Attention Members: Log in to pay your dues today


4 Commercial Property Management Trends You Need to Know

September 11, 2017 | Nat Kunes

AppFolio is an IREM President Level Industry Partner. This article is published on the IREM Blog as part of that partnership.

As a property manager, it’s wise to regularly evaluate market trends so you and other stakeholders can make the right decisions for your business moving forward. With the year already halfway over, here are the latest trends you can expect from commercial property management for the rest of 2017.

  1. Income Hunters are Driving Prices Up
    Because retirement planning can be difficult and modern pension plans may not guarantee the same stability as traditional ones, more people are turning toward commercial real estate investment for an additional source of income in their later years. This trend causes the cost of properties to increase. Additionally, those in the property management sector are debating whether they should raise the prices for the work they do. Most commercial property management markets have yet to see a resulting increase in prices but the discussion remains.

  2. The Software Is Changing
    Now more than ever, technology is becoming an integral partner in success for commercial property management players. While today’s software options may seem numerous, only the right ones offer property managers greater efficiency and functionality. Evaluating quarterly and yearly goals is essential to choosing the right technology – one that offers better recordkeeping, streamlined maintenance, and smart communication – so that growth is not only attainable but likely guaranteed.

  3. Some Development Projects are Being Delayed
    Even though the economy has seen a big improvement from the market instability of several years ago, some people are understandably concerned that another real estate recession could strike. In response, many developers and investors have paused recent development projects to ensure that they will not be backing a losing project. While this is not the reality for everyone, scaling back has become necessary for many companies handling larger projects.

  4. Investments in Non-Domestic Real Estate are Increasing
    Recent years have seen a rise in non-domestic real estate investment due to foreign investors choosing to target properties at home, along with an increased number of domestic investors choosing to invest in those foreign investments, as well. All that spells a slower period for commercial property management growth domestically. However, the need for property managers remains steady because of the current number of properties and the ongoing need for property management.

Predicting the Future of Commercial Property Management

The continual evolution of commercial property management may pose a threat to investors, developers, and managers who insist on stagnating their business strategy. However, a thirst for knowledge of the industry’s latest leanings leaves room for a considerable return on investment for all commercial property management stakeholders. Plan to stay ahead of the curve and adjust accordingly so your business can best capitalize on today’s trends.

About the Author
Nat Kunes is the Vice President of Product Management for AppFolio. He works on a daily basis with property management professionals to identify industry trends and product features that are included in AppFolio's property management software.

Leave Comment

Login

Name*
Email*
(For verification purposes only)
Comment*
Enter the text shown in this image:*(Input is case sensitive)