Effective Workspaces. Understanding how your space and location decisions can improve your organization s impact, staff morale and your bottom line

Transcription

1 Effective Workspaces Understanding how your space and location decisions can improve your organization s impact, staff morale and your bottom line

2 Today s Agenda Objective 1: Objective 2: Objective 3: Important Considerations in Making Your Real Estate Decision How to Achieve the Greatest Cost Savings for Your Organization Achieving Flexibility & Efficiencies to Achieve Long Term Goals Lance Jaccard, AIA, IIDA, LEED AP Managing Partner OTJ ARCHITECTS jaccard@otj.com Michael Jacoby Chief Executive Officer BROAD STREET REALTY mjacoby@broadstreetllc.net

3 Important Considerations in Making Your Real Estate Decision Has your organization considered Does your office space reflect your desired Brand and Culture? Does your space support your Mission? Is your space conducive to Collaboration or Collegiality? Do you prefer an Open Environment vs. a Closed? Does your space inhibit Productivity?

4 Important Considerations in Making Your Real Estate Decision Has your organization considered Have you considered your space as a Recruiting or Retention Tool? Have you considered Buying vs. Leasing your space? Do you consider your space a Profit Center? Do you ever feel Trapped by Lease Terms?

5 Buy Versus Lease Buy: Potential significant tax savings Co-location with other related non-profits, and associated tax savings Control over how space is used over time Control over operating costs Long term equity generation in major growth markets like DC

6 Case Studies Partners in Education Building 133,000 square feet Washington, DC American Association of State Colleges and Universities (AASCU) American Association of Colleges for Teacher Education (AACTE) Council for the Advancement and Support of Education (CASE) National Association of State Universities and Land Grant Colleges (NASULCG) Represented four (4) unrelated nonprofit education associations in the acquisition of their new headquarters building Coordinated a joint venture ownership agreement between the associations Results included IRB financing and real estate tax exemptions Secured two (2) education associations as tenants in the building

7 Case Studies Greater Washington Board of Trade 25,000 square feet Washington, DC Subleased 25,000 square feet of Office Space at 1725 I Street NW while allowing them to maintain conference center Within 90 Days achieved Board of Trade s Goal resulting in approximately $1,000,000 savings in Lease related expenses Achieved the Board s goal with targeted marketing campaign which yielded exceptional results in a short period of time Identified Off Market Subtenant by implementing aggressive strategic marketing campaign Secured the Board of Trade temporary space helping to limit any potential negative effects on staff and programs

8 Buy Versus Lease Lease: Achieve desired flexibility to grow and contract as needed No requirement for up front capital to purchase No property management or landlord leasing role Option to relocate to different submarket as relevant to organizational mission

9 Desired Brand & Culture Closed versus open office environments Architectural branding Signage interior and exterior Geographic location and address closed office environment open office environment architectural branding

10 OTJ: Design Solutions To Achieve Cost Savings, Flexibility & Efficiencies

11 Key Features of Open, Collaborative Workspaces Increased productivity Increased quality of work life for employees Potential for greater attraction and retention of top notch talent Reflection of culture

12 Key Features of Open, Collaborative Workspaces Architectural Trends & Forecasts Better efficiency & ergonomics Conference & teaming areas Flexible & multi-spaces that accommodate a variety of functions Outsourcing of paper storage & publications fulfillment High performance management strategies Phone rooms Hoteling/touchdown stations

13 Key Features of Open, Collaborative Workspaces

14 Key Features of Open, Collaborative Workspaces

15 Key Features of Open, Collaborative Workspaces Open Office Planning for Better Efficiency & Ergonomics Focused cost control & communication Push for efficiency in order to reduce overhead and control operational costs Critical nature of reducing SF per staff member to maximize efficiency

16 Key Features of Open, Collaborative Workspaces ANA - 4th Floor Space Plan 8515 Georgia Avenue, Silver Spring, MD ANA - 5th Floor Space Plan 8515 Georgia Avenue, Silver Spring, MD American Nurses Association relocated to Silver Spring, MD with the intent of taking more space to accommodate growth while maintaining a low staff number per square footage. ANA occupies 65,000 RSF to accommodate 250 staff, or 260 SF per staff member 80% of the staff occupies offices or workstations no larger than 80 SF Director positions occupy offices of no more than 120 SF

17 Key Features of Open, Collaborative Workspaces Collaboration & Teaming Environments Provide areas for constant communications/brainstorming Outfitted with technology based on telecommuting policies

18 Key Features of Open, Collaborative Workspaces Solutions that Provide Efficiency & Flexibility Incorporation of sound absorbing materials & acoustical ceilings due to more open/collaborative spaces

19 Key Features of Open, Collaborative Workspaces Flexible & Multi-Use Space Accommodate a Variety of Functions Larger conference rooms are needed for functions that range from formal board meetings, to panel discussions, to informal all-staff meetings & luncheons Design components include movable partitions, flexible furniture, & mobile boards Conference facilities may be shared with other organizations at a cost

20 Key Features of Open, Collaborative Workspaces Henry L. Stimson Center Main Conference Room th Street, NW, Washington, DC Henry L. Stimson Center 12th Floor Space Plan th Street, NW, Washington, DC -- Larger conference rooms are needed for functions that range from formal board meetings, to panel discussions, to informal all-staff meetings & luncheons -- Design components include moveable partitions, lightweight furniture, & mobile boards -- Conference facilities may be shared with other organizations at a cost

21 Key Features of Open, Collaborative Workspaces Outsourcing of Paper Storage & Publications Fulfillment Outsourcing filing & fulfillment due to higher rental rates for office space

22 Key Features of Open, Collaborative Workspaces Alternative Workplace Strategies & Technologies Mobile pedestals feature storage for mobile employees Docking stations/benching systems/touchdown stations are used for mobile employees to log in to the network at the office Internet based VIP phone systems allow phone extensions to follow staff at any desk or home Web cloud applications allow the same conditions & data access flexibility

23 Key Features of Open, Collaborative Workspaces

24 Positive Impacts that Effective Workspace Design Provides Analyze the Overall Working Environment Multiple Styles of Working Wellness/Fitness Programs Job Sharing Hoteling Flexplace Telecommute

25 Broad Street: Market Solutions to Achieve Cost Savings, Flexibility & Efficiencies

26 Non-Profit Unique Requirements Funding Issues: Uncertain budgets; current and projected cash flows Tax and Regulatory: Regulatory and compliance issues to which you may be subject Decision Making: Consensus-based decision processes; real estate task forces, executive committees, and boards of directors Use Requirements: Zoning and public transportation; appropriate space for the community it serves

27 Non- Profit

28 Broad Street Tenant Process

29 Timeline

30 Key Strategy Decisions Size Term Rate Location Flexibility

31 Negotiating the Best Possible Market Terms Factors Leverage in the marketplace (e.g. time, multiple options, etc.) Credit worthiness of tenant Size of tenant Length of term Concession package (e.g. rent abatement, tenant improvement dollars, etc.) Flexibility (e.g. termination option, expansion/contraction rights, etc.)

32 Size & Use of Space Size What is your right size? How do you communicate your mission and culture through use of space?

33 Building Availability Matrix

34 Test Fit Analysis

35 Concessions Free Rent Tenant Improvement Allowance Moving Allowance Flexibility

36 Cost Savings Opportunities Blend & Extend Creative Rent Structures

37 Savings Analysis

38 Things to be aware of Critical Dates Unexpected Costs Owner and Management Company (Do your due diligence!)

39 Questions

40 Contact Information: Lance Jaccard, AIA, IIDA, LEED AP Managing Partner OTJ ARCHITECTS Michael Jacoby Chief Executive Officer BROAD STREET REALTY