Commercial real estate management is looked after by Commercial property management companies which deal with and help manage commercial and retail properties. Commercial property management companies have individuals and big construction companies as its clients.
These firms study business scenario in general and help develop a marketing strategy to fully exploit the property's potential. It may include expenditure on advertising like brochures, newsletters or may be organizing or sponsoring events and advertising in mediums like print, electronic and internet.
Besides, it also keeps financial records of their client and prepares a budget for them which include maintenance of the property, its marketing, expenditure on human resources and operational costs. These firms study the prevailing market rents and compare it with their clients' competitors.
It is also responsible for collecting rent from tenants, negotiating tenant leases and renewal of the lease, and catering to the needs and concerns of the tenants. Since these rea estate firms are professional, they invite bids for any contracted work and assign it to someone whose bid is the best. They are also responsible for supervising these works.
Commercial property management agreement is an agreement between a supervisor and his employer landlord which specifies the designation of the supervisor, his salary and other terms and conditions. Commercial property management agreement gives the supervisor the authority to manage his employer's property. He also has the authority to give it on rent and lease, though with his employer's knowledge.
Commercial property management agreement is generally used by big construction companies are it for commercial purposes or rental purposes which has many properties under its belt and cannot give individual attention to each property.
Commercial property management services, provided by Commercial property management firms, include regular inspection to the property of its client by the firm's managers to check the condition of the property. If some changes or repairs are to be made, these managers apprise the client about the need of doing it.
These commercial property management services also include finding solution for any disputes arising between landlord and tenants through mutual understanding, and preparation of a budget for the client including service charges, expenditure on proposed works or repairs and other expenses. Regular review of rent and taking care of insurance of the property are the other services offered by the firms.
Commercial Real estate asset Management involves helping the company's clients to fully exploit the real estate market, be in full control of day-to-day activities and properly analyze market trends to provide customized business plans for reaping benefits in the future. Commercial Real estate asset Management also includes the evaluation of the assets and negotiation of the lease of the property.