property management

In the past – in the 60’s, 70’s and 80’s - there was not as much attention paid to property management in a shopping centre as there is today, and that was a mistake. A big mistake. A high-quality, well-located, nicely-designed shopping centre with a strong and diverse tenant mix is a prime target for the most wealthy real estate funds, and there have been many around in Central & Eastern Europe in the last few months, although the recent credit crisis has put things on hold for the time being. Good property management makes a shopping centre a much more attractive investment for a real estate fund than it would be otherwise, meaning that the developer can get a far higher price for his product than he gets if he doesn’t invest in good property management. Inversely, poor property management, leading to tenant and customer dissatisfaction, reduces the appeal of a shopping centre to a real estate fund by a great deal. The investor simply pays less. Good Property management is the ultimate in sustainability. It does not only mean that the shopping centre is clean and tidy, but that there is good communication and coordination between the property management team and the tenants in areas such as marketing and promotion. This ensures far higher rates of tenant retention, which is the name of the game. The real estate fund is looking to take on a shopping centre in which the property management and the retailers work harmoniously together for the benefit of the shopping centre – meaning more footfall, higher revenues and better profits for the tenants - and ultimately for the maximum profit for the real estate fund. In this case everyone is happy. Customers spend more and the real estate industry makes more money. A lot more It’s a perfect circle. Good property management is key. It makes you wonder why it took so long to catch on!