CPN - December 2008 - (Page 24)

INDUSTRY PULSE PROPERTY MANAGEMENT Savings Plans Property Managers Shift to Lower-Cost Strategies By Eugene Gilligan C olliers Turley Martin Tucker washes its windows three times a year. To help its landlord-clients save money, however, it is considering skipping its spring—or maybe summer or fall—cleaning. As vacancies rise—and as some owners are also forced to hold on to buildings longer than intended— assisting clients’ bottom lines has risen to the top of property managers’ job descriptions. Thus, such firms have set out on the hunt for savings and revenue. Colliers Turley Martin Tucker, for example, has offered landlords the option of cutting back to two window washings a year.The firm’s property managers also consult with clients about large maintenance projects that could be deferred.“Perhaps, instead of replacing the roof, we can fix the problems,” said Dean Mueller, executive vice president of investor services. He also referenced HVAC systems.“We can repair rather than replace.” With Band-Aid fixes also comes a heightened awareness of the value of preventive maintenance,of detecting problems before they require huge expenditures. Adler Realty Services executive vice president Dan Heisler, for example, inspects the roofs of warehouses in The Adler Group Inc.’s portfolio of Florida properties twice a year. “If you perform preventive maintenance, you can extend the life of the roof and not replace the roof,” he said. On the consumer side of this drab economy, large-format discount retailers like Wal-Mart have proved relatively stable. Likewise, Flagler Development Group has found savings in a bulk buying strategy that is enabled by its 6 million-square-foot portfolio and the 11 million square feet it manages as a third party. The consolidation of service providers has also instituted uniformity across the portfolio and given Flagler greater clout when negotiating with vendors, said vice president of operations Mike Vullis.“We can ask (that) a security provider that guards at our properties have a certain qualification level—for example, that This leads underwriters to assess less risk and assign lower-than-market-rate premiums on building owners’property and casualty insurance policies, said Western National president Thomas Shelton. MAKING MONEY Beyond decreasing a property’s operating costs, property managers are also empowered to increase revenue.Adler Realty, for example, leases rooftop space to host cell towers.A deal on one of its office prop- Have you or your company recently received coverage in Commercial Property News? David Partners involves individual property managers in its vendor decisions to best serve each property it manages, such as the 226,636-square-foot Spectrum Business Park in Irvine, Calif. www.cpnonline.com Borrower’s Motto: Be Creative __page 18 Net Lease Players Pair Off page 20 U.S. Investors Dream of Dubai __page 25 The Commercial Real Estate Authority September 2008 What’s Your Next Move? Can Previous Cycles Still Provide Insight to Succeed in Tough Times? page 16 Place your press directly inin the hands of Place your press directly the hands of those who matter most—your customers those who matter most—your customers and prospects with custom reprints from prospects with custom reprints from Commercial Property News. CommercialProperty News. The YGS Group is the authorized provider of custom he YGS Group is the authorized provider of custom reprint products from Commercial Property News. reprint products from Commercial Property News. 800.290.5460 I cpn@theYGSgroup.com they all be former police officers.” David Rowley, senior director of portfolio operations for Davis Partners L.L.C., noted that his company consolidates vendors when possible. But the owner and manager of Southern California industrial and office properties and multi-tenant business parks also includes the managers of individual properties in the decisionmaking process,as those managers are primarily responsible for the client’s satisfaction.“We provide the tools to the managers, and they decide,” Rowley said. Western National Property Management, which manages 20,000 residential units, has saved significantly by bringing functions like landscaping in house.The firm also requires prospective tenants to provide proof of renter’s insurance. erties in Coral Gables, Fla., garners $10,000 to $15,000 a month. Portfolio Property Management Global L.L.C. CEO John Bridges said his firm boosts its revenue by selling advertising space on the walls of its parking garages and charging fees for services like concierge offerings at office properties. Still,the best way to keep a property’s revenue flowing is simply to retain tenants. “You can increase revenue by selling space for cell phone or satellite antennas by 1 or 2 percent,” Rowley stated. “The focus has to be on tenant renewal.” Heisler pointed to low-cost ways to make properties appeal to tenants,citing eye-pleasing landscaping as an example. As proof, Burke Real Estate Group refurbished a two-story 24 COMMERCIAL PROPERTY NEWS • December 2008 • www.cpnonline.com http://www.cpnonline.com http://www.cpnonline.com

Table of Contents Feed for the Digital Edition of CPN - December 2008

CPN - December 2008 Contents Starting Line Retail Data/Analysis Conferences Boston Market Profile Finance International Property Management

CPN - December 2008

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