Does Quality count?

For some time Expedio has been on a mission to improve the quality of our buildings. Not just better bui8ldings.  But refurbishing basic warehouses and tin sheds with better quality fit-outs. We have used tiles rather than vinyl. We have retro fitted with LED light fittings. We have used quality bathroom fittings. We have installed data cabling and server racks. We have completely re-roofed when patching would have lasted a few more years.

But is it worth while? The question is not only whether a better fit-out and better quality fittings improves the financial performance of the building, but whether it makes it a better place to work for the tenant and the tenant’s employees.
We have always believed that a better fit-out improves the financial performance of the building. It makes it easier to lease, and will tend to attract a better quality tenant.

But as to the effect on the day-to-day lives and effectiveness of the occupants, our faith in quality buildings has been shaken somewhat recently. In our search for  more buildings to add to the portfolio we have encountered a series of buildings which are grubby, cramped and poorly fitted out. They are poorly laid out and badly, if at all, maintained. Yet they have tenants who are presumably paying their rent.

Would the rent be higher if the building was in better shape? Possibly. But enough to cover upgrading the building? Probably not.
 
So as we go in and out of this parade of sub-standard buildings we wonder who is responsible – the tenant or the landlord. And should we care that people go to work in an environment that is dirty, and is reminiscent of conditions 40 nor 50 years ago?

It’s been one of those periods of reflection and introspection. We’ve had to consider whether our policy of trying to make work environments at least as good as workers would have at home, is the right one. Should we keep spending money on improving tenanted buildings ? Or should we just leave them be?
 
The jury is probably out on this one for a while. But for the present we will maintain our view that a better fitted out and equipped building is a better place to work, and will therefore attract better tenants.

But we certainly welcome input to the discussion.