Case studies

April 1, 2014

Tenant Retention

The biggest risk to landlords is tenant roll and the expense associated with lease-up. Downtime, tenant finish, rent abatement and brokerage commissions can add up quickly, cannibalizing returns in the process. Since inception, HCRE has carefully tracked the decision making process that faces all tenants as their lease matures.

Effects

As a commercial real estate company, we understand that, in some cases tenant relocation is unavoidable.

During HCRE’s annual board meeting, the board of directors is presented with a breakdown of occupancy, which includes the most important measurement of our company: the retention rate. We analyze annual retention by property, portfolio and trending retention from inception.

Three steps to retention

  • Once a week, the HCRE staff convenes on a conference call to update our team on the progress of the company’s portfolio. During the call, each property manager, maintenance tech and lease administrator addresses specific problems and plans for improvement. We understand that this is the first step in tenant retention.
  • Fostering positive relationships with tenants is a key part of retention. To get to know our tenants and to help both parties put a face with a name, HCRE property managers are positioned in their building’s elevator banks to see and greet tenants as they begin their day. This simple gesture is the foundation of the Hoffmann Standard.
  • It is paramount that everyone within HCRE shares the same vision: Our home is your home! At any given time, tenants can see members of the HCRE team visiting our properties and pitching in when needed, whether it’s picking-up litter or pulling a weed. At HCRE, we encourage it. Having employees take pride in ownership is contagious. Tenants notice and will most often follow suit.

Results

The results pretty well speak for themselves. HCRE’s portfolio is 97 percent occupied with over 700 tenants in eight states and a historical tenant retention rate that tops 94 percent.