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TRENDSETTERS The Tenant

Experience Gap A new study done by Building Engines, a property management firm, sheds some light on the considerable disconnect between what property managers prioritize and what tenants really expect. The study was based on surveys of over 600 CRE professionals and tenant employees who work in multi-tenant CRE buildings across the United States. The report’s findings uncover surprising disparities in four aspects of the tenant experience; investment in amenities, communication, security, and access control, and CRE talent.

75 STRENGTH

A GLIMPSE INTO THE KEY FINDINGS:

IN NEIGHBORS An Arizona-based real estate crowdfunding company is finding strength in numbers. Thanks to new laws in Arizona, Neighborhood Ventures has opened up the world of commercial real estate investing to nonaccredited investors. The new laws allow Arizona residents to invest a minimum of $1,000 in projects. Already, Neighborhood Ventures has two projects funded by more than 100 people each. It started in June of 2018, when Neighborhood Ventures closed on Venture on Wilson, a 12-unit apartment project in downtown Tempe. A total of 104 people invested in the deal, raising $500,000. The investment plan calls for new appliances in all units, upgraded flooring, cabinetry, countertops, fixtures and common areas. Upon completion of the renovations, Neighborhood Ventures expects to bring all rents in line with the market and sell the property within three years. The target preferred return for crowdfunding investors is 12 percent each year. Venture on Marlette is a very similar project to Wilson. Neighborhood Ventures needed 125 investors to raise the target of $600,000. Like the Wilson project, Marlette is a 12-unit complex in Central Phoenix and will undergo similar improvements. They will renovate and hold Marlette for three years before selling with a goal of a 12-percent yearly return for the investors. “It’s clear there’s a strong demand for crowdfunding projects that let people invest in their communities,” said Neighborhood Ventures co-founder Jamison Manwaring. For information, visit neighborhood.ventures.

8 | January-February 2019

% of CRE professionals

are confident that building occupants receive important building information, but only 25 percent of occupants agree.

66

%

There are gaps in how property managers currently communicate and how tenants expect to receive information in the future. For example, of building management teams communicate with tenants via phone today, while only 4 percent of tenant employees plan to use this method in the future.

80 30

% of CRE professionals dedicate

at least half of their time to improving the tenant experience, but only 28 percent allocate at least half of their operating budget toward the same goal.

Buildings are under-investing in cybersecurity. Only

% have a

cybersecurity program in place today.

For the complete report, visit buildingengines.com

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This issue shows examples of how the commercial real estate industry is evolving as it grows, from high-tech building techniques by one of t...

AZRE Jan/Feb 2019  

This issue shows examples of how the commercial real estate industry is evolving as it grows, from high-tech building techniques by one of t...