By Holly Hughes, executive vice president, Property and Facility Management
First, companies that previously had not outsourced their property or facility management assignments are being forced to do so in order to cut costs. This is creating opportunity for companies such as Carter.
Here’s an example. In Florida, Opus had been managing a three-building portfolio for a limited partnership it sponsors. However, Opus South recently filed for bankruptcy protection and disbanded its management team. This opened the door for Carter to win the property management assignment from Opus, a great company with whom we had an existing relationship.
Second, companies that do outsource their property management are focusing even more intently on quality and cost. As a result, many companies are rebidding their management assignments and creating opportunities for other companies to compete for their business.
Third, with leasing activity at a low point, it’s easy for owners to become dissatisfied with their third-party leasing and management teams. These owners believe changing the leasing and management team could improve services and produce better results. Again, this has opened the door to new business opportunities.
The fourth trend centers on the increasing number of assets lenders are taking back from debtors. Big banks and other lenders usually do not have the in-house experience to provide proper property and asset management for their foreclosed properties and REOs. This trend has created opportunities not only for my group but also for Carter’s Advisory Services group.
Thanks to these trends we’ve been extremely busy responding to RFPs for property management services, several of which we’ve won. Our management portfolio has topped 25 million square feet, and we expect to keep adding to it even in this economic morass.