Summary:
- How to impact NOI for commercial real estate owners
- How to maintain tenant retention
- Why is Florida’s commercial real estate market consistently a Top performer nationwide?
Florida’s commercial real estate market is heading into 2018 with positive news for landlords. The metrics at the end of 2017 illustrate the potential and benefits of currently owning property in The Sunshine State (rising price per SF & vacancy rates dropping). While the market data continues to trend positively, it is paramount to effectively manage portfolio properties and try to maximize value.
We did a Q&A with Dimitrios Langas, a Managing Partner of RPM Realty Management, founded in 1980 and based in Tampa, Florida. RPM specializes in commercial real estate management for various property types in the Florida CRE market. They focus on several aspects of real estate management, including: aggressive leasing, effective operating cost controls and above all, tenant retention.
Dimitrios provided his real estate management expertise, focusing on the theme of “How to maximize the value of your commercial real estate properties“.
Steady population growth coupled with a pro business state government will continue to keep Florida as one of the better performing commercial real estate markets nationwide.
– Dimitrios Langas, Managing Partner of RPM Realty Management
1) What are some ways a property management company can impact NOI for a real estate investor/owner?
Management companies can increase NOI by making sure tenants are paying market rent.
Often times, absentee landlords keep rents low so their properties remain occupied. However, by aggressively marketing space and creating the correct tenant mix, a management company can increase NOI by charging the correct market rent.
Another way to quickly impact NOI is to make sure landlords are charging tenants all the expenses they are allowed to per the lease. Often times, thousands of dollars are trapped in certain lease clauses that are not exercised by landlords.
By properly billing the tenants the correct amounts as per these lease clauses you create instant value by increasing NOI.
2) Just how important is maintaining tenant satisfaction and retention in the commercial real estate market?
Tenant satisfaction is by far one of the most important parts of tenant retention.
In today’s rapidly changing retail environment, you have to make sure your tenants are taken care of so you do not lose them to a competing property.
3) What are your top 3 tips to retain your best tenants?
#1 Communication, #2 communication, and #3 communication!
The number one complaint we hear from unsatisfied tenants in new centers we manage is that no one would return their calls in a timely manner.
4) What are some things that building owners can do to ensure a healthy relationship with their tenants?
Tenant’s like to see that landlords take the initiative to ensure they are successful in their properties.
Using social media and having grand-openings with the local Chamber of Commerce is a great way to start a healthy relationship.
5) How are the needs of retail tenants different than other property types?
Unlike office and industrial properties, the wrong tenant mix can really harm the other businesses and destroy a retail shopping center.
6) Why do you believe the Florida commercial real estate market is one of the better performing markets nationwide (consistently Top 5-10)?
Florida is currently the 3rd most populous state in the United States with over 20 million people and the population increases by approximately 1000 new residents every day.
This type of steady population growth coupled with a pro business state government will continue to keep Florida as one of the better performing commercial real estate markets nationwide.
Leave a Reply