How do you manage your space?
Do you rely on architects to get floor plans and remeasure your building when needed? Since architects have other priorities, simply getting a floorplan from them can take weeks. And, once you get it, you need costly CAD software to read it.
If potential tenants want floorplans before they move in, waiting weeks for a simple floorplan could cause them to go with another building – costing you revenue. And, if you don’t regularly remeasure your space, you could be losing revenue by not billing tenants for the maximum RSF.
How can you manage your space better to increase revenue and win over potential tenants?
By using space management software. With space management software, you can easily pull up floorplans whenever you want – without the weeks of waiting. It’s simple to read and edit floorplans without expensive CAD software. And, you can measure your space according to the latest measurement standards – so you have maximum RSF.
Wondering if space management software could be right for your property? Here are the top 3 benefits of using space management software.
1. Maximize RSF
One benefit to using space management software is that it can help you gain RSF – and increase your building revenue.
When was the last time your building was measured? And, what measurement standard did you use?
If you used an outdated measurement method, your building could have less RSF. With BOMA measurement systems before BOMA 2017, things like exterior amenities and vertical penetrations aren’t included in your RSF. With older BOMA methods, like BOMA 1996, you’re missing out on RSF increases.
Without updated building measurements, your tenants could be getting areas of your building free – because the square footage isn’t included in their rent. This is great for tenants – not you. This means you’re losing revenue – and not maximizing your building’s earning potential.
Space management software makes it easy to remeasure your building with the most updated measurement standard. You don’t have to rely on slow architects who have other priorities. Instead, you can measure your building when you want. So, you can maximize your RSF – earning more from your tenants.
And, having more rental revenue helps you increase your NOI. Your building will still have the same expenses. But, with more RSF, you’ll earn more from your tenants. So, you’ll have a higher NOI, without doing anything other than remeasuring your space.
An important benefit of space management software is that it can increase your RSF – and NOI.
2. Minimize Vacancies
Along with increasing your RSF and NOI, space management software can help you minimize vacancies.
With so many tenants, it can be hard for your leasing team to stay on top of expiring leases. If your team doesn’t realize that tenant leases are about to be up, they won’t begin talks with tenants to persuade them to stay in your building.
So, you’ll likely lose tenants who are on the fence about leaving. The other buildings they talk to can promise them amenities and great service. In contrast, your building is radio silent – showing a lack of concern about the well being of tenants.
And, especially if you have many smaller tenants, you have more leases rolling over each year. Instead of having to manage a few large tenants, you have to keep track of a lot of smaller tenants. With so many different leases, your team has to stay on top of many moving parts to prevent vacancies.
So, even though your building is occupied today, it’s easy to have many vacancies unexpectedly. If your team can’t keep track of all the leases that come up each year, you could be left with a high vacancy rate as many tenants leave at the same time.
This has the potential to negatively impact your rental revenue because you’ll be earning it from fewer tenants. And, retaining current tenants is cheaper than getting new ones. So, your expenses will go up as you try to find new tenants.
Space management software can make it easy for your lease team to stay on top of expiring leases. Instead of having to search through file cabinets and computer folders for leases, they can look at an interactive plan of leases in your building. Segmented by the tenant, floor, or the whole building, it’s easy for your team to see when leases end.
That way, they can be on top of tenant retention. And, your building can stay full – increasing your revenue.
3. Expedite Leasing
Another benefit of space management software is that it can speed up the leasing process.
When prospective tenants are deciding whether to move into your building, they often want to see floor plans and explore changes they might need. But, traditionally, to get those floor plans, you have to contact your architecture firm. Since they have other priorities, it can take them weeks to get back to you with floorplans.
In that time, your prospective tenant could already have seen floorplans at other buildings. And, decided against your building because your team responds slowly. If you’re slow during the leasing process, tenants will think you’ll be slow at everything else they need if they move in.
Because of the delay in getting floorplans, you’ve lost a potential tenant and any revenue from them. So, your leasing team has to expend effort and resources to go through the whole process again. During this time, your space sits vacant. And, your building fails to reach it’s earning potential.
Space management software can solve this problem by making it easy to access floorplans. In just a few minutes (or even faster), you can pull up the floor plan that a potential tenant wants to see. And, you can alter it right there for them. So, they have an idea of what space could look like.
Plus, it’s simple for your leasing team to create marketing floorplans to attract more tenants. This means you can fill vacancies faster, with minimal lag time. So, your building can always be earning as much as possible.
Space management software can shorten the leasing cycle. That way, you can get tenants in quickly and maximize building revenue.
Wrapping It Up
Although managing space seems simple, it’s often a complicated process. Keeping up with the newest measurement processes can be time-consuming. And, it can be difficult to get an expert to remeasure your building for you. Plus, it can be hard for your leasing team to visualize your space to keep on top of expiring leases and attracting new tenants.
But, if you aren’t managing your space properly, you could be losing revenue. Without the latest measurement methods, you can’t maximize your RSF or tenant rent. And, your lease team could be missing leases that are ending, hurting tenant retention. Plus, leasing time could be so long that prospects go with other buildings,
However, space management software makes it easy to stay on top of space management. It makes remeasuring according to the latest methods a breeze. And, your leasing team can quickly see when leases end and work to retain tenants. Your lease team can also speed up the lease to deal time with simple to access floorplans and changes.
That way, you can increase building revenue by maximizing tenant rent, reducing vacancies, and having a faster leasing process.
Looking for a space management software? Consider using Prism. With Prism’s space management module, you can uncover additional RSF, stay on top of leases to prevent vacancies, shorten least to deal time, and more.
