Real estate has long been one of the most popular investments in the world. In order to stay on top of multiple properties at once, property owners often employ property managers who are in charge of overseeing day to day operations of the sites. So what are a few things that property managers should know about current market performance?
- Brick And Mortar Stores On On The Decline
- Total Billable Price Per Square Foot Has Fallen
- Building Tenants Expect Greater Transparency
Brick And Mortar Stores On On The Decline
It is no secret that more and more companies are moving their operations exclusively online. Far too many consumers refuse to revert to the old style of traveling to the store to pick up their goods when they can be ordered with the click of a button and arrive just a short time later. Property managers need to be wary of this when selecting new properties to buy and when deciding what existing properties to hang on to or sell. Some products in the retail space may remain immune from the online ordering trend and can remain profitable business ventures while others are quickly on the way out and should be avoided at all costs.
Total Billable Price Per Square Foot Has Fallen
The property management market has gotten more competitive. As more developed space comes into operation, tenants have often pulled away from older spaces with the promise of lower rent elsewhere. This has actually driven the cost of rent per square foot down over the past year. This means property managers need to do more to ensure they are maximizing profits elsewhere such as repairs and minimizing energy costs.
Building Tenants Expect Greater Transparency
Historically, property managers have been in charge of organizing all of the repairs necessary for a property—whether they are commercial or residential. Ultimately, these costs are buried in the rent numbers of the various tenants. If there are too many repairs, the property owner will be forced to raise rent prices. Because of this, tenants of today are requesting more transparency out of their property managers. This ensures that all of their rent monies are going to good use and not being spent frivolously. Property managers should begin to focus on clearly defining how transparent they are willing to be in the contract so that problems don’t arise in the future.