The term “commercial property” is an umbrella term that encompasses a variety of non-residential building types. These types include retail, office, industrial, manufacturing, warehouse, and mixed-use.
If you’re a seasoned investor, you know that Jacksonville commercial properties are usually lucrative investments seeing annual returns that average 6-12% of the purchase price. Nevertheless, managing commercial properties requires specific skills. Whether you are an experienced or new commercial property investor, consider hiring a building management company.
Why Commercial Properties Require Specialized Management Skills
Residential properties provide living spaces for people. Commercial properties provide space for tenants with a wide range of usage needs. These diverse needs require an understanding of how the spaces will be used, what each tenant needs, and how the spaces can be optimized.
Tenant screening for Jacksonville commercial buildings must be much more granular and robust than screening for residential properties. You’re talking about looking at sales records and tax returns, for example. Whatever business or commercial endeavor occupies your building must be a going concern or your own business could be jeopardized.
Leasing laws for Jacksonville commercial properties differ from leasing laws for residential properties, and as the owner, you need to understand the laws. Commercial property leases can place the responsibility for real estate taxes, maintenance, and building insurance on the tenant. Obviously, this can save the owner money, but it requires expertise in writing up leases.
What Can a Jacksonville Commercial Building Management Company Do for You?
Screen Commercial Tenants
As mentioned above, screening potential commercial tenants is necessarily much more rigorous than screening residential tenants. A Jacksonville commercial building management company can help determine the business health of a prospective occupant and decide if the applicant is a financial risk.
Manage Tenants
A management company provides responsive support to tenants, from handling maintenance calls and building requests to dealing with rent/billing issues.
Mitigate the Risk Posed by Public Visitors
Properties used for commercial purposes necessarily receive public visitors—some more than others (think restaurant or medical practice vs manufacturing space). Any time a member of the public sets foot on the property, there is a risk of them being hurt or damaging something.
Building management companies have the resources to manage the risks. This can look like property maintenance checks, property updates, and security protocols to reduce the chance of liability for events that occur on site.
Manage Operating Costs and Maintenance Expenses
A Jacksonville commercial building management company will provide accounting management services for your building, including budgeting and financial advice. They will oversee maintenance expenses and manage operating costs.
Locklear Management in Jacksonville, FL
Do you need a commercial building management company for your Jacksonville commercial property? The right one will ensure financially viable tenants occupy the building, robust leases are in place, the risks posed by public visitors are minimized, and best accounting practices are implemented to protect you.
Call Locklear Management at (904) 431-0204 and let’s have a conversation about how we can help you manage your Jacksonville commercial building.
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