Tenant Satisfaction Is Key To Asset Performance
Making sure that tenant satisfaction is on the higher end of the scale is one way to improve the bottom line of your asset.
Turnover in commercial real estate costs money and ultimately has longer term effects on your asset’s return depending on length of vacancy and other factors. The overall costs of procuring a new tenant can balloon in comparison to keeping an existing one happy so commercial real estate tenant satisfaction should be at the top of any building owner’s list of priorities. Make sure you have a commercial real estate broker who also shares this philosophy and pay them handsomely for a job well done. It’s worth it.
Don’t believe it? The numbers can be stunning. The lost rental income alone can be devastating on a building’s CAP rate, but then add in other less obvious costs of getting a new tenant in such as leasing commissions, tenant improvements (TIs), constructions time of improvements, and even tenant attracting perks like free rent.
Be Actively Involved in Commercial Real Estate Tenant Satisfaction
Instead of being passive and losing a tenant who is dissatisfied – or even not satisfied enough, have your commercial real estate broker actively combat vacancies. They should be able to look at all contributing tenant satisfaction factors plus be able to “crunch the numbers” to come up with a creative tenant retention program that can truly add to your bottom line. The commission involved in hiring the right commercial broker is irrelevant if it can save you half a million to a million dollars in losses or add to your bottom line potential.
Some of the considerations your broker should have a grasp on regarding commercial real estate tenant satisfaction:
- A good working knowledge of how to set realistic tenant expectations by first finding out what their perceived value of the property is – what are their prioritized needs?
- Creating an image or package of value and increasing the value proposition for future and current tenants through an active campaign
- Top notch management and maintenance services should be hired by your broker – crucial
- Keeping tabs on future company plans for each tenant which may affect long term tenancy.
- Making sure that tenants are recommending the building to outside prospects.
About Our Commercial Division: Cooper Jacobs Real Estate Group has a thriving commercial division. With offices in Portland and Seattle as well as Commercial Associates in California, Idaho, New York, Maryland, Pennsylvania, Hawaii, Alaska, New Jersey, Florida, Texas, Colorado, Arizona, Nevada, Connecticut, Massachusetts, New Hampshire, Virginia, Delaware, and Minnesota, we offer full service for all your commercial real estate needs including creative marketing and listing services.