The role of an owner's rep in commercial real estate

Meeting the expectations of all stakeholders in a corporate facilities project is a complex undertaking, with an equal potential for risk and for reward. Enlightened companies understand the complexities and rely upon the expertise of an owner's representative to manage the process, mitigate risk and ensure success. An owner's rep affords clients access to expertise that might otherwise be unavailable in-house. As an advisor and advocate, she can provide ad hoc services to complement an existing in-house team, or provide more comprehensive services to organizations that lack the resources. The expertise goes beyond budget and schedule management; it may include supporting other key corporate initiatives, such as sustainability and diversity. An owner's rep can provide start to finish support including needs and decision support analyses, evaluation and selection of FF&E, RFP development and response leveling, vendor oversight, relocation management, and post-move issues such as conformance with the lease and requests for reimbursable funds. The client retains focus on the core business, and project minutiae do not overburden staff or distract them from their duties. Most clients don't consider or anticipate the volume of distractions or the level of detail required for successful project execution. Typically an owner's rep manages and orchestrates the efforts of all project team members including the client, designers, architects, engineers, general contractor, vendors and the project managers, as well as ancillary or specialized services. A good owner's rep will provide quantifiable savings through thoughtful design, improved process management, and cost avoidance, more than offsetting the fees paid. When should an owner's rep be considered? The earlier in the process, the better. The opportunity to integrate at an early stage and understand the objectives of the client will maximize the likelihood of a cohesive team who will work toward specific objectives, and achieve the desired outcomes. Seek an ethical and experienced professional who can manage expectations at all levels; someone who exhibits maturity in judgment, is adept at evaluating circumstances holistically, and is able to think strategically. Search for a natural leader whose expertise and attitude earns the respect of the team and who can influence the team members to want to do a better job. Key competencies should include exceptional communication skills, an ability to recognize, anticipate and resolve issues, and the ability to offer creative solutions and mediate disputes. Clients often "don't know what they don't know" and it's easy to underestimate the complexity of managing a multi-million dollar, multi-phase project involving many people and perhaps multiple locations. If it's your job or credibility on the line, no cost compares with the peace of mind and likely cost savings achieved by engaging a partner who can ensure your success. Wendy Schwingel, CCIM, MCR, is a former corporate real estate executive and president of PROPEL Real Estate Resources, New York, N.Y.