
- Conducting regular site inspections
- Providing detailed property reports
- Supplying accurate and timely financial accounting & reporting
- Delivering maintenance recommendations
- Providing communication regarding tenant retention and satisfaction
Realization of long-term goals are achieved by staying current in industry best practices and trends, maintaining the proper credentials, attending leading industry conferences, and staying abreast of:
- Regulatory issues
- Current technology & equipment
- Energy management & sustainability issues
The sum and substance of the processes a commercial property management team enacts separates performing properties from non-performers, and can have a direct impact on a property’s bottom line. By adhering to proven procedures, instilling firm checks and balances, and constantly testing and measuring, you can set up your commercial property for success.
National Property Management Association
Meissner Jacquét Commercial Real Estate Services