Successful Vendor Negotiations Save Client More Than $80,000 Annually on Property Management Fees
June 17, 2024 (HOUSTON) –
OVERVIEW
Lee & Associates – Houston provides commercial real estate owners and investors with a broad scope of integrated services, including property management. Responsibilities of Property Managers include overseeing the day-to-day operations of the properties they manage, ensuring that the assets and tenant relationships are well maintained. Additionally, Property Managers are responsible for negotiating service contracts on behalf of clients. Property Managers must have excellent communication and negotiation skills, as they are responsible for ensuring that the terms of the contract are fair and beneficial for their clients. Overall, negotiating service contracts is a critical aspect of a property manager’s role and requires careful attention to detail and effective communication skills.
ACTION
Lee & Associates – Houston has served as the Property Manager for 16430 Park Ten Place in west Houston since February 2023 when the building’s Director of Facilities parted ways with its ownership group. Upon his departure, concerns were raised about the cost of services, starting with janitorial services.
The firm employed a thorough approach to service renegotiation. Beginning with a comprehensive Request for Proposal (RFP), the team outlined the scope, expectations, and proposal process. Leveraging senior management and colleagues, reputable vendors were identified and then invited to assess the scope and bid on the RFP. Building relationships with each bidder, the team streamlined options to the top contenders. Through strategic negotiation and a meticulous evaluation process bids were refined and optimized, ensuring the best possible pricing and terms for the client.
Once bid comparisons were presented, the ownership group had a better understanding of possible savings and current market offerings. The ownership entity made their selections and Lee & Associates – Houston implemented the changes and began to demonstrate the savings.
RESULTS
Through Lee & Associates’ due diligence several service contracts were renegotiated including the building food locker systems, janitorial, window washing and façade painting. By securing better terms and pricing for these services, the team was able to reduce the building’s operating costs and increase its profitability, saving more than $80,000 in annual operating costs.
Today, the building has a new Director of Facilities, but Lee & Associates continues to represent and negotiate on its behalf. Most recently, the team reduced their cabling fees by 50%, more than $10,000 less than any other alternatives.
The team’s success in renegotiating several contracts and delivering positive, consistent results is a great example of how Lee & Associates – Houston can add value to their clients’ investments.
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About Lee & Associates – Houston
Lee & Associates – Houston is a fully-integrated commercial real estate company with unrivaled market knowledge and an unwavering commitment to integrity and excellence. Our business-minded brokers specialize in office, industrial, and land real estate investments. Lee & Associates – Houston is part of a nationwide network of brokers in more than 80 offices in North America. The brokerage is uniquely qualified to support our client’s real estate needs in Houston, across Texas, and throughout the US. For more information, visit lee-associates.com/houston.