The Impact of Property Management Services on Tenants’ Satisfaction with Industrial Buildings

In the current competitive marketplace of real estate business, tenant satisfaction measurement is one of the important indicators to monitor competitiveness in industrial property development. It has become an industry standard to measure tenant satisfaction, commonly called customer satisfaction. Customer satisfaction has become the widely used metric to manage customer loyalty (Keiningham, Gupta, Aksoy, & Buoye, 2014). The aim of this research is to determine the impact of property management services on tenants’ satisfaction with the three identified variables i.e. facility management, perceived quality and lease management. Structural equation modeling (SEM) is applied to build constructs and test the hypotheses with the collected survey samples. Of the three variables, facility management is the most influential factor that leads to tenant satisfaction with industrial buildings. Next, perceived quality is another important factor that contributes to tenants’ pleasure. Compared with these two, lease management fares worse, having the least extensive effect on tenant satisfaction, and could be disregarded. The ultimate impact of tenant satisfaction is about tenant retention and recommendation. The overall findings of this research will potentially help real estate developers to develop a better property management system, leasing program and tenant retention strategy.