If you are having troubles with your commercial property, it doesn’t have to remain that way. Borelli, has a proven track record of transforming distressed properties into profitable ones, and we are proud to share four of our best industry practices for successful transformations with you:
1. Love and Appreciate the Lender
If the property you own is at risk for defaulting on its mortgage, this is the first item that needs to be handled. Alleviating risk is most often about creating a new trust-based relationship with the lender, and showing that you have a plan to get your property back on the right financial track. Then, it is crucial to deliver on your promise.
We have helped several property owners that were on the verge of bankruptcy when its owners hired Borelli to manage it. We immediately focus on establishing a trust-filled relationship with the lender, which afforded us greater freedom in making decisions.
Of course those relationships helped by making sure that the property started performing and meeting its debt obligations immediately. As a result, within a 12 months, we had successfully refinanced the property.
2. Listen to the People with Experience
We pride ourselves on actively listening to the existing tenants and taking their concerns to heart. This may seem obvious, but we have found that in far too many cases, listening to tenants may not have occurred for many years if at all.
Tenants can provide helpful information on things like targeted landscaping, refurbishing the insides of elevators, and improving curb appeal and many other things that they see and live with on a daily basis. One important result of listening to the tenants was winning back their trust in the property leadership.
3. Filter Out the Bad Vendors
Central to any turnaround is discovering which vendors are irreplaceable and which ones need to be replaced. Consider re-bidding all work when possible. Through observations and conversations with tenants, you can quickly determine which vendors make a property worthwhile, and which ones are just collecting their fees.
4. Motivate Leasing Agents, and Attract New Tenants
Getting an occupancy rate to above 90 percent is key to the success of any property. Many believe that a lack of budget means that new leasing is impossible. That is simply not accurate, as we have experienced firsthand. By actively managing and demonstrating a genuine interest in problem-solving at a property, you can revive drive among leasing agents and possible tenants alike.
The great news for all property owners is that it is possible to generate positive returns on almost any property. You get positive results by focusing on protecting the investor. At Borelli, we are all about maximizing the owner’s return on investment with integrity and trust.
