EMEA Special Report - To Stay or Not to Stay: The Role of Asset Services in Influencing Tenant Renewal Decisions August 2015
There are large differences in reported levels of satisfaction with asset services, between companies that had renewed leases, or intended to, and those that had moved or planned to.
These findings, based on a survey of around 500 companies in the UK and the Netherlands, found particularly large differences on certain aspects relating to the physical fabric of the building and its management – including processes for reporting faults and giving notice of works, as well as provision of lifts and climate control. Occupiers’ experience of these factors, taken together, may push them towards a “tipping point” that leads to relocation, even where they are broadly satisfied with other aspects of the location.
These issues are likely to affect occupier thinking and behaviour irrespective of the stage of the cycle, and it is vital for investors and service providers to appreciate those items to which occupiers are most sensitive. Since landlord tenant relationships are increasingly multilocational and multi-market, this appreciation needs to be widespread.