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The red carpet treatment
Michael J Lipsey, Robin Mahanna. Journal of Property Management. Chicago: Jan/Feb 2000. Vol. 65, Iss. 1; pg. 36, 3 pgs

Abstract (Summary)

As real estate service providers begin to place more emphasis on services and amenities in the hope of differentiating themselves from the competition, tenants are beginning to reap the benefit. This benefit will become even greater as firms move toward operating standards and a consistency of service that extend beyond one building to create national brand identities that are synonymous with specific service niches. The culture of service needed for successful branding consists of several components: 1. the service promise, 2. internal customer service, and 3. standardization and quality. In order to implement the service initiative, the building owner and/or manager should: 1. research and survey clients' service needs, 2. prioritize services to be implemented, 3. interview outsource service providers, and 4. develop contract agreement between property management and the tenant.

Full Text

 
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Copyright Institute of Real Estate Management Jan/Feb 2000

What images do the words "Service" call to mind? Waiters handing icy drinks from silver trays; a helping hand to carry that heavy package or run that errand, or a welcoming staff that meets your every need instantly, even before you ask?

This sort of service is easily available-in a first-class hotel. But for today's office tenant struggling to balance long workdays with family, home, and daily living responsibilities, that level of service is just something to dream about. Or at least it was until recently.

As real estate service providers begin to place more emphasis on services and amenities in the hope of differentiating themselves from the competition, tenants are beginning to reap the benefit. This benefit will become even greater as firms move toward operating standards and a consistency of service that extend beyond one building to create national "brand" identities that are synonymous with specific service niches.

Hotel chains have already achieved this level of branding, which enables them to achieve the repeat business that is the cornerstone of long-term success. Whether a traveler's brand of choice is the Hampton Inn with business amenities and a free breakfast, or the Ritz Carlton with gourmet restaurants and luxurious lobbies, the branding identity gives travelers the confidence to check into either chain in an unfamiliar city and be assured of virtually the same level of amenities and service. Travelers choose the same hotel over and over because they can depend on consistently finding what they expect.

With very few exceptions, office building owners and managers have ignored the power of branding. Indeed, the service packages and quality of management often varies considerably between two comparable buildings. Instead of establishing and carrying through the consistent level of service that branding requires, the quality of service and tenant satisfaction in most buildings is almost totally dependent on the quality of personnel at the site. Only by structuring the management organization for consistent service and educating every employee on the role he or she plays in its success will true branding be achieved.

The culture of service needed of successful branding consists of several components:

The service promise: What service do you promise to offer? Most repairs in four hours? Responses to lease proposals in three days? TI build out in two weeks? To achieve true service, the promise must not just be made but must be carried out consistently.

Internal customer service: Service to tenants can be achieved only if every employee works in an atmosphere of service, even those who do not interact with the public. By promoting the same level of service to internal customers as to external ones, the consistent level of service needed for branding is reinforced. This commitment must extend to senior management; if it does not actively participate and empower staff to do likewise, the service promise will fail.

Standardization and quality. The company must set specific, measurable standards of performance for every job function and convey them to employees. Standards must be incorporated into job descriptions and tied to compensation. Many companies have such standards, but they sit on the shelf, unused and therefore valueless.

Differentiating Your Brand If offering top-notch service is the foundation of branding, establishing specific amenities and services that fit a chosen market segment are key to differentiating one "brand" of office from the herd. For example, a building that has a significant number of tenants that travel by air may incorporate a rooftop heliport for transport to the local airport.

In order to implement the service initiative, the building owner and/or manager should:

Step 1: Research and survey clients' service needs

Step 2: Prioritize services to be implemented

Step 3: Interview outsource service providers

Step 4: Develop contract agreement between property management and the tenant

When determining which services to provide, focus groups should be the first step, followed by survey and measurement. In order to customize the building services to fit the tenant's needs, focus groups must be conducted using a sample that represents the building appropriately. The sample should include at least two representatives of each space, one of whom should represent office management personnel. The focus group meeting should be facilitated by an outside researcher in order to develop an understanding of the most demanded services. The focus group should last approximately one hour.

The priority and value of the services should be determined using a variation of measurement scales (Likert, Semantic, etc.) and categories throughout a service survey, The survey will enable the real estate manager to know what services will be utilized most often and whether tenants prefer an extensive variety of services within the building.

Based upon the results of the research conducted, a list of services to be offered is developed and service providers and vendors are contracted to work onsite or additional staff should be hired, Any services provided in-house should compete on price and delivery with outside vendors. In order to maintain innovative service standards, survey tenants quarterly in order to update the clients' service needs.

Creating real estate solutions to meet a tenant's broader business needs enables clients to conduct business productively, efficiently, and economically. State-of-the-art properties offer value-added amenities and services such as satellite dish and wireless communications, restaurants, dry cleaning, health clubs, banks, child care centers, newsstands, and valet services, all designed to meet the needs of a more sophisticated tenant seeking to retain its employees by improving their work environment.

Service, Not Just Services

While providing service amenities is essential, excellent service remains the key, Tenants are drawn to an atmosphere that enables efficiency and supports productivity through advanced levels of service and reliability. In response to these needs, hospitality will become the new definition of real estate property management.

Yesterday's tenant will be come today's customer.

Yesterday's lease agreement will become today's service agreement.

Yesterday's real estate manager will become today's service provider.

The hospitality service standard for office buildings will offer tenants the type of service and attention to detail that you receive when you arrive in a world-class hotel. It is this level of service that will set today's commercial real estate organizations apart from the competition. Rather than try to cut expenses through fewer services, the successful managers of tomorrow will focus on enhancing service to increase retention and improve the bottom line.

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10 ESSENTIAL ATTITUDE SHIFTS

[Author Affiliation]
Michael J. Lipsey, CPM*, CCIM, CRB, ACR, president of The Lipsey Company in Longwood, Fla. is a nationally recognized leader in training and consulting for the commercial real estate industry. The company presents over 200 programs annually to corporate real estate executives, institutional owners, real estate managers, and brokerage and leasing personnel and has contributed to the development of courses of IFMA and BOMA. Mr. Lipsey's articles have appeared in Corporate Real Estate Executive, Development, and Professional Report.

[Author Affiliation]
Robin Mahanna is project manager for the Lipsey Company where she is responsible for course development and business writing. She has worked with Mr. Lipsey to develop "Digitizing Real Estate" as well as several courses for the IFMA and the BOMA. She previously worked in course development for FMR Associates and is a graduate of the University of Central Florida.

Indexing (document details)

Subjects:Real estate,  Customer services,  Brand differentiation,  Guidelines
Classification Codes7000 Marketing,  2400 Public relations,  8360 Real estate,  9190 United States,  9150 Guidelines
Locations:United States,  US
Author(s):Michael J Lipsey,  Robin Mahanna
Author Affiliation:Michael J. Lipsey, CPM*, CCIM, CRB, ACR, president of The Lipsey Company in Longwood, Fla. is a nationally recognized leader in training and consulting for the commercial real estate industry. The company presents over 200 programs annually to corporate real estate executives, institutional owners, real estate managers, and brokerage and leasing personnel and has contributed to the development of courses of IFMA and BOMA. Mr. Lipsey's articles have appeared in Corporate Real Estate Executive, Development, and Professional Report.

Robin Mahanna is project manager for the Lipsey Company where she is responsible for course development and business writing. She has worked with Mr. Lipsey to develop "Digitizing Real Estate" as well as several courses for the IFMA and the BOMA. She previously worked in course development for FMR Associates and is a graduate of the <idl>0University of Central Florida.
Document types:Feature
Publication title:Journal of Property Management. Chicago: Jan/Feb 2000. Vol. 65, Iss. 1;  pg. 36, 3 pgs
Source type:Periodical
ISSN:00223905
ProQuest document ID:48247514
Text Word Count1193
Document URL:

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