Landlords achieve significant benefit from IWMS
Integrated Workplace Management System solutions, typically implemented after an ERP as the next level of technology required to manage the corporate footprint, have generally been considered a tool for tenants. They use IWMS to manage leases, capital projects, operations and facilities maintenance. However, increasingly we are seeing a rising demand in the market from landlords who are seeking to employ technology to actively manage their properties and lower expense cost while increasing revenue.
And, there is an incredible opportunity for landlords. In fact, a recent article in The Globe and Mail shared results from a study by Altus Group which concluded that “one-third of the world’s commercial real estate industry is using archaic and error-prone spreadsheets to manage property portfolios potentially worth $11-trillion.” Similar to the problems faced by tenants, the study showed that “analysis can’t be performed because much of the information exists in “data silos” – meaning data that is gathered by various departments is stored in different formats, making it difficult if not impossible to aggregate.”
Given the issues they are facing and the large capital investment that landlords make in real estate assets, the trend toward landlord adoption of IWMS solutions makes sense. Landlords across the world are challenged to manage information related to facility assessment, performance data, legal and financial information, obligations, etc., and ensure they are making the best use of their assets. Both our experience working with clients and the Altus study indicate that landlords are hamstrung by the considerable manual work required to manage these assets. IWMS has the potential to give them insight into the critical data that helps make smart, informed decisions about their properties.
How are Landlord and Tenants Needs the Same?
Let’s review module by module to better understand how landlords can benefit from the same productivity and efficiency gains enjoyed by tenants who employ an IWMS solution.
- IWMS Lease Module: An IWMS users can manage their owned property contracts and subleases to tenants, similarly to how a tenant manages their payable leases to the landlord and subleases to a third party. Tracking leases in an IWMS system will help landlords understand their future receivables and forecasts, and availability of space. Additionally, the landlord’s sales process leading to a signed lease can be actively managed within the IWMS solution.
- IWMS Capital Projects Module: IWMS users can plan and execute large capital initiatives with efficiency and transparency into the schedule and costs – this applies to landlord’s building a mall or a retailer building a single store. Utilizing an IWMS solution, a landlord has visibility into the full financial picture and the history of the location.
- IWMS Operations and Maintenance Module: Allows IWMS users to track and execute service requests and small projects, a requirement that applies to both landlord and tenant, whether it be for the entire mall or a single store. Because of the integrated system’s inherent capabilities, the dispatching of service requests can be automated based on lease details.
- IWMS Sustainability Modules: This module helps IWMS users track carbon emissions required for reporting and environmental responsibility, as well as being a good corporate citizen. This requirement is the same from a Landlord or Tenant perspective and the functionality helps simplify the collection and reporting of key information.
- Space Management Module: This module can be used by a landlord to determine available space and track changes or sales opportunities. Similarly, a tenant uses it to ensure space efficiency and track chargebacks. For corporate office space this type of functionality can be used to help clients plan their future expansions.