Landlords must focus on customer service

NEVER before has customer satisfaction been so high on a landlord's agenda says one of King Sturge's agents, Anna Kirk, as lease lengths have shortened and tenants, in the main, hold the balance of power.

Occupiers will now choose between "good" and "bad" landlords and how a landlord enters into and manages their long term relationship with tenants will be some of the key market differentiators in a difficult market.

Ms Kirk, who is advising on a cross section of the region's commercial property and development schemes, says she knows only too well the importance of listening to new and potential occupiers.

She said: "While the commercial property market is showing signs of recovery in The East Midlands, the current conditions still present landlords with a whole new set of challenges.

"With shorter lease terms comes the opportunity at every break or renewal for an occupier to leave the premises, although in reality they may prefer to stay.

"However, the threat is always there and while they may not have any intention of leaving, they have the leverage and bargaining power to call the shots.

"For this reason, service is now next to rent on an occupier's tick list. Far greater emphasis is put on a landlord's flexibility and responsiveness and those who fail to deliver on customer satisfaction will probably lose out." Ms Kirk says schemes in prime locations will always tip the balance of power slightly in favour of the landlord

However, the pressure on landlords to avoid a scheme picking up void rates does have a bearing on the deals they are willing to do and incentives they are willing to offer.

The abolition of empty rates has also had a massive impact on the market and a landlord is more likely to make a commercial decision and be more flexible in its terms, than attract losses on a building.

"Of course, it's always good business practice to build and maintain a good relationship with occupiers," says Ms Kirk. "By keeping close to them and listening to their needs, you can respond quickly to their requirements.

"By being responsive, occupiers will also see landlords as more approachable and willing to discuss their future requirements, be they contraction or expansion.

"Either can present an opportunity for a more creative landlord looking to maximise their assets."

Source: http://rss.feedsportal.com/c/32715/f/503354/s/14b709ee/l/0L0Sthisisnottingham0O0Cnews0CLandlords0Efocus0Ecustomer0Eservice0Carticle0E35363580Edetail0Carticle0Bhtml/story01.htm

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