It has been said that the days of the traditional property manager are over.
Investors today are demanding broader, deeper and more value-enhancing services to maximize the investment performance of their assets. Leasing, rent collection and day-to-day maintenance are handled well by many firms, however maintaining the asset is only the beginning - and only a fraction of the demands of today's real estate investors.
With cap rates low and prices at an all-time high, today's commercial real estate buyers are demanding all possible skills and services to achieve their investment objectives. Today's property manager is expected to enhance value, introduce innovative marketing programs, understand valuation principles, anticipate market fluctuations, consider exit strategies and be adept in a number of fields. All management tasks require this value orientation, and a deep understanding of how those actions play into the investor's objectives to create value.
CB Richard Ellis has been one of the largest commercial property management companies in San Diego for over 10 years in a row. The company manages over 8 million square feet of office, industrial and retail space with 14 managers and a total of 30 employees devoted locally to asset management.
This success can be attributed to the "power of the platform," which encompasses fully-integrated lines of service, as well as unmatched professional training, resources and technology. Management professionals are attracted to CBRE for enhanced career development, as well as the opportunity to serve the best clients with the best tools and resources.
New investors choose CBRE, and existing clients expand their business with CBRE, to profit from the broad array of skills and services the firm provides, which enables them to achieve their investment objectives. By aligning managers' objectives, compensation and goals with those of their clients, everyone works in concert for optimum performance.
CB Richard Ellis' clients range from individual private investors to institutional owners with diverse portfolios. As the largest real estate services firm both in the country and in the world, the value of integrated services cannot be overstated. The company utilizes the best available technology to develop standardized methods with which to maximize the performance of their properties in local markets.
Furthermore, it is typical for many service lines to be delivered in an integrated fashion. The company can assist a buyer in securing raw land as well as in financing, and then help with construction, appraisal, subsequent marketing and leasing, ongoing management and ultimate disposition of the asset.
The CBRE lines of service complement each other, but sometimes play an invisible role as well. Exchanging information internally with brokerage, valuation, marketing, mapping and research departments is invaluable. The ability to seamlessly deliver a full spectrum of services helps clients achieve their investment objectives, not simply satisfy their traditional property management needs.
Today, the issues of safety and security are no longer taken for granted. In addition to increasing safety and security in their buildings, CB Richard Ellis has developed a comprehensive crisis management program with extensive emergency procedures. Recent tragedies in the states on the Gulf Coast have prompted the company to incorporate additional safety measures for all of its properties nationwide. Not only does CBRE train their managers and staff, but also their tenants, typically in conjunction with the local fire department.
CB Richard Ellis emphasizes face-to-face customer service and a hospitality-level standard of satisfaction, and many of their services are also offered on-line, including interactive property websites and various forms of tenant and owner communication. New property acquisitions are handled smoothly with professional transition teams and new tenant move-ins are always personalized.
CB Richard Ellis operates virtually every specialized real estate accounting program, which enables the company to process transactions efficiently while providing customized reporting formats to clients. Some institutional owners prefer integrated systems which provide them real-time information and a greater degree of control. Clients are protected with an accounting operation that is fully Sarbanes-Oxley compliant, with SAS-70 certification.
CB Richard Ellis' size provides a highly discounted national purchasing program with savings that are passed through 100 percent to clients, ensuring the best service and pricing from vendors. With an 8 million square foot portfolio locally, CBRE can achieve "best of class" service and highly competitive pricing through various leveraging programs with vendor partners.
CB Richard Ellis' risk management program extends favorable rates and coverage for property insurance to owners. Through a master carrier, the company currently insures properties totaling more than 200 million square feet across the country with enhanced coverage and significant savings. All CBRE clients are eligible to apply for these discounted coverages on their commercial properties.
Energy efficiency is always a priority, and the "Energy Star" program is utilized with demand-side management strategies to save significant operating expenses. Construction engineers and project managers working with CB Richard Ellis embrace this thinking and are committed to helping lead the way toward energy efficiency and conservation.
Even with an unparalleled array of services, technology and sophisticated systems, CB Richard Ellis' priorities remain relatively simple: Always consider the client's best interests, treat assets as your own and support your people by providing the best possible resources.
Without a doubt, a company's most important assets are its employees. For CB Richard Ellis this means hiring the best professionals, providing comprehensive training and development opportunities, adding performance incentives, promoting from within and emphasizing respect within the workplace. All these things create a winning formula for being the clients' best choice.
Today's property manager requires significantly expanded skills in marketing and leasing, local market knowledge and a value-enhancement orientation in everything they do. Clients demand more from their managers than ever before, with a full spectrum of skills and a platform of resources to achieve their objectives.
For more information, please visit www.cbre.com.
Newman is the managing director of the CB Richard Ellis Asset Services group in San Diego and the CBRE downtown brokerage office. Abbott handles marketing and communications responsibilities for CB Richard Ellis in San Diego.