Property Managers Need Partners. Not Vendors.
By: Ryan E. Dennis
Tags: Cretech, Commercial Real Estate, Property Management

Being a property manager in the commercial real estate industry means everyone wants you. Everyone needs your time, capital, and attention. Despite this, managers still find time to research new technologies. Property management software continues to grow in popularity and importance. Managers balance their time between pleasing tenants, implementing technology, allocating resources, and much more. Wasting a property manager’s time is inexcusable — almost as bad as wasting their capital.

There is a constant tug-of-war within every commercial property for where finances are allocated. Capital expenditures must prove to have an impact over the course of five to ten years. Owners and asset managers must decide which CapEx will help or haunt them years later. Are you going to spend capital resources on aesthetics, lobbies, elevators, restrooms, corridors, etc.? Or will you invest in operational equipment such as chillers, air conditioners, boilers, etc.?

Being a property manager in the commercial real estate industry means everyone wants you.

Keep in mind my fellow CRE techie, the property manager’s mind is also on Big Brother. The United States’ government intervenes in all facets of real estate. New policies mean more work for property teams to obey the law. Being compliant and making mandatory changes to the building is not an option, it’s an order. Ongoing government policy changes create both ambitious requirements and attractive incentives for property owners.

According to the Energy Policy Act of 2005, owners could receive tax breaks for more conservative power usage. The act calls for properties nationwide to install standard or advanced meters “to the maximum extent practicable” by Oct. 1, 2012. Yet, after that October date passed, those friendly incentives became serious financial penalties. Other current government mandates include accessibility for the disabled, new fuel systems, mandatory plug load metering, and more.

There is a constant tug-of-war within every commercial property for where finances are allocated.

Projects like these fall on the plate of property and asset managers everyday. Property managers juggle operations while satisfying owners, leasing professionals, tenants, and service providers. These are the reasons commercial real estate technology implementation is slow and it’s no one’s fault in particular.

Michael Wong, CEO and President of Genea, observes, “Identifying and implementing the appropriate tech tools is an increasing focus of property managers, mainly because they’re continuously being asked to do more with less.”

If you’re a real estate technology firm, you must ease the lives of property teams. Start with a genuine understanding of their day-to-day challenges. If not, prepare to receive the cold shoulder.

It’s time the CRE technology community becomes an arm of the built environment: automating inefficient property management processes, improving the built environment with smart building technology, and streamlining billing processes. Above all, provide outstanding customer service and 24/7 support for their tenants.

As property managers’ needs intensify, the commercial real estate technology will have to step up. Being just another vendor will not cut it. Just ask Duke Long.

Get in on the conversation by:

Joining remarkable organizations like BOMA, IREM, CREW Network and NAIOP, etc.

Following the #CREtech hashtag and Genea on Twitter and Facebook.

Figuring out how you might provide remarkable value for property teams.

Thanks for your time.

-Ryan