The home office is a trend that will persist even after the COVID era. Similar to how e-commerce transformed the retail sector, the home office will significantly influence the demand for office spaces. Many tenants are currently contemplating how to handle their office spaces in the future.
In this dynamic environment, the extension of existing leases has become a top priority for asset managers.
According to our latest survey, 92% of European asset managers consider proactive tenant management to be extremely important in the current situation, but only 4% of respondents have a tool in place to fully implement their tenant management.
While property managers engage with tenants on a daily basis, owners and asset managers only interact occasionally, mainly with larger anchor tenants.
In the current state, tenant communication is still managed decentrally. Lease contract data, notes, lease extension discussions, contacts, and tenant surveys are stored in separate systems.
Critical information about tenant satisfaction, future space requirements, and lease extension strategies is not systematically captured and cannot be centrally analyzed. This information may even be lost when an employee leaves the company.
The following objectives can be achieved:
Asset managers can better anticipate the impact of hypothetical events on their portfolio and its performance by utilizing the tenant management module of Tower360. This includes scenarios such as lease downsizing or fluctuations in specific industries.
This proactive approach enables asset managers to take timely and proactive countermeasures. For instance, they can terminate a space or retrieve it from a tenant with lower space requirements, even before the lease expiration, to accommodate a key tenant with higher space needs and retain them in the property or prolong their lease.
Increasing the lease renewal rate enhances revenues (and reduces costs), consequently improving the overall profitability of the property/portfolio and its competitiveness in the market.
In summary, the implementation of the tenant management module in Tower360 leads to increased tenant retention, reduced risks, and higher rental income.