Is the market facing a downturn?

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1 month 2 days ago #646572 by Donald Montgomery
🤔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?

 
  • 1 month 2 days ago #646572 by Donald Montgomery