Hong Kong: 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.
Across all property types, including office, retail and industrial, CBRE’s 2018 Global Tenant Survey found that 88% 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.
“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 driven by technology 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.”
“Technology is challenging real estate norms by enabling smarter decision making through real-time analytics, driving more seamless communication with service providers, accelerating maintenance solutions, and re-envisioning the delivery of today’s tenant experiences,” said Craig Hudleston, executive managing director of Asset Services for CBRE in Asia Pacific. “As we enter this new real estate paradigm, location, location, location is quickly becoming information, information, information.”
In today’s competitive job market, our findings show 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% 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 our 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.
“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.”
The clear message of this survey is that when communications and speed of response can be improved, tenants are more likely to have greater success in employee retention and a higher rate of lease renewal.