SPECIALTY ASSET MANAGEMENT
So exactly what do we mean by specialty asset management?
Typically, traditional commercial real estate management is focused on:
- Multi-family (multi-tenant)
- Single or multi-tenant retail (shopping centers)
- Office (single or multi-tenant)
- Industrial (single or multi-tenant)
- Home Owners Association Management (multi-property/owner)
“Specialty asset management” is the management of commercial property that serves a retail purpose but lacks a permanent tenant. While the real asset is fixed and provides a service, the real asset is not occupied by a single tenant and the “users” of the real asset visit the property, make their product or service purchase and then leave the property. Some examples:
- Self Serve Carwash
- Laundry (coin operated)
- Ice Vending Machines
Management of these asset types is not based on rent collection and leasing of tenant space.
Rather, the management focus is operational, ensuring that the real asset is maintained in proper working order and the necessary revenue reporting and management procedures are in place to serve a transient client base that will be utilizing the real asset for 5-30 minutes on average.
In short, we have a physical asset with no tenant that is dependent on revenue generation from from a variable and demand driven retail customer base.
As with our self storage projects our focus on these “non-tenant” commercial real estate assets is to perform a full property audit and determine any weaknesses in the current management (or lack thereof) and revenue reporting procedures and then implement a comprehensive management plan to enhance property value through increased revenues and comprehensive revenue reporting.
SELF SERVE CARWASH