Majority of Tenants Agree Property Management Services Play a Key Role in Renewing Lease and Employee Retention
28 Jun 2018
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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 making location decisions.
Across all property types, including office, retail and industrial, CBRE’s 2018 Global Tenant Survey found that 88 percent of tenants say 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.
“In San Diego, we are seeing investors and tenants becoming more focused on property management and its importance to their company’s bottom line,” said Mark Butcher, Managing Director of Asset Services in San Diego. “In our region, we find that quality property management enhances the overall tenant experience, improves tenant recruiting, and increases the likelihood of tenant lease renewals which drives competitive returns for investors.”
“In San Diego, our investor clients and occupiers are becoming increasingly concerned with the philosophy behind an office’s structure, said Mark Butcher, Managing Director of Asset Services in San Diego. Transforming what we traditionally referred to as an office into what we now see as a Workplace, shifts the layout’s purpose to technology, flexibility, wellness, and social amenities.”
“As we look to the future of property management and providing exceptional outcomes for our investor clients, we are seeing a greater demand for expanded services that increase tenant engagement and create a destination of choice for employees,” said Mary Jo Eaton, CBRE’s Global President, Asset Services. “When coupled with our world-class property management teams, tech-enabled experience services like CBRE 360 can support these efforts by creating an overall enhanced tenant and employee experience at their properties.”
Studies show that providing a workplace that meets the expectations of today’s employees improves talent retention. Across all property types, the survey revealed that 87 percent of respondents of respondents say good building management plays an important or very important role in employee retention. When asked to define what constitutes good building management services, the core functions of effective property management—ensuring that building operations run smoothly and are financially efficient—remain of vital importance.
“Responsiveness,” which is defined by the ease of contact and speed of reaction, is the No.1 most desired trait of great property management This shows that when communications and speed of response are improved, tenants are likely to have more success in employee retention, which could lead to a greater rate of lease renewal for the landlord.
“The findings of this survey support the positive feedback we are receiving in the industry regarding the CBRE 360 tech-enabled experience services,” said Andrew Kupiec, Global President, CBRE 360. “Delivering what tenants want and property managers need, CBRE 360 creates a better method for communicating building concerns and access to amenities, concierge services and wellness information in one location and available on-the-go.”
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.