NEW YORK--(BUSINESS WIRE)--VTS, the industry's only technology platform that unifies owners, operators, brokers, and their customers across the real estate ecosystem, today released the findings from its fifth annual VTS Global Landlord Report, which identifies the strategies and methods being leveraged by landlords to drive retention, accelerate technology use, and build a resilient portfolio. The report is a result of a survey commissioned by VTS from an independent market research firm surveying today’s landlords from across the globe on their priorities and challenges in 2024.
The report shows that landlords are prioritizing the improvement of tenant experiences to drive retention of current tenants as opposed to leasing vacant space in 2024. According to the latest VTS Office Demand Index (VODI), national demand for office space marked its sixth consecutive month of annual growth, and VTS’ 2024 Global Workplace Report showed that 62% of companies are executing a hybrid work strategy, which both indicate a slow but steady recovery for the office market. However, the market remains fragile, and landlords have therefore shifted their focus to tenant retention and lease renewals, with technology being a top asset, followed by outdoor communal areas, and property operations.
“We are witnessing a conviction for a strong return-to-office in 2024 in contrast to years prior, and while positive for the market, it is becoming increasingly crucial for landlords to remain competitive to meet the evolving demands of tenants for enriched, interconnected workspaces,” said Nick Romito, CEO of VTS. “The strengthening of tenant relationships has driven meaningful results to landlords thus far despite market challenges, and we are continuing to see a culmination of tactics being deployed to put the needs of the tenant at the forefront of their strategies, which will be paramount to their success in 2024.”
Key takeaways from the report include:
Landlords’ Top Priority in 2024 is Creating Elevated Workplace Experiences to Drive Tenant Retention, with Only 41% of Landlords Prioritizing Leasing Vacant Space
- 57% of landlords prioritize the retention of current tenants, with 56% enhancing property management and tenant experience to do so.
- 82% of landlords are already seeing the length of renewals increasing or holding steady
- Landlords are 2x more focused on property improvements than portfolio diversification, investing in tenant experience technologies (33%), outdoor communal areas (31%), property operations (30%), food and beverage concepts (27%), and fitness centers (27%)
In the new age of AI, landlords are accelerating their use of and investment into technology
- 84% of landlords expect their technology investments to increase compared to last year, while only 4% anticipate a decrease
- Property management software is a landlord’s top tech investment of choice (44%), followed by leasing and asset management platforms (33%) and digital marketing software (26%)
- Nearly half (45%) are keen on the potential of AI to better inform portfolio decisions, advise savings and efficiencies and optimize market data
Year-over-year, the importance of digital marketing continues to gain traction, with those previously holding out due to budget constraints and a down economy jumping on board this year.
- In 2022 only 4% of landlords were utilizing digital marketing software, with that number spiking to 26% in 2024
- Social media ranks as the most powerful channel for finding new commercial real estate tenants (33%), with digital ads noted as the least effective method (11%)
- 34% of landlords spend over $50,000 annually to create, maintain, and update their digital web properties across their portfolio
Survey responses comprised a wide range of portfolio sizes and leasing specialties from hundreds of respondents globally.
Download the full 2024 VTS Global Landlord Report here.
About VTS
VTS is the industry's only technology platform that unifies owners, operators, brokers, and their customers across the commercial and residential real estate ecosystems. In 2013, VTS revolutionized the commercial real estate industry’s leasing operations with what is now VTS Lease. Today, the VTS Platform is the largest first-party insights and collaboration engine in the industry, transforming how strategic decisions are made and executed by real estate professionals across the globe.
With the VTS Platform, consisting of VTS Lease, VTS Market, VTS Activate, and VTS Data, every stakeholder in real estate is given real-time market information and workflow tools to do their job with unparalleled speed and intelligence. VTS is the global leader, with more than 60% of Class A office space in the U.S., and 13 billion square feet of office, residential, retail, and industrial space is managed through our platform worldwide. VTS is utilized by over 45,000 professionals and over 1.2 million total users, including industry-leading customers such as Blackstone, Brookfield Properties, LaSalle Investment Management, Hines, BXP, Oxford Properties, JLL, and CBRE. To learn more about VTS, and to see our open roles, visit www.vts.com.
