While it’s true that the essential nature of commercial property management is to care for real estate assets to ensure that each property remains operationally sound, aesthetically attractive, and produces maximum net operating income, many property management assignments actually start before new ownership even takes title.

Such is the case when Woodmont Real Estate Services agreed to assist their client’s acquisition team during the due diligence of a recent acquisition of a Santa Rosa, multi-tenanted industrial property called Pine Creek Business Park. The 157,166-square-foot property houses several winery tenants, a microbrewery, two churches, a climbing gym and a trampoline-style recreational facility equipped for family parties and children.

During the facilities walk – which included urgency due to a 1031 trade, Woodmont’s management team identified a number of issues that required attention sooner-rather-than later to achieve higher standards of ownership and occupancy.

Without implying blame on the previous owner and not taking credit away from their client’s buyer representatives, Woodmont identified a number of concerns during the due diligence process, including:

• Some space-storage issues that could impact insurance coverage and rates.
• Insufficient alarm-system monitoring.
• Woodmont also performed a tenant lease audit to ensure that contracts were compliant, inclusive of essential details, and more.

After Woodmont’s client bought the asset, the Belmont-based property management firm made further improvements to managing the thriving commerce park. These improvements included items such as bringing on several new vendors and service providers. Woodmont also initiated a new preventative maintenance program for the park’s HVAC system, improved landscaping, and installed a new fire alarm system.

Additionally, future plans exist to refresh the asphalt throughout the park and develop a new paint scheme. Further, the roofing on each of the buildings will eventually require replacement.

There are, of course, many fundamentals associated with best practices in commercial property management, and among them are sound reporting systems and work-order management, budgeting, routine inspections, and a communication plan for staff, management, and the client.

And then there is a matter that many people may not associate with excellence in property management, and that is accounting. Given that real estate represents a financial asset, owners must know how their assets are performing financially, and this is an area of the industry in which Woodmont excels – by generating thorough, yet easy to read financial reports on performing property assets.

Accounting, according to Scott Pritchett, CPM®, RPA® and President Commercial Operations, Woodmont Real Estate Services, was one of the areas that needed the greatest improvement on a new account Woodmont recently took over in San Francisco and South San Francisco – a family office-owned collection of five individual retail properties that are mixed single-tenant, multi-tenant buildings.

Inadequate financial reporting was one of the main reasons the investor made the change to Woodmont, Pritchett said.

Beyond the details of effective and efficient day-to-day operations associated with property management, Woodmont’s success spanning 50+ years lies in its very platform, based on location, market penetration and knowledge, and long-standing vendor relationships.

Woodmont operates exclusively in Northern California and possesses decades’ experience in all the core submarkets, from the North Bay to San Francisco, the Peninsula, Silicon Valley, the Santa Cruz Coast, the Tri Valley, East Bay, I-80 Corridor, and the Sacramento Metro Market. The company maintains deep, reliable broker relationships in each submarket, and understands the nuances of each submarket. Access to the best market data – rents, availabilities, touring activity, for example, provides the company with local market knowledge that contributes to the financial success of its assets under management.

The management firm has established vendor relationships that often match Woodmont’s tenure in the industry with complimentary regional coverage and service at attractive pricing excellence that is based on mutual experience and trusted working relationships.

And finally, since property management is primarily a people business by nature, Woodmont places only experienced professionals into account management roles, and provides ongoing training and best-in-class tools for its staff. The company offers highly competitive compensation and benefits to its people, with department-level managers that are among the best in the business.

Taken together, these are the core elements that produce the best results in commercial property management.