The challenges of commercial property investment
For those who manage or own a commercial property, there are many challenges to commercial property investment. People who think property management is an easy thing, in general, are sorely mistaken. Having a great office space in Manhattan means nothing if you cannot rent it to reliable people who are willing to stay long-term. But don’t worry; with the right advice, even commercial property management doesn’t have to be a hassle. That’s why we’re here to offer some useful advice.
Retaining and Attracting Commercial Tenants
If you were to ask property managers what the challenges of commercial property investment are, there’s one thing you’d hear from everyone; finding long-term tenants and keeping them. Even when corporations relocate to new offices, they tend to change in size and scope pretty quickly; needing new commercial offices yet again. And on the other hand, commercial vacancies are notoriously difficult to fill. Depending on where your property is located, a lost tenant can mean a period of up to two years without a new one! So, what can you do about this? The best option is to find professional commercial property managers or learn how to do it by yourself. Good luck with any of the two!
On the other hand, if you ask tenants about their challenges, one of them would probably be finding the property that entirely suits their needs. Once they find the one, they can move hassle-free by contacting usantini.com and arranging everything. That proves that they need a good property manager to help them find the space.
Obviously, if a company moves out of your commercial space due to a change in scope, there’s nothing you can really do. But there are other reasons a corporation can grow dissatisfied with their current offices; these are reasons you can influence, and reduce. At the end of the day, it all comes down to a lack of good communication between the landlord and the tenant. So, as a commercial property manager, you want to have good relations with your tenant company. Make sure that everyone realizes the term of their lease fully, and keep to your promises and schedules. There’s nothing that commercial tenants appreciate more than a professional approach, coupled with a well-maintained building.
As we go through the challenges of commercial property management, we’d be remiss not mentioning the process of lowering operational costs. Basically, this is a usual item on the agenda of every commercial property manager. And luckily, there are many ways to lower these expenses. For instance, you can lower your utility bills and save tons of money – all it takes is a systematic approach. For example: many property managers make the mistake of hiring various landscaping companies for different services; while in actuality, hiring the same company for both snow removal and lawn maintenance would probably result in a discount.
Plus, property managers and owners who can boast a large portfolio have much more leverage in negotiations; obviously, they can handle bulk agreements for maintenance services, for multiple properties. This would bring a profit to the maintenance company, and a tidy cutting of costs to the commercial property manager. Also, energy efficiency is majorly important. Green roofs and solar panels are innovations which are gathering steam – and are well worth considering.