• 10 mins read

Commercial property management plays a fundamental role in bridging the interests of property owners and tenants and involves overseeing and efficiently managing commercial properties that generate income. These properties can include industrial and logistics hubs, childcare facilities, office space, retail space, and storage facilities.  

Following are several key aspects of commercial property management. 

Operational Care  

  • Maintenance: A commercial property manager ensures that the building is well-maintained. This includes regular climate control inspections, attending to electricity and plumbing services, and overseeing landscaping upkeep. 
  • Tenant Services: Commercial property managers ensure the services that tenants require are in good working order and are regularly serviced. They also coordinate all required maintenance to minimise inconvenience.

Leasing

  • Marketing Services for Leasing the Building: When a commercial building or space becomes available, the property manager will put together a relevant and professional listing to highlight the advantages of the property, including professional photos and a description of the location advantages. 
  • Lease Negotiation: The commercial property manager discusses terms, rent, and any tenant improvement allowances. 
  • Tenant Screening: Before signing a lease, the commercial property manager verifies the tenant’s financial stability, business track record, and references. 

Financial Management

  • Rent Collection: The property manager ensures timely rent payments. If a tenant falls behind, they follow established procedures for reminders and, if necessary, further action or eviction. 
  • Budgeting: Commercial property managers create annual budgets, allocating funds for maintenance, repairs, and improvements. They then track expenses and adjust budgets as required. 
  • Financial Reporting: Owners receive regular reports detailing income and expenses, which helps with reviewing financial performance of the asset.  

Tenant Relations: 

  • Conflict Resolution: Commercial property managers mediate any potential disputes between office tenants over the use of shared areas and finds ways to resolve the situation. 
  • Lease Enforcement: If a tenant violates lease terms, such as failing to pay rent, the commercial property manager takes appropriate action to find a solution. 
  • Tenant Retention: Commercial property managers address tenant concerns promptly to foster positive relationships. This ensures satisfied tenants who are more likely to renew their leases.  

Risk Management: 

  • Regulatory Compliance: Managers ensure the property adheres to local regulations, such as Health & Safety mandates and accessibility requirements. 
  • Insurance Coverage: They assess risks and recommend suitable insurance coverage. For example, a shopping centre manager may advise on liability insurance for common areas. 
  • Emergency Preparedness: Commercial property managers create emergency plans, conduct fire drills, and maintain emergency contact lists. 

Environmental, Social, and Governance (ESG) Goals

  • Building Energy Efficiency: Managers can identify energy saving initiatives for the building which can significantly increase rental return for building owners as well as benefit tenants by contributing to their NABERS rating goals. LED lighting and smart heating, ventilation, and air conditioning (HVAC) systems help reduce energy consumption, lower utility costs, and contribute to a greener environment. Plus, property managers who implement energy-efficient upgrades and repair options bring benefits to both landlords and tenants. 
  • Solar Energy: Property managers can implement solutions to lower electricity bills, reduce carbon emissions, and enhance sustainability credentials. For example, rooftop panels generate clean energy and reduce reliance on traditional power sources.  
  • Waste Reduction and Recycling Programs: Property managers can collaborate with waste management providers to implement cost effective and sustainable solutions for the building’s tenants.    

If you would like to find out more about commercial property management and how it can benefit your commercial property, contact the experienced team at TPA today.