Industry Trends in Commercial Property Management

Commercial property management today is a high value service to be offered to landlords and property investors. Specialised agents have the expertise and the market intelligence to strengthen property performance through commercial property management.The major trends in commercial asset performance today include the following:
Minimisation of vacancy factors within the property (this assumes that the property is not required for refurbishment or redevelopment)
The optimisation and stabilising of net income cash flow from the property and the tenancy mix
The management of the tenancy mix to ensure occupancy stability and compatibility between tenants in close proximity
Sensible controls on the expenditure activity for the property in keeping with industry benchmarks and standards
The management of leases within the property using standards that match the landlords investment plans and property holding intentions
The minimisation of risk in the operation of the property and the activities of the tenancy mix
The compliance of the property to rules and regulations surrounding essential services, occupancy terms and conditions, and local property regulations
All of these factors are quite specialised and require an agent that is very familiar with local commercial property trends and benchmarks. It is interesting to note that many a landlord will seek out an agent charging the lowest fees for the services required. This can be counterproductive and usually is. Cheaper agents do not normally have the best people and cannot provide the best services.Quality property management services require significant knowledge and skills and disciplines. That can only be obtained through experienced people supported by professional systems. Short cuts achieve poor results. Good managers usually rise through the ranks and gain experience on different property types on the way through.In some respects they will specialise on certain property types such as retail, industrial, or office property. Retail managers are perhaps the most experienced in the industry, therefore attracting a premium when seeking employment.It is worth remembering that a professional management service so requires specialized lease procedures are supported on dedicated software programs. Capturing the activities of tenants within numerous properties can be a demanding task. This is where specialised software programs will assist the property manager to achieve control and change within the tenancy mix.Gone are the days of trying to manage numerous tenants on spreadsheets. Many a property manager has tried the process only to find that the required upkeep is too difficult. Purchasing the right software to support your property managers is well advised.Professional management is not an experiment, but a specialised business process that can add many thousands of dollars to the property income each year and tens of thousands of dollars to the property value over time.

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