If you're leasing corporate office space, you already know how damaging it is when you have a high rate of turnover. The hit on profits goes beyond lost revenue. You'll also incur losses due to leasing commissions, making improvements for new tenants in areas like office design and promotional offers to attract new tenants.
When commercial tenants are satisfied, they're much less likely to change locations. Therefore, tenant satisfaction is a critical component of increasing profits.
Tips for Improving Tenant Satisfaction
1. Start with win-win lease negotiations
Take a hard look at your lease negotiation approach. Do your lease practices focus on exchanging drafts of the lease? Keep in mind that a face-to-face meeting can often speed negotiations and result in establishing a good working relationship.
Consider refining agreement on key issues with a letter of intent. The more informal nature of the letter of intent will make negotiations easier and save everyone's time in preparing the final lease.
2. Streamline service with online systems
Once a tenant is in place, customer service is key to long-term satisfaction. A well-designed online system will allow you to automate everyday tasks, leaving your staff time to focus on more complex customer service issues.
Providing online access to such things as initiating maintenance requests, paying bills and downloading forms and information will save tenants time and frustration.
3. Promote goodwill with effective communications
Prove that you and your tenants are on the same team with good communications. When all parties feel like they are working toward the same goal, it's much easier to establish the type of working relationship that will result in higher tenant satisfaction.
Social media is an excellent way to foster communications. Establishing communities on Twitter and Facebook, for example, gives you an easy way to make announcements, get tenant feedback and resolve problems. Social media can also act as a sales tool when prospective tenants see a great relationship with existing tenants.
It doesn't matter if there is heavy competition for corporate office space in your market or not. Everything you do to improve tenant satisfaction and stand out from your competitors will have a positive impact on profitability.
Besides taking advantage of specific tools and approaches, the best thing you can do is establish an overall goal of exceeding tenant expectations. It will eliminate the cycle of high turnover and improve your property's long-term financial outlook.