L. Burger, CPM®, CRX, CSM
ran a story about the four basic
truths of commercial real estate. The story was
based on a recent blog that appeared on the website of the Institute of Real
Estate Management, and it underscores some key points that frankly I believe
are very easy to forget.Prime among
these is that property managers don’t manage properties.They manage businesses.
As the blog pointed out,
“Each property is the owner’s business. When managing a mega mixed-use
development or a successful super regional mall, the real estate manager is
essentially managing a business worth in excess of one billion dollars. When a
real estate manager is managing a small 10,000-square-foot office building, he
or she is managing a small business for its owner. The small office building is
just as important to its owner as the mega mixed-use development is to its
Our fiscal responsibility
to our ownership/investment clientele is to exceed expectations of financial
performance. It is that simple. It is too easy in fact, to diminish the work of
property management to a series of daily tasks--in fact, it is very easy for
property managers themselves to lose site of the big financial picture.
But we must commit on a
daily basis to remembering the purpose of all we do. The customer service, the
tenant retention, the diligence of upkeep--it all points to the owner/investor
and their focus on the bottom line and their ROI.
Increasingly there is a
link between the property manager and the long-range strategic goals of
ownership as we provide more of the data required for strategic asset
management. As a result, the property manager is one in a trio of prime players
focused on strategy, along with the asset manager and ownership themselves.
This linkage elevates the
visibility of the property management function as a strategic function itself,
and must be a critical part of the investor’s acquisition approach. It is the
property manager that elevates the function of building performance to the
strategic level and in so doing cements that three-way bond for the good of
tenants and ownership alike.
Steve Burger, President
EUGENE BURGER MANAGEMENT CORPORATION
president and COO of Eugene Burger Management Co., Steve Burger is directly responsible for the overall quality, depth
and consistency of management services provided in all 15 regions in the EBMC