Managing Commercial Real Estate Risks

Owning and managing commercial real estate properties comes with its own set of risks to the physical property. While sometimes these risks are unavoidable, they can be reduced when you know how best to guard yourself against common financial pitfalls. 

Protecting your commercial property investment is important for long-term rewards. It is also best to understand and deploy the most effective ways to manage the risk of losing money altogether. You’re not alone in seeking the best preventative solutions for the commercial real estate investment you own.

What are some of the risks that may impact your property values? Here are just a few of the most common.

  • Vandalism
  • Theft
  • Fire damage
  • Water damage from flooding
  • Termite / pest infestation
  • Severe weather storm destruction
  • Neglect
  • Property damage 
  • Repairs done wrong

While some of these occurrences may be completely out of your control to prevent from happening, there are measures you can take to ensure your property is protected and secured against the potential financial loss from such risks. 

Think Ahead and Plan Carefully 

It is important not to get too busy with other responsibilities and take for granted the non-emergency routine you are in. Too often, when things happen that cause financial loss, there was an opportunity to reduce this risk before it happened. So, take time to think of all the ways your commercial real estate property might be at risk of financial loss and make a plan to guard against it in advance.

Is your property a safe and secure location? If it could use improvements, consider implementing stronger security measures. You could add deadbolts, reinforced shatter-proof window glass, good entryway lighting, and a secure access entrance.

Preventing your property values from dropping or costly repairs with the right type of insurance policy is a must. You’ll need to do an up-to-date assessment of where you stand in property inventory. Accurate information will keep you from being underinsured or over insured for when you need insurance to cover damages incurred.

Guarding against natural disasters

Extreme weather conditions put many commercial buildings at risk each year. Whether it’s wildfires, earthquakes, flooding, tornadoes, or anything else that might strike your property, you can plan to mitigate these potential damages. The previously stated information on insurance policies is important when thinking of ways to protect against natural disasters. 

Many property owners invest in building materials that help guard against damage while also getting the right insurance coverage. Look at your current coverage and see if anything on there is not covered that you previously thought was covered by your property insurance. It is better to be prepared with knowing exactly where you stand with insurance coverage than to be surprised after disaster strikes.

Screen your commercial tenants carefully

Lengthy background checks on your prospective commercial tenants not only benefit you and your property but also shows your tenants their safety and security matters. Both tenant and landlord can benefit when careful consideration is made with each potential business space. 

Plaza Companies is the Premier Choice of Commercial Real Estate

Plaza Companies is a full-service real estate firm specializing in leasing, management, construction, and development of some of the most innovative commercial real estate projects in Arizona. 

Plaza Companies is successfully competitive in the commercial real estate space. Remaining compliant with all accessibility needs is a top priority along with all other legal obligations. Our firm specializes in staying connected and conscientious to all emerging trends and laws.

Contact us today to learn more about leasing the right space or anything else we offer!


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Whether you are looking to us for management, leasing or development services, we can help you find the perfect space. With over 40 years of experience, you can trust Plaza Companies to assist you with your real estate needs.

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