A letter from IREM President Renee Savage, CPM®, CCIM

Renee Savage, CPM^®, CCIM

As today’s real estate professionals continue navigating obstacles to achieving investment goals, they must find successful ways to deliver positive financial results. A key part of that mission is optimizing revenue, the theme of this issue of JPM. We’ll explore how we can all become more proactive as managers to make sure we’re not leaving any potential revenue on the table.

With interest rates rising and inflation lingering at longtime highs, it’s no surprise that our bottom lines are coming under greater pressure from all sides. In such a challenging environment, it’s critical that managers not overlook any potential sources for generating additional cash flow at their properties. Paid parking and onsite vending machines are classic examples, but how about newer opportunities like EV charging stations and targeted digital advertising? In “Revenue recharge,” Will Curtis, CPM^®, CCIM, offers his guidance on property managers’ roles in identifying ancillary revenue streams to help meet investment goals.

When it comes to planning and budgeting for capital expenditures (CapEx) in an uncertain economic environment, getting it right becomes not only more challenging for managers but also more critical. While these projects can carry upfront costs for owners, executing them properly can help drive NOI, increase property values, and give our buildings a competitive advantage. In “Capital impact,” Chad Venne, CPM^®, talks to colleagues about their approaches to CapEx planning, including which projects are improving NOI at their properties, leading to a higher return on investment.

Growing numbers of American renters are cost-burdened by their housing expenses. Enter workforce housing, which aims to help fill this gap for the country’s middle-income workers, who may not be able to afford to live in the areas where they work. Read an overview of the unique challenges and opportunities for property managers overseeing workforce housing.

Upgrading a property’s sustainability features is typically associated with cost-saving benefits. But as our stakeholders continue to push for meaningful ESG practices, should property managers also look to sustainability upgrades to drive revenue? In this Sustainability column, we explore the evidence for sustainability providing these revenue gains.

The benefits of an organization successfully implementing diversity, equity, and inclusion (DEI) programs are well established and vary in scope. Yet some managers may still see dedicating company resources to pursuing DEI initiatives as a distraction from their teams’ primary focus on successfully managing their properties. Read about how the principles of DEI can support property management companies’ ability to create value and improve their bottom line in our DEI column.

Proptech solutions can drive revenue by attracting and retaining tenants and residents seeking connected workplaces and homes. Japan has been a global leader in technology for decades, and its built environment is at the forefront of redefining what it means to be smart. Our global practices column comes from Kiyoshi Inomata, CPM^®, CCIM. Kiyoshi is an IREM instructor who recently attended Japan Build, the country’s premier real estate trade show for showcasing Proptech innovation. He gives an overview of some of the newest Proptech applications on display at the 2023 event and future developments coming down the pipeline.

Those of us who’ve been in this profession for a long time know that successfully meeting an owner’s investment goals means staying on top of revenue and minimizing operating expenses. This can be challenging, as the real estate industry evolves rapidly. And while nobody knows what tomorrow’s changes will look like, we can all rest assured that IREM will be there to support our members as they drive revenue and NOI at their properties through any challenge.