Two of the most important factors required to determine the success of any commercial retail or office space are how attractive they are, as well as the comfort they offer. A tenant that is able to achieve an attractive setting for their customers while providing a comfortable environment that invites people to stay will be the owner of a very successful business. This means that, in one way or another, you are an active participant in how well the business thrives, and this will make you successful too. You have to remember that the tenants of an investment property are the beating heart that fill it with life. If one thing is true, is that a tenant that is happy and establishes a successful business will not move away in a very long time, possibly for generations. The opposite is also true, with an unhappy tenant vacating the property very quickly.
In order for you to achieve the perfect balance between what you require as an investor in real estate and the needs of your tenant, we can work hand in hand with you to reach the following goals:
- Achieving Stability Between Your Expenses And Investment – The most effective administration strategy will always look to achieve stability in your Net Operating Income, which means that you must know where you should spend money and where you shouldn't. Even though one of the most important things is to keep your expenses to a realistic minimum, you must keep in mind that investing money in the property will help you save in the long run by allowing it to operate at a level that is considered optimal. By cutting down on expenses you could start to notice that your property is bringing in less rental income and may be attracting tenants that are not the most desirable. Keep in mind that sometimes improvements don't provide the additional income you might have expected, which is why we suggest having regular meetings with the owners or investors of a commercial property to update our understanding of your objectives, so we may stay on track towards your goals.
- Increasing Your Net Operating Income (NOI) While Decreasing Capitalization Rates – Part of our job is to understand that the value of a commercial property on the market is intrinsically united to the interaction between the NOI and the Capitalization Rate. This means that the large majority of our goals, unless we state something different, will involve the maximization of the NOI, while reducing the Capitalization Rate at the same time. Remember that an increased Net Operating Income results in an increased flow of cash, while a reduced Capitalization Rate means the property is more stable, and that these two are of importance when pushing the value of the property on the market.
- Preparation For Sale – Eventually, you may decide to sell your commercial property. When that time comes we will work together with you to make sure you achieve the highest sale value. Because we understand that the updated property value could be needed on short notice, we keep records that allow us to recalculate it within minutes in order to provide you or our realtors with a real time value. Having this ability, in conjunction with organized records allows us to get the property ready to achieve the best possible price. This also allows a possible buyer to trust our presentation, which will, in turn, increase the salability. Some of the reports we generate on a monthly basis to make sure we are always able to calculate the market value of a property are the following:
- The updated rent roll
- Current copies of leases
- Statements for profits and losses on a YTD and monthly calendar
- Updated property taxes
- Updated insurance
- Utility bills (water, trash pickup, gas, electric, landscaping, exterminator, etc.)
- Any business permits or license receipts
- Ancillary revenue reports (if applicable)
- Any invoices and receipts related to maintenance
- Practicing Repositioning To Add Value To A Property – Our goal is to increase the value of your property by making it more efficient so it can live up to its maximum potential, which will increase its marketability as well as its value. We run the gamut in reference to how poorly or how efficiently a property is run, making the necessary changes to obtain their optimal efficiency in order to reposition it in the market. Through our administration, many of these properties are now generating more generous amounts of revenue than they did prior to being repositioned. Additionally, we offer different plans for repositioning that include various methods of capitalization and cash flow aimed at the success of our plans.
Only a handful of companies can boast of the type of experience we have. We know that no two properties are the same which is why our comprehensive evaluation will end up in a more efficient use of your property, increasing your revenue and making your property's management more efficient and effective.