Satisfaction levels remain constant whilst value for money moves into the spotlight
Property Industry Alliance announces the results of the third UK Occupier Satisfaction Index.
Satisfaction levels amongst commercial tenants has remained static despite the economic downturn as costs become a priority and service charges come under further criticism, says the 2009 Occupier Satisfaction Index (OSI).
The latest report reveals that the overall UK Occupier Satisfaction Index remained unchanged with a score of 57 out of a possible 100. Although this stabilising of the index indicates that the recession has not yet dented overall satisfaction levels, it is clear that costs are the main concern and occupiers are looking to landlords to share this burden. The number of occupiers satisfied with value for money in the UK property industry declined, with many feeling that property costs are too high in the UK. Of the respondants, 35% were dissatisfied, up from 27% in 2008.In particular on 10% of respondents felt that service charges were value for money, whilst 50% considered them to be poor value, and the clear message was that a greater emphasis was needed on reducing costs, greater transparency and more consultation.
One upturn of the recession is that landlord flexibility has seen an improvement. In particular current market conditions are forcing a more flexible approach to leasing with satisfaction levels in the length of leases and the ability to break them up by 7% to 38%; however some still feel that property owners are not responding quickly enough to the market.
This year's results showed a steady improvement in the landlord tenant relationship, with the larger property owners leading the way. 48% of respondents rated the levels of service provided by property professionals highly. The report indicates that landlords are gradually getting better at communicating and responding but the property industry still has a long way to catch up with other service industries. However, small businesses and small retailers in particular are the least satisfied.
Jon Story, Chairman of the OSI Steering Group, comments; "This year's occupation satisfaction index shows no improvement in overall satisfaction levels, but there is no decline either. In a way this is good news as it shows stability, despite the turmoil of the recession.
"However, certain areas still have a long way to go, in particular satisfaction with landlords and service charges are extremely low. Also consciousness about costs and value for money comes out very strongly in the report. Many of the larger landlords are making some considerable progress in providing better services, which is encouraging. On the other hand smaller organisations seem to be the least satisfied with their service, so there is definitely a lot more work to be done to improve satisfaction in the sector."
The complete research findings can be found at www.occupier-satisfaction.co.uk
The 2009 Occupier Satisfaction Index was commissioned by the Property Industry Alliance made up of the BCO, IPF, Corenet Global UK Chapter, BPF and RICS. The index measures and monitors occupier satisfaction, focusing on key areas such as property supply, lease terms, business relationship, progress with environmental initiatives and value for money.