August 2025
From “babysitting” to business resiliency: How industrial property management grew up
The building burned to the ground. It was a triple-net deal, so on paper the tenant was responsible for most things. But within 20 minutes of learning about the fire, Carrie Szarzynski’s Hiffman National team had already assembled and delivered every key document the owner’s insurer needed — fire safety vendor, HVAC contractor, as well as the tenant and vendor insurance certificates. The paperwork was in the right hands before the smoke cleared and the owner’s response moved just as fast.
“Within 20 minutes of finding out, we were able to get all that information to our client and their insurance company,” said Szarzynski, Hiffman’s Senior Managing Director & Head of Management Services.
That moment says everything about how industrial property management has changed. What used to be dismissed as “babysitting” is now a data-heavy, compliance-driven, NOI-protecting business that depends on tight relationships with both owners and tenants.
“What’s really changed in the past five years is that tenants of industrial buildings want the same level of service and relationship with the property management team as office buildings do,” Szarzynski said.
The shift is evident in everything from lease language to day-to-day expectations. Prologis’ Clear Lease model, for example, conditioned some tenants to expect the landlord or manager to handle HVAC, fire life safety and roll it through common area maintenance (CAM). Hiffman’s managers have drawn a line: partner, guide and educate — but don’t absorb tenant risk.
“We’ve trained our teams to truly partner with tenants and provide support, but without taking on liability,” Szarzynski said.
This philosophy carries over to operational decisions. If a lease states the tenant handles HVAC, Hiffman’s managers won’t hire the contractor and push the invoice through CAM, which could inflate operating numbers for the next lease cycle. Instead, they provide a vetted short list, document the request and, only with written authorization and client approval, step in to arrange for the work billing it back as a tenant bill-back, not a CAM expense.
Two big priorities now separate top-tier industrial property management teams from the pack: risk and compliance first, maximizing NOI second. The fire story illustrates the first. The second is about discipline: holding tenants to their obligations, mapping five-year capital plans and sequencing work so value and cash flow are protected.
“Most people who own commercial assets own them as an investment,” Szarzynski said. “A good property management team works with the asset manager to keep the building value up, ensuring the tenant is being held accountable for their requirements per the lease.”
Neglected dock doors, HVAC or fire life safety systems can cost hundreds of thousands to fix when a tenant moves out. Szarzynski’s team makes sure those systems are maintained during occupancy, not after the fact.
All of this only works if the relationships are right with the owner and with the tenant.
“It’s critical. In my opinion, it’s a partnership,” Szarzynski said. “Owners look to us to be their boots on the ground.”
That partnership mindset needs to extend to tenants too, especially in triple-net structures where they carry most operational responsibility. If tenants feel the manager is just policing them, the relationship turns adversarial and standards slip.
“Tenants have to feel like you are their partner, that you’re there to help them and not just police them,” Szarzynski said.
Environmental, Social and Governance (ESG) initiatives are another area where industrial property management has caught up fast. Five years ago, Szarzynski’s teams weren’t collecting or reporting utilities portfolio-wide. Now they are, and it has become a differentiator. Tenant engagement has also migrated from office towers to warehouses.
“We’re collecting utilities and reporting back to our clients, something we never did five years ago,” Szarzynski said. “We’ve also seen more tenant events, whether that’s an ice cream truck, taffy apples or holiday gifts.”
Specialized asset classes such as data centers and cold storage add another layer of complexity. These assets can’t be managed like standard bulk warehouses. Different risk profiles, regulations and engineering needs require specialized teams and training.
“Data centers are a very different type of management,” Szarzynski said. “A typical industrial manager may not have the experience to manage a data center. It’s the same with cold storage.”
To keep pace, Hiffman invests in continuous education.
“We recently held a full team training on the rules and changing laws related to warehouses, trade classifications, tariffs and what’s changing in the market,” Szarzynski said.
That readiness mindset extends to state and federal legislation. Tornado preparedness requirements. Solar panel language. Evolving codes and compliance standards can catch owners off guard if their management team isn’t staying ahead of new laws.
“There’s a lot of legislation out there right now nationally, Illinois in particular,” Szarzynski said. “We stay connected to industry groups and make sure our people are educated about anything that could impact properties and owners.”
Put it all together — the fire drill precision, the tenant partnership without the liability, NOI discipline, ESG reporting, specialized expertise and policy vigilance — and you have a blueprint for what industrial property management means in 2025. It’s not babysitting. It’s business continuity, value protection and relationship management under increasingly complex demands.
When the alarm goes off, success means having the right keys, the right vendors, the right data and the right instincts before the flames die down.
About NAI Hiffman:
NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property management division, which provides facility management, accounting, lease administration, lender services and project services across the country. NAI Hiffman | Hiffman National is an award winning company headquartered in suburban Chicago, with more than 275 employees strategically located throughout North America.
About Hiffman National:
Hiffman National is one of the US’s largest independent commercial real estate property management firms, providing institutional and private clients exceptional customized solutions for property management, project management, property accounting, lease administration, marketing, and research. The firm’s comprehensive property management platform and attentive approach to service contribute to successful life-long relationships and client satisfaction. As a nationally bestowed Top Workplace, and recognized CRE award winner, Hiffman National is headquartered in suburban Chicago, with more than 275 employees nationally and an additional six hub locations and 25 satellite offices across North America.
