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Top-to-bottom property management is key in attracting and retaining tenants

Strong property management is becoming an increasingly  important factor in determining the success or failure of a development as tenants continue to demand better services.

'We can no longer just provide a package of services and say 'here it is' to the user. We have to think: 'What are the needs of the customers?'' said Eric Lee, head of management services at Jones Lang LaSalle.

Landlords realise  the benefits of strong property management in creating a loyal base of tenants and generating interest in their developments.

One of Hong Kong's largest combined commercial and residential developments is Swire Properties' Island East. The development - which includes Taikoo Place and Cityplaza - offers six million square feet of office space, which is about  half of Swire's entire investment portfolio.

While quality construction  and attractive pricing were important for Island East's appeal, 'management was also key',  said Swire Properties director Stephan  Spurr.

All 11 office blocks at Island East are connected by a 22-kilometre fibre optic network that can support large broadband networks. Swire also provides technical in-house expertise to ensure that companies such as banks can operate data centres  that require strong backup support.

'For the big banks, it is obviously mission critical for having their systems up. You have got to rely on your property manager to make sure everything is working and there is backup supply,' said Colliers International   managing director  Piers Brunner. 'For some people, it's just a must. They can't let their systems go down - or their business goes down.'

Carrying out  maintenance throughout the Island East development is also important in  attracting and retaining tenants. But Swire has gone further by even contributing to the cost of repainting a few buildings it does not own near Taikoo Place.

'You have a large canvas and you can't afford to not complete the frame,' explained Mr Spurr, who declined to disclose how much Swire had spent in the past year on renovating and maintaining the development.

Providing a range of restaurants for office staff to eat lunch broadens the appeal for tenants.

When considering changing the mix of restaurants in Cityplaza, Swire often sends out questionnaires to tenants to get their responses to proposed changes.

Swire also organises live outdoor music on Friday evenings in Taikoo Place to add to its appeal as a place to unwind after work. However, the firm is  disappointed it has not succeeded in obtaining government approval   to introduce alfresco dining in  Taikoo Place.

'If we could just get government co-operation on alfresco dining, I think we'd all be happy. But I'm afraid we have met a wall of bureaucracy there,' Mr Spurr said.

Island East is already a huge development, but it may  grow further in the coming years, depending on market sentiment. 'We will continue to build in the area. There's still undeveloped land bank available,' he said.

About 400,000 square feet can be built on top of one of the  Swire towers, and another new office tower of  about 610,000 square feet may  be built at Cityplaza. Meanwhile,  a planned development in Taikoo Shing on Westlands Road would add another 1.55 million square feet.

Property managers are getting  involved in projects at  an early stage to help ensure that a building provides the services that tenants  want.

Jones Lang LaSalle, which manages One Peking Road in Tsim Sha Tsui, was able to comment on the building's design plans before its completion.

'We sat together with the project team to review the initial design plan to lay out the material use, the kind of facilities to be  provided to the tenant,' said Mr Lee.

Security is another area on which property management has focused in the past few years following the September 11 terrorist attacks in the United States.

'When 9-11 happened, obviously security became a big issue with a lot of American multinational companies,' Mr Brunner said.

'They want to know that the property management company running their building is quick to react to security issues.'



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