Outsourcing of building management services has moved beyond being a cost-saving exercise for the tenants to encompassing a wide range of factors to make the property more efficient and attractive, according to a CBRE report.
The review shows that tenants now expect more from the property such as end-of-trip facilities, security and now concierge servers, which are best undertaken by a third party manager.
In some cases the outsourced managers are basing their offerings on five-star hotel services, where the guest rules and demands are well catered.
CBRE's head of research, Australia, Stephen McNabb said traditionally, the decision to outsource property/facilities management has largely focused on cost, given that outsourcing typically delivers procurement savings of 10-20 per cent.
"However, the focus is now broadening, as owners recognise the level of asset services required to attract and retain tenants and deliver competitive advantage," Mr McNabb said.
The report says there was a growing recognition that property management adds value through its tangible impact on tenant attraction and renewal, particularly when it is informed by an understanding of occupier needs and priorities.
It focuses on a recent CBRE study in EMEA, To Stay or Not to Stay, which identified that a building's facilities and attributes as well as the quality of the technical services provided by the building management team could be the "tipping point" for tenants when considering whether to move.
CBRE national director, asset services, Suzette Lamont said that scale in systems, access to a wide and experienced talent, and the drive for best practice was leading a growing number of owners to outsource their property management functions and seek higher value from the relationship with the management team.
Examples of best practice include The Edge in Amsterdam, which has been described as one of the most connected buildings in the world, enabled by technology and data.
"Another case study involves City Point in London, a building that needed to be recommissioned and rebranded to create an environment and service level that would enable it to compete with brand new office stock," Ms Lamont said.
