High-quality service reduces vacancies in commercial spaces

Tenant loyalty is a business-critical issue for real estate companies. Data shows that the service experience plays a decisive role in whether tenants choose to stay with their landlord or move on when their space requirements change.

Service Experience Drives Loyalty and Profitability

There is a clear link* between how commercial tenants perceive the service they receive and their willingness to remain with their current landlord when their needs shift.

Companies that deliver outstanding service also achieve the highest levels of tenant loyalty, meaning tenants would choose to stay with their existing landlord even if their requirements change.

In contrast, companies with the lowest service scores see the opposite trend: their tenants are far more likely to look elsewhere. This creates a tangible business risk, leading to lost revenue and higher vacancy rates for companies that do not prioritize service quality.

The differences are striking. Between the top performer (where 100% of tenants state they would remain) and the lowest (55%), the gap is 45 percentage points. Such low loyalty threatens both net operating income and property values.

Conclusion

A strong service experience is more than just a satisfaction target. It is a strategic tool to secure revenues, reduce vacancies, and build long-term value across the real estate portfolio.

*The analysis is based on data from several leading Swedish real estate companies.