Thursday, March 3, 2011

BOMA-Kingsley Report: Preparing for Recovery

BOMA San Francisco Members:

As employment reports grow more optimistic and lending activity picks up, property professionals are now concerned with how to best position their assets for success once the market recovers. Management companies and building owners are grappling with the question of asset value preservation in different ways, especially when it comes to deferred maintenance and capital improvements. Some are performing improvements that will attract tenants and payback in the long-term. Others are focused on balancing deferred maintenance with cost constraints. Many are facing a backlog of deferred maintenance, first because of the buy-and-flip cycle in the boom years mid-decade, followed closely by the market downturn. So what’s the winning strategy?

One thing everyone is focusing on is tenant retention. "Preparing for the turnaround is about keeping the income you have in place now and making sure that you are leading the market—beating the market—to increase your occupancy," commented Joe Markling, managing director, Asset Services and Strategic Accounts Group, CB Richard Ellis. "If people wait too long for the market to recover, they are going to miss that revenue stream."

Want to read more? Check out the BOMA-Kingsley Report in the March/April issue of The BOMA Magazine.

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