Introduction

Dexus owns and manages a diverse portfolio including office, industrial and retail properties around Australia, comprising more than 5,000 customers.

Customers and Community

Our customers vary in size from small businesses to major corporate and government organisations including:

  • Listed and privately held companies in the fields of banking, property management, insurance, legal, transport and logistics, retailing, telecommunications and mining
  • State and federal government agencies that require minimum building performance standards
  • Small to medium enterprises including accountants and consultants
  • Major department stores and supermarkets
  • Media and entertainment cinema operators
  • Small independent retailers, cafes and restaurants

In addition to providing services for our customers, Dexus interacts with the broader community across our portfolio in the communities in which we operate.

Dexus’s most material customer-related issues are: 

  • Market volatility: Market volatility risks affecting retail, office and industrial leasing including balancing supply and demand and absorption of new spaces, which may affect leasing terms, rents and vacancy rates
  • Customer attraction, satisfaction and retention: Engagement with customers and the quality of service they receive may impact Dexus’s ability to attract and retain customers, and influence the terms of their lease agreements

The boundary for these issues encompasses all Dexus customers within the Dexus group portfolio, with impacts felt across their businesses and their employees.

Our most material community-related issues are: 

  • Health and safety: Dexus has a duty of care to ensure our properties are safe and have healthy working and recreational environments
  • Community investment: Dexus is a major stakeholder in the communities in which we operate, investing in the community via corporate giving, community collaborations, community partnerships, local employment opportunities, and delivering in infrastructure for the benefit of communities

The boundary for these issues encompasses charity and not-for-profit partners, and communities surrounding properties within the Dexus group portfolio with impacts felt across Dexus and the local communities in which we operate.

Management objectives and goals

Dexus addresses customer-related material issues through the following objectives: 

  • Track market volatility and underlying drivers through ongoing research and market analysis
  • Adopt a forward leasing strategy designed to manage volatility and deliver stable investor returns
  • Secure pre-commitment agreements from new customers and rent guarantees from developers in managing risk for new developments
  • Maintain service excellence to attract and retain high quality customers through volatile periods
  • Deliver the best customer experience in Australian real estate
  • Provide safe and productive working and recreational environments
  • Maximise building operational efficiency to reduce resource usage and waste, while maximising customer safety, comfort and amenity

Dexus addresses community-related material issues through the following objectives: 

  • Enhance community engagement through employee volunteering which assists charities supporting children and young families
  • Support charities and community organisations through facilitating events in its office foyers and within retail centres
  • Provide safe, productive work and recreation environments, with high standards of occupational, health and safety, security and indoor environment quality

Management approach

Dexus takes a customer focused approach to attract and retain high quality customers for the long term. This enables Dexus to maintain stable returns through the property cycle.

Dexus applies the following structure and approach towards customers and the community:

Management framework

1.     Sustainability Approach

Dexus's Sustainability Approach incorporates the UNPRI ‘six principles’ relating to responsible investment and active property management, and is aligned with our corporate strategy through its overarching goal “to create Sustained Value by adopting an approach that embraces connectivity, liveability and resilience, and is integrated across our value chain.”

This framework incorporates five objectives which describe the stakeholders for whom we implement sustainability initiatives, while the three themes are a frame of reference for initiatives and programs.

CRS approach

Key themes:

  • Connectivity - using technology to enable connectivity between people and places and smart operations of Dexus's business and buildings
  • Liveability - creating vibrant, inspiring and flexible work places which enhance productivity and foster the well-being of employees and customers
  • Resilience - increasing resilience so that buildings and spaces are adaptive and customers and Dexus can prosper long term

 

 

 

Together, the three key themes and five key objectives, form the basis from which sustainability commitments and targets are formed, and how achievement is measured.

Customers and community are central to our Sustainability Approach, represented within our Leading Cities, Future Enabled Customers and Strong Communities key objectives.

These objectives are delivered through five implementation approaches:

  1. Customers - partnering with customers to meet their needs and deliver exceptional customer service
  2. Community – creating a hub for building occupants and visitors through events, concierge services and sustainability initiatives facilitated by community managers and retail onsite centre management teams
  3. Products and services - providing a range of value added services at its properties to support comfort and productivity
  4. Customer insights – connecting with customers to collect and respond to their feedback, as well as provide them with relevant information and services
  5. Intelligent buildings – operating safe, efficient, connected, high-performing assets. For example, efficient lighting, security and accessibility

Implementing our management approach

2.     Workspace Dexus

Workspace Dexus is our commitment to a better customer experience and to create sustainable communities where businesses choose to stay, and new customers want to be a part of.

Because we understand and anticipate our customers' needs, we have created a suite of products and services that make being in a Dexus building a great place to be.

Our products add value to our customers’ businesses beyond what other properties can offer by making their workspace more connected, easier and convenient, supported by products and services designed to make their workspace smarter.

Through Workspace Dexus, we provide a coordinated, integrated customer experience, enhancing the customer experience to maintain high levels of customer satisfaction. We aim to exceed customer expectations and create brand loyalty that underpins superior asset and portfolio performance.

The integrated offering that is Workspace Dexus includes:

  • Five star service: Providing customers with a hotel-style concierge, onsite building management, 24/7 building security and 24/7 customer response centre
  • Dexus Place: Purpose built, state-of-the art meeting, training, conference and research facilities designed to be an extension of our customers’ workspace and provide a more cost-effective way to connect
  • Intelligent buildings: operating safe, efficient, connected, high-performing assets. For example, efficient lighting, security and accessibility
  • Customer service solutions including:
    • Parking solutions: Flexible car park options, onsite GoGet vehicles and car parking booking facilities
    • Health and wellbeing: access to value adding facilities and services: Including end-of-trip facilities, ATMs, bike servicing and maintenance, and fitness activities 
    • Childspace: Priority access to childcare spaces
    • Customer community: online portals offering value added services, community spaces, customer engagement and building events and special offers from retail partners
  • Fit-outs: Supporting new customers to fit out their work place via customer fit out guides and access to preferred suppliers
  • Platforms and data: Digital signage in lifts, foyers and common areas providing news, weather, way-finding, and portals
  • PLATFORM by Dexus: Providing value adding services to deliver a positive experience for customers through health and well-being campaigns, and increased convenience and social networking activities
  • Comfortable, sustainable buildings: Active management of building services including lighting, air conditioning, lifts and car parks to minimise resource use to deliver high performing buildings that create a more comfortable environment while reducing direct costs to customers

Occupant health, safety and wellbeing

Dexus implements a safety management system that is certified against OHSAS 18001 to address work health, safety and liability (WHS&L) property risks.

Customer involvement is critical for ensuring a safe and productive workplace environment. We engage with customers to identify, assess and mitigate workplace hazards/impacts, review risk processes, introduce or change monitoring procedures and propose changes to premises, work systems, plant or substances used.

Dexus actively promotes occupant wellbeing by delivering healthy, productive working lifestyles and environments to employees, customers and communities. Dexus embraces the principles within the WELL Building Standard - the first evidence-based system for measuring, certifying and monitoring building features that impact health and wellbeing. WELL acts as a foundation of our wellbeing through the implementation of strategies and policies that promote healthy lifestyles for our people.

Dexus actively manages building performance with regard to accessibility and vibrancy, indoor environment (internal temperature, humidity and air quality), acoustics, access to natural light etc. to create comfortable indoor working environments while maximising health and productivity.

Through our customer online portals, Dexus interacts with building occupants to assess their needs (e.g. online polls) and offer health and wellbeing services including end of trip facilities, health and fitness classes, and an online health and wellness library.

Leasing approach

Dexus takes an active approach to leasing to drive portfolio performance and reduce our forward lease expiry profile. We take a portfolio view on forward leasing, providing flexibility to accommodate customers’ needs within our group portfolio. This approach assists in customer retention and minimises downtime between leases. 

Dexus has played a leading role in developing the Better Building Partnership’s (BBP’s) green leasing standard and Gold Lease badge, which defines a best practice approach for building owners and occupants to collaborate on sustainability initiatives, encourages information sharing and cooperation and removes barriers to implementing mutually agreed improvements over time.

The green leasing standard is a world-first, aimed at helping building owners and occupants benchmark their agreements against others and save on power and water bills. Dexus’s lease is GOLD rated under the BBP leasing standard, which is the highest level available. This enables an active partnership between us and our customers and seeks to deliver better environmental outcomes and reduce outgoings.

3.     Investing in local communities

Dexus’s community investment program aligns with the group’s Sustainability Approach ‘Strong Communities’ key objective. We actively support local communities through:

  • Community engagement: Corporate giving including donations, sponsorships, event partnerships, in-kind support and volunteering
  • Connecting with local communities: Connecting with customers and communities across Dexus retail centres, collaborating with local councils, chambers of commerce and industry groups on community issues
  • Community hubs: Creating community hubs for work and recreation at Dexus’s sub-regional shopping centres and across the city retail precincts which are connected to CBD office properties
  • Community safety: Interacting with local authorities and the community to proactively maintain safe precincts. Retail centre management works with at-risk youth through local youth groups and schools on steps to build safer communities
  • Community investment: Consulting with the community on new developments and refurbishments to address community concerns, and for new developments incorporating features that benefit customers and the community
  • Creating vibrant working environments: Connecting with customers at a property level to make their office and industrial buildings and the communities they serve vibrant and safe
  • Community that supports women: Supporting women in the property industry through hosting events within the property community to raise awareness of gender equality and unconscious bias to urge action

4.     Meeting customers’ sustainability needs through active property management

We actively manage the environmental performance of our properties and target continuous improvement to reduce energy and water consumption and carbon emissions, and provide optimal working environments. This assists customers to meet their own sustainability objectives and priorities by providing workplaces that are designed and operate to the highest sustainability standards. Customers directly benefit via reduced costs from resource consumption efficiencies and productivity improvements from healthier working environments.

Dexus selectively rates new developments against the Green Building Council of Australia’s (GBCA) Green Star Design and As Built ratings and continues to present Green Star opportunities to all pre-lease construction opportunities.

Operational performance is benchmarked using NABERS and Green Star Performance sustainability ratings schemes. Specialist systems support the identification and rectification of issues in buildings’ mechanical systems to ensure that optimum building performance is maintained.

Refurbishments consider energy efficiency and environmental impacts of products and services. We engage with customers on sustainability upgrades in buildings and how to best achieve efficiencies in their tenancies. Dexus provides fit out guides that consider the use of sustainable products and whole life costings.

Stakeholder engagement

Dexus engages with stakeholders to evaluate the effectiveness of our facilities management services and identify areas of improvement.

Key stakeholder  Engagement approach
Customers - service excellence

Several engagement mechanisms are employed to provide regular and open customer feedback including:

  • On-site concierge interacts with customers daily, servicing their requests and gathering customer feedback
  • Feedback is obtained on service requests via our 24/7 customer service response service
  • Customer portals create building-centric digital communities where customers can find out the latest news, events and special offers available
  • We survey a range of our customers each year to gain valued feedback of customer priorities and key issues, and the overall customer satisfaction score is reported in the Annual Report
Customers - relationship management and health and safety

In addition, Dexus also interacts with customers through forums including:

Risk management activities including building evacuation procedure awareness and drills

  • Customer and centre newsletters
  • Customer sustainability forums
  • Customer portals and property micro-websites
  • 24/7 customer service response service
  • Direct contact with Dexus facilities management to maintain effective workplace health and safety including:
    • Regular meetings with customer representatives
    • Quarterly Work, Health, Safety and the Environment (WHS&E) meetings with base-building contractors
    • Direct access to nominated WHS&E Coordinators/Risk Managers
    • Issues or hazard reporting

Regular Risk Alerts notifications are communicated via the Dexus Response Centre

 Cities

Dexus engaged with local councils and chambers of commerce

Dexus takes an active role in contributing to the Australian cities in which we operate. We engage with local councils and chambers of commerce to achieve the best outcomes for our customers and the wider community, to enhance the permeability and vibrancy of precincts through activation of retail areas, office lobbies and laneways, and connect people with places

Charities and not-for-profit organisations We engage with and support not-for-profit charities through in-kind volunteering and monetary donations; promoting them through our building portals and donating space within our lobbies for fundraising activities
Industry associations Dexus is a member and key contributor to various industry associations including the Property Council of Australia, Green Building Council of Australia and the Sydney-based Better Buildings Partnership. Through these associations Dexus collaborates with peers and policy makers on industry reform and environmental and social sustainability topics
Suppliers Dexus engages with like-minded suppliers on sustainability issues and practices. Dexus works with preferred building services providers and equipment vendors to select best-of-breed products to maximise environmental performance while meeting performance expectations

Evaluation and process improvement

Material issue Objective KPI measure
Customer attraction, satisfaction and retention Deliver exceptional customer service
  • Customer satisfaction rating with the property manager (1 to 10 scale)
  • Net Promoter Score
Building performance
  • NABERS Energy and water portfolio ratings, which are measured on a scale of 0 to 6 stars, as defined within the National Australian Built Environment Ratings Scheme (NABERS)
  • Green Star Performance ratings administered by the Green Building Council of Australia (GBCA)
Portfolio customer retention rate
  • Proportion of customers retained within the Dexus portfolio
Customer engagement on sustainability
  • Take up of Green Lease clauses within leases
Market volatility Active forward leasing
  • Weighted average lease expiry
Minimise building vacancy
  • Vacancy rate: vacant area as a proportion of lettable area

Our Corporate Responsibility, Inclusion & Diversity Committee (CRID) monitors and manages Dexus’s community engagement programs. CRID reports directly to our People and Remuneration Committee and comprises business-wide representatives.

The Committee annually reviews the community engagement strategy and maintains regular contact with charity partners and implementing the community approach across the business. The committee also sets and tracks performance against annual targets, collating the value and benefit to the community of our corporate responsibility program.

Dexus uses the following key performance indicators to measure the benefit of our community engagement program.

Material issue Objective KPI measure
Community engagement Corporate giving Financial value of cash donations to charitable organisations
Donation of Dexus space to charitable organisations Financial value of space provided for use charitable organisations
Encourage employee volunteering Total community volunteering hours and percentage participation of all Dexus employees

5.     Process improvement: customers and community

We take the following approach to drive process improvements:

  • Set annual commitments for the upcoming year based on our material issues and Sustainability Approach priorities, which in turn drive improvements in processes
  • Work collaboratively with industry associations, peers and specialist consultants to understand market trends and identify performance improvement opportunities
  • Continuously review incidents and identify changes in processes to prevent incidents from recurring
  • Promote ongoing innovation to enhance customer experience