Key Metrics Every Commercial Property Manager Should Track
5 min read.
Managing a commercial property isn’t just about keeping the lights on; it’s about making strategic decisions that protect the asset, increase its value, and ensure tenant satisfaction. To do that effectively, property managers need to rely on more than intuition. Tracking key performance metrics gives you the insight needed to make data-driven decisions and optimize both operations and profitability.
Here are the key metrics that every commercial property manager should regularly monitor.
Occupancy Rate
The occupancy rate is one of the most basic and important metrics. It indicates the percentage of your rental space that is currently leased. A high occupancy rate typically signals strong tenant demand and steady cash flow, while a low rate may indicate market challenges or internal leasing issues.
Formula: (Leasing square footage / Total rentable square footage) x 100
Tracking this over time helps identify seasonal patterns or long-term trends that require attention.
Tenant Retention Rate
It costs more to find new tenants than to keep existing ones. Your tenant retention rate measures the percentage of tenants who renew their lease versus those who leave. A low retention rate may indicate service issues, rising rents, or misaligned tenant needs.
Formula: (Number of tenants who renewed / Number of expiring leases) x 100
Improving this number can lead to greater stability, fewer vacancies, and lower marketing and turnover costs.
Net Operating Income (NOI)
NOI is a key financial metric that measures your property’s profitability. It shows the income remaining after expenses are deducted from total revenue, but before taxes and financing costs.
Formula: Gross operating income – Operating expenses = NOI
A healthy NOI indicates strong financial performance and is often used to determine a property’s market value.
Operating Expense Ratio (OER)
The operating expense ratio assesses efficiency by comparing expenses to income. A lower ratio indicates better cost control and operational efficiency.
Formula: (Operating expenses / Gross operating income) x 100
Monitoring this regularly helps you identify if rising costs are eating into profits and where adjustments are needed.
Lease Expiration Schedule
While not a single number, your lease expiration schedule is a vital planning tool. Knowing when leases are due to end helps you prepare for renewals, market upcoming vacancies, and avoid large groups of tenants exiting simultaneously. A well-distributed lease schedule ensures more predictable cash flow and less operational disruption.
Rent Collection Rate
Timely rent collection is crucial to maintaining a healthy cash flow. Tracking the percentage of rent collected on time allows you to stay ahead of potential issues and maintain financial health.
Formula: (Total rent collected / Total rent billed) x 100
If this rate drops, it could indicate issues with tenant financial health, lease enforcement, or billing processes.
Work Order Completion Time
How long does it take to resolve maintenance requests? Tracking this metric helps ensure service levels are being met and maintenance operations are efficient. Faster turnaround times can lead to higher tenant satisfaction and fewer complaints, while delays can impact retention and property condition.
Capital Expenditure (CapEx) Tracking
CapEx includes large-scale improvements or repairs, such as roof replacements or HVAC upgrades. Monitoring CapEx helps you manage long-term budgets and forecast major costs that impact cash flow and ROI. Documenting past CapEx spending also aids in strategic planning and property value assessments.
Foot Traffic (for Retail Spaces)
For retail properties, tracking foot traffic via smart sensors or counters can help you understand customer flow, space utilization, and tenant success. This data is especially valuable when negotiating leases, planning improvements, or supporting tenants with marketing efforts.
For commercial property managers, tracking key performance metrics is essential for making smarter, faster, and more informed decisions. By consistently monitoring occupancy, income, expenses, and tenant satisfaction, you can identify problems early, optimize operations, and increase the value of your property portfolio over time.
References
10 essential property management Kpis every manager should track. Singu. (2025, May 21). https://singu.com/top-5-property-management-kpis-to-measure-asset-performance-in-commercial-real-estate/
Maher, A. (2025, May 21). 11 property management Kpis you should track now. Buildium. https://www.buildium.com/blog/property-management-kpis-to-track/
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