🤔Is the market facing a downturn? Regardless of where the market stands, protecting Net Operating Income (NOI) is critical.
The goal isn’t just to cut costs—it’s to optimize for resilience.
Here’s how:
🔑 Prioritize tenant retention with smart lease restructuring (e.g., rent relief in exchange for longer commitments).
🔧 Eliminate non-essential expenses through aggressive audits—without compromising tenant satisfaction.
🤝 Renegotiate vendor contracts using real-time market insights to secure better terms.
⚙️ Invest in automation to drive long-term efficiency and cost savings.
đź’ˇ Unlock new revenue streams with ancillary income sources like rooftop leases or premium amenities.
đź’° Strengthen cash reserves to absorb vacancies and unexpected financial shocks.
📊 Leverage cost segregation to accelerate depreciation, improving cash flow for reinvestment.
Overall, CRE is not in a full downturn, but recovery is uneven across different asset classes.
In challenging times, resilience comes from strategic optimization—not reactive cuts.
For high-value properties ($10MM+), cost segregation can be a game-changer, unlocking significant tax savings to fund tenant incentives or upgrades.
What strategies are you using to protect NOI?
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