30+ Ideas in 1000 Words or Less
One of the innovative programs featured at the 2001 Property Management Exposition was 30 Commercial Ideas in 60 Minutes. This interactive program featured the exchange of proven ideas to improve commercial management practices and responding to a changing commercial marketplace. They were presented by Madeleine Abel (Beco Management), Bonnie Morrison (Foulger Pratt), Stephanie Brady (WRIT) and Charlie Sherren (Saul Centers, Inc.)
Energy Issues
Idea 1: Energy management is back and offers greater potential savings than are available through deregulation. Upgrade energy management software, retrofit older equipment and install energy management/building management systems with remote monitoring accessibility. It's easy and cost-effective with minimal paybacks.
Idea 2: When you upgrade energy management software, make sure it is installed by professionals knowledgable with the application. Don't rely on in-house staff if they do not have the required expertise.
Idea 3: There is considerable human resource expenses associated with purchasing gas and electricity. To effectively purchase power in a deregulated market, you either must commit the necessary and financial resources or team with others who offer them.
Idea 4: Buying groups are only as good as the experts who are running them. Approach buying and aggregation groups with caution. Compare performance to default options.
Idea 5: To manage and purchase utilities in a deregulated environment, you need to have data to make intelligent decisions. Partner with utility companies to obtain historical usage data and understand peak demand times for each property.
Idea 6: Energy management strategies must account for changing work habits and tenants. The nine to five tenant is no longer the norm. Operations need to account for tenants' changing work and commuting habits.
Insurance Issues
Idea 7: Expect an unstable insurance market. Insurance premiums were headed toward double-digit increases prior to the September 11 tragedy. Budget for premium increases as high as 40 to 50%. Budget for possibility of surcharges. Expect coverage for terrorist acts to be eliminated.
Idea 8: Respond to a highly unstable insurance market by controlling potential liabilities. Conduct rigorous property inspections with insurance experts who can help identify premium-reduction actions owners can take. Don't overlook the basics. If you have restaurants as tenants, make sure that lease safety issues are complied with such as performing hood inspections.
Idea 9: Shop insurance and rely on outside expertise to evaluate polices, coverages and premium versus protection.
Idea 10: Understand the factors that affect premiums.
Idea 11: When possible, aggregate your purchasing power and bundle like properties to take advantage of size and purchasing power when shopping insurance.
Idea 12: Review and rewrite emergency evacuation procedures to make them more realistic in light of recent circumstances.
Idea 13: Coordinate fire and emergency evacuation drills with local fire departments and/or emergency management personnel. Ask them to review and critique emergency evacuation procedures. Do not inform the alarm company when you conduct drills so you can evaluate their response. Make sure you have adequate emergency response supplies.
Idea 14: Ask insurance companies for the guidelines you need to follow to conduct fire drills and evacuation practices.
Expense Control
Idea 15: The economy is changing. Aggregate your purchasing power when possible. Develop very tight specifications so you can compare apples to apples with outstanding quality control so there are no misunderstandings among potential bidders and service and product providers.
Idea 16: One of the best ways to control expenses is to build trusting relationships with vendors. Consider multi-year contracts with vendors that can help you fix costs. Protect owner's interests with multi-year contracts by including provisions that allow either party to terminate the agreement with 30 days notice.
Idea 17: Treat your vendors like the professionals you want them to be. Pay invoices quickly. Pay invoices quickly. Pay invoices quickly. This will build relationships and trust.
Idea 18: Reduce invoice processing time by relying on the internet for receipt of invoices and payment.
Idea 19: Process invoice payments within 48 hours or receipt.
Idea 20: Make sure your contracts are flexible. Put cancellation clauses in each contract that allows the contract to be voided without cause.
Financial Reporting
Idea 21: Require property managers to present financial performance monthly to senior management in person.
Idea 22: Ask brokers to provide outside unbiased assessment of property conditions, leasing impediments and management obstacles that serve as deterrents to leasing vacant space or renewing leases.
Idea 23: Leasing and management are not adversaries but allies. Build relationship between management and leasing staff by holding regularly scheduled activities between the two staffs. Have management and leasing personnel visit properties together to discuss current issues, market conditions and property's strengths and weaknesses.
Idea 24: Have managers write a frequent status report (monthly) of their properties that includes capital improvement progress, identification of financially troubled tenants or potentially financially troubled tenants, evaluation of tenant activities, changes in occupancy, and other building-specific activities. Distribute property reports to upper level management, leasing agents, financial staff and other personnel.
Human Resource Management
Idea 25: Treat site staff like the professionals that you want them to be. Give building managers, engineers and on-site porters business cards. Modernize uniforms and give employees uniform choices. Invite site staff to management meetings and involve them with other company issues.
Idea 26: Pay for employee professional development and develop incentive programs for professional development performance.
Idea 28: Give flextime options to administrative staff and engineering staff to help them with childcare issues and commuting challenges.
Idea 29: Recruiting new staff is 24/7/365.
Idea 30: Pay at the top of scale to attract and keep personnel. Participate in the PMA-AOBA Annual Wage and Benefit Survey.
Idea 31: Increase reliance on the web as a means to communicate with tenants. Post tenant handbooks on web sites.
Idea 32: Develop a web site or address for each building. Condition tenants to use building web sites and e-mail as frequently as you can. Post tenant notices on the web site, issue them by e-mail and provide reasons for tenants to frequently visit the web site as often as possible.
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