Turn on the latest weekly business news program or crack open your daily financial newspaper and you will inevitably find a feature on growing or expanding your commercial real estate portfolio. The headlines will tell you now is the time to buy in on restaurant properties or strip malls are currently value priced. All of that is well and good, but what about potential for revenue, or the prevention of loss of revenue that is sitting right under your nose? Before you expand your CRE portfolio, let’s talk about ways you can grow your empire with your existing properties.
Revenue Expansion in Your Current Portfolio
Adding another random property to your commercial real estate empire isn’t the only way to grow revenue. After a thorough lease analysis, it may turn out that opportunity is knocking right at the doors you already own. With property management software you can analyze important financial data such as price per sq. foot, maintenance fees and basic lease rates. Are your current tenants in line with industry and regional norms? Scheduled or on demand financial reports using lease management software such as that offered by Quarem, can ensure you are getting the most out of your existing portfolio.
Room for Growth with Existing Properties
Rents are the only thing you should look into expanding when it comes to your current CRE portfolio. Physical room or expansion, or better utilization of an existing footprint, could lead to more units, updated units and more modern units, all of which equal more dollars into your pocket. But before you get to adding that gourmet kitchen into your commercial warehouse property, first try tracking your projected financials with property management software.
Well-designed portfolio management software will not only help you budget, plan and track your improvement or renovation projects. Software, such as the products offered by Quarem, can also prepare sophisticated projections that will help determine the best use for your investment dollars. Deadlines, contractors and long term renovation or remodel planning is all just a mouse click away.
Neglecting Your CRE Portfolio Could Cost You
Good lease and property management software doesn’t just make you money; it also saves you money. Knowing when a lease is up for renewal or subject to a rent increase clause can help you from leaving dollars on the table. Property management software can also monitor aging properties, or allow you to store pictures and easily communicate with your group about needed maintenance. Efficiency in communication also means less hours, and overhead, spent on management and more time spent developing.
Finally, knowing which properties are costing you more than you are making is just as important as finding the next big location to purchase. If a property simply isn’t performing, it can be time to exit that investment in favor or something in a more desirable area of town.
Good property management software will not only help you bring in more income, it will also keep you from losing in the short and long term. Either way you slice it there’s more dollars in your wallet at the end of the day.