“Train people well enough so they can leave, treat them well enough so they don’t want to."
Last week’s issue about the benefits of tenant concentration (you read that right, not “diversification”) struck a chord. Readers wanted more insight into these “high-quality” tenants that can drive meaningfully higher portfolio returns. The research supporting that article offers ways to screen for high-quality tenants, but we’ve got another ace this week - one that answers the question: How can you quickly identify tenants that will be a boon for your investments?
Three researchers recently examined office and industrial tenants that pay high rents - the very ones you want in your building - and found a ‘tell’: Had the tenant advertised open positions in the prior 12 months? If yes, it signals both tenant financial health and an ability to pay higher rent.1
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