IRVINE, CA—Retail landlords should never take choosing a third-party manager lightly. The right property manager firm can make or break a retail development, since they're working with tenants day-by-day as a direct representative of the owner. That's why GlobeSt.com spoke with Passco Retail Group's SVP of asset management Gary Smith exclusively to find out what retail owners should consider when selecting a third-party manager. As a full-service real estate management firm, Passco Retail Group has a nationwide footprint, providing management solutions and expertise to retail landlords.

GlobeSt.com: What's the most important thing retail owners should consider when selecting a third-party manager?

Gary Smith: The reputation of the firm you are selecting is very important since the third party becomes an extension of your own company's brand and reputation. After you go through all the basic factors you must consider—capacity, cost, alignment of interest, lack of conflicts—reputation really is key. I've done this for more than 20 years, and I can't imagine anything more critical. Examine how the manager is viewed by their contemporaries as well as retailers. Having a really strong and positive reputation is especially important if you value your own reputation.

GlobeSt.com: What about the firm's track record? Where does that fit in?

Smith: Look at a firm's track record in terms of what they have actually accomplished – does it fit with your needs? You want a company with a great reputation, but you also want to make sure they have an ability to help you develop a clear, workable asset vision and strategy that they are able to execute on. What examples of that kind of work do they have, and how does that fit with what you're trying to do? Are they just a property manager, or can they work on higher level asset management functions like major remodeling and repositioning, financing, refinancing, insurance claims, litigation, loan renegotiation and workout structures? These are all nuances that have to be considered.

GlobeSt.com: I would also imagine that culture is important. What should retail owners look for with that?

Smith: What is their operating style? At the end of the day, it's all about the people you end up working and operating with. Are they a firm that works in large bureaucratic silos or a smaller, more entrepreneurial, creative and proactive firm? They become your strategic partner, so you want to be with a firm that can build and grow your asset in a positive direction. You also want people who are fun to work with and that match your own company culture, as you do spend a significant amount of time with these partners. Some firms simply do not seem to actively listen to their client's ideas. You want a property management partner with a listening culture, which attends to the very specific needs and desires of the client and provides a customized solution.