An explorative study was conducted in the Netherlands about ten years ago to see what factors “pull” a business tenant into renting space in a facility and what “keeps” them there once they have moved in. While the survey is a decade old, most of what the researchers found is still relevant today.
The study involved two buildings in two different cities in the country.
In Building A, the researchers conducted 18 interviews with the tenants. In Building B, 20 interviews were conducted. The study was not only looking into the “pull” and “keep” factors, but it was also designed to advise investors on whether to purchase or not purchase a property. Once the interviews were completed, the researchers scored the responses.
Here are some of the findings:
The key deciding factors for whether tenants planned to stay in a building were determined as follows: the possibility of renting more space in the building (55%), facility services-which included how well the facility was cleaned and maintained (53%), parking availability (66%), proximity to the center of the city (50%), and “reachability,” which referred to how easy it was to commute to the facility (50%).
High on the list of pull factors were: its maintenance state, which included how clean the facility was (51%), that the facility met overall quality demands (49%), age of the property (42%), and overall appearance, which included both the interior and exterior appearance of the property (39%).
Other factors were also considered, such as crime and safety in the area, proximity to the tenants customers, and nearby nuisances, such as noise.
The researchers also found that keeping the property up to date technically was a critical factor in both keeping and pulling tenants into the property.
In many ways, there were no surprises in what the researchers concluded. What apparently keeps tenants in a property and what pulls new tenants into the facility are virtually all building-related. The take away for building owners is that their efforts should focus on ensuring that the property is technically current, and that it is physically updated and remodeled as needed. For managers, the building’s appearance is paramount. The facility should always look clean and be well maintained.
Ron Segura has over 45 years of experience in all segments of the professional cleaning industry including ten years as Manager of Janitorial Operations for Walt Disney Pictures and Television. To contact him, call 650-315-8933.
Study: “Managing Keep” Factors of Office Tenants to Raise Satisfaction and Loyalty,” by Rianne Appel-Meulenbroek, published in Property Management magazine, February 2008