_Top tips for successful commercial property asset management mobilisation

Charlotte explores the challenges and strategies for overcoming them. From engaging with the main contractor early in the process to managing tenant fit-outs and digital strategies, explore the key aspects of commercial property management that require careful thought and planning.

1. Engage with the project manager and main contractor early

The transition from construction to property management can be a delicate phase, often overlooked in the grand scheme of things. It’s important to engage with the main contractor and project manager at least 6 months before the practical completion (PC) date. This early involvement ensures a smoother handover, enabling property managers to align their processes with the contractor and set the stage for effective management. Managing snags effectively requires open communication and collaboration.

2. Utilities and infrastructure

The successful management of utility transfers from contractors back to the managing agent reduces non-recoverable costs through the application of out-of-contract rates by suppliers. Additionally, ensuring that the infrastructure is in place and functioning on PC is vital. By engaging with a utility consultant early in the process, it can help mitigate issues with recharges and ensure a seamless transition for occupiers.

3. Managing tenant fit-outs

There can be multiple tenant fit-outs happening at any one time, either before or after the PC date. Getting the right teams in place, differentiating between back and front of house services to coordinate the work streams logistically but also maintaining the building's presentation positively and ensuring the marketing needs are being met. Property managers should be prepared to provide additional services as required and communicate these needs to the owner and occupiers.

4. Service charge budget and managing non-recoverables

Setting the service charge budget and managing non-recoverable cost during the mobilisation period requires effective communication with both occupiers and landlords. Expectations may change as unknowns are discovered, so transparency in budget management is key.

5. Building new occupier relationships

First impressions matter. Building positive relationships with new occupiers from the start is crucial. Preparing key documents early on, such as an occupier handbook and fit-out guide, and ensuring a smooth onboarding process can set the standard for a productive, long-lasting relationship.

6. Replies to legal enquiries

The leasing process can be streamlined by preparing early drafts and documents to respond to legal enquiries, such as Commercial Property Standard Enquiries (CPSEs). It’s best to be proactive to avoid unnecessary delays.

7. Digital strategy and access control

In an increasingly digital world, property managers must consider digital strategies, including access control and apps. These strategies should be in place during construction, and property managers should be equipped with the knowledge and skills to manage them effectively. Costs and terms should be carefully considered to ensure efficient day-to-day operations.

8. Warranties and guarantees 

Understanding warranties and any guarantees in place is critical for post-PC operational processes and to ensure the building team is aware of any conditions within them. Property managers should be clear on suppliers, essential handover documents, and operational and maintenance procedures.

9. Property Management Agreement (PMA)

Initiating the property management agreement process early benefits all parties involved. This ensures the right teams are in place pre and post-PC. Agreeing the PMA with plenty of time allows the property manager to mobilise the onsite teams and get under the skin of the building while the contractor is still on site.

10. Client and agent collaboration

Collaboration and clear communication with agents and clients is vital, particularly regarding key dates, meeting client requirements and approval processes, and launch events. Property managers should be included in the planning process to provide the necessary support.

By proactively addressing these potential challenges, property managers can steer clear of common pitfalls, ensuring a successful transition and partnership. Engaging early, cultivating strong relationships, and adopting digital strategies are some key components that can help.

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