Western Real Estate Business

OCT 2017

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

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54 • October 2017 • Western Real Estate Business www.REBusinessOnline.com A proactive commercial property manager will focus on: Maintenance Visit your build- ings often. Simply driving by the build- ing or through the parking lot is not enough. A great deal can be learned by walking around the building and larger property, as well as visiting with ten- ants. Be sure to also visit your building at night to look for malfunctioning exterior parking lot lights and other potentially unsafe conditions. Safety and curb appeal are very important. A property that ap- pears in disrepair can result in the loss of good tenants and ultimately lost revenue. You should also develop a main- tenance plan for each season. A pro- active property manager is thinking about how to prepare for difficult weather during less severe months. Compass learned that lesson last win- ter and used this summer to prepare for the upcoming winter by adding heat tape to gutters on buildings to avoid future damage from ice. Reach out to vendors who manage snow and ice removal or drainage to con- firm buildings will be prepared for inclement weather. Be clear with ven- dors about expectations for the prop- erty. Walk the property with them and troubleshoot for the least possible ef- fect on tenants. Communication The three most important words in real estate are "location, location, lo- cation," but in property management, they should be "communication, com- munication, communication." Effec- tive communication with your land- lords, tenants and vendors is key to success. 1. Landlord Communicating your thoughts about a property to its landlords is im- perative, so don't be afraid to pick up the phone. Tailor your communication style to the client's preference. Some prefer to talk on the phone, while oth- ers prefer email or even texting. 2. Tenants Proactively manage and communi- cate about maintenance that can affect tenants. Give tenants proper notice re- garding all maintenance work, which may include carpet cleaning, an annu- al fire alarm test, parking lot striping, window cleaning, so they can plan their days accordingly. 3. Vendors Effective communication and re- spect for your vendors will let them know they are part of your team and essential components to your success. Proactive property managers usu- ally have a plan for when things go wrong and know how to react to cer- tain situations. They dig into their "tool boxes" to react appropriately, always keeping the client's best in- terests in mind. However, this same property manager will do a lot better for themselves and for their clients if they take initiative to anticipate prob- lems before they occur. Commercial property management is not a static business. Sometimes a plan must be reprioritized as the re- sult of an incident or natural disaster. The strong managers will react with the confidence and calm that comes from being well-prepared to handle any situation knowing they have done everything in their power to be as pro- active as possible. Paul Weaver, Regional Property Manager, Compass Commercial Asset & Property Management in Bend, Ore. MANAGING PROPERTIES THE WEST OVER MANAGEMENT from page 1 Photo credit: Compass Commercial Asset & Property Management Central Oregon Foot & Ankle Group recently leased a 2,117-square-foot office at 400 SW Bluff Drive in Bend where the winter weather requires additional maintenance on top of the standard property management fare. Weaver With average Phoenix office vacancy rates now down in the mid-teens, new construction and renovations on the rise and net absorption reaching historic highs, it is safe to say that competition for Valley office space is at a peak. In an en- vironment like this, smart property management can make the difference between signing and keeping tenants or los- ing them to a more attractive office asset down the block. This also reinforces an inclination that we're seeing repli- cated time after time: that tenants are willing to spend more on operating expenses if that capital is used to improve a building's amenity base. This is particularly true for the many California companies wanting to relocate or expand into Phoenix be- cause of the city's lower cost of doing business while providing a modern, urban and amenitiezed workplace. Property managers are critical in today's office market. They are the ones who can identify just what tenants desire, and make strategic recommenda- tions to the ownership structure, which will allow a building to maintain its competitiveness. To achieve this, a property manager must do more than sit at a desk and prepare reports, waiting for tenants to call saying they're too hot or too cold. Modern property managers must be present, on-site and people-centric, with their fingers on the pulse of their properties. this prepares them to come to the table during budget talks with three to five capital improvement recom- mendations that will improve how a property looks, operates or adds value to the tenant base. This push toward competitiveness led Lincoln Property Company (LPC) to embark on about $6 million in renovations at office assets across the Phoenix valley. These renovations varied with each unique LPC building location and tenant roster, but each followed the philosophy that buildings should be im- proved with the conveniences that keep the asset efficient and current — and its tenants happy. LPC will create a state-of-the-art conference center, upgraded lobbies and common areas, a collaborative outdoor lounge area and an on-site coffee bar at its latest Class A office acquisition, 3131 and 3133 Camelback. These renova- tions all speak to the upscale Camelback Corridor office environment. Camel- back Square in Old Town Scottsdale offers a rent-a-bike program that makes it easy for young, tech-centric employees to lunch at nearby restaurants. LPC has also added a weekly food truck event at some properties, while others have received upgraded common areas with high-tech touchscreens that in- corporate a building directory, traffic map, weather and news alerts. All LPC- managed office buildings have also secured Energy Star Certification by the EPA. This designates that the assets use 35 percent less energy on average and release 35 percent less carbon dioxide than a typical building. Similar efforts are happening across Phoenix, particularly in areas like Downtown. No matter what the market conditions dictate, strategic property management teams are in a prime position to capture opportunities while they're happening. In today's "swipe right" environment, a property with a strong and immediate presence will maintain the interest of tenants and pro- spective tenants, while a property without one will falter. — John Orsak, Director of Real Estate, Lincoln Property Company in Phoenix COMPETITION CREATES BETTER AMENITIES, HIGHER RENTS Orsak Camelback Square in Old Town Scottsdale offers a rent-a-bike program and ample outdoor areas that make it easy for tech-centric employees to enjoy the nearby amenities.

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