Tenants and Customers
TENANT/CUSTOMER ATTRACTION AND RETENTION
FY14 PERFORMANCE AGAINST COMMITMENTS
= Achieved , = Not achieved, , = Underway
Launch initiatives to enhance the tenant experience
Launched tenant/customer initiatives to enhance the tenant experience through:
Implement initiatives that develop tenant loyalty
Implemented a Customer Records Management system which is utilised to strengthen tenant relationships and developed customer loyalty through initiatives undertaken throughout the tenant lifecycle
Increase total portfolio retention rate from 70% to 75%
Total Dexus office and industrial portfolio retention rate reduced to 51%, below the 75% target, primarily due to intended vacancies in the industrial portfolio and a competitive office market, where in many instances, it was more viable to replace tenants than to renew and retain
Dexus OCCUPANCY AND RETENTION
- Excludes CPA properties.
TENANT SATISFACTION & ENGAGEMENT
- Range between 1 and 10.
Commentary and methodology
Dexus amended the tenant satisfaction survey methodology in FY13 to better identify opportunities in which it can improve tenant satisfaction. FY14 results can only be compared to FY13 results on a like-for-like basis.
The following enhancements were made to the tenant satisfaction survey in FY13:
- Survey questions were refined in order to facilitate the collection of more relevant information
- Scoring methodology and weighting was changed to utilise a combined portfolio average in order to derive a weighted performance score
- A performance scale ranging from 1 to 10 for the overall results was adopted
The FY14 tenant satisfaction survey was conducted online with approximately 1,300 customers invited to respond. The overall satisfaction score improved from 7.5 to 7.7 across 230 respondents and 35% of respondents were classed as highly satisfied (rating a 9 or 10), up from 27% in 2013.
Commentary and methodology
Dexus has incorporated a standard green lease clause into new leases across the portfolio and monitors the take-up of this clause by tenants across each portfolio.
The total portfolio take-up of new leases containing green lease clauses for FY14 was 87%, representing an 8% increase against FY13, with notable increases across the office and industrial portfolios. The retail portfolio has maintained its high rate of take-up of green leases by tenants, remaining steady at 93%.
Dexus works closely with tenants and other stakeholders to improve tenants' sustainability performance and awareness.
In FY14 this activity included:
- Collaboration with City Switch, a national tenant energy efficiency program, both as a signatory and a landlord to drive tenant activity in sustainability and energy efficiency
- Promotion of Dexus's green building committees and other programs, including:
- involvement in the 2013 Earth Hour campaign - NABERS Energy and NABERS Water ratings - general building sustainability performance and updates
Read more on the Group's Tenant/Customer charter and its Corporate Responsibility and Sustainability approach. More information on the Group's Tenant/Customer engagement is available in the 2014 Annual Review.