The competition for tenants has always been a challenge, but it’s never been more difficult than it is right now. In years past, landlords produced lavish incentives, flashy brochures, and promises of unparalleled location to retain and acquire, but in 2024, the real key to unlocking higher occupancy rates and happier tenants lies in a more fundamental element: real estate experience.
Think of it this way: imagine you’re apartment hunting. Would you choose the sterile, amenity-less building with sluggish maintenance, or the one humming with community events, a responsive team, and a rooftop bar? The choice is clear. A positive tenant experience fosters loyalty, reduces churn, and attracts like a magnet.
But how exactly does it work?
Happy tenants are walking billboards: Word-of-mouth recommendations and reviews are gold dust in the leasing world. Satisfied tenants become your best brand ambassadors, evangelizing your building’s charm to colleagues and competitors,
Reputation matters: A building with a buzz for its fantastic tenant experience attracts attention faster than a free candy stand. Potential tenants seek vibrant communities, not just square footage.
Value beyond bricks and mortar: Amenities like fitness centers, co-working spaces, and on-site cafes become more than just perks; they elevate the perceived value of your building, justifying premium rents and longer lease terms.
Retention, the silent engine: A positive experience isn’t just about luring new faces; it’s about keeping the happy ones. Studies show that satisfied tenants are more likely to renew their leases, saving you the headache and cost of constant turnover.
Beyond the renewal, there’s potential for upselling: Tenants who feel valued and heard are more receptive to additional services or upgrades, unlocking new revenue streams for your building.
But tenant experience isn’t a one-time magic trick; it’s a continuous balancing act. Here are some ways to keep the scale tipped in your favor:
- Invest in technology: Mobile apps for maintenance requests, event promotion, order F&B ahead services, and building announcements (just to name a few) create a sense of community and modernity. Did you know that 96% of property teams looked to maintain or expand their spending on workplace experience software this past year?
PRO TIP: HqO’s Experience Manager (XM) can help! XM, the only asset-agnostic, cross-property type experience management system, centralizes a property’s full range of capabilities for users through a single workflow to deliver a seamless, integrated digital property experience. Request a demo.
- Prioritize building maintenance and cleanliness: A clean, well-maintained environment fosters a sense of pride and satisfaction among tenants. Leaky faucets and flickering lights don’t exactly scream “home sweet home.”
- Cultivate community: Organize events, facilitate social interactions, and create spaces for your tenants to connect. A vibrant community fosters a sense of belonging and reduces the feeling of isolation that can plague office environments.
- Listen and respond: Actively gather feedback and demonstrate that you value your tenants’ opinions and well-being by distributing the HqO’s REX Assessment.
Data collected from this 10-minute survey will allow you to identify and understand the needs, preferences, and especially the pain points of your tenants and their employees. Speak to one of our REX experts to learn more about deploying the assessment at your asset today.
Tenant experience is a journey, not a destination, but by making it a constant priority, you’ll not only secure higher occupancy rates and happier tenants, but also invest in the long-term success and reputation of your building. So, ditch the flashy brochures and focus on creating a space where your tenants feel truly valued. It’s the secret weapon that unlocks the most coveted treasure in real estate: loyalty.
Ready to transform your building into a tenant magnet? Speak to a REX expert today.
Already got a great space with an excellent REX? Make sure to nominate it to be included in HqO’s 2024 Best Spaces to Work list today!
