Commercial Property Management Companies: Pros and Cons for Chicago Investors

After investing in commercial real estate, investors have two possible options: self-manage or utilize the services of a commercial property management company.

While there may be some initial savings with a self-management approach, the demands of commercial property management, time commitment, and general horror stories out there of difficult retail tenants, property damage, and maintenance emergencies are enough to instill fear in even seasoned investors. 

That's why forward-thinking real estate investors put their property in the trusted hands of commercial building managers who know the business and aren't afraid to take on demanding tasks.

Therefore, this blog looks at the benefits and drawbacks of hiring property managers for commercial investments. Plus, we'll highlight an experienced property manager delivering real value to owners in the Chicago area.

The Benefits of Utilizing Commercial Property Management Services

In commercial real estate, investors depend on property managers to preserve asset value and protect income streams by maintaining strong, professional relationships with tenants. Property managers act as an extension of the investor’s portfolio strategy, ensuring tenant needs are addressed quickly through open communication, responsive service, and proactive problem-solving. As the primary point of contact for tenants, property managers handle maintenance requests, lease administration, and operational issues with a focus on minimizing disruption and maximizing tenant satisfaction. Regular property inspections, tenant engagement initiatives, and ongoing performance evaluations help prevent small issues from becoming costly problems. By delivering a consistently positive tenant experience and managing properties with precision, property managers help investors drive tenant retention, reduce vacancy risk, and strengthen the long-term value of their commercial assets.

Here aer some ways an experienced management company can help maximize your returns: 

1. Experience and Specialization 

Due to the volume of experience, the best Chicago-area commercial property managers can conduct a full range of administrative and managerial tasks that can otherwise be time-consuming and stressful for property investors. 

This is especially true if the management group focuses on a particular area or zone and keeps current with commercial real estate news and trends in the Chicago area.  

Some examples of experienced services for managing buildings include: 

• Professional and in-depth tenant reviews to avoid legal and financial stress further down the road 

• Lease administration, including contract compliance and drafting

• Maintenance area management, repairs, and recommendations for value-add upgrades

• Insurance obligations

• Reliable rent collection 

• Emergency maintenance requests

• Regulatory and legal compliance 

• Accounting, reporting, and forecasting 

This is a partial list of services, and meeting with a management team to discuss the scope of their services is one of the best ways to ensure you have everything you need for a successful commercial property investment. 

2. Effective Marketing

Investing in commercial property doesn't necessarily mean tenants will find your property, sign a lease, and automatically guarantee success. Property managers have the networks and expertise to effectively advertise properties to the target market and attract a pool of prospective tenants or businesses for your properties. 

Here are a number of tactics an experienced commercial management firm can use to help market your property:

3. Maintain Mutually-Beneficial Tenant Relations

Property managers play a critical role in maintaining strong relationships with commercial tenants by fostering open communication, providing responsive service, and proactively addressing tenant needs. They serve as the primary point of contact for tenants, ensuring that maintenance requests, lease concerns, and operational issues are handled quickly and professionally.

Regular check-ins, property inspections, and tenant satisfaction surveys help property managers anticipate and resolve potential challenges before they escalate. By creating a positive tenant experience—through well-maintained facilities, prompt issue resolution, and clear lease management—property managers help boost tenant retention, minimize vacancy rates, and build long-term partnerships that benefit both the tenants and property owners.

4. Gain More Free Time

Commercial property management is time-consuming, as commercial buildings require strict maintenance and ongoing support. 

With a property manager, you can free up your day for work or hobbies, build your portfolio, and enjoy life with additional passive income. That means no dealing with phone calls from commercial tenants or following up on late rent! 

The Cons of Commercial Property Management 

Of course, property management's most significant con is that you generally pay for the service as a percentage of the gross income each month. Some of the additional drawbacks commercial investors should consider include the following. 

1. You Are Hands-Off

This is both a pro and a con depending on your point of view and what you're looking to get out of the experience. When hiring a commercial property management firm, you will have far less control over the daily management of the asset, taking a much more passive approach to ownership. 

Investors interested in learning more about the business through experience and exercising their discretion will be limited in how much control they can exercise. Additionally, there is no personal connection with tenants as you are one step removed. 

2. Communication Setbacks

Communication is the foundation of success in property investing. However, without a solid working relationship with your property management team, there can be significant issues related to communication. You could feel "in the dark" as to precisely what is happening within the property.

This often happens when residential management companies start to expand to managing commercial properties, or when a property management company is generally inexperienced with commercial property owners' needs. Look for a partner who communicates transparently and offers: 

• Monthly or quarterly financial reporting (income, expenses, rent rolls, variances)
• Owner portals for real-time access to reports and property documents
• Regular strategy calls or meetings to review performance and goals
• Customizable reporting dashboards with key KPIs
• Leasing and renewal updates for new, renewed, or ending leases
• Maintenance and capital improvement summaries
• Annual budget planning sessions for operating and capital expenses
• Mid-month email updates for important interim news
• Market analysis reports on rent comps and occupancy trends
• Emergency notifications for urgent issues
• Tenant feedback summaries to highlight satisfaction and risks
• Disposition or refinance support communications when needed

Differences in Quality and Reputation

Just as there are successful, experienced property managers, there are companies with a less-than-desirable track record and reputation.

Research is fundamental when determining the right property management group for your needs. Some tips for contracting the right property manager include:   

• Asking for referrals 

• Doing a background check of licenses and professional accreditation

• Determining if they work in a specific locality or are general (local knowledge and experience are generally preferred) 

• Ensuring they offer 24/7 service 

• Checking with previous or current clients of the service 

Trying to save money on a low-cost management option can leave you without the experience and resources you need from the best experts to maximize your commercial property investment!

Brian Properties Property Management Serves Chicago Investors

With unparalleled knowledge of the real estate Chicago suburbs offer and next-level client service since 1973, we serve real estate investors in need of contracting a commercial space in the Chicago area and offer ongoing commercial properties management to optimize the value of the asset. 

We offer a full range of services, always advocating for and acting on the best needs of our clients. 

Invest for Success With Commercial Property Management 

Weighing the pros and cons of property management against your personal investment goals, requirements, and property type is a necessary step in the investment journey. To discover how property management can help the administration and management of your commercial asset, reach out to the Brian Properties team today!