It’s no secret – landlords are under intense pressure. In October, JLL reported that overall office vacancy climbed to 21%, a multi-decade high. However, some operators are weathering the storm through this market transformation – many of whom continue to see decreased turnover and increased rental rates. But how? They have shifted their focus to the experience of their end-users, and are enabling their properties to stand apart from the competition by not only offering engaging real estate experiences – but by proving it to tenants and investors alike through their properties’ REX Scores.
What is the REX Score?
The REX Score, a product of HqO’s new Intelligence product suite, is the quality measure of end-user experience within a physical space, reflecting employees’ workstyles, preferences, and overall satisfaction. Generated through data from HqO’s REX Assessment, a brief survey that gathers end-user feedback on real estate experience, the Score shows how engaged tenants and employees are within a property. It is then used to benchmark experience against other properties so landlords know exactly how their asset stacks up against the competition.
What will your REX Score do for you?
1. Attract & Retain Tenants
The higher a property’s REX Score, the more it is meeting the expectations of its occupants. In turn, satisfied tenants are more likely to stay and renew their leases, and similarly, positive end-user experiences attract new tenants. In essence, a high REX Score positions owners and operators to meet and even exceed their occupancy goals.
2. Generate Revenue
A property with a high REX Score is likely to have better revenue potential, as satisfied tenants are more likely to pay higher rents. Additionally, the property’s reputation may attract new tenants, making it a more sought-after property, allowing for higher new rent rates. And finally, retaining existing tenants reduces the associated costs of finding new tenants.
3. Get Your Property on the REX Index
Every REX Score will be added to the REX Index (REXi), the industry’s first global real estate user experience indicator, benchmark, and tool for certifying and exploring properties through the lens of people’s experiences. When it launches in 2024, REXi will allow tenants to measure and compare the buildings or spaces they lease against the best in the world. Landlords with low scores or not on the REXi at all will be missing a major opportunity to set themselves apart from the competition, and may get overlooked during the leasing and renewal process.
How do you get your REX Score?
The first step to generating your REX Score is to distribute the REX Assessment to your tenants. Based on the proven methodology of Leesman, an HqO company and the industry’s most trusted workplace experience data source and benchmarking framework, this 10-minute survey quantifies employees’ workstyles, preferences, and overall satisfaction within a physical space. Questions are broken out into three categories:
- Impact: assess the impact the workplace has on various aspects of the organization.
- Activities: assess how important workplace activities are to the employees and how well supported they feel when doing them.
- Features: assess the importance of service and physical features in the workplace and how satisfied employees are with them.
Once a statistically significant number of assessments have been completed, your property will receive a REX Score. HqO REX experts are available to help you understand your REX Score and create a REX strategy for improving the score and related experiences.
HqO’s REX Platform
The REX Score is just a piece of HqO’s new REX Platform – an asset-agnostic, cross-property suite of powerful applications and services that foster best-in-class, dynamic end-user experiences. The platform assesses the health and performance of a customer’s experience within a physical space, while providing the necessary tools for operators to manage and optimize it, all from one central location.