Hudson Valley's commercial real estate market has seen a major boost in the past year. Businesses from neighboring cities are moving into our region to in search of affordable office and warehouse space.
This is encouraging news for commercial real estate investors. However, even when commercial real estate is in high demand, investors still need to focus on risk management for commercial properties.
A strong risk management plan can protect your ROI. PMI Hudson is here to provide guidance and expertise.
Read on for our short but thorough guide to risk management for commercial real estate.
Assess Your Market
The perk of commercial real estate is that tenants are typically in it for the long-haul, reducing tenant turnover. The downside is that the commercial real estate market can change quickly and make it difficult to fill vacancies you still have.
Every year, it's important to assess your market to ensure your marketing plan holds. First, take a look at your location and the kinds of businesses that are thriving, moving out, or over-saturating the area. Next, look at other properties that provide similar amenities to determine what kinds of tenants they're attracting.
You can't rely on your commercial tenants to catch (and tell you about) every potential issue. Some of the biggest problems, like foundational, electrical, or HVAC problems, don't always present noticeable signs. As a commercial property owner, you'll need to conduct regular inspections to make sure that your building is safe and functional.
To stay on top of inspections, it's important to develop partnerships with local professionals. At PMI Hudson, we work with some of the top contractors in the area. Not only can we schedule inspections but we can also schedule preventative and emergency maintenance.
Perform Preventative Maintenance
Though commercial tenants will have their own insurance policies, they still depend on you to perform a lot of maintenance. In fact, you will need to address most (if not all) structural issues. Some of these issues can cost a fortune, which is where preventative maintenance comes in.
Preventative maintenance is the practice of fixing small issues before they turn into large issues. For example, if you know that a pipe is leaking, it's crucial to patch it up or replace it ASAP. Otherwise, you could be looking at full scale water damage down the line.
PMI Handles Risk Management for Commercial Properties
Hudson Valley is looking at a strong commercial real estate market in 2023. This is significant given that the pandemic disrupted commercial real estate trends in other parts of the nation. However, that doesn't mean commercial real estate is an easy investment.
Risk management for commercial properties can protect your portfolio and liquid assets. Our goal at PMI Hudson is to ensure that property owners have high vacancy rates and low emergency costs. The right balance of marketing, inspections, and maintenance can help.
Are you ready to protect your Hudson Valley properties? Contact PMI Hudson Valley today to learn more about our property management services.