25 great ways to decrease expenses and increase your bottom line. In commercial real estate leaving a few dollars on the table means loosing hundreds of thousands in the long term.

1. 25
By Bryan Fullen

2. In office and industrial buildings onecan replace the currentlighting
with T-5fluorescent lighting. Thisone trickalone often pays for itself in
a yearor two.
Many cities offer furtherutility discounts on yourbill. Thisway, bulbs
are replaced less frequently.
Lower Utilities
1

3. Installing T-8 lights and electronic ballastin
warehouses that operate continuously can pay for itself
in just a few months.
2

4. Installing SolarTube Skylightsin commonareasCansee areductionin energy costbyup
to 25percent
3

5. Changing out exterior
lights tomotion sensor
lights canlower your energy
consumption
drastically4

6. Optimize the HVAC controls
to match the occupancy times
of your building. Turn the
temperature way down or up
in the vacantspace.
5

7. Start a recycleprogram in your office for
plastic and paperand reduceyour waste
hauling needs. Recycling companies
often givereceptacles to place at
buildings and will pick them up regularly
for free.
6

8. Lower Property Taxes
Challenge yourpropertiestaxevaluation.Therearecompaniesthatdo thisfora
percentageofthesavings. Ifyouareasmall company,go tothe assessor’soffice.
7

9. 8
Findout what CAPrate is
used and challengeif it
doesn’t make sense
Especially in a falling
market
Meet your assessor
and see
howyourbuildings
areclassified

10. If you have un-harvested land,
it might benefit you to plant a
crop on it and get the property
an agricultural assessment.
9

11. Look at your contracts. If you have been using the same
companyfor a while, get several different quotes for new
companies and compare the benefits.
10

12. Renegotiate your agreement with all your existing vendors,
contractors, management andemployees. The current economic
climate gives the edgein these relationships
11

13. Incorporate wording into
janitorial contracts so you
don’t pay for the empty spots
which are not getting cleaned.
There is no need to pay a
janitor for a clean and vacant
unit.
12

14. Make sure you are
too high
the one telling the cleaning company the
square footage
Don’tletthemquoteyoucauseitwilllikelybe
to becleaned
13

15. Reduce costson cleaning supplies by buying largecontainers of WD-40 and other multi
purpose industrial cleaners.
Stop buying expensive single purpose cleaners.
WD-40Alone has over2000+ uses.
14

16. 15
Cutting Insurance

17. Get annual
quotes from a
several different
insurance
companies and
compare
comparable
coverage’s.
Send them your
current policy
and see if they
can beat it point
for point.
16

18. Cost segregation allows you to
accelerate your depreciation
schedule and increase your cash
flow.
Most companies can give you a
possible estimate of savings to see
if it makes sense to pay for this
service
17

19. Cost segregation legislature
has a “look back” provision which
allows you to recalculate
depreciation all the way back to
1987.
18

20. Increasing Revenue
Incorporatebill-back off hours into yourleases. Set standard consumption days, times and
amounts in yourleases with yourtenants. Also establish a bill-back rate theyareresponsible
for if theyhaveoverages.
19

21. Look for additions that
make sense.
One company added a vending machine
with drinks, sandwiches and snacks to their
break room
This increased their revenue by a several
thousand dollars per month. $3,000 a
month over 12 months is $36,000 per year.
On a 10-cap that is an increased
resale value of $360,000.
20

22. Take care of the tenants you
have. Tenant retention is the
most cost effective way to
increase your bottom line.
21

23. Lower your office expenses
Reduceconsumptionof paper
( Go paperless )
22

24. If you market for
tenants think of the
500+ free
online sources to
get your property
filled.
23

25. 24If you need
visual
marketing
get
two or three
large canvas
or
vinyl
banners
that can be
used over
and over
24

26. Elect forVoIP calling manyVoIP systemscannotonly
saveyoumoney
butalsodomuch morelike:
• Call screening
• Auto attendant
• Music on hold
• Voicemail to email transcription
• Find me/follow me call routing
• Door phone entry buzzer
integration
25

27. THANK YOU
Contact me to find out even more ways
to increase your properties profit call
or email me today.
206 321 3039
Bryanfullen@kw.com
Each office independently owned and operated