09/04/2001

Going for the Gold

Building relationships with tenants takes on new meaning as economy slows

 

Top Service Concerns of Tenants

  • Responsiveness and follow-through by the property manager.
  • Quality and frequency of communications with the property manager.
  • The perceived manner in which I'm treated.
  • The ability of the property manager to anticipate my needs.
  • The concern that the property manager is not doing enough.
  • The ability of the property manager to fulfill promises made.
  • The ability of the property manager to solve problems.
  • The access to and availability of the property manager.


SOURCE: CEL & ASSOCIATES INC.


Today's real estate CEOs are faced with rising operating costs, declining profits, extended lease-up periods, a black hole called technology expenditures, and a tenant base that is demanding and expecting more services and attention. Compounding a CEO's dilemma are regional and national economic, energy, and corporate challenges that have yet to achieve their full impact on operating statements. Not a day goes by that one does not read about declining earnings, failure to meet dividend targets, and layoffs in corporate America. Guiding a real estate organization through this maze of challenges and opportunities requires leaders who are skilled at building and nurturing teams and lasting tenant relationships. Unfortunately, when "markets become soft," when revenues and profits are "not what we expected," the often untapped gold mine is the company's tenant base.


According to a recent study by CEL & Associates Inc., Los Angeles, building lasting, valued relationships with tenants was one of the top five priorities of most real estate CEOs. The recent and accelerating shift by many real estate firms from a geo-centric to a client- or tenant-centric business model is beginning to register added profits. Real estate organizations that have developed and deployed tenant relationship management (TRM) programs are discovering that their renewal costs have declined. The emergence of ancillary income as a viable component of each property's income statement is based primarily on the trust and relationship tenants have with their on-site management team.


However, the key challenge for most real estate organizations is not whether we should build better relationships with our tenants, but how we can build lasting relationships in a time with limited resources to do so. To solve this problem, there are six actions, which, when fully implemented, will result in valued tenant relationships. These actions include:


1. Develop a comprehensive tenant profile.
2. Regularly measure tenant satisfaction (using the national BOMA/CEL Tenant Satisfaction Survey) and hard-wire the voice of the tenant into your organization.
3. Develop and deploy a set of performance standards, expectations, and benchmarks that can be measured.
4. Take an objective and thorough look at your talent and determine where improvements can and should be made.
5. Tie compensation promotions, raises, and bonuses to a Performance Scorecard.
6. Develop a comprehensive tenant retention or tenant relationship management program.


When markets get soft, when the economy slows, and when competition for a limited number of tenants heats up, those real estate companies that have existing (or are building) relationships with tenants will have a far greater opportunity to emerge unscathed. Building tenant relationships requires more than a slogan and lasts longer than a one-day training class. It is a company mindset that realizes the importance of and is committed to providing valued solutions, services, and products to a tenant base that wants more.

Christopher Lee is president and CEO of Los Angeles-based CEL & Associates Inc. For more information on CEL & Associates Inc., the BOMA/ CEL Tenant Satisfaction Surveys, or the National Customer Service Award For Excellence, please contact Lee at (310) 571-3113, via fax at (310) 571-3117, or by e-mail (chris@celassociates.com).

For more information on the issues covered in this column, please e-mail Scott MacIntosh at (smacinto@boma.org) or check the BOMA International website (http://www.boma.org).

 


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com

 
comments powered by Disqus

Related Products

Sponsored Links