Houston Commercial Property Management
CXRE: Your Houston Commercial Property Manager
CXRE commercial real estate offers full-service commercial property management in Houston, Texas. We also operate a commercial office brokerage company. Undoubtedly, we’re at the top of the industry when it comes to complete property management.
We focus exclusively on commercial real estate assets over 25,000 square feet, the largest segment of the office building market. Fortune 500 enterprises, the federal government, and wealthy commercial real estate investors comprise the majority of our clients.
If you’re looking for a long-term property management partner to take care of building accounting, maintenance, leasing and entity management, count on CXRE: your ideal Houston office manager.
Without a doubt, your tenants are 100% of your asset value.
Specifically, we are aggressive deal-making brokers who put clients first.
Exceptional Commercial Property Management in Houston
Our expert commercial real estate property management team takes a consultative approach to your asset.
- First, we evaluate every expense. Then we tie it back to an income line to weigh its importance.
- Second, using the CXRE Metrics Engine, we score, assess, and predict the asset’s maintenance and operations performance.
- Finally, for corporate services clients (who are often classified as single-tenant users), we provide full-scale commercial facility maintenance and facility management services.
Our commercial real estate broker business, operating as CXRE, focuses on agency representation for commercial property management in Houston. This is also known as owner’s representation.
From an owner’s perspective, we generally lease and dispose of large commercial real estate assets. Our goal is to maximize short-term or long-term value.
Specifically, we determine value through consultative meetings with the asset owner. In the end, we partner with both owners to look after everyone’s best interests.
COMMERCIAL PROPERTY MANAGEMENT
On the whole, we have over 20 years of commercial real estate management experience. Because of this, our property managers can help retain your tenants and strengthen your asset.
TEXAS PROPERTY MANAGEMENT
CXRE chiefly provides Texas-wide commercial property management services. Specifically, we handle office space, medical office, medical, industrial-flex, and virtual office spaces.
We Understand the Houston Commercial Real Estate Market
We know commercial property management in Houston. As result, we know that navigating a major commercial market like Houston is often tough. That’s why we offer a complete assortment of commercial real estate services to building owners, investors and office tenants.
Our expert brokers know each submarket inside and out—both medical offices and traditional offices. In light of this, you can trust us to take care of all your office needs for commercial property management in Houston.
THE ULTIMATE GUIDE TO HOUSTON COMMERCIAL PROPERTY MANAGEMENT
What is considered a commercial property?
There are many different types of commercial properties, including office buildings; retail centers and shopping malls; medical buildings; industrial buildings and warehouses; and self-storage facilities. Even though residential buildings such as apartment complexes and condominiums also produce income, they’re generally not included in the field of commercial property management, as they’re managed and leased in a different manner.
Office buildings are primarily intended to hold office space and are typically occupied by a variety of companies and professional organizations. These commercial buildings come in all shapes and sizes. Office buildings may house many different tenants or a single tenant.
A retail building typically contains tenants that offer shopping, dining, or recreation to consumers. There are several types of retail properties, including retail strip centers, shopping centers, retail parks, and shopping malls. These commercial buildings can be difficult to manage because extra attention to cleaning and maintenance is needed.
MEDICAL OFFICE BUILDINGS
Houston is home to more medical office buildings than any other major city in the United States. This is largely due to the fact that Houston boasts the Texas Medical Center, an internationally acclaimed medical district famous for its 60-plus member institutions. These nonprofit organizations provide health care and research facilities to a large section of the population. Medical offices in Houston are the backbone of these services. There are many health care centers and medical schools in these medical offices throughout all of Houston.
Industrial buildings are meant for clients who produce goods. Manufacturing facilities differ from ordinary commercial properties in that they have a clear height of at least 14 to 16 feet from floor to ceiling. This clear height can go up to more than 40 feet in the case of very large properties. High ceilings are needed to accommodate the type of work being performed in the buildings.
Self-storage facilities and distribution warehouses are a type of industrial property that’s been prevalent in Houston for a long time. Whether it’s health care, oil and gas, or technology, every industry needs large warehouses for the storage and transportation of its equipment and goods. Large properties in Houston serve the requirements of these industries by providing warehouses and storage facilities. These facilities typically contain loading docks and large doors for moving goods efficiently.
Job functions in commercial property management
Many people assume that the management of a commercial property is the responsibility of an individual called a property manager or office manager. However, it’s not possible for a single person to take care of all that has to be done. Many professionals are involved in the crucial task of managing a commercial property.
OFFICE LEASING AGENT
As the name implies, a leasing agent is entrusted with the task of finding good-quality tenants for a property. Leasing agents closely examine the applications of businesses and professionals and determine their economic feasibility before matching their requirements with available building space. These agents handle lease agreements with tenants, safeguarding the financial interests of the owner. Many tenants never actually interact with the property owners, as these leasing agents perform all the responsibilities on behalf of the landlord.
A leasing agent is a crucial cog in the wheel of property management and makes the work of a property manager quite easy. The agent may not be highly visible, but their skills and experience help the owner of the building earn profits. Much of the success of a commercial building rests on the leasing agent’s shoulders, as they work to increase occupancy and ensure that only reliable tenants occupy space inside the building. A strong leasing agent always makes the financial interests of the owner the priority when drawing up lease agreements with tenants.
OFFICE PROPERTY MANAGER
A commercial property manager is the professional who oversees the day-to-day operations of a building. Every building must be kept neat and clean and must be well-maintained to stay in top condition for tenants and visitors. An office property manager also collects rents from tenants and negotiates leases with them. However, some of these tasks may be handed over to the leasing agent, depending on the owner.
The property manager is the go-to person for all problems faced by the tenants inside a building. The property manager is directly above the tenants in the chain of command, and it’s the manager’s responsibility to resolve all issues without bothering the property owner. From marketing the property, to attracting high-quality tenants, to negotiating lease agreements, to looking after day-to-day operations of the property, a property manager is involved in every step of commercial property management.
When you think of a building engineer, you likely think of someone who takes part in the design or construction of the basic structure of a building. However, a building engineer also services the completed building once it’s operational. This engineer is an integral part of the management of the building and usually helps in the daily maintenance of air conditioning, lighting, plumbing, and telecommunications systems inside the building.
A large commercial building simply can’t operate smoothly without the supervision of at least one building engineer. There’s much to monitor and inspect to ensure everything runs smoothly on a 24/7 basis. Any interruption in communication links or a water supply can easily create mayhem inside a commercial building. It takes years of experience and expertise for a building engineer and their team of electricians, plumbers, and other vendors to ensure smooth and hassle-free amenities. Without a building engineer, a property manager may have difficulty solving issues on the spot. Building engineers are constantly in high demand by Houston office managers.
How do you find commercial property for lease in Houston?
Finding commercial property for lease in Houston is a tough job if you try to do it on your own. Even though there are always commercial properties available for lease, it’s difficult to find the property that matches your requirements perfectly. There are many factors to consider when trying to identify a commercial property for lease in Houston. You must choose a suitable location and also be sure the property provides all amenities and facilities needed for your business. Finally, you want the property to be inside your budget to run your business. (Tip: Reading the Houston Business Journal’s commercial property articles will help.)
One way to start your hunt for commercial properties is to look on real estate websites dedicated to commercial properties. Two real estate sites that are popular among industrialists and businessmen for acquiring commercial properties are LoopNet and Commgate, respectively. No matter what size commercial property you need and where it should be located, LoopNet is a one-stop solution for all your property needs. You can easily search commercial properties available for sale and lease by using various filters on this website.
LOOK FOR A RELIABLE AND EXPERIENCED BROKER
Another way of finding a perfect commercial property in Houston for sale or lease is to contact a reliable and experienced broker. Many real estate brokers in Houston specialize in commercial properties. CXRE has years of experience in the brokerage and sales of commercial properties in the Houston area. You can save a lot of time and effort by partnering with us. Just contact our team of highly experienced commercial brokers, who are seasoned in the Houston market.
What are the typical commercial property management fees?
Buying a commercial property for your business and managing the property are two related but different things. You can find the perfect commercial property in the best location to set up your business and serve your customers. But if you forego professional property management, you’ll face difficulties in your day-to-day operations and your investment will suffer greatly. If you want to succeed, it’s essential to hire a property management company to handle the upkeep of your property.
Obviously, the services of a commercial property management company don’t come free. Although different companies charge different fees for their services, the fees of a commercial property management company in Houston normally vary from 2% to 20% of your business’s gross income. There are no standard or set fees. Many factors affect the fee charged by a management company:
- Location of your property
- Type and scope of services provided
- Condition of the property
- Nature of your industry
- Experience and reputation of the management company
On paper, spending 2% to 20% of your income for the management of a commercial property looks massive. But when you step back and look at the services provided by property management companies, you’ll realize that you’re going to benefit from such a partnership. By hiring the services of a reliable and experienced property management company, you can be free from all worries of the cleaning, maintenance, and tenant-related issues of the building. It’s always a good idea to have a detailed contract with the commercial property management company. You’ll want to refer to that contract if you have any service issues with the company.
What a Houston office manager can do for you
Commercial property management is about far more than maintenance. In almost all cases, you buy a commercial property to earn profits. A commercial property management company understands this and aims to maximize your income. Cleaning and maintenance are the byproducts of hiring a commercial property management company in Houston or anywhere else. What’s more, the property manager also negotiates leases with your tenants to ensure that you keep getting higher rents from your property.
To provide high-quality services, a commercial property manager needs the right supplies. Some management companies arrange the supplies themselves, but you should be ready to provide the supplies as requested by your property manager. These supplies include the following items.
MAINTENANCE EQUIPMENT AND TOOLS
Tools at different locations inside and outside the property are a basic requirement of property management companies. These tools aid in the maintenance of different systems such as landscaping, plumbing, electrical work, carpentry work, and other works, depending upon the nature of your industry and property.
Signs are one of the the primary requirements of any commercial property management company. Large “For Lease” signs are often needed to advertise available space in the building. Other signage is needed to regulate parking, ensure safety of visitors, prohibit smoking inside the property, guide waste disposal, and inform visitors about office hours.
Leasing often requires a lot of paperwork. A commercial property management company needs not only normal office supplies but also all legal forms to formally carry out leasing agreements with tenants. The leasing agent or property manager also need renewal forms, check-in and check-out lists, printouts to welcome new tenants, and a key organizer.
It’s important for the property manager and the owner of the building to discuss who is responsible for supplying these items. Typically, the owner is asked to pay for these supplies. However, some property management companies add up all these expenses and add the total to their fee.
Areas of focus in commercial property management
If you’re unfamiliar with commercial property management but interested in hiring a professional property management company, here’s a brief introduction to the key areas of focus.
BRILLIANT PROPERTY MARKETING
For investors who buy a property to earn an income, marketing is a key factor in improving the value of the investment. Houston is a hub of diverse economic activities in Texas, which means many different businesses are looking for space in the market, whether it be office, retail, medical, or industrial. So, no matter what type of Houston property you own, there will always be businesses to market to.
That said, you must market your property in aggressively to catch the attention of these companies. A good commercial management company can quickly and easily market your property for you. Your Houston commercial property manager will advertise and promote your property creatively and find quality tenants to lease space in your building. Successful commercial property managers have connections in all industries to see that their clients’ units are rented easily. Property managers use many online and offline marketing strategies to help you meet your objective of high occupancy through quality tenants.
COMPLIANCE WITH REGULATIONS
Compliance is a key aspect of owning and running a commercial property. The city of Houston and its surrounding cities have their own local rules and building codes for commercial properties that need to be followed by owners. Whether they own a single-tenant or multi-tenant building, a building owner can face serious consequences by violating these rules and codes.
A building owner can usually breathe easy if they have a professional property management company in place. It’s the manager’s job to keep an eye on changes in regulations. A Houston office manager ensures there’s no violation of rules and codes by any of your tenants. If you try to manage a building yourself, you may become too busy and overlook violations of codes and rules. Your property management company prevents the violations that can cost you a hefty penny in fines.
BUDGETING AND PAYMENT OF PROPERTY TAXES
Too often, owners of commercial properties in Houston pay more than they should in property taxes to the authorities. This usually happens because of ignorance about exemptions and abatements. Commercial property management companies have experts who know all the local rules and regulations regarding taxation and exemptions. These companies help building owners save some of their hard-earned money by making use of exemptions. Local property managers likely have an established relationship with tax assessors too. Your property manager will not only file your taxes but also appeal if they find any errors in your assessments.
A good quality of an effective property manager is shrewdness with expenses. A property manager always keeps a close eye on the owner’s income and expenses, and works hard to reduce these expenses. The manager should keep day-to-day and monthly expenses to a minimum to help increase the owner’s profits from the property.
KEEPING TENANTS HAPPY
As an owner, you might be surprised at the ability of your property manager to keep your tenants satisfied. At times, you may wonder how they manage this despite charging higher rents and placing many restrictions on tenants. But the secret often lies in their training and experience in handling tenants of all types. Expert property managers find good tenants and negotiate lease agreements with them, keeping your financial interests in mind by collecting rents from tenants on time.
Top property managers also know how to deal with erring tenants. Skilled managers know how to communicate displeasure tactfully and send written notices as needed. Should it come down to an eviction, your property manager can handle this too, eliminating a lot of stress for the owner.
BUILDING SAFETY INSPECTIONS
The safety of your building and grounds is a top aspect of commercial property management. Property managers never forget to carry out routine safety inspections to ensure your property is safe and free of damage. As an owner, you can save a lot of money on undue repairs with the help of regular safety inspections.
SKILLFUL NEGOTIATIONS OF LEASE AGREEMENTS
A commercial property manager is a business partner who handles many responsibilities for you. Your property manager will prioritize tasks and then execute them on your behalf. From marketing and selecting tenants to negotiating lease agreements, a property manager makes life easy for you.
One thing to keep in mind is that leases with tenants in a commercial property are typically for much longer periods than residential leases. Often, renewals are built into commercial lease agreements, as are automatic rent increases. You need the experience and negotiation skills of a professional property manager to work with your office leasing agent in handling lease negotiations with your tenants.
Marketing strategies for attracting the best tenants
The real work of a property manager starts far before lease negotiations are carried out. To reach that stage, your property needs creative and aggressive marketing and promotion. A professional property management company in Houston will greatly help you in this endeavor. Your property manager will see to it that your property is advertised through various offline and online channels. Truth be told, commercial property managers spend more time and energy during the initial stages of preparing the property than after tenants have settled in.
One responsibility that’s easy to overlook is financial record-keeping. Budgeting is an integral part of the duties of a commercial property manager, as this person is responsible for maximizing your profits. They maintain accurate financial records to keep you apprised of all income and expenses. The manager also ensures that your mortgage payments, taxes, and insurance premiums are paid on time.
A good manager always keeps the owner in the loop
Property managers must send regular reports to the property owner about occupancy, rent collection, and all the expenses that are incurred in the maintenance of the property. In regular meetings with the landlord, the property manager also discusses the performance of the property and ways of improving it.
When it comes down to it, a reliable and experienced property manager is an asset for you as the owner of a commercial property. Yes, they charge a fee for their services, but they deliver so much that you can consider them a priceless partner in your business or investment.
If you’re an investor too busy to look after your commercial property in Houston, it’s time you hired the services of a local, experienced property management company.