Why should I have my commercial real estate portfolio managed professionally?  What should I expect a property manager to provide for my properties?

Property investors build real estate portfolios that can range from a couple buildings to many properties across multiple cities. Portfolios can include commercial multi or single tenant office, industrial, retail, and hospitality type properties; and/or, residential multi-tenant properties ranging anywhere from a single duplex up to hundred+ unit apartment buildings. Regardless of whether the investment property is commercial or residential, it is intended to be owned and operated for the specific purpose of generating net income and building long-term equity. Management of these investments is critical to their longevity and profitability.

Property management can include analyzation of investment potential prior to the purchase of a property and then subsequently, managing the day-to-day responsibilities of tenant leasing.  Some property managers specialize in commercial properties, while others concentrate their services on residential properties. “Commercial vs. Residential” property management requires different skill sets and it is always best to investigate qualifications before hiring.

Your property manager can:

  • Conduct day-to-day responsibilities such as coordinating maintenance requests, fielding questions from tenants, overseeing common area usage to keep tenant relations positive, and much more. All of these are time consuming!
  • Aid in accounting and rent collection
  • Maintain and improve property condition and appeal that may result in a stable or increased future property value
  • Add value to the capital investment by advising tenant rent rates, preparing for lease renewals and supporting maximum occupancy

Professional property managers will usually charge a management fee that represents a percentage of monthly gross income generated by the specific property. There may be a minimum or maximum fee amount depending on the property location, condition, occupancy and current market/economic conditions. A property manager should be able to prove their ability to successfully manage your property by offering positive customer referrals and discuss in detail their qualifications, experience and back-office support (if applicable) that will be important to their success. Building a positive relationship with your property manager will go a long way in making sure that you, as the owner/investor, have clearly communicated goals that both parties can work toward with realistic expectations of each individuals’ role. Collaborating with a property manager can be an ideal way to support your real estate portfolio.

Tony Caprarese, Associate Broker

Welcoming Kyle Jurgenson to the Swisher Commercial Team

With the knowledge to understand property owners’ needs/priorities, foundations in SE Michigan and a vast experience in sales, Kyle is prepared to offer commercial real estate services to the Washtenaw County community and beyond.

​​​​Kyle Jurgenson joins the Swisher Commercial team as an agent, having begun a focused study of Ann Arbor commercial real estate in 2019 and obtaining his Michigan Real Estate License in 2020. Kyle brings a wealth of sales knowledge, outstanding customer service and client/customer relations to the table and he is eager to further establish relationships in Washtenaw County.

Kyle can be reached at (734)926-0233 or kylej@swishercommercial.com.

Click here to view Kyle Jurgenson’s bio.

How does Dexter, Michigan, and other similar sized boutique communities, accomplish the small town feel while serving the larger City of Ann Arbor and Washtenaw County area?

While boutique communities might look small on the map, their collective businesses, downtown hubs and location within the larger region offers stable and successful opportunities for both resident and out-of-town business owners alike. As a company contemplating a commercial real estate property in the Dexter area, here are some advantages to consider:

 · Lower rental rates and flexible lease terms are available. This is in comparison to larger nearby cities such as Ann Arbor and Brighton.

· Free parking is the norm. Many commercial locations have their own at-your-door parking. Municipal lots and street parking is free in the downtown district.

· Easy access to highways (I-94, US-23, M-14) offers convenient mobility between Ann Arbor, Brighton, Chelsea and Jackson. Both company employees and clients benefit from the location.

· Landlords are often local business leaders who manage smaller portfolios creating a more approachable and personalized tenant experience. Direct landlord-tenant communication and expedient maintenance provide for a less time consuming experience than working with non-local landlords.

· Dexter offers similar downtown amenities to those of neighboring metro downtowns but at a lower cost to consumers. Small town restaurants, shopping, services, and entertainment can be more economical; this serves the local community and attracts clients from all across Washtenaw County.

· Dexter is surrounded by beautiful natural areas, farm land and a variety of parks, water features, and recreational opportunities.

· The Dexter community enjoys downtown festivals and events, offering the chance to get to know your neighbor and network.

· For business owners who choose to live in the same community as they work, Dexter offers highly rated schools, family orientated neighborhoods and rural living while still being only 15 minutes away from Ann Arbor. Dexter also includes an active arts and athletics scene for youth and adults alike.

Jeff Evans, Associate Broker

 

To view available properties in Dexter, visit Swisher Commercial’s property search page HERE.

I’m interested in a career in Commercial Real Estate; what do I need to know?

Commercial Real Estate (CRE) professionals build up and support the community as a whole. A career in CRE is both engaging and challenging, but isn’t for everybody. For those suited and committed to the business, it can provide a long and prosperous career. If you are self-motivated, flexible, and enjoy independence with unlimited earning potential, CRE may be for you.

As you might expect, independence requires one to maximize efficient use of their time. Your time is often unstructured and may entail balancing many clients over several months and often years until deals can be completed. Persistence and drive are mandatory.

Many enter the business after having careers in other sales related activities. This can be an advantage in that most sales positions require interpersonal skills and negotiating experience. The value of these attributes cannot be overemphasized.

The potential earnings for CRE agents is significantly higher than many other sales positions. Commissions however, are often unstable and can vary from year to year and are subject to changing market conditions.

Swisher Commercial is always looking for both experienced and talented individuals that may have interest in this vibrant and rewarding field. If you would like to discuss in more detail, please contact Swisher Commercial at (734)663-0501 or visit our Careers page HERE.

Michael Jurgenson, CCIM, Managing Broker

 

MICHIGAN COMMERCIAL REAL ESTATE RESOURCES:

NAR – National Association of Realtors

CBOR – Michigan Commercial Board of Realtors

CCIM Institute – Certified Commercial Investment Member

How is the COVID-19 Pandemic Impacting Recreational Land Sales?

So what are we seeing in the marketplace this spring? Check out this article on LANDFLIP – Click Here!

For local land market information covering Washtenaw, Ingham, Jackson, Lenawee and Livingston counties, contact Charlie Koenn at (734)926-0230 or ckoenn@swishercommercial.com.

 

Featured Photo: Dexter-Chelsea & Steinbach Property – 4 Lots SOLD, 2 Lots AVAILABLE

When I list my property with a commercial real estate brokerage firm, what sort of marketing services can I expect?

In addition to the actual real estate brokerage, showing and negotiating services; your Commercial Real Estate (CRE) broker will provide marketing services for your lease or sale listing. The variety of services and market range varies from company to company. Because visibility and marketability separate your property from the rest on the market, it is wise to review your options with your broker prior to listing. While these opportunities may look different at each firm, marketing strategies should include three areas of expertise and action.

RELATIONSHIPS: Much of real estate success is based in the relationships within the business community. An audience with the active owners and landlords of the community can bring your property into the limelight. A CRE brokerage house should have relationships with local chambers, business organizations, development councils and participate in community events and networking. Relationships with municipal boards and committees provide answers to the logistical/zoning questions regarding the best location for your business. While you might think of marketing as ad sales and large signs, the value of marketing potential through relationships with clientele and investors can be more effective than any billboard.

DATABASE & MEDIA: CRE brokerage websites should, at a minimum, be designed to offer a personalized property search and a unique property listing page with customized brochures including photos, floor plans and detailed listing information. They might also include daily blog posts of property news and local market information. In addition to a firm’s own website, your property should be listed on local and international property platforms, bringing in leads from all markets.  Ask how email and internet marketing campaigns are customized to highlight your listing. And finally, review the firm’s social media posts to ensure that posts are current and relevant.

PRINT: Print marketing comes in different forms including custom signs with QR coding technology, custom brochures, and targeted snail mail campaigns if it is determined to be advantageous for the listing and the demographic.

While each CRE firm offers different services, it is imperative to understand their marketing strategies in order to be confident in the exposure and market placement of your sale or lease listing. – Swisher Commercial Marketing Team

To view the marketing services provided by Swisher Commercial, CLICK HERE.

Why should I hire a commercial broker to find my office/industrial/retail space as opposed to the residential agent that found my new house? They’re all realtors, aren’t they?

On the surface it may seem that residential and commercial real estate are similar and can be handled by any licensed Realtor, but in fact, they are vastly different. To assume that your residential broker could also provide you with commercial real estate opportunities would be similar to asking an orthopedic doctor to do heart surgery…not wise. Specialization and knowledge are critical.

Consider, “What are your future business needs and how can real estate serve those goals? versus “What is your family looking for in a home and neighborhood community?”

 · Commercial agents have current market knowledge and have built relationships with local commercial property landlords and municipalities that can span a decade or longer; just as residential agents know their local sales history and current inventory of houses. These are two different markets and there is little crossover.

· Your commercial realtor will know that commercial property listings are not maintained in just one place and while your local residential MLS system may provide the homes for sale in your area, it will not have thorough coverage of the commercial real estate available. Contacting your commercial real estate broker will give you a glimpse of both on and off-market opportunities for your business using commercial search databases.

· A commercial sales contract differs from a residential property lease or purchase agreement. A commercial realtor will be well versed and understand the critical differences of the buyer, seller, landlord or tenant’s investment. Issues such as CAM (Common Area Maintenance) and  Lease type (NNN, modified gross or full service) can be explained by your commercial broker. Other factors, including but not limited to, zoning use, parking information, property visibility, floor plan, power capability, and data access for specific use. Property or suite improvements (referred to as Tenant Improvements – TI’s) may be needed and should be included in the lease. 

Commercial real estate needs are best handled by commercial brokers with the specialty knowledge and local market connections. While residential brokers can help you find the right neighborhood and pick out a home with the perfect backyard, don’t forget that your future business should be in the hands of a commercial broker. – Charlie Koenn, Associate Broker

Building relationships…property showings with care!

Swisher Commercial is happy to announce that in-person property showings are back on the calendar! In support of a healthy community, we are introducing new showing procedures to protect our clients and brokers while conducting business and exploring commercial real estate opportunities together.

  • Showings are limited to four attendees total, including showing brokers.
  • All attendees will be required to wear a face mask.
  • Subject properties will be prepared for contactless showing, doors will be open and lights on. Gloves will be offered to clients as a courtesy.
  • No handshakes or contact is allowed.
  • Marketing materials will be provided virtually prior to the showing, or upon request post-showing.

Swisher Commercial’s brokers will keep our clients informed and prepared to tour in order to assure that our clients’ safety is a priority. Property showings with care! For more information, reach out to our office at (734)663-0501 or info@swishercommercial.com.

When preparing to list my property for sale, what information will my listing broker ask for?

There is certainly not one answer to this question.  Every broker, property owner and property are unique and offer different outlooks, amenities and challenges. However, thoroughly understanding the physical property is paramount to the marketing of a property in your community. Your commercial real estate broker will need to know the strengths / weaknesses of each represented listing or parcel. Providing site history, property data (i.e. building height, HVAC type, number of elevators, etc.), utility information, floor or site plans, and tenant history will shape the product that your broker can market. To complete the marketability of a sale property, your broker can provide information on zoning, area specific comps, and knowledge of property attributes that are attractive to the current market.

It is also important for the broker to understand the priorities and motivation of the seller in order to position each property to best align with those priorities. Bring your business goals, your motivations for selling and all property information / history to the table so your commercial real estate broker can market your property to its greatest potential! – Mike Giraud, Associate Broker