_The new age of property management is here and we need to adapt or face extinction

Supporting Tim Robinson's blog which looked at the initiatives being implemented by Knight Frank's PAM team to enhance the customer experience, The British Council for Offices (BCO) recently released practice guidance for office service standards and customer experience.

The report details the “tectonic shift” from office space viewed as a commodity to office space considered a service; property managers as well as landlords will need to adapt to this new way of thinking and creative approach to delivering a service.

The BCO report states that occupiers are calling for nothing less than a revolution in the way office space is managed. Historic relationships between owners, managing agents and occupiers no longer fit the way fast moving businesses work in a consumer-led world.

Apparent from the below graph is the 'new order' in property whereby every individual involved in property is a customer. Property Managers and PAM's specifically cannot afford to ignore this step change.

There are a growing number of new players delivering excellent customer experiences that have redefined the industry by raising standards and expectations. 

For example, WeWork and other managed office providers create inspiring environments at every touchpoint that increase productivity, innovation and collaboration.

This coincides with consumer demand for new ways to occupy office space as a result of changing patterns of employment and the need for occupiers to provide a vibrant, exciting place of work for staff.

Flexible leasing arrangements also allows occupiers the freedom to move according to current or future needs. And while serviced office space is normally more expensive than traditional office space, it reduces the need for occupiers to search for a suitable 'permanent' location, engage lawyers to draft agreements, appoint contractors to fit-out the space and navigate slow and sometimes unengaged landlords and property managers.

There are a growing number of new players delivering excellent customer experiences that have redefined the industry by raising standard and expectations

The managed office service takes the hassle out of renting property and provides an environment conducive to this new way of working. 

The business case for providing great customer experience drives the 3R’s of real estate – Revenue, Retention and Reputation. 

Landlords and property managers that want to thrive in this new reality will therefore need to develop a new mind set and adopt new skills and management tools in order to compete with this increasingly popular way of using office space.

The BCO report states that in order to do that, property managers must use the instruments more commonly found in the delivery of consumer products and services.

So, what can we do to ensure our clients and occupiers are receiving this customer focused approach to property?

Below are five basic steps we can follow to instigate the change:

1. Increase the use of ‘community tools’ and service partners such as Equiem across the managed portfolio to create a 'community-led' environment. 

2. Connect with occupiers through tenant engagement and satisfaction surveys on a regular basis

3. Improve communication with all stakeholders in a building  

4. Take into account the benefits of customer journey mapping in our buildings

5. Aim for operational excellence from leasing to occupation, facilities management, property management and wellbeing. 

6. Review the IT infrastructure within buildings to help ensure tenants are able to connect to their frameworks with ease and speed.

The steps above will help property management teams meet the expectations of the future modern occupier and deliver on the new approach to occupying office space.

Crucially, we need to fix the inherent service disconnect between the provider and customer to adopt a sustainable customer focused business model. Only then will we be able to compete with the new players disrupting the sector. 

Charlotte provides property and asset management services to a wide range of clients from both institutional and private clients, incorporating all asset classes.