Ask the Expert 3Q13: Three Ways Property Management Adds Value to Owners


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ASK THE EXPERT is a Q&A with TRANSWESTERN experts and leaders. In this edition, Rob Bagguley, Transwestern’s chief innovation officer, visits with Vicki Hollon, senior vice president in the firm’s Innovation & Quality Assurance group. Hollon explains how high-quality property management adds value to owners of commercial real estate.

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Ask the Expert 3Q13: Three Ways Property Management Adds Value to Owners

  1. 1. Ask the Expert3rd Quarter 2013 Three Ways Property Management Adds Value to Owners
  2. 2. In this edition: ROBERT BAGGULEY Robert is currently Transwestern's chief innovation officer. In this role, he brings a strategic approach that utilizes both technology and a company-wide collaborative forum to develop internal and innovative client business solutions. 312.881.7001 VICKI HOLLON As part of the Innovation and Quality Assurance Group, Vicki is focused on ensuring that Transwestern professionals are equipped to deliver consistent, market-leading performance for our clients’ assets across the country. 713.272.1283
  3. 3. Property management is a key function in the success or failure of a commercial facility. How do you see property management adding value to owners in terms of tenant retention? Bagguley:
  4. 4. Hollon: ƒƒ The property management team’s goal should be to exceed tenant expectations while meeting all their needs. ƒƒ When tenants’ needs are being met in a way that makes them and their employees comfortable, they want to remain in the building. ƒƒ The goal is to create an environment that encourages long-term relationships with each tenant. ƒƒ High tenant retention establishes steady income for owners, directly affecting the bottom line. How does property management affect tenant retention?
  5. 5. Hollon, cont.: ƒƒ Transwestern has developed, owned, managed and sold its own properties, providing team members with an institutional knowledge of property stewardship and an ownership mentality. ƒƒ Owners benefits from nationwide property management firms that have a variety of product types and specialty spaces in their portfolios. How does property management affect tenant retention?
  6. 6. A property management team’s strategies and skills can have a significant impact on reducing a building’s operating expenses. How is value added to owners through operating a building more efficiently? Bagguley:
  7. 7. Hollon: ƒƒ It is not simply the job of a property management team to operate a building; they must operate it well. ƒƒ A property manager must continuously explore low- and no-cost improvements that will reduce the cost of operating the building. ƒƒ The goal for a property management team is to operate the building in such a way that makes the tenants’ comfort and safety a priority while simultaneously keeping costs down. ƒƒ Well-trained managers and engineers can reduce energy and utility costs through proper equipment maintenance and diligent monitoring. How do owners benefit from efficient operations?
  8. 8. Hollon, cont.: ƒƒ Transwestern’s national relationships with service providers enable us to take advantage of price breaks and volume discounts, further reducing costs for the property. ƒƒ Transwestern’s ownership mentality equips team members to make operational decisions with long-term results in mind. ƒƒ A quick fix is not a solution.We incorporate long-term solutions, when possible. How do owners benefit from efficient operations?
  9. 9. Some property management teams emphasize sustainability in office buildings more than others. How do owners benefit from sustainable features at their buildings? Bagguley:
  10. 10. Hollon: ƒƒ Statistics affirm that investments in sustainable improvements reap financial benefits for owners. ƒƒ For example, ownership at 330 North Brand in Glendale, Calif. invested $767,000 in energy efficient improvements and realized $205,000 in annual savings, a payback of 3.5 years. ƒƒ After window film was installed on the south side of the building, calls from uncomfortable tenants dropped approximately 83 percent, freeing up more of the management team’s time. ƒƒ This example and two others are explored in Transwestern’s Building Efficiencies, which you can view here. How do owners benefit from sustainable features?
  11. 11. Hollon, cont.: ƒƒ Building owners make the final decision on large sustainable improvements, but it’s the job of the property management team to lead energy efficiency efforts. ƒƒ First order of business is to identify low- and no-cost improvements that can be immediately implemented. ƒƒ Transwestern has a customized rating system that measures property management, engineering and sustainability. ƒƒ The Good, Better...Best Sustainability Standard Practices rating system measures both participation and improvement at Transwestern-managed properties. How do owners benefit from sustainable features?
  12. 12. Hollon, cont.: ƒƒ Sustainability has a positive impact on the triple bottom line – people, profit and the plant. ƒƒ Benchmarking properties in the Environmental Protection Agency’s (EPA) ENERGY STAR® program allows owners to see how their building compares to others. ƒƒ Transwestern’s dedicated sustainability team continuously educates our property management teams so that they in turn can add value to owners’ assets. ƒƒ The adoption of sustainable improvements is a forward-thinking position that over the years has proven successful for owners. How do owners benefit from sustainable features?
  13. 13. Ask the Expert3rd Quarter 2013 To view this article in its entirety, click here. Take a look at our tenant edition of Ask the Expert here.