Why would partnering with DWE Real Estate Services enhance the performance of your properties?  Below are three scenarios which show the positive correlation between hiring a professional property management team and increasing an owner’s cash flow.

1. Management and Brokers working in Tandem.
Scenario - Vacancy was expected to drop from 7% to 30% in the next 3 month period.  The Management and brokerage team presented a strategic plan to Ownership addressing the next 12 month period.  The plan included a thorough market overview and property evaluation.
Result:Within a 5 month period, the team secured 10,417 square feet of renewals (14%) and 13,509 square feet of new deals (17%).In addition, 5,000 square feet of the new 6,000 square foot pad was pre-leased, 12 months before the building would be available for occupancy. Resulting vacancy was reduced to less than 2%, with 100% occupancy expected in less than a 6 month period. Rental rates were successfully increased by 5% - 37%.Rental Revenue was increased by close to 25% over the next 12 month period. This increase in revenue paid the annual management fee 3.5 times.

2. Property Tax billings for one large retail user.
Scenario - Prior management incorrectly billed taxes on three different parcels to the anchor tenant.  When management was transferred, the new team found a discrepancy in the percentage shares used to calculate the original bill.  Per the terms of the lease document, each parcel should have been billed at different percentage rates.
Result:- The corrected billing resulted in a 16% increase in property tax bill backs to this one tenant, which increased the total amounts billed and collected for property taxes between 7% and 10%. The additional collected amounts paid by the anchor tenant covered approximately two months of the management fee.

3. Common Area Billings
Scenario – Prior management did not bill back roof maintenance and repairs in the CAM charges to the tenants.  The new management team discovered the majority of leases defined common area in a different section of the lease document.  Roof was actually defined as part of the common area and therefore could be billed back to those tenants whose lease included this definition.
Result: -16 out of 25 tenants were correctly billed for roof expense. Correct billing resulted in 62% of the total roof expense for that year reimbursed to Owner versus 0% by the prior management company.