The expectations for a property management team have evolved over the last several years as building owners' requirements have expanded, according to the second-quarter edition of "Ask the Expert," featuring Eric Mockler, executive vice president of property management at Transwestern. In this edition, Mockler outlines three aspects of property management that are now considered to be best-in-class service.

OWNERSHIP MINDSET

In today's world, operating a building efficiently is not enough on its own. A property management team must reduce operating and energy costs to positively impact the asset's net operating income (NOI). The more a provider aligns the property management function with reducing cost and increasing NOI, the greater the asset's potential value. The most effective management platforms are continuously implementing initiatives that ensure buildings operate more efficiently so clients reach their financial objectives and property values increase.

TENANT RETENTION

Occupancy rates have the most impact on return on investment (ROI), and tenant retention begins with a management team that operates an efficient building, thus reducing tenant operating costs. Although low operating cost is a critical factor in tenant satisfaction, the building's operations must be viewed as a whole. Managers must be sure elements such as on-site amenities and office atmosphere – including quick responses to work orders – are exceeding tenants' expectations.

INCREASING OCCUPANCY VALUE

Tenant satisfaction surveys allow managers to gauge a tenant's intentions for staying and take the necessary actions to ensure it does. A successful tenant retention strategy should offer the best possible occupancy value, not necessarily the lowest rental rates. A comparative analysis of the surrounding buildings determines whether a capital improvement plan is needed in order for the building to compete. If new amenities are deemed necessary, it's the manager's duty to advise the building owner on instituting a mid- to long-term capital improvement plan.