HqO Survey Identifies Disconnect Between Tech-Savvy Office Tenants and Commercial Real Estate Landlords
Wednesday, March 28, 2018 — Boston, MA — HqO, a tenant engagement platform for commercial landlords, today announced the release of a data-driven report which reveals a significant disconnect between a new generation of tech-savvy tenants and the traditional landlords who own their office buildings. The report, “The State of PropTech: Connected Tenants & Disconnected Landlords,” is based on a survey of 300 professionals working in office buildings in large U.S. metropolitan areas.
Tenants Lack Information About Their Office Building
The survey found that 69 percent of tenants have never interacted with their landlord, and 71 percent of tenants do not even know the name of the landlord of their office building. In some office buildings, landlords might remain hands-off intentionally, positioning the property manager as the face of the facility. However, 69 percent of tenants also responded that they have never interacted with their property manager and 69 percent also do not know their name.
The rise of trendy and heavily marketed coworking space has put the idea of brand awareness on the map for traditional commercial real estate owners and operators, who at one time were hands-off and content with handing over keys to the office and collecting checks.
Outdated communication methods between tenants and property managers and landlords severely limits the ability of even the most active landlords to build an engaged tenant community. 36 percent of tenants use email, telephone, or a web form in order to contact their property manager, while 62 percent never reach out in the first place. No tenants have used a mobile app to contact their property manager, revealing a significant missed opportunity for landlords to engage their tenants in a medium they are familiar with.
Tenants Are Obsessed With Amenities Yet Unsatisfied With Existing Offers
Survey data shows that tenants are extremely amenity driven but only 26 percent felt that there were enough offerings at their current office building. 35 percent of tenants said their office building has no amenities, 31 percent said their office building has some amenities but they wished there were more to choose from, and 6 percent did not know if their office building offers any amenities.
Of all the different types of amenities that tenants have access to, survey data shows preference for fitness & wellness and food & beverage focused offerings. Tenants were given the option to choose up to three amenities and experiences most important to them:
- 62 percent chose fitness & wellness offerings such as onsite gyms, visiting nutritionists, spin & yoga classes
- 62 percent chose food deals, such as discounts to local lunch spots
- 38 percent chose networking opportunities, such as events at their office building with expert panels or free classes and courses for professional development
- 38 percent chose convenience services, such as dry cleaning, pet care or childcare
- 21 percent chose beer and wine experiences, such as wine tastings or happy hours in the lobby of the office building
- 15 percent chose beauty experiences, such as monthly mani/pedis or hair blow-drys in the office building
Tenants Can’t Find Amenities In Their Office Building
For landlords that are dedicating time, resources, and capital to offer office tenants with premium amenities, survey data shows that current methods of notifying and alerting tenants of amenities is ineffective. When asked how tenants learn which amenities are available to them in their office building:
- 32 percent replied that they don’t ever find out
- 30 percent learn from emails or newsletters
- 16 percent learn from word of mouth – other tenants or coworkers
- 11 percent learn from handouts or posters in the lobby
- 9 percent learn from flyers or digital screens in the elevators
When asked how often tenants read flyers, posters, digital screens, or newsletters from their office building, only 15 percent replied that they always read these notifications. 51 percent sometimes read them, 22 percent rarely read them, and 12 percent never read notifications from their landlord.
As attention spans dwindle and consumers spend more and more time on their mobile phones, 74 percent of tenants replied that they would download an all-in-one mobile app that helped them navigate the workday in their office building. The top four features prioritized by tenants in this survey includes mobile functionality that lets tenants:
- Enter the building or parking garage without a key card
- Access exclusive discounts at local retailers near their office building
- Discover upcoming events in and near their office building
- Read up to date information on local transportation and traffic alerts
“The results of this survey validate a lot of what our team knows about millennial professionals who are set to dominate the workforce in a few short years,” said Chase Garbarino, CEO and co-founder of HqO. “We refer to the members of this phenomenon as the “Connected Tenant” because they are tech-savvy, amenity-orientated, and community-driven, with baseline expectations for their workplace experience. The landlords that pay attention and implement tech-enabled amenities and experiences will develop a reputation for helping their high-growth businesses win the war for talent, ultimately creating loyal, long term customers.”
To review the full State of PropTech: Connected Tenants & Disconnected Landlords report, download it at: https://www.hqo.co/state-of-proptech-survey
HqO is a tenant engagement platform that helps landlords optimize their property and provide a workplace experience that tenants will love. Headquartered in Boston, HqO partners with the leading landlords, property managers, and brokers who want to attract innovative tenants, provide a premium experience, and increase overall asset value. For more information, visit https://www.HqO.co or follow HqO on Twitter @HqOapp.