Innovative Ways of Attracting and Retaining Good Quality Tenants

6242 WordsJul 1, 201325 Pages
TITLE: INNOVATIVE WAYS OF ATTRACTING AND RETAINING GOOD QUALITY TENANTS. BACKGROUND The evolution of the commercial property market with trends like shorter lease lengths and competition for new tenants in the market for example, means that landlords can no longer rely on traditional ways of attracting and retaining tenants. According to Rasila, H. (2010), “the competitive environment is changing and the real estate owners are seeking new ways of differentiating themselves from competitors”. Traditionally, landlords and landlords’ agents over the years have relied on incentives such as rent-free periods, fitting out and premiums to attract and retain tenants. According to Rasila, H. (2010), “traditionally, the business logic in renting…show more content…
Appel-Meulenbroek, R. (2008) suggests that there are factors competitors use to ‘pull’ tenants, factors that ‘push’ tenants away and factors that ‘keep’ tenants in their current building. According to Dogge (2002) as cited by AppelMeulenbroek, R. (2008), there is a high tendency for a tenant to be loyal to his landlord and not ‘move’ if he is satisfied with his landlord. Appel-Meulenbroek, R. (2008) goes on to say that, in order to retain good quality tenants, it is important to identify these ‘keep’ factors. The research states that although other studies have been carried out on needs of occupants to help real estate agents or government policy making and relationship management from the point of view of corporate real estate management, scarcely any attention has been given to management directions for landlord to increase tenant loyalty. The research concludes that “…retaining a tenant requires more relationship efforts than competing through offering a good price/quality ratio”. AppelMeulenbroek, R. (2008) study is however limited to two multi-tenant building in a particular region. The study was further restricted to small companies with relatively young leases. Perhaps the study should have included medium and large companies with mature leases to get a broader overview. In addition, the research was limited to just

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