How do you quantify a financial return of tenant experience technology?
At the start of this year, 92% of CRE executives expected to maintain or increase investment in Tenant Experience (TeX). Three months later, we are all navigating a world of uncertainty. One thing is certain: digitization has already occurred across virtually every industry: tech, finance, energy, legal, healthcare, professional services. Real estate is no different and technology has arrived to enable the industry to understand and engage their end users. In addition to building good-will, we are finally starting to crystalize the real cash value of investment in TeX and TeX software.
TeX allows landlords and property managers to have happier tenants, provides more data for landlords to make informed decisions, increase tenant retention, and decrease leasing cycle times. HqO’s TeX platform has been shown to increase a building’s Net Operating Income (NOI) by driving incremental revenues and cost savings to a building’s P&L.
While there are many ways to use TeX in your building to enhance Tenant Experience, we have quantified some of the most tangible effects we see impacting our customers: an increase in tenant retention and a decrease in leasing cycle times.
Check out our calculator to see the impact that partnering with HqO could have on your bottom line. We used proprietary JLL data for rent and vacancy rates in U.S. markets to help calculate the two most tangible impacts that you will see on your P&L:
- Increased benefits from tenant retention – assuming most of your building vacancy is attributed to lease turnover, and that HqO decreases your vacancy through increased engagement.
- Decreased revenue losses from long leasing cycle times — knowing that HqO can decrease your leasing cycle time when used as a sales tool.
Based on very conservative estimates, we believe landlords can see a sizable impact to a building’s P&L from just these two factors. As we think about other benefits from implementing TeX technology — data-driven decision making, increased sense of community within a building, more traffic and sales for retailers — we know the benefits and return are even greater.
Try out our calculator below to see how we could drive bottom line benefit to your building or portfolio!