Commercial

The two teams behind a well-run commercial building

If you own a commercial building, you may have heard property managers and facilities managers talked about as if they do the same job. They overlap, but each looks after something a little different.

Property management looks after the building as an investment. That includes leasing and lease administration, collecting rent, answering tenants' questions and complaints, and keeping the budget in order so the owner can see how the asset is doing. The property manager is usually the person both owners and tenants call first.

Facilities management looks after the building itself, day to day. It covers the systems that keep a building comfortable and safe, such as air conditioning, lighting and fire protection, along with the contractors who service them and the bigger upgrades that come round every so often. At McConnell Bourn Commercial the two teams work side by side, so a tenant's repair request and the owner's budget are looked at together.

The property manager is usually the person both owners and tenants call first.

Outgoings are a good example of the paperwork involved. Under the NSW Retail Leases Act, a landlord must give a retail tenant an estimate of outgoings at least one month before each accounting period starts, and the tenant is only liable for the outgoings listed in the disclosure statement given before the lease began. Keeping those figures accurate, and explaining them when a tenant asks, usually sits with the property manager.

Much of that work happens quietly, on a schedule. Planned servicing keeps equipment running and gives an owner a budget they can predict, while a breakdown arrives in its own time and can cost more to sort out in a hurry.

The right mix depends on the building, and it can change as the building ages.

Some systems come with rules of their own. A building in NSW with a cooling tower or warm-water system needs a risk management plan, and in the City of Sydney area, for example, the system is registered with the City, the water is tested every month for Legionella, and an independent audit goes in every year.

Fire safety shows how closely the two fit. In NSW, the owner of a building with essential fire safety measures must provide an annual fire safety statement, whether the building is tenanted or vacant. An accredited practitioner inspects each measure, from smoke alarms and extinguishers to emergency lighting and exit signs, and the statement is lodged within three months of the inspection. A copy of the statement and the current fire safety schedule must also be displayed in the building and sent to Fire and Rescue NSW. The inspection is facilities work, and the budget and record-keeping often sit with property management.

Tenants feel the difference most when something goes wrong. An air conditioner that fails on a hot afternoon is a facilities problem for the tenant and a cost question for the owner. When both teams work from the same information, the repair tends to happen sooner and the owner hears about it before the invoice arrives.

Not every building needs both at full strength. A small retail building might need a property manager and a reliable contractor on call, while a larger complex with plant rooms and many tenants benefits from a dedicated facilities team. The right mix depends on the building, and it can change as the building ages.

We know Sydney's
commercial market. Long-term value
starts with a clear plan.

Every commercial property has its own condition, tenants and priorities, so we don't use a one-size-fits-all approach. Whether you're weighing up a lease, a sale or an appraisal, we take time to understand what you need before recommending a strategy.

The two teams behind a well-run commercial building

If you own a commercial building, you may have heard property managers and facilities managers talked about as if they do the same job. They overlap, but each looks after something a little different.

We know Sydney's commercial market. Long-term value starts with a clear plan.

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We know Sydney's
commercial market. Long-term value
starts with a clear plan.