In mid-2014, CBRE tapped Sam Delisi and Austin Fairborn to lead the firm’s Premier Services program. Shortly after, the firm took on a building management and leasing assignment in which taking rents were in the mid-$20s/SF net. After bringing the building to LEED-EB Platinum and creating a “culture of quality,” the first lease they signed was at $32/SF.

The firm's now negotiating a lease that'll bring the building to 97% occupied, a jump from 92% in less than a year. A 5% gain at those increased rental rates creates approximately $20M in added value, says Sam, an executive managing director who leads the group charged with 90M SF of high-end US office and specialty retail properties. The secret to value-add success, he notes, is moving from the ethos of “We’re your landlord, not your friend,” to “We’re here to serve you.” That mean giving tenants exactly what they want and creating an environment that will leave them with memorable experiences. His building management teams focus on four “experience components”: escapist, aesthetics, education/community and entertainment. Adding these to a property creates a building community that helps tenants retain and attract great employees, he says.

The group conducted a study on its most premier portfolio from 2007 to 2013. “We learned that if you install premier services into a building, it increases overall tenant satisfaction, increases intent to renew (generally creating the most value for the owner) and increases overall satisfaction with the leasing process,” Sam says. “That leads to higher occupancy, and where there’s availability, the buildings lease faster.” It also creates a sense of goodwill for the property. And sustainability is key to operating a truly premier property. A CBRE longitudinal study "shows that customers perceive sustainable properties as healthier places for their employees and truly important to attracting Millennials.”

Above is CBRE’s Premier Services operating manual for the property management staff; the team is also taking cues from the hotel industry, bringing in outside consultants to train property managers on quality hospitality services. “World-class hoteliers know all about customizing services for each individual,” Sam explains. “For instance, if we know a tenant wants their car washed every Friday, we’ll do everything it requires to never disappoint the client.”

It’s also important to think through each tenant experience from beginning to end. For instance, instead of just providing a bike rack for employees who ride into work, CBRE is installing bike spas in buildings—perks include a visiting fix-it shop, bike lockers and dry cleaning services for sweaty cycling clothes. The overall key, Sam says, is to increase the level of service by decreasing customer sacrifice—when you provide top-quality experiences, you’ll naturally generate rental and renewal rates above the pro forma, thus creating value for the building.