Occupier Satisfaction Index launched

15 June 2007

Inaugural 2007 Occupier Satisfaction Index launched

The inaugural 2007 Occupier Satisfaction Index (OSI), the first phase of a three-year research project to measure
occupier satisfaction across the UK office, industrial and retail sectors, indicates that although services provided by the UK
commercial property industry are getting better there is still room for improvement.

Among the top concerns of occupiers identified by the Index are
...Lease inflexibility in terms of both length and the ability to break
...Poor communication within the industry
...Poor understanding of their needs and a sense of not being valued as customers
...Lack of responsiveness to their needs
...Poor progress in taking forward environmental initiatives
...Poor value for money in terms both of the rent and service charge.

Commissioned by the Property Industry Alliance (RICS, the British Property Federation, the British Council for Offices and
the Investment Property Forum) in conjunction with CoreNet Global UK, and carried out by IPD Occupiers and Kingsley Lipsey Morgan, the research reveals that the overall UK Occupier Satisfaction Index for 2007 is 55 out of a possible 100. In the office sector it is 59, for the industrial sector 55 and 52 for the retail sector.

The Index investigates levels of satisfaction on issues that really matter to occupiers - from building quality and value for
money, to lease flexibility and style of conducting business. Key issues that emerge are dissatisfaction with lease flexibility
in terms of lease length and breaks, and sustainability with many wanting property owners to share the cost of meeting new environmental standards.

The report says occupiers feel frustrated by the lack of responsiveness from both property owners and their advisors. They
want landlords, in particular, to demonstrate a greater understanding of their needs and have more direct contact. Commenting on the 2007 results, John Story, Head of Property for Unilever UK and also Head of the pan industry Steering Group, said: "There are still many challenges to overcome. The property industry needs to focus on improving its relationships with occupiers and start raising the bar with regards to sustainability. By continuing to measure satisfaction over the next two years, we hope to be able to report that occupiers are experiencing a significant improvement in these areas."
Copies of the Index are online at www.occupier-satisfaction.co.uk