5 Steps to Improve Building Expenditure

Contributed by Chris Reckart, Vice President Property Services, CPM, RPA, FMA

A building can only be as good as its property manager. From daily functions to vendor contracting, an established budget and eye for detail can make or break a building’s profitability. Ciminelli’s continually expanding managed portfolio of nearly 16 million square feet speaks volumes about our team’s performance. As building owners ourselves, we know effective commercial property management is not just about maintenance – it’s about identifying efficiencies and capitalizing on them to provide economic benefits to the owner/client. We interviewed Vice President of Property Services in our Tampa, FL office, Chris Reckart, to outline 5 key steps for improving building expenditure.

  • Train your facilities staff on how to improve operational efficiency. Maintaining rigid start and stop times for building equipment helps eliminate costs and monitor building expenses. While keeping in mind tenant needs, property managers and building engineers take preventative steps into maintenance to minimize waste and cost. Regular walkthroughs and site visits allow for consistent surveillance of the property. Concerns can then be addressed quickly, saving money on what could become expensive repairs.
  • Maintain equipment for maximum efficiency. Eliminate shake, rattle and waste. Cost saving measures, such as preventative care, have proven to render a greater return for buildings than replacing broken equipment. It makes a significant difference staffing knowledgeable property managers who place an emphasis on building monitoring and quick repair times. 
  • Shop insurance costs. Real estate and property taxes play a major role in a building’s profitability. Commercial buildings, unlike residential properties, can have yearly shifts in property values due to tenant pools. Losing a major tenant, or acquiring one, means a change in your insurance cost. Good property management teams review and bid for better rates on a yearly basis to ensure costs are being saved.
  • Benchmark operating expenses. Reviewing operating expenses and comparing them to the Building Owners and Managers Association (BOMA) and the Institute of Real Estate Management (IREM) standards allows a building to remain competitive in the leasing market. This constant review process will also highlight if adjustments need to be made.
  • Match your vendor to your building. Just as there are different classes and types of buildings, there are different classes and types of vendors. From building redevelopment, landscaping, and tenant improvement needs, vendors play a pivotal role in a building’s maintenance. One vendor may not be an appropriate fit for every building. When looking for vendors, a good property manager must keep this in mind and tailor bids/contractor selections accordingly.

As an Accredited Management Organization (AMO), our in-house property management team is adept at reducing costs, enhancing quality and implementing processes for all types of facilities. Check out our website for a complete list of services our Florida Property Management team provides: www.ciminelli.com/florida-property-management. To learn more about what Florida’s Ciminelli Property Management team can do for your property, contact us at (813) 906-1157.