Page 236 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

executive summary, and variance report, which will show any
deviations from budget.

Assembling Your Local Property Management Team

The first place to go to fi nd qualified managers is the broker who sold
you the deal. He most likely has been in the market for a long time and
is painfully aware of who is a good manager and who is not.
The broker ’ s motivation is also aligned with yours: If your prop-
erty is well - managed, you just might sell the deal down the road
through that broker. If he recommends a manager who turns out to be
no good, the broker knows that he ’ ll be in the doghouse with you.
You can also get referrals to good managers by going to www.
boma.org . This is the Building Owners and Managers Association. As the
name implies, it ’ s for both owners and managers of commercial prop-
erty, and it ’ s highly respected. Becoming a member of this organiza-
tion allows you to network with other building owners, and ask around
about good property managers.

Look at the Fit between Property and Manager

If you want to maximize profits and minimize headaches, it ’ s not good
enough to get any old commercial property manager. You must get a
manager who specializes in the type of property you have.
By type of property , I mean that you must look at two different

dimensions — use and class .
Within the use distinction, you have retail, offi ce, multi - family,
hospitality, warehouse, and so on. Within the class distinction, proper-
ties are graded from Class A to Class D .
Class A properties are the newest and have the most credit - worthy
tenants. They have higher rents, higher expectations by tenants, and
are usually the easiest to maintain. Class D properties are on the oppo-
site end of the scale in every respect.

216

10/14/08 11:28:27 AM
c11.indd 216 10/14/08 11:28:27 AM
c11.indd 216