Much Does Commercial Property Management Cost?

Whether you are a landlord, a tenant, or business owner that also owns and occupies their own building(s), one of the most important questions you’ll have to ask relates to the hiring of commercial property management companies.

The value of hiring a commercial property management company is fairly straightforward. By carrying out the variety of tasks involved in commercial property ownership, such as repairs and maintenance, capital expenditure planning, supervision of tenant improvements, related project management duties, rent collection, and bookkeeping/accounting services, government remittances, etc., business owners or property investors can focus their energies elsewhere, in ways that can bring them greater value

But how much does commercial property management cost?

Below we’ll discuss the price of various property management fees, describe the value of hiring property management firms in greater detail, and provide you with the tools necessary to make the cost/benefit calculations for your specific situation.

Property Management Fees: Worth the Cost?

Commercial property management fees will always vary according to a number of different variables, including:


– The location of your commercial property

-The asset type of your commercial property (office, retail, industrial, multi-family)

-The size and condition of the building(s)

-The number of tenants and the nature of their businesses

-The services included in the commercial property management agreement

-Other elements


That said, generally speaking a commercial property manager will charge between 4 and 6% of the commercial property’s gross rent. In some cases, paying the management fee can be the best decision a property owner can make.

So are the property management fees worth it? While it will vary by situation, many commercial property owners clearly think the fees are worthwhile. 

To get a better idea of the kind of value property management firms can bring, let’s delve a little deeper into what property management companies do, and what those property management fees cover.

What Does a Property Management Company Do?

A commercial property management company can offer any number of services, and they will vary by company. However, most commonly you’ll see a property management firm provide help with:

On-Call Maintenance

This service can cover most general repairs, but also can also include handling any calls from tenants, if applicable. 

Project Management Services

Whenever the need arises for work or repairs that are more complex than on-call maintenance (e.g. roofing, building system repairs or replacement, paving, renovations) property management companies can take the load off your shoulders by identifying the scope of work, obtaining bids, hiring the right contractor(s), and overseeing the project to completion.

Contract Award Management

Aside from the items listed above, a property management company can also help deal with some of the following common contracts associated with commercial building upkeep, although it will depend on the company. These contracts can include:


-Snow removal and landscaping  

-HVAC repairs & maintenance

-Cleaning/Janitorial services 

-Garbage removal/bin services

-Elevator servicing

-Security/Fire protection/monitoring

-Pest control

-Building Insurance


Established property management companies have purchasing power to help them achieve efficiencies on contracts awarded. Hiring an established property management company allows a building owner to tap into their property manager’s network of vendors and benefit accordingly.

Budgeting and Accounting 

Budgeting services do more than help keep track of building, project, and operational costs. Along with providing quarterly statements and annual reviews, this service can include collecting rent, paying invoices, utilities, insurance, preparing and paying government remittances, and even property taxes.

Tenant Relations

This will involve lease negotiations, lease or rental renewals, and other matters that are crucial to maintaining the maximum value of your property over time.

Property Assessments

In some cases, some property management companies can ensure your property is not over-assessed or over-taxed by working in collaboration with property tax consultants. They can also advise on the commercial rents being charged to your clients, ensuring they remain reasonable and competitive.

Most owners more than recover the costs incurred for a property management firm as most commercial leases allow the landlord to charge an admin fee on all operating costs and property taxes paid on the property.  This “admin fee” which is recovered from the tenants generally exceeds the management fee.

Property Management Firms in Ottawa

For those in the National Capital Region, Ottawa property managers like Merkburn Holdings can help commercial property owners focus their attention on their core business, and leave the day-to-day details to the pros.  

Merkburn Holdings offers a comprehensive set of property management services that are flexible enough to meet the needs of any client, and often can be customized to help with anything from a single commercial office to larger mixed use or industrial buildings. 

Best of all, Merkburn is able to provide peace of mind, simplifying the complexities involved in commercial property ownership, allowing clients to free up their most valuable resource: their time.

If you’re a landlord, a real estate investor, or a business that owns its own property, consider partnering with Merkburn Holdings to help you get the most out of your property. A good property manager can be worth their weight in gold, saving you time, money, and stress. 

Contact us today

Ⓒ 2021 - All Rights Are Reserved