Anchor tenants for commercial properties in particular want personal contact. They expect personal contact with the asset managers as representatives of the owners and not just with management for the running of the building. It is therefore essential to regularly set aside time for tenant relations, seek out an active dialogue with tenants and discuss current issues with
them as equals. In addition to ensuring a constructive relationship, talking to tenants often generates helpful input for the management of the property.
In this way, potential improvements with respect to individual properties can be identified at an early stage, any problems can be addressed in a targeted manner and potential losses further down the line can be avoided. The tenant also feels that they are being taken seriously because they have a voice. Their interests are taken into consideration in the deliberations
and decisions of the owners’ representative, which is conducive to the tenant’s satisfaction in the long term.
Regular, direct contact also opens up the possibility of receiving valuable information regarding the state of business and any planned changes on the tenant’s side.
This frequently leads to unexpected benefits, such as when a long-standing tenant advises the owners’ representative, purely out of goodwill and years before a contract is due to end, that they do not plan to renew the existing lease.
The owners can thus get a head start on repositioning and reletting the space. Proactive tenant relationship management is also conducive to early contract renewals, which makes the income generated by the portfolio more stable.
Paying a visit to the tenant costs nothing, but shows the tenant that they are taken seriously and appreciated. The social component of a lease relationship is often neglected because it seems to have no direct, quantifiable benefit. But active, professional tenant relationship management helps establish a lasting connection with a tenant that is based on authenticity and mutual respect. This is because the real estate business is a “people business” and tenants are a hugely important stakeholder group.
From my time as a representative of and consultant for international corporations in real estate matters, I am familiar with the tenant’s side of things and know how important adequate tenant relationship management is – not only in dealings with existing tenants but also with potential new tenants. An in-depth understanding of your opposite number’s situation and goals, and studying the space and numbers in advance, help you to prepare for negotiations regarding a lease.
It is then not unheard of for negotiations to result in a win-win situation for both sides thanks to the customisation of the conditions of the lease.
Commercial leases in particular have very long terms, which makes the negotiated conditions of the lease and also the drafting of the contract documents very important. In this case, it is also essential to ensure consistent communication with and support for the prospective tenant. In-depth professional expertise enables you to explain the details of contracts and interface documents clearly in order to avoid misunderstandings further down the line. If the tenant receives competent support in the initial stages of their tenancy, they will already start to build up trust in their landlord, which lays a solid foundation for a long-lasting and constructive business relationship.
Severin Pfefferli, Head Asset Management, SF Urban Properties AG
The work of an asset manager could not be more varied. You are asked to handle a vast array of tasks in connection with the organisation and management of a real estate portfolio and entrusted with a great deal of responsibility at an operating level. One aspect of an asset manager’s work that is important but often underestimated is tenant relations, the details and relevance of which are discussed below.