Tenant Retention Studies

 Given the competitive nature of real estate, tenant satisfaction is critical to maximizing portfolio returns. The costs to replace a tenant are significant and often include a combination of the following factors: rental loss, marketing costs, brokerage commissions, new tenant improvement allowances and rental concessions. Increased occupancy, decreased expenses, improved asset positioning and increased asset value are some of the benefits that can be attributed to consistent tenant retention practices.

We have a dictum: Optimize Retention-Maximize Returns.

Before offering a tenant retention plan, we study tenants’ perceptions with regards to:

  • Quality to lease price
  • Perceived value of tenant improvements
  • Ease of lease documents
  • Impact of rental incentives
  • Quality of building management services
  • Lessor concessions for future expansion requirements
  • Lessor marketing efforts
  • Tenant intentions regarding lease renewals

The tenant retention plan will provide strategies to optimize tenant retention and will cover areas pertaining to physical condition of building and property assessment, amenities and services provided, rent structure, incentives property management and retention goals. A tenant retention plan should be updated annually.