These tenants 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 operatorsSmall retailers, cafes and restaurants
In addition to providing services for its tenants, Dexus interacts with the broader community across its portfolio in the communities it operates in.
Tenant-related material issues
The most material tenant-related issues for Dexus 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
- Tenant attraction, satisfaction and retention: Engagement with tenants and the quality of service they receive may impact Dexus's ability to attract and retain tenants, and influence the terms of their lease agreements
Customers and community-related material issues
The most material customer and community-related issues for Dexus are:
- Health and safety: Dexus has a duty of care to ensure its properties are safe and have healthy working and recreational environments
- Community investment: Dexus is a major stakeholder in the communities where it operates, investing in the community via corporate giving, community collaborations and investing in infrastructure for the benefit of communities
Management objectives and goals
Dexus addresses tenant-related materiality 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 tenants and rent guarantees from developers in managing risk within its development pipeline
- Maintain service excellence to attract and retain high quality tenants through volatile periods
- Deliver the best customer experience in Australian real estate
- Provide safe and productive working and recreational environments
- Maximise the operational efficiency of its buildings to reduce resource usage and waste, while maximising tenant 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
- 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
Dexus takes a customer focused approach to attract and retain high quality tenants for the long term. This enables Dexus to maintain stable returns through the property cycle.
Dexus's approach to managing tenants and customers and community engagement is delivered through the Asset Solutions function.
The Asset Solutions delivery framework is based on five key areas:
- Partnerships with tenants to meet their needs - offering incoming support with fit outs and move planning
- Platform and data services - connecting with tenants to collect and respond to their feedback, as well as provide them with relevant information and services. Examples include the tenant survey, digital signage and tenant portals, such as the Dexus Response Centre
- Community - creating a hub for property occupants and visitors through events, concierge services and sustainability initiatives facilitated by community managers
- Products and services - providing a range of value added services at its properties to support comfort and productivity. Examples include child care, end of trip facilities, retail spaces and art work in communal spaces
- Intelligent buildings - operating safe, efficient, connected, high-performing assets. For example, efficient lighting, security and accessibility
Dexus's Tenant and Customer approach
Work health and safety
Dexus recognises its duty of care to investors, tenants, employees, agents and the community to manage work health, safety and liability (WHS&L) risks in its property portfolio. Dexus implements a safety management system that is certified against OHSAS 18001 to address WHS&L risks across the portfolio. It acknowledges human rights and seeks to provide safe environments for all tenants and other persons entering Dexus buildings.
Tenant involvement is critical for ensuring a safe and productive workplace environment. Dexus consults with tenants 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.
Contractor management procedures outline the safety and risk protocols for contractors. Dexus utilises a contractor management database across all managed properties to monitor contractor WHS&L management systems and manage compliance of contractors regarding insurance, safe work methods and inductions. All contractors must undertake a site specific induction and are provided specific instructions to follow. A centralised system tracks and validates site contractors' permits and certificates.
An Incident and Claims Management framework is used to capture all incidents, investigate and evaluate exposures, and take remedial action as quickly as possible where incidents occur.
Property Risk Management
Dexus implements a robust property risk management program to appropriately manage hazards and risks relating to personal health and safety, building safety, environmental, security and insurance risk. Dexus maintains a comprehensive audit program across its properties to assess building risks, and compliance with standards, regulations and certifications.
Dexus operates an environmental management system (EMS) that is certified to ISO 14001. The EMS encompasses the management of environmental substances, hazardous chemicals and material storage, liquid waste, contaminated soil, ozone depleting substances, workplace safety and mobility. Tenants are informed about how to manage these environmental impacts and where the responsibility lies. Often, building management is responsible for managing these areas and facilities.
Tenant and customer experience
Dexus seeks to provide a coordinated, integrated customer experience. Dexus's customer experience strategy and customer service charter are focussed on enhancing the tenant experience to maintain high levels of tenant satisfaction. The strategy aims to exceed customer expectations and create brand loyalty that underpins superior asset and portfolio performance.
Dexus's framework for delivering service excellence involves day-to-day delivery of asset services including:
- Customer service: Providing tenants with a building welcome pack and access to concierge services to inform and provide daily assistance regarding building services and amenities
- Fit-outs: Supporting new tenants to fit out their work place via tenant fit out guides and access to preferred suppliers
- Platforms and data: On-line tenant portals and digital signage in lifts, foyers and common areas providing news, weather, way-finding, etc.
- Access to value adding facilities and services: Including community spaces, retail, end-of-trip facilities, premium foyer areas, ATMs, parking, access to childcare, car sharing and public transport
- Dexus Response Centre: Efficient service delivery supported by market leading IT systems and processes, including a highly accessible quick response mechanism to tenant maintenance issues
- PLATFORM by Dexus: Providing value adding services to deliver a positive experience for tenants/customers through health and well-being campaigns, and increased convenience and social networking activities
- Comfortable, efficient buildings: Active management of building services including lighting, air conditioning, lifts and car parks to minimise resource use, in order to deliver high performing buildings that create a more comfortable environment while reducing direct costs to tenants
- Green leases: Tenant leases incorporating green lease clauses whereby tenants endorse and agree acknowledge their role in supporting Dexus to improve building energy efficiency
Dexus takes an active approach to leasing to drive portfolio performance and reduce its forward lease expiry profile. The Group takes a portfolio view on forward leasing, providing flexibility to accommodate tenants' needs within in the portfolio. This approach assists in tenant retention and minimises downtime between leases.
Meeting tenants' sustainability needs
Dexus takes a continuous improvement approach to the environmental performance of its buildings to reduce energy and water consumption and carbon emissions, and provide optimal working environments. This assists tenants to meet their own sustainability objectives and priorities by providing properties that are designed to the highest sustainability standards. Tenants directly benefit via reduced costs through resource consumption efficiencies and productivity improvements from healthier working environments.
Environmental performance monitoring is benchmarked using NABERS and other sustainability ratings schemes. Specialist systems support the identification and rectification of issues in buildings' mechanical systems to ensure that optimum building performance is maintained.
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.
Refurbishments consider energy efficiency and environmental impacts of products and services. Tenants are kept informed of sustainability upgrades in buildings and how to best achieve efficiencies in their tenancies and Dexus makes available fit out guides that consider the use of sustainable products and whole life costings.
CommunitiesDexus's community investment program aligns with the Group's Corporate Responsibility & Sustainability (CR&S) approach and broader business goals. Dexus actively supports the communities that it operates in through:
- Community engagement: Corporate giving including donations, sponsorships, 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 in its city retail precincts which are connected to its 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
Evaluation and process improvement
Monitoring performance: Tenants and customers
Dexus engages with stakeholders in order to evaluate the effectiveness of its facilities management services and identify areas of improvement. A number of engagement mechanisms are employed to provide regular and open customer feedback including day to day engagement, regular tenant meetings and social events, and a 24/7 tenant service response service. Dexus conducts an annual tenant survey which provides a detailed understanding of tenant priorities and key issues, and the overall tenant satisfaction score is reported in the Annual Review.
In addition, Dexus also interacts with tenants and customers through forums including:
- Risk management activities including building evacuation procedure awareness and drills
- Tenant and centre newsletters
- Tenant sustainability forums
- Tenant portals and property micro-websites
Specific consultant feedback on workplace health and safety occurs through:
- Tenant representative meetings
- Direct contact with Dexus facilities management
- 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 communicated via the Dexus Response Centre
Dexus uses the following key performance indicators to measure the performance of its customer service approach. Annual targets for tenant satisfaction and retention drive leasing and engagement strategies.
Dexus Tenant and Customer Key Performance Indicators (KPI)s
|Material issue||Objective||KPI measure|
|Customer attraction, satisfaction and retention||Deliver exceptional customer service||Rate of overall Tenant Satisfaction of surveyed tenants on a scale from 0 (poor) to 10 (best practice)|
|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)|
|Portfolio customer retention rate||Proportion of customers retained within the Dexus portfolio|
|Tenant 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|
Monitoring performance: Community
Dexus's Corporate Responsibility, Inclusion & Diversity Committee (CRID) monitors and manages Dexus's community engagement programs. CRID reports directly to Dexus's People and Remuneration Committee and comprises business-wide representatives.The Committee annually reviews the community engagement strategy. It is responsible for maintaining 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 its corporate responsibility program.
Dexus uses the following key performance indicators to measure the benefit of its community engagement program.
Community Key Performance Indicators (KPI)s
|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|
Process improvement: Tenants and customers, community
Dexus takes the following approach to drive process improvements:
- Sets annual commitments for the upcoming year based on its material issues and CR&S framework priorities, which in turn drive improvements in processes
- Works collaboratively with industry associations, peers and specialist consultants to understand market trends and identify performance improvement opportunities
- Continuously reviews incidents and identifies changes in processes to prevent incidents from recurring
- Promotes ongoing innovation to enhance customer experience