NEWPORT BEACH, CA—Success in property management is based on happy employees, happy tenants and happy customers, John Combs, principal of RiverRock Real Estate Group, tells GlobeSt.com. We spoke with Combs exclusively about the property-management sector, the state of commercial real estate in general and the role of technology in his firm's area of expertise.

GlobeSt.com: How would you describe the state of the commercial real estate industry?

Combs: The market is expanding and robust. Occupancies are up, and many buildings in California including the Bay Area are being purchased and repurposed. Rates continue to rise as occupancies are up, and the “churn” is way up.

GlobeSt.com: How has the role of the property manager changed over the past few years?

Combs: The capital expenditures are way up, so managers are busy with remodels, tenant improvements, upgrading elevators and mechanical and the impact to occupiers. Managers tend to be specializing in product types and submarkets and increasing their network of other managers of competing buildings. Asset managers are less and less likely to have a history as a manager and therefore do not fully appreciate the impact of their requests to property managers. Also, there is more movement of asset managers between firms, which creates unrest for the property manager.

GlobeSt.com: How has technology played an increased role in property management?

Combs: There are new tools that we are using, like reverse-texting for emergencies, tools to communicate by floor on specific issues, building portals and handheld technology used on site.

GlobeSt.com: How do you quantify success in your property-management business?

Combs: Success is based on happy employees, happy tenants and happy customers. The true measure of success is in employee surveys and client surveys. If you are growing with current clients, then they must be happy with service levels.

GlobeSt.com: What does the future hold for the evolution of the property-management industry?

Combs: Shorter hold/sell cycles, specialization in product types, increased threats in cyber and environmental and labor unrest. Millennials are upwardly mobile and are moving into middle management as older managers are retiring.

Instant Insights /

How Property Managers Quantify Success

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