The Impacts of Commercial Lease Structures on Landlord and Tenant Leasing Behaviours and Experiences

Halvitigala, Dulani; Murphy, Laurence; Levy, Deborah

doi:10.1080/14445921.2011.11104342

Cited by 6 publications

(5 citation statements)

References 22 publications

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“…Occupier satisfaction was found to be highest in the USA (4.09/5) and lowest in South Africa (3.43/5). The study found that tenants occupying the largest amount of space had higher overall satisfaction, supporting the findings of the UK OSI studies (KingsleyLipseyMorgan and IPD Occupiers, 2008), and other research that has demonstrated that larger organisations have higher levels of satisfaction, apparently as a result of obtaining better terms because of their clout (Crosby et al , 2006; Halvitigala et al , 2011). Interestingly, this view is not supported by the recent study into the satisfaction of office occupiers in the UK (British Council for Offices and RealService Ltd, 2015) in which respondents felt that “it is not the case that the big occupiers are getting the best service and smaller occupiers are losing out” (p. 16).…”

Section: Review Of Previous Researchsupporting

confidence: 81%

Determinants of satisfaction amongst tenants of UK offices

Sanderson

Edwards

2016

JCRE

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Purpose-Corporate Occupiers require offices and services which meet their business needs, whilst landlords must attract and retain occupiers in order to maximise occupancy and rental income. The purpose of this research is to help landlords and corporate occupiers understand each other better, in order to achieve a mutually beneficial relationship. Design/methodology/approach-This paper analyses interviews with 1334 office tenants in the UK, conducted over an 11-year period, to investigate determinants of occupier satisfaction, loyalty and advocacy. Structural equation modelling and regressions are performed using respondents' ratings of satisfaction with many aspects of occupancy as explanatory variables. The dependent variables include satisfaction with property management, value for money, overall occupier satisfaction, lease renewal intentions and occupiers' willingness to recommend their landlord. Findings-The aspects with most impact on occupiers' satisfaction are the office building itself, its location and amenities, and also communication with their property manager, a belief that their business needs are understood and the property manager's responsiveness to occupiers' requests. Occupiers' loyalty depends mainly upon feeling that their rent and service charges provide value for money, an amicable leasing process, the professionalism of their property manager and the Corporate Social Responsibility of the Landlord. 'Empathy' is crucial to occupiers' willingness to recommend their landlord, and clear documentation and efficient legal process improve occupiers' perception of receiving 'Value for Money'. Research Limitations-The sample is skewed towards occupiers of prime office buildings in the UK, owned by landlords who care sufficiently about their tenants to commission studies into occupier satisfaction. Practical implications-This research should help to improve the landlord-tenant relationship, benefitting the businesses that rent property and helping building managers understand where to focus their efforts to achieve maximum effect on occupier satisfaction, loyalty and advocacy. Originality/value-There has been little academic research into the determinants of satisfaction of occupiers of UK commercial property. This large-scale study enables the most influential factors to be identified and prioritised. Research Questions This research aims to improve the mutual understanding between landlords and corporate occupiers, by addressing the following questions:  Question 1: What do corporate occupiers consider to be the characteristics of the ideal landlord?  Question 2: What are the determinants of occupier satisfaction?  Question 3: What are the determinants of occupier loyalty  Question 4: What are the determinants of landlord reputation and occupiers' willingness to recommend their landlord or property manager? Review of Previous Research It is not possible to measure Property Management Service Quality directly, because quality is in the "eye of the beholder". Rather, quality has to be inferre...

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Section: Review Of Previous Researchsupporting

confidence: 81%

Determinants of satisfaction amongst tenants of UK offices

Sanderson

Edwards

2016

JCRE

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“…One tenant requirement that has put significant pressure on property managers to improve their performance is the demand for flexibility. Long-term leases have historically been the norm in developed real estate markets because they provide landlords with greater cash flow stability across economic cycles than short term leases (Bannister, 2008; Crosby et al , 2006; Edington, 1997; Halvitigala et al , 2011). However, this is starting to change.…”

Section: The Growing Importance Of Customer-focused Property Managementmentioning

confidence: 99%

“…An activity that does require a personal touch is making sure tenants understand and appreciate what they are getting for their money. This is important in all situations, but perhaps never more so than when landlords assess service charges on top of rent (Halvitigala et al , 2011). Poorly understood service charges can lead to conflicts with tenants that stand in the way of customer-focused property management.…”

Section: Best Practices In Customer-focused Property Managementmentioning

confidence: 99%

Recognizing and realizing the value of customer-focused property management

Sanderson

Read

2020

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PurposeThe purpose of this paper is to increase awareness of the value that can be derived from embracing customer service and ensuring tenant satisfaction.Design/methodology/approachThis literature review synthesizes the results of research conducted around the world to examine the value proposition of customer-focused property management. The literature was identified through a search of academic journal articles and industry publications, together with the authors' experience of working with industry practitioners. Drawing on these sources, the authors identify five emerging trends that are likely to make customer service an even more critical part of property managers' jobs and propose best practices to help property managers actualize the benefits.FindingsThree themes emerge from the literature. First, property managers can add significant value to real estate portfolios by delivering high-quality customer service to tenants. Second, emerging trends in the real estate industry are creating new opportunities for property managers to participate in the value creation process. Third, there are a number of steps property managers can take to leverage customer service to benefit the real estate investors they represent.Practical implicationsReal estate investors, and the property managers working on their behalf, can realize the advantages of customer-focused property management by adopting a series of straightforward best practices, which are discussed in the paper.Social implicationsThe trends identified and practical steps proposed are likely to be all the more relevant in the aftermath of the Covid-19 pandemic.Originality/valueThis research should increase awareness of customer-focused property management and the mechanisms through which it can affect real estate returns. The ten best practices proposed should help property managers deliver effective service to tenants and achieve the associated financial benefits for investors.

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“…The landlord – tenant relationship is typically perceived as being confrontational (Crosby et al , 2003; Halvitigala et al , 2011). The role of the landlord’s leasing agents and property managers has been to “maximise rents, with rapid recourse to legal process to resolve disputes between landlord and tenant” (Sanderson, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%