Key aspects to assessing operational efficiency - Part 2

1. Customer experience

Apart from location, area, and budget, buyers and tenants also prioritise and emphasise added services and the experiences properties provide. Customer satisfaction is directly proportional to building operational efficiency. When customers have good experiences with a project, they will trust, respect and support developers and management team in daily operations.

Some solutions to improve customer experience:

• Design efficient places: From the construction phase, developers must pay attention to the design of building circulation, parking, and functional rooms (management room, central control room, security room, garbage room, warehouse room, and technical room), balancing and optimising elements between building functions, operations, and user experience.
• Multi-channel communications: Maintaining interaction with customers through offline and online channels strengthens the connection between parties, ensures continuity, and resolves issues in a timely fashion. Proptech solutions like Property Cube help tenants contact their management teams, make payments, and book facilities in a few clicks.
• Community engagement: More and more developers are focusing on organising diverse events to meet the changing needs of customers and create a distinct competitive advantage for their projects. Periodic events and activities create opportunities for tenants to meet and interact, contributing to building a strong tenant community.

Read more: The Impact of Fostering a Cohesive Community on Building Operations

2. Sustainable operations

Increasingly, buyers, tenants and users of commercial and residential property want real estate with green credentials. These properties support the environment as well as human health. Developers must have appropriate investment or project upgrade strategies to adapt to customer demand for green property, which will help them to retain long-term tenants.

Green operations are essential to the functioning of green real estate. Savills helps developers to implement green solutions, analyse energy efficiency, and asses the cost-effectiveness of management.

When considering sustainable operating solutions, developers can take a multifaceted approach:

Green building – Optimise energy and resource efficiency

Green buildings are generally more energy efficient and emit less than conventional buildings, and green buildings have the potential to save 25% to 30% of electricity and water costs when put into operation. Therefore, developers need to pay special attention to green building elements to have a basis for evaluating and improving building operating efficiency.

Read more:

• Energy-Saving Solutions for Buildings – Part 1
• Energy-Saving Solutions for Buildings – Part 2

Green space – Develop landscapes and green living spaces

Maintaining, renovating, and optimising green space is important in daily operations

Green environment – Improve air and water quality

Developers should consider investing in modern technical systems, including ventilation systems, fresh air supply systems, pumping systems, water pipes, air conditioning systems, and low-e glass to reduce radiation.

Green culture – Build sustainable lifestyles within our communities

Educating occupiers is essential to green operations. Operational efficiency will also be improved if individuals and organisations within the community understand how to operate within a green society.

Read more: Savills Plastic Detox 2023 and the Meaningful Journey of Shaping Green Places

3. Budget allocation plan

Building an operating budget is essential to stable and sustainable operations. To evaluate operational efficiency, developers can consider a budget allocation plan based on the following criteria: accuracy, optimisation, service quality, and benefit for customers.

Planning revenue and expenses is key to customer satisfaction and operational efficiency. 

List of revenue streams

Based on the characteristics and actual situation of each project, developers will have separate revenue streams, usually, this list will include:

• Management fees
• Parking fees
• Advertising space
• ATMs or vending machines
• Telecommunications profit sharing

List of costs and expenses

• Operating personnel: This includes salaries for the in-house property management teams such as receptionists, managers, engineers, and customer services teams.
• Outsourced services: Fees for electricity, water, security services (hiring security guards, security management), cleaning, landscaping, insect control, inspection and maintenance systems, and insurance fees according to regulations.
• Management team expenditure: Management teams require office equipment and materials to do their jobs efficiently. This includes office equipment like stationery, paper, ink, photocopiers, internet, hotline.
• Consumables and maintenance: This includes water, electricity, technical repairs, wastewater treatment, and chemicals for cleaning and pool maintenance.  

Read more: How to Calculate and Build Property Management Budgets

CONCLUSION

For a commercial project to operate stably and effectively in the long term, many factors must be considered. To evaluate and control operational efficiency, developers and management must understand the unique characteristics of a project, which allows them to make maintenance decisions and adjust operating plans to ensure optimal costs and human resources. They must also stay up to date with trends in property management.

Savills is one of the leading providers of consultancy and property management services in Viet Nam with a team of experts and a set of operating procedures that meet international standards, adjusted to suit the needs of customers and specific characteristics and operating regulations in Viet Nam. With diverse consulting packages throughout the project lifecycle, we help developers attract potential customers, optimise investment costs, save resources and operating costs, and enhance the reputation and long-term competitiveness of the developer. Learn about our Property Management Consultancy services.