PCC's Secret Weapon
PCC's Secret Weapon -
Property Management & Broker Relationship
Pacific Coast Commercial Points of Difference
As the largest independent Commercial Real Estate Company in San Diego, we credit most of our success to the strong relationship between our Property Managers and Brokers. Last year, our Brokerage team closed 618 transactions and currently we have 5.7 millions Sq. Ft. under property management including an approximate 1,279 tenants. When Pacific Coast Commercial provides both property management and leasing, our current occupancy rate is 97.8%.
How? When the two work hand in hand, we are able to offer comprehensive and up-to-date data on the real estate markets and submarkets in the San Diego County. Both our Property Management and Brokerage teams are recognized by San Diego Business Journal as top Commercial Real Estate firms, and our Brokerage team has consecutively achieved a CoStar Power Broker award in the San Diego market as a top leasing firm.
When a broker and property manager work for different companies, they still have a mutual goal of leasing up a building. However, nothing is more powerful than having both working underneath the same roof, speaking daily and prospecting advancements of their properties.
How Property Managers and Brokers Benefit from Partnerships
There is often a challenge in getting budget items like upgrades or new amenities approved and property managers teaming up with a leasing broker can be a good idea. A leasing broker can help the owner to understand expenses because the broker is seen as the one who is generating direct revenue. With properties vying to secure leases with best-in-class top-tier tenants, property managers are pushing owners to create the most attractive buildings possible. However, some owners are more challenging about spending money, despite their goals to drive rents and increase occupancy. For these clients, it’s the property manager’s job to make them realize that in order to make money, you sometimes have to spend money.
A broker and a property manager look at a building differently, and a broker can help a property manager to understand how the building shows to prospective renters. Tenants talk to each other. If a building has operational issues, it’s going to get out to the market and potentially hurt the ability to lease-up the building.
Property managers should do consistent walk-through's with their brokers, who can point out what a property manager might miss like common amenities that aren’t up to par. Brokers and property managers should also consider vacant spaces. Should a space be left as a shell? Be somewhat built-out and ready for move-in? What are the needs of the market? At the very least, they should be clean and free from construction or building materials. Together, they can approach an owner and make a recommendation that makes the space more attractive.
What Happens When Managers and Brokers Work Together
Brokers and property managers who don’t work together can cause real problems for the building owner. For example, a broker might set unrealistic expectations about the move-in timeline to secure a new tenant. A property manager will know how long it will take for the space to be ready, so they must work together or else its possible that the start date might get pushed back, leading to an unhappy tenant that’s barely into their lease.
Brokers can also help property managers brainstorm creative marketing and retention initiatives that won’t break the bank for the owner. Conversely, if the budget for these initiatives is too small, the broker can help persuade the owner to provide the capital for these items.
For large office buildings, property managers begin working on budgets early and brokers should be an integral part of the discussion. It’s important to know what’s going on in the market and communicate the most up-to-date information.
A broker will also have insider knowledge on what competing buildings are doing and investing in to stay top-of-mind. If a property down the street is investing millions in the renovation of their common areas, a property manager might want to budget in upgrades that would make their common areas comparable. While it’s easy for an owner to say no to a broker or a property manager, it’s harder when they come together as a team.
Each member of a building’s team from security to the engineers to the property manager to the leasing broker plays a critical role in the success of how the building is perceived in the market and how it’s run – all of which drives value for the owner.
Contact your Pacific Coast Commercial Broker or Property Manager to learn more information about the benefits of a dual Brokerage House.
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