Let’s take a moment for the asset managers. The role is more demanding than ever before. Profit margins are being squeezed and the requirements of the job grow in complexity. Plus, market conditions mean greater challenges. It’s a lot of pressure.
It’s a tenant market
The job is almost unrecognisable from 10 years ago. For starters, the market has shifted in favour of tenants. Commercial office space, for example, no longer simply concerns how many desks occupiers can squeeze like sardines into 10,000 sq ft of space. Now it’s a vehicle to attract (and retain) the best talent. It’s a statement of your brand and a reflection of your core values. It’s how happy and appreciated your employees feel. It’s a new world and a BIG deal.
thEN THERE’S ESG
With so many metrics to choose from, (e.g. BREAAM, LEED, EPC, NABERS), there’s currently no universally adopted industry standard. Adoption of a particular standard is often driven by tenant demand. In order to sign a lease, a tenant may require a BREEAM rating of ‘Outstanding’. Energy efficiency and environmental certifications directly affect the value of an asset, and have a positive impact on the planet (win-win!), so upgrading underperforming stock and capex are key concerns.
Leases are shorter too
We waved goodbye to the 20-year lease long ago (thanks WeWork). So things like tenant relationship management become key to minimising void rates. Asset managers need to ensure that their assets remain competitive in order to keep their tenants happy. Assets may need upgrading not to increase returns, but just to retain value. With all those hats to wear, it’s no wonder important matters like lease events get missed. Lease break and expiry periods are crucial opportunities to secure sustainable rent of an asset and mitigate risk. (Perhaps it’s time for a re-brand yourselves. What about ‘Tenant Relationship Manager’? Or perhaps ‘Risk Manager’. Maybe ‘All-encompassing Manager’ is more fitting?).
The solution is simple
Stay on top of key lease events and free up time to work on strengthening tenant relationships. An important lease event could be the difference between a deal made or broken. If you’ve had the opportunity to speak to your tenants in advance and nurture that relationship, you can understand their current requirements to negotiate a lease extension. Perhaps you make their current space fit for purpose or extend it to meet their growth trajectory. In that case, you’re a hero and deserve a parade, or at least an expensive pint. You’ve saved yourself time, money, and have secured future income for that asset.
That’s no mean feat
Especially in this market. You’ve got what feels like hundreds of occupiers to juggle, stakeholders to manage, etc, and with all these balls up in the air, important lease events are inevitably going to get missed. Now here’s where we change your life. We’ve been working in partnership with our asset manager clients to develop a dashboard focused entirely on risk. It pulls all lease events across your portfolios into one dashboard allowing you to analyse, report, and crucially receive reminders, of upcoming lease events and EPC portfolio performance. Offload the burden of staying up to date with key lease events.
We’ll do that for you
So you can get ahead of risk and maybe even start viewing it as an opportunity. This focus on the strategy means you’re in control. You can focus on strengthening tenant relationships and keeping your assets competitive. We’ll help you to look good. And give you your valuable time back, which is no small thing. After all, time is finite so make the most of it.
COMMERCIAL ASSET MANAGEMENT SOFTWARE
“Coyote gives us eyes on our live data, 24/7.”