Why Effective Tenant Relations Matter at Industrial Properties
Similar to the office sector, multitenant industrial properties require a hands-on approach and superior service. Pictured here is Inverness Exchange, located at 14 Inverness Drive East in Englewood.
Much has been written about the importance of office owners and managers developing strong relationships with their tenants. Those stakeholders who have made positive tenant relations a priority often reap the benefits of these connections in user loyalty, which can lead to reduced vacancy rates and encourage tenants to remain at a property longer.
The focus on offering the amenities and services office users have come to expect has sharpened. But this trend is not exclusive to the office sector – industrial tenants also have come to expect a certain level of amenities and services at the properties where they lease space. This highlights the significance of tenant relations in the industrial sector, particularly in multitenant industrial properties.
With a history of outperforming single-tenant big-box properties, multitenant industrial buildings typically house a mixture of warehouse and office spaces in suite-style units. They tend to attract entrepreneurs, startups and small businesses, among other businesses. Property managers often are on the front line and are the “boots on the ground” in nurturing these relationships to encourage retention and aid in attracting new tenants.
That said, because industrial properties tend to be very costly to build, few developers are building them, and most property managers are not trained in effectively managing them.
So why do effective tenant relations matter and how can property managers decrease rollover and ensure a property’s long-term stability?
Superior service and a hands-on approach. Similar to the office sector, multitenant industrial properties require a hands-on approach and superior service. These properties have lease terms that move more quickly and require sophisticated managers who can address the needs of a variety of tenants. This differs from big-box industrial properties where managers tend to be more passive or manage properties from afar.