Archive for the ‘Featured’ Category

4 Reasons to Choose Commercial Property Management

 

While you may think you’re qualified to be a property manager for your own commercial real estate property, a lot more goes into it than you may think. A good commercial property management company can help you retain the clients you need to keep your property fresh and up to date.

Property Managers are fully certified.

While it’s not required to be certified as a property manager, certification is a good idea. Using a certified property management company means that they are up to date on federal regulations.

There are two types of certifications for property management. One is more general: the certified property manager. The second one is specific to commercial property management: accredited commercial manager. When searching for a commercial property management company, choose an accredited commercial manager, not a commercial property manager.

When trying to manage your own commercial property, you could run into issues with violating federal regulations. These violations could put your financial well-being at risk with a hefty fine, or even threaten your property. A commercial property manager will be able to guide you around the bureaucratic minefield of federal regulations.

Commercial Property Management can lessen your maintenance headaches.

Cleaning the gutters on your single-family home may not seem like a huge chore. As a matter of fact, you can probably get it done in one afternoon by yourself. When it comes to commercial real estate, however, maintenance is not that easy.

Commercial real estate properties can range from a sprawling office park to a 20-story high skyscraper. “Cleaning the gutters” on properties like these will definitely take more than an afternoon.

Besides the sheer scale of maintenance for commercial properties, there’s also the maintenance needs of your tenants. When you rent out your old beach house, you only have one tenant to worry about. When you rent out your commercial real estate, you need to multiply the likely number of maintenance requests by the number of tenants.

Using commercial property management can actually save you money when it comes to maintenance. You can get in over your head quite quickly when it comes to maintenance and have to pay emergency fees for a repair team to come to your location quickly. With commercial property management, you have a dedicated maintenance team for your property. If there’s a plumbing issue with an upstairs toilet, they’ll be there to fix it pronto.

Commercial Property Managers have years of experience.

Commercial real estate is a broad term that encompasses a wide range of industries. Managing an office park is different than managing a retail store, which is also different than managing an industrial center.

With commercial property management, you’ll have a property management team specific to your industry. This means they can encourage portfolio growth while holding onto any major anchor tenants.

Your commercial property manager should create a tenant retention plan for your property. This will help them optimize who stays in your building. By holding onto high-profile tenants through lease negotiation, you’ll be able to receive more return on your investment while also boosting the prestige of your business.

Commercial Property Management can keep your commercial real estate investment fresh.

As time goes on, trends change, and the needs of your tenants do as well. A large part of holding onto tenants and attracting new prospective tenants is done by keeping your commercial real estate on trend. A property manager who knows your industry will know what tenants are looking for and how you can use that to your advantage.

A great way to keep your property fresh is through a redevelopment plan for your building. A commercial property manager will design this plan to keep your building a step ahead of your competitors. This may mean a new security system, IT network, or more cosmetic upgrades like painting, flooring, and upholstery.

A commercial property manager will also be able to tailor your renovation plan to suit the tenants you’re trying to attract.

 

Blackwolf Commercial specializes in Commercial Property Management

Overall, commercial property management is a great way to boost the return on your investment. They’ll help you avoid hefty fines and stay on top of federal regulations, while also attracting tenants and shielding you from aggravating maintenance woes. Don’t underestimate the years of experience commercial property management companies can use to your advantage.

Here at Blackwolf Commercial, we pride ourselves on putting our team’s years of experience to work for our clients. We use a strategic approach to maximize risk-adjusted returns by employing a fundamental value approach to investing. Our team’s extensive experience in commercial real estate has allowed us to build broad-based, substantive industry relationships with advisors, agents, operating partners, investors, lenders, and corporate/institutional owners of real estate.

If you’re looking for a great commercial property management company, we’re here for you. We can offer asset management, investment opportunities, and a fundamental value approach.

Contact us today to get to know our team and see if we’re the right property management company for you.

 

How Well Do You Know the Market?

“Knowledge itself is power.” – Francis Bacon

There’s no denying that better knowledge leads to better decisions. That’s as true for commercial real estate decisions as it is for decisions in any other walk of life.

Unlike common decisions, though (like what you’ll have for dinner tonight), in commercial real estate, the problem most people face is that they simply don’t have the knowledge needed to make the well-informed choice.

Even if they’ve been through a commercial real estate decision before, the Frederick market changes throughout each year. Few building owners sell multiple properties a year. Few buyers make multiple purchases a year. Few lessees sign multiple leases a year. And because of that, when the time comes to make a decision on commercial real estate, most people don’t have an accurate understanding of the current market simply because they are not actively participating in it.

They’re either working on outdated data, limited data, or no data. And that makes it hard to work toward the best market value.

Because, put simply: they don’t know the market.

At Blackwolf Commercial, we do.
We’re immersed in market knowledge; Frederick commercial real estate is what we do day-in and day-out. We’re engaged in multiple decisions around multiple properties on a daily basis. And with that knowledge, we can help you find the best market value.

Here’s how.

1. Set Realistic Expectations

If you enter a decision-making situation with unrealistic expectations, you’ll always be disappointed – and you may have a hard time even taking action at all.

It happens all the time. We’ve seen would-be buyers greatly overestimate the properties available within their budgets. We’ve seen potential sellers overprice commercial properties based on personal attachment and nostalgic ties. Even after the sale, expectations may be unrealistic. For instance, a building owner may expect to profit from a building if it’s fully leased, but in reality, the demand for fully leased office buildings may drive the price so high that the investor’s desired returns are much lower than they would have liked.

Setting accurate expectations is important. A realistic understanding of the market can help to ease potential disappointment and free decision makers to act in accordance with their best interests.

2. Avoid Bad Deals

Bad deals are almost always based on bad information.

Take the famous deal between 20th Century Fox and George Lucas in 1977. That year, Fox’s senior executives sold the rights to the Star Wars franchise to Lucas for, essentially, $20,000. In their estimation, that’s what the franchise was worth.

Obviously, that was bad information. They didn’t know, for example, that merchandising would open up huge revenue streams. They didn’t know that the movies would have lasting cultural impact. They definitely didn’t know that Rey action figures would be selling for $25 forty-one years later.

Based on a lack of knowledge, they grossly underestimated the market value, as time has proven; in 2012, Lucas sold the franchise to Disney for $4 billion.

Good information is the key to making good decisions. And, thankfully, most commercial real estate decisions are less speculative than the Star Wars deal, since they’re based on current data – so good information is accessible if you’re working with the right partner.

At Blackwolf Commercial, we’re experts in the Frederick commercial real estate market. From a combination of deep experience and access to specialized data, we have the information to accurately evaluate properties and potential transactional terms so that you won’t fall unknowingly into a bad deal.

3. Navigate Frederick’s Commercial Real Estate Supply and Demand

Finally, knowledge of the Frederick commercial real estate market allows decision makers to navigate the town’s landscape of supply and demand.

Again, if you aren’t immersed in the industry, it’s unlikely that you have an accurate understanding of building supply. Are there many similar properties listed on the market? Or only a few? And how can a prospective tenant begin to tell if there are many tenants looking at a property – or only one?

A flood of properties is a buyer’s or tenant’s market. A flood of tenants is a landlord’s market. All markets offer opportunities. And those opportunities vary based on a host of factors – such as:

Property Type – Office buildings, for example, may be in short supply, while retail spaces flood the market.

Location –  Spaces in one part of town may be suitable for certain tenants, while unappealing for others.

Opportunities abound. But without knowledge, they can be difficult to find.

Be Confident You Know the Market

Better knowledge leads to better decisions. So, when you make commercial real estate decisions, be sure you know the market.

Still feeling unsure? We’re here to help.

When it comes to commercial real estate in Frederick, you can count on Blackwolf Commercial for all of your needs. We live and breathe Frederick commercial real estate, and we’ve helped hundreds of people like you to utilize Frederick market knowledge to get the best value.

If you’re looking to buy, sell, or lease, get in touch with us, and put our deep knowledge of Frederick to use for you.