The fifth annual VTS Global Landlord Report gives us reasons to be optimistic. For two years in a row, landlords have reported longer lease lengths for new leases and renewals as well as tenant requirement sizes starting to grow once again.
But these victories have been hard-won. You were there; you know exactly what it took to get through these past four years. We weathered some of the darkest days in CRE history together, making tough calls, holding off on investments, and doing far more with far less as we waited to see when – or if – tenants would return.
We are here today because we focused on the right things:
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LETTER FROM THE CEO
2024 VTS Global Landlord Report
2024 VTS Global Landlord Report
Address your top tech priorities
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Each of these choices has ultimately made our industry stronger. Today, landlords are still prioritizing tenant relationships, investing in technology at an accelerated pace, and laying the foundation for a
solid future.
There’s still more to be done, especially closing the data visibility gap so landlords can make better in-the-moment decisions. But we’ve done a lot right, and that’s something to celebrate as we build on our progress in 2024.
Here’s to a promising year ahead.
Retaining tenants and renewing existing leases
Prioritizing relationships and the tenant experience
Using technology to transform business processes
1
2
3
Nick Romito
Chief Executive Officer, VTS
Accelerating tech investment
2024 Global Landlord Report
We survived. Now we thrive.
CRE PropTech has flourished in the years after COVID-19. At first, it was a matter of survival; landlords had to innovate whether they were ready or not.
As tech innovations like virtual tours and digital marketing helped them stabilize their businesses in the wake of one of the most disruptive periods in CRE history, they began to imagine what the future might look like. And the possibilities were exciting.
Fast forward four years, and we are now in the golden era of CRE technology.
Landlords now use technology to:
Improve operations
Upgrade their marketing game
Make better data-driven decisions
Shave days, weeks, and months off of laborious deal lifecycles
Manage remote and hybrid work demands
Navigate a tenant-centric market
Understand space, utilization, and tenant sentiment in real-time
…and more
•
•
•
•
•
•
•
•
The vast majority of landlords (84%) say they expect their technology investments to increase compared to last year, while only a small sliver (4%) are cutting back.
Their top investment? For the second year running, landlords are focused on property management tools. Following close behind are leasing and asset management software and digital marketing software.
Landlords are also eyeing new advances in AI. Nearly half say they’re looking to a future where AI helps them make better portfolio decisions, locate savings and efficiencies, and synthesize market data.
4%
Expect to cut back technology investments
84%
Expect their technology investments to increase
Investing in potential
Extracting untapped insights
If the first wave of tech adaptation has increased business efficiency, the next wave should be about extracting valuable, as-yet-untapped data insights.
Overwhelmingly, landlords tell us they still lack critical insights into the market and their portfolios. The right tools can transform those ambiguities into opportunities, but CRE still needs to realize the full potential of the technology available today.
44%
33%
26%
26%
24%
Property management software
Leasing and asset management software
Digital marketing and marketing automation software
Data, analytics, and reporting software
Smart building technology
Which technologies are landlords investing in this year?
45%
45% of landlords are open to investing in AI during 2024 to make better portfolio decisions
How landlords plan to use AI:
Locating savings/operational efficiencies
Synthesizing and analyzing market data
Prospecting
•
•
•
57%
41%
12%
Retain, renew, repeat
For landlords, retention and renewal are still the name of the game. This page of the playbook hasn’t changed since the pandemic, because it works. Retention continues to be a unifying priority for all other strategies in 2024.
We’re seeing landlords continue to focus their attention and investment dollars on keeping current tenants happy. Just like last year, 57% say this is their #1 priority.
Tenant retention and lease renewal eclipse other portfolio strategies. Only 41% of landlords say leasing vacant space is a top focus in 2024, with many doing all they can to make it easier for tenants to stay. For example, over half of landlords have increased rent concessions across Class A, B, and C properties since the pandemic.
Upgrading the tenant experience
In service to this, landlords are uplevelling property management, improving the tenant experience, and investing in major property improvements.
Whether touchless building technology, outdoor communal areas, or fitness facilities, landlords are finding new ways to delight tenants and give them reasons to stay. They are also investing in technology to create a better tenant experience, and property management software is their top choice.
Slower sustainability investments
Finally, while ESG initiatives have captured headlines, only 12% of landlords are prioritizing them in the current high-interest rate environment.
Initiatives like carbon emission trackers and renewable power sources may have to wait until CRE gains a more solid footing in the post-pandemic world. The good news is that there are positive signs of change up ahead.
Portfolio priorities and capital investments
2024 Global Landlord Report
57% of landlords say keeping current tenants happy this is their #1 priority
Only 41% of landlords say leasing vacant space is a top focus in 2024
Only 12% of landlords surveyed are prioritizing ESG initiatives
The top landlord priorities in 2024:
22%
Debt management and restructuring
41%
Leasing vacant space
47%
Property improvements (CapEx)
56%
Improving property mgmt and tenant experience
57%
Retaining and renewing current tenants
What tech are landlords investing in 2024?
24%
Smart building technology
>50%
Over half of landlords say rent concessions in their Class A, B, and C buildings have increased since the start of COVID-19
26%
Data, analytics, and reporting software
26%
Digital marketing and marketing automation software
33%
Leasing and asset management software
44%
Property management software
The latest leasing insights
A positive trajectory
Up, up, up: the future of CRE looks positive, with key indicators trending upward for the second year in a row.
This is a welcome sign of recovery after COVID-19 emptied buildings and left landlords wondering how and if tenants would return.
Our first survey post-COVID, in 2021, revealed that a clear majority of landlords were expecting shorter lease terms for both new leases and renewals, as well as shrinking square footage requirements.
But three years later, that story has changed. Although landlords are still focused on retention over expansion, they overwhelmingly expect a positive trajectory for lease activity in 2024.
Last year's survey showed signs of this upswing, as landlords indicated optimism about lease terms and square footage needs. Now, we’re seeing that trend hold steady into 2024.
2024 Global Landlord Report
59%
20%
21%
of landlords see it
increasing
of landlords see it remaining about the same
of landlords see it decreasing
How is the average lease length for new leases changing in 2024?
How is the average lease length for renewals changing in 2024?
55%
27%
18%
of landlords see it
increasing
of landlords see it remaining about the same
of landlords see it decreasing
50%
21%
29%
of landlords see it increasing
of landlords see it remaining about the same
of landlords see it decreasing
How are space requirements changing on a square footage basis in 2024?
60%
28%
12%
of landlords see it increasing
of landlords see it remaining about the same
of landlords see it decreasing
How are deal cycle times changing in 2024?
Nearly half
It takes nearly half of landlords days, weeks, or months to calculate exposure risk to a particular tenant, compared to best in class landlords who report it taking minutes
72%
72% of landlords say tenants are demanding improved leasing and subleasing flexibility
Tenant demand for space conditions:
White-boxed
9%
Raw/unfinished
23%
The state of marketing in commercial real estate
A giant leap for digital marketing
Digital marketing has transformed CRE, giving landlords direct access to more qualified tenants, enhancing how they serve existing tenants, and accelerating new deals.
And the measures landlords took immediately after COVID-19 seem to be paying off: in 2021, landlords told us that digital marketing would be necessary to lease space post-pandemic, with nearly 60% saying tenants expected a virtual tour before committing to an in-person appointment.
Only 4% of landlords invested in digital marketing software in 2022. Then, as if overnight, the numbers spiked: by last year, over half were doing it.
This year, those who may previously have held out due to budget constraints are joining: 26% of landlords say they are investing in digital marketing for 2024.
2024 Global Landlord Report
Portfolio
websites
What works where
Landlords tell us that their most valuable tool now is the ability to recreate the value of an in-person visit. Accurate floor plans and virtual tours are particularly powerful – and more effective than postcards and other direct mail, building stacking plans, or site maps.
The best marketing channels are now digital. Social media ranks as the most effective channel for finding new CRE tenants, which may surprise those who viewed it as better-suited to residential real estate.
Another surprise: digital ads appear to be the worst channel for CRE marketers. In fact, after social media, the top three ways to entice new
tenants are portfolio websites, email, and building websites and microsites.
Top three ways to entice new tenants:
Email
communications
Building websites
and microsites
Finally, landlords prefer short-form social media posts when consuming industry content. Written and video are nearly neck-and-neck in this game, with landlords saying they favor:
Top channels landlords favor:
Short-form emails
and blog posts
30-second clips on Instagram or TikTok
Brief interview clips
and building tours
Gaining clarity and speed
Despite their success, landlords could still use more visibility into the magic behind their marketing. Most say they are flying blind when tracking the total number of listing views (anonymous or de-anonymized) or trying to measure their channel performance.
Landlords also have an opportunity to save time updating marketing materials and listings for each building in their portfolio. This clunky process was a challenge last year and still bogs down marketing teams today. They spend at least five hours–often far more–on this laborious task.
That’s too much time to waste when the technology to solve the problem is already here.
The content formats that perform best with tenant rep brokers and potential tenants:
37%
Accurate space details like condition, terms, and amenities
37%
Building and space photography
Virtual tours
45%
44%
Accurate floor plans
33%
16%
13%
Social media
Portfolio website
Email
Building website/microsite
11%
The best-performing channels to find new tenants:
The worst channel to find new tenants:
Digital ads
33%
Building and space videos
Content that isn’t high-performing with tenant rep brokers and potential tenants:
Building stacking plans, postcards or other direct mailers, and site maps
59%
Short-form written content: Emails, blog posts, LinkedIn posts, etc.
Short-form video content: Instagram Reels/TikTok, interview clips, building tours, etc. (under 30 seconds)
Mixed media: Infographics, interactive web pages, etc.
56%
41%
The most engaging digital formats, according to landlords:
Most landlords are flying blind:
50%
Only half can track the total number of anonymous views of their listings
1 in 3
About one in three can track individual, de-anonymized views of their listings
1 in 5
Just one in five can track channel performance
40%
Only 40% of landlords can update their marketing materials and listings for each building across their web properties in under 5 hours
34%
34% of landlords spend over $50,000 annually to create, maintain, and update their digital web properties across their portfolio
Fostering growth through tenant relationships
Relationships are everything – but they’re not always easy
2024 Global Landlord Report
The future of our industry is based on the tenants already under our roofs. In this tenant-centric market, landlords are doubling down on initiatives that will keep current tenants renewing, from rent concessions to amenities upgrades.
But it’s not always easy. A perennial problem we hear about each year is that property managers simply don’t have the time (or budget) to focus on tenant engagement.
This year, landlords tell us that tenants aren’t always willing to engage, either. And in the past, landlords have said they aren’t sure how to communicate with tenants or fully understand what they value.
It’s the question without a clear answer: what do tenants want?
If you build it, will they come?
This year, only a small fraction of landlords say they are highly confident in knowing exactly which capital property investments and building features tenants require.
That has also been the case in past years: landlords consistently tell us they are unsure about this and need more tools and insights into how tenants use their space and amenities in real-time.
Top three ways to entice new tenants:
Tenant experience technologies
Outdoor
areas
Property
operations
Short-form emails and blog posts
30-second video clips like Instagram Reels and TikTok videos
Brief interview clips and building tours
•
•
•
Flex it like you mean it
There is one thing landlords do know for sure: flex work has been essential ever since COVID-19 changed the rules of the game. Today, the majority of landlords see it as an important part of their occupancy, retention, and engagement strategies – a sentiment noted in the past two reports.
However, this hasn’t stopped them from trying to wow tenants. This year, landlords’ top priorities include tenant experience technologies, outdoor areas and property operations.
These investments have all trumped adding staff to improve the tenant experience. Despite the heavy investments we know landlords are making in technology, one buzzy trend still hasn’t caught on: the Internet of Things. Only 19% of landlords have prioritized it.
To engage tenants in the best possible ways, landlords need better visibility into their preferences and space and amenities usage. Technology can provide much-needed clarity in this area, ensuring that landlords’ future investments align with tenants’ real needs.
26%
20%
19%
Property managers don’t have time to focus on tenant engagement
Property managers don’t have enough budget or resources for events and activities
Tenants aren’t willing
to engage
The biggest challenges for landlords when it comes to building tenant relationships:
17%
Only 17% of landlords are highly confident they have adequate insight into which capital property investments and building features tenants require from the building and workplace suite
The top investments landlords are making in 2024 to improve the tenant experience:
27%
Food and beverage options (complementary and for purchase)
27%
Fitness center
30%
Property operations
Outdoor communal areas
33%
31%
Tenant experience technologies
To improve the tenant experience, more landlords are adding fitness centers than are adding staff
Key takeaways from the
2024 Global Landlord Report
2024 Global Landlord Report
The
insight gap
5
Nearly half of landlords spend days, weeks, or months calculating tenant risk exposure, compared to best in class landlords who report it taking minutes
Only 17% of landlords know which capital property investments and building features tenants want
Landlords need better data to make smarter decisions.
The golden era of technology
4
say technology investments will increase this year, while only 4% expect a decrease
of landlords are eyeing AI’s potential
Landlords are accelerating technology investments.
84%
3
Retention, renewal, relationships
33%
31%
30%
27%
27%
Tenant experience technologies
Outdoor communal areas
Property operations
Food and beverage options
Fitness centers
Landlords are more focused on property improvements than portfolio diversification. These are the top tenant experience investments.
Positive indicators
say the length of renewals is increasing or holding steady
say the length of new leases is increasing or holding steady
say space requirements are growing or holding steady
For the second straight year, landlords report a positive leasing trajectory.
82%
79%
71%
2
Top landlord priorities for 2024
Retaining and renewing current tenants
Improving property management and tenant experience
Property improvements (CapEx)
Only 41% of landlords say leasing vacant space is a top priority. This year it's all about creating great experiences that entice tenants to stay.
57%
56%
47%
1
45%
49%
17%
19%
The Internet of Things is low on the priority list when it comes to improving tenant experiences, with only 19% of landlords prioritizing it
Closing the data gap
How can we know what we don’t know?
This brings us to the final piece of the puzzle: the data gap. Surveying hundreds of landlords over the years has shown us that despite massive leaps in technology, landlords still need to realize the full potential of the data and insights available today.
Landlords must tap into them to make better real-time decisions about tenant risk, investment priorities, and their overall portfolio.
The right data at the right moment
Landlords need reliable data to make pivotal business decisions when they matter most – not weeks or months later. But that process still lags for many landlords.
Only a fraction are satisfied with the time it takes them to do due diligence on investment decisions, business plans, and budgets — all concerns brought up in previous years.
Access to quality data also continues to be a challenge for landlords. Previously, landlords have told us they cannot trust the data sources they use to get timely market insights. And this year, only 19% say they can access up-to-date and accurate information to make investment and leasing decisions.
This is a rich avenue of potential for landlords who can leverage technology to get timely, accurate, and trustworthy insights–and we hope to see a positive reversal of these trends in future surveys.
2024 Global Landlord Report
17%
18%
17%
Only 17% of landlords are satisfied with the time it takes to do due diligence for investment decisions
Only 18% of landlords are satisfied with the time it takes to do due diligence for business plans and budgets
Only 17% of landlords have insight into the capital property investments and building features tenants want from building and workplace suites
CONCLUSION
Much of the progress our industry has made this year has been promising, and we believe that is because landlords wisely prioritized keeping current tenants happy and enhancing the tenant experience during the turbulent post-pandemic years. Those efforts are now paying off with longer leases and greater space requirements.
We continue to operate in a tenant-favorable market limited by economic slowdowns and the normalization of hybrid work. However, while overall office demand is still about a third below pre-pandemic levels, most tenants have seen attendance stabilize and should be more confident making long-term leasing commitments.
Landlords can expect greater stability and a growing appetite for prime office space. Those with a portfolio of post-2010 buildings and competitive amenities stand to gain the most: CBRE predicts that demand for prime space will soon outpace new supply, leading to modest rent increases and reduced vacancy risk.
Despite prevailing industry headwinds, landlords still have ample opportunity to improve the way they do business, particularly when it comes to how they use technology and harness data.
A major area of opportunity will be closing the data gap: landlords still lack adequate visibility into investment decisions, tenant risk exposure, and what tenants want and need from a space. Too many landlords spend far too long doing due diligence on pivotal business decisions, only to find the data they depend on is outdated, inaccurate, or unreliable.
Better data also means better marketing decisions: Landlords want more clarity on which channels perform best, who is viewing which property websites and listings, and how to act strategically based on those insights.
With the accelerated technology investments landlords anticipate in 2024, however, we think it’s just a matter of time until more landlords realize the very real potential of these opportunities.
In the past four years, our industry has shown that it can adapt, evolve, and improve in the toughest circumstances. Now, we’ll need to use the same creativity, grit, and determination to make the most of the exciting opportunities ahead.
We can’t wait to see what’s possible.
Address your top tech priorities
in 2024 with VTS
Get your free demo today!
Copyright View the Space, Inc. 2024
BACK TO TOP
New research on how CRE landlords are driving retention, accelerating technology use, and building a strong foundation for the future
55%
Pre-built/move-in ready
13%
Turnkey
71%
71% of landlords say flex work is important to their tenant occupancy, retention, and engagement strategies
19%
Only 19% of landlords have access to the up-to-date and accurate information they need to make the best investment and leasing decisions
About this study
Every year, VTS commissions an independent market research firm to survey landlords across the globe and delve into the ideas, challenges, and strategies driving our industry. This year's survey was taken by over 400 verified landlords, nearly all senior leaders:
100% were budget decision-makers
65% were landlords with portfolios exceeding 11 million RSF
26% were executive-level leaders
85% had managerial responsibilities
•
•
•
•
From post-pandemic aftershocks to shifting market conditions, we’ve given landlords vital insight into the dynamics that shape commercial real estate. And this year, the overarching theme is all about tenant retention and renewal–plus the investments and technologies that drive them.
The 2024 Global Landlord Report is an insider’s view into how industry leaders are responding to current conditions and creating new opportunities. We hope it provides valuable context for your business, as well.
A letter from the CEO
Table of contents
Top takeaways
Portfolio priorities and capital investments
Accelerating tech investment
The latest leasing insights
The state of marketing in commercial real estate
Fostering growth through tenant relationships
Closing the data gap
Respondents selected multiple options to represent their top 3 priorities.
Respondents selected multiple options to represent their top 3 priorities.
Respondents selected multiple options to represent their top 3 priorities.
Respondents selected multiple options to represent their top 3 priorities.
A letter from the CEO
Top takeaways
Portfolio priorities and capital investments
Accelerating tech investment
The latest leasing insights
Table of contents
The state of marketing in commercial real estate
Fostering growth through tenant relationships
Closing the data gap
LETTER FROM THE CEO
The fifth annual VTS Global Landlord Report gives us reasons to be optimistic. For two years in a row, landlords have reported longer lease lengths for new leases and renewals as well as tenant requirement sizes starting to grow once again.
But these victories have been hard-won. You were there; you know exactly what it took to get through these past four years. We weathered some of the darkest days in CRE history together, making tough calls, holding off on investments, and doing far more with far less as we waited to see when – or if – tenants would return.
We are here today because we focused on the right things:
Accelerating deal cycles
While landlords have reason to feel good about the future, they could do more to speed it along. Unfortunately, the majority of landlords are still grappling with unwieldy deal cycle times.
One reason may be that it still takes too long to calculate tenant risk exposure – with some landlords saying it requires days, weeks, or even months to determine their exposure.
That’s where the right tech tools can help, cutting the process down to hours or even minutes. And with so much more tech investment on the horizon, we hope to see deal cycle times decrease in the future.
Each of these choices has ultimately made our industry stronger. Today, landlords are still prioritizing tenant relationships, investing in technology at an accelerated pace, and laying the foundation for a solid future.
There’s still more to be done, especially closing the data visibility gap so landlords can make better in-the-moment decisions. But we’ve done a lot right, and that’s something to celebrate as we build on our progress in 2024.
Here’s to a promising year ahead.
LETTER FROM THE CEO
Key takeaways from the 2024 Global Landlord Report
Positive indicators
2
Retention, renewal, relationships
3
The golden era of technology
4
The insight gap
5
2024 Global Landlord Report
Portfolio priorities and capital investments
For landlords, retention and renewal are still the name of the game. This page of the playbook hasn’t changed since the pandemic, because it works. Retention continues to be a unifying priority for all other strategies in 2024.
We’re seeing landlords continue to focus their attention and investment dollars on keeping current tenants happy. Just like last year, 57% say this is their #1 priority.
Tenant retention and lease renewal eclipse other portfolio strategies. Only 41% of landlords say leasing vacant space is a top focus in 2024, with many doing all they can to make it easier for tenants to stay. For example, over half of landlords have increased rent concessions across Class A, B, and C properties since the pandemic.
57%
56%
47%
41%
22%
Retaining and renewing current tenants
Improving property mgmt and tenant experience
Property improvements (CapEx)
Leasing vacant space
Debt management and restructuring
The top landlord priorities in 2024:
Respondents selected multiple options to represent their top 3 priorities.
44%
33%
26%
26%
24%
Property management software
Respondents selected multiple options to represent their top 3 priorities.
Leasing and asset management software
Digital marketing and marketing automation software
Data, analytics, and reporting software
Smart building technology
What tech are landlords investing in 2024?
2024 Global Landlord Report
Accelerating tech investment
44%
33%
26%
26%
24%
Property management software
Leasing and asset management software
Digital marketing and marketing automation software
Data, analytics, and reporting software
Smart building technology
Which technologies are landlords investing in this year?
2024 Global Landlord Report
The latest leasing insights
55%
23%
13%
9%
Pre-built/move-in ready
White-boxed
Turnkey
Raw/unfinished
Tenant demand for space conditions:
2024 Global Landlord Report
The state of marketing in commercial real estate
45%
44%
37%
37%
Accurate floor plans
Virtual tours
Building and space photography
Accurate space details - condition, terms, & amenities
The content formats that perform best with tenant rep brokers and potential tenants:
Respondents selected multiple options to represent their top 3 priorities.
33%
Building and space videos
Content that isn’t high-performing with tenant rep brokers and potential tenants:
Building stacking plans, postcards or other direct mailers, and site maps
2024 Global Landlord Report
Closing the data gap
2024 Global Landlord Report
2024 Global Landlord Report
The biggest challenges for landlords when it comes to building tenant relationships:
26%
20%
19%
Property managers don’t have time to focus on tenant engagement
Property managers don’t have enough budget or resources for events and activities
Tenants aren’t willing
to engage
17%
Only 17% of landlords are highly confident they have adequate insight into which capital property investments and building features tenants require from the building and workplace suite
To improve the tenant experience, more landlords are adding fitness centers than are adding staff
19%
The Internet of Things is low on the priority list when it comes to improving tenant experiences, with only 19% of landlords prioritizing it
71%
71% of landlords say flex work is important to their tenant occupancy, retention, and engagement strategies
CONCLUSION
Much of the progress our industry has made this year has been promising, and we believe that is because landlords wisely prioritized keeping current tenants happy and enhancing the tenant experience during the turbulent post-pandemic years. Those efforts are now paying off with longer leases and greater space requirements.
We continue to operate in a tenant-favorable market limited by economic slowdowns and the normalization of hybrid work. However, while overall office demand is still about a third below pre-pandemic levels, most tenants have seen attendance stabilize and should be more confident making long-term leasing commitments.
Landlords can expect greater stability and a growing appetite for prime office space. Those with a portfolio of post-2010 buildings and competitive amenities stand to gain the most: CBRE predicts that demand for prime space will soon outpace new supply, leading to modest rent increases and reduced vacancy risk.
Despite prevailing industry headwinds, landlords still have ample opportunity to improve the way they do business, particularly when it comes to how they use technology and harness data.
A major area of opportunity will be closing the data gap: landlords still lack adequate visibility into investment decisions, tenant risk exposure, and what tenants want and need from a space. Too many landlords spend far too long doing due diligence on pivotal business decisions, only to find the data they depend on is outdated, inaccurate, or unreliable.
Better data also means better marketing decisions: Landlords want more clarity on which channels perform best, who is viewing which property websites and listings, and how to act strategically based on those insights.
With the accelerated technology investments landlords anticipate in 2024, however, we think it’s just a matter of time until more landlords realize the very real potential of these opportunities.
In the past four years, our industry has shown that it can adapt, evolve, and improve in the toughest circumstances. Now, we’ll need to use the same creativity, grit, and determination to make the most of the exciting opportunities ahead.
We can’t wait to see what’s possible.
•
•
•
Positive indicators
2
say space requirements are growing or holding steady
71%
say the length of renewals is increasing or holding steady
Only 41% of landlords say leasing vacant space is a top priority. This year it's all about creating great experiences that entice tenants to stay.
82%
say the length of new leases is increasing or holding steady
79%
Retention, renewal, relationships
3
For the second straight year, landlords report a positive leasing trajectory.
The golden era of technology
4
For the second straight year, landlords report a positive leasing trajectory.
The insight gap
5
Landlords are accelerating technology investments.
Key takeaways from the 2024 Global Landlord Report
2024 Global Landlord Report
For landlords, retention and renewal are still the name of the game. This page of the playbook hasn’t changed since the pandemic, because it works. Retention continues to be a unifying priority for all other strategies in 2024.
We’re seeing landlords continue to focus their attention and investment dollars on keeping current tenants happy. Just like last year, 57% say this is their #1 priority.
Tenant retention and lease renewal eclipse other portfolio strategies. Only 41% of landlords say leasing vacant space is a top focus in 2024, with many doing all they can to make it easier for tenants to stay. For example, over half of landlords have increased rent concessions across Class A, B, and C properties since the pandemic.
Landlords need better data to make smarter decisions.
41%
Only 41% of landlords say leasing vacant space is a top focus in 2024
12%
Only 12% of landlords surveyed are prioritizing ESG initiatives
Retain, renew, repeat
In service to this, landlords are uplevelling property management, improving the tenant experience, and investing in major property improvements.
Whether touchless building technology, outdoor communal areas, or fitness facilities, landlords are finding new ways to delight tenants and give them reasons to stay. They are also investing in technology to create a better tenant experience, and property management software is their top choice.
Upgrading the tenant experience
Finally, while ESG initiatives have captured headlines, only 12% of landlords are prioritizing them in the current high-interest rate environment.
Initiatives like carbon emission trackers and renewable power sources may have to wait until CRE gains a more solid footing in the post-pandemic world. The good news is that there are positive signs of change up ahead.
57%
56%
47%
41%
22%
Retaining and renewing current tenants
Improving property mgmt and tenant experience
Property improvements (CapEx)
Leasing vacant space
Debt management and restructuring
Landlords are more focused on property improvements than portfolio diversification. These are the top tenant experience investments.
Respondents selected multiple options to represent their top 3 priorities.
44%
33%
26%
26%
24%
Property management software
Respondents selected multiple options to represent their top 3 priorities.
Leasing and asset management software
Digital marketing and marketing automation software
Data, analytics, and reporting software
Smart building technology
The top landlord priorities in 2024:
Retain, renew, repeat
Portfolio priorities and capital investments
2024 Global Landlord Report
100% were budget decision-makers
65% were landlords with portfolios over 11m RSF
26% were executive-level leaders
85% had managerial responsibilities
•
•
•
•
•
•
•
•
•
We survived. Now we thrive.
If the first wave of tech adaptation has increased business efficiency, the next wave should be about extracting valuable, as-yet-untapped data insights.
Overwhelmingly, landlords tell us they still lack critical insights into the market and their portfolios. The right tools can transform those ambiguities into opportunities, but CRE still needs to realize the full potential of the technology available today.
44%
33%
26%
26%
24%
Property management software
Leasing and asset management software
Digital marketing and marketing automation software
Data, analytics, and reporting software
Smart building technology
What tech are landlords investing in 2024?
45%
45% of landlords are open to investing in AI during 2024 to make better portfolio decisions
We survived. Now we thrive.
Up, up, up: the future of CRE looks positive, with key indicators trending upward for the second year in a row.
This is a welcome sign of recovery after COVID-19 emptied buildings and left landlords wondering how and if tenants would return.
Our first survey post-COVID, in 2021, revealed that a clear majority of landlords were expecting shorter lease terms for both new leases and renewals, as well as shrinking square footage requirements.
But three years later, that story has changed. Although landlords are still focused on retention over expansion, they overwhelmingly expect a positive trajectory for lease activity in 2024.
Last year's survey showed signs of this upswing, as landlords indicated optimism about lease terms and square footage needs. Now, we’re seeing that trend hold steady into 2024.
Accelerating tech investment
2024 Global Landlord Report
59%
of landlords see it
increasing
20%
of landlords see it remaining about the same
21%
of landlords see it decreasing
55%
of landlords see it
increasing
27%
of landlords see it remaining about the same
18%
of landlords see it decreasing
55%
of landlords see it
increasing
27%
of landlords see it remaining about the same
18%
of landlords see it decreasing
50%
of landlords see it
increasing
21%
of landlords see it remaining about the same
29%
of landlords see it decreasing
A positive trajectory
While landlords have reason to feel good about the future, they could do more to speed it along. Unfortunately, the majority of landlords are still grappling with unwieldy deal cycle times.
One reason may be that it still takes too long to calculate tenant risk exposure – with some landlords saying it requires days, weeks, or even months to determine their exposure.
That’s where the right tech tools can help, cutting the process down to hours or even minutes. And with so much more tech investment on the horizon, we hope to see deal cycle times decrease in the future.
60%
of landlords see it
increasing
28%
of landlords see it remaining about the same
12%
of landlords see it decreasing
55%
23%
13%
09%
Pre-built/move-in ready
White-boxed
Turnkey
Raw/unfinished
Which technologies are landlords investing in this year?
CRE PropTech has flourished in the years after COVID-19. At first, it was a matter of survival; landlords had to innovate whether they were ready or not.
As tech innovations like virtual tours and digital marketing helped them stabilize their businesses in the wake of one of the most disruptive periods in CRE history, they began to imagine what the future might look like. And the possibilities were exciting.
Fast forward four years, and we are now in the golden era of CRE technology. Landlords now use technology to:
A positive trajectory
Digital marketing has transformed CRE, giving landlords direct access to more qualified tenants, enhancing how they serve existing tenants, and accelerating new deals.
And the measures landlords took immediately after COVID-19 seem to be paying off: in 2021, landlords told us that digital marketing would be necessary to lease space post-pandemic, with nearly 60% saying tenants expected a virtual tour before committing to an in-person appointment.
Only 4% of landlords invested in digital marketing software in 2022. Then, as if overnight, the numbers spiked: by last year, over half were doing it.
This year, those who may previously have held out due to budget constraints are joining: 26% of landlords say they are investing in digital marketing for 2024.
The latest leasing insights
2024 Global Landlord Report
A giant leap for digital marketing
Landlords tell us that their most valuable tool now is the ability to recreate the value of an in-person visit. Accurate floor plans and virtual tours are particularly powerful – and more effective than postcards and other direct mail, building stacking plans, or site maps.
The best marketing channels are now digital. Social media ranks as the most effective channel for finding new CRE tenants, which may surprise those who viewed it as better-suited to residential real estate.
Another surprise: digital ads appear to be the worst channel for CRE marketers. In fact, after social media, the top three ways to entice new
tenants are portfolio websites, email, and building websites and microsites.
Finally, landlords prefer short-form social media posts when consuming industry content. Written and video are nearly neck-and-neck in this game, with landlords saying they favor:
Improve operations
Upgrade their marketing game
Make better data-driven decisions
Shave days, weeks, and months off of laborious deal lifecycles
Manage remote and hybrid work demands
Navigate a tenant-centric market
Understand space, utilization, and tenant sentiment in real-time
…and more
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Top channels landlords favor:
Portfolio
webistes
Email
communications
Building websites
and microsites
What works where
Despite their success, landlords could still use more visibility into the magic behind their marketing. Most say they are flying blind when tracking the total number of listing views (anonymous or de-anonymized) or trying to measure their channel performance.
Landlords also have an opportunity to save time updating marketing materials and listings for each building in their portfolio. This clunky process was a challenge last year and still bogs down marketing teams today. They spend at least five hours–often far more–on this laborious task.
33%
Social media
Tenant demand for space conditions:
16%
Portfolio website
13%
Email
11%
Building website/microsite
Content that isn’t high-performing with tenant rep brokers and potential tenants:
Building stacking plans, postcards or other direct mailers, and site maps
45%
44%
37%
37%
Accurate floor plans
Virtual tours
Building and space photography
Accurate space details like condition, terms, and amenities
Tenant demand for space conditions:
Respondents selected multiple options to represent their top 3 priorities.
Accurate space details - condition, terms, & amenities
33%
Building and space videos
The best-performing channels to find new tenants:
59%
Short-form written content: Emails, blog posts, LinkedIn posts, etc.
Respondents selected multiple options to represent their top 3 priorities.
56%
Short-form video content: Instagram Reels/TikTok, interview clips, building tours, etc. (under 30 seconds)
41%
Mixed media: Infographics, interactive web pages, etc.
50%
Only half can track the total number of anonymous views of their listings
The most engaging digital formats, according to landlords:
1 in 3
About one in three can track individual, de-anonymized views of their listings
40%
34% of landlords spend over $50,000 annually to create, maintain, and update their digital web properties across their portfolio
1 in 5
Just one in five can track channel performance
A giant leap for digital marketing
The future of our industry is based on the tenants already under our roofs. In this tenant-centric market, landlords are doubling down on initiatives that will keep current tenants renewing, from rent concessions to amenities upgrades.
But it’s not always easy. A perennial problem we hear about each year is that property managers simply don’t have the time (or budget) to focus on tenant engagement.
This year, landlords tell us that tenants aren’t always willing to engage, either. And in the past, landlords have said they aren’t sure how to communicate with tenants or fully understand what they value.
It’s the question without a clear answer: what do tenants want?
The state of marketing in commercial real estate
2024 Global Landlord Report
Relationships are everything – but they’re not always easy
This year, only a small fraction of landlords say they are highly confident in knowing exactly which capital property investments and building features tenants require.
That has also been the case in past years: landlords consistently tell us they are unsure about this and need more tools and insights into how tenants use their space and amenities in real-time.
However, this hasn’t stopped them from trying to wow tenants. This year, landlords’ top priorities include tenant experience technologies, outdoor areas and property operations.
These investments have all trumped adding staff to improve the tenant experience. Despite the heavy investments we know landlords are making in technology, one buzzy trend still hasn’t caught on: the Internet of Things. Only 19% of landlords have prioritized it.
To engage tenants in the best possible ways, landlords need better visibility into their preferences and space and amenities usage. Technology can provide much-needed clarity in this area, ensuring that landlords’ future investments align with tenants’ real needs.
Top three ways to entice new tenants:
Short-form emails
and blog posts
30-second clips on Instagram or TikTok
Brief interview clips
and building tours
If you build it, will they come?
There is one thing landlords do know for sure: flex work has been essential ever since COVID-19 changed the rules of the game. Today, the majority of landlords see it as an important part of their occupancy, retention, and engagement strategies – a sentiment noted in the past two reports.
The most engaging digital formats, according to landlords:
26%
Property managers don’t have time to focus on tenant engagement
20%
Property managers don’t have enough budget or resources for events and activities
19%
Tenants aren’t willing
to engage
40%
Only 17% of landlords are highly confident they have adequate insight into which capital property investments and building features tenants require from the building and workplace suite
To improve the tenant experience, more landlords are adding fitness centers than are adding staff
33%
31%
30%
27%
Tenant experience technologies
Outdoor communal areas
Property operations
Food and beverage options (complementary and for purchase)
27%
Fitness center
The content formats that perform best with tenant rep brokers and potential tenants:
72%
71% of landlords say flex work is important to their tenant occupancy, retention, and engagement strategies
19%
The Internet of Things is low on the priority list when it comes to improving tenant experiences, with only 19% of landlords prioritizing it
19%
Only 19% of landlords have access to the up-to-date and accurate information they need to make the best investment and leasing decisions
18%
Only 18% of landlords are satisfied with the time it takes to do due diligence for business plans and budgets
17%
Only 17% of landlords are satisfied with the time it takes to do due diligence for investment decisions
17%
Only 17% of landlords have insight into the capital property investments and building features tenants want from building and workplace suites
2024 Global Landlord Report
How can we know what we don’t know?
This brings us to the final piece of the puzzle: the data gap. Surveying hundreds of landlords over the years has shown us that despite massive leaps in technology, landlords still need to realize the full potential of the data and insights available today.
Landlords must tap into them to make better real-time decisions about tenant risk, investment priorities, and their overall portfolio.
The right data at the right moment
Landlords need reliable data to make pivotal business decisions when they matter most – not weeks or months later. But that process still lags for many landlords.
Only a fraction are satisfied with the time it takes them to do due diligence on investment decisions, business plans, and budgets — all concerns brought up in previous years.
Access to quality data also continues to be a challenge for landlords. Previously, landlords have told us they cannot trust the data sources they use to get timely market insights. And this year, only 19% say they can access up-to-date and accurate information to make investment and leasing decisions.
This is a rich avenue of potential for landlords who can leverage technology to get timely, accurate, and trustworthy insights–and we hope to see a positive reversal of these trends in future surveys.
Closing the data gap
2024 Global Landlord Report
Much of the progress our industry has made this year has been promising, and we believe that is because landlords wisely prioritized keeping current tenants happy and enhancing the tenant experience during the turbulent post-pandemic years. Those efforts are now paying off with longer leases and greater space requirements.
We continue to operate in a tenant-favorable market limited by economic slowdowns and the normalization of hybrid work. However, while overall office demand is still about a third below pre-pandemic levels, most tenants have seen attendance stabilize and should be more confident making long-term leasing commitments.
Landlords can expect greater stability and a growing appetite for prime office space. Those with a portfolio of post-2010 buildings and competitive amenities stand to gain the most: CBRE predicts that demand for prime space will soon outpace new supply, leading to modest rent increases and reduced vacancy risk.
Despite prevailing industry headwinds, landlords still have ample opportunity to improve the way they do business, particularly when it comes to how they use technology and harness data.
A major area of opportunity will be closing the data gap: landlords still lack adequate visibility into investment decisions, tenant risk exposure, and what tenants want and need from a space. Too many landlords spend far too long doing due diligence on pivotal business decisions, only to find the data they depend on is outdated, inaccurate, or unreliable.
Better data also means better marketing decisions: Landlords want more clarity on which channels perform best, who is viewing which property websites and listings, and how to act strategically based on those insights.
With the accelerated technology investments landlords anticipate in 2024, however, we think it’s just a matter of time until more landlords realize the very real potential of these opportunities.
In the past four years, our industry has shown that it can adapt, evolve, and improve in the toughest circumstances. Now, we’ll need to use the same creativity, grit, and determination to make the most of the exciting opportunities ahead.
We can’t wait to see what’s possible.
Fostering growth through tenant relationships
Tenant experience technologies
Outdoor
areas
Property
operations
33%
31%
30%
27%
Tenant experience technologies
Outdoor communal areas
Property operations
Food and beverage options (complementary and for purchase)
The top investments landlords are making in 2024 to improve the tenant experience:
27%
Fitness center
Unlock the report now
Unlock the report now
Unlock the report now