A BROKER’S PERSPECTIVE ON MAINTAINING OCCUPIED AND VACANT PROPERTY
Brokers often find CAP’s network a valuable resource
Commercial Asset Preservation (CAP) recently sat down with longtime commercial real estate broker Michael Guggenheim, president of Guggenheim Commercial Real Estate (GRCE), a company founded in 1961 by Michael’s father, Armin Guggenheim. The firm, located in Cleveland, Ohio, focuses on brokerage, property management, investment sales and valuations throughout the state. Michael shared his experience on issues that arise with properties in their portfolio.
GRCE manages property, but does not self-perform maintenance. “We often contract out maintenance services to various vendors,” comments Michael. GRCE recognizes that maintenance contractors, like CAP, can work in partnership with property managers so that each brings its service specialty to the property without conflict. The specialized services of a maintenance contractor augment a broker and ultimately make them a more valuable business partner. Through the national service provided, CAP also has become a resource to brokers and property managers by finding brokerage and property management opportunities for its business partners. Maintenance companies, like CAP, are not licensed brokers or property managers.
“The challenges we face include vacant and partially occupied properties with security, vandalism and limited ‘client’ resources (cash) making it difficult to stay on top of property conditions.” Michael reports also that occupied, older facilities, with often outdated operating and mechanical systems present even more challenges. GRCE clients readying a property for sale often clean up the property twice year, typically spring and fall. We asked Michael about what prompts owners to action with maintaining and securing their properties. “GRCE upon possession often engages the city to determine what, if any, code and/ or health & safety violations exist. We try to be proactive so as to maintain the integrity and value of the building.” GRCE has had good experience with clients of vacant buildings preemptively winterizing properties, a must in the harsh Northeast Ohio winter climate. What problems do you face with your portfolio of properties? Send your questions to Marc Insul, president of Commercial Asset Preservation firstname.lastname@example.org.