Landlords Seek a ‘Hospitality-Like Experience’ for Tenants

Article originally posted on Globe St. on March 15, 2023

Retention is a Primary Objective as Declining Market Demand has Shifted Power to Tenants.

A majority of landlords (57%) say managing the financial impact of the current economy is a top priority in 2023, according to the 2023 VTS Global Landlord Report, and a large majority said the technology will help them to do that.

Some 86% of landlords said that technology will help them to advance tenant relationships, prioritize tenant retention, and invest in extras that support positive tenant experiences.

Creating a “hospitality-like experience for tenants on-site in buildings” is favored by 91% of survey respondents.

As for positive tenant experiences, touchless tech is imperative, many said, along with food and beverage options, tenant experience technologies, outdoor communal areas, and building management systems.

Retention is a big key among objectives as well, as declining market demand has become an issue as power is now in the hands of tenants, VTS reported.

“Landlords are taking a serious look at how their portfolio compares to what is available on the market and what tenants now expect,” according to the report. “Given the financial impact of the current economic climate, retaining existing tenants is a top focus and elevated experiences are becoming table stakes, and tenants are becoming more desensitized to what used to be awe-inspiring.”

Nonetheless, more landlords don’t have insights into tenant attrition or know what tenants are looking for from their spaces, or have insight into the risk that their tenants could soon be leaving.