White Papers

The reality is that commercial real estate properties and portfolios that are actively managed not only perform better on an operating basis, but in most cases, they yield more on disposition as well. That said, my question is this: Why is it that so many commercial real estate principals still attempt to manage their own portfolio? While the answers clearly vary on a case-by-case basis, the most common reason usually boils down to the perception that money can be saved by not paying third party management fees. Indeed, the age old dispute between "do it yourself" and "do it for you" business models is alive and well in the commercial real estate industry. In the text that follows I’ll make the case for professional management as a value added service that is accretive to overall property returns.

This will be difficult, but think about green buildings, high efficiency, and low emissions without thinking about politics or environmentalism. These concepts have become ingrained in our government, businesses, shopping, and everyday life. Individuals, small businesses, and corporations are all under constant pressure to reduce emissions, recycle, and leave less of an impact. Those who don’t abide are left for the wolves and those who make great strides are seen as heroes. This paper is not going to address the politics or environmental issues surrounding green initiatives. Rather, it will address some of the sound business logic that is often buried beneath the heated political debate and activism.