CHICAGO—With apologies to William Shakespeare, “'To sell or not to sell?' That is the question.” For REITs) contemplating strategies for their properties in a volatile economy and an improving commercial real estate market, the dilemma requires thoughtful approaches and preparation. While property managers aren't the ones who ultimately make that call, they still play a vital role in the decision-making process, according to Jones Lang LaSalle's Property Management experts. That's because their management of assets can put owners in the best-possible position to pursue one course or the other.

“As REIT owners debate the pros and cons of selling or holding an asset, there are many ways in which a property management team can partner to provide critical and concrete recommendations for the road ahead,” said Dan Pufunt, president of property management for JLL. “Overall, a thorough property management program should allow an owner to ultimately feel comfortable making either choice.”

REITs continue to be well positioned to trade and operate commercial real estate. In the first seven months of the year, the trusts raised $49.3 billion in the public marketplace, compared to $40.9 billion for the same period in 2012. At this year's mid-point, the prices of publicly traded equity REITs had surged 165% from their lows in 2009.

Outlined below are three ways in which property managers can help REITs and other owners sell their properties, followed by three tips for how managers can enable owners to hold their assets.

Tips to Help Sell an Asset

Gain Good Intelligence on Tenants (and make sure your documentation is complete.“Working to create healthy relationships with tenants is a given,” said Kurt Keaton, Florida market director for Jones Lang LaSalle's Property and Asset Management. “But it should go deeper.”

By establishing open communication with a tenant, a property manager can get the low-down on a tenant's plans for renewal, expansion or contraction. That's valuable information that can make a prospective buyer more comfortable with purchasing a property, Keaton added.

Additionally, managers should make sure that documents establishing when a tenant took control of its space and what its base year is are in order. “You want to make sure that documentation is in order so a tenant doesn't hold up the sale,” Keaton said.

Have a Detailed Capital Improvement Plan in Place. Replacing equipment at responsible intervals will not only help a building's value, but a thorough plan—one that gives a prospective buyer a good idea of when it would have to replace a roof or HVAC, for example—could increase that prospective buyer's confidence in pursuing the asset.

Responsibly Reduce Operating Expenses. Throughout its management of a commercial building, a good property manager will keep an eagle eye on operating expenses and be aggressive about reducing them when possible to increase a facility's net operating income (NOI) and thus its property value, according to Keaton. “Every dollar we save has an exponential impact on the value of a sale,” he said.

Tips to Help Hold an Asset

Be Aggressive with Maintenance. There comes a time when major building equipment has to be replaced, but a diligent preventative maintenance program can maximize the lifespan of items such as large fans, motors, pumps and chillers, Pufunt said. “Equipment replacement is such a huge cost, and spending some money now can save you a lot over the long-term,” he said.

Invest in Sustainability. Environmentally friendly devices can have a major impact on a building's operating costs. Items like automatic faucets and toilet-flush valves can reduce water consumption, while installing variable-frequency drives on motors can slash electricity usage. Meanwhile, recycling programs in commercial buildings not only make tenants feel better about their landlords, but decrease hauling expenses, Nowak said.

And while they may not fall exactly under the sustainability umbrella, measures such as installing automated parking equipment and reducing the frequency of office cleanings, per the agreement of tenants, can reduce employee hours and operating expenses.

Focus on Keeping Tenants in Place. “By the time you pay tenant improvement and commission costs, it's expensive to re-tenant a space,” Pufunt said. Keeping a tenant in its space, therefore, can provide a powerful benefit to a building's bottom line.

Establish positive relationships with tenants by conducting regular meetings with them. By fostering an atmosphere of trust and open communication, property managers can gain a clear sense of tenants' expectations and vice-versa. Such an environment should make tenants inclined to extend their leases, according to Pufunt. “Walk their spaces with them, get to know them, listen to their problems and show your appreciation,” he added. “It will pay off.”