As commercial property owners, increasing the profitability of the business is about more than just finding prospects to add to your portfolio – it’s about which tenants are filling the space, the experience you provide to them as a landlord and collecting all the revenue your organization is due.
Boosting property and portfolio performance starts by filling vacancies with the right mix of tenants that are tailored to your business needs, maximizing the value you both receive from the lease agreement and running your operations smoothly to maximize returns.
Evaluate tenant mix
It’s no secret that now is a challenging time for commercial property owners when it comes to finding tenants. But aligning your leasing pipeline by bringing in new, healthy and productive tenants is the first thing you can do when it comes to boosting your portfolio performance.
By assessing the current performance of the tenants within your portfolio, you should be able to identify which types of tenants are currently doing the best. Follow the numbers and determine the value that each tenant brings to the property, giving you a better idea as to who you should be looking for to fill the space. Visualize performance across your portfolio, separate high performers from at-risk tenant types, and understand where opportunities are and what size they may be. Collect all the information into one place so that the different groups within the organization can see how that pipeline is doing from a tracking and opportunity perspective.
Understand your leases fully
Leases contain large amounts of data that are critical in establishing a healthy tenant/landlord relationship and must be executed against in a comprehensive manner so that your business isn’t leaving money on the table.
Having a full understanding of your leases and acting on them properly is a process that starts when you first access the data found in those contracts. Extracting information like key terms and critical dates into a single source mitigates risk by giving all the different teams within the organization access to the same data, leaving less room for money to fall through the cracks in a manual information handoff.
These single sources of information also support agile decision-making across the organization by establishing one format of data that all teams use and understand. This way, company-wide updates can be distributed, tenant invoices are clearly understood by those in your organization and you can recover expenses for which your tenants are responsible.
Be easy to do business with
Building out back-office processes with a focus on efficiency, your organization can boost profitability by executing on the activities needed to maintain operations, managing the relationship with your tenants, and collecting the revenue that’s due according to the lease you’ve both signed.
Running your property efficiently starts with establishing operations that work for both your organization and for your tenants. Many processes within commercial organizations come from manual trial and error, and certain steps might have come about as quick fixes to problems that arose long ago. Assess each step in your process and ask yourself: what problem bore this solution and is it still relevant today? Improving your back-office operations can also reduce friction in your interactions with tenants, making them more likely to renew. Make yourself easy to do business with.
Your organization’s profitability ultimately comes down to collecting revenue from tenants, whether that means invoicing them, accounting for dollars that have come back in, and in some cases, searching it out with initiative if it’s not coming in. Recoveries in particular can be difficult to assess with complex calculations that might be hard to grasp for both your organization and your tenants. Automating those calculations with the right technology solutions can pull together all the different outputs that go into recoveries so that tenants and landlords can clearly understand costs due and plan for the future.
Attracting the right tenants to your property, understanding the lease data fully and managing your operations efficiently can help your commercial property organization maximize profitability across the commercial lifecycle, from the deal to the dividend. Learn more about boosting your portfolio performance and the solutions that can help you do so.