As a commercial and medical office property owner, you have a lot on your plate. Many of you run your own practice or business in addition to owning the property and let’s face it, you don’t get a lot of time to take care of all of the little things that sometimes need done. Now is the perfect time to take stock and start checking things off in preparation for a clean-slate and a great start to 2019.
Here are five things you can do to get started:
Repairs can be the bane of your existing and small repairs can become big ones if you let them go for too long. Now is the time to get rid of these pesky tasks on your to-do list. Check your emails for what you may have received from tenants and potentially forgotten, and make a list of what needs repairing. Better yet, reach out to your tenants for a “checking in” call to see what they need repaired.
Update and review your expenses. How much are you paying for the various vendors and services you hire including landscaping, cleaning crews, utilities, phone, and more. Are there services you could bundle to save or discontinue? Are there less expensive options now then when you first started the contract?
Select your top three expenses and contact the service provider to negotiate your rate. You’ll be surprised to find that you’ll be able to lower several of your bills and may even decide to add a few more to your call list.
If your property is leased, now is a great time to look ahead and see if any of your leases are coming up for renewal in 2019. Are your tenants happy with their space or might they be considering leaving? If you’re certain tenants are leaving, now is a great time to start planning. Could the space use a refresh so you can bring in higher rents? Even more important, what are market rents for properties similar to yours? Request market lease comps to find out what properties similar to yours are going for in your area.
4) Property Value
If you’re thinking you might want to sell or retire in a year or two, now is the time to find out what your property is worth. Reach out to a trusted broker and request a “Broker Opinion of Value” to see the estimated value of your property based on current market conditions and similar properties that have sold in your area. These are often called “comps” or sales comparables.
Whether you’re thinking of selling or not, now is a great time to consider a property refresh.
If you are indeed thinking of selling, speak with your broker first to see what he/she recommends in terms of what will deliver the most bang for your buck.
Otherwise, simple projects such as having the walls and sidewalks pressure-cleaned or painted, painting the interior walls, updating carpeting, and/or upgrading your landscaping can have big impact on your tenant’s experience of the building.