by Kendall Pretzer
Regardless of what type of commercial real estate you manage, improvements to tenant satisfaction are central to a healthy bottom line. There is quantifiable evidence of a direct correlation between the contentment of tenants and renewal rates, and higher gross and effective rents, according to a recent study by MIT and Maastricht University.
The way companies do business continues to evolve post-pandemic, and CRE owners face an uphill battle economically as vacancies continue to creep up. There is still a significant segment of the workforce engaged in hybrid or fully remote work environments. This leads to lower demand, higher vacancies, and the likelihood of decreasing rents as supply increases. These changes to commercial office space have convinced tenants to examine not just the quantity of space they lease, but the quality of it as well, which means drivers of satisfaction must be scrutinized by owner/operators.Tenant engagement will prove to be the key to success.
Read Kendall Pretzer’s article in Proptech Outlook.