Ch1: The Professional Property Manager

the mission of ULI

"initiates research that anticipates emerging land use trends and issues, proposing creative solutions based on that research."

what does the 92 hours of live course instruction entail for a GRI requirement?

- 64 hours of Consumer Protection credit - 8 hours of Consumer Service credit - 20 hours of the DRE mandated Agency, Ethics, Trust Fund, Fair Housing, and Risk Management credits

What two duties are inherent in the property manager's role?

- Administrator for the owner - advocate for the tenant

PMC requirements:

- Attend and complete four courses from the seven courses available - Pass each course exam - Complete and submit the PMC application

CAR

- California Association of Realtors - statewide trade association dedicated to the advancement of professionalism in real estate

List three of the designations offered by ICSC

- Certified Leasing Specialist - Certified Shopping Center Manager - Accredited Shopping Center Manager

List three of the six ways ICSC works to advance the shopping center industry as a major institution:

- Establishing codes of fair business ethics and dealings with retailers and consumers and with government and public agencies - Encouraging research into the architecture and design of shopping centers - Studying economic, marketing and promotional conditions affecting the shopping center industry

GRI

- Graduate, Realtors Institute - nationally recognized educational institute dedicated to furthering the fundamental knowledge and skills of REALTORS® with less than 5 years experience

What are some expectations office building owners have of property managers?

- Preparation and monitoring of the budget - collecting rent - overseeing any tenant construction - and general tenant issues.

Smart Growth Alliances

- These are alliances of members with varying interests-all of which are interested in the promotion of smart growth and sustainable development

a real estate *asset manager* acts as the owner's:

- agent & advisor for the property - typically has a say in retention or disposition of property

Urban Land Middle East

- an annual magazine that focuses on issues particular to the Middle East

Urban Land Green

- an annual publication by the ULI that focuses on best practices to design and develop communities using "green" techniques

what kind of property is less intensive to manage than any other property type?

- an industrial warehouse or manufacturing facility

Leasing agents

- bring together tenants and prospective rental properties - can move from property to property on a monthly basis or choose to stay long-term with a property

concierge services

- courier and secretarial services - cater lunches and arrange conferences - provide rental services for office equipment - may also handle personal services (dry cleaning, etc.)

corporate property managers

- create facilities and manage properties for corporations that invest in real estate - typically employees of the corporation and NOT independent contractors

Tech Expert

- fiber-optics - telecommunications - both office and residential

asset management services

- financial management of a number of investments properties - deal with large properties - study local markets - compare individual properties with other similar properties in the investor's portfolio

mixed-use properties include

- ground floor retail with upper-level office or residential units

anchored tenant

- has a central, larger tenant, like a grocery store, as the main draw to the center - also has small to mid-sized tenants who rely on the anchor to draw consumers in

Mailing List rental

- if you are a member of BOMA, you can rent the mailing list to send out marketing materials or other information you would like disseminated

management of special purpose properties is typically handled by:

- internally by members of the particular business or organization - these managers must be knowledgeable in professional property management and in their specific fields of endeavor

financial benefits to hiring property managers:

- life of the property is extended - PM's may be more willing to increase rents - vacancy rate is reduced - Damages are reduced and covered by security damage bonds set up by property managers - Property managers are in a position to obtain discounts for bulk purchases

resident / site manager

- lives on the property and may be employed by a real estate broker, managing agent, or owner - responsible for day to day tasks - typically NOT involved in long-term planning/decision making - may or may not be licensed

what does an asset manager focus on?

- long-term strategic financial planning, rather than day-to-day operations of the property

main reason why owners employ property management:

- management duties become too burdensome and take up too much of the owner's time

industrial properties include:

- manufacturing and warehouse - self storage facilities

NAIOP

- national association of industrial office parks

office properties include:

- office buildings - business complexes

rent in a shopping center is charged via:

- per square foot - rates can vary widely - Common Area Maintenance (CAM) charges can also vary

special purpose properties include:

- public buildings - theatres - hotels - motel - medical facilities - churches - schools - clubs - military housing

managing mixed-use properties

- require a professional manager with diverse and extensive skills to cover both types of properties, depending on the combination

GRI requirements :

- requires 92 hours of live course instruction from a statewide faculty selected because of extensive experience in their own areas of expertise

what is the most common professionally managed property in the U.S.?

- residential property bought for investment

what property is a new property manager most likely to manage?

- residential property bought for investment

retail properties include:

- shopping centers - strip malls - stand-alone stores - regional malls

residential properties include:

- single-family homes - apartment buildings and condos - mobile home parks

the vast majority of retail centers are:

- single-story, multi-tenant buildings

professional property management is critical in shopping centers due to the:

- size of the center - diverse tenant mix

the common element of all special purpose properties is:

- the activity in the buildings is a special business or organizational undertaking that dictates the design and operation of the buildings themselves (Ex: hospital)

what is the main difference between an *asset manager* and a *traditional property manager*?

- the asset manager is responsible for managing the portfolio of properties in the same way as a securities portfolio would be managed

what is the property managers primary role?

- to accomplish the owner's goals

why does the manager need to know the owner's primary objective?

- to determine how the property will be managed

what is the property manager's primary role in an institutional property?

- to ensure the property meets the owner's needs

what are the determining factors of a property manager's role?

- type and size of property - owner's goals

individual property manager

- usually a real estate broker who manages properties for one owner or a number of owners - typically works directly with the property owners to: 1. prepare management plans 2. consult about major decisions 3. provide operating and financing reports

individual building manager

- usually manages a single large property - may or may not have a real estate license - may be employed by a property manager or an owner

regional & executive managers

- usually supervise on-site managers instead of performing the management functions themselves - regional manager responsible for handling the management business itself - executive manager may be the owner or executive officer of a firm

Why is managing an industrial warehouse or manufacturing facility less intensive than any other property type?

- very little common area to maintain other than parking lot, roof, and exterior - property manager will probably spend more time fixing roof leaks than any other maintenance item

a warehouse tenants main concern would be:

- whether his trucks can come and go easily to load/unload items - the protection of his goods in the warehouse

what 3 things must an asset manager do?

1. collect dividends (rent) 2. review property performance 3. analyze the types of properties invested in or to be invested in

List five exemptions for California's requirement that property managers hold a California real estate broker's license:

1. performing broker acts *without* compensation 2. property owners who manage their own property 3. Acts performed by employees of a broker that are also supervised by the broker 4. Management of transient occupancy dwellings, such as hotels 5. resident managers

3 main things that employing a property manager does for an owner:

1. reduces expenses 2. adds to the financial bottom line 3. increases value of the property

BOMA

Building Owners and Managers Association - represents over 9 billion square feet of commercial property

How did the 1930s depression era affect property management?

Business failures and real estate foreclosures put much of the nation's real estate in the hands of mortgage lenders who did not have the skills or experience to manage the properties.

What is the certification called for community association manager in California, and is it required by the state?

Certified CID Manager, and it is voluntary

what does CAM stand for?

Common Area Maintenance

What three types of property are represented by the NAIOP?

Industrial, office parks, and mixed-use developments

IREM

Institute of Real Estate Management

ICSC

International Council of Shopping Centers

IREM publishes the:

Journal of Property Management

Whose interests are represented by the NAA?

Multifamily housing owners, managers and developers

NAA

National Apartment Association

Does California require property managers to hold any separate certification specific to property management? If so, what certification?

No

BOMA designations include:

RPA- real property administrator FMA- facilities management administrator

SIOR

Society of Industrial and Office Realtors

official magazine for the California Association of Realtors®:

The California Real Estate magazine

What is the focus of ICSC?

The shopping center industry

Community Action Grants

These grants provide venture capital for local programs that are innovative in making communities sustainable

Urban Marketplace

This is a one-day event that brings together profit and non-profit interests for exhibits and programs

Urban Plan

This program teaches universities and high school students about urban planning through a classroom simulation

What is one of the roles of IREM for its membership?

To keep its members apprised of new legislation at both the state and national level that will impact the property management industry.

ULI

Urban Land Institute

What kind of lease is an industrial lease?

a true net lease (*triple net lease*) (NNN)

The membership of BOMA includes what types of professionals?

building owners, building managers, developers, asset managers, leasing professionals, and governmental officials

What types of information does the BOMA Magazine provide?

legislative, regulatory and codes activities, statistical trends and forecasts, and emerging technologies impacting commercial real estate

do you need a membership to attend the BOMA conference?

no

What type of property requires specialized management skills and are more time intensive than other commercial properties?

office buildings

janitorial services are usually employed at:

office buildings

PMC

property management certification

C.A.R.'s annual conference

the CALIFORNIA REALTOR® EXPO - provides educational, networking, and professional development opportunities designed specifically for California REALTORS®

The shopping center's success or failure often depends on:

the property manager's ability to: - assess the market - conduct sales promotion and public relations - act swift and decisively