If you’re a commercial building owner or operator in the U.S., you’ve likely felt the shift in tenant expectations. Office usage patterns have been disrupted by remote and hybrid work. At the same time, specialized sectors like life sciences are booming, raising the bar for what a state-of-the-art facility must offer.
In this climate, focusing on tenant experience is no longer a “nice-to-have” but more of a must-have. However, this creates an incredible opportunity to truly differentiate what your “tenant experience” is and means.
Savvy building owners are already catching on to the importance of tenant experience. Recent industry surveys reveal just how universal this understanding has become:
In short, your peers overwhelmingly agree that meeting modern tenant expectations is vital for success. They know that a happy tenant means higher retention, more robust demand, and ultimately a healthier bottom line for the property.
Focusing on tenant experience isn’t just a feel-good move—it’s backed by hard data on tenant retention and financial performance. Studies show that happier tenants translate directly into better business outcomes for you. For example, a large-scale analysis of 39,000+ tenant surveys (covering 2,900 buildings from 2009–2022) found that a one-point increase in a tenant’s overall satisfaction is associated with an 8% higher likelihood of lease renewal, an 11.5% higher likelihood that the tenant would recommend the property, and a 15.8% lower probability of that tenant moving out. In other words, when tenants feel satisfied and valued, they are far more inclined to stay for another lease term (and even spread the word to other potential tenants). Considering how costly it is to market, build out, and offer concessions for new leases, keeping existing occupants happy can significantly improve your net operating income.
There’s a clear ripple effect: satisfied tenants lead to higher occupancy, lower turnover costs, and even the ability to command premium rents over time. It’s no surprise that properties with strong tenant satisfaction often outperform in revenue growth. For building owners and operators, the takeaway is simple: Investing in tenant experience pays off in loyalty and long-term value.
The traditional office environment has been irrevocably changed by remote work. With most companies embracing hybrid schedules, the office must earn its keep as a destination. In fact, 80% of current office occupiers have adopted and plan to sustain hybrid work policies, meaning fewer people in the office each day. This makes the on-site experience even more crucial on the days employees do come in. In this environment, you need to position your building as a compelling destination rather than just another commoditized space.
What does that entail? Amenities and variety are crucial in attracting and retaining office tenants. A 2023 survey by CBRE revealed that 65% of companies now require employees to return to the office, with many emphasizing the importance of enhanced workplace environments to encourage attendance. Popular additions include fitness centers, tenant lounges, and outdoor spaces—features that enrich the daily experience for employees. This focus on amenities isn't merely about keeping up with trends; it's a strategic move to make the workplace more enticing.
Moreover, properties with thoughtfully designed amenities experience higher tenant attraction and retention rates. A study by Cushman & Wakefield found that among the top five most common amenities, 80% of buildings offer both on-site parking and access to public transportation within two blocks. This underscores the importance of amenities and variety in meeting tenant expectations and staying competitive in the market.
Even the best amenities, however, will fall flat if basic needs aren’t met. Comfort, safety, cleanliness, and convenience are baseline expectations. Success means covering those fundamentals and offering extras that meaningfully improve tenants’ work lives. A well-equipped gym, an on-site café or food hall, fast Wi-Fi everywhere, cozy collaboration areas, event programming, convenient parking or transit options — all these elements contribute to a positive tenant experience. By investing in such upgrades (and promoting them), you give tenants and their employees tangible reasons to enjoy being in your building. Those investments can pay off at lease renewal time, when a tenant who loves the environment is far more likely to stay on board.
Life science facilities (labs, R&D centers, biotech offices) are a unique segment of commercial real estate that has thrived even as traditional offices face headwinds. In fact, recent market data shows life science properties had record-low vacancy rates of around 5% in early 2022 (dropping to just 3.6% in top clusters like Boston/Cambridge). Even with a wave of new lab space coming online and softening demand in 2023, the national life science vacancy only rose to roughly 9.1%, still far below typical office vacancy levels. This resilience, however, doesn’t mean life science landlords can be complacent. Life science tenants are just as focused on the quality of their environment because it ties directly to their ability to innovate and attract talent.
When employees are satisfied with their work environment, their engagement and productivity increase dramatically. Life science tenants often prioritize things like convenient transportation, nearby dining options, green spaces, and fitness facilities adjacent to their workplaces. If you operate life science buildings, providing these kinds of perks, whether through on-site services or by choosing properties in amenity-rich innovation parks, can make your premises highly attractive. The payoff is not just happy lab workers but also companies that are more likely to expand with you as they grow, rather than look elsewhere for a better space.
Bottom line: Whether it’s a corporate office or a cutting-edge lab, the people inside want an environment that supports their work and well-being. By tailoring the tenant experience to the specific needs of your sector (be it flexible collaboration spaces for offices or specialized infrastructure and community feel for labs), you set your property apart from the competition.
Delivering a great tenant experience isn’t solely about shiny new amenities; it also hinges on how well your building operates day to day. Tenants absolutely notice if elevators are chronically slow, the HVAC is inconsistent, or if their maintenance requests vanish into a black hole. Efficient, responsive building operations form the hidden backbone of tenant satisfaction. As an owner/operator, ensuring high service levels in maintenance, security, and management responsiveness is key to keeping tenants happy.
Yet, we know property teams are stretched thin. Many owners face labor shortages and budget pressures, which means doing more with less on the operations side. This is where smart investments in commercial property management software are making a difference. The motivation is clear: greater efficiency and automation can free up your team’s time while improving service delivery. In the same survey, 46% of property professionals said that managing certificates of insurance and tenant work orders are among the most time-consuming parts of building operations, precisely the kind of routine tasks that modern software can streamline. It’s no wonder that 68% of property teams are prioritizing software for building operations and maintenance as a top tech focus.
By leveraging technology in operations, you not only cut costs and save time but also deliver better service to tenants. For instance, a modern work-order platform or building management system can proactively flag equipment issues before they disrupt tenants, dispatch the right technician quickly, and keep the tenant informed along the way. A tenant who submits a service request via a mobile app and sees updates in real time – “Engineers have fixed the HVAC on your floor” – feels heard and taken care of. That experience beats calling a hotline repeatedly and wondering if anyone is on the case. The data backs this up: building teams are recognizing these benefits, with the number of teams planning to invest in smart building/IoT technology up 53% year-over-year. Automation (like IoT sensors, predictive maintenance systems, and AI-driven energy controls) can maintain comfort and uptime in ways manual efforts simply can’t match at scale.
Importantly, operational excellence underpins all the fancy amenities we discussed. A rooftop lounge or gym that isn’t well-maintained will quickly turn into a liability rather than a selling point. Conversely, a building known for its spotless facilities, prompt repairs, and attentive management will earn tenant loyalty even if it doesn’t have the flashiest design. As an owner/operator, invest in the tools and training that enable your property team to be highly responsive. Many forward-thinking firms are also upping their communication frequency with tenants regarding building operations (e.g., notifying tenants of any issues or updates proactively) since transparency builds trust.
Beyond the bricks-and-mortar and behind-the-scenes operations, think about how you engage and communicate with your tenants. This is an area ripe for improvement in many portfolios. Traditionally, building managers have relied on email blasts, paper notices, or occasional tenant meetings to stay in touch. In fact, 77% of CRE property teams say email is still their most common method of communicating with tenants. The problem? Email is one-way, often generic, and easy to ignore. Meanwhile, only 8% of property teams are using a dedicated tenant experience platform with push notifications to communicate, which means the vast majority haven’t tapped into more modern, interactive channels. There is a huge opportunity here for you to differentiate your service by adopting better tenant engagement software.
Consider what a tenant experience platform or app could do. It provides a single interface where tenants (and their employees) can do things like submit requests, RSVP to building events, book shared amenities (conference rooms, fitness classes, etc.), and receive real-time updates. Owners are recognizing the appeal: in one survey of major landlords, a full 80% said they believe tenants are keenly interested in comprehensive building mobile apps for their properties. Moreover, over four in five landlords acknowledged that a digital tenant experience platform now plays a central role in delighting tenants and streamlining processes in the building. If you haven’t explored these tools yet, it may be time to catch up – or risk being left behind by competitors who have adopted them.
Crucially, technology also helps you gather and use tenant feedback effectively, but many are not yet collecting it in a proactive way. In fact, 63% of property professionals admit they don’t use (or aren’t sure if they use) tenant survey and polling data to guide decisions – a major missed opportunity. A tenant experience platform can continuously collect feedback (through quick polls, usage analytics, etc.) rather than relying only on infrequent annual surveys. This constant pulse check allows you to tailor amenities, adjust services, and address issues before they escalate. For example, if data shows low usage of a certain amenity, you might repurpose it, whereas high demand for another service could justify expanding it. Data-driven adjustments like these demonstrate to tenants that you’re responsive to their needs, further boosting satisfaction.
That said, technology should augment, not replace, the human touch in property management. A mobile app will never fully substitute for a friendly, solution-oriented property manager or a dedicated tenant experience coordinator who knows your tenants by name. The winning formula is blending tech-powered convenience with high-touch customer service. Many leading owners are doing exactly this: they’ve introduced tenant experience apps alongside on-site community managers or experience directors. Routine interactions (like room bookings or announcements) are handled digitally for speed and efficiency, while relationship-building and complex issues are handled personally. The result is a cohesive experience where tenants feel both empowered and cared for.
One more reason to lean into engagement technology: today’s tenants (and their employees) are used to an on-demand, digital-first world. From smart homes to smartphone apps for everything, people expect their workplace to be just as convenient. In a recent global survey of renters, nearly 73% agreed that advanced tech (like keyless entry and smart amenities) would influence their decision to sign a lease. Commercial tenants are no different in desiring modern experiences. Offering features like mobile access, digital reservation systems, community forums, or even perks via an app can differentiate your building in the market. It sends a message that you are committed to a modern, tenant-centric experience.
As a building owner or operator, you are ultimately in the people business. Office tenants and life science tenants alike have more choices and higher expectations than ever. The data is clear: Prioritizing tenant experience is not just good hospitality – it’s good business. By listening to your occupants and investing in what improves their daily experience, you set your property up for sustained success.
The benefits materialize in multiple ways. First, you’ll attract more interest when space does become available. Second, you’ll retain tenants longer; satisfied tenants are far likelier to renew, whereas unhappy ones will seek alternatives (an insight quantified by that 8% uptick in renewal likelihood per satisfaction point. Third, you build a positive reputation in the market. Tenants talk to each other, brokers notice, and being known as an owner who “gets it” can draw in quality tenants in the future.
In a challenging market, providing an exceptional tenant experience is one of the most effective strategies to differentiate your building and protect your revenue. It turns tenants into partners rather than mere customers. So, double down on those amenities that add convenience and community. Streamline your building operations for top-notch service. Leverage technology to engage and delight your occupants. By doing so, you’re not only meeting the moment, you’re future-proofing your assets. Take care of your tenants, and they will take care of your building’s success for years to come.
Looking to improve the tenant experience in your building? Cove streamlines operations by centralizing maintenance, communications, and tenant services into one easy-to-use platform, helping you cut costs, save time, and enhance tenant satisfaction. Unlike legacy systems, Cove provides ongoing support and real-time insights so you can make smarter investment decisions and maximize your building’s long-term value. Book a demo here to see how Cove can improve the value of your building today.