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Commercial property management skills are not the same as those needed for residential property management. When considering a career as a commercial property manager, be prepared for some new knowledge and fresh skills.
The skills you will need in this new role should include:
- Understanding of lease documentation: This should be relevant to your area and the property type. There are a variety of leases around, some of which would be prepared by solicitors. Knowing how to read and interpret a lease is fundamental and essential to managing a commercial property. Expect that all leases are different and reflect unique terms and conditions; then look for the matters that impact the tenant and the landlord and how they must respond during the occupancy. When something goes wrong with a tenant or landlord relationship it is the lease that you must review first to see how you respond.
- Retail property is quite different: Retail property leasing in many locations can be supported by special laws and regulations. These rules and compliances have to be exercised correctly in any new leasing situation before a lease can be implemented. When in doubt see a local solicitor to understand what has to occur locally when new retail tenants want to take up vacant premises.
- Awareness of rental types and market rental trends: Rent in commercial leasing can be established in a variety of ways and amounts. Net and gross rents are some basic terminologies that apply and will have relation to the tenant payment of outgoings under the lease. Other terminology used will be face and effective rent, and they apply when incentives may be given to the tenant in the new lease. Importantly you will find standards here that are used locally for industrial, office, and retail premises. To lease a commercial property, these standards should be benchmarks to work within.
- Contractor placement, costs, and maintenance negotiation: A commercial property is a complex investment involving many maintenance services and amenities to support the tenant in occupation. Maintenance contracts and specifications have to be put in place to service the complex plant and machinery contained on the property. Tendering of these requirements can be a regular occurrence.
- Finding business tenants and knowing how to serve their needs of occupancy: Business tenants have one main goal, and that is to occupy the premises to produce income for themselves. The property should therefore provide something called “quiet enjoyment”, so the tenant can get on with their activities. When a landlord or property manager fails to perform building maintenance, then occupancy is impacted. It is not a matter of just putting a tenant in a property; keeping in contact and helping them continue to function from the premises will be part of the process.
- Supporting Landlord Plans: Not all landlords are the same when it comes to holding the property, and unique requirements of cash flow and property lifecycle will be evident. The property manager should take the time to see what plans the landlord has and how long they want to hold the property. This will dictate key decisions on property performance, expenditure, and income.
- Legislation and Laws: Property function, investment, and development should be contained within all local laws and legislation. As a local property manager, take time to understand these rules that impact commercial property.
The main list can go into many other subsets of awareness such as environmental risk, energy, planning and development, and marketing. Importantly the steps you take in your career towards being a commercial property manager should be taken with further personal growth and knowledge.
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