Determinants of satisfaction amongst occupiers of commercial property

In order to maximise occupancy and rental income, landlords must attract and retain occupiers. Therefore landlords and property managers need to understand what aspects of property management matter most to occupiers. This paper uses structural equation modelling and regression to analyse 4400 interviews with retailers, office tenants and occupiers of industrial property, conducted over a 12-year period. Interval-scale ratings of satisfaction with many aspects of occupancy are used as explanatory variables. The dependent variables are satisfaction with property management, value for money, overall occupier satisfaction and landlord reputation.Key Findings:_For all three asset classes, the aspects with most impact on occupiers’ satisfaction with property management are found to be communication, understanding business needs and responsiveness to requests. For occupiers’ overall satisfaction, the key determinants vary between asset classes, with ‘Tangibles’, including the form and function of the building, its location and amenities, being of particular importance to occupiers of industrial units and offices. Satisfaction with property management, and the professionalism of the landlord and manager, have an impact on occupiers’ willingness to recommend their landlord, as does occupiers’ perception of the Corporate Social Responsibility of the landlord. The accuracy and timeliness of billing and documentation, and the cleanliness and maintenance of the property, strongly influence occupiers’ perception of receiving value for money for rent and service charge. The paper discusses the magnitude and significance of these effects, and the differences in importance of the explanatory variables for the three commercial asset classes._