Feature Story

CMI Among Few Commercial Independents Managing to Maintain Success in Southwest Florida
By Elizabeth W. Pearce

Dean Prevolos may have started his professional life as a chef and restaurant owner in Chicago, but it wasn’t until he came to Southwest Florida in 1984 that his career really started cooking.
Over the years, he’s developed a blue-ribbon recipe for successfully leasing, managing and brokering commercial properties as an independent agent - a remarkable accomplishment when so many others in his position have either closed their doors or affiliated with larger, national firms. In fact, this year marks the 10th anniversary of the firm he founded, Commercial Management of Naples, Inc. (CMI).
Established in 1992, CMI is a small, hands-on company that typically employs no more than a handful of people to manage, lease and maintain its commercial properties. Most are in Naples, although Lee and Charlotte counties are part of CMI’s service area.
Prevolos admits that while his company is something of an anomaly in an industry dominated by mergers and mega-firms, its success stems from maintaining a modest but competitive position in the market.
“I worked for other firms at the beginning of my career, and in recent years I’ve been approached by other, larger companies to come work for them,” he said. “It’s not that I don’t work well with others, I do. But I’m a very independent person. I like the little niche I’ve carved out for myself and I do very well with it.”
Currently, the firm’s portfolio contains Naples properties totaling 250,000sf of Class-A and Class-B office, retail and industrial space. They include:
- Tanglewood Marketplace, a 50,000sf retail center on U.S. 41 in north Naples anchored by long-time tenants Outback Steakhouse and Snyderman Shoes (both of whom just renewed their leases for five years). The tenant mix also includes Nearly New, a 7,000sf consignment shop, as well as a dental office, chiropractic clinic, a cigar store and a wine shop, among others.

- SunTrust Bank Building, a 72,500sf Class-A office building in Pelican Bay, where Prevolos has just leased 13,500sf to securities firm UBS Paine Webber.

- 1250 North Trail building, a three-story, mixed-use building on Tamiami Trail with approximately 31,000sf. Retail occupies the first floor, while the upper two floors are devoted to professional offices.

- Goodlette Medical Park Phase 2, a 22,850sf medical building just south of 7th Street on Goodlette Road, which CMI manages and leases.

In addition, Prevolos is making his development debut with two office projects in Naples that CMI is now preleasing and marketing. The first is Goodlette Medical Park Phase 3, totaling 18,500sf of medical/office space adjacent to Phase 2. The other, scheduled for groundbreaking this fall, is Castello Square, a 14,500sf office building on Castello Road. Both are slated for completion in 2003.
“What I’ve done for the clients who own these properties is be there every step of the way for them, from the building concept through the architectural design and engineering phases,” said Prevolos. “That way, they don’t have to take time out of their busy schedules to do all that. I give them my input, they give me theirs and I make sure their (project) is built according to plan. My goal is to optimize each property.”
While the bulk of the firm’s business involves office and retail space, CMI also leases and manages one industrial property which has been fully occupied since Prevolos made exterior improvements, and installed a new sprinkler system and landscaping.
“I try to be proactive about maintenance, even in an industrial building,” he said. “Being proactive minimizes my problems with any property, plus my clients and their tenants like to see their properties looking good.”
Dr. Creed Miller, a dentist who has practiced from Goodlette Medical Park for the last three-and-a-half-years, agrees that a pleasant environment is important to staff and patients alike. “I think it makes a difference when you come into a well-maintained facility,” said Miller. “You have more of a sense of wellbeing than if you walk into a place where sand fleas are biting you on the ankle when you arrive.”
According to Miller, the medical park “was looking sort of worn” before Prevolos began managing it 18 months ago. “Dean explained that he was going to (improve) the building and do a better job than the previous manager,” said Miller, who occupies approximately 2,300sf. “Of course, I’ve heard that before and it’s never materialized.” This time, it did.
“After Dean took over, this place made a 180-degree change. The landscaping, lighting and walkways look so much nicer now, and (CMI) does a great job of staying on top of the maintenance. As a landlord, Dean really does what he says he’s going to do.”
As a result, CMI’s managed properties currently boast an overall occupancy rate of 95%. As impressive is the 85-95% occupancy rate CMI has maintained for the past 10 years.
“Our clients appreciate that I’m a hands-on guy,” said Prevolos. “They like the attention to detail and know that they won’t be lost in the shuffle.” Further, tenants know that if they have a problem, their concerns will be heard and addressed promptly, even if it’s not a landlord responsibility.
The other day, for example, Prevolos got a call from someone at one of CMI’s managed properties complaining that a bank of office lights had gone out. Although such minor maintenance problems are supposed to be handled by tenants, Prevolos sent over a member of his maintenance crew to check the breaker box. Just as he’d suspected, a flipped breaker was the reason for the isolated outage.
“It took a few minutes of our time, but I don’t mind doing that for people,” he said. “That helped them solve a simple problem and saved them from having to call an electrician. Again, I think that type of cooperation and communication is why we’ve maintained a high level of occupancy in these buildings.”
Another reason could be that Prevolos treats every building as if he owned it, even though CMI has no vested interest in any of the properties it manages. Just ask client Don Barber, a partner in several office and retail properties overseen by CMI.
“When he’s managing those properties, he’s managing several millions of dollars, so there’s a lot of income and considerable money involved,” said Barber. “A lot of people will tell you they’ll handle your money like it was their own, but Dean probably comes closer to doing that than anyone I’ve ever met. In fact, I’d say Dean manages it better than I would.”
Barber added that Prevolos’ honesty and management skills, combined with his knowledge of the industry and local market, enable him to do “a really great job. I don’t hear about problems until after they’re fixed.”
That’s typically the experience of most CMI clients, each of whom receives a comprehensive monthly management report that includes a narrative of the property maintenance, a complete accounting of income and expenses, a cash-flow statement and spreadsheets so they can see the net profit each month. Should there be a question, Prevolos usually has an immediate answer thanks to his close involvement with every property.
Prevolos says that CMI has proven its ability to work more promptly and efficiently than many of its larger competitors. “People call me every day to inquire about space for lease, including other commercial brokers. There’s a small percentage of us who’ve been around for years. We talk to each other all the time and discuss our inventory to make different deals happen.”
Due to ongoing changes in the marketplace, Prevolos says he anticipates continued challenges in his business, although he is confident that prudent growth management will keep Southwest Florida a desirable place to work and live.
“The demographics have changed considerably since I moved here, as has the cost of land. But if you stay informed and alert about what’s happening around you, you can still make a deal any day of the week. And as long as the terms make sense, every day is the right day to buy real estate.”

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