One of the keys to success in an industry that’s as fast-paced as commercial property management is staying abreast of the latest trends. Things evolve at a rapid rate, so the ability to shift gears and address the changing demands is essential to remaining competitive. To make things a little easier for you, we’ve done some of the legwork and uncovered four commercial property management trends that we think should be on your radar. Take a look below.
Industrial real estate is booming.
While the rise of ecommerce has changed focus for many retailers, the boom has opened opportunities in other areas – particularly in the way of industrial space. For example, successful ecommerce businesses are seeking out properties for things like warehousing and logistics. Vacancy levels for existing industrial space are at an all-time low, with newer properties being developed in response. This presents a new angle for property managers to pursue.
Online-only expands to brick and mortar.
With many physical retailers shutting their doors, there are a growing number of empty spaces in malls and shopping centers. In recent months, this has caused a shift in which web-based business owners are now taking advantage of these vacancies in an attempt to extend their reach from online-only to brick and mortar. As such, the demand for retail space is finally starting to see an uptick. And with rents at historically low rates, this shift is expected to continue for the foreseeable future.
The adoption of technology continues to accelerate.
Property management businesses are feeling the increasing pressure to essentially “do more with less.” That is, to compete at the highest levels on service and support while also minimizing staffing and other expenses. As a result of these increasing demands, more and more firms are turning to technology to help them do some of the heavy lifting. For instance, property management software can automate almost any task, enabling even the smallest company to compete on any level. If you haven’t already done so, the time to begin integrating tech into your property management company is now.
Maintenance and improvement costs are on the rise.
Thanks to rising tariffs on foreign construction materials and a growing shortage of qualified construction personnel, the costs associated with building maintenance and improvements are expected to increase. As a result, occupancy costs are anticipated to go up as well. Property managers should prepare for this by allocating budgets and staff accordingly and setting client expectations.
As we move closer to another new year, knowing what to anticipate and plan for can help set your property management business up for continued success in 2020 and beyond. For more industry-related tips and guidance, be sure to bookmark our blog and check back often for new content.