Utilize property management and leasing services to increase the retail center’s profitability
Are you looking to invest in commercial real estate in the Chicagoland area? Although, you are nervous about the idea of purchasing an underperforming property? Hiring the right property manager and leasing agent are crucial to increasing the property value.
A Latitude Commercial client purchased a 15.4k square foot retail center in Highland, IN in March of 2019. The center was underperforming financially and the previous landlord was assuming costs that should have been the responsibility of the tenants. Many of the lease rates had fallen below market value, and the remaining vacant space wasn’t proactively being leased.
Immediately, the Latitude Commercial Property Management Division enforced two overdue rent increases and were sure to track additional upcoming increases. We saved our client from an awful contract by forcing the charges back to the two tenants who were responsible for paying it per their leases. Latitude stopped paying for things like fire extinguisher tags that were also the responsibility of the tenant. We also reduced expenses like lawn care and snow removal by 30%.
Several of the leases were due to expire within the first year of the purchase. We successfully encouraged tenants paying market value to exercise renewal options. We also strategically allowed other leases to expire only to be replaced by longer, more lucrative leases. The Latitude Commercial Office Group leased the remaining 9% vacancy within 6 months.
Full-service management of this particular property was taken over by Latitude Commercial’s Property Management Division in March of 2019. By March of 2020, we project the property will be generating more than $31,000 extra each year (18.46% increase) while simultaneously cutting expenses!
When asked about his experience with Latitude Commercial’s Property Management Division and Office Group, Dave the landlord said, “Latitude Commercial was indispensable in maximizing the profitability of this investment. Latitude’s Office Group quickly filled our vacancies and the tenants all seem to enjoy working with members of the Latitude staff.”
Our full-service Property Management Division at Latitude Commercial is prepared to do whatever it takes to maximize your investment, and are ready to run your property the way you want, in a professional, affordable, and service-oriented way.
Learn more about Latitude Commercial’s Property Management Division. Check out our website or find us on Facebook. We service Lake County, Porter County, and south Chicago properties. We are looking forward to hearing from you and ready to show you how we will treat your property as if we owned it ourselves!