If you're a business leader, navigating a commercial real estate project can feel like stepping into a maze of deadlines, lease terms, and property regulations. The right project manager (PM) can make all the difference in managing these complexities, ensuring your goals as a tenant are met while avoiding delays or unexpected costs. Here's the question: How confident are you that the project manager you're hiring is truly suited to represent your interests?
Here are five common pitfalls to avoid when hiring your next PM:
1. Don't Ignore a Lack of Industry or Business-Specific Experience
If your PM has a strong track record in construction but little experience working with businesses like yours, that's a big issue. A PM who understands the unique challenges in your industry and what might cause inefficiency on a day-to-day basis knows how to advocate for your specific needs. Without industry-specific experience, they may not know what questions to ask, leading to costly oversights.
2. Don't Ignore Poor Communication Skills
Clear communication is essential for project managers to manage multiple vendors and moving pieces. A PM who doesn't actively keep you in the loop leaves room for confusion and delays. Look for a candidate who can translate construction jargon, prioritize your needs, and effectively communicate those needs clearly to all parties.
3. Don't Skip Asking the Hypotheticals
Unique issues can arise in any project; issues may include lease restrictions, tenant improvement adjustments, or unforeseen landlord requirements. A strong PM stays calm under pressure and can problem-solve with a business-first mindset. During interviews, introduce scenarios specific to potential challenges and see how creatively they handle them. A PM who can proactively navigate unforeseen hurdles is the ideal fit.
4. Don't Underestimate the Importance of Organizational Skills
A commercial real estate project often means managing multiple contractors, tight timelines, and budget constraints. A well-organized PM keeps all these aspects running smoothly, so ask about their systems for tracking progress, timelines, and tenant-specific milestones. An organized PM ensures everything—from build-out schedules to final walkthroughs—is handled with your business's interests at the forefront.
5. Don't Undervalue Advocacy
Commercial real estate or tenant improvement projects often involve several vendors, each with their own tasks and responsibilities. You need a PM who understands and prioritizes your business needs and can align all vendors with your vision. You're trusting your PM to execute your vision within the constraints of your budget, so a PM who can advocate for your interests keeps your project focused and productive.
In Summary
Hiring the right project manager isn't just about ticking boxes on a resume. For businesses, it's about finding someone who can advocate for your unique needs, manage landlord relationships, and ensure your project's success. By avoiding these common mistakes, you'll increase your chances of finding a PM who can confidently take your business's project from start to finish.
Frequently Asked Questions:
1. How early should we engage a project manager for a commercial real estate project?
Ideally, a project manager should be involved at the earliest planning stages. The sooner a PM is on board, the better they can align timelines, budgets, and team members. Early involvement allows them to anticipate challenges, coordinate stakeholders, and provide critical insights into zoning, budgeting, and site logistics, which can be invaluable in shaping a smooth project trajectory.
2. What questions should we ask references when evaluating a project manager?
When checking references, go beyond surface-level questions. Ask about the PM's problem-solving approach, communication style, and how well they manage unforeseen issues. Inquire about their adaptability and ability to lead effectively under pressure. These specifics can reveal how well the PM's skills align with your project's needs.
3. How can we measure a project manager's success after hiring them?
Evaluate the PM's effectiveness by assessing key metrics such as adherence to the project timeline, budget management, and stakeholder satisfaction. Additionally, pay attention to their communication efficiency, issue resolution speed, and the overall project team's morale and alignment. These factors provide a well-rounded view of their impact on your project's success.
