In this office, there are no cubicles, no lavish corner suites for executives and very few filing cabinets.

Employees hustle about, plugging in laptops and hooking into phone lines at any desk that’s convenient. A giant video screen overlooks a cafe where employees can conduct business in an informal setting, grab a bite or maybe catch an inning or two of the San Francisco Giants game.

This could be the headquarters of Google, Facebook or maybe Apple. But it’s not. It’s the 24th floor of 500 Capitol Mall, where the Sacramento office of commercial real estate services firm CBRE is test-driving an emerging concept in workplace design. Can a modern, perk-laden, almost-paper-free office be better for business? Los Angeles-based CBRE Group Inc., which has more than 40,000 employees and 300 offices worldwide, thinks so.

The transformation of its Sacramento office is part of a global CBRE initiative, known as “Workplace360”. It was implemented last year in Los Angeles and earlier this month in Orlando, Fla. The Sacramento office makeover is the fifth CBRE transition in the United States; more than two dozen CBRE offices worldwide are converting to the model in 2014. It’s intended to save space, promote collaboration, offer more flexibility, trim costs and even help attract the next generation of younger employees.

It’s also part of a trend in workplace design, commonly referred to as “untethered” or “free address” office space. With the advent of mobile technology, some companies are abandoning traditional office cubicles, in favor of shared or communal workspace. In a 2008 survey of 950 companies, about 60 percent said they had some kind of “unassigned workspace,” according to the International Facility Management Association, a trade group of facility managers.

For the local CBRE office, the recent move represents a major shift, physically and philosophically. In its first Sacramento office relocation in more than 40 years, the company only moved across the street but entered into a completely new way of operating. At its former offices, at 555 Capitol Mall, CBRE was spread out over three floors, with most employees working in traditional cubicles. High stacks of paper and rows of filing cabinets were the norm.

At its new address, all operations are on one floor, encompassing about 17,500 square feet. Mountains of paper have been all but banished. Each employee was allowed to bring one filing cabinet to the new office, which meant purging, scanning and recycling old files. With no assigned desks, CBRE’s Sacramento employees – about 100 in all – can plug in anywhere. Each has a company-issued laptop with Wi-Fi access to printers and digital files, as well as a virtual private network that lets them securely connect to their office documents from anywhere in the world. According to the company, ahead of the move, employees purged 500,000 paper documents, many of which are now accessed digitally by “key word” searches from their laptops.

Each desk is fully equipped with pens, highlighters, notepads, even a bottle of hand sanitizer. When employees leave at night, every desktop is “100 percent clear,” except for a phone, computer mouse, blue-tooth headsets and dual computer monitors. That “clean desk” policy applies to everyone, from top executives to junior staffers. David Brennan, senior managing director of CBRE Sacramento, said the everything-on-one-floor concept alone “was huge for us. It encourages a more collaborative environment.” Additionally, the firm’s new offices serve as a “real-world example” for corporate clients, who often seek advice on incorporating new workplace technologies, he noted.

“Workplace360” was launched after CBRE officials did extensive research on office designs that would foster mobility and flexibility, but also consolidate workspace to encourage more teamwork, as well as reduce square footage requirements. CBRE officials believe there’s a payoff in collaboration among the company’s many commercial real estate divisions, which range from financing and property management to a unit that specializes in auto dealership transactions.

Research showed that its brokers and staff typically spent about 50 percent of their time working with others and the other half working alone. Employees are encouraged to work in “neighborhoods” of colleagues doing similar tasks. There are seven “huddle rooms,” where small teams can meet for conferencing and video presentations. There are also single-person “focus rooms” when privacy is a must.

It can be an adjustment for longtime employees used to sitting at the same desk every day, perhaps surrounded by personal photos and mementos. “There was some anxiety at first,” said Chris Schempp, who oversaw hundreds of details as director of CBRE’s in-house project team during the 15-month planning and moving process. “But as things started coming together, you could tell that more (employees) were buying into the concept.”

Each employee has a personal, locked filing cabinet, which some use to keep family photos that they prop up on whatever desk they’re using that day. There also are banks of lockers for storing laptops, briefcases or other personal items and a coatroom where suits and ties can be stashed for client meetings.

Amy DeAngelis, the CBRE Sacramento senior vice president who brokered the deal for the 24th floor space and the 11-year lease in the office building owned by Tsakopoulos Investments, said care was taken to make sure CBRE workers could utilize space efficiently, “which affects the bottom line financially.” The elimination of nearly 1,320 square feet of filing cabinet space alone will yield an estimated $453,000 savings in storage costs, during the lease term.

The new office design also takes into account employee health and wellness. Desktops, which have an antimicrobial coating to prevent retention of germs, can be height adjusted at the touch of a button. Stand-up work stations give employees the option of taking a break from their self-adjusting ergonomic chairs. Strategically placed treadmill “walk stations” enable employees to burn off nervous energy without bothering others. Subtle white noise fills the office, muffling what could otherwise be an annoying cacophony of dozens of brokers talking to clients on phones. The building also has a fitness gym and bike-to-work lockers and showers.

Perhaps the most eye-popping perk is the cafe area’s video screen that can, with Google Earth technology, zoom in on virtually any spot on the globe. Brennan said the ability to scope out every angle of a commercial real estate site – remotely – saves enormous amounts of time and money. “Think of all it would take to make a trip to, say, Chico, and do all that work on the ground,” he said. “Here, we can get a detailed look at any property and its surroundings in minutes.”

CBRE is pursuing “green building” certification for its 24th-floor office, under the Leadership in Energy and Environmental Design rating system, which requires meeting stringent environmental standards in construction and operation, including reduced water use and renewable energy sources.

The “Workplace360” model also is designed to attract the next generation of employees – particularly young, tech-savvy workers who are likely to be drawn to offices similar to those of high-powered, Bay Area tech companies. “If you have the resources to remake your office setting, it’s a good way to go,” said Peter Schaub, a New York-based marketing and branding expert. “Talented millennials who have the skills to be in demand aren’t necessarily thinking like their parents. Pay and benefits still count of course, but they put high emphasis on the look and feel of a workplace. “It could make the difference between landing talent, or not,” said Schaub. “If you have a recruit say, ‘Wow, I get to work in a place that looks this cool,’ you’ve probably got them hooked.”

The company doesn’t divulge what it spent on all of its new office technologies, but considers it a long-term investment. “It was not so much a cost-saving initiative but an investment in our employees and the workplace of the future,” said CBRE consultant Matt Fritsch. Now, when he visits the company’s traditional offices in Roseville and Stockton, those office environments seem so “foreign,” he said. “For employees who enjoy a clutter-free environment, this is a beautiful place to be.”

 

Source: The Sacramento Bee

Approximately 10,000 baby boomers turn 65 every day.

That staggering fact is not lost on the world of commercial real estate, and many in the property management field in particular are working to deal with the waves of coming retirements.

And, as the younger generation of property managers take over, many experts say they will continue to carry the flag of sustainability and push property management to be even greener than it is now. “It’s not that the new generation will save our bacon,” says Marc Intermaggio, executive vice president of BOMA San Francisco, noting that property management has come a long way in sustainability goals. “But there is a broader level of consensus among the younger folks simply because these environmental issues have been elevated more for them, than during the 1950s and 1960s.”

BOMA San Francisco has been partnering with San Francisco State University’s College of Business to develop curriculum that allows students to get a certificate in commercial real estate by taking four specially designed classes. The first four students graduated from that program this winter. “We’re trying to take this to the rest of the California state university system,” says Intermaggio. “This is going to help students be more job-ready, to have even more training, to have a greater familiarity with the issues.”

Industry analyst CEL & Associates Inc. estimates that there could be an annual shortage of 15,000 to 25,000 qualified real estate professionals—in all fields— nationwide, says Christopher Lee, president of the group. Property managers are a profession that is also constantly in demand, Lee says. In a boom, more managers are needed to meet demand of new construction; in a downturn, managers are still needed to keep existing buildings going—and to ensure they operate at peak efficiency to save crucial capital.

Lee says it is difficult to predict when real estate professionals will be leaving because many are staying on longer due to the recession. Property management is also a field that allows people to work into their later years, unlike more physically taxing jobs, he says. “Many people are holding back on retirement because of economic uncertainty,” says Lee. “But once they leave, they will leave at a quick pace and my concern is that there is a lack of people in the pipeline to take their place.”

Individual companies are also working to ensure that the younger generation is ready to take the reins—and that they will continue to maintain sustainability programs. CBRE Group Inc. has put 15,000 employees through BOMA’s Energy Efficiency Program. It has 500 LEED AP (Accredited Professionals) employees in all fields. Cushman Wakefield has 71 LEED AP professionals and 100 LEED GA (Green Associate)-certified employees, mostly in property management. Over the next two years, the company plans to train 80 managers through the Urban Green Council’s GPRO courses.

 

 

Source: National Real Estate Investor

Advances in building and information technologies have brought a new “big data” analytics-based approach to facilities management—one that ushers in a new era of operational control, reliability and productivity for businesses and workers. Smart buildings can increase employee comfort, engagement and productivity, according to Jones Lang LaSalle’s latest report, The Changing Face of Smart Buildings: The Op-Ex Advantage.

Technological advances have finally converged with long-existing and significant opportunities for improving energy efficiency and the user experience within buildings. We are seeing tenant satisfaction improve while building operating costs are reduced, especially when tenants are actively engaged with controlling energy usage.

The Big Data generated by smart building systems is a major force shaping the human experience within buildings. Building data analytics provides unprecedented insight into energy use and facilities operations.

Today’s computer-controlled “smart” building systems can be programmed to accommodate the needs of building occupants. Lighting and temperature, for instance, can automatically adjust during peak and off-peak occupancy periods. Smart building technologies can be used to provide a more customized and energy-efficient experience for building users—think, better temperature, lighting or security control for offices, and more reliable power for manufacturing facilities.

In addition, these automated systems generate reams of data that a smart building management service can transmit to a remote data center for analysis by facilities professionals. Using predictive analytics, facilities managers can anticipate and address user needs and requests related to heating, ventilation, lighting, way-finding, security and more.

Affordable new technologies driving smart building progress

Recent significant price reductions in cloud computing-based building management technologies have made these systems affordable. For example, wireless sensors used in smart building managed services are now available for less than $10 per unit. These sensors can transmit data from smart systems in hundreds of buildings to far-flung remote cloud-computing platforms where advanced analytics can turn data into actionable intelligence to improve building performance.

Building occupants’ growing expectations

Smart buildings can boost tenant satisfaction and productivity, according to The Changing Face of Smart Buildings. Along with next-generation buildings comes a new generation of building occupants, with new workplace preferences and expectations for their work facilities. Companies increasingly rely on mobile workers, and smart buildings are able to adapt more readily to new flexible workplace models. Clean, green, efficient buildings are gaining a marketing advantage for landlords.

The trend for employees to connect from anywhere, or to bring their own devices to custom-fitted work settings, will profoundly change the way building owners lease space. Demand for more network sophistication that can adapt to changing work patterns will play to the advantage of smart building owners.

Smart buildings also can help companies use sustainability as a hook for engaging employees. In a major Empire State Building energy retrofit, for example, the project team added smart building components to the landmark office property. Real-time energy displays enable Empire State Building tenants to better monitor and control their energy consumption, and even compete with other tenants in the building to achieve energy savings.

Looking ahead is Fraunhofer CSE’s Building Technology Showcase in Boston that houses Fraunhofer’s building science research facilities, designed to consume half the energy of a comparable structure. In the lobby, an iPad-driven display shows the building’s internal smart building technology at work, with digital read-outs showing real-time energy gains in lighting, cooling and heating, water use and energy generation. It’s a simple but powerful idea that potentially could be applied in every smart building lobby.

Jones Lang LaSalle’s report, The Changing Face of Smart Buildings: The Op-Ex Advantage, provides a comprehensive, state-of-the-market view on smart buildings, providing the first multi-dimensional business case for smart technology investment. The full report can be downloaded here: http://bit.ly/HvhSx6

 

 

Source: NREI

biggest office deals of 2016

Homeowners that want coverage from Citizens Property Insurance could end up with a much more expensive policy from unregulated out-of-state insurers under a new bill passed in the Senate Friday.

The Senate voted 22-16 for the bill that could result in homeowners seeking coverage from Citizens to be shifted to a private surplus line insurance company that aren’t subjected to state regulations.

Several senators, includings some Republicans, objected to the bill. “We have insurance regulation in the state of Florida for a good reason,” said Sen. Jeff Clemens of Lake Worth. “It’s to make sure consumers in Florida aren’t being taken advantage of.”

Since the tea party wave of 2010, the Republican majority in the legislature has chipped away at the policies covered by Citizens. The state-backed insurer was set up to be the insurer of last resort, but grew as private insurers tried to limit their exposure in the state.

Last year legislators approved creating a clearinghouse that requires insurance agents to look at offers from private insurers before allowing someone to purchase a Citizens policy. A customer is ineligible for Citizens if one of the insurers charges premiums that are within 15 percent of Citizens rates.

The Senate bill (SB 1672) would add surplus line insurers to those insurers that could be offered through the clearinghouse starting in January.

Sen. David Simmons, R-Altamonte Springs, defended the bill and said it would give homeowners another choice for coverage. He said homeowners would be told ahead of time that the surplus line insurers are not regulated the same way as other insurers.

Simmons added that homeowners would also be allowed to move back to Citizens after receiving coverage from the surplus line insurer. He also noted some Floridians already insure their homes with these type of insurers.

“We have gone overboard to protect the consumer so the consumer can make an intelligent decision,” Simmons said.

Florida’s former insurance consumer advocate, however, blasted the proposal.

“These surplus lines insurers are a last resort given the lack of regulatory oversight,” said Sean Shaw, founder of Policyholders of Florida and who is running for the Florida Legislature. “These companies would be able to jack up rates on Floridians without state regulation — putting seniors and families at risk. We stopped this from happening before and it needs to be stopped again.”

Source:  NBC Miami