According to a recent report by the National Association of Realtors, sales volume for commercial property management topped out at $51.6 billion with sales prices increasing by 5.1% year-over-year. If you’re not yet tapping into this lucrative market, you’re most certainly missing out on additional profits. That being said, there are marked differences between commercial and other types of property management. To be successful, you must account for these differences and in some cases, adjust your approach accordingly.
Let’s take a look at some expert pointers to help you compete and do well in this sector.
Deliver Exceptional Maintenance
Taking care of the properties you manage is a given, but when it comes to commercial property management, appearance and upkeep are absolutely critical. The key is taking a proactive approach by conducting regular inspections. This will help you stay a step ahead of any issues and keep your tenants happy in the process.
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Slapping on a fresh coat of paint and having the carpets professionally cleaned may be adequate in between residential tenants, but if you want to remain competitive in the commercial realm, you’re going to have to invest in more than that. Businesses want the spaces they rent or lease to reflect the professionalism they offer their clients, so make sure you’re offering your tenants the latest and greatest in amenities.
Invest in Technology
Relying on spreadsheets and antiquated techniques may be enough if you manage smaller portfolios, but commercial property management requires a much greater degree of detail and complexity. Investing in the latest technology, including everything from equipment and internet access to systems and software is essential to remaining competitive and offering clients the greatest level of service available.
Make Communication a Priority
The secret behind almost every business success is strong communication, and commercial property management is no exception. To remain profitable, you have to be on top of your game and available to your tenants as needed. You also need to incorporate good communication and collaboration internally with your employees. This will help your business run more smoothly and ensure that everyone – on both sides of the fence – stays satisfied.
Stay Abreast of Trends
In order to attract and retain high-paying tenants, your commercial properties should meet the changing demands of the market. Staying on top of the latest trends in what renters want and need can help you do just that. For instance, one of the biggest initiatives in commercial property lately is going green by offering environmentally friendly options, such as energy efficient offices. Understanding the pain points and desires of your target audience will keep you ahead of the game.
When it comes to opportunity in the property management field, more and more professionals are expanding their portfolios to incorporate the commercial sector. By following the above tips, you’ll experience less friction entering the market and better position your firm to realize sustainable success over time.
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