16/10/2018
Digitalized data , its availability and now its extended use in predicting future possibilities have added tremendous value in various verticals and contexts.
Lastly seen Data been a undercover strategist for political campaigns asserting its growing value and impact. Commercial real estate owners and facilitators should also catch up on the fast paced bus if not by now.
A saturated commercial real estate landscape with the growing competition and a me-too approach on amenities and offerings which leads to almost non distinguishable buildings makes revenue generation even trickier then ever before and that too with a growth portfolio ask. In the midst of this is the Tenant Experience of the building which will drive key metrics from a Building's Revenue standpoint.
Commercial Real Estate business is turning upside down towards being an User Experience Business demystifying legacy benchmarks and strategies.
Data driven insights of Tenants in terms of their needs, price sensitivity, tenure, business growth and its reflection on the current offerings and placements of Real Estate should mean building the right product for the tenant enhancing his Experience and driving Retention and Revenue alongside. Its like building a custom product with specific needs and non generic asks to full-fill.
Why Data for Tenant Management
To work this at scale CRE owners and Revenue Managers shouldn't limit data driven Insights (Predictive or Prescriptive) for building operations and Maintenance perspective alone. Extension of Predictive Data insights should happen for Finding the right kind of Tenants which will further enhance
Occupancy Rates
Retention
Average Ticket Size/Tenant
Net Promoter Score
This should also mean having the right kind of data which should reflect competition variance on Building attributes,Pricing,Offerings,Occupancy and other external factors varying per Geospatial factors.
What Data should do for you aka outcome?
Beyond simply looking at trends on key metrics objective should be to get as closer to actionable's as possible basis the findings. Some fundamental's expectation should be to see some changes in the actual or projected numbers across key metrics as an outcome of the actionable given from data isights.
Understanding Tenants the Non Data Way : The Humane Way
Understanding tenants and their expectations broadly without a context on Pricing or Offerings should be a good start to build the right connect. This will also help to understand and build the right product while also being very aware of tenants expectations and further drive Retention,Reallocation to Premier/Common plans etc.A next step on tenant improved experience should be to channelize support and means of growing his business and as a reflection your's. An example could be to facilitate community support, growth and networking among buildings tenants while also creating a happy and safe work environment.
Building PnL
Holistically for a portfolio to be optimized Building owners should drive PnL of their buildings as a mix of Bottom-Up and Vertical Approach. Bottom up to build and customize a building as per the needs of the tenants, similarly finding the right kind of tenants which would drive Retention,NPS and overall Revenue growth. From a vertical standpoint data driven insights should mean aligning resources to Growth, Gaps,Vulnerability across portfolio and measuring them systematically and scientifically in a disciplined fashion.
Overall a CRE Portfolio to grow and grow with deterministic growth tenants got to be treated well.
While data can help build the right actionable's : for ex*****on it will be more ask of an Attitude which identifies the real need of tenants, help them drive their business well, communicates effectively and meaningfully and can stay relevant to there asks. Artificial Intelligence can be a back driver for Predictive analytics, insights and actionable's but as a humane differentiator Empathy,Emotion and a Direct Personal Connect with Tenants is the one which will build the real experience and an experience is the one which people will vouch for in the long term : not pricing or amenities.
Looking for solution for your commercial real estate driving the data and analytics bit real time or managing the PnL of overall portfolio. Give us a shout on [email protected] and will revert real time :).
PS : Referring tenant as an generic term for owner/subscriber of a Unit(s) Real Estate.