We Hold These Truths . . .

By Stephen L. Burger, CPM®, CRX, CSM

Recently we 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 owner.”

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
SteveBurger@ebmc.com
EUGENE BURGER MANAGEMENT CORPORATION

As 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 coverage map.

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