How To Increase The Competitive Standing of Your Property

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Putting Your Property Under the Microscope

As an office building owner, you have seen your rental income grow substantially over the last several years. Office-using businesses have been in growth mode since the economy began to recover from the financial crisis that hit back in 2008. Yes, it has actually been ten years since the US economy bottomed out, and in July of this year, the current recovery became the longest in US history.

That rising tide has, until recently, lifted all boats in Orange County’s office market. However, as we mentioned in our recent market forecast conditions have begun to soften, vacancy has drifted higher and tenant concessions are back on the rise. This current trend line has been fueled by the delivery of several major Class A projects just as many tenants in the market have decided to leverage new workspace designs and communication technologies to reduce their space footprint.

Know Where You Stand

That brings us to today’s topic: how to increase the competitive standing of your property. Whether you own a Class C wood-frame building constructed in the early 1970s or a Class A high-rise, there has never been a more important time to take a critical and brutally honest look at how your property is perceived by prospective tenants. Transaction velocity has slowed and that means that you want to make sure your property makes every prospective tenant’s A-list of properties under consideration.

This process will take some time and may even require a small capital investment to gather all the facts, but if it’s done right, it will be worth the cost of both. The key components of a successful effort are objectivity and thoroughness. You will want to pay careful attention to each and every aspect of your property’s position in the marketplace and do so only after a fact-based and comprehensive evaluation. That means taking the blinders off in terms of your current perception and looking at your property through the eyes of those who have the choice of leasing from you or someone else.

Whether you do this on your own or engage the services of a professional, it starts with a long walk, a walk of your property standing in the shoes of a prospective tenant. After all, it’s what they think that really counts. Tenants these days are looking for more than just a place to work. They are looking for a workplace experience that will help them attract and retain the people they need to compete in their line of work. So, location, amenities, layout, design, condition, and image all count, and they count big.

Photo Courtesy of Pavel L Photo and Video via Shutterstock.

First Impressions

Start your virtual tour from behind the wheel of your car. When you drive onto the property, what is your first impression? Do you see a property the owner takes pride in? Does it appear to be well maintained? Could it use paint? Are the trees trimmed, lawns green and windows clean? Is the parking area in good shape with stalls clearly marked and properly lit? Is building signage and address easy to read? Is there any graffiti or trash insight? Does the building look up-to-date or tired and old? You may not be able to change the basic structure, but you can update the look and feel of your property without breaking the bank.

The next step is to walk the exterior with a keen eye for detail. Bring a camera and another set of eyes you can trust to be objective and thorough. If not us, then someone else who knows what to look for. Start a list of everything that could be done to improve the look and feel of your property, including adding exterior amenities like outdoor seating. You may not be able to do it all right away, but that comprehensive list will help you prioritize your actions going forward. It will also help you work with vendors to price out any work that needs to be done.

Photo Courtesy of The Kelemen Company.

An Inside View

The interior comes next. What is your first impression when you walk in? Every tenant who sees your property on a tour will have one. So, channel your inner tenant and be critical. Are the lobby colors and materials in the common areas up to date? What about the lighting, both natural and artificial? Are the fixtures old and tired? Is there adequate natural light in the space? Are plants well maintained or fighting for life? That may sound a bit picky, but the sum total of the little things can add up in your favor if you pay attention to them. Even if your building isn’t going to win any design awards, the fact that it is well-appointed and maintains can make the difference.

Walk the common area hallways next. Are they well lit? Is the carpeting in good shape? And don’t forget to look up. Are ceiling tiles clean and in place or old and tired? What about standard doors and hardware? Could they use some updating? Then there’s your main directory and suite signage. Is an upgrade in order?

Next, take a ride on your elevator. Visit all the floors and get in and out of each one. How do they look? How fast do they arrive when summoned? How do they ride? Smooth and quiet or bumpy enough to feel like grabbing the handrail. Are the controls in good shape? While you’re wandering around, have a chat with some of your tenants about their experience with the building and your property management team. Be patient. Don’t argue. Show concern and take notes. They will appreciate being heard, especially if they have real issues with the property.

Don’t forget the restrooms. This is a real hot button with tenants. Are they clean, well ventilated, properly lit and adequately supplied? Do they need remodeling? If so, it may be well worth the investment.

Evaluate the Competition

Lastly, get back in your car and go to the same thing at your competitors’ properties as if you were a tenant deciding on where to sign your next long-term lease. If you can maintain objectivity, you will learn a lot and will help you make more informed decisions on what to do to reposition your property for success.

To coin a phrase from the clever ad campaign “we know a thing or two because we’ve seen a thing or two”. As professional property managers and add-value real estate investors and owners, we’ve seen a thing or two ourselves and we are confident in our ability to assist you in evaluating your competitive position. We are just a phone call away and we are ready to get started. Call us at (949)668-1110.