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Choosing The Right Asset Managers: 5 Must-Know Considerations

The Right Asset Managers

Listen, I get it – overseeing and optimizing a portfolio of commercial real estate assets is no easy feat, especially as you scale up. Eventually, every investor reaches a point where they need some extra horsepower to keep those properties performing at peak efficiency.

That’s where the right commercial property asset management crew can be an absolute game-changer. I’m talking dedicated professionals solely focused on ensuring your properties achieve maximum ROI and value growth potential. You better hire the right comprehensive commercial property asset management services.

But heads up – not all asset management services are created equal. In fact, a subpar team can arguably do more harm than good. You need seasoned experts who truly understand asset optimization from a comprehensive perspective.

So if you’re scoping out asset managers to bring into the fold, here are 5 crucial considerations to scrutinize:

Breadth of Service Offerings

First thing’s first – make sure the asset management firm you’re vetting has the full breadth of service offerings you need to holistically tackle your assets’ performance. Don’t just hire some narrow “property manager” and expect comprehensive oversight.

A legitimate commercial asset manager worth their salt should cover all the bases, including areas like:

  • Strategic portfolio planning & analysis
  • Investor reporting & capital management
  • Risk evaluation & mitigation strategies
  • Revenue optimization through leasing & marketing
  • Capital expenditure planning for renovations & upgrades
  • Regulatory compliance guidance

You want that full-scope expertise and suite of services under one roof. Any gaps and you risk disjointed, siloed management of your assets, which can seriously hinder performance.

Market Specialization & Experience

Here’s the thing – commercial real estate is an absurdly multifaceted, specialized world. You’ve got wildly different operational needs when comparing assets like:

  • Office buildings
  • Industrial/logistics properties
  • Retail spaces & shopping centers
  • Multifamily residential buildings

So you’ll want to prioritize asset managers with substantial, direct experience in the specific sectors and property types that make up your portfolio. Their insights and strategies need to be tailored to the nuances of YOUR assets, not some generic catch-all approach.

Maybe you need specialists who have spent decades optimizing Class A office leasing deals in major metro areas. Or a team with a proven track record maximizing occupancy and yields for retail power centers. Whatever your focus areas, make sure their experiential expertise aligns with your portfolio.

Cutting-Edge Tech & Reporting

In today’s world, you simply can’t have a fractured, analog approach to commercial asset management and still expect to stay hyper-competitive. The game has become far too data- and tech-driven to play things manually.

When vetting potential asset managers, take a hard look under the hood at their technical capabilities:

  • How robust are their property management software and data platforms?
  • Do they offer AI-powered analytics and forecasting models?
  • Can they deliver real-time portfolio insights and reporting dashboards?
  • Are they leveraging smart building/IoT systems and automation?

You need a partner who has invested heavily in proptech and cutting-edge digital workflows. That’s the only way to gain a true informational edge and illuminated opportunities across your portfolio that might otherwise go unseen.

Alignment of Interest & Incentives

Okay, this one is absolutely critical – take a close look at how the commercial asset management firm you’re evaluating gets compensated and structured from a business perspective.

Ideally, you want they’re interests laser-aligned with maximizing the performance of YOUR assets through smart, proactive management strategies. If their payouts are primarily tied to flat-fee structures or raw top-line revenue, that’s a yellow flag. Those incentives aren’t exactly motivation to optimize costs and boost NOI.

Much better is a compensation model that ties their fees directly to your assets’ bottom-line cash flows, returns, or appreciation in value. Maybe it’s a percentage of NOI or a smaller cut of the investment upside. However they structure it, you need that alignment ensuring your asset manager is diligently focused on driving your profits higher.

Cultural Rapport & Compatibility

Last but not least, never overlook the abstract “culture fit” factor when weighing your options for commercial asset management partners. At the end of the day, you need to work hand-in-glove with this team to collaboratively map out the future for your portfolio.

Do they bring a professional yet personable demeanor that vibes with your own working style and mindsets? Are they naturally proactive communicators who will keep you apprised of developments without you chasing them down? Do they seem genuinely invested in your asset’s long-term growth trajectories?

These “softer side” relationship elements can low-key make or break the long game even if they seem trivial now. You want cultural compatibility to cultivate that productive, transparent, smoothly-running partnership for years to come.

There you have it – the 5 crucial considerations for finding and hiring the right comprehensive commercial property asset managers. Lock down a team that checks all those boxes and you can rest easy knowing your portfolio is being meticulously groomed for maximum performance and growth. It’s the ultimate asset optimization arsenal!

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