With profit margins increasingly under pressure, operational costs on the rise, and tenants expecting more from their property, the challenge of maintaining and modernizing properties has never been more complex.
Gil Enkerlin, Investment Director at a family office with commercial real estate investments, understands these challenges well. In a recent interview, Gil shared how his team has managed to modernize their properties without the heavy upfront costs typically associated with such upgrades.
"As Investment Director, I am continuously seeking ways to optimize our investments across a diverse range of industries. We manage our buildings in a very hands-on way, and I personally handle much of the property management. Our primary focus is tenant satisfaction.
Maintaining excellent tenant satisfaction involves keeping our buildings up to code and going above and beyond by upgrading our properties. This includes making ventilation systems more efficient, upgrading to LED lighting, and making overall improvements to ensure energy efficiency.
We are committed to providing our customers with a great building environment, ensuring our tenants are satisfied and happy."
One of the key upgrades Gil implemented was introducing Defigo, a digital video intercom system, into their portfolio of properties with the goal of modernizing and optimizing the experience of their tenants.
"Defigo is one of the best solutions we found that integrates seamlessly into our existing Salto infrastructure. This integration made the transition straightforward.
“Introducing Defigo simplified access administration significantly.”
Another reason we chose Defigo is because it modernizes the appearance of our buildings. Even for a building from 1933, Defigo at the entrance elevates its look, making it more attractive to tenants. The intuitive call button system with a large, user-friendly screen enhances tenant interactions with the building. It also helps us manage access efficiently, allowing tenants to easily activate and onboard their own employees or personnel.
This delegation of access management gives tenants more control over their space while I maintain a comprehensive overview of access. Defigo provides our tenants' customers with a seamless experience. With the app and keyfob, the risk of forgetting keys is eliminated. "
Low capital investment for an enhanced tenant experience
In the competitive world of commercial property management, these types of enhancements are not just about meeting current tenant demands but about future-proofing investments. However, the financial constraints often associated with significant building upgrades can be a deterrent for property managers. This is where Defigo’s new leasing option comes into play.
Introduced earlier this year, Defigo's new leasing option is designed to help property managers modernize their buildings without the need for large capital investments up front. This model offers a flexible, financially viable solution for upgrading properties while keeping tenants happy and rents stable.
“The biggest motivation for leasing is avoiding the upfront investment. In real estate, margins are tight.
“Eliminating this upfront cost is appealing…as it prevents significant rent increases due to major investments when signing a new tenant or renewing the contract of an existing tenant.”
For commercial property managers, leasing will beat a major capital investment and will simplify financial decisions. Why pay upfront when you can spread the cost over time? Consider the impact of a substantial rent increase due to a major investment. Leasing allows you to distribute payments over several years, making it a smarter financial choice.”
Leasing not only eases the financial burden but also aligns with the strategic goals of property managers who aim to enhance tenant satisfaction without compromising their bottom line. By spreading the cost of upgrades over time, property managers can offer modern, efficient, and attractive spaces that meet the evolving demands of tenants, all while maintaining a healthy financial outlook for their properties.
For details on Defigo’s leasing option, visit getdefigo.com/no/leasing. Leasing is currently only available in Norway.
