Denholtz Associates is celebrating its 65th anniversary this year. But, in some ways, the firm is just getting warmed up. The firm has made serious investments to expand its portfolio and modernize their business. Since adopting VTS, the company has realized an increase in efficiency and NER.
Denholtz Associates, a privately held, fully integrated real estate development, investment, and management company based out of New Jersey, is celebrating its 65th anniversary this year. But, in some ways, the firm is just getting warmed up.
“We believe it’s a great time to be in commercial real estate,” said Steve Cassidy, President of Denholtz Associates. The firm, which invests in multi-tenant office, industrial, and flex properties in New Jersey and Florida, has been expanding its portfolio aggressively over the past few years.
“We greatly value the commitments we have to our tenants, our lenders, and our investors,” said Steve. “And about three years ago, we decided it was time to expand our portfolio and modernize how we manage those relationships and responsibilities.”
The team began by creating a new investment platform where investors could get all their information online and in real-time. The response was very positive. But, then “it became very obvious that we had not fixed the sales cycle for our asset management process,” said Steve. “The revenue engine of our company was now being left to the old ways of doing things, which is completely inefficient.”
Steve continued, “We were getting very frustrated about the inefficiency between our team and our third-party leasing teams. It’s very hard to be aligned with a group of people that you don’t see on a regular basis.” He added, “trying to communicate NER to those folks was extremely frustrating.”
“We knew we needed to find a solution to this problem,” said Steve. And then they learned about VTS. “The platform seemed like it was a match for what we needed.”
The Denholtz team signed up for VTS Landlord Standard and began onboarding its portfolio.
“Since VTS, the accountability of our third-party leasing teams can't be overstated,” said Steve. “The teams now have the ability to understand our targets, our business practices, our net effective rents. And, in real-time, we’re able to see what they're doing, whether they're having showings, and what stage of any lease transaction that they might be in.”
This alignment has not only yielded “an incredible increase in efficiency,” the Denholtz team has also seen an increase in NER. “Since utilizing VTS, our net effective rents on average have gone up over 10 percent,” said Steve.
He continued, “Our business is entirely profitable based upon how quickly we can put new tenants into space and how quickly we can secure renewals from existing tenants. VTS helps us with that, and that transparency works in multiple ways for us being able to know from a cash flow basis.”