Colorado-Real-Estate-Journal_387420

Page 12 — Retail Properties Quarterly — February 2024 www.crej.com ASSET MANAGEMENT N avigating the dynamic land- scape of commercial real estate and property asset management to maximize value demands strategic foresight and a proactive approach. In 2024, property owners and opera- tors will face challenges, as well as be able to capitalize on opportuni- ties. Looking back at the prior year, a notable amount of uncertainty and trepidation infiltrated the commer- cial real estate markets and other real estate sectors. However, there’s now a sense of optimism fueled by the recent Federal Reserve meeting (in which it again held rates steady), as well as an evolving economic outlook. In the face of such changes, prop- erty asset management is vital, and property owners should remain steadfast in continuing to maximize the value of assets within their real estate portfolio. The comprehensive property asset management checklist pro- vided below emphasizes the key considerations that can effectively maximize the value of commercial properties. n Leasing strategies. While filling vacant units boosts your property’s net operating income and cash flow, overcoming leasing challenges can require strategic measures: R Choose the right broker. The right individual and company can make a significant difference. If your investment property has been on the market for an extended period, consider switching to a broker who provides the time and energy your property deserves. R Determine mar- ket concessions. Leverage relation- ships to under- stand current real estate market concessions, such as tenant improve- ments, free rent and prevailing rental rates for com- peting properties. R Tenant retention/renewals . Evalu- ate tenant satisfaction and imple- ment strategies to enhance rela- tionships, reducing vacancy rates and turnover costs. Prioritize timely lease renewals to avoid future vacancies at your commercial prop- erties. R Repairs and improvements. Real estate asset management requires making any necessary repairs and minor improvements to present available spaces positively. n Capital projects and maintenance. To attract quality tenants and stay competitive, a key component of property asset management is to evaluate your investment property and address the following: R Deferred maintenance. Promptly attend to deferred maintenance issues at commercial properties to prevent further deterioration and maintain their appeal. R Landscaping and exterior upkeep. Enhance curb appeal through crisp landscaping, fresh exterior paint, as well as well-maintained parking lots, lighting and signage. R Signage. Upgrade (and main- tain) monument signage at each investment property to increase vis- ibility and attract new consumers. R Mechanical upgrades. Enhance mechanical systems such as HVAC for greater building efficiency and tenant satisfaction. n Financial management. To protect your investment returns, it’s impor- tant to closely manage the financial aspects of your commercial real estate properties. Careful planning and oversight should be applied to: R Budgeting. Work with your prop- erty manager to develop a compre- hensive annual budget with operat- ing expenses, capital expenditures and reserves. R Financial statements. Generate accurate and timely financial state- ments and regularly assess the property’s financial health. R Reserve fund management. A vital aspect of property asset man- agement is to always maintain a reserve fund for unexpected expenses, repairs and capital improvements. n Operating expense management. Given the rise in operating expens- es, cost management is crucial to attract tenants and support rent increases: R Insurance. Bid out your insur- ance policy and consult with bro- kers to reduce or maintain annual premiums. Ensure your policy cov- ers all agreed-upon terms in each tenant's lease. R Property taxes. Protest property taxes. Consider hiring a third-party professional to protest and appeal inevitable increases. R Property management. Collaborate with your property management company on annual budgeting to address potential inefficiencies and discuss upgrades and technological implementation for increased build- ing efficiency. n Security of commercial properties. Security and safety are paramount for tenant satisfaction and invest- ment returns, particularly in sub- markets experiencing an uptick in crime and increasing populations of unhoused individuals. To address these challenges, consider the fol- lowing measures: R Security patrol. Enhance com- mercial property security through regular nightly patrols. R Physical security. Strengthen on-site security through surveil- lance systems, interior and exterior access control, and other measures. R Building upgrades. To ensure the safety of both tenants and consum- ers, add or improve exterior and parking lot lighting. Implement secure monitoring systems to pre- vent theft and unauthorized access. You can also consult with experi- enced security professionals. n Community engagement. As part of your property asset management due diligence, frequently connect with tenants and the community to Maximize value with asset management checklist 3615–3625 W. Bowles Ave. Littleton, CO 80123 1,500 – 3,000 SF Available Peter Kapuranis ext. 103 Columbine Valley Shopping Center 8410 Wadsworth Blvd Arvada, CO 80003 1,000 SF Available Great Visibility High Traf c Counts Matt Landes ext. 101 Wadsworth Arbor Shoppette Union Exchange Building 8933 E Union Avenue Greenwood Village, CO 80111 Executive Suites Available $450.00/month Peter Kapuranis ext. 103 4575 Joliet Street Denver, CO 80239 9,835 SF Available Newly Remodeled Secured and Fenced Yard Heavy Power Drive-in and Dock High Loading Matt Landes ext. 101 Westlake Plaza 1479 W. Eisenhower Blvd Loveland, CO 80538 1,800 - 2,181 SF Available Anchored by Safeway Matt Landes ext. 101 Alameda Square 12790 – 12792 W. Alameda Parkway 1,200 – 2,500 SF Available Below Market Rents Peter Kapuranis ext. 103 J & B Building Company Call 303.741.6343 ext. 100 or visit our website: www.jandbbuilding.com Bryce McNeely Associate, Blue West Capital Please see McNeely, Page 15