Is your space management strategy hurting your revenue?
If you manage your space poorly, then it could be. Managing your space properly enables you to maximize your RSF and position you for a better NOI. And, optimal space management helps you stay on top of expiring leases to minimize vacancies. Plus, you can speed up your leasing process – earning you more revenue.
Want to know if your space management is hurting your revenue – and how space management software can help?
Read on to find out.
1. Lost RSF
Failing to maximize RSF is just one of the ways poor space management is hurting your revenue.
Measuring and calculating your space is one important part of space management. However, if you don’t use the latest calculation standards or measure properly, you aren’t maximizing your RSF. This means your tenants are getting space for free since they don’t have to pay rent for all their square footage.
To maximize your tenant revenue, you need to calculate your space with the latest measurement standards. BOMA 2017 is the latest BOMA standard. It has the option for a single load factor. And, it includes previously uncounted building features – like vertical penetrations and exterior amenities.
Another standard is REBNY, which is only available in New York and a select few other markets. REBNY aims to maximize your RSF. So, when using this standard, you’ll usually have more RSF than your gross square footage.
But, recalculating your space according to the latest measurement standards can be time-consuming. One option is to hire an architecture firm to recalculate for you. However, architecture firms are slow and expensive – making the process more frustrating.
An easier way to manage your space to maximize RSF is to use space management software. With this software, it’s easy to recalculate your space with the help of experts. So, you don’t have to spend hours trying to learn new measurement standards or weeks waiting for architects. Instead, you can get your space recalculated quickly and start earning more revenue.
2. Lack of Lease Visibility
Another way poor space management is hurting your revenue is through a lack of lease visibility – which leads to increased vacancies.
Space management includes knowing who is using your space at any given time and when every tenant’s lease expires. However, if you have poor space management, it’s likely challenging to stay on top of leases.
You likely have leases stored in filing cabinets, local computer files, and other hard-to-access and share places. This makes it difficult for your leasing team to get the info necessary to stay on top of expiring leases.
And, your leasing team has so much to do. So, they don’t have hours to spend each week sorting through leases to find the ones expiring soon. This results in your leasing team missing lease expirations – causing unnecessary vacancies.
To fix this, you could hire an additional lease team member whose job it is to manage expiring leases. But, hiring additional team members is expensive.
An easier way to get visibility into lease expirations is to use space management software. With this software, you can easily see when leases are rolling over with dynamic stacking views, a portfolio dashboard, and interactive floorplans. And, you can create lease visualizations by building, floor, or even by a tenant.
That way, you always know when leases are rolling over. This allows your team to follow up with tenants to see what they can do to make them stay – like improving amenities or offering more or less space. If tenants don’t want to stay, staying on top of expiring leases also helps your team start marketing earlier, which reduces the risk of a lengthy vacancy.
3. Slow Lease to Deal Time
Along with losing RSF and not knowing when leases roll over, a slow lease-to-deal time is another way poor space management could be hurting your revenue.
When prospects are deciding between buildings, they’ll often want to see floorplans of their potential space. If you have poor space management, getting these floor plans can be challenging. You have to contact an architect to get the correct floorplans – which can take weeks. And, you need expensive CAD software just to read the plans.
If prospects want to see different space scenarios, you have to go through the whole architect process again. By that time, your prospect has probably already chosen another building with a faster response time.
So, you need easier and faster access to floorplans and updates. While you could hire an in-house architect to manage floorplans, that can be costly. A better way is to use space management software. With this software, you can easily view the most up to date floorplans in seconds. And, you can make scenario updates – without an architect.
So, you can respond to prospect and tenant requests for floorplans and what-if scenarios in minutes. Having this great customer service can help you close more deals – reducing vacancies and increasing your revenue.
Wrapping It Up
Managing your space well is crucial to a well-run and profitable building. But, if you’re not managing your space correctly, it could be hurting your revenue.
Poor space management makes it hard to maximize RSF and lease values. And, not managing your space well makes it difficult to stay on top of leases to prevent revenue-reducing vacancies. Additionally, poor space management makes it hard to convince prospects to choose your building in the first place.
To manage your space better you need to use the latest measurement standards, increase lease visibility, and decrease prospect wait time. All of which space management software can do.
Looking for modern space management software? Give Prism a try. Prism’s space management module has experts to help remeasure your building, lease visualizations, easy to access floorplans and more.
Wondering how space management software can make your team more efficient, even as they work remotely? Check out our eBook to learn three ways to boost efficiency while remote with space management.
