What does a commercial property manager do? Revealing the secrets

Commercial property managers are professionals responsible for the day-to-day management of income-generating commercial properties such as office buildings, retail centers, and industrial parks. Their multifaceted role includes marketing and leasing available space, collecting rent, fostering tenant relationships, supervising maintenance and repairs, preparing financial budgets and reports, and ensuring compliance with relevant laws and regulations. People often ask “What does a commercial property manager do” Their efforts not only maximize property profitability but also aid tenants in optimizing their leased spaces, potentially leading to extended lease terms and increased rental income for property owners, making them integral to the commercial real estate landscape. Let’s learn more about them.

What does a commercial property manager do?

Financial Management:

• Setting and managing the property’s operational budget in collaboration with the property owner.
• Collecting rent, tracking operating costs, and handling financial reporting, providing regular updates on the property’s financial performance.

Leasing and Tenant Management:

• Handling all leasing activities, including marketing the property, screening potential tenants, negotiating lease agreements, and managing lease renewals and terminations.
• Serving as the main point of contact for tenants, addressing their inquiries, concerns, and maintenance requests.

Vendor and Contractor Management:

• Hiring and supervising vendors, contractors, and service providers for various tasks, such as cleaning, landscaping, and repairs.
• Ensuring that these third-party services are performed efficiently and cost-effectively.

Maintenance and Repairs:

• Overseeing the maintenance and upkeep of the property, ensuring that it meets safety and regulatory standards.
• Coordinating repairs, inspections, and preventive maintenance to keep the property in good condition.

Preserving Property Value:

• The main goal is to preserve or increase the value of the real estate assets they manage.

Market Analysis and Strategic Planning:

• Staying informed about market trends, competition, and regulatory changes that may impact the property’s value.
• Developing strategies to optimize the property’s operations and maximize its potential for growth and profitability.

Risk Management and Insurance:

• Maintaining appropriate insurance coverage for the property and managing any insurance claims that may arise.
• Addressing potential risks and liabilities, such as safety hazards and compliance issues.

Reporting and Communication:

• Providing regular reports to the property owner, including occupancy rates, rent rolls, and financial updates.
• Communicating with stakeholders, such as investors, lenders, and local authorities, as needed.

Most common types of commercial properties managed by property managers

Office Buildings:

• Can range from small, single-tenant buildings to large, multi-tenant complexes.

Retail Spaces:

• Includes shopping centers, malls, and individual storefronts.

Industrial Properties:

• Includes warehouses, distribution centers, and manufacturing facilities.

Storage Facilities:

• Includes self-storage units and other types of storage spaces.

Mixed-Use Properties:

• Properties that combine multiple types of commercial spaces, such as a building with retail on the ground floor and office space above.

Special-Purpose Properties:

• Properties that serve a specific function, such as hotels, healthcare facilities, or educational institutions.

Land:

• Some property managers may also be responsible for managing undeveloped land or land that is being used for specific purposes, such as parking lots or outdoor storage.

How much does a commercial property manager make in 2023?

National Average Salary:

• Approximately $73,350 per year.

Glassdoor Average Salary:

• $76,689 per year based on 887 salaries.

ZipRecruiter Average Salary:

• $82,546 per year or $39.69 per hour.

State Variations:

Average salary ranges for commercial property managers in different states:

• 42,000-$48,999: 2% of jobs
• 49,000-$55,999: 8% of jobs
• 56,000-$62,999: 12% of jobs
• 64,500-$71,499: 15% of jobs
• 71,500-$77,999: 14% of jobs
• 78,000-$84,499: 12% of jobs
• 84,500-$91,499: 9% of jobs
• 91,500-$97,999: 6% of jobs
• 98,000-$104,499: 5% of jobs
• 104,500-$110,999: 4% of jobs
• 111,000-$117,499: 3% of jobs
• 117,500-$123,999: 2% of jobs
• 124,000-$130,499: 2% of jobs
• 130,500-$136,999: 1% of jobs
• 137,000-$143,499: 1% of jobs
• 143,500-$149,999: 1% of jobs
• 150,000-$156,499: 1% of jobs
• 156,500-$162,999: 1% of jobs
• 163,000-$169,499: 1% of jobs
• 169,500-$175,999: 1% of jobs
• 176,000-$182,499: 1% of jobs
• 182,500-$188,999: 1% of jobs
• 189,000-$195,499: 1% of jobs
• 195,500-$201,999: 1% of jobs
• 202,000-$208,499: 1% of jobs
• 208,500-$215,000: 1% of jobs.

These salary figures can vary based on factors such as location, experience, and the size of the property portfolio.

How to become a commercial property manager

Qualifications and steps

Education:

• While not mandatory, having a bachelor’s degree in real estate management, finance, business, or a related field can provide a solid foundation for a career in commercial property management.
• Some universities and colleges offer specific programs in real estate management or property management.

Experience:

• Many employers prefer candidates with a minimum of 5 years of experience in property management or a related field.
• Gaining experience through internships, entry-level positions, or working in residential property management can be a valuable stepping stone towards a career in commercial property management.

Skills:

• Commercial property managers should possess excellent communication and management skills.
• Effective communication with tenants, employees, and property owners is essential.
• Other essential skills include problem-solving, organization, financial management, and knowledge of local, state, and federal regulations.

Licensing:

• Most states require a real estate broker’s license to become a commercial property manager.
• Specific requirements for obtaining a real estate license vary by state, but generally involve completing a certain number of real estate courses, passing an exam, and submitting an application.

Certifications:

• While not mandatory, obtaining certifications can enhance your credibility and marketability as a commercial property manager.
• The two main commercial property management certification courses in the USA are offered by the Institute of Real Estate Management (IREM) and the Building Owners and Managers Association (BOMA).

Networking and Job Search:

• Building a professional network and staying updated on industry trends and opportunities can be beneficial for aspiring commercial property managers.
• Networking events, industry conferences, and online platforms can help you connect with professionals in the field and learn about job openings.
• Additionally, checking online job sites and contacting local property management companies can help you find entry-level positions or internships to start your career.

Top companies which hire commercial property manager

Cushman & Wakefield:

• A leading global real estate services firm with approximately 50,000 employees in 400 offices and 70 countries.

CBRE:

• The world’s largest commercial real estate services and investment company, with over 100,000 employees serving clients in more than 100 countries.

JLL (Jones Lang LaSalle):

• A global real estate services firm with 659 employees, offering property management, leasing, and investment management services.

Greystar:

• One of the largest property management companies, with a focus on multi-family residential properties, managing between 600-800,000 doors.

Liberty Mutual Insurance:

• A leading global insurance company that also offers property management services.

Lincoln Property Company:

• One of the largest diversified real estate firms in the US, with a focus on property development and management.

Colliers International:

• A global real estate services company with 2,060 employees, offering property management, leasing, and investment services.

Newmark Knight Frank:

• A global real estate services company with 753 employees, offering property management, leasing, and investment services.

These companies offer competitive salaries for commercial property managers, with the average salary in the United States ranging from $73,350 to $99,838 per year. Salary variations can be influenced by factors such as location, experience, and the size of the property portfolio.

What is the job outlook for commercial property managers in the next few years?

Projected Growth Rate:

• The job outlook for commercial property managers in the next decade is expected to be positive, with a projected growth rate of 3% from 2021 to 2031.

Comparison to Overall Job Growth:

• The job growth outlook for the real estate management sector is higher than the national average for all occupations, with a 7% projected growth rate, compared to the overall average of 5% for all occupations.

Historical Projection:

• The projected commercial property manager job growth rate from 2018 to 2028 was 3%.

Market Growth:

• The property manager job market is expected to grow by 10.3% between 2016 and 2026.

Career Progression:

• Many individuals start their property management careers as assistant managers, working closely with a property manager, and gradually advance to property manager positions over time.

Positive Outlook:

• Overall, the job outlook for commercial property managers is positive, with opportunities for growth and advancement in the field.

Job requirements for commercial property managers at top companies

Experience:

• 7 to 10 years of progressively responsible Class A commercial office property management experience.
• Minimum of 5 years of experience in commercial property management.

Education:

• Bachelor’s degree in real estate management or a related field is preferred.
• A degree in real estate, property management, business administration, or a related field is preferred.

Skills:

• Familiarity with applicable local, state, and federal laws and regulations.
• High level of organization and attention to detail.
• Competence with office management software.
• Proactive, detail-oriented, property inspection, collaboration, and property management skills are important.

Responsibilities:

• Managing financial matters, coordinating maintenance work, enforcing leases, and preparing performance reports.
• Preparing and managing budgets, negotiating contracts, and overseeing property operations.
• Preparing reports on the financial performance of properties.
• Terminating leases and initiating eviction proceedings.

Licensing:

• Some states may require a real estate license for property managers, depending on the scope of their responsibilities and the type of properties they manage.

What are some of the benefits offered to property managers at top companies?

Maximizing Return on Investment:

• Property managers help set competitive rental rates, manage expenses effectively, and identify opportunities to increase rental income.

Time and Resource Savings:

• Property owners can save time and resources by partnering with a reputable property management company, as the company handles day-to-day tasks such as rent collection, maintenance, and tenant management.
• Reduced vacancy rates: Property managers can help attract and retain tenants, reducing the time that properties remain vacant.

Enhanced Tenant Satisfaction:

• Property managers focus on providing excellent customer service to tenants, addressing their needs and concerns in a timely manner.

Compliance with Regulations:

• Property management companies stay up-to-date on commercial real estate regulations, ensuring that properties are in compliance with relevant laws and ordinances.

Well-Maintained Properties:

• Property managers develop and implement regular maintenance schedules, ensuring that properties are kept in good condition and suggesting upgrades to keep them up-to-date.
• Financial management: Property management companies track income and expenses, providing detailed financial reports to property owners.
• Tenant management: Property managers handle tasks such as tenant screening, lease agreements, and dispute resolution, allowing property owners to focus on other aspects of their business.

Peace of Mind:

• Property owners can have peace of mind knowing that their properties are in good hands and that they are getting the most out of their investment by working with a professional property management company.

How to find the property manager of a commercial building

Identify the Building Owner:

• Determine the owner of the commercial building through public property records, online databases, or by contacting the local tax assessor’s office.

Contact the Building Owner:

• Reach out to the building owner and inquire about the property manager for the building. The owner should provide you with the necessary details or connect you with the property management company.

Search Online Directories:

• Use online directories and search engines to find property management companies in the area where the commercial building is located. Focus on companies that specialize in commercial property management.

Check Local Real Estate Listings:

• Browse local real estate listings, including commercial property listings and business directories, as they often contain information about the property management company responsible for the building.

Ask Local Real Estate Professionals:

• Consult local real estate agents, brokers, or other professionals familiar with the area who may have information about the property manager for the commercial building.

Network with Other Property Owners:

• Attend local real estate networking events or join online forums and groups to connect with other property owners in the area. They may provide recommendations or information about property management companies they’ve worked with.

By following these steps, you can effectively locate the property manager of a commercial building and establish contact for inquiries or concerns.

Conclusion

In conclusion, a commercial property manager plays a multifaceted role in overseeing various aspects of commercial real estate. From financial management and tenant relations to property maintenance and strategic planning, their responsibilities are diverse. They serve as crucial liaisons between property owners and tenants, ensuring the property’s profitability and compliance with regulations. The field offers a positive job outlook, with opportunities for career growth. Top companies value experienced managers who can optimize property performance, offering benefits such as enhanced ROI, reduced vacancies, and peace of mind for property owners. Locating a property manager involves research, networking, and contacting property owners or real estate professionals. Overall, commercial property managers are pivotal in maximizing the value and functionality of commercial properties.