As 2019 creeps closer to the end, it’s important to both agree on your business priorities for the coming year as well as understand the resources and time available in this calendar year to enact timely change. We’ve all been through the cycle enough times to know that waiting until the new year to make the changes required to succeed in the new year is far too late. The time to act is now. But what action is required?
Earlier this month, Deloitte released The 2020 Commercial Real Estate Outlook in which they surveyed 750 CRE executives—owners/operators, developers, brokers, and investors—in 10 countries. The outcome of the survey is a detailed report outlining the challenges, opportunities, and the potential for transformation for CRE in 2020. Based on this report, the top priority for Commercial Real Estate organizations in 2020 is the tenant experience.
“Most respondents rated tenant experience as a top priority. Yet, for a majority, digital tenant experience is not a core competency.”
– Deloitte 2020 commercial real estate outlook
PwC and Urban Land Institute recently released a similar report detailing the emerging trends in real estate in the United States and Canada for 2020. “A major part of the industry’s success in building for the future,” explains the report, “lies in its ability to reshape real estate in response to changes in customer habits and expectations and evolving uses of space.”
According to Deloitte, 56% of CRE organizations plan on increasing their investment in tenant experience–related technology in the coming year. That includes everything from the much talked about IoT and mobile apps that are changing the front-end experience, to improving the often overlooked back-end experience by automating the leasing process, including: administration, accounting, and analysis.
“While cash flows, cap rates, and NPV calculations are always important in real estate, focusing on the customer experience has become a significant priority.”
– PwC and Urban Land Institute’s Emerging Trends in Real Estate, United States and Canada 2020
Where do you plan on investing?
Where many of your competitors may focus solely on the front-end, there is enormous potential in also improving the back-end. “CRE companies follow manual and laborious lease administration processes that often result in cost overruns, speed and accuracy issues, and higher potential for fraud,” states Deloitte. “Automating the leasing process can have immense influence on tenant satisfaction.”
Not long ago, all but your biggest tenants had to submit to your rent and accounts receivables process. Now and into the new year, because experiences as consumers are driving expectations at work, even your smallest tenants demand an invoicing and payment experience that works for them. In order to meet expectations and improve the tenant experience in 2020, you must provide an online, self-service, customizable, easy-to-use and secure AR process. And because IT projects take time to sign-off and implement, you really must start today.
According to PwC, CRE “need to pick up the pace of digital transformation if they are going to drive efficiencies and adopt the innovative and customer-driven models that are key to remaining relevant and continuing to grow.”
How do you start?
A cloud-based invoice-to-cash solution, such as VersaPay ARC®, enables CRE organizations to provide the superior tenant experience required. Make it easy for your tenants to know what they owe you, let them pay you the way they want and resolve issues that hold up payment. Allow your tenants to tailor their entire AR experience.
Take the steps necessary today to dramatically improve the tenant experience in 2020.
“We’ve always done it this way’ doesn’t cut it in real estate anymore to find the best way to do it.”
– PwC and Urban Land Institute’s Emerging Trends in Real Estate ®, United States and Canada 2020
Interested in learning more about how VersaPay ARC can improve your tenant experience and how quickly you can get up and running? Contact us today.