Why investors need specialists managing their commercial assets

In the dynamic and ever-evolving world of real estate investment, one key decision can make all the difference in the success of an investor’s portfolio: the choice of their management team. As a business development executive with extensive experience in commercial, retail, and industrial property management, I’ve witnessed first-hand the profound impact of specialised expertise.

Investors often like to appoint agencies to manage their assets on their behalf usually due to a relationship they have, and sometimes the skills and knowledge of that agency is overlooked. Anyone who manages commercial assets, will understand the complexities of managing them. Therefore if investors aren’t engaging specialists in that field to manage their assets, it may actually be very detrimental.

There are an array of reasons why investors of commercial, retail or industrial assets should be engaging specialists in their field, and I have highlighted four important ones.

Understanding a lease and legislation

A commercial or retail lease is incredibly complex in comparison to a residential lease, and if you don’t have a property manager who understands how to not only read a commercial or retail lease, but to actually interpret it and then manage that lease, then critical dates and clauses can often be overlooked. The recovery of outgoings is another important element in commercial, retail and industrial property management, and if not managed and recovered correctly, the investor may be out of pocket or even in breach of their lease obligations.

Compliance

Compliance of commercial, retail and industrial properties is critical due to Work Health and Safety laws and regulations, however, if the property manager is not aware of this legislation and manages it accordingly, it leaves the door open for disaster. Is your property manager aware of fire regulations? Asbestos regulations? If not, as an investor you are possibly putting yourself at risk.

Software

If investors have residential specialists looking after their commercial, retail and industrial assets, chances are they are using software specific for residential assets. This often means that they are not aware of GST requirements which is another vital aspect that is often overlooked. Residential based platforms also don’t allow for the setting and tracking of budgets which is a crucial part of managing assets on behalf of investors. They may also overlook critical dates like rent reviews and option periods, which in return decreases the value of the asset

In-depth industry knowledge

Specialists in commercial, retail, and industrial property management possess a deep understanding of the unique dynamics, challenges, and opportunities within these asset classes. Their extensive industry knowledge allows them to foresee trends, navigate regulatory changes, and stay ahead of market developments. This expertise is invaluable when it comes to making informed decisions that can maximise returns and protect the asset over the long term.

The choice to engage a specialist in commercial, retail, or industrial asset management should not be taken lightly. The right specialist can make a substantial impact on the performance and longevity of your real estate investments. Their in-depth knowledge, tailored strategies, extensive networks, software and risk mitigation capabilities set them apart from generalists, providing a level of service that can lead to enhanced returns and asset protection.