The main tasks of Commercial Building Management include Letting Management, optimisation of ancillary costs, preparation of the necessary budgets and a corresponding reporting system. Marketing and advertising are also included in the tasks of Commercial Building Management. Letting Management includes the entire tenant support, up to the dunning process, but also the responsibility for full letting at conditions in line with the market.
Commercial Administration mainly includes Property Accounting.
Technical and Infrastructural Building Management covers the entire technical management of the building. Particularly in shopping centers, the care of technical systems such as escalators, lifts, heating, ventilation and air-conditioning, but also the surveillance equipment is of enormous importance due to the high customer frequency. Of course, fire protection is also an essential part of the tasks. It needs fire protection regulations, the fire protection officer and the regular inspection of the fire protection facilities. The little things, such as regularly checking and replacing the light bulbs, especially the emergency lighting, go without saying. The cleaning of the building, the winter service, the care of the green areas, the security service must be organised and supervised.
In some cases, these activities are also carried out by a specially established facility management team, which in turn makes use of appropriate service providers. The selection of the Facility Management or service providers is regularly the responsibility of the center management.
What remains for the asset management?
Asset management defines the framework for the activities of the center management:
It is responsible for the marketing strategy, which essentially includes the positioning of the shopping center in the catchment area.
Asset management is also responsible for defining the leasing strategy. Which tenants should be addressed? What orientation should the shopping center take? For example, how high should the share of the food court be, how much space should be allocated to textiles, and much more.
Of course, a multi-year plan for investments, refurbishment measures, etc. is also needed. Who takes over the construction management often depends on the scope or impact of the construction measures. Tenant improvements are usually managed by the center management. Asset management is responsible for reporting to the owner. It usually also prepares the overall budget, i.e. including the ownership company, and the business plan and is responsible for accounting. We also assign the increasingly important compliance to asset management.
The managing director of the holding company is usually provided by the owner, who is then also responsible for the financing of the property company and the cash management, especially if it is integrated into a group of companies.
Even though the above list of activities is by no means exhaustive, it is clear that a good coordination of activities and responsibilities between owner, asset management and center management is necessary to achieve a smooth management of a shopping center.
In addition, it is important to keep a close eye on new developments and to react in a timely manner. You don’t have to think about the expansion of online business; it is enough if other retailers in the shopping center’s catchment area reposition themselves.