ABOUT ZELL’S PROPERTY MANAGEMENT SERVICES
ZELL provides property management on retail centers totaling approximately 3,000,000 square feet. While the majority of shopping centers in ZELL’s portfolio are located in the greater Phoenix metropolitan area, ZELL has a presence throughout the state of Arizona including the management of centers in Tucson, Payson and Show Low. The property management staff is comprised of five experienced retail property managers, four licensed assistant property managers and an accounting department. Our accounting department utilizes YARDI Voyager software to produce monthly financial reports for clients and to administer the leases, budgets and expenditures on each managed assets. Each property has it’s own separate bank account into which all of the property’s funds are received and all expenditures are made. The shopping centers managed by ZELL include neighborhood centers, specialty centers, community centers are open air retail centers which range in size from 15,000 square feet to several in excess of 300,000 square feet. Additionally, ZELL has worked as a Court appointed receiver for various shopping centers.
All work on each property is contracted through third party licensed and insured vendors. The property manager assigned to manage a shopping center will visit the property on a regular basis to inspect the physical aspects of the property and to meet with tenants and vendors. Extending the term of existing tenant leases is a priority which we recognize is an ongoing process, not something to address as the tenant’s lease is expiring. Collections, insurance requirements, budgeting, reconciliations, contracting for leasehold improvements and lease administration, among other services, are each performed from an owner’s perspective. Full communication with the property owner or asset manager is a priority to ensure that decisions are made with all necessary input and facts.
As an example of the quality of ZELL’s performance as a retail center manager, on two occasions, ZELL was chosen as the retail manager of the year by PMRealty Advisors, Inc., a national asset management firm. Additionally, ZELL Commercial Real Estate Services was selected as the winner in the Small Commercial Real Estate Industry Affiliate Classification by Valley Partnership.
As retail center specialists, the entire staff at ZELL has been trained in the various aspects of shopping center management and five members of the management team hold professional industry designations. Our emphasis on retail projects is based upon our theory that we can offer the highest quality of service to our clients and to their properties because our organization has the depth, experience and knowledge in one chosen field.
The property management services which ZELL would typically provide on a shopping center:
A. Collect rentals and other charges from tenants and parcel owners. Deposit funds in the bank account set up solely for the Property. Based on ZELL’s banking relationship, few, if any, bank charges incurred by clients.
B. Inspect property four times per month. Additional visits on an as needed basis in addition to supervisory inspections.
C. Bill rentals and reimbursable charges to tenants and parcel owners.
D. Handle of all tenant questions, maintenance, collection and administrative issues.
E. Coordinate all repairs, leasehold improvements and maintenance through contract labor and establish preventative maintenance programs where appropriate.
F. Enforcement of leases and CC&Rs. Confer with and retain legal counsel when necessary and approved by the property owner.
G. Report insurance claims to the insurance agent for the Property and to the property owner.
H. Review, approve and pay all appropriate bills for the Property.
I. Provide 24-hour answering service. Property manager assigned to the Property will typically be called, unless off-duty, in which event, another experienced property manager will handle the call.
J. Coordinate and document assignment of lease transactions.
K. Prepare annual budget for income, expense and capital categories.
L. Prepare a monthly accounting report to be generated on YARDI Voyager software system. Electronic and/or hard copies of the reports sent by the 20th of each month for the prior month’s activities. Each report to be accompanied by a narrative Property Status Report outlining Property’s activities of the month, as well as a bank reconciliation.
M. Collection of insurance certificates from each tenant.
N. Establish criteria, obtain bids from qualified, insured, licensed contractors to perform work on the buildings, common area or leasehold improvements and oversee the work being performed. Contractors/Vendors must provide certificates of insurance naming property owner and ZELL as additional insureds.
O. Review tenant sign drawings and leasehold improvement plans.
P. Obtain Gross Sales reports from tenants required to report and calculate any percentage rent which may be due.
Q. Retain on property owner’s behalf, a real estate tax assessment appeal consultant to review annual assessments and advise if appeal is warranted. Consultant typically compensated through a contingency fee agreement.
R. Provide the lender with financial reports on the Property’s operations.
S. Prepare annual reconciliation of NNN charges for each tenant.
LEASE RENEWALS, EXTENSIONS AND EXPANSIONS
Property manager will handle existing tenant lease transactions, however, depending upon the tenant or issues involved, a leasing agent or Alan Zell may become the primary point of contact. Property manager will communicate with the leasing agent as to current market conditions and to keep the leasing agent aware of tenants which may not be extending their lease or which may be struggling.
A. Determine expiration and option to renew exercise dates.
B. Whenever possible, personally meet with the tenant whose lease is being negotiated to determine their specific needs and objectives.
C. Discuss issues and proposed rates and terms with property owner and with Alan Zell and then prepare a detailed full written proposal to send to the tenant.
D. Negotiate terms and conditions of the transaction with the tenant, coordinating the status and seeking input and guidance from the property owner and Alan Zell.
E. Prepare necessary lease amendment documents and submit to property owner for approval prior to sending to Tenant for review and signature.