Raising the Standard: A CRE Manager's Creed
EXECUTIVE INSIGHT
If you're managing a portfolio, leading a property team, or supporting high-value tenants - average is the most expensive thing to be.
The mathematics of mediocrity are brutal:
Average response times = tenant attrition and reputation damage
Average vendor performance = inflated costs, recurring failures, and operational chaos
Average team expectations = high turnover, stagnant growth, and missed opportunities
Average building presentation = lost prospects and below-market rents
In commercial real estate, mediocrity doesn't just erode trust - it quietly destroys asset value, one compromised standard at a time.
The best managers don't accept what's "typical" in the market. They define what's possible in their properties. They understand that excellence is a competitive strategy, not a luxury.
THE COMPOUNDING COST OF "GOOD ENOUGH"
Mediocrity creates cascading failures that compound over time, turning small compromises into major financial losses.
Financial Impact Analysis:
Vendor Performance Degradation:
"Good enough" HVAC maintenance delays preventive service → energy cost increase → tenant complaints → emergency repairs costing 3x normal rates → ownership questions your competence
Annual impact: Avoidable costs
Tenant Experience Erosion:
"Good enough" service response leads to just 2 non-renewals annually → lost revenue over 5 years → extended vacancy periods → below-market re-leasing rates
Portfolio impact: Avoidable turnover costs and rental income loss
Market Positioning Decline:
"Good enough" building presentation loses 1 high-value prospect → vacancy extends 6+ months → carrying costs accumulate → forced to accept below-market terms
Opportunity cost: $$$
Strategic Consequences:
Reputation Damage: Poor standards create market perception that persists long after improvements are made. Brokers stop showing your properties. Tenants question renewal terms.
Team Degradation: High performers leave for organizations with higher standards. Remaining staff adopt the lowest common denominator as acceptable performance.
Owner Confidence Erosion: Principals lose faith in management capability, leading to increased scrutiny, reduced autonomy, and potential contract loss.
Competitive Disadvantage: While you're accepting mediocrity, competitors are setting new market standards for service, presentation, and operational excellence.
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LEADERSHIP THROUGH STANDARD SETTING
In commercial real estate, your title doesn't define your leadership, your standards do. Leadership is the willingness to define excellence when others accept adequacy.
The Leadership Standard Framework:
See Around Corners: Anticipate where current standards will lead and intervene before failure occurs. Don't wait for tenant complaints to address vendor performance. Don't wait for lease expirations to improve tenant experience.
Go First: Hold yourself accountable to higher standards before expecting others to follow. Model the communication, preparation, and follow-through you want to see from your team.
Broadcast Clarity: Communicate "how we operate here" with specificity and consistency. Ambiguous expectations create inconsistent results.
Enforce Consistently: Standards without enforcement aren't standards, they're suggestions. Consistent enforcement creates predictable excellence.
Cultural Leadership Principles:
Excellence as Identity: Make high standards part of organizational identity, not just operational procedure. "This is who we are" is more powerful than "this is what we do."
Continuous Elevation: Regularly review and raise standards as capabilities improve. What was excellent last year may be average this year.
Recognition and Accountability: Celebrate those who exceed standards and address those who consistently fall short. Both actions reinforce the culture.
STRATEGIC AREAS FOR STANDARD ELEVATION
1. Vendor Performance Excellence
Current Standard: Vendors complete work on time and within budget
Elevated Standard: Vendors anticipate needs, provide improvement recommendations, and deliver measurable value beyond contracted scope
Implementation Framework:
Quarterly Performance Scorecards: Response time, quality ratings, proactive recommendations, cost efficiency
Value-Add Requirements: Vendors must identify 1+ improvement opportunities per quarter
Continuous Improvement Partnerships: Regular strategy sessions focused on optimization, not just problem-solving
Performance-Based Contracting: Tie compensation to measurable outcomes, not just task completion
2. Tenant Experience Leadership
Current Standard: Respond to tenant requests promptly and resolve issues
Elevated Standard: Anticipate tenant needs, exceed service expectations, and create advocacy relationships
Implementation Framework:
Proactive Communication: Monthly check-ins with key tenants to identify emerging needs
Service Recovery Excellence: Turn every issue into an opportunity to demonstrate exceptional service
Experience Measurement: Regular satisfaction surveys with specific action plans for improvement
Tenant Advisory Programs: Formal feedback mechanisms that influence property improvements
3. Team Performance Culture
Current Standard: Team members complete assigned tasks and meet basic expectations
Elevated Standard: Team members think strategically, take ownership of outcomes, and continuously develop their capabilities
Implementation Framework:
Professional Development Plans: Individual growth strategies with measurable objectives
Decision-Making Authority: Empower team members to solve problems without constant oversight
Innovation Expectations: Each team member identifies one process improvement quarterly
Cross-Functional Competency: Develop backup capabilities and broader skill sets across the team
4. Property Presentation Excellence
Current Standard: Property is clean, functional, and presentable for scheduled tours
Elevated Standard: Property creates immediate positive impression and reinforces premium positioning at all times
Implementation Framework:
Daily Excellence Checklist: Specific standards for lighting, landscaping, common areas, and curb appeal
Secret Shopper Programs: Regular unannounced assessments from tenant and prospect perspectives
Competitive Benchmarking: Regular comparison to best-in-class properties in your market
Continuous Enhancement: Ongoing improvements based on market feedback and competitive analysis
5. Operational Efficiency Standards
Current Standard: Systems function adequately and issues are resolved reactively
Elevated Standard: Systems optimize for efficiency, sustainability, and predictive maintenance
Implementation Framework:
Energy Performance Optimization: Regular analysis and improvement of energy efficiency metrics
Predictive Maintenance Programs: Data-driven maintenance that prevents failures rather than reacting to them
Technology Integration: Systematic adoption of tools that improve operational efficiency
Sustainability Leadership: Environmental performance that creates competitive advantage and cost savings
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AI-POWERED STANDARD SETTING
Strategic Analysis Prompts:
Standard Assessment: "Act as a high-performing property manager. Analyze current performance in [specific area]. Identify where we're accepting 'good enough' instead of pursuing excellence. Define clear KPIs and a 60-day plan to elevate performance standards."
Competitive Benchmarking: "Compare our current standards in [tenant service/vendor management/property presentation] to best-in-class CRE operations. Identify specific gaps and recommend implementation strategies for reaching top-tier performance."
Cultural Development: "Help me create a culture of excellence in my property management team. Develop specific communication strategies, accountability measures, and recognition programs that reinforce high standards."
Implementation Support:
Documentation Development: Use AI to create comprehensive SOPs, training materials, and performance measurement tools that support elevated standards.
Communication Templates: Develop consistent messaging for vendors, tenants, and team members that reinforces your commitment to excellence.
Performance Tracking: Create automated reporting systems that measure progress against elevated standards and identify areas for continued improvement.
Interested in trying out the AI tool I designed for Commercial Real Estate professionals? Check out CRE Pro on ChatGPT.
TRANSFORMATION EXAMPLES
Vendor Excellence Transformation:
Before: Property management team accepted inconsistent landscaping service with occasional complaints and reactive responses.
After: Implemented comprehensive vendor scorecard system with monthly site inspections, photographic documentation, and performance improvement requirements.
Results: 40% improvement in tenant satisfaction scores, 25% reduction in landscaping costs through efficiency gains, and recognition from ownership for proactive management.
Tenant Experience Revolution:
Before: Reactive service approach with standard response times and basic issue resolution.
After: Proactive tenant relationship program with monthly check-ins, anticipatory service delivery, and experience measurement systems.
Results: 98% tenant retention rate, 15% premium to market rents, and referral-driven leasing that reduced marketing costs.
Team Performance Culture Shift:
Before: Task-oriented team members who completed assignments but showed limited initiative or strategic thinking.
After: Empowerment program with expanded decision-making authority, professional development plans, and innovation expectations.
Results: Two internal promotions, 50% reduction in management oversight requirements, and team-generated cost savings.
BUILDING SUSTAINABLE EXCELLENCE CULTURE
Leadership Modeling:
Personal Standards: Demonstrate the preparation, communication, and follow-through you expect from others. Your daily actions set the tone for organizational expectations.
Transparent Accountability: Share your own goals, progress, and challenges. Show that high standards apply to leadership as well as team members.
Continuous Learning: Invest in your own development and share insights with your team. Model the growth mindset you want to create.
System Development:
Written Standards: Document specific expectations for all key performance areas. Ambiguity enables mediocrity — clarity enables excellence.
Regular Calibration: Schedule quarterly reviews of standards and performance to ensure continued relevance and challenge appropriate levels.
Success Documentation: Capture and share examples of excellence to create clear models for others to follow.
Cultural Reinforcement:
Recognition Programs: Celebrate specific examples of standards being exceeded, not just basic task completion.
Improvement Opportunities: Address performance gaps quickly and directly, with clear expectations for improvement.
Team Development: Invest in capabilities that enable higher performance rather than accepting current limitations.
MEASUREMENT AND OPTIMIZATION
Excellence Metrics:
Leading Indicators:
Proactive vs. reactive work ratios
Vendor performance improvement trends
Team initiative and innovation instances
Tenant satisfaction trajectory
Lagging Indicators:
Property performance vs. market benchmarks
Tenant retention and renewal rates
Cost efficiency improvements
Revenue enhancement achievements
Continuous Improvement Process:
Monthly Standards Review: Assess performance against established standards and identify adjustment opportunities.
Quarterly Benchmarking: Compare your performance to market leaders and identify new areas for standard elevation.
Annual Strategic Calibration: Realign standards with evolving business objectives and market conditions.
COMPETITIVE ADVANTAGE THROUGH EXCELLENCE
Organizations that consistently maintain elevated standards create multiple competitive advantages:
Market Differentiation: Properties become known for exceptional service and presentation, commanding premium rents and attracting quality tenants.
Operational Efficiency: High standards reduce long-term costs through better vendor performance, lower turnover, and fewer emergency situations.
Talent Attraction: Top performers want to work for organizations with high standards and growth opportunities.
Owner Confidence: Principals trust managers who consistently deliver excellence, leading to expanded responsibilities and better contract terms.
Reputation Value: Market reputation for excellence creates opportunities and referrals that reduce marketing costs and improve deal flow.
CLOSING INSIGHT
Your standards are contagious. People rise or fall to the level of what you consistently model, communicate, and enforce. Excellence is a choice that compounds over time.
The properties, teams, and careers that consistently outperform the market share one common characteristic: They refuse to accept 'good enough' as acceptable.
Every compromise you make today becomes tomorrow's baseline. Every standard you elevate creates competitive advantage that your competitors will struggle to match.
Choose excellence. Define it clearly. Model it consistently. Enforce it fairly. Celebrate it publicly.
That's how CRE leaders differentiate themselves.
EXECUTIVE CHALLENGE
This Week:
Pick one area where you've been accepting "good enough" performance. Define what excellence looks like in specific, measurable terms. Communicate the new standard to all stakeholders.
This Month:
Vendor Performance: Implement performance measurement for your lowest-performing contractor
Tenant Experience: Establish proactive communication rhythm with your top 3 tenants
Team Development: Create individual excellence plans for each team member
Property Presentation: Conduct "secret shopper" assessment and address all identified gaps
This Quarter:
Cultural Integration: Make elevated standards part of your organizational identity
Measurement Systems: Implement tracking for all key performance areas
Recognition Programs: Celebrate and reward excellence consistently
Continuous Improvement: Establish quarterly standard review and elevation process
The Result:
Properties that command premium rents. Teams that attract top talent. Owners who trust your judgment. A reputation that creates opportunities.
That's the compound return on refusing to accept mediocrity.
Interested in trying out the AI tool I designed for Commercial Real Estate professionals? Check out CRE Pro on ChatGPT.
About the Author
Hi, I’m Matt Faupel — Founder of FaupelX and a passionate advocate for unlocking potential in commercial real estate and beyond. Through this newsletter, I share insights, strategies, and tools to help you lead, grow, and stay ahead in a rapidly evolving industry.
At FaupelX, we’re building the next generation of AI-powered resources for property managers, owners, and industry leaders — because the future belongs to those who prepare for it today.
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