A recent industry report revealed that hiring and retaining qualified staff was cited as the most critical challenge by property managers, followed by boosting revenue and dealing with unexpected maintenance costs. Nearly half of property managers in the survey said reducing operating costs is one of their biggest hurdles. The good news is that for each major challenge you face, there are practical strategies you can implement to turn obstacles into opportunities. 

Keeping Tenants Happy and Boosting Retention

Losing a major tenant can deal a serious blow to your property’s financial health – and replacing that tenant is often far more costly than keeping them. In fact, replacing a single commercial tenant can cost up to three times more than retaining an existing one, once you factor in lost rent, marketing vacant space, broker commissions, and tenant improvement allowances. It can take as long as two years to recoup the income lost when a tenant leaves. These figures underscore why keeping your current tenants satisfied is so critical. High office vacancy rates nationwide (hovering around record highs in many markets) only add pressure, since attracting new tenants is tougher in a soft market. Simply put, it’s far cheaper to invest in tenant satisfaction and renewal than to constantly chase new leases.

Stellar tenant retention comes down to one thing: tenant satisfaction. You are the bridge between your tenants and the property owner’s goals. Yet one study found that 69% of commercial tenants had never even had a direct conversation with their property manager. This lack of communication can breed dissatisfaction. Reach out and build relationships by doing things like scheduling regular check-in meetings with your tenants to ask how things are going. Be responsive to maintenance requests. Even small gestures like a quick follow-up after a repair show tenants you care about their experience.

Another key to retention is aligning your property’s amenities with modern tenant expectations. Today’s office and life science tenants, in particular, expect more than the status quo. According to a survey of 1,200 office space decision-makers, 78% of tenants want property owners or managers to invest beyond the status quo in health and wellness amenities and programs that improve the on-site experience. In practice, this could mean upgrading fitness facilities, adding healthy food options, improving cleaning protocols, or creating collaborative common areas that make the workplace more inviting. 

Retail property managers might focus on amenities that drive foot traffic, while industrial tenants appreciate features like improved lighting, or on-site services that make their operations smoother. By investing strategically in amenities and demonstrating a commitment to tenant well-being, you not only make your property more attractive – you also give tenants fewer reasons to leave.

Make tenant satisfaction a top priority in your weekly routine. You can start by creating a tenant experience calendar. Plan out consistent touchpoints such as check-in calls, tenant appreciation events, or feedback surveys. If you manage a large portfolio, consider tenant experience platforms to gather feedback. Use that feedback to drive improvements. 

Another actionable step is to review your tenant retention plan: do you reach out well in advance of lease expirations with renewal discussions? Proactively addressing concerns 6-12 months before a lease ends can improve renewal rates as these tactics show tenants that you value them, making them more likely to stay.

Managing Building Operations Efficiently

From HVAC systems and elevators to landscaping and security, the to-do list never ends. One of the biggest challenges here is dealing with aging buildings and infrastructure. Consider that nearly half of all commercial buildings in the U.S. were constructed before 1980, meaning a huge portion of today’s properties are 40+ years old. Many of these older buildings have core systems (like boilers, chillers, electrical panels) well past their prime. As systems age, unexpected breakdowns become more frequent and maintenance costs rise. 

In fact, studies have found that for buildings aged 25-50 years, annual maintenance work orders average about $2.35 per square foot, compared to only $1.40 for buildings under 10 years old. Older properties also carry hefty deferred maintenance backlogs – one report noted that buildings 50 years or older had an average backlog of $160 per square foot, versus just $20 for buildings under 10 years. An older property can easily cost double to maintain compared to a newer one, which squeezes your budget and demands careful planning.

Even newer properties are not immune to maintenance challenges. Unforeseen issues can throw off your entire budget and schedule. In the earlier poll of property managers, unexpected maintenance costs ranked as a top-three challenge, right behind staffing and revenue concerns. Reactive, emergency repairs tend to be far more expensive than routine upkeep. In fact, industry data shows that every $1 of maintenance deferred could quadruple to $4 in capital repair costs down the line. And simply running equipment to failure can cost up to ten times as much as having regular preventative maintenance programs in place. 

These numbers make a compelling case for staying on top of maintenance proactively. Yet we understand it’s easier said than done – you are likely juggling multiple sites and daily tenant demands, making it hard to find time for long-term planning. Still, making maintenance management more efficient is one area where you can reap huge benefits in both cost savings and peace of mind.

Shift your approach from reactive “firefighting” to proactive maintenance wherever possible. Start by developing a preventive maintenance schedule for all major building equipment – HVAC servicing, elevator inspections, roof check-ups, fire safety system tests, etc. Many property managers find success in conducting a quarterly property audit: walk the building and note any developing issues while they’re minor. Catching a small crack or leak early can prevent costly damage later. 

Also, be sure to budget for capital improvements. No system lasts forever, so work with ownership to map out capital projects (like replacing an old chiller or repaving a parking lot) a few years in advance. This way you can spread out the costs and avoid too many big expenses hitting at once. Many local utilities and governments offer rebates for energy-efficient upgrades – taking advantage of these programs can offset costs for things like LED lighting retrofits or high-efficiency boilers, which reduce operating expenses long term. 

Lastly, if you manage multiple properties, compare notes on maintenance costs and vendors across sites. You might find that one building’s contractor could offer a better deal portfolio-wide, or that bulk purchasing of supplies can trim expenses. By being proactive and strategic about maintenance, you’ll extend the life of your building assets, lower your long-run costs, and prevent those dreaded midnight emergency calls. Both you and your tenants will benefit from a more reliable, smoothly operated property.

Controlling Costs and Budget Pressures

Cost management is a constant challenge in commercial property management, and lately it has become even more acute. You’re likely feeling the squeeze from multiple directions: rising utility costs, higher insurance premiums, increasing property taxes, and inflation driving up the price of everything from cleaning supplies to contractor labor. If you’re overseeing an office or retail portfolio, you may also be contending with revenue pressure from tenants downsizing or negotiating lower rents during renewals. 

All these factors mean that as a property manager you have to do more with the same (or even less) budget. It’s no wonder 45% of property managers in one survey said reducing operating costs is a significant challenge for them. Operating a building is expensive, and every dollar you save on expenses is a dollar added to the property’s net operating income – a metric your owners certainly care about.

A major component of cost control is improving operational efficiency. Inefficiencies can hide in plain sight in the day-to-day operations of a property. Perhaps heating or cooling is running when it’s not needed, or lights are on overnight in empty spaces. Maybe you’re paying overtime to security or maintenance staff because of outdated processes, or you have overlapping service contracts that could be consolidated. Taking a fine-tooth comb to your operating budget can often reveal 5-10% in potential savings through smarter management. 

For example, some multifamily and office operators have cut costs by investing in smart building systems – like intelligent thermostats, motion sensors for lighting, or sub-metering utilities – to curb waste. Others reduce expenses by renegotiating vendor contracts regularly instead of letting them auto-renew at higher rates.

Start with a budget review meeting – gather data on your last 6-12 months of operating expenses and see where the money is going. Look for any line-item that has consistently increased or seems high compared to industry benchmarks. Utilities are a common culprit; if you haven’t already, consider scheduling an energy audit through your utility provider (many offer this service free or at low cost). 

The audit can highlight simple fixes, such as adjusting HVAC schedules or sealing air leaks, that reduce energy bills. Next, evaluate your service contracts (janitorial, landscaping, security, etc.). Are you getting multiple bids when contracts come up for renewal? Competitive bidding often reveals vendors willing to do the same work for less. You could also negotiate multi-property contracts if you manage several sites – vendors may give a volume discount.

Another actionable tip is to implement cost tracking tools. If, say, maintenance supply costs have been creeping up, you might bulk-buy frequently used items annually for a discount. If water bills are spiking, it might justify installing low-flow fixtures. Sometimes small investments lead to big savings: installing motion-sensor lights in restrooms and storage areas, for example, ensures lights aren’t left on all day. 

Engage your team in cost-saving efforts – make it a game or a goal, such as challenging your engineers to reduce electricity usage by X% this quarter, with an incentive if achieved. By fostering a culture of efficiency and regularly scrutinizing your expenses, you can keep costs in check even as external economic pressures continue. This not only helps your bottom line but also demonstrates to owners that you’re a proactive, fiscally savvy manager – a true asset to their investment.

Adapting to Technology and Data Demands

New technologies like commercial property management software and tenant mobile apps promise to streamline operations. But mastering these tools can feel overwhelming. Many property managers still find themselves juggling spreadsheets, and siloed systems. If you’ve ever had to rummage through file cabinets for a tenant’s lease or rely on Bob the building engineer’s memory of when the last pump inspection was, you know the pain points of limited tech. 

The challenge now is that as buildings get “smarter,” owners and tenants expect you to leverage data for better performance. Data collection itself has become a critical need, for example to meet new sustainability reporting requirements. In a recent outlook, experts noted that data collection may be one of the biggest challenges for real estate stakeholders given the looming penalties for inconsistent carbon emissions measurements. From energy usage data to occupancy analytics, the pressure is on property teams to gather and act on more information than ever.

Adopting new technology can also be challenging from a people and process perspective. You might be introducing a new tenant portal, a work order system, or an access control app but if neither you nor your tenants are comfortable using it, the tool won’t deliver its full value. There’s often a learning curve and an adjustment period where workflows need to change. 

Additionally, with many proptech solutions on the market, it’s easy to end up with systems that don’t talk to each other. The key challenge is figuring out which technologies truly address your pain points and how to implement them smoothly so that your team and tenants actually benefit. Remember, technology is a means to an end, the end being more efficient operations, lower costs, and happier tenants. 

Begin with a technology audit of your current operations. List out the tools and processes you use for key tasks: How do you track leases? How do tenants submit service requests? How do you monitor building systems like HVAC or security? Identifying gaps or pain points will clarify what you need. Maybe work orders are falling through the cracks because they come in via email, a simple online ticket system could solve that. Or you find you’re spending hours compiling monthly reports for owners, a reporting dashboard could automate much of that. 

Prioritize solutions that target your biggest time-wasters or sources of error. When selecting any new software or system, ease of use should be a top criterion. Look for solutions that have intuitive interfaces and good support/training, so you and your team can get up to speed quickly.

Implement new technology in stages if possible. For example, if you decide to adopt building maintenance software, start by inputting just one building first as a pilot. Work out the kinks, get comfortable, then expand usage. Always train your staff (and yourself!) thoroughly as many tech implementations falter simply because people weren’t fully trained well. Invite feedback from the team on new tools and be ready to adjust workflows. 

Leverage the data that tech provides. If your new system shows that, say, 30% of tenant requests are for temperature adjustments, maybe it’s time to recalibrate the HVAC zoning. If access logs show low usage of a certain entrance, you might reduce lighting or adjust security patrols in that area to save costs. 

In essence, use technology to work smarter, not harder. Over time, the right tech tools will free you from mundane tasks so you can focus on higher-value aspects of your job, such as improving tenant relations and strategic planning. Embracing technology step by step will make your job easier in the long run and keep you ahead of the curve in an increasingly digital industry.

Navigating Sustainability and Compliance Requirements

It may feel like everyday you’re encountering new energy efficiency standards, green building certifications, and local laws that mandate reductions in carbon emissions or water usage. 

This adds a layer of complexity to your role – you’re not only managing day-to-day operations but also tracking your building’s environmental performance and ensuring compliance with regulations. For example, major cities like New York have introduced strict emissions limits for buildings, and many jurisdictions require benchmarking energy usage annually. This can feel daunting, especially if your property is older and wasn’t designed with sustainability in mind. 

Data collection around energy usage without proper sub-meters or monitoring systems can make it tough to get accurate numbers. Yet, compliance demands it. Beyond regulations, there’s market pressure: tenants and investors are increasingly favoring buildings with strong sustainability credentials. A growing number of corporate tenants have their own ESG (Environmental, Social, Governance) goals and prefer buildings that can help meet them. So if you manage, say, a life science facility or an office, having EV charging stations, recycling programs, or LEED certification can actually be a selling point to attract or retain tenants.

You don’t have to become an overnight expert in sustainability. Start with small, concrete steps. A great first move is to conduct an energy audit. Many utility companies, as well as organizations like Energy Star, provide resources to evaluate your building’s performance. The audit might reveal, for example, that an older office property has inefficient lighting. Use these insights to create a short list of “low-hanging fruit” projects. This could include swapping out old lighting for LED bulbs, installing smart thermostats or timers, fixing any air leaks around windows and doors, or adding motion sensors so lights aren’t on 24/7. Such projects often pay for themselves through energy savings within a couple of years.

Next, prioritize bigger sustainability upgrades based on impact and feasibility. If your property is due for equipment replacement (say the boiler is nearing end-of-life), opt for the high-efficiency model – the incremental cost may be offset by incentives or future savings. Research if there are any grants, rebates, or financing programs that can support energy projects; these can reduce the financial barrier. 

Finally, get familiar with the compliance timeline in your region. Mark on your calendar any key dates. Working backwards from those deadlines allows you to plan projects in stages rather than rushing at the last minute. Even if you manage an industrial warehouse or other property type where sustainability hasn’t been a focus historically, changes are coming,  warehouses might soon be expected to add solar panels or EV chargers as trucking electrifies, for instance. By staying proactive and informed, you’ll ensure your properties remain compliant and appealing. Sustainability is rapidly becoming part of the property manager’s job description, and embracing it will help future-proof your career.

Attracting and Retaining Skilled Staff

The final major challenge we’ll discuss hits close to home: retaining a strong property management team. You’re not just managing buildings, you’re managing people, from your in-house staff to the contractors and vendors who support your properties. Lately, many commercial property management firms are facing a talent crunch. The industry is experiencing a generational shift: in the next decade, about 40% of the U.S. commercial real estate workforce will reach retirement age. That means a huge number of seasoned property managers, engineers, and maintenance technicians will be exiting the field. At the same time, companies are finding it difficult to attract new talent to fill those shoes. Fewer young professionals have traditionally seen property management as a career destination, and those who do enter the field often have different expectations around work-life balance and technology. 

This issue was highlighted by the president of BOMA (Building Owners and Managers Association) in 2025 when she identified “attracting, developing, and retaining the workforce” as the number-one long-term challenge for the commercial real estate industry. She even warned that if the industry continues with “dated” management practices, “we will not have workers to fill all of our needs”. In day-to-day terms, you might already feel this challenge: perhaps you’ve struggled to hire a reliable maintenance supervisor, or you’re dealing with higher turnover on your team, which means extra work falls on your shoulders.

Appealing to the next generation of property management professionals requires a shift in mindset. The newer cohort of workers highly values things like career development, modern tools, and a supportive work culture. They’ve grown up with technology and expect the workplace to leverage it. They also tend to seek meaning in their work and appreciation for a job well done. The challenge for you as a leader is to provide an environment where your team feels valued and can grow. After all, people are the backbone of property operations; even the best tech or strategy won’t work without a capable, motivated team executing it. So focusing on your team’s needs is not just good-hearted – it’s a smart operational strategy to ensure your properties are well-managed.

Invest in training for your staff. The commercial real estate field is broad, and there are always new skills to learn. Budget permitting, send team members to industry workshops or encourage them to obtain certifications (for example, BOMI or IREM courses for property management, or OSHA safety training for facility personnel). Demonstrating that you’re willing to invest in their growth goes a long way in building loyalty. You can also implement a mentorship approach: pair less experienced staff with seasoned pros (perhaps you can mentor a junior manager in training) so knowledge is passed on and people feel supported in learning.

In hiring, cast a wider net and highlight what makes property management rewarding. Many up-and-coming professionals want a career where they can make an impact. You can appeal to this by explaining how a property manager “wears many hats” – solving problems, improving communities, and now even contributing to sustainability and innovation in buildings. Partner with local trade schools, community colleges, or real estate programs to offer internships or speak about careers in property management. Sometimes just increasing awareness can attract fresh talent who hadn’t considered this path. 

You play a vital role in the success of each property you oversee – often acting as the glue that holds together owners’ goals and tenants’ needs. The challenges you face are significant, but with the confident yet caring approach of a true professional, you can turn these challenges into opportunities. At Cove, we partner with commercial property managers like you to simplify the day-to-day and keep tenants happy. From maintenance to tenant experience, our platform is built to support your team and your bottom line.