Challenges of Managing A High-Profile Property

SANTA MONICA, CA—The CBM Group has been named the property manager for the Converse store on Third Street Promenade in Santa Monica. Located at 1437 Third Street, the retail store is 7,500 square feet and fully leased on a triple net basis by Converse. The property is in a high-profile retail area with a credit tenant, and, as a result, there are extremely high expectations and strict tenant procedures for the property.  

“The expectations for the property's appearance, as well as the overall level of services are extremely high,” Rick Rivera, president of CBM, tells GlobeSt.com. “Of course careful and attentive maintenance and upkeep are a must. But the Landlord, their partners, and their lenders demand a great deal of individual attention. In addition, institutional landlords require much more detailed accounting and reporting.”

The store opened in January 2012 and is the brand's first direct retail West Coast store. According to Rivera, managing a property with a large credit tenant, like Converse, comes with its challenges. Although the retailer has a triple net lease and is a secure and financially solvent, it also has very specific guidelines. “Corporate tenants follow strict procedures, which they demand be followed to the letter or they refuse to cooperate with the management company,” he says. “In addition, CAM recons and related notifications must be handled in a very precious manner. Failing to do so results in correspondence from the tenant's attorneys, which is never fun.”

For this specific property, CBM doesn't have any specific plans, other than to remain flexible. With a national tenant of this magnitude—Converse is a top five worldwide athletic shoe and apparel manufacture—things are also growing and evolving and change is inevitable,” says Rivera. “Moreover, considering the prominent location, landlord is always open for our suggestions and input.”

Property management is important in maintaining a property, and can often enhance a property's value as well as care for the day-to-day maintenance of a property.