Fort Features: Why We Launched Property Management
When we had the idea to launch our property management arm in late 2019, we never anticipated the extent of the positive impact it would have across our investors, tenants, team, and company as a whole. After onboarding 4 million SF and 350+ tenants, we are sharing why we decided to launch property management, what it was like launching a company during a global pandemic, the service benefits, and how we can potentially serve you.
Niche Market
First and foremost, we noticed a gap in the market. We had worked with a variety of management partners in the past, but the uniqueness of the size, tenant base, and condition of our Class B industrial properties brought a unique set of challenges. We had a difficult time finding a partner that was not only equipped to manage these challenges but also uphold the Fort standard when it came to processes, values, service, etc. Our goal is to operate with excellence in everything we do, so we committed to providing the absolute best service to each of our tenants and external partners.
Increase Fixed Revenue
Additionally, we identified the opportunity to create a new, consistent revenue stream. If you have been following Fort for any significant amount of time, you’ve heard of C.O.R. and know we are consistently evaluating our expenses and looking for opportunities for new revenue generation. (If you haven’t, you can read about the business philosophy that has helped us generate over $1M in revenue and cost savings in 2020 here.) Property management was a service we were paying for, across our entire portfolio, but saw a significant revenue upside by bringing it in-house.
We spent a year planning how to launch property Management and how to slowly onboard properties. Right when we were ready to launch, COVID hit. Rather than taking on one property at a time, we took on our full portfolio of properties at once. Before property management, our primary revenue stream was through acquisitions. During the beginning of COVID, while many were hesitant to make real estate transactions, we now had a steady flow of revenue generation. But beyond the pandemic, this gives us the freedom to be even more selective with the deals we choose to pursue, which in turn benefits our investors.
Communication & Data Flow
Lastly, we knew eliminating an external party and having all teams under one roof would have a positive impact on the property for a variety of reasons:
1. The entire team is working off the same systems and processes.
2. We have an insider perspective on comps in the area.
3. Our accounting, finance, asset managers, and property managers are in regular communication, which provides a holistic view of the property’s performance.
4. Cross-team communication creates a stronger sense of accountability and transparency for the property management team.
5. The property management team becomes involved with the asset at the very beginning, giving them a head start on service contracts and communicating with customers. Sign up for our newsletter to receive updates on our next blog post: Guide to Tenant Onboarding.
6. This enabled us to develop stronger relationships with our tenants and the ability to aggregate data to identify operational efficiencies that benefit the tenant experience.
These efficiencies in communication and data maximize a property’s cash flow and value. It’s a win-win for both our tenants and investors.
Third-Party Services
But we didn’t stop with our own portfolio, we also expanded into third-party Property Management. Again, we knew there was a gap and wanted to provide the same high-quality expertise to the market.
We see ourselves as a service provider. It takes a lot of diligence and time to become an amazing service provider, but that is what we are striving for and committed to. When our partners think of us, we want them to say we are the best group they have worked with. Our goal is to be known as fast, responsive, easy to work with, and friendly.
If you are interested in hiring us for your property management needs, please contact Steve Bailey at sbailey@fort-companies.com.