Proactive defense is best when it comes to commercial property protection
In spite of the correcting economy and adjusting housing market – our community slowly continues to grow. We’ve all heard the expression, “No pain, no gain.” Unfortunately, that phrase is still applicable when it comes to after-hours burglaries at commercial properties.
Many are smash-and-grab thefts, in which criminals break through a business’s front glass door or plate-glass window to get to the goods. These crimes seem to occur in spates. Working under the cover of darkness, the perpetrators usually target retail shops that deal largely in cash (nail salons and beauty shops) or that carry pricey merchandise that is easily transported (designer sunglasses, jewelry, clothing).
You’d think that the majority of these crimes would take place in remote areas or at least in locations hidden from major roads, but that’s not the case. They can happen to any business, anyplace, including high-traffic areas. Luckily, in Lee County, they are on the decline but now is not the time for a commercial property owner to sit back and become complacent about security.
Annual statistics compiled by the Lee County Sheriff’s Office shows an overall drop in crime during 2008. Compared to 2007, the overall crime rate is down more than nine (9) percent county-wide. Total non-violent crimes such as burglary and theft fell by more than six (6) percent county-wide. Combined, total violent and non-violent offenses are down nearly eight (8) percent county-wide. Total arrests are up by more than three (3) percent compared to 2007.
That is all good news but once a break-in or any other type of on-site theft has occurred, there’s not much that an owner can do or is legally obligated to do. Usually, leases will specify that landlords are not responsible for any sort of damage or loss inside the tenant’s space. This leaves the ball squarely in the tenant’s court.
Typically, it’s up to the tenant to insure against business interruption and loss of inventory. Most landlords also require tenants to carry break-glass insurance as well as public liability insurance. Although liability coverage is included in a building owner’s overall property insurance and paid for by tenants in their monthly CAM charge, public liability insurance offers additional coverage. Specifically, it protects policyholders if someone on their property is injured – even if that person is a thief.
Let’s say a person breaks into a store to steal the cash register but trips on the electric cord and breaks his neck in the process. The criminal could then sue the tenant and the building owner. Because this happens more often than you might think, tenants should always have separate public liability coverage in their renter’s policy.
Tenants
For example, if you’re a retailer, don’t display jewelry or other high-priced goods where people can see them easily after hours.
n Have good customer relationships. Sometimes disgruntled customers will vandalize property or break in and steal equipment or merchandise out of vengeance. That’s less likely to happen if you’re fair with people (including employees).
n Know what’s “normal” for your location. Each type of commercial property has cycles and patterns of tenants and visitors depending on the time of the day and day of the week. For example, some restaurants and coffee shops might cater mainly to working commuters in the morning, students in the afternoon and the bar crowd later at night.
n Report suspicious activity. It’s important to be aware of your surroundings and know your neighbors, particularly in a commercial setting. Don’t hesitate to call police if you see something or someone seemingly out of place.
If break-ins are a reoccurring event, the affected tenant(s) need to examine why and discuss possible solutions with the property owner. Tenants may be able to negotiate with the landlord to upgrade the building’s security system, install impact glass and/or add motion detectors and other types of lighting to the property. However, the best time to do that is during lease negotiations, not afterward.
Owners & Landlords
When it comes to safeguarding their investment and ensuring tenant security, landlords should be proactive. Even if they’re not liable for tenant losses, it behooves owners to minimize their tenants’ exposure to loss. After all, the more attractive and secure a commercial property, the easier it is to find tenants who want to be there. Some other tips:
n Secure doors and windows. Preventing unauthorized entry starts with installing heavy-duty doors, windows and locking devices. Of equal importance is that tenants understand the importance of locking up when leaving the property, particularly if it’s a smaller building with one main entrance.
n Restrict after-hours access. Options include hiring a security guard, or installing doors with automatic locks, keypad entries or programmable, magnetic card access.
n Maintain the exterior. Many criminals will target a commercial property based on the way it looks. A property that appears to be well maintained sends the message that someone is looking out for it and may be on site at any time. Consequently, criminals often will steer clear. Conversely, thieves and vandals are apt to target unkempt properties with overgrown landscaping, dim lighting and graffiti-covered structures.
n Install good lighting. Because low visibility means heightened opportunity for criminals, proper illumination is one of the most effective and least expensive deterrents around. To enhance security, commercial owners should eliminate shadowy or dimly lit areas throughout their property.
The bottom line is that owners and tenants should treat their commercial space like their home. After all, it’s in everyone’s best interests to preserve asset value, ensure personal safety and minimize liability exposure.
Gary Tasman is executive director of Cushman & Wakefield’s Southwest Florida office. For more information, please contact him at (239) 489-3600 or gary.tasman@cushwake.com