COMMERICAL REAL ESTATE

Taking Control of the Full

Property Management

Ecosystem

Table of Contents

Introduction

Unpacking the Tenant Experience

Importance of a Holistic Property Management Solution

Selecting a Property Management CRM Solution

How to Successfully Roll-out a Property Management Solution

Conclusion

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Real estate companies who want to attract and retain top tenants today must adopt a tenant first approach. New technologies and the rise of the shared economy has changed and shaped tenant expectations, pushing real estate companies to adapt to meet this increasing demand.

Central to this shift is the lack of visibility into the tenant experience. Unlike most industries, real estate has traditionally not taken advantage of CRM technology that would provide them better insight into the tenant experience.

Instead, most companies have relied on multiple systems or excel sheets to track and document tenant interactions. This has resulted in a fragmented view of the tenant experience that keeps real estate companies from realizing opportunities to drive tenant stickiness, brand differentiation, and positive ROI.

This all points to a need for a holistic property management system. But instead of ripping and replacing your current system for a new one, there is a way to architect a property management solution that works for your business. One that allows you to align your property management and leasing organizations to elevate your tenant experience, deliver value, and drive operational efficiency.

Introduction

“Agile, flexible ways of

working are driving a

secular shift in the office

market that will not slow

anytime soon.”Lisa Picarard, 2019

EQ Office

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In an industry where an active and robust rent roll is paramount to a property’s success, understanding tenant needs is top of mind for real estate companies – and today’s tenants expect more. At the core of these needs is the desire to attract and retain top talent and helping them improve their bottom line.

New technology like AI, IoT, and Blockchain have given rise to a shared economy, with mobile apps like Uber and Lyft making life easier and more convenient. As people continue to become more dependent on technology to optimize their day to day, they seek to have these same experiences replicated in their professional lives.

At the forefront of this paradigm shift in commercial real estate, is the influx of younger professionals in the workforce who place a premium on experience, technology, and work-life balance when deciding where they want to work. This has forced companies to rethink workplace design to accommodate this new group better.

Open space offices, a robust amenities package, attractive interior designs, and collaborative work environments are a few of the physical manifestations that have taken place in the past five years. This demand for more personalized, intuitive, and seamless work experiences has shifted the way we think of the

Unpacking the Tenant Experience

workplace today, giving rise to the concept of spaces-as-a-service (SPaaS)1.

SPaaS refers to the retailization of the office space in which the role of commercial real estate owners has moved from merely collecting rent to providing a service. A great

example of this phenomena is the increase of coworking spaces like WeWork. Not only has this shifted the way we view property, but it has forced real estate companies to re-evaluate their business strategies.

Real estate giants like JLL and Cushman and Wakefield, for example, have taken notice of this shift and have started interweaving technology with the principles of hospitality to

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elevate their tenant experiences. An example of this new approach can be evidenced with JLL’s latest property management app, Curae, Latin for “I care for.” 2

The goal of the app is to facilitate the role of commercial real estate owners as a service provider by creating a platform where tenants can access a variety of programmings such as yoga, educational workshops, and social events. In turn, tenants are better able to curate their talent experiences in addition to their business operations.

However, the creation of these types of apps is just the tip of the iceberg. According to EQ Office, a leading real estate company

environments that help talent feel inspired while speaking to their desire for further work-life integration. To achieve this goal, EQ office suggests perfecting the blend of four different space types: concentration, collaboration, community, and convenience.

In doing so, both the real estate company and the tenant enter a win-win situation. Tenants become more effective in recruiting today’s modern workforce, and the real estate company can maintain a healthy occupancy rate by helping the tenant attain a positive business outcome.

As tenant expectations continue to evolve, technology will play a pivotal role in helping real estate companies gain visibility into their tenants need and how-to better partner with them to realize their objectives. This sentiment was emphasized in Deloitte’s 2019 Commercial Real Estate Outlook survey of 500 global investors, where 80 percent of respondents stated that landlords should prioritize predictive analytics and business intelligence tools to drive success in the upcoming year 4.

with proven results in mastering the tenant experience, companies who want to retain and attract talent must aim to achieve spatial alchemy 3. This refers to the intentional creation of spaces that balances both the requirements of different environments and talent experiences.

It should therefore be the goal of real estate companies to help their tenants create

80% of respondents stated that landlords should

prioritize business intelligence tools to drive success in the

upcoming year.

Deloitte 2019Commercial Real Estate Outlook Survey

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Unlike most industries who have seen strong adoptions of CRM technology, real estate, for the most part, has been slow to the uptake. The lack of a cohesive platform that meets the business needs for the industry has resulted in many real estate companies cobbling multiple solutions to make ends meet.

The result? A fragmented view of the tenant experience and missed opportunities to drive tenant stickiness.

The gap in CRM adoption has much to do with the nature of the industry. For one, there tends to be multiple parties involved in a real estate transaction, requiring sophisticated permission-based access that typical CRM platforms cannot support. Second, the lease terms themselves are complex and vary according to tenant needs.

As a result, real estate companies today are lacking access to quality data that provides them with actionable insights and visibility into the tenant experience and journey. Instead, they must cycle through various unconnected systems that don’t talk to one another to get a true reading on how they are performing. The task becomes daunting if you are managing multiple properties.

Importance of a Holistic Property Management Solution

Real esate management software market is

expected to reach 12.89 billion by 2025.

Adroit Market Resarch, 2019

By implementing a CRM solution, real estate companies can get better visibility into the tenant journey to deliver value-add services and solutions. In turn, real estate companies become better at delivering tenant experiences, generating more qualified leads, operating more efficiently, and making better decisions by developing business strategies that promote growth.

However, the real estate industry is catching up with the rest of the world. According to recent research by Adroit, which accesses the market growth and trends of the real estate market, the real esate management software market is expected to reach 12.89 billion by 2025. With good reason 5.

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Deliver Better Tenant Experiences

Customer service is at the heart of a successful tenant experience strategy, and it all begins and ends with how well property managers respond to service requests. A CRM helps you accomplish this by monitoring tenant sentiment and compiling tenant data in one system.

Real estate companies can then use this information to identify historical trends and patterns to proactively address tenant using a data-driven apporach. In turn, they can enhance the tenant experience while promoting tenant loyalty and retention.

Generate More Leads

Having all property activities under one centralized platform helps real estate companies gain more visibility into their deal pipeline, parties involved in the transaction, and the status of each prospect. Restate companies can then use automation to cultivate better business strategies and tenant relationship that accelerates their deals and increase conversion rates by helping them identify additional touchpoints along the tenant journey.

The touchpoints can be in the form of sending prospective tenants additional marketing materials to help in their leasing decisions, providing self-scheduling property tours, and modifying their amenity and office space offerings to accommodate their needs better. Additionally, property managers can also collaborate with the leasing brokers and partners to better and more strategically market the property, thereby ensuring a healthy occupancy rate.

Operate More Efficiently

Automating and optimizing everyday tasks saves time and money. This can be done both for your leasing and property management organizations. For example, business process flows can be created for every stage of the leasing process to ensure that the right documentation is requested from appropriate parties involved.

Once a prospective tenant signs the lease, you can use the CRM to program lease expiration alerts, rent bumps, CAM increases, and more. It also keeps property managers on track by understanding what actions are required to move the deal along at the right time.

For example, property managers can use the CRM to address future leasing needs while also scheduling preventive maintenance in advance. Alternatively, property managers can leverage AI and chatbot technology to address tenant requests in the channel they prefer. From social media, texting, email, phone call, or a personalized tenant portal, tenants can feel in control of their workspace experience.

Video Series: Better Tenant Experience

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In addition, property managers can proactively schedule preventive maintenance requests and warranty alerts for key building systems and equipment essential to the daily operations of buildings today. This helps property managers reduce OPEX costs, increase the energy efficiency of their properties, and extend the life of their investors’ asset.

Make Better Decisions

Because a CRM gives you a 360° view of the property management ecosystem, real estate companies can extract actionable data that provides a clear picture of what is going at their properties. They can use the data to optimize the performance of their portfolios by identifying opportunities to reduce CAPEX costs, understanding the utilization of space to

drive operational efficiency, and better manage their inventory to better market their properties. Also, data can be used to drive on-site property initiatives that increases the brand reputation of their tenants while helping them become more productive and efficient.

By 2020, customer experience will overtake price and product as the key brand differentiator.

Gartner, 2018

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By 2020, customer experience will overtake price and product as the key brand differentiator 6. Understanding how CRMs can help, many real estate companies are now heavily investing in property management technology to gain greater visibility into the tenant experience.

In fact, approximately 54 percent of commercial real estate companies with at least $250M in property have invested in property technology according to a recent survey by Altus 7. While there are indeed multiple CRM solutions one can employ, there is an alternative.

If you’re already using Microsoft Dynamics 365 or related Microsoft products, then there is no need to rip and replace your current system for

Selecting a Property Management CRM Solution

a new one. Given that Microsoft Dynamics 365 operates on an open system, you can architect a tailored CRM solution for your specific real estate business needs and goals.

Through Alithya’s property management accelerator, you can map out and integrate all

Client Sucess Story

Knowing who your customers are is the first tenant of business any company should master. However, if all your customer data is siloed in different platforms, could you say that you know who they really are? Such was the case for a real estate company based out of Chicago, IL.

The real estate company wanted a CRM solution that would help them retain and transform the way they interacted with their tenants. To be more tenant-centric, they need a CRM solution that would help give them visibility on tenant sentiments, industry trends, talent needs, space requirements, and more. But without a CRM, this goal was virtually impossible.

As they compared CRM solutions, the real estate company decided on Microsoft Dynamics 365. Part of the decision was based on the cost benefits and ROI of the solution, but more importantly, because of their partnership with Alithya. As a partner with over 1,500 CRM

implementations, Alithya was able to leverage their Property Accelerator and proven methodology to integrate multiple business units/groups under one system successfully.

The result? A 360° view of their business operations and full picture into their tenant experience and journey.

How One Real Estate Company Mastered their Tenant Experience

54% of commercial real estate firms with at least $250M have invested in

property technology.

Atlus, 2019

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your business processes and tools under the Microsoft Dynamics 365 dashboard at half the cost of implementing an out-of-the-box solution. It’s also important to note that most businesses have familiarity with Microsoft products, which reduces the failure rate of a CRM adoption.

As with most complex IT initiatives, its important keep in mind that technology is not a silver bullet. The same is true for all CRM implementations. For it to work, it must be aligned to business goals and outcomes to be successful.

How to Successfully Roll-out a Property Management Solution

Like most complex IT initiatives, the implementation of a property management software has a high probability of failing if there is no strategy put in place. Companies who are successful understand this fact and view technology not as a magic bullet that solves their need but as the vehicle that will help get them to where they need to go.

At Alithya, we call these successful companies high performing organizations. In a bid to help our clients achieve the same level of success, we have created a three-pronged approach for how to successfully implement a property management solution comprised of organizational structure, training, and a cadence of accountability.

Organizational Structure

For any IT initiative to succeed, there must be a meeting of the minds across all stakeholder involved. To start, executive buy-in from all leaders of the organization must be obtained. There needs to be an agreement on what the property management software will achieve, a project roadmap tightly aligned to business outcomes and goals, and communication rollout plan that will be shared across the organization.

Central to the success of a new software initiative is the inclusion of power users and

admins. Power users are those who have a deep and conceptual understanding of the solution’s features and what the technology can help the business achieve. As the visionaries, they are more productive and better at helping others understand the software.

Client Sucess Story

There are many forces at play when two companies come together. Central to successful integration is ensuring that all key stakeholders are on the same page. However, with multiple systems in use, deciding which to keep and which one to lose can be difficult. This is the situation the world’s largest owner and operator of showroom space confronted on the heels of its merger.

The real estate owner wanted to implement a consistent business language and business processes across the enterprise. They also wanted greater visibility into their buyers and sellers. But with four CRMS in place, there was no way that this could be done.

After careful consideration on the best option for their situation, the real estate owner decided on Microsoft Dynamics 365. The easy to use, native integration to other Microsoft products, and cloud-based extensibility made it an easy choice for the company. However, Alithya’s s experience and proven methodology in successful CRM implementations was truly a deciding factor.

The result? Four systems consolidated under one dashboard, and one universal language and culture across the enterprise.

How A Real Estate Owner Successfully Integrated Four Major Systems into One

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Comprehensive Training Program

The top challenge that tends to hold companies back from becoming high performing organizations is their lack of a comprehensive training program. Focusing only on go-live meeting and not following up on the information learned are some of the mistakes that many businesses make when implementing a new system.

High performing organization who have been successful with their property software adoption understand the connection between training and results. They tend to incorporate persona training, experience level training, and motivational training for optimal results and ROI.

Persona training relates to the specific activities expected out of the trainee’s role. For example,

the training for a manager is different than the training for an agent or service rep. Experience level training, like its name implies, refers to training specific to that person’s career level. Think of the difference in training between a

“I guarantee you spreadsheets, emails, and

sticky notes won’t allow you to deliver service

excellence.”

Jenna Dobkin, 2019 Nimble Inc.

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new hire and a more seasoned professional for context. Finally, motivational training is training that reinforces the information the trainee learned for optimal retention.

Cadence of Accountability Without a proper cadence of accountability, the likelihood of your software implementation failing is not a matter of how but when. To make sure that your implementation stays on track, you must incorporate tactical and strategic meetings to check-in on the progress of your initiative.

Tactical meetings should occur monthly and should involve power users and admins to discuss the overall adoption of the system, drill into the tactics being used to meet business goals, and address any technical issues or user feedback. Strategic meetings typically take place once or twice a year and involves members from the executive team.

In this meeting, team members discuss the effectiveness of the tool in producing the desired business outcomes and if the organization is moving in the right direction. The goal of these meetings is twofold. One is to keep the momentum going. The second is to allow team members to hold each other accountable for progress

A strong relationship with the software partner is critical, but just as important is the concept of ownership. This is especially true in real estate firms where mapping property software needs to the tenant journey is essential in delivering memorable experiences as it relates to generating capital and tenant stickiness.

1. Verma, Urvashi. “PropTech 101: What Is a Space-as-a-Service (SPaaS) Business Model?” In Building Tech, 18 Dec. 20182. Puybaraud, Marie. “Workplace: Powered by Human Experience .” JLL, accessed 22 Aug. 20193. EQ Office. “Recruiting TopTalent: The 4Cs of Spatial Alchemy.” accessed 15 Sept. 2019 4. Deloitte. “2019 Commercial Real Estate Outlook New Rules of the Road” accessed 22 Aug. 20195. Adroit Market Research. “Real Estate Management Software Market to Hit $12.89 Billion by 2025” accessed 15 Sept. 20196. Gartner. “Gartner Surveys Confirm Customer Experience Is the New Battlefield” accessed 15 Sept. 20197. Rothstein, Matthew. “PropTech Startups Are Merging To Entice Big Real Estate Investors.” Bisnow, 14 Mar. 2019

Real estate companies who want to remain competitive and relevant in today digital landscape can no longer ignore the increasing role tenants play in driving property performance. To be successful, they must be attuned to their tenant’s needs, changing market fundamentals, and the role technology plays in helping them achieve their business goals.

Implementing a comprehensive CRM solution with a tenant first approach is the answer to maintaining a competitive edge in a rapidly evolving and increasingly saturated marketplace. Once you have a solid understanding of who your tenants are and how to best interact with them, then you’ll be able to generate tenant experiences that drive growth and positive ROI.

Interested in exploring how Alithya can help you create a custom CRM solution for your real estate company? Reach out to one of our specialists to schedule a demo and to get started on building memorable tenant experiences that yield positive returns.

Conclusion

About Alithya

Alithya is a leading strategy and digital technology company with over 2,000 highly skilled professionals delivering solutions across Canada, the US and Europe. Alithya’s Microsoft practice covers a wide array of capabilities including Dynamics, Azure, business analytics, digital solutions, advanced analytics, application development and architecture. Focused on business outcomes, our combined companies have delivered Microsoft ERP, CRM, BI and digital solutions to over 1,200 clients. Alithya’s global offering is to deliver strategy and digital technology services.

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