Owners Place More Emphasis on Value

DENVER—RiverRock Real Estate Group, a West Coast-based commercial real estate management and leasing firm, recently named Bonnie Micus as general manager/regional vice president. In her new role, Micus will oversee all operational activity for the Denver region with a primary focus on client service and expanding the firm's offerings as it grows the portfolio. We chatted with Micus on her goals in the new role, how the property management industry has changed and how technology has played a role in the advancement of the property management industry?

GlobeSt.com: What are you goals in your new role with RiverRock Real Estate Group?

Bonnie Micus: Today's property management industry is more client-centric than ever before. RiverRock has always been ahead of the curve in this aspect. They have a unique, client-focused approach and they work hard to individualize their services accordingly. My goal is to continue to expand that platform in Denver, giving owners personalized property management service while growing the local portfolio from 600,000 square feet to 2 million square feet by 2015.

GlobeSt.com: How has the property management industry changed in the past several years?

Micus: Whether for a property sale or increasing value for investors, owners in the post recession are placing much more emphasis on the value of their property. In the process, they are tasking property managers with carefully managing an assets cash flow to effect higher value.  Utilizing competitive strategies such as LEED certification and related “green” practices, managers are able to stabilize operating expenses and lower capital costs through rebates and energy management savings. Tenant satisfaction also remains a big part of the formula, particularly because happy tenants mean higher occupancy which results in higher income and in turn equates to higher value.  It used to be that chocolates and ice cream socials were the status quo for customer relations. Now managers need to be cognizant of tenant's hot buttons such as temperature control, sensitivity to environmentally sound practices and ease of access to building amenities. 

GlobeSt.com: How has technology played a role in the advancement of the property management industry?

Micus: Technology—and particularly the ability for technology to provide information transparency—is transforming our industry on a daily basis. It is also vastly improving the level of service that property managers can deliver to tenants and owners. For example, we can now offer up-to-the-minute access and instantly exchange information on work orders, conference room reservations and the critical financial aspects of our buildings, such as monthly reports or data needed for a sale. Internet-based tools like Skype and Go-to-Meetings also allow for face-to-face interaction for training and process development without the expense of travel. The result is streamlined, more efficient and successful property management strategies that save all parties time and money.

GlobeSt.com: What is key to succeeding in property management?

Micus: Succeeding in property management demands that we not only listen to our clients, but also understand their business plans and execute to meet their goals and objectives. Today's manager needs to remain flexible as well, and must be an expert at multi-tasking since many owners have downsized their staffs and, in the process, have naturally shifted key responsibilities to the service provider.

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

Micus: Property managers are continually being asked to expand their roles and take on more responsibility. This ranges from the daily operations of the asset to working closely with the client to augment the duties of the asset manager. More and more, property management teams are becoming involved in direct leasing, financial analysis and the long-term planning of an asset's life cycle. We're expected not only to preserve value, but also make recommendations and implement strategies that drive higher valuation and returns… all while staying current and relative when it comes to key management fundamentals such as code compliance and energy mandates. To achieve this, the entire team—from property managers and construction managers to project coordinators and project vendors—must understand both the long-term goals of the property and the unique role each team member plays in achieving those goals.