ALLIED PROPERTIES REIT
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1 ALLIED PROPERTIES REIT NATIONAL TENANT SATISFACTION SURVEY SUMMARY REPORT SEPTEMBER 30, 2012
2 INTRODUCTION In February 2012, Properties REIT engaged Altus Insite, a Real Estate Industry Research Firm to begin the process of establishing a National Tenant Satisfaction Survey that would be launched to their Tenants in May of The National Tenant Satisfaction Survey was geared towards the target market of all tenants and individuals occupying and or working within Buildings across Canada. The survey itself was unique in the formatting and verbiage used in order to best address and relate to all individuals participating. The main purpose of this initiative was to gain insightful feedback that would assist in determining the level of standard to which each Building was performing. It would outline areas of strength and more importantly areas for progress to which each Management Team would react and actively work to resolve. The overall survey results have indicated that s performance has exceeded industry benchmarks in Canada. Altus InSite s Benchmark is based on an Independent Canadian industry study of occupants completed Spring 2012, including a sample of private and public sector workers. Altus InSite s Client highs and lows performance measures identify the best performance in a building in their study or the worst performance in a building measured by InSite. Through measurements of Referral and Recommendation, Issue Resolution, Satisfaction and Momentum, just to name a few, it is evident that is contributing a high degree of effort towards their Management practices in order to aid in the establishment of a more positive atmosphere for its Tenants and the Communities to which they conduct business. s Management Teams, however, will stop at nothing to continue to serve their Tenants better and they are committed to enhancing their building services. By communicating these results and by acting on the areas outlined for progress, Properties REIT has created a positive approach to address the needs of their Tenants and the Buildings to which they occupy. Ultimately this should allow for a higher building standard and customer service throughout the portfolio. ~ 1 ~
3 REFERRAL AND RECOMMENDATION OF A TENANT S CURRENT ALLIED BUILDING Tenant s intention to recommend the building, both in the extremely/very likely category at 60% and the extremely/very/ somewhat likely category at 90%, are high and exceed the current industry benchmark. Likelihood of recommending staying in the Building Eastern respondents Extremely likely Very likely Extremely / very likely Somewhat likely Extremely / very / somewhat likely Not very likely Not at all likely Unlikely Based on further findings, it has been determined that any further improvements in HVAC, and a more consistent service across the portfolio, are likely factors that will assist in increasing these scores. REFERRAL AND RECOMMENDATION OF ANOTHER ALLIED OWNED AND MANAGED BUILDING Recommendation of the brand is very high with 52% of respondents extremely or very likely to recommend. This is significantly higher than the industry benchmark. 89% are extremely/very/somewhat likely to recommend this is considerably higher than InSite s Industry Benchmark. ~ 2 ~
4 Likelihood of recommending their Company lease space in another Building Eastern respondents Extremely likely Very likely Extremely / very likely Somewhat likely Extremely / very / somewhat likely Not very likely Not at all likely Unlikely ISSUE RESOLUTION It is evident that outperforms InSite s Industry Benchmark of resolving issues to tenants satisfaction at 67% compared to less than a third in the industry. Tenants satisfied with issue resolution of a reported dissatisfaction. respondents Eastern Yes No A key competitive advantage for is their communication with tenants. 98% of tenants with a building and or service related concern reported that issue. The fact that only 37% of these reported issues are coming directly to does not seem to have a huge impact on issue resolution. This suggests very high-quality communication between employees and their tenant contacts. ~ 3 ~
5 SATISFACTION Tenant s Satisfaction with Facility Management is high at 80% and also outperforms InSite s Industry Benchmark. Eastern Respondents Very satisfied Somewhat satisfied Very / somewhat satisfied Somewhat dissatisfied Very dissatisfied Very / somewhat dissatisfied The majority of respondents (58%) could not pinpoint a specific reason for their satisfaction. However, it has been determined that Cleaning and Management Service were the top two areas reported for an increased level of Tenant Satisfaction. HVAC issues have been reported to be the largest reason stated for tenant dissatisfaction. A progression plan for HVAC controls and monitoring has been recommended. Any improvements in the perception of the quality of HVAC going forward will have a positive impact on future satisfaction scores. Tenant satisfaction with the list of aided property manager statements is significantly higher than the industry in all measures. This suggests that the tenants are not just satisfied with the building and facilities but also with the level of customer contact and service. Tenant satisfaction with the list of aided building operator statements is even higher than the property manager statements. ~ 4 ~
6 MOMENTUM The Momentum score is very high at +14% and again exceeds InSite s Industry Benchmark. Momentum has been measured by performance of the Facility Managers relative to 12 months ago (1 year). Eastern Respondents Better Worse Net Better The same Management service is mentioned as the top reason for believing that is more successful in it s level of building standards and customer services, now relative to twelve months ago. The majority of respondents (75%) feel that there has been no change in the exemplary level of service being provided compared to one year ago, with only 6% feeling they have declined, for a net better of 14%. The Management Teams aim now, is to further improve these scores and investigate ways of making the provision of the service more consistent across the portfolio. ~ 5 ~
7 CONCLUSION Properties REIT by far outperforms the Industry Benchmarks in Canada, in every key area. A key competitive advantage for has been its increased levels of communication with Tenants. There are a variety of levels in which can continue to improve and receive an increased level of satisfaction relative to the current high of 80% determined by this National Tenant Satisfaction Survey, September 30, HVAC is a key opportunity for to drive increased satisfaction in the buildings alongside a more consistent experience across the portfolio. has initiated efforts to begin improving these standards by setting out a mandate to enhance their building and customer services. By actively responding to the key findings of this survey, Properties REIT will have the ability to improve their level of standards and services Nationally, and ultimately increase the satisfaction in recommending the Brand. ~ 6 ~
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