VWB Blog Real estate has always been a promising hot ticket if you’re interested in investing. Many people think about things like house flipping and renting out properties. However, commercial real estate is a massive piece of the pie that you need to consider.
Commercial real estate accounts for a more than $20 trillion market today. Working with property managers will help you get the most from your commercial real estate. But, what role do these professionals play?
This advice will teach you what you need to know about commercial property management.
The Types of Commercial Property Management
If you’re interested in investing or becoming a property manager, you need to understand what kind of work these pros do. This begins with understanding the various types of property management that pros can specialize in.
Here are a few of the main types of commercial property management that you should consider:
Office Space Commercial Real Estate
When you’re interested in commercial real estate, office space is typically the first type that people mention. These are the places we work and where business is done.
Office space is often the first thing that business owners look into once they are ready to get their company off the ground. Companies actively seek to either rent or purchase commercial real estate.
It’s a valuable form of real estate that many investors have been able to capitalize on.
Hospitality and Entertainment Real Estate
Even when economies take a nosedive, people want to take their trips and entertain themselves. This is when hotels, resorts, movie theaters, restaurants, and other forms of related real estate come into play.
These are businesses that must be well-staffed and run like an oiled machine. Property managers are of the utmost importance with these properties in order to extract the most value from the real estate.
Retail Real Estate
Retail also makes up a significant part of commercial real estate. This is one of the largest sectors of business, and has been a huge contributor to the economy for the past several decades.
These forms of commercial real estate rely heavily on location and bring in a certain amount of revenue to turn a profit and offset the overhead costs.
Mixed-Use Real Estate
Many investors are starting to use mixed-use properties to their advantage due to the viability and instant diversification. This is a form of property that includes commercial real estate and other types. For instance, many cities are turning around developments that include retail, apartments or condos, office space, and property management all within the same property tract.
Investors appreciate the diversification that these properties bring and the fact that they’re not relying solely on one particular area of business.
Commercial Property Management Roles
Now that you understand more about commercial property management, you can begin exploring the role that professionals play. Many professionals go to school to get their certificates in commercial property management to be better equipped to do their jobs.
Here are a few of the roles they play:
The Face of the Property
Perhaps the most import aspect of commercial property management is for the professional to serve as the face of the property. This is the person that greets tenants, owners, customers, and anyone else involved with the property.
They are available to answer questions and steer people in the right direction.
Managing the Value of the Property
Looking after the upkeep of the property is another way that commercial property managers come into play. These pros will assist you in making repairs and upgrades that maintain and add equity.
They’ll also help you with things like plumbing, electricity, and Heating Ventilation and Air Conditioning (HVAC) services. Property managers also can connect you with a commercial roofing contractor that can keep up with this aspect of your property.
Addressing Paperwork and Logistics
These professionals are also responsible for a lot of the logistical matters that come into play with managing a property. As you might expect, this involves a great deal of paperwork.
This is why commercial property managers must be as organized and detail-oriented as possible. They’ll make sure that your schedules are kept, permits and filings are kept on track, and you’ll also get assistance with court filings and hearings.
Keeping Track of Payments and Books
Finally, these professionals also help to maintain the balance by collecting payments and keeping or monitoring the books. Some of these professionals have accounting certifications, while others just generate reports based on the financial records.
They often keep records of tenants accounts to know how much they have paid, how much they owe, and what sort of paperwork they have on their file. Managing the course of your commercial property finances will dictate the health and direction of the property moving forward.
Your Guide to Commercial Property Management
These points explain the ins and outs of commercial property management in a way that’ll serve you. All in all, property managers provide a variety of different services that investors and property owners can take advantage of. By working with a quality commercial property management professional, you’ll be in the best position to get the results that you’re looking for.
These details are important no matter which angle you’re trying to approach commercial property. You’ll be in the best position to capitalize on your property investment and get a strong return on investment (ROI).
Start with these tips and browse our other articles to learn more about business, finance, and investing.