PROBLEMS AND PROSPECTS MANAGEMENT OF COMMERCIAL PROPERTY
(A CASE STUDY OF SHOPPING CENTER GARKI AREA 1)
ABSTRACT
Property management generally
relates to the overall supervision and direction of interest in landed
property with the aim of securing optimum return. This study intend to
examine the role of property managers which often include preparation of
detailed budget for day to day operation, reasonable estimate of
expenses for service charge, repairs and maintenance as well as
administration of will. Due to effective competition, a marketing plan
and advertising budget is quite important for regular periodic advert,
with intent of minimizing vacancy rates. This project will endeavour to
showcase challenge faced by property manager and recommend ways for
improvements.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It is a broad knowledge that one of the
feature of property management which distinguishes it from other
investment portfolio is a serious requirement to be managed. In recent
times, this peculiar management function has continuously undergo
tremendous transformation brought about by the agglomeration of estates
and massive involvement in property by a number of land dealers agencies
and financial institutions.
Property management essentially concern
with the decision to developed, maintain, improve or to replace building
in their setting in order to satisfy or provide physical frame work for
satisfying human needs. It is therefore concerned with investment
decision and the economic use of resources. Property management is a
broad field of practice in Estate Surveyor profession, whether public or
private property, the objective are the same. It is only the method
that may be different depending on the peculiarities of the properties
management and the client whose interest on the management function are
meant to serve. Concerned urban properties the role of Estate Surveying
profession is immense and more visible especially in commercial
properties. Commercial properties has a great impact on the life style
in general, it is viewed in it’s wider socio-economic context as it
serve as a work place for many families, for shop, stores, and also for
recreation activities, it can generate income and provide a storage
place for man’s valuable possession. The surveyor should be contacted to
relate cost options to achieving desired optimum returns in the
property. The best investment obtained in any commercial properties are
obtained from those properties located in central position where values
are maintained, central positioned properties have usually been regarded
as very secure investment with satisfactory records of capital
appreciation and a few management difficulties.
In performing his functions, the
management surveyor encounters problem in the management of any type of
property. This dissertation will look into the management strategies
adopted in commercial properties, its problems, prospect of commercial
properties and to suggest possible solution to those problems. In
conclusion, there is need for urgent need to identify the management
problems of properties “unless there is of attitude as to scope,
functionality, style and mode of our property construction and eventual
management, that we need not only to build what is management. Nigeria
will be making history and destroying it immediately thereafter “A
country that goes on building structure but fails to effectively manage
them, burns it’s wealth and resources in a furnace it is a country with
pride.
1.2 STATEMENT OF PROBLEM
In management of commercial property,
the property manager will be facing with problem of rent default which
is as a result of non compliance with tenancy agreement, poor tenant
selection, poor management strategies and many others. In view of this,
tremendous effort have been made by researchers to curtail these
problems. These research are Akanni (1980) pg 7 and David Cleveland and
William R. King pg 10.
1.3 BACKGROUND OF THE STUDY AREA
Garki is in the southwest corner of the
city having the central district to the north. The district subdivided
into unit called “Area” Garki uses distinctive naming convention of
“Area” to refer to part of Garki. These designated as Area 1 to 11.
Garki is presently the principal business district of Abuja. Numerous
building of interest are in this area some of them include general post
office, Abuja internantion conference center along the busy Herbert
Macaulay way, Nicon Luxury Hotel (formally known as Abuja Sofitel Hotel
and meridian) Agura hotel and old federal secretariat complex building
(Area 1) a new five star hotel How Won Suit Abuja is in Garki.
1.4 AIM AND OBJECTIVE OF THE STUDY
This research is aim to access the
management of commercial property in area 1 shopping centre Garki Abuja.
In other to achieve the above stated aim, the following objectives will
be pursued:
- To examine the concept of management and maintenance.
- To identify the various problems and prospects peculiar to the management of the shopping center.
- To identify and appraise the management and maintenance strategies adopted in commercial properties.
- To analysis and provide an insight into the management problems facing the shopping centre and suggest ways of improving the standard of the property.
To guide the researcher in the investigation, the researcher thus seeks answers to the following question:
- What is the management of commercial properties in term of maintenance?
- What are various problems and prospects peculiar to the management of shopping centre?
- What are the management and maintenance strategies adopted in commercial properties?
- What are the solution to solve the problem facing shopping centre and ways of improving the standard?
This research work is significance to the following:
Government for decision making, student, practicing estate surveyors and valuers, investors, researcher.
I was carried out to provide a frame
work for efficient property management and in turn ensure adequate
returns on the investment with particular references to their security
and regularity. It will also help the management surveyor to adopt some
strategies in determining in determining the condition of the building
their service and advising on maintenance, attraction and improvement.
In addition, the study will enable the
management surveyor on how the rudiment of service charge administration
on commercial properties and properties of alike nature beside it will
enable the management surveyor to know the strategies to be adopted in
collection of services charge and it’s significance in effective
property management.
1.7 SCOPE AND LIMITATION
The scope of the study is basically on
the management of commercial properties and it limits itself to just one
of such commercial properties in Abuja (i.e. shopping centre Area 1,
Garki Abuja).
The research deals with the management
strategies of the complex, problems and prospects of management in the
complex as well as the management services and service charge
administration provided in the shopping centre.
1.8 DEFINITION OF OPERATIONAL TERMS - Commercial Property: This refers to properties mainly developed and used for maximizing rental income / profit. They are built to provide accommodation for business accommodations e.g. shops, offices, show rooms etc.
- Management: Is the system of directing, organizing and controlling of available human skills and financial resources to achieve a stated goal.
- Maintenance: This is a kind of work carryout to maintain / restore landed properties in a good, healthy and habitable condition and to enhance its rental and capital values.
- Property: In relation to real estate, is a legal entity denoting the character and quality of nigh that an individual has or process in a property to claim ownership of it.
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