July 13, 2023 - Tasdesen

How to Attract and Retain High-Quality Tenants in Commercial PropertiesHow to Attract and Retain High-Quality Tenants in Commercial Properties

July 13, 2023 admin 0 Comments

There are big ideas when asking how to attract and retain high-quality tenants. Then there are little things.

Big ideas see the bigger picture. Modern amenities. Physical access control. Comprehensive building mobile apps.

The little things are vital as the big ideas -taken for granted and only missed when they’re gone. A tenant goes to work but goes to a drive-thru for a quick cup of coffee. They find a parking space near the building. They go inside, already preoccupied, as they pass by clean corridors.

And these tenants don’t even notice it because everything is well. And everything is well because YOU made it so with good management.

With these in mind, here are ways to attract and retain high-quality tenants, from the bigger picture to the little things.

The Importance of Tenant Attraction and Retention Commercial Real Estate

Tenant attraction and retention play a pivotal role in commercial real estate success. The reason why attraction and retention of high-quality tenants are crucial to the success and growth of commercial real estate is because of the following:

High-quality tenants are reliable. They pay their rent on time for their lease, giving the property financial stability.
Long-term leases are more profitable. Clients who opt for long term-leases are also considered high-quality tenants because they reduce vacancy rates and turnover costs.
The bigger the number of tenants, the better. Of course, having more tenants is profitable. But having more high-quality tenants secures the commercial property’s success for a long time.

So how do we attract this kind of tenant and give them a reason to commit long-term with us? With the changing times, it is beyond being in a desirable location with a well-maintained property. Below are ways of attracting and retaining tenants.

Understanding the Needs of High-Quality Tenants

Understanding the needs of high-quality tenants is crucial for effectively attracting and retaining them in commercial spaces. High-quality tenants have specific requirements and expectations regarding their business environment. CRE (commercial real estate) landlords can tailor commercial spaces to meet those expectations by comprehending their needs.

For example, 2021 commercial real estate statistics have revealed that technology now plays a vital role in tenant attraction and retention. Due to the

Covid-19 pandemic impact, 56% of tenants perceived the shortcomings of their company’s digital capabilities. In another survey, 49% of landlords believe that tenant experience technology would help them improve the tenant experience.

Landlords must also identify the amenities and features that appeal to high-quality tenants. These amenities include state-of-the-art technology infrastructure, flexible layout options, and modern design elements. By doing so, they enhance the space’s functionality and overall tenant satisfaction.

Creating an Appealing Commercial Space

Creating an appealing commercial space is essential for attracting tenants and ensuring tenant satisfaction. Its design and layout play a significant role in shaping its appeal.

In this case, build or renovate the space for tenants you want to lease to. If you want to lease to startups, open workspaces, and modern kitchens speak for their less traditional management. If you want to lease to law firms, large individual offices will attract them to see your property.

Modern design elements and aesthetics can elevate the atmosphere, making the commercial attractive to potential tenants. A thoughtful and efficient layout that maximizes space utilization and promotes smooth workflow contributes to tenant satisfaction. Landlords can create an environment that enhances productivity and comfort by considering natural light, ergonomic furniture, and flexible work areas.

Implementing Effective Property Management Strategies

Implementing effective property management strategies is crucial for successful tenant attraction and retention.

Landlords have been utilizing technology for their property management strategies. For example, 68% of property management companies streamline their processes with property management software. In another survey, 80% of CRE landlords believed that tenants would be interested in using building mobile apps.

With technology, business operations can run smoother and improve the tenant experience.

Furthermore, by prioritizing maintenance and repairs, it enhances its appeal to prospective tenants.

Effective communication is another key aspect of property management. Being responsive to tenant concerns and inquiries helps create a sense of trust and reliability.

Key Factors for Attracting High-Quality Tenants

When tenants search online and visit the property, they are already comparing your commercial space to your competition. Here are ways to fulfill what they want to put their business in.

Location: The Foundation of Tenant Attraction

Location is the foundation of tenant attraction, particularly when attracting high-quality tenants. The significance of a prime location cannot be overstated, as it directly impacts the success and desirability of a commercial property.

High-quality tenants seek locations that offer convenient access to transportation hubs. Easy connectivity to airports, train stations, and major highways allows them to efficiently operate their business.

Proximity to essential amenities, including shopping centers, restaurants, and other businesses, adds value to a location. Such convenience is important to tenants, their employees, and their target demographics.

Offering Desirable Amenities and Facilities

Did you know that CRE properties with diverse amenities will have a 12% increased demand by 2025? High-quality tenants prioritize a workplace that goes beyond the basics and provides exceptional amenities and facilities.

For example, Nuveen Real Estate has invested $40 million to have a new park, fitness center, cafe lounge, and conference rooms.

Providing Access Control and Building Operations

Providing access control (PAC) and efficient building operations is essential for ensuring tenant safety, security, and overall satisfaction. Because of this, 64% of CRE landlords are investing in PAC and visitor management technology.

Access control systems are vital in regulating entry and exit points, ensuring only authorized individuals can access the premises. By implementing robust access control measures, landlords can enhance commercial property security, giving tenants peace of mind and protecting their assets.

Additionally, streamlined building operations contribute to the smooth functioning of the property. By leveraging technology solutions, landlords can automate processes, such as HVAC systems, lighting controls, and maintenance scheduling, optimizing energy efficiency and reducing operational costs.

Ensuring Adequate Parking Access

Ensuring adequate parking access is crucial for attracting and retaining high-quality tenants. Sufficient parking spaces with convenient access demonstrate a commitment to tenant convenience and accessibility. High-quality tenants often prioritize parking availability for their employees, clients, and visitors. Offering reserved parking options further enhances the appeal of the commercial property, allowing tenants to have dedicated parking spaces for their staff.

Furthermore, the pandemic has changed tenants and their demographics’ preferences in mobility and parking. They now prioritize safety through touchless interactions. Touches interactions allow entry, exit, and payments without contact. It also makes the parking journey more streamlined.

Additionally, forging partnerships with nearby parking facilities or implementing efficient parking management systems can alleviate parking challenges and provide overflow options for tenants during peak times.

Best Practices for Retaining High-Quality Tenants

Have Clean and Well-Maintained Spaces

Having clean and well-maintained spaces are crucial for creating a positive environment. Cleanliness is aesthetically pleasing and contributes to tenants’ overall well-being and productivity.

Commercial cleaning is vital. With proper commercial cleaning, the risk of the common cold is reduced by 80%, productivity increases by up to 8%, and employees report 46% lesser sick days a year.

Landlords should establish regular cleaning schedules and enlist reliable janitorial services to maintain common areas and shared facilities. This includes keeping lobbies, hallways, restrooms, and other communal spaces clean and presentable.

Building Strong Landlord-Tenant Relationships

45% of landlords state that the major cause of their stress is tenant-related issues. Aside from fostering trust and open communication, property management processes must be standardized to address tenant concerns systematically.

Responsive landlords who address tenant concerns and provide timely solutions demonstrate their commitment to tenant satisfaction. Flexibility in accommodating tenant needs, such as lease terms or space customization, further strengthens the relationship.

Offering Flexibility and Customization Options

Offering flexibility and customization options is essential for catering to the diverse needs of tenants and supporting their business growth. Flexible lease terms accommodate tenants’ evolving requirements, whether short-term leases for startups or long-term leases for established businesses. This flexibility lets tenants align their lease agreements with their business needs and growth plans.

Additionally, offering customization options allows tenants to modify their spaces to suit their unique preferences and operational requirements.

Whether it’s reconfiguring the layout, adding or removing partitions, or implementing technology infrastructure, providing the opportunity for space modifications fosters a sense of ownership and ensures the space meets the tenant’s specific needs.

Moreover, offering expansion opportunities within the property allows tenants to scale their operations seamlessly without the hassle of relocating.

Enhancing Tenant Experience through Professional Services

Enhancing tenant experience through professional services is a key aspect of creating a favorable environment within a commercial property. Partnerships with reliable and reputable service providers can enhance the tenant experience.
Value-added services such as security, cleaning, landscaping, and maintenance allow tenants to focus on their core business activities.
Thanks to facilities management, they can also enjoy a well-managed and aesthetically pleasing environment. These services contribute to the overall satisfaction of tenants and reflect the landlord’s commitment to delivering a high standard of quality and professionalism.

Contact Us for Expert Commercial Real Estate and Property Management Services

Attracting and retaining high-quality tenants maximizes the cash flow of commercial properties. To do so, you must understand their needs. Having a good location and curb design is a start. Maintaining good relationships and improving tenant experiences come after.

Here at Goodale & Barbieri Company, we understand the value of commercial real estate and property management services. Whether you are searching for a commercial property, or need a maintenance request, feel free to reach out to us.

To learn more information about this, please check out G&B

Performance Management: Maximizing Employee Potential and Organizational SuccessPerformance Management: Maximizing Employee Potential and Organizational Success

July 13, 2023 admin 0 Comments

Performance management is an organizational and employee-level process of accomplishing company objectives. While every C-suite leader can agree to its vital role in the organization’s success, now is the time to improve performance management. Discover its importance, process, and more to boost your organization’s growth.

The Importance of an Effective Performance Management System

Organizational success depends on an effective performance management system. While 98% of organizations agree, 69% rely on annual or bi-annual performance reviews. This has left 64% of employees dissatisfied with the quality of their feedback, with 59% stating that traditional reviews don’t impact their performance.

Through performance management, employees gain clarity on expectations. Regular performance evaluations, goal setting, and feedback enhance their motivation and commitment to achieving desired outcomes.

Moreover, an effective performance management system promotes open communication, facilitates professional development, and enables organizations to recognize and reward exceptional performance.

Due to these benefits, 81% of HR leaders are planning to change the process of their performance management systems.

Understanding the Performance Management Cycle

The performance management cycle happens year-round continuously to grow the organization. It manages both employees, the organization, and their interconnection. Here are the stages involved in the performance management cycle:

Planning

This stage involves goal-setting for the organization and employees to give a clear direction and purpose. Once SMART goals are established, performance plans are made to achieve set goals.

For example, HSBC has developed an HR mobile app that allows employees to access their career development plans and online learning resources. Managers can set goals for them.

Monitoring

Big, overarching goals can be overwhelming. Monitoring helps break them down into sub-goals that are small and manageable tasks. It also maintains motivation and inspires ownership and self-accountability.

Monitoring must be done on a monthly or quarterly basis. It helps managers understand employee perspectives and make improvements.

For example, Deloitte is running a performance management program encouraging frequent managerial check-ins with their team members on their performance and priorities. Its pilot system allowed better communication between employees and leaders to understand the process and progress of their work. By doing so, they have helped improve underperforming employees.

Reviewing

When monitoring is done well, managers better understand their employees’ performance. Reviewing their performance allows managers and employees to evaluate the results and work processes.

90% of performance reviews cause more harm than good when it only focuses on recent happenings and criticism – especially those made by managers who don’t communicate with their employees. Because most traditional reviews are annual or bi-annual, 51% of employees believe their yearly performance reviews are biased and inaccurate.

Therefore, reviews must discuss how well professional goals were met. If there is criticism, solutions must also be offered in turn.

Rewarding

One of the most crucial stages of the work performance cycle, rewards must be merit-based to instill motivation and encourage a culture of consistent growth.

Suppose employees are not compensated for meeting their goals. In that case, they lose motivation to do better in the next year or even lose faith in the organization, believing that the organization does not appreciate their skills and employee value. Without the reward stage, the turnover rate can increase.

Unfortunately, two-thirds of performance management systems surveyed don’t recognize high performers despite 26% of employees having recognition at work as one of the significant reasons to remain in their company.

Therefore, rewarding employees for their advancements is a must. Rewards can include:

Promotions
Company-wide recognition
One-time bonuses
Increased vacation time

Rhetorik | Neuron360-Profiles

Key Components of a Performance Management System

A well-designed performance management system comprises several key components contributing to its effectiveness in driving employee performance and development.

Job Descriptions

Clear and detailed job descriptions outline the roles, responsibilities, and expectations for each position within the organization. Job descriptions provide employees with a comprehensive understanding of their duties and performance criteria.

Performance Standards

Performance standards define the expected level of performance for various job roles. These standards establish benchmarks and criteria against which employee performance will be measured.

Metrics

Performance metrics are quantifiable measures used to assess and evaluate employee performance. These metrics can include key performance indicators (KPIs), productivity metrics, quality metrics, customer satisfaction scores, and more.

Expectations

Performance management systems establish clear expectations regarding performance goals, targets, and objectives. Communicating expectations ensures employees understand what is expected of them and what they need to accomplish.

Performance Feedback

Regular and constructive feedback is integral to a performance management system. Managers provide feedback to employees regarding their performance, highlighting areas of strength and offering suggestions for improvement.

Employee Development

Employee development is a critical component that focuses on enhancing employees’ skills, knowledge, and capabilities. Performance management systems should include training, mentoring, coaching, and career development opportunities to support employee growth.

Performance Improvement Plans

Performance improvement plans (PIPs) provide a structured approach to addressing performance gaps when performance falls below expectations. PIPs outline specific actions, goals and timelines to help employees improve their performance.

Aligning Performance Management with Organizational Goals

Aligning performance management with organizational goals is essential for driving success and achieving desired outcomes. Performance management systems play a crucial role in this alignment by establishing clear goal-setting processes that directly contribute to the organization’s strategic objectives.

Employees can understand their impact on the larger picture by setting specific, measurable, and relevant goals. Regular progress monitoring and feedback mechanisms help employees stay on track and adapt to achieve their goals.

Performance incentives and recognition programs reinforce the alignment by rewarding employees who demonstrate exceptional performance in line with organizational goals. When performance management is closely tied to organizational goals, it creates a culture of alignment, focus, and accountability, propelling the organization toward its desired outcomes and fostering a sense of shared success.

Streamlining the Performance Management Process with Software Solutions

Performance management software allows for automating and streamlining administrative tasks.

With real-time data tracking and analytics, HR leaders can have accurate data to make informed decisions. Such software can also be customizable. Excluding unwanted data gives HR leaders the flexibility to meet organizational needs.

Moving Beyond Traditional Appraisals

The modern approach to performance management involves moving beyond traditional appraisals and embracing a more dynamic and employee-centric process.

Instead of relying solely on annual or periodic reviews, organizations are shifting towards frequent conversations and informal check-ins to provide ongoing feedback and support. While monthly or quarterly check-ins are optimal, this approach recognizes the importance of continuous performance management, where managers and employees regularly discuss goals, progress, and development.

Self-assessment is encouraged, empowering employees to take ownership of their growth and identify areas for improvement. Additionally, organizations value employee input, allowing them to actively participate in the performance management process and share their insights and aspirations.

By moving beyond traditional appraisals and adopting a more inclusive and developmental approach, organizations can foster a culture of continuous improvement, boost employee engagement, and drive overall performance excellence.

Neuron360-Profiles™: Your Performance Management Tool for Employee and Organizational Success

Performance management systems require initial data collection that is accurate and up-to-date. Enter Neuron360-Profiles™, which plugs you into 800+ million profiles refreshed weekly and ethically sourced from hundreds of public sites worldwide. Here is how Neuron360-Profiles can help you:

Employee Data Enrichment: Rhetorik AI models compare, match and enrich your current employee profiles, adding skills and experiences an employer may not be aware of.
Identity Resolution: Automatically verifies and validates company-sized profile collections of their employees.
Career Advancement Tracking: Neuron360-Profiles™ allows you to keep track of their career development by updating your company employee profiles with their independent professional profiles.
Competitive Analysis: You can use Neuron360-Profiles™ to compare your employees’ professional skills to your competitors.

Performance management is essential for your employees and the organization’s success. Therefore, key components of performance management must be implemented in the stages of its cycle. With Neuron360-Profiles, you can improve the tracking and measurement of employee work performance and stay ahead of the competition. View a personalized demonstration of Neuron360-Profiles to start.