As employers strive to create a healthier, more collaborative and productive work environment for employees, the quality of property management and the incorporation of technology are critical considerations when tenants are making locational decisions, according to CBRE’s 2018 Global Tenant Survey.
Across all property types, including office, retail and industrial, the results revealed that 88 per cent of tenants feel that the quality of property management has a strong or very strong impact on decision to renew their lease. 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 retention rates and higher overall net operating income.
Andy Hay, Managing Director, Asset Services, EMEA at CBRE, commented: “Property management continues to progress through a period of change including the way we use technology to support and enhance traditional building operations and services. It’s therefore imperative that property managers embrace and keep pace, with the ever-changing market conditions and the rapid evolution of technology in the built environment. This will allow property managers to operate buildings in a smarter, more flexible way than ever before, and by doing so, we will not only enhance the overall occupier experience, but improve tenant retention and ultimately increase the value of the property.”
The findings showed that providing a workplace that meets or exceeds employee’s expectations improves employee engagement and retention. Across all property types, the survey revealed that 87 per cent of respondents say superior building management plays an important or very important role in employee retention. When asked to define what constitutes superior building management services, what is of vital importance are the core functions of effective property management—ensuring that building operations run smoothly and efficiently, which ultimately enable investor clients to achieve the highest returns on their assets. “Responsiveness” is the No.1 most desired attribute of great property management which is defined by the ease of contact and speed of reaction.