WHAT DO PROPERTY MANAGERS, OR REAL ESTATE MANAGERS, DO?

What is commercial property management?

A commercial property manager handles non-residential properties like offices, retail spaces, storage facilities, shopping centers and industrial buildings. Like residential property management, commercial management encompasses the tasks and responsibilities of operating an income-producing property.

Commercial property management involves being able to prioritize and execute a wide array of tasks. For example, advertising, marketing, and leasing processes are all part of the commercial manager"s job; because commercial leases are generally longer than other properties, with built-in renewals (ie. a five year lease with options to renew) and rent escalations1, both the marketing and lease negotiation processes are longer and more involved than in other types of property management. However, commercial property managers have less hands-on tasks once the space is leased than other managers, as many commercial tenants of spaces -- like offices, retail units and industrial suites-- often take care of their own general maintenance, and in some cases, design and customize the interior of the space to suit their businesses.2

Property managers of commercial spaces keep meticulous administrative and financial records, and keep all applicable maintenance, taxes, mortgages and insurance updated. They ensure rent is collected, and respond to tenant needs and issues. Managers also provide regular reports (ie. occupancy, rent roll, and budget) to the property owner, providing regular updates on how the investment is faring.

A commercial property manager is an asset to any property owner who has not the time or experience to market or manage their commercial real estate property themselves. Professional property managers are becoming more common for investors who are either too busy or simply not interested in the challenges of managing a property; indeed, according to the Bureau of Labor Statistics, the profession is expected to see ?faster than average? growth between 2006 and 20163.

1RealData website. Accessed June 10, 2009.:
http://www.realdata.com/ls/residential-versus-commercial.shtml
2RealData website. Accessed June 10, 2009.:
http://www.realdata.com/ls/residential-versus-commercial.shtml
3Bureau of Labor Statistics website. Accessed June 16th, 2009.:
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