What Is It That You Need To Know About Commercial Property Management?
Commercial property management is extremely important to the success of business owners. There are some important differences that distinguish the management for residential properties and those necessary for proper handling of commercial properties. Anyone with commercial interests should have a good idea of what it takes to create a positive and successful relationship with a quality commercial property management company.
This partnership will be of tremendous value as you work to establish the viability and popularity of your business. Unlike residential property, the success of how your commercial property is managed can make or break any business venture. This is why everyone should understand what makes a commercial lease different and how the choice of the right commercial property management can positively affect the outcome of any business.
Understand the structure of the lease and of all fees and expenses related to a lease. Commercial real estate leases differ from residential leases in that they govern a much longer period of time than a residential lease term. Property management companies typically expect a tenant to sign a lease for three to ten years, during which time the structure of the deal is specifically related to the original lease document. Make that your lease clearly spells out the price per square foot you are expected to pay monthly, as well as additional fees for taxes, insurance and common area maintenance, or TICAM.
Don't be afraid to enlist the help of a real estate broker. The legal language in leases can be confusing and most always favors the landlord. A broker can help you to better navigate the terms of your lease and lobby for changes that will aid you, the business owner over the course of the term. Also, in local markets, real estate brokers often have long-standing relationships with property management companies, which can make the leasing process smoother.
Understand the principals and working concepts used by your commercial property management company. Before leasing a space for your new business, take time to visit the property on your own. Is the center kept clean? Is the parking field clearly marked and well lit? Do the other tenants run successful businesses? These are questions whose answers are often directly related to the attitudes and policies of the landlord and property management company.
To anchor or not to anchor? A shopping center anchor is the larger business that drives the primary traffic to a center, such a grocer or a "big box" retailer, such as Target or Best Buy. The advantages of being in an anchored center are that you are guaranteed to have a steady stream of potential customers throughout the day. However, you must decide if the location fits the type of business you plan to run and if the shoppers would typically be interested in your type of use.
Above all, know your prospective buyer and research demographics. Many times property management companies are willing to run demographic reports on the trade areas surrounding their centers for you. Knowing your "captive audience" helps you to predict what kind of shoppers you will encounter.
This partnership will be of tremendous value as you work to establish the viability and popularity of your business. Unlike residential property, the success of how your commercial property is managed can make or break any business venture. This is why everyone should understand what makes a commercial lease different and how the choice of the right commercial property management can positively affect the outcome of any business.
Understand the structure of the lease and of all fees and expenses related to a lease. Commercial real estate leases differ from residential leases in that they govern a much longer period of time than a residential lease term. Property management companies typically expect a tenant to sign a lease for three to ten years, during which time the structure of the deal is specifically related to the original lease document. Make that your lease clearly spells out the price per square foot you are expected to pay monthly, as well as additional fees for taxes, insurance and common area maintenance, or TICAM.
Don't be afraid to enlist the help of a real estate broker. The legal language in leases can be confusing and most always favors the landlord. A broker can help you to better navigate the terms of your lease and lobby for changes that will aid you, the business owner over the course of the term. Also, in local markets, real estate brokers often have long-standing relationships with property management companies, which can make the leasing process smoother.
Understand the principals and working concepts used by your commercial property management company. Before leasing a space for your new business, take time to visit the property on your own. Is the center kept clean? Is the parking field clearly marked and well lit? Do the other tenants run successful businesses? These are questions whose answers are often directly related to the attitudes and policies of the landlord and property management company.
To anchor or not to anchor? A shopping center anchor is the larger business that drives the primary traffic to a center, such a grocer or a "big box" retailer, such as Target or Best Buy. The advantages of being in an anchored center are that you are guaranteed to have a steady stream of potential customers throughout the day. However, you must decide if the location fits the type of business you plan to run and if the shoppers would typically be interested in your type of use.
Above all, know your prospective buyer and research demographics. Many times property management companies are willing to run demographic reports on the trade areas surrounding their centers for you. Knowing your "captive audience" helps you to predict what kind of shoppers you will encounter.