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THE Build To Rent industry is ready to embrace an accreditation system which would set standards and protect the sector from rogue operators.

At a virtual roundtable event chaired by RealService founder and managing director Howard Morgan, industry leaders discussed how Build To Rent (BTR) could continue to improve its offering to customers. In summary, the participants agreed it was time to begin an accreditation process which could define a set of standards, be a trusted guide for customers and provide a means of communicating performance to audiences such as investors – while still leaving room in the market for different offerings at different price points.

Attendees observed there was an emerging need. “We are approaching a period of development and maturity in the sector so things which might have seemed impossible three years ago are now within our grasp,” concluded UKAA chief executive Dave Butler.

Accreditation and data transparency

Participants explored whether an accreditation system should involve the release and sharing of underlying data between industry peers. The main conclusion among attendees was that the sharing of data was not an immediate priority – not yet, anyway – but there appeared to be consensus around the need for a set of minimum standards around what customers should expect.
The debate around data sharing centred on trust, the quality of the information and the method of harvesting it.

Katherine Rose, director of BTR & PRS at Navana Property Group, said: “Sharing data is important but I don’t think the industry is ready to do it yet. We’re all still a little precious and also, how accurate is that data? Everyone wants to look good and how truthful are they? I’m not sure everyone will play fairly. But it’s the way to go. We should all pull together and be less precious.”

Opportunities for Market Differentiation

PPP Capital’s Sanjeev Patel, managing director of LuxuryDigs, said: “I do believe there is a need for accreditation but I also believe there is a place in the market for a Premier Inn and a Waldorf.

“If you want a Waldorf, fantastic, pay for it. If you want a slightly cheaper product, go to a Holiday Inn or a Premier Inn and pay a bit less. They may be very different but in both you will get a clean room and a comfortable bed. I’m comfortable with everyone signing up to a minimum standard – a high minimum, mind you – then you can pitch your assets wherever you want them to be and marketing and customer expectations can be managed appropriately.”

Creating standards 

“I would draw an analogy with Wimbledon,” said, Howard Morgan.

“People had been hitting a ball around for a long time but had no ability to compare their skills with others until Wimbledon came along and defined a set of rules and how to score. I think there comes a point in an industry’s evolution when someone has to say it’s time to draw up some standards that we all abide by and, although it might not be comfortable for everyone, it seems that we are getting closer to that point.”

The group also heard from Chris Garthwaite, the chief executive of customer experience consultancy CGA, who worked with 26 different rail operators to define a set of common standards.

‘Accreditation builds trust’

Having an accreditation system, he said, would build trust and help re-set expectations.

“Trust is a key differentiator; if you lose trust, you lose loyalty. In a world which is accelerating, becoming more digital but where you have a fragmentation of customers, understanding the emotion and sentiment of your customers will become fundamental to delivering the value of the brand – or the industry – to those audiences.”

There is already an accreditation system in the student accommodation sector and according to Jane Couch, chief operating officer of Fresh Property Group, while this is an extra cost – around £2-3 per student – this extra spend actually helps attract investors.

“Investors are traditionally risk-averse but they know about the accreditation costs up front and it means they know you are a responsible operator who is not going to have problems with negative feedback hitting the press.”

Prospects and next steps

Dave Butler said there was already a UKAA benchmarking group working together to deliver a manifesto around what ‘good’ looks like and he issued a call for anybody who wants to contribute to that debate.
“While I’m not going to die in a ditch over the sharing of data – I think that’s a while down the road – it is hugely important to define ‘good’,” he said.

Read the article on the UKAA website here

By Sophie Hazeu

A WHILE ago I conducted a post-occupancy study with a number of managing directors.

I was exploring their reasons for choosing the prime real estate into which they had recently moved and the majority of respondents, bar a few who mentioned bike racks and lockers, stated location, rent, rates and square footage as their top priorities when acquiring that particular property in central London.

Sophie Hazeu

Sustainability was on the list but not the top five. No surprise there then.

However, research RealService has carried out recently suggests that seems to be changing and the Road to Cop26 – the UN Climate Change Conference, which Glasgow is hosting in November – is being paved by property companies who are full of good intentions.

That is great, but alongside those who are champing at the bit to refurbish their stock with green credentials are those who feel these costly changes are unfair and unfeasible. Nick Leslau, Chairman of Prestbury Investments, highlighted this in his Property Week article Our Industry is being set up to fail.

‘Carbon neutrality or we will leave’

Nick may have a point, especially when it comes to retro-fitting old buildings. But there’s still an opportunity here and it’s one every property manager should take because during the aforementioned research, on how loyalty impacts on the likelihood to re-occupy, we found that despite good relationships with the landlord and high loyalty to the location/estate, some occupiers stated categorically they would leave at end of their term if their goal of carbon neutrality was not supported.

Consequently, I then began to think about how this high level of ‘Defection Risk’, despite high loyalty, could be identified and then mitigated without having to scramble to achieve the costly changes Nick identified.

We already know that the impact of Covid has produced rapid change in the property market, mainly bringing in hybrid working plans far earlier than previously anticipated. An immediate desire to restructure offices into ‘collaborative spaces’ over desk-based business is, and will continue to be, a huge disrupter for property owners.

A further challenge on the horizon is the increase in weight given to the sustainability of a building as being a prime factor in leasing real estate. This factor is being set out by customers as a clear benchmark – which needs delivering and appears non-negotiable. For some, it’s overtaking the traditional drivers of rent, rate, square footage and service charge.

Create a ‘sustainability champion’

So, it seems property managers have a choice.

They can do nothing and run the risk of losing occupiers for whom carbon neutrality is an important aim.

Or, they can capitalise on this new driver (along with a more flexible lease offering in the short term), by developing sustainable buildings which, in the long run, may enable a higher rate to be demanded.

This is the time to take the sustainability advocate out of the corner, raise their status and create a ‘sustainability champion’ who has a voice.

This champion has a hugely important role in understanding customer perception, and setting their expectations.  This person needs to be able to multi-task.

  • Environmental reports need to be delivered to customers on time (most take six months to deliver an electricity invoice)
  • Reports must be customer-friendly, usable for investors and appropriate for delivering board-level results
  • They must be a trend spotter; what are the latest customer ‘must haves’?
  • They must be able to engage with customers and learn from them whilst managing a realistic sustainability plan. This last point is vital.

So, if the sustainability champion is the means of mitigating ‘Defection Risk’, how can this risk level be identified in the first place?

Defection risk matrix

Working for a major global client, we carried out a number of in-depth interviews and assessed the responses in a Defection Risk Matrix.

This matrix evaluates how effectively ‘loyalty creators’ – like demonstrating empathy and engendering trust  – are being delivered.

We then looked at the ‘loyalty indicators’, to establish whether the customer’s commitment to the landlord, or the property, was strong enough for them to re-occupy against all other factors, such as achieving carbon neutrality in 2030.

Essentially, we were determining whether the customer’s loyalty was enough to mitigate against all the reasons they may wish to leave.

The results enabled the client to identify priority customers where loyalty needed to be enhanced, and therefore the risk mitigated. And, this is where the sustainability champion also comes in; to partner with each customer on their intentions and needs.

We can help you spot customers who would be on your Defection Risk High list. But you can start supporting those for whom sustainability is a key issue right away.

Create the sustainability champion, make sustainability a deliverable goal and keep your loyal customers loyal to you.

If you would like more information on how we can assess your customers’ loyalty, please contact us at info@real-service.co.uk.

WE are very proud to present our latest innovation; ladies and gentlemen, clients and friends (cue fanfare), this is the brand new RealService Dashboard.

Created over the last 12 months from a RealService brief by Jon Saville, of our tech partners at Walnut Innovation Limited, and our own data supremo Lasha Gegidze, this live reporting tool will make it possible for our clients to analyse their data in real time and in more segments than a chocolate orange.

“It’s a brilliant, new versatile tool which will bring up-to-date statistics and customer insight to our clients,” said RealService director and chief operating officer Louise Freethy.

It’s especially useful for clients with diverse portfolios who might want to monitor trends by country, or by sector and it provides both the macro and the micro view. Want to know your NPS score over the last five years? It’s all there. Want to know what a specific occupier said in response to a specific question in a specific building in Poland? That insight is there too, in Polish and English, at the click of a button.

Lasha Gegidze … RealService data supremo

Daily refresher dynamic

“It has a daily refresher dynamic, it looks modern and enticing and the information is easily navigable,” said Lasha. “Clients can add new pages so it’s bespoke to them and the data is sliceable and diceable in every way.”

While RealService was the driving force behind the brief, it was Jon Saville at Walnut who had the technical know-how to make it happen.

Based near Peterborough, Walnut have worked with RealService for around 10 years.

It started with our Quest system, the cloud-based client portal which securely stores the transcripts from the thousands of interviews RealService conduct every year.

Jon Saville … dashboard designer

“We were given the opportunity to redevelop the Quest system, which was a substantial piece of work – in fact, it took two years,” said Jon.

Focused on the needs of clients

“This dashboard is similar and it has been an interesting journey. RealService are completely focused on the needs of their clients and they want to deliver the best service. It’s our job to give them that support.”

Jon sees the dashboard as a real value-add.

“It is completely integrated into the Quest platform so any data put into Quest is reflected on the dashboard.

“The other advantage is that all you need is a web browser or mobile phone in order to see it. It has been designed so there is the least amount of ‘friction’ between the data and the user.

See at a glance and track trends

“The immediacy in the way the information is presented means you can see at a glance what it’s trying to say and track the trends. It’s pretty much piped into your eyeballs!”

If you are thinking of conducting Voice of Customer research and would like to hear more about the dashboard and our other services, please contact Louise Freethy, our chief operating officer, at the email address below.

Louise Freethy can be contacted at: Louise.freethy@real-service.co.uk.

Walnut Innovation can be contacted via www.walnutinnovation.co.uk.

WELCOME to the third of our interviews in our CX Conversations series. Here, David O’Sullivan, director of occupier and property services at Great Portland Estates, emphasises the importance of gathering regular, independent feedback from customers.

David O’Sullivan

He talks about how ‘over-communicating’ during the pandemic has improved the relationship between landlord and occupiers and emphasises the ‘people-focused’ nature of the business.

Oh, and don’t do what the banks do. Definitely don’t do what the banks do.

THIS is the second interview in our series of CX Conversations and it’s with Kaj Bakker, the head of sustainability (Europe) for global REIT Cromwell Property Group.

Kaj is a passionate convert to the importance of customer experience in the property industry and talks about how annual feedback gathered by RealService across the continent has enabled Cromwell to better understand their occupiers.

Kaj Bakker
Kaj Bakker, Head of Sustainability (Europe), at Cromwell Property Group

He also touches on being the middle-man, the asset manager serving two masters – occupiers and investors. It’s understanding occupiers, he says, which will drive retention, reputation and revenue – and keep investors happy.

Next time, David O’Sullivan, director of occupier and property services at Great Portland Estates, emphasises the importance of customer feedback and how ‘over communicating’ during the pandemic has forged closer relationships between landlord and occupiers.

Welcome to our series of CX Conversations.

If you are a property company unconvinced as to the value of customer experience, please listen to our series of interviews with key figures from different sectors. We’ll be posting over the coming weeks and our interviewees include:

  • THE CUSTOMER. The head of real estate for PwC speaks stridently about the levels of service and engagement he expects as a major customer and he offers up a future of the office as ‘business theatre’.
  • THE ASSET MANAGER. The head of sustainability, Europe, for a global REIT talks about the importance of retention and reputation as key drivers for revenue.
  • THE LANDLORD. The director of occupier & property services for a major UK landlord explains the value of communicating with customers and how building relationships will serve them well in what are likely to be tough times following the pandemic.
Chris Richmond

1. The customer

This first interview is with Chris Richmond, senior head of real estate for PwC.

We asked him about the services he expects as an occupier, the role of managing agents and their preparedness for post-pandemic office life. Oh, and we also touched on the future of the office itself.

Next time, Kaj Bakker, head of sustainability (Europe) at Cromwell Property Group, will talk about being the middle-man, the asset manager serving two masters – occupiers and investors. It’s understanding occupiers, he says, which will drive retention, reputation and revenue.

CONNECTING on a human level with the end user is the way the office sector will remain relevant as it undergoes the most radical change in decades.

So concluded CGA founder and managing director Chris Garthwaite as he wrapped up the first roundtable event to mark his organisation’s collaboration with RealService.

The event was the opening salvo in RealService and CGA’s series Revitalising Real Estate and the discussion revolved around the theme Reimagining the Office: The Customer’s Voice.

“The office is one of the last institutions which is now breaking down,” he said. “Covid is an accelerator, but a distraction. The office now can be a home, a coffee shop, it’s wherever the end user wants it to be.

“It’s the biggest change in 40 years and probably one of the last industries which is being fundamentally altered.”

Strategic partnership

RealService and fellow customer experience consultants CGA have launched a strategic partnership with the aim of giving clients the best of both worlds: RealService’s expertise in the property industry and CGA’s renowned knowledge of other sectors.

The launch event featured some of RealService’s valued clients and they were challenged by one of the industry’s biggest customers, Chris Richmond, senior head of real estate at PwC.

Those around the table impressed Richmond with their commitment to customer engagement although he said his personal experience was a patchy one.

RealService and CGA launched their formal collaboration with a roundtable online event which discussed the future of the office

“Maybe PwC are dealing with the wrong landlords,” he said, adding that while some had engaged with him during the pandemic, there had been little dialogue around a return to work.

David O’Sullivan, director of occupier and property services at Great Portland Estates, said his team had, if anything, over-communicated with occupiers.

“It’s disappointing to hear of Chris’s experience, because I can say with certainty our delivery of that type of response has been exemplary,” he said. “We went early, issuing a return to work playbook to advise occupiers.  We have kept every one of our buildings open, we’ve communicated throughout the process and run occupier clinics.

“Moreover, it has been a highly-valued process that has really improved our relationships. It has been the one constant thing we have been able to talk to them about in the last year and it has really cemented our relationships.”

While Richmond was preaching to the converted an even bigger question remains: what is the office environment going to look like in the future?

PwC have announced they will be embracing flexible working with its chairman Kevin Ellis saying he hopes it will be “the norm rather than the exception” and that “we want our people to feel trusted and empowered”.

Its workers can now work from home for a couple of days a week and start as early or as late as they want, which could have major implications for the space PwC currently occupies.

RealService founder and managing director Howard Morgan, who facilitated the discussion, wondered if space should be priced by the day? “Surge pricing is prevalent in every other sector,” he said.

Paul Rostas, founder of Plus X, the coworking provider, said: “We’ve tried to develop our product in a different way; we used to work at our desks and have an away day to think differently, maybe now, we work at home at our desk and come into the office to think differently.

We haven’t really tried a hybrid model

“Maybe Monday is for one company, Tuesday we set it up differently for a different organisation. From a cost-efficiency point of view that’s appealing; we reconfigure the space as and when people need it, driven by what the customer wants.”

For Dan Lovatt, head of property management and build to rent at Transport for London, the problem is two-fold.

He said: “First there is a technical side – help me with PPE, signage etc but then it’s, ‘I’ve got this space, help me understand what I am going to do with it’. The second lockdown has been a lot harder on people and there is less of a desire to work from home.

“Presenteeism plays a part. We talk about a hybrid model but we’ve either all been in or all been out, we haven’t really tried a hybrid model.”

From his perspective outside the property industry, Chris Garthwaite said change was inevitable.

“I remember working for Kingfisher when the internet arrived. It’s the same here. Your customers will have access to anything they want, on their terms. The focus must be on considering what are you selling? Is it productivity? Flexibility? This is about brands selling environments and this is where it starts to become really interesting.”

 

*RealService and CGA would like to thank Dan Lovatt (TfL). Michelle Laramy (The Crown Estate), David O’Sullivan (Great Portland Estates), Paul Rostas (Plus X), Rowan Packer (Mapp) and Raj Rajput (Hines) for responding to Chris Richmond’s challenge and to Chris Richmond (PwC) for being the provocateur.

 

CX Conversations: Listen to Claire Middleton’s interview with Chris Richmond here.

RealService, Founder & MD, Howard Morgan will chair a webinar in the British Property Federation’s ‘MyBPF – Digital Series’ on 29th March. He’ll be exploring the customer experience skills gap and how we can ensure our industry has the right skills for the future. Full details and sign up here

https://bpf.org.uk/events/property-s-got-talent-new-skills-required-for-a-post-pandemic-world/

Nurturing a diverse and skilled workforce is a key element of the BPF Redefining Real Estate long-term agenda for change.

Pre-pandemic research by RealService for British Council for Offices (BCO) identified that “the disruptive forces reshaping the way we work call for an equally disruptive response in the way we serve our customers” and that “there is a wide and increasing skills gap in both the quality and quantity of talent able to deliver the customer experience expected by occupiers” The Coronavirus Pandemic has widened the gap and called into question how we educate and recruit in the property industry.

This webinar will explore “What is the mindset and what are the skills that the property industry needs to nurture for the post pandemic world?”

Speakers include

Prof Yolande Barnes
Chair
Bartlett Real Estate Institute

James Ainsworth
Head of Estate Management
PwC UK

Lynne Keenan
Executive Director, Head of Scotland
MAPP

Harriet Jones
Producer
Experience Makers

 

RealService, founder & MD, Howard Morgan, has been appointed joint course director for the new CX in Real Estate – Future Leaders Programme launched by Experience Makers and the Bartlett Real Estate Institute .

Experience Makers is the real estate industry champion for customer experience professional training and research. The Bartlett Real Estate Institute (BREI) is part of University College London’s world-class faculty and the focal point for all built-environment professionals to re-think real estate.

The CX in Real Estate – Future Leaders Programme is the first short course of its kind to combine academic research with industry insight to provide a vital understanding of customer experience strategy in property, and the skills to implement it.

This exciting initiative is the culmination of research and consultation carried out by Experience Makers and partners that highlights an alarming gap between current training and the skills required for a fast evolving and increasingly service-driven industry.

The impact of coronavirus has plainly revealed the property industry’s reliance on its customers. The call for new and improved knowledge on how to create attractive and healthy places that respond to customer need has only increased.

Fellow course director Prof. Yolande Barnes, chair of the Bartlett Real Estate Institute, said: “This new short course is an exciting next step in our journey to explore the richness and diversity of the value that real estate generates.

 “The programme sets out to open minds to new ways of thinking about real estate in the Covid-19 era and will equip students with practical tools to put this into action. Our ambition is to foster a new generation of professionals who see real estate not as a commodity, but as means to deliver an outstanding experience to customers.”

The CX in Real Estate – Future Leaders Programme is aimed at ambitious individuals working in all areas of property and its related fields, who recognise that real estate has evolved and who see themselves leading CX programmes at asset, team or business level.

Initially delivered online via eight units over six weeks, the intensive short course provides participants with a rewarding learning experience, equips them with practical tools to take back to their business and offers the chance to be part of a new alumni of property professionals with a customer mindset.

The CX in Real Estate – Future Leaders Programme is supported by Experience Makers members and developed in consultation with an Advisory Group of leading organisations passionate about pushing the industry forward.

These include The Crown Estate, Get Living, MAPP, Savills and Transport for London. Their involvement ensures that the programme is rooted in real-world aims, actions and successes.

Howard Morgan, said: “RealService was founded 20 years ago with the ambition to transform our industry’s approach to customer relationships. RealService is a proud supporter of Experience Makers with it’s mission to champion education and research in customer experience in real estate. I am thrilled to be collaborating with Professor Yolande Barnes and UCL Bartlett, an academic partner that shares our ambition to rethink real estate.

 “I believe that this programme is an international first and am excited to welcome participants from the UK, Europe and the rest of the world.

 

Following the success of the first programme held in June the next programme will start in November 2021. Information about the next course is available here:

https://www.ucl.ac.uk/bartlett/real-estate/study/short-courses/cx-real-estate-future-leaders-programme-short-course

 

 


 

 

About BREI (+ UCL press office number +44 (0)7747 565 056)

 

The Bartlett Real Estate Institute is a new global institute that is rethinking the traditional view of real estate. We offer MSc programmes, short courses and research opportunities that critically evaluate real estate within its wider societal, economic and environmental context.

 

About Experience Makers www.experiencemakers.com

 

Experience Makers are the real estate industry champions for customer experience professional education and research supported by a network of leading organisations and trailblazing individuals committed to pushing the industry forward.

 

02/08/2021

By Sue Flatto

We can all see that the pandemic has accelerated some important working trends. There has been an increase in flexibility in terms of where and when people work. Automation of jobs has been pushed forward on the agenda with technology enabled working catapulted into our lives, and the horizon for robots replacing repetitive tasks and use of AI moving even closer.

At RealService, we have been talking with occupiers and observed that, although people who have been forced to work from home (WFH) by the pandemic have found that technology has enabled them to do that successfully, what is missing is the sociability and serendipity of the office. Companies are grappling with rethinking what the office is for. The working models based around most people spending most of their time office based has been shattered and forward thinking employers are going back to the drawing board and building a new model.

Whilst we are still in the midst of the pandemic, it is easy to look at the empty office space and conclude that people want to stay at home to work, and some studies, such as Leesman, show that people think they are more productive and are happy working from home. However, Professor Lynda Gratton, of London Business School points out that there are gaps that employers need to recognise and factor in.  The office also provides opportunity for socialising, networking and creativity. These things are very difficult to do remotely. Bruce Daisley, author of The Joy of Work, and Eat, Sleep, Work, Repeat, agrees that there are gaps that need to be filled when people are all at home, only meeting on Zoom. Those random, chance conversations after face to face meetings and informal brainstorms are valuable to organisations. As this plays out, companies are likely to find that they are missing these vital aspects of working life.

Research done during the Covid crisis says that, not only have people enjoyed working from home but, without the daily commute, they have been able to spend more time with their families and more time working. However, Lynda Gratton suggests that this has come at a price. Some feel isolated and unconnected and many are missing out on chance conversations and random meetings and connections which spawn creativity. It is essential to take on board that employees have their own, individual, experience of WFH and to understand what they are. No two WFH experiences are the same and so no single answer will suit everyone.

Bruce Daisley believes that the ‘Hotelification’ of office space will become the norm with companies forming team hubs that meet in the workspace together at pre agreed times. One thing we can all agree on is that to entice people back, the experience of being in the office needs to be better than being at home.

Another point that needs to be taken into account is ‘Zoom fatigue’. There is a limit to how much the brain can absorb, using this medium. We all need a social break now and again and some human interaction.

So how will businesses move forward?

One pointer for the future comes from  Kevin Ellis, Chairman, PWC who on 20th October 2020 is quoted as saying

“From the messages I get from our people I know that many really value having the option to use an office, whether for a personal or business need. In the longer term it will be important to continue to ensure offices offer people something more than they can get at home, whether it’s working together, innovating or learning. I am sure I’m not alone in wanting this to be the case.”

But not all employers see things the same way and it’s our view that office life will not go back to where it was before the pandemic. Some organisations are already designating employees and long term homeworkers and this trend is likely to continue. Perhaps the term ‘office’ will become obsolete, in favour of ‘workplace’. Businesses will need to re draw what work looks like, and what and where the workplace is. They will need to identify aspects of job roles that can be done at home, and others that would benefit from having people together, at least some of the time. They will need to gather insight into how their employees are responding to the new world.

So as we go through this pandemic, and come out of it, as we surely will, and as future of work emerges, we need to remember that we are inherently social beings and business need to harness the value of social interaction in a way that gives us the best of both worlds. In all of this, one thing is still true – customer and employee experience is everything.

Does your organisation have the skills and insight it needs to navigate its way through this new world?

RealService, like many other businesses has had to pivot our services to meet the needs of our clients during the pandemic, and we have been helping them keep even closer to their end customers.  For landlords, developers and managing agents, this means gaining more insight into the behaviours and emotional needs of employees and finding a way to be part of the solution not the problem.

If you’d like to discuss how you can think differently about the future of your office portfolio, contact:

 

Sue Flatto

Director

RealService

 

+44 203 393 9603