Jeffrey Pliskin in NYREJ – April 28 – May 11 2015 Issue

Third-party property managers offer a strong value proposition

Jeffrey Pliskin, Pliskin Realty & Development, Inc.
Jeffrey Pliskin, Pliskin Realty & Development, Inc.

Property management (PM) across all markets (i.e., retail, office, industrial and residential) represents a $69 billion industry. There are over 206,000 PM firms in the U.S. today. With an estimated 3% annual growth rate and based on forecasts,things are looking up for PM firms. This is especially true for third-party PM firms who offer real estate owners an indisputably strong value proposition.

Alleviating the Headaches

Whether a retail, office, industrial or residential building, there are headaches associated with ownership. There arechallenges associated with tenants who fail to pay their rents on time, hiring and managing contractors, dealing with local municipalities, keeping a property fully-tenanted or marketing it for sale, and maintaining sound financial operations. For owners who do not have the experience, qualified staff, relationships, or the time or desire required to do the job effectively, an experienced, third-party PM firm can be a real asset, freeing up the owner from all of these tasks and the associated headaches.

The Value Proposition

Of course, there are many more tangible benefits presented in the PM firm’s value proposition, including:

* Improved financial management including property budgets, efficient management of accounts receivables and payables, rent collection and cash flow;

* Property income optimization;

* Lower total cost of ownership;

* Properly maintained property;

* Real estate asset protection and risk reduction;

* Efficient problem resolution;

* Enhanced owner/tenant relations;

* Positive reputation as a responsible owner; and

* Better positioning with lending institutions.

All of these benefits add up to a better, more profitable ownership experience and allow an owner to pursue other business or recreational interests. There is a caveat though. Not all PM firms deliver a high value proposition. Some are clearly more qualified and some are simply better fits for certain owners. Therefore, it is important to perform the necessary due diligence when selecting a PM firm.

One Size Does Not Fit All

First, let’s dispel the common misconceptions. Bigger is not always better when it comes to property management. In fact, the opposite is often true. A smaller PM firm provides a more personalized, higher level experience. Their owners, many of whom also have their own real estate portfolios, are hands-on and can relate to a property owner’s goals and needs. The small PM firm’s staff is locally-based, accessible and very knowledgeable about the market (i.e., competitive properties, rents, sale prices, lending rates, etc.). They have close working relationships with local builders, sub-contractors, officials and other brokers. They are extremely accountable and responsive to the owners and tenants in properties they manage.

Within the smaller PM firm, staff members tend to be long-term, experienced, senior level professionals. They’ve worked together as a team for many years and as a result can be extremely responsive and efficient in addressing needs. Tenant concerns are managed, communicated and resolved quickly. There’s high accountability.

Because of their size, smaller PM firm also can offer more flexible contract terms in its management agreements with its owner clients, whether that encompasses less restrictive cancellation clauses or fee structures.

Expectations and Deliverables

Assuming that the PM firm can accommodate an owner’s needs, applies best practices, can provide references and has the proper credentials (e.g., certified shopping manager (CSM) credential awarded by the International Council of Shopping Centers for retail property managers),knowing what to expect from the relationship will facilitate a higher ROI. A full-service PM firm should be expected to provide the following services:

* Financial management – property budget and financial plan development; billing and collection of rents; determination of lease terms that meet the owner’s financial goals while helping to attract and retain high quality tenants; development of asset protection and optimization strategies encompassing cost-effective property maintenance, insurance, taxes and contractor/vendor contracts; deployment of a sound accounting and property management system; adherence to tight internal financial controls; detailed financial reporting; and performance of its role as a responsible fiduciary on behalf of the owner, serving with transparency and adhering to strict policies such as not accepting commissions, fees, rebates, etc. without full disclosure.

* Property maintenance and management – reflecting the owner’s short- and long-term goals and encompassing a detailed property budget (i.e., itemized expense projects covering routine maintenance, preventive maintenance and capital improvements), policy relating to contractors’ insurance requirements, collection of certificates of insurance and other documentation, emergency preparedness/disaster recovery plan for contingencies ranging from natural and manmade disasters to security or data breaches, environmental hazards, safety incidences, etc., and a commitment to protecting and maintaining a safe property with adoption of appropriate measures (e.g., surveillance cameras, sufficient parking lot lighting, security guards, as appropriate, etc.)

* Property marketing/brokerage services – customized marketing plan which identifies target tenants and/or buyers, presents creative marketing strategies for attracting prospective tenants/buyers (i.e., advertising, online marketing, social media, broker campaign, etc.) and a well-developed leasing plan conveying the attributes of a property, unit rental rates or sales prices, square footage/space options, competitive property data, market conditions, as well as an ongoing strategy to position the property favorably within its community and with outside centers of influence

By understanding the full scope of services that should be provided and choosing a PM firm wisely, property owners can derive considerable value from this important relationship.

Jeffrey Pliskin, Esq., is the president & CEO of Pliskin Realty & Development, Inc., Garden City, N.Y.

Chris Wierzbicki in New York Real Estate Jounal

Wierzbicki of Pliskin Realty completes 750 s/f lease

Christopher Wierzbicki, Pliskin Realty & Development
Christopher Wierzbicki, Pliskin Realty & Development

Merrick, NY Pliskin Realty & Development sales associate Christopher Wierzbicki has brokered a five-year, 750 s/f lease with options for Expedia CruiseShipCenters Franchise’s new location at 29a Merrick Ave. Wierzbicki, exclusively represented the tenant and consummated the transaction directly with the property landlords, Peter Spiliotis and Angelos Stamatelatos.

Expedia CruiseShipCenters Franchise is a global leader in the marketing and sales of cruise vacations. The organization has been growing consistently for 25 years and now has a network of over 180 independently-owned franchise locations and 4,000 vacation consultants across North America.

At Pliskin, Wierzbicki concentrates on property sales and leasing assignments, representing property owners, tenants, and investors. He brings to the role diverse real estate and related financial experience and extensive sales, marketing and strategic planning skills.

Pliskin Realty & Development is one of the leading real estate brokerage, property management and investment firms in the New York-Metropolitan region specializing in retail real estate. Pliskin is one of the most active brokerage firms representing a wide range of properties, from the largest shopping centers to smaller, strip centers and standalone properties. The company successfully meets the needs of diverse clients, from major national retail brands and franchisors to local businesses, property owners and private investors. Among its many longstanding clients are Advance Auto Parts, Sally Beauty Supply, Ethan Allen Furniture, La-Z-Boy Furniture, 7-11, Walgreens, Municipal Credit Union, Planet Fitness Gyms, Sleepy’s, Subway, Crunch Fitness, Expedia Cruise Ship Centers, Sprint, and Karako Suits. Pliskin’s geographic concentration is on Long Island and the five boroughs of New York City. Pliskin also manages over 1,250,000 square feet of properties in the NY area and nationally for investors. For additional information, visit www.pliskinrealty.com or call: (516) 997-0100.

Pliskin’s Marvin Hartman Making the News

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Marvin Hartman, Pliskin Realty & Development
Marvin Hartman, Pliskin Realty & Development

Tappan, NY Marvin Hartman, executive vice president at Pliskin Realty & Development, a prominent New York-Metropolitan area retail real estate brokerage, property management and investment firm, closed on the following three retail leases totaling 10,175 s/f:

* An 11-year lease for another Advance Auto Parts (AAP) location. AAP is one of the largest aftermarket automotive parts retailers in North America. The 7,375 s/f space is located at 68-76 Rte. 303, Tappan. Hartman represented the AAP and Steve Lombardi of LB Commercial Realty (Closter, NJ) represented the landlord, 62-76 Route 303, LLC.

* A 10-year lease for The Holbrook Karate and Fitness Center. The 1,600 s/f space is located at 408-05 Patchogue-Holbrook Rd., Holbrook. Hartman was the exclusive broker representing the tenant and the owner, Holbrook Associates Development Corp.

* A 10-year lease extension for Alessio Pizza. The 1,200 s/f space is located at 2054 Lakeville Rd., New Hyde Park. Pliskin represented the tenant and the property owner, Home Base Realty.

Hartman is widely-recognized with the real estate industry and markets served for his in-depth knowledge and experience in retail leasing and development, retail and multi-family investment properties, and brokerage and management of commercial and multifamily properties. He is an accomplished dealmaker who has long-term relationships representing major national brands such as Advance Auto Parts. In addition, he is the longstanding broker for many private investors.

Hartman received his Bachelor of Arts from Queens College and MBA from Pace University. He is a member of the International Council of Shopping Centers.