Navigating the CRE Landscape: The Ownership Mentality in Property Management
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Episode Transcript:
Today, we delve into the critical realm of property management, exploring how one New Jersey-based company is redefining the landscape.
OPEX CRE Management recognizes the unyielding demand for dependable property managers, but they bring something more—a distinctive "ownership mentality." Brenton Hutchinson, the CEO at OPEX Management, sheds light on this approach, emphasizing a hybrid role that goes beyond typical property management.
With a diverse portfolio spanning 22 states and encompassing various sectors, from shopping centers to life sciences spaces, OPEX Management prides itself on a robust track record managing over 19 million square feet and 1,000 tenants.
Hutchinson highlights a crucial distinction in their strategy. While many firms focus on portfolio revenue, OPEX Management prioritizes the bottom line. Their mission? To maximize revenue, minimize operating expenses, and ultimately enhance a property's bottom line.
Every building, tenant, and location is unique, and OPEX Management believes in a common-sense approach to problem-solving. When taking on a new management role, the first step is a meticulous understanding of existing personnel, services, and contracts, ensuring alignment with the business plan.
Hutchinson shares a transformative example from a Philadelphia office property. By shifting the janitorial contract strategy based on square footage with a vacancy credit, the property owner saved close to $500,000 in the first year alone, leading to a remarkable 32% average annual savings over the next three years.
In the current dynamic market, OPEX Management positions itself as a resource for receivers, lenders, and servicers. Recognizing the challenges of managing distressed assets, they aim to create efficiencies and provide solutions, not just navigate day-to-day operations.
As the commercial real estate landscape faces uncertainty, OPEX Management stands ready to assist building owners and lenders in re-evaluating strategies, navigating the evolving market, and creating value even in challenging times.
This is Tyler Cauble, Signing off