The property management services provided for different building types are usually similar. But, it’s important to know the differences so you know what to expect when you hire a property management team.
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In this article, we take a look at the typical differences in management between office, industrial, and retail properties. Because property management companies provide so many services, we will only be listing the maintenance services that differ between them.
For an overview of what property management firms can do for your property, read our article What Does a Property Management Company Do?
Ultimately, we always recommend for you or an attorney review your lease and property management agreement closely to understand what is included and what you are responsible for.
Property Management for Office Properties
For office leases, a property management company maintains everything in your suite that is considered building standard as well as all the systems and common areas.
“Building standard” means anything original to the building. If a tenant has their own unique lighting, security system, equipment, finishes, etc. that is not used throughout the building, they will be responsible for the maintenance of that item/system.
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Utility maintenance including electricity and water are both provided in full-service buildings and are billed to tenants based on their pro-rata share. An exception for this would be if a tenant uses a significant amount of water or power for their business. In this case, the tenant may be required to have a submeter and could be charged more if a certain usage is exceeded. Some businesses that use a large amount of power for server rooms or other machinery will have their own electrical meter or they may be submetered for those utility costs and are responsible for maintaining and paying for it themselves.
Property management firms will also provide janitorial services for all suites and common areas.
For office properties, property management teams typically also maintain:
- Landscaping (exterior and interior if applicable)
- Amenities (gym, cafeteria, conference rooms, etc.)
- Common areas
- HVAC systems
- Security and access systems
Property Management for Industrial and Retail Properties
For retail and industrial properties, tenants maintain everything inside their suite.
Property management companies typically don’t provide as many maintenance services related to the upkeep of the individual suites.
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For industrial buildings, tenants usually contract with utility companies directly for their power and these properties don’t usually require an on-site engineer or janitorial services. Water is typically sub-metered and tenants are billed back for their usage.
Industrial properties are typically pretty bare-bones and tenants don’t have to worry about attracting customers to their site. When hired to manage an industrial property, a firm’s main job is to keep costs to a minimum.
For industrial properties, property management teams typically maintain:
- Common areas
- Exterior walls
- Minimal landscaping
Like with industrial buildings, retail tenants usually contract with utility companies directly for their power and these properties don’t usually require an on-site engineer or janitorial services. Water is typically sub-metered and tenants are billed back for their usage.
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When hired to maintain a retail building, a firm’s main job is to make sure the property looks appealing. This will ensure customers want to return and helps the success of tenants’ businesses and, in turn, the success of the property.
For retail properties, property management teams typically handle:
- Window washing
- Common areas
- Exterior walls
- Parking lot
- Pressure washing
We hope this gives you a good idea of what to expect when it comes to property maintenance for office, retail, and industrial properties.
The main things to remember are:
- Office: a property management company maintains everything in your suite that is considered building standard as well as all the systems and common areas.
- Retail and industrial: tenants maintain everything inside their suite.
If you are looking to hire a property management firm for your property, schedule a consultation with one of our property management experts today.