In commercial real estate, trust is everything. Investors rely on their management partners to make decisions that protect and grow their capital over the long term. The fiduciary standard, acting in the client’s best interest, is a key part of that trust.
Yet not every management firm operates with this level of commitment.
At Kenwood Management, the fiduciary standard isn’t just a concept — it’s built into every investment decision through principal co-investment. By investing in real estate alongside our clients, we ensure that our goals and our investors’ goals are the same.
In this blog, we’ll explore what the fiduciary standard means in commercial real estate, why co-investment is essential for accountability, and how Kenwood’s approach helps investors achieve stronger, more stable results.
The fiduciary standard means putting the investor’s interests first.
In commercial real estate, this responsibility extends past property management and involves a commitment to transparency, sound judgment, and aligned financial incentives.
Unlike traditional asset management, fiduciary management involves more than collecting fees for service. It means taking responsibility for the long-term success of the investment itself. In a market where property values, tenant needs, and operating costs fluctuate, fiduciary behavior provides a foundation of trust and accountability.
For commercial real estate investors, this distinction matters. The financial stakes are high, and every decision can have long-term implications for returns. A true fiduciary partner prioritizes the investor’s goals and manages assets with the same care as if they owned them outright.
Principal co-investment occurs when the management company invests its own capital alongside its investors. This structure changes the dynamic entirely. Instead of operating as a third-party manager, the firm becomes a partner with a real financial stake in every decision.
This approach builds trust and accountability in several ways:
In firms without co-investment, the risk is often one-sided. Managers may collect fees regardless of performance, creating a gap between investor outcomes and management motivation.
Co-investment closes that gap. It ensures that everyone is equally committed to achieving sustainable results.
Kenwood Management applies the fiduciary standard across every part of our commercial real estate investment strategy. We invest alongside our clients, typically contributing 10% to 20% of the total equity in each property. This structure ensures that our success is directly linked to the success of our investors.
Our co-investment model promotes accountability and consistency. Because we both own and manage our properties, we remain actively involved throughout the entire investment cycle. Every decision is guided by the goal of strengthening long-term property performance.
We focus on identifying value opportunities in Class-B and manufacturing properties throughout the Baltimore and Washington, D.C. markets. These assets often have untapped potential that can be realized through strategic improvements and steady management.
By maintaining direct ownership and oversight, we ensure each property receives the attention needed to perform well over time. This approach turns fiduciary responsibility into a clear advantage for our investors, resulting in reliable, sustainable growth.
Partnering with a company that upholds the fiduciary standard through principal co-investment offers clear, lasting benefits.
Investors gain:
At Kenwood, we believe that co-investment is the foundation of a responsible and results-driven commercial real estate investment strategy. By sharing both the opportunity and the risk, we create true partnerships that build trust, stability, and long-term success.
If you’re ready to invest with a partner who shares your goals and stands behind every decision, contact Kenwood Management today to schedule a strategy session.