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77 percent of Global Landlords Currently Lack Visibility in How Tenants Currently Utilize Facilities and Amenities, According to 2022 VTS Global Landlord Report

77 percent of Global Landlords Currently Lack Visibility in How Tenants Currently Utilize Facilities and Amenities, According to 2022 VTS Global Landlord Report
Written by Publishing Team

NEW YORK–(BUSINESS WIRE)–VTSthe commercial real estate (CRE) industry’s leading leasing, marketing, asset management, and tenant experience technology platform, today released the findings from its third annual 2022 VTS Global Landlord Report, which identifies new strategies landlords are utilizing to adapt and win in the new era of commercial real estate. The report is the result of a survey commissioned by VTS from an independent market research firm for today’s landlords across the globe on their priorities and challenges going into 2022.

The report publishes findings from one of the largest CRE surveys ever conducted, with direct insights from 580 of today’s verified office, retail, as well as industrial landlords, 66-percent of which are major landlords with portfolios in excess of 11 million RSF, and Nearly all were senior leaders across their organizations. The findings are broken down into eight key sections within the report — covering strategic business priorities, managing tenant relationships and the return to work, digital marketing, market data and insights — and new this year, core insights into the future of office, retail, and industrial sectors.

With landlords and tenants already actioning on their plans around return to office – technology, data, and insights have never been more critical in shaping how they operate”, said Nick Romito, CEO of VTS. “The COVID-19 pandemic has significantly changed the expectations of tenants, and with occupancy steadily on the rise, it’s important landlords have an integrated platform in place so they can offer their customers a new modern, tech-enabled, experience as they come back to the office while also gaining valuable insights on tenant health and retention.”

Key Takeaways From The Report Include:

Priorities of today’s landlords have shifted. While maintaining and renewing tenants remain at the top of the list, investing in new amenities, services, and technologies to entice today’s office tenants back to the office has gained incremental steam.

  • Top business priorities identified by landlords in 2022 are maintaining and renewing tenants across their portfolios, leasing up vacant space within their buildings, and investing in new amenities and services to entice their tenants back to the office. The top technology investments for landlords this year are tenant experience software, marketing software, leasing management software and data and reporting software.

Managing tenant relationships and the return to office is much easier said than done. Today’s landlords overwhelming insight say that tenant retention and into amenity are top priorities for 2022, yet very few respondents say that they have full clarity into the current state of those relationships or what tenants need from their office spaces in this new era.

  • 94-percent of landlords say that it is important to understand how tenants are utilizing their facilities and amenities, but only 23-percent are sure they have good visibility into that.

  • Only 12-percent of landlords are sure that they have adequate insight into what investments and features tenants require in order to safely return to work.

  • The top features and amenities landlords believe tenants value as they return to the office:

    • 91-percent say seamless occupancy management

    • 90-percent say a tenant experience app

    • 89-percent say on-site amenities

    • 87-percent say easy work order submission and maintenance

    • 85-percent of landlords say community events

    • 85-percent of landlords say a marketplace of perks in the surrounding area

The shift to digital marketing in CRE has been a long time coming, and continues to rise following the impact of COVID-19.

  • 78-percent of landlords say digital marketing, like virtual tours, shortens deal times by helping them reach more qualified tenants.

  • 70-percent of landlords agree that virtual tours have become a necessity before tenants will commit to an in-person tour.

Real time market data is non-negotiable.

  • Incomplete data is the #1 problem landlords have with research tools and data sources they use today.

While the future may feel uncertain, there will always be a place for the physical workspace.

  • Nearly half of landlords say they’ve seen square feet per employee increase by at least 10-percent while tenants’ space requirements have remained about the same or slightly decreased.

  • 64-percent of landlords say that lease lengths for new deals have increased, with 24-percent saying they’ve increased by 3 years on average.

Survey respondents comprised a wide range of portfolio sizes and leasing specialties. 42-percent specialize in retail, 31-percent in office, and 26-percent focus on industrial real estate. The study’s margin of error is +/-4-percent at the 95-percent confidence level.

Download the full 2022 VTS Global Landlord Report HERE.

ABOUT VTS:

VTS is a commercial real estate’s leading leasing, marketing, asset management, and tenant experience platform where the industry comes to make deals happen and real-time data comes to life. The VTS Platform captures the largest first-party data source in the industry, which delivers real-time insights that fuel faster, more informed decision making and connections throughout the deal and asset lifecycle. VTS Data, the industry’s only forward-looking market dataset, and VTS Market and Marketplace, the industry’s first integrated online marketing solution, give landlords, brokers, and tenants unparalleled visibility into real-time market information and the direct connectivity to execute deals with greater speed and intelligence at every point in the planning, marketing, leasing, and asset management cycle. VTS Rise is the industry’s most comprehensive tenant experience solution, offering occupiers, building operators, and visitors an immersive, tech-enabled experience. More than 60 percent of Class A office space in the US and 12 billion square feet of office, retail, and industrial real estate globally is managed on the VTS platform. VTS’ user base includes over 45,000 CRE professionals including respected industry leaders like Blackstone, Brookfield Properties, LaSalle Investment Management, Hines, Boston Properties, Oxford Properties, JLL, and CBRE. To learn more about VTS, and to see our open roles, visit www.vts.com.

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