Amid A Tech Tsunami, The Human Role Gains New Importance In Property Management

Increasingly specialized tenant demands, a shifting office culture and the rapid-fire rise of data and technological advances are quickly changing property management practices.

That has made hiring and keeping high-quality managers just as difficult as securing high-quality tenants, panelists said at Bisnow’s Houston Property Management Conference at the Westin Houston Memorial Thursday. Executives say they are working harder than ever to train, retain and educate property managers. 

“At Greystar, we’re having to really expand our benefits to attract and retain the best talent,” said Mack Armstrong, senior managing director for the apartment development and management company.

Greystar implemented policies including extended parental leave, discounted housing for team members and a sabbatical program for longtime employees to aid in this mission, Armstrong said. 

The sweetened benefits deal comes as property managers need ever more specialized and diversified skills to do their jobs effectively.

Houston has the potential to become a life sciences hub, but operating life sciences buildings is “incredibly technical,” Hines Senior Vice President of Management Services Meredith Cress said.

Hines is learning that firsthand after jumping into the life sciences space with Levit Green, a project in the Texas Medical Center whose first phase brought a 265K SF building online last year. The plumbing, mechanical, electrical and exhaust systems for a life sciences building must be tailored to its needs, she said. 

“It's a 300K SF building, and it has the same amount of equipment as a 1M SF office building,” Cress said. “You have to have engineering experts to really understand the ins and outs of operating that equipment.”

Skilled management of life sciences properties is pertinent as Houston looks to become a bigger market for the asset class, she said. Although leasing at Levit Green has been “a little slower than we’d like,” Cress said she is confident it will fill up.

“We’re trying to create that life sciences hub for Houston and draw a lot of the life sciences research tenants here,” Cress said. “We think the city has a lot to offer.” 

Mixed-use is also challenging from a property management perspective, she said. As more of these developments rise, more property managers will have to be cross-trained on different product types, like office and residential, Cress said.

Even standalone developments tend to have retail components along with offices, so managers have to be open to learning skills to handle both, said Kelly Wheeler, senior vice president and director of operations and strategy for Transwestern. 

“Lifelong learners are the successful people in our industry,” Wheeler said.

Cross-training will make managers more marketable to their company and to others throughout their career, Cress said.

Technology, artificial intelligence and data are also becoming increasingly important to the property management field, Wheeler said. 

Greystar, for instance, has a 378-unit property that has just one staffer stationed there full time, Armstrong said. Due to technological advancements that allow for speedy leasing, the property filled up in four and a half months, the fastest lease-up of any property in its portfolio to date, he said. 

The leasing center is off-site, but potential residents can use a program to scan their identification and tour a model unit, Armstrong said. Once the tour is over, they are sent an application that takes three minutes to complete, then a lease that takes six minutes, he said.

“Feedback has been very positive. They love it,” Armstrong said. “It turns out [some residents] don’t want to see our people as much as we think they want to.”

When innovative solutions are implemented, it is important to communicate with the field teams that will be using them, Wheeler said. If they understand why they are doing something, why it is important and how it relates to the environment they are working in, it is more likely to be successful, she said.

Technology allows property managers to collect leads on potential tenants or residents more efficiently than they did before, so they can finally reach all of the people that come in and out of a building in a day, Wheeler said.

But while technology will fundamentally change the way the commercial real estate sector works, it shouldn't be implemented just because it exists.

“Technology is hugely important, but it’s important to be strategic and go thoughtfully,” Wheeler said. 

As much as technology is working its way into management, people are still integral to a company’s success, panelists said.

At Lincoln Property Co., the CEO sends a direct message to everyone in the company at least once a month, which helps them understand goals and the motives behind them, Lincoln Property Co. Vice President of Property Management Michael Kasmiersky said.

The company also rewards property management employees who refer a tenant with a commission, he said.

“Everyone is important as far as getting business for the company, and they should be compensated,” Kasmiersky said. 

Customer experience is powerful to the success of a business, and it dictates whether customers will remain in a building or do business with a company again, CBRE Director of Property Management Janet Shipley said. Property managers are at the forefront of that experience, face-to-face with tenants and prospective tenants. 

A “white glove” approach creates a strong rapport, she said. Technology and enhanced engagement help property managers gain efficiencies and data insights to guide them, Shipley said.  

“It’s our desire to redefine what it means to deliver property management services,” she said.