Rent Sense: Brighter Future for Property Managers
By Neil Fjellestad and Chris De Marco
FBS Property Management
Though rarely considered the most prestigious professional choice within the real estate industries property management has long been considered by insiders as the backbone where the heavy lifting is done on a daily basis: operating profits, customer service, sales and marketing, risk and financial control, people and priority skills. RE management has evolved as regional and national companies have gotten into the game with the result that RE management has emerged as the career of choice for those seeking the complete practice of business management. The successful executive and/or entrepreneur in this field will require mastery of the essential skill sets (financial, operational, marketing, people and technology) and will seek commensurate opportunities.
There is a well-developed career ladder in property management with good salaries.
The relative value of RE management has been felt during the downturn. There are current real estate practitioners in brokerage, mortgage finance and development that are re-evaluating their ability to survive another cycle and/or a prolonged flat economy. While development and transaction volume may not regain their pre-recession levels for many years, both new and existing buildings have to be managed resulting in steady demand for professionals in property management.
The millennial generation is as large as the baby boomer generation and they have been stalled in their natural rental pattern. It is thought that they will remain renters longer and/or choose a rental lifestyle. Anticipating continued growth in multifamily the largest apartment operators as represented by the National Multi Housing Council have begun a concerted hiring campaign.
On the commercial side, business has been stalled in a natural expansion after a recession and the composition of this demand for office, retail and industrial space is changing as well.
Finally, southern California is generally considered one of this hemisphere’s mega-centers for population, business and employment growth and development.
These dynamics point to a unique generation of opportunity for re-tooled professionals and better educated business graduates that want to challenge the status quo which historically has rationed entry and/or advancement (an estimated 80% of replacement workers come from competition) within traditional real estate careers.