Look for a commercial management firm that provides the type of management services you need.
Washington D.C. (PRWEB) March 31, 2012
Choosing among the thousands of commercial property management firms can be a daunting task. Trained, experienced and creative real estate managers will improve cash flow, retain the right tenants, move out the wrong tenants, and minimize expenses.
Robert Tack, CEO of Capital Retail Group says, "It's all about matchmaking. For the perfect match, a management company’s expertise should be in alignment with the owner’s goals."
Is the asset a mixed use building, shopping center, or a multifamily housing complex? Does the building have a vacancy, maintenance, or a leasing problem?
Find out the type of owners with whom the commercial property management firm usually handles. Does it manage for individual owners or does it specialize in working with institutional investors? The reporting requirements of each ownership type are most often very different.
Property management firms can provide a broad array or a limited number of services, depending upon a client’s needs. Commercial property management firms typically offer management planning, budgeting, maintenance programs, rent collection, lease negotiations, and tenant relations
A complete written management agreement should outline services the firm will provide, explaining to the owner exactly what to expect from the property management firm and detailing the costs for services that fall outside of the management fee.
Property management fees are in proportion to the quality and quantity of services provided. Management fees are usually based upon a percentage of revenues collected. There can also be an administrative fee applied only to triple nets, in addition to a basic percentage of net or gross income. Management companies that perform the leasing will also charge a leasing commission that can be a percentage of the entire lease value or a set amount relating to annual minimum fixed rent.
As in other areas of real estate, a property management firm that is accredited or has key members of management holding professional certifications is set apart from other firms as having met higher standards. Look for specialized designations such as Certified Shopping Center Manager (CSM) or Certified Property Manager (CPM). The Institute of Real Estate Management (IREM) awards the Accredited Management Organization (AMO) designation to firms meeting such criteria. Firms whose employees hold other, related designations of expertise are usually have a deeper understanding of the many nuances of managing commercial real estate.
Look for a commercial management firm that provides the type of management services you need. Not all management firms manage all types of properties. The right property management firm for your commercial building will provide the management experience, creativity, professional expertise, and integrity required to maximize the value of your property.
About Capital Retail Group
Capital Retail Group provides a full range of brokerage, property management,and strategic advisory services to the commercial retail sector serving Washington DC, Maryland, and Virginia. Follow us on Twitter, Facebook, and our Blog.