Signature Associates Revenue and Competitors

At Signature Associates, our property managers are focusing on finding more efficient operating procedures to offset declining revenues from leases. The opportunities that a large portfolio of properties presents are being bundled to increase service without increasing costs. We are leveraging our large volume of purchasing power to lower costs of service contracts including snow removal, salting, lawn service, waste removal and janitorial services and supplies. All major service contracts, such as janitorial, maintenance and energy, are being re-examined and re-bid. Even the language of the service contracts are being carefully examined to determine if there are ways to squeeze a few more cents out of the cost of each contract. Further, lower vacancy rates may be an opportunity to see if real estate taxes can be appealed. The acts of September 11th continue to remain a top priority for both owners and tenants. A basic knee-jerk reaction has been to create a perception of increased security through such visible enhancements as additional security personnel. At Signature Associates, we are not only focusing on preventing the wrong people from getting into the buildings, but also on finding more efficient ways to get people out of the buildings. The use of ambient lighting, additional fire suppression equipment, first aid kits and oxygen support equipment is being analyzed for placement in stairwells. Upgraded surveillance devices are being installed to monitor entrances to buildings and parking structures. The use of wireless technology is being utilized in areas such as basements and HVAC structures to monitor areas that were not previously under surveillance. More buildings are restricting direct access and are now controlled through the use of guards or access card systems. On the other hand, what works for office and industrial environments may not work for retail buildings. Obviously, retail centers do not want to restrict the flow of traffic into the centers or make customers hesitant about entering properties. The retail environment has increased security through the use of camera surveillance and contracted professional security staffs. In addition, retail shopping centers present a unique challenge in that retail leases are tied to sales and many tenants pay percentage rents. Therefore, with the slow down in the economy, as well as retail sales, property income levels have fallen. Property managers now find themselves more involved in helping tenants find ways to meet their sales goals. Managers are doing everything from extending shopping hours to focusing on rent collections and keeping an eye on delinquent tenants. Keeping a retail center looking full has become a priority and many managers are welcoming temporary tenants, particularly during the holiday season, to create a positive look as well as generate additional income. Signature Associates is receiving more requests from property owners who self-manage to assist them in reviewing expenses and looking for opportunities to increase efficiency. As a result of these studies, more owners are beginning to realize the need for professional management. Property management companies who train their employees and invest in cutting edge technology are able to meet the challenges of a constantly changing marketplace. Property managers need the skills to understand the relationship between the market, owners and tenants and the impact on the bottom line.