Boosting Renewals: The Best Way to Keep Tenants Is to Keep Them Satisfied
What do commercial tenants want? Here’s a clue: often, rent reduction isn’t the top request. In fact, a survey of more than 1,200 tenants across the United States and Europe says that hands-on service, communication and fixing problems drive satisfaction. Most importantly, tenant satisfaction translates directly into higher renewal rates.
As the commercial real estate sector continues to be challenged, investors are looking for new ways to maximise the value of their assets. In order to do so, property owners and managers have redoubled efforts to retain quality tenants. The reason is simple: the financial rewards of strong tenant relationships can be significant. In this economy, replacing a tenant is a difficult and unprofitable event. But how can a property owner know if tenants are satisfied — and how can he or she know what to do to boost satisfaction?
To be a landlord of choice, property owners and managers must