Commercial Real Estate: Increasing Tenant Satisfaction

Want Better Asset Performance? Tenant Satisfaction Is Key.

Tenant satisfaction should be front an center on your broker’s mind to improve the bottom line of your valuable asset.

There are other factors which affect your asset’s bottom line, but turnover makes a significant impact. In commercial real estate, turnover costs large amounts of money and creates longer term effects on your asset’s return.  The overall costs of procuring a new quality tenant can become much more of a cost burden than  doing what is necessary to retain an existing one.  As a result, commercial real estate tenant satisfaction should be at the top of any serious building owner’s list of priorities.  Make sure your commercial real estate broker also shares this philosophy. It’s worth the trouble of finding the right person for the job and can make or break a building’s bottom line.

The numbers can be stunning. The lost rental potential alone can be devastating on a building’s CAP rate, but don’t forget to add other less obvious costs of procuring a new tenant.  Some of these include additional leasing commissions, another round of tenant improvements (TIs), constructions time of improvements, and free rent perks.

Is Your Broker Actively Involved in the Commercial Real Estate Tenant Satisfaction of your Asset? 

Instead of being passive and losing a tenant who is dissatisfied – or even not satisfied enough, have your commercial real estate broker actively avoid vacancies.  They should be able to look at all contributing tenant satisfaction factors plus be able to  “run the numbers” and create a tenant retention program that can make your bottom line stronger.  The commission involved in hiring this commercial broker is vital and can save you a million dollars in some cases in losses.  It can also add to your bottom line potential and create opportunity for growth.

Considerations when hiring broker with a focus on commercial real estate tenant satisfaction:

  • They should be able to set realistic tenant expectations by discovering what their perceived value of the property is – what are their prioritized needs?
  • They should create an image or package of value and increasing the value proposition for future and current tenants
  • They should hire the best: Top notch management and maintenance services are crucial
  • They should be “in the know” about  future company plans for each tenant which may affect long term tenancy.
  • They should know that tenants are recommending the building to outside prospects because they are satisfied.

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.

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