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— Property Management Quarterly — January 2016
P
roperty management is not
the most glamorous side of
the commercial real estate
industry. We are the boots on
the ground, dealing with an
infinite variety of issues that some-
times makes you laugh. If I had to
relate property management in mili-
tary terms, we are the infantry – the
brave souls storming the battlefield
with nothing but determination and
adrenaline. I am sure most would
rather be in a tank or a plane, but
the war cannot be won without
boots on the ground. That is similar
to the commercial real estate indus-
try. The greatest business plans and
ideas will not be successful without
having the proper property manage-
ment team in place.
There are many factors that will
assist in our ability to drive value
and maximize the role we play in
the commercial real estate industry.
These factors fall into three cat-
egories: understanding the asset,
creating the proper platform to drive
success, and leveraging the platform
to creatively solve the roadblocks in
the investment strategy.
A shortsighted property manager
might think that understanding the
asset is making sure it has what
it needs to operate. The floors are
dirty, let’s get them cleaned. The
heating, ventilating and air con-
ditioning unit is broken, let’s get
it fixed. I’m not saying those are
not important, but we have to take
understanding an asset to the next
level.
This process starts by working
with your asset manager to have
a detailed review of the goals and
constraints of the
asset. It is impos-
sible to effectively
operate an asset
if we don’t have a
clear building strat-
egy and defined
goals. Are we
focused on driving
rates, driving occu-
pancy or reposi-
tioning the quality
of the asset? Are
there constraints
on the access
to capital? How
long is the hold period? All of these
questions affect how we should
be approaching our operating and
capital plans. Once we have worked
through these issues, we can prop-
erly create a long-term plan that
gives a clear road map to success.
So now we have a plan, but we
must identify who will be complet-
ing the work to accomplish the plan.
This is where creating a custom
platform for each asset is so impor-
tant. Not all buildings and business
plans are the same, so we cannot
approach them in a uniform man-
ner. We need to be flexible and cus-
tomize the platform to ensure we
have the right tools.
For example, if a building is being
completely overhauled, it would
require a larger staff than a build-
ing that is stable. Think about the
requirements of the plan and hire
around those requirements. Some
assets need a high level of tenant
interactions, while others may be
financially complex.
Each member of the property team
should be selected for the specific
role he can play on implementing
the business plan. Also, this is true
about which vendors make the cor-
rect partners. While you may have
a trusted landscape company for
your Class A office building, it may
not fit in the business plan for your
industrial properties. Each decision
should be made with the business
plan in mind; that way you ensure
you have the right tools in your
toolbox as you work through the
processes.
Finally we know what we are
doing and who is doing the work,
but a major question still remains:
How? Harking back on the fact that
no two buildings are the same, our
processes have to adapt.
Creative problem solving is key to
a property manager taking an asset
from good to great. Let’s say that
the business plan calls for Class A
tenant relations; do you think the
standard ice-cream social is going
to work? Think outside of the box
on what will make the asset unique
and memorable. By getting to know
your tenant base, you will learn
what they enjoy. Once you have that
information, you can create a cus-
tomized tenant relations program
that wows. This also is true when it
comes to all aspects of operations.
A very normal question is, “What
projects have the best bang for
the buck with the existing capital
constraints?” However, once those
projects are selected, there are many
Perspective
Hunter Marr
General manager
of Unico Properties’
Denver portfolio,
Denver
A clear strategy and defined goals are crucial to successfully operate a building.
Rendering of the Denver Club, a Unico managed building.
