TENANT SATISFACTION: UNPACKED!


RELIABLE MANAGEMENT, ADMINISTRATION AND TECHNOLOGY ARE VALUED MOST BY TENANTS



The quality of property management is a critical consideration of tenants when making stay-or-leave decisions.

Tenants were asked to rank each aspect of property management for its importance to their company’s bottom line on a scale of 1 to 5. The results show the two most-valued aspects of property management are building management and business administration. Technology services was a close third.

Within the broad categories of value-add property management, there are a wide variety of activities and services. We asked tenants to give us full details of what they value most, now and in the future, for each category.

CBRE Research: Global Tenant Survey 2018

BUILDING MANAGEMENT


The highest scores under the building management aspect of property management indicate the importance tenants place on keeping their workplaces clean, safe and secure. Solving problems quickly is important in all property sectors, as is building security. For office tenants, comfort and efficiency also score highly, including climate control, cleaning, elevator maintenance and utilities. For retail and industrial tenants, external appearance and security are particularly important.

CBRE Research: Global Tenant Survey 2018

PROPERTY-LEVEL BUSINESS ADMINISTRATION


While sound financial administration of a building is the primary concern of the investor, tenants also regard it as important, though slightly less than building management.

Communication of major upgrades to services is the most important aspect of building administration from a tenant’s point of view.

Office users attach slightly more importance to the core commercial functions, including rent collection, service charge administration and property accounting. Health and safety advice and guidance on sustainability are also valued.

CBRE Research: Global Tenant Survey 2018

TECHNOLOGY SERVICES


Technology services rank third overall in importance to a company’s bottom line, behind business administration. For office tenants, technology services come second to building management in attracting and retaining talent.

For office and industrial tenants, maintenance of the building’s internet connection is the most important service.

Retail tenants, on the other hand, place high value on the property-specific portal to attract customers.

Digital technology solutions advice and building security technology are the second- and third-most desired amenities for industrial tenants, reflecting the increased importance of automation and data protection in modern warehouses.

CBRE Research: Global Tenant Survey 2018

There is no doubt that technology is the way forward. Business-to-Business (B2B) applications (apps) make communication between property management and tenants in the office sector much easier and quicker. This may be about changes to the building, health and safety, or sustainability advice. In the retail sector, apps will focus on the provision of up-to-the-minute shopper flow information and upcoming community events, so that retailers can focus marketing efforts around particular times and events. However, apps need to be backed up by rapid and responsive interventions by property managers.

To further illustrate the value of technology integration, CBRE’s 2018 EMEA Occupier Survey also points to the role of new technologies in the workplace. 62% of occupiers in that survey expect to increase investment in workplace technology in 2018.

CBRE’s new 360 office services app is addressing this need by integrating property and service amenities with advanced digital technology services.


CBRE 360

CBRE 360 is the personalized platform that connects employees to the environments, amenities and communities that matter most. CBRE 360 offers building tenants access to a mobile app to streamline the ability to order food and beverage, book meeting space, receive news and building content, book and manage events, submit a facility request and connect with building concierge. In this way, the user experience of the building can be enhanced and existing service and amenity offerings made more accessible.


SERVICES MANAGEMENT


Services management scores fourth in overall importance for tenants, below building management, business administration and technology services.

Concierge services for individual tenants and the concierge as a connector between tenants and services are among the top-three services in this category for office tenants, along with reciprocal use privileges for conference rooms. These rankings reflect an increasing preference for personalized services aimed at improving the productivity and satisfaction of employees, as well as a desire for easier communications with related businesses.

Although other service amenities receive relatively low scores, it is likely that these will trend up over time. Other CBRE Research reports, such as the 2018 Americas Occupier Survey, which targets senior corporate real estate managers, indicate the critical importance of amenities by occupiers for attracting talent.

Retail tenants have very specific service requirements to drive and monitor pedestrian flow. Retail analytics, including shopper counts, and community events to boost foot-traffic are highly appreciated by retail tenants, as they seek to maximize the value they derive from physical stores. Property managers of retail space therefore need to work with retailers to drive consumer engagement.

CBRE Research: Global Tenant Survey 2018

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