The overlooked asset in commercial real estate: A rooftop perspective

By Kyle A. Nurminen, Total Roofing Systems.

Commercial real estate investments' focus has shifted from durable, long-lasting roofing solutions to quicker, cost-cutting measures. Understand how these decisions echo throughout the industry.

The current landscape of commercial real estate investments reflects a trend that is detrimental to long-term asset value — the oversight of roof system quality. Over the past two decades, the focus has shifted from durable, long-lasting roofing solutions to cost-cutting measures that compromise the longevity of roof systems. The repercussions of these decisions echo throughout the industry, affecting property owners, investors and the overall market.

Traditionally, investors sought premium assets, aiming for maximum return on their investments. However, this pursuit often led to neglect in understanding the critical role of proper roofing in maintaining an asset's value. As a result, assets changed hands multiple times within their first decade, often facing makeshift, short-term solutions to roof issues. These temporary fixes only exacerbated problems, creating dire circumstances for future property owners.

The disconnect between investors and the practical management of property assets, including roofs, has created a systemic issue. Investment firms often lack on-the-ground understanding, leading to superficial solutions and a focus solely on short-term gains. This approach, however, undermines the true potential of these investments.

The shift required is a paradigm change in perceiving roofing as an asset that demands comprehensive management. When investors, or the firms managing their assets, recognize the pivotal role of roof quality in overall asset value, a fundamental change in approach becomes possible. By allocating increased funds towards comprehensive and proactive roof management, the long-term benefits significantly outweigh the initial investment.

The integration of expert knowledge, early evaluation and proactive maintenance elevates the quality of assets, ensuring that they truly deserve the label of "Premium Assets." Moreover, it secures higher lease rates and more profitable turnovers, solidifying a reputation for providing quality investments.

It's time to acknowledge that effective management of roof systems is not a burden but a crucial aspect of real estate investment. By prioritizing proper roof care, investors can significantly increase their return on investment while offering genuinely valuable assets to the market.