Global Office Space Trends - Grappling with the Power Shift

The Commercial Property industry globally is evolving and adapting rapidly, almost like mutation. Just like the internet which took power off the hands of publishers to users, the commercial property

industry’s evolution is being led by customers rather than by the clout of sellers and owners.

One of our 'Big Apple Crush' posts (http://allaboutofficespace.blogspot.com/2009/08/crisis-series-part-1-big-apple-crush.html) was about how the global financial crisis is leading to a shift from landlord-driven cash intensive deals to tenant-friendly short-term leases and lower upfront

costs. While tenants are being given more and more power, a strong need arises for owners to ensure a fair deal for themselves.

ENTER Property Management Consultants - firms which take the pains of managing realty assets off the hands of the owners and with their expertise, not only manage but also optimize the owner's assets as cash generators. Though not a very new concept, property management is seeing increasing popularity in the current economic scenario. A Property Manager manages the accounts and finances of the real estate properties, and participates in or initiates litigation with tenants, contractors and insurance agencies. Though litigation is usually considered a separate function, set aside for trained attorneys, property management consultants are offering more value with this added function.

This service was usually in the hands of real estate consultants and business consultants on a short-term, project to project basis. However, more and more property management consultants are becoming valued long term partners to landlords as well as other enterprises which own considerable real estate assets. So much so that big names like Jones Lang Lasalle are busy grabbing their chunks of this new need along with a swarm of small players and consultants.