Establishing a link between operations and NOI is difficult. What does “best-in-class” operations look like, and how does it affect the bottom line?
Even when capital markets are at their frothiest, commercial property values are still linked to the underlying net operating income (NOI) produced by occupancy and rental rates. It can be tempting to think of these factors as fixed, mere functions of market conditions and a property’s physical features.
Real estate professionals intuitively know better. But establishing a rigorous link between operations and NOI is difficult. What does “best-in-class” operations look like, and how does it affect the bottom line?
To answer these questions, Building Engines launched a comprehensive study of over 500 commercial property management teams. The inaugural State of Commercial Real Estate Operations 2017 identifies the specific operational practices most associated with strong financial performance and reveals the ways high-performing commercial properties operate differently than their peers.
Click here to learn about the nine operational practices exhibited by high-performing commercial real estate teams.