Commercial entertainment programs are more popular compared to those institutes facilitated with specific functions according to the principle of “mainstream first, anabranches later”. Commercial entertainment programs usually adjacent to office building property and then integrate into a business zone that has the same requires and professional techniques with present property management client. It is a crucial step for property management business’s development.
A sentimental sense of the market is a decidable feature for an enterprise. To get a maximum profit, you need to be the second one who dares to eat crabs.
Theoretically, the subject of property management serves in many fields, such as residential buildings, office buildings, commercial entertainment programs, schools, hospitals, hotels and restaurants, scientific institutes, stations and harbors, and even some military institutes. The market of property management in Beijing appears to be really prosperous for the government’s official support in policies such as introducing property management into residential zone, constituting regulations of Tendering and Bidding, and promoting the socialization of logistics in various departments. But since the actual presence of property management business in Beijing is kina stuck in certain kinds of properties such as residential buildings, office buildings and so on, it is important to figure out which fields could possibly be property management business’ new market.
1. Analyzed by the business itself
The business of property management in Beijing or even in China is posterior to those in developed countries. No matter what the features of different country or region would be various, we were once on the same level in the view of techniques such as the office building in China which is the typical example of high-tech buildings of commonality. Office buildings are exotic and those first class office buildings in China are either designed by foreigner designers or by the use of external experience for reference. It is true that the hardware of some Chinese office buildings is world-leading class, such as Jinmao Building, Worldtrade Center, Yuanyang Building and Kaichen Plaza which are big-league even in New York, Paris or London. These properties employed the manage module of foreigner office buildings which is advanced among Chinese property management building. But as the business started decades later in China, we have got a lot to learn and improve for the excellent hardware is not enough at all.
Thus, we could see that the development of property management business is restrained to techniques even in technique parks, schools and hospitals that hired professional property management companies for they just output security guards, cleaners other than its profession values. Some experts believe that the variety of property management services means the variety of property management companies that cooperate with client institutes smoothly by presenting relevant service to different programs. For example, hotel management is an individual business other than property management for the property management enterprises are not capable of satisfying hotel customers’ needs. Quality needs the accumulation of experience which may take a really long time.
The most pervading programs in Beijing property management market are residential properties and public office buildings. The expansion to traffic industry, welfare institutes, scientific research institutes is still atelic and non profitable at present. According to the development presence and technologies of property management business, the development trend of this business should follow the principle of “commonalty first, specialty later” and enterprising into mainstream industry, among which a new type of program appears: commercial entertainment programs.
2. Analyzed by the needs of market economy.
Considering its prevalence, Property management business was orientated as a low-profit industry since the first day it had been founded, considering social stability, services provided to residential properties charges even less. But the cost of office buildings’ property management is much higher for it involves more techniques and more sophisticated requirements. Most of the institutes chose to hire a professional company to reduce the cost in the process of logistics socialization. This business develops abided by argues on its cost. It is the competition of finding and keeping elites for every industry including property management business. But how to make reasonable profit to keep this business thrive? The answer lies in the types of different programs. The social significance of property management is significant, for example, in residential programs, property management serves a lot to keep the social stability, in commercial business programs, property management serves as a trigger in economy development. It is important to keep this business prosperous, but how? The answer is commercial entertainment programs.
Commercial entertainment programs could stimulate scattered consumption. It is wise for property management business to find new markets in this expanding consumption requirement. It is property management business’ job to maintain a comfortable environment including keeping the circumstances clean and maintaining the devices and so on, which is exactly the environmental trigger that arouses people’s desire to consume there. And the meantime, consumers tend to enjoy the process of consuming and the circumstances in which they consume. For example, many plazas have founded or hired professional property management companies to maintain their circumstances, such as Dongfang Plaza, Jinyuan Trading, Xindongan Market, and Capital Time Square.
But there are also many commercial blocks with terrible circumstances, such as Xi Dan Tu Shu Building which had been on headline twice for its over-heated and over-cooled environment. So, property management will get more really prosperous in commercial programs.
3. Analyzed by the market
Construction is one of the landmarks in a city’s development, which is the consequence of the development of real estate business. Beijing has been changing for a long time, especially in last couple of years, the increase of high-tech resident zones, office buildings and commercial zones reflects its promising economical development.
At present, the developer of resident zones often chooses to hire property management companies after selling procedure, whereas the owner of office buildings would choose to manage the property themselves or hire a property management company for these buildings could either be sold or leased, but for commercial use, the owner usually choose to manage the property themselves. This is the consequence of non-complete business divide. Like high-tech office buildings need professional centralized management, commercial programs need a long-range view in property managing rather than short term profits achieved by the sacrifice of the environment. For example, WantongXin Shi Jie Plaza is a success example of commercial management but a terrible one of property management which has created considerable profit but lost the value of a property.
4. Several points in commercial programs management
It is too vague to describe the target as commercial programs market for commercial programs varies a lot in types including commercial blocks, big commercial buildings (plazas) and commercial markets, and so does the consuming style which includes retail, terminal consumption and consumption on the spot. Different programs have different characteristics that require different circumstances and facilities. We call it as the diversity of property requirements. It is important for property management business to notice this.
Beijing is a prosperous commercial market that attracted lots investment among which lots of big, comprehensive lofty commercial buildings appeared and have introduced many great fashion stores and beauty stores. Meantime, more and more large retailers swarm into Beijing market and triggered the development of many domestic brands. Large-sized supermarkets are everywhere, so is the specific products market like household appliances, furniture, timbering. The characteristics of commercial market that attracts the customer are the low price and the variety of products.
4.1 the importance of self-management
The most significant characteristic of a commercial property is its high quality. The merchants there regard the business environment a lot and would try to make it better, for example, they would consider the issues of management and make arrangement for the internal traffic, decoration, cleaning, devices management with commercial management. The reason they would do these things is keep the high quality of the property. They should found a professional company to do that, for:
First, it would be easy to control. Commercial buildings does not like office buildings that either leased or not, the merchants there are concerning about every detail and process in that property.
Second, it would be easy to get the information. The most important thing for a good management is the ability to get more information.
Third, it would be easy to prepare internal human resources. People familiar with the property and the business cultures of every merchant is the right staff to do the management job.
Large-sized supermarkets focus more on channels in which retailers make profits basically by mass fluid. In Beijing, large retailers tend to choose the bottom floors of office buildings and use the same property management methods as the whole property. Some supermarkets have their own buildings which often lie in between urban field and suburb, the target customers would be citizens around them or families with cars. Enterprises got certain competitive potential usually have their own management systems, either use the way in office building or self management.
In commercial market, the first competitive power is the price which follows the variety of the product, the environment usually does not matter too much. They choose self management over other managing methods usually for cost control.
4.2 things needed for self management
Self management needs the managing cost on human resource, material resource and financial resource, and certain additional cost maybe as well.
Those costs are inevitable and hard to reduce for an individual program affiliated to commercial management. Those who found a professional property management company would know that an enterprise would either develop or fall back, but how to get the profits to support the development? A subsidiary enterprise’s survival needs its parent enterprise’s support, the only question is support for what, the self development that involves various businesses for just the development on a specific business? Since the market needs a more detailed division on professions, we’d better choose to support the latter one.
Besides, self management needs lots of attention which means the enterprise need to run or manage its commercial business and property management in a higher level and handle a lot of administrative issues. Property management is not just safe guarding or environment cleaning, it includes lots of issues that need experience and professional techniques which could easily cost lost if not handling well, including the maintenance of elevators and air conditioners, the control of various energies, the development of potential resources, the administrative issues on real estate business, the stock of consumer goods and so on.
4.3 things property management companies could do
it is not easy for property management companies to get the credit from clients and make its own place in the market. Most enterprises would choose to found their own companies or hire professional property management companies. Some of them which manage their business by leasing stalls to merchants might recruit property management companies to do the work, which would do no good for properties’ commercial future. In accordance, the property management enterprise should:
a. improve their ability in business compete in accordance with the commercial program market. They should at least get the information on clients’ managing procedures, including stock time and channels, temporary store, distributary of customers and goods, internal decorations.
b. Clarify different fields. Only understand these main procedures could they figure out what they might present to their clients.
c. Minimize the cost. It is the kernel element for business competes.
d. Work hard on market expanding. It is important when the basic work has been taken care.
4.4 other things they could do
in the last, I would like to discuss the expectable perspective of commercial programs in accordance with the general characteristics of its requirements on management job.
a. The property management for commercial programs must be based on safety. Commercial programs are often multi-floored, highly facilitated and fully staffed, which is hard to manage. Especially those in tour spots and commercial axes which have great population fluid have got the high potential of various dangers. It is hard to keep the customer’s property and life, and the so is fire control. Safety is the most crucial part of commercial property management.
b. To keep the circumstances clean is a basic part in commercial property management. A highly staffed space requires a higher quality of air conditioning. In spite, the administrative department should constitute relevant regulations and control measures on products’ packing, decoration garbage and so on.
c. Commercial programs need a different managing module for they open longer than other properties. Property management companies should try to find a module that minimizes the affect to merchants and customers caused by management jobs like maintenance or repairing.
This is only a plain thought on property management business’ expanding to commercial program market that leaves many more detailed and practical issues which could be solved or discussed in practice uninvolved in this paper. Property management companies should keep on finding and solving these issues, thus we will definitely make this business get more and more sophisticated and prosperous.