Why It Is Important to Hire a Commercial Property Manager for Your Building

Posted by on Feb 12, 2016 in Blog - Commercial Investment Properties | 0 comments

Why It Is Important to Hire a Commercial Property Manager for Your Building

One thing that should be of huge importance for any investor is knowing that if you purchase a commercial space, it’s crucial to hire a management company who specializes in the commercial sector. While some of the  maintenance and upkeep of residential and commercial property types are similar, the differences lie in the laws, attracting and marketing for tenants and just how that maintenance is handled.

Office Building Property ManagementResidential property managers have experience in recruiting tenants by placing ads but also doing grassroots marketing via alliances with local gyms, coffee shops, etc offering discounts in return for referrals. These ways of attracting renters don’t really translate between residential and commercial spaces. Many times a commercial recruiter will do a worldwide search for the perfect lessee instead of a localized ‘hanging of fliers’.

Commercial property rental also operates on a set of laws outside of much of what is required under residential arena.  Commercial buildings need to follow specific ordinances as well in regards to restrooms, fire walls, capacity, etc. It’s simply not feasible to expect the building owner, or a residential property manager for that fact, to be aware and familiar of what it takes to fill a commercial building.  Parking, zoning, ingress and egress, insurance, tenant selection are all very different areas in which commercial property owners and managers need to be versed.

The maintenance tasks are much different between residential and commercial properties, also. Most of the tasks that a residential maintenance crew perform on their property (cleaning, taking out trash, exterior upkeep) are handled by an employee of the lessee in a commercial building. Commercial building managers aren’t needed on the actual grounds as much but will need to be prompt if an issue arises so that the business can keep it’s doors open.

The slippery slope that commercial property managers walk is making sure they are an employee of the building owner and not the building renter. Companies that specialize in commercial dealings are more adept at this than residential management whose main job is to appease the tenants.

Finally, those dedicated to commercial real estate engage with others in the commercial real estate market.  Retail property managers invest their networking hours with retail groups, such as the International Council of Shopping Centers ICSC), where retailers meet to swap ideas and potential sites.  Office property managers do the same with groups like the Building Owners and Managers Association (BOMA).  It is not practical for agents and property managers to effectively network and seek tenants in both the residential and commercial arenas.  There is only so much time in the day and trying to be effective at both really hinders the ability to be a master of either.

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