The average Washington office building is worth almost $135 per square foot.
However, not all commercial buildings are made equal, and maximizing the property value of your own investment will depend on several factors.
Read on to learn:
- The basics of commercial property asset management
- Strategies for investment property management
- How property managers can help
What Is Commercial Property Asset Management?
Asset management means tracking and monitoring your property's value. You look at its costs and revenue over time and determine how much it's currently worth. This lets you maximize your return in the long run through:
- Buying assets
- Selling assets
- Holding assets
To manage these assets appropriately, you'll need to go beyond looking at trends. You'll also need to:
- Identify potential risks
- Mitigate the likelihood of risks becoming problems
- Make decisions about buying/selling/holding/refinancing property
- Advise investors on the legal and tax implications of owning the property
- Market the investment to potential renters and buyers
- Keep the property value high with maintenance and cleaning
- Implement top-notch security measures for safety and added investment value
Commercial property asset management means using these strategies on a commercial building. These investments may include:
- Office buildings
- Retail storefronts
- Warehouse spaces
- Restaurants and cafes
- Hotels
Luckily, the strategies you and property managers use to determine asset value are similar across all building types.
Asset Management Strategies: What to Consider
Managing commercial assets is primarily important because you can get the best possible return. To access these funds, though, you'll need to follow current commercial real estate tips and best practices.
Keeping your building in top shape helps you attract good tenants and keep them there. This is especially important because commercial leases can be five or more years long. It's not like renting out a residential apartment with a shorter annual lease.
You should:
- Inspect the property regularly
- Perform preventative maintenance between tenants and leasing periods
- Understand Washington compliance regulations for commercial buildings
- Ensure that you adhere to up-to-date policies
- Get appropriate property insurance
Having great tenants is also critical for asset management. If your tenants destroy your property or behave badly, you won't just run into legal issues. The value of your property will likely decrease due to vandalism and complaints from neighboring offices or shops.
Have property managers:
- Screen tenants with professional tools
- Develop and draft comprehensive leases
- Negotiate leases with new and returning tenants
- Collect rent on time through an integrated portal
How Can Property Managers Help?
A Lynnwood property management company can help you with these tasks and more!
Experts can perform a market analysis and understand commercial real estate trends in the area. They can suggest renovations based on these trends that will raise the property value.
Beyond that, property managers:
- Forecast the market
- Make predictions about future trends
- Set budgets that make sense
- Offer financial reporting services
You'll also always have someone available to answer your questions as an investor!
Enlist Property Management in Lynnwood
Now that you know all about commercial property asset management in Lynnwood, Washington, it's time to start maximizing your property value. PMI Brewder Realty is committed to helping investors realize their commercial building's full potential.
We're excited to appraise your property and give you tips for increasing passive income. Schedule a free rental analysis to learn the potential worth of your commercial investments today!
