Owning commercial property can be incredibly rewarding, but also hugely difficult to get right. 

If you are currently in a position of owning some commercial property and you are wondering how best to approach it, you’ll want to make sure that you find some way to create long-term value while being able to manage it effectively. 

As it happens, it’s possible to achieve both of those ends, and the best way to do that is to make use of joint venture partnerships.

Joint venture partnerships can be a strategic tool for investors, developers and property managers who are keen to scale up their operations. 

They can also help with mitigating certain risks and helping to unlock that value that you are really hoping for. It’s all about aligning complementary strengths to create the right opportunities, opportunities that might be difficult or impossible to achieve alone. Here’s how to do it.

Why joint venture partnerships work

Commercial property management is a resource-intensive act if you do it alone, requiring a great deal of capital as well as operational expertise. 

That’s why it’s much better if you can get some help with it, ideally in the form of a joint venture mechanism. 

That allows you to get what you need from the partner while providing what you think you can provide in turn.

There are many types of partners. They could be capital partners who primarily bring in more funding to help acquire or redevelop the assets. 

Or they might be strategic partners, allowing you to have access to more technology and sustainability expertise, or even improve access to niche markets.

Or perhaps they are more like operating partners, helping to provide knowledge and day-to-day management. They might even provide a little of all three.

As you can see, it’s all about the division of roles – which helps to create a stronger portfolio performance over time.

Joint venture structures can unlock access to new markets, shared expertise, and long-term portfolio stability. Langtree’s free property management audit helps identify where collaboration could strengthen performance and efficiency.

Shared risk & reward

One of the benefits of this kind of partnership is that you are sharing risk with the partner in question. 

That means less risk on your own shoulders. At the same time, you are also going to be sharing rewards, so it’s a balancing act that you need to be aware of and try to get right. 

However, people almost always find that they are much better off making use of a joint venture partnership, so it is certainly something that you are going to want to consider. 

You’ll find that you spread out both financial and operational risk, and that this has a way of stabilising the returns – especially useful in volatile markets.

Access to more assets

These partnerships can also be helpful in terms of scaling up operations, and getting access to more and to larger assets. 

Part of this is down to the pooling of resources that often takes place here, and it can also be due to the access to the partner’s resourcefulness. 

Perhaps they are better equipped to find the right assets or those which are more attractive, for instance. 

This is something that is going to be hugely important to consider, as it could be vital in growing the investment portfolio as required or desired.

Operational efficiency

One of the main reasons that you might want to make use of a joint venture partnership is to help improve the operational efficiency of your portfolio as a whole. 

This is the kind of thing that is going to be really helpful to consider, and it’s something you should certainly think about all in all. Leveraging specialised management expertise enhances a lot of areas of owning a commercial property, including tenant satisfaction and retention, so it’s something that you should certainly think about. And the right team can help with this in more ways than one.

Alignment of goals

One of the keys to this kind of partnership working out well is the alignment of goals. Both short-term returns and long-term asset strategies should line up, and they have to be clearly defined to ensure that this is going to be the case. 

If you can be sure of that, it means that you are going to get so much more out of the partnership, and so will the partner in question, so this is something that you should definitely be aware of in all this.

As you can see, joint venture partnerships can help to create long-term value in commercial properties easily and powerfully, and they can be a solution that helps above all else. They are certainly something to aim for.