In the commercial real estate (CRE) industry, detailed and accurate data on tenant behavior and preferences can help CRE landlords:
- tailor retention strategies;
- invest with confidence; and
- make smarter business decisions that can increase a building’s net operating income (NOI).
However, only 28% of major CRE companies actively use data to improve the tenant experience, according to a report from KPMG. This means that many in the CRE space are missing out on ways to optimize their businesses and differentiate themselves in today’s competitive landscape.
Read on for how to increase NOI in commercial real estate by leveraging tenant experience data, according to research from HqO.
A Pulse on Tenant Sentiment & Satisfaction
Many CRE landlords use annual surveys to gauge how tenants feel about their buildings. But a survey once a year won’t help you gather the critical insights you need to course-correct in a timely manner. That’s why smart CRE landlords are complementing annual surveys with ongoing pulse surveys and polls to compare tenant sentiment to tenant space and amenity usage in real time.
How to increase NOI in commercial real estate comes down to access to real-time data on tenant preferences and behaviors. When harnessed correctly, it can directly boost NOI.
For example, if there is inconsistency in what tenants say they want (sentiment) and the space and amenities they actually use (usage) throughout the year, CRE landlords can use this insight to make decisions that improve tenant satisfaction and increase NOI.
Make Smarter Investment Decisions
When property teams determine their investment strategies, it’s all guesswork without insights gleaned from data. When commercial property teams have a full-picture understanding of what’s happening in their buildings, they can:
- make smarter business decisions that lead to an increase in tenant satisfaction;
- optimize the use of their available capital by investing in the things that drive tenant satisfaction and retention; and thereby
- boost NOI.
What Data Do You Need?
There are several key data points CRE landlords can measure to better understand tenant sentiment and building usage, according to HqO. This data is key to understanding how to increase NOI in commercial real estate:
- Visitor data can help you understand how each tenant’s visitor counts are changing daily.
- Space utilization data helps you determine which spaces are or aren’t being used so that you can focus investment on popular spaces that can lead to higher tenant satisfaction, retention, and thus a healthier return on investment.
- Service and amenity utilization data, similar to space utilization data, tells you which amenities are or aren’t being used so that you can focus your investment on the ones being used and save money on the ones that aren’t.
- Tenant engagement data helps you understand which tenants are using engagement tools the most and who may need more education. (Remember, the data you capture from these tools, such as your tenant experience mobile app, are critical to understanding tenant sentiment and usage. So, it’s important your tenants use them.)
By gathering information on these data points, CRE landlords can gain a full picture of the tenant experience across their portfolios.
How to Increase NOI in Commercial Real Estate
Tech is a CRE landlord’s competitive differentiator when it comes to how to increase NOI in commercial real estate. It can help win back the commute. Implement tech tools that integrate best-in-class solutions for tenant experience and building operations to empower you to engage with your tenants and meet their needs.
Every event registration, booked resource, and tenant survey sheds light on what your tenants love — and what they don’t. Use this real-time data to remain proactive about your programs and office building amenities that drive NOI with the broadest, deepest features for commercial property teams.
Want more data on how to increase NOI in commercial real estate? Download the free HqO report from Building Engines, “How CRE Landlords Can Leverage Tenant Experience Data to Boost NOI”
