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The Challenge of Real Estate Management

Managing real estate for a nonprofit is an important and challenging proposition.  Real estate is usually one of the largest line items in an organization’s operation budget.  To truly optimize real estate management in a nonprofit corporation, it’s necessary to maximize efficiency and effectiveness (pdf) in the context of the business plan.

Managing an office move can seem like a daunting task.  The Nonprofit Office Tool Kit (pdf) will provide you with resources and tips for both conducting an office move and setting up your nonprofit office.   Before you move into your new space, be sure to have an emergency plan (pdf) in place regardless of wither or not your landlord provided one.

If you are considering a major facility renovation, review the lessons learned (pdf) by others who have embarked on a major capital projects and have been gracious enough to impart their wisdom.    Every kind of nonprofit program presents  its own unique set of risks.  Health center projects in particular should consider our tips for managing facility development risks (pdf).

Have extra space in your office?

Before you make any quick decisions about how to move forward with your extra space, it is critical to consider the situation carefully.   Addressing the excess space challenge (pdf) should be a thought-intensive process that involves conducting a situation analysis, developing a strategy and creating an implementation plan.  Once you’ve reached a decision about how to rent your space, post a listing on OrgSpaces.org to reach your target audience of nonprofit tenants.

To achieve greater efficiency and synergy, many local nonprofits have opted for co-location in a single building or site. Often a new nonprofit organization is formed or an existing one is chosen to manage the co-location and its tenants. This complex relationship between nonprofits gives rise to unique advantages and challenges,  and various legal and administrative approaches outlined in this presentation (pdf) can make co-location beneficial to all involved.

Responsible real estate management is a crucial part of any business operation, and nonprofits are no exception. Regardless, the primary focus of nonprofit organizations is helping people; most nonprofit landlords are not equipped to manage the ever-changing funding climate as it relates to the funds allocated for the real estate cost of a program.  If you find yourself renting to a tenant that is defaulting on payments, don’t jump to action just yet. Be sure to evaluate the situation thoroughly before you Negotiate or Litigate (pdf).

Nonprofits are eligible for a reduction on the property tax.  Find out if you qualify.

Buildings with nonprofit uses are often eligible for a reduction on their property tax bill.  The California Legislature has the authority to exempt property (1) used exclusively for religious, hospital or charitable purposes, and (2) owned or held in trust by nonprofit organizations operating for those purposes.  This exemption is know as the Welfare Exemption (pdf). Contact your local tax assessors office to see if your building is eligible.

Thinking about creating a healthy office environment?

Nonprofit organizations often operate in older buildings.  In creating a healthy office for your program, there are many environmental issues to take into account. As a manager of space, you can manage your indoor air quality, ensure that your building’s asbestos levels are being safely monitored, and make janitorial procedures good for your staff and the environment through green cleaning.

Green cleaning is defined as a cleaning practice that protects health without harming the environment and is becoming standard practice for building managers. It focuses on reducing waste, reusing materials and reinventing the way we operate our buildings.  Learn how to green your janitorial procedures (pdf) to start thinking about how your building can be healthier for everyone.

Managing the Indoor Air Quality (IAQ) depends on the actions of everyone in the building.  An Office Building Occupant’s Guide to IAQ (pdf) will inform you about the factors that contribute to the IAQ and comfort problems. Asbestos is one of the most dangerous IAQ hazards, and the person responsible for maintenance and repairs in any building is also responsible for Managing Asbestos (pdf).