Effective property management services create value for building tenants and investors through higher occupancy rates due to greater incidence of lease renewals and tenant stability due to greater talent retention.
The core functions of effective property management—ensuring that building operations run smoothly and financial efficiency—remain of vital importance. Done well, core property management leads to tenants staying in a property and aids their business performance.
Providing a workplace that meets today’s employee expectations is critical to keeping workers motivated and enthusiastic. Investors whose buildings help to retain talent for the businesses that use them should see a reduction in tenant turnover.
For tenants, renewing a lease at an existing location means greater workplace stability and less cost and disruption resulting from relocation. For investors, higher renewal rates mean higher lease-up periods and higher overall net operating income. Improving the net operating income of a building by just 10 basis points (bps) makes a difference to returns in today’s low cap-rate environment.
88% of respondents say that the quality of property management has a strong or very strong impact on the decision to renew a lease.
87% percent of respondents say that good building management plays an important or very important role in employee retention.