The Tenant as a Customer: can good service improve commercial real estate performance?

Customer Relationship Management (CRM) theory suggests that good customer service results in satisfied customers, who in turn are more likely to remain loyal and recommend the service provider to others. Proponents of good customer service for tenants claim that landlords should see a return on any investment in their customer service, in the form of enhanced real estate performance. This paper begins by reviewing research on the service – profit chain, and examines the factors which affect occupier satisfaction and property performance(total return, net rental income and capital appreciation). The research includes an assessment of the reasons occupiers choose particular premises and the differences between the main commercial asset classes (office, retail and industrial).The quantitative study includes preliminary findings from a statistical analysis of the relationship between aspects of occupier satisfaction and property returns over a ten-year period.[Author 1 bio] Danielle Sanderson read physics at Oxford University and worked in computing and operational research before become a researcher and consultant for RealService. She worked part-time whilst competing as an International athlete and raising a family. Danielle is currently a PhD researcher at Henley Business School.[Author 2 bio] Victoria Edwards is a chartered surveyor and valuer with research, consultancy and academic experience in corporate property management (urban and rural). She is a graduate of the Universities of Reading, UK (BSc and PhD) and Canterbury, NZ (MSc). She is an Associate Professor in Real Estate and Planning at the Henley Business School.