RE38C05: Evolution of the Commercial Product - Advanced

1. THE OFFICE PRODUCT
   1. Results of CEO's Need to Change
      1. Again investment in facilities is measured monetarily
      2. Output per square foot is the measurement method employed for non-industrial space
      3. CEO's analyze annual revenues on a per square foot basis
      4. Corporations may still invest in older buildings to generated higher productivity
      5. It is not always a sound "real estate" business decision
      6. Investigating alternative office strategies that enhance productivity
      7. Telecommuting can increase productivity
      8. Currently no linkage between information technology and real estate
      9. Creating organizational isolation with infrastructure decisions
      10. CEO's want low cost in facilities but speed to deliver space
   2. The New Vision
      1. In the past, real estate was viewed as mere cost
      2. Recently new vision is analyzing real estate as an asset
      3. Specifics
      4. In the past, internal executives worked cross functionally with end-users
      5. Now outside vendors are the team players
      6. Architects, Design and real estate firms, consultants, utility reps and former employees
      7. Getting Facility Executives to Work with Human Resources is Key
      8. Corporate Headquarters is now expected to improve the following:
   3. Impetus Driving the New Vision and Direction of Corporation's Outlook on Real Estate
      1. Restructuring for total quality; aka re-engineering efforts
      2. Companies are redefining their core processes
      3. Rethinking the function and architecture of key facilities
      4. Emphasis is on function and architecture working together
      5. Co-locating operations from concept through engineering to sales
      6. Co-locating will have immediate effect on market share.
   4. Impact on Corporate Headquarters' Design: The New Tech Center
      1. Thrust is to combine headquarters with tech operations
      2. Transforming manufacturing space to tech space or office space.
      3. Using architectural strategies to break huge space into more human scale sizes
   5. How Will This Strategy Design Be Achieved?
      1. Broker should recognize new demands from corporate space users.
      2. Design recommendations can be made
   6. How The Broker Starts The Search
      1. Each company must define and identify goals and objectives
      2. What are the true priorities?
      3. Employer of Choice: Amount of equipment: Security; etc.
      4. Real Estate Strategist has to be Business Strategist
      5. In the past, organization concerns were in 3 areas:
         • People
         • Technology
         • Business Processes
         • And a new Fourth: Facility
   7. Office Employee Productivity
      1. Linked to employee comfort and corporate culture
      2. Leased offices to be quality construction
      3. Access to outdoors
      4. Bringing pets to work is being acceptable
      5. Flex Time
      6. Job sharing/Tasking
      7. Teaming Approach
      8. "Hoteling" Office Space
      9. Providing Child Care Facility
      10. Creating a casual atmosphere has a long-term benefit
   8. Corporate Culture
      1. May choose a more expensive site if commuting travel is shortened.
      2. Site is located near mass transit
      3. Creating offices that physically bring management closer to employees
      4. Consolidating offices
      5. Creating open office plan
      6. Reducing open office plan for sound-masking purposes
      7. May pay 50% more on tenant improvement
   9. The Corporate Space
      1. Push to maximize daylight in warehouses and office areas
      2. Achieved through extensive shaded glazing
      3. Lightshelves
      4. Skylighting
      5. Interior Space
         1. The need for more efficient lamps and fixtures with motion detectors
         2. Daylight lamp controls
         3. Result: 60% less energy consumption
      6. HVAC
         1. Using passive and active cooling systems
         2. Using fans at night and day to increase circulation
         3. Using radiant heat system which is a major energy and cost saver
         4. Radiant heat can save reduction in energy use over conventional systems
         5. Combination insulated walls and ceilings downsizes HVAC system usage
         6. Average payback
         7. New Development of centralized and direct digital control
         8. More energy management features and level of control required in the future
         9. New advent of system interoperability
   10. Workplace Problems
       1. Office Productivity Environment
          1. Need to enhance working environment
          2. Quantity of output is less important than quality
          3. Can look at absenteeism, medical cost and turnover rates
          4. White collar work physical productivity is impossible to measure
          5. How do you measure brainpower loss?
          6. Productivity is crucial in global marketplace.
       2. Building's Role With Productivity
          1. Has a number of areas directly or indirectly impact work performance
             1. Ergonomics
             2. Indoor Air Quality
             3. Lighting
             4. Acoustics
       3. Ergonomics and Space Planning
          1. Definition of "Ergonomics"
          2. Goal: To reduce work related injuries and problems
          3. Analysis of chair heights, glare screens and telephone headsets
       4. IAQ And Comfort
          1. Symptoms:
             1. Tired or Strained Eyes
             2. Excessive Fatigue
             3. Headaches
             4. Sore Eyes
             5. Dry Eyes
          2. Issues:
             1. Lower Productivity
             2. Sick days
             3. Low morale
             4. Unavailable Facility
             5. Relations Between Occupants
             6. Complaint Response Measures
             7. Responding to Worker Compensation Claims
       5. Lighting
          1. Lighting impacts sales, wakefulness and performance
          2. Computer glare causes a worker to take more on data entry than video display terminals.
          3. Making adjustments is necessary
          4. Lighting controls and dimming ballasts improve working conditions/saves energy
          5. Increase electrical efficiency
       6. Wiring and Cabling
          1. Must be able to accommodate constant moves and changes in organizations
          2. Production will be reduced
       7. Furniture
          1. Not unusual for a company to move 3-5 times a year
          2. Teams in companies are moved and assembled for problem-solving
          3. Mergers and acquisitions cause moving
          4. Downsizing
          5. System examines how workers spend time
          6. Common Area movement; copy room, supply room, restrooms
          7. May be productive to move files and printer to workplace
          8. Bringing conference rooms to a workstation format
          9. Eliminates walking around the building
          10. Furniture selection depends on work being conducted
          11. Furniture colors, arrangement and variety impact psychology
       8. Personal Control
          1. Ultimate Response to Worker Productivity is direct control of working environment
          2. Having flexible lighting systems in workstations
       9. Acoustics
          1. Conversational distraction and uncontrolled noise are primary causes of productivity loss in offices
          2. Remedies
             Bottom Line: The broker has to understand the user's new facility demands to increase productivity and how it is defined.
       10. Technology
           1. Customers are purchasing "on-line"
           2. Computerized racking systems
           3. Climate control
           4. Energy saving technology in facilities
       11. What is tomorrow's commercial user targeting for facility requirements?
           1. Automation of facility
           2. Automation increases employee productivity
           3. Using smartcards for access control systems
           4. Smartcards store info on memory chips
       12. Generation X
           1. Influencing warehouse and office needs
           2. Buying Trends Differ than in the Past
           3. Fashion Impact at Work
           4. Desire to Save Rather than Spend