HOW CRE STRATEGIES PROMOTE WORKPLACE INNOVATION / UNDERSTANDING TENANT PRIORITIES. October 2, 2013

Transcription

1 HOW CRE STRATEGIES PROMOTE WORKPLACE INNOVATION / UNDERSTANDING TENANT PRIORITIES October 2, 2013

2 PANEL Judith Amoils Managing Director, Consulting Services, CBRE Limited Global Corporate Services Andrea Wolf-Strike Senior Strategist, Canadian Lead, Consulting Practise, Gensler Architecture/Design Inc. Mandy Sutherland Applied Research Consultant, Steelcase Canada Moderator Michael Rende Director, Leasing, Corporate Real Estate Royal Bank Financial Group

3 CRE AS DRIVER OF WORKPLACE INNOVATION CRE Impact on the Workplace CRE as Integrator CRE and the C-Suite A commitment to continuous improvement

4 MANDY SUTHERLAND, APPLIED RESEARCH CONSULTANT Steelcase Canada October 2, 2013

5 Trends- Workspring STEELCASE RESEARCH Mandy Sutherland - Applied Research and Consulting

6 Trends- Workspring TRENDS Evolution of Four-generation Workforce Prominence of Social Networks Erosion of Worker Loyalty Shortage of Skilled Labor Increased Diversity Resistance to Change Culture (national & company) Wellness People Process Growth of Mobile Always-on Work Emphasis on Life-long Learning Development of the Lean Office Importance of Dyadic Work Rise of Creative Work Complex Problems Drive Teaming Persistence of Paper Growth of Visualization Tools Evolution of Mobile Technology Tools Importance of the Virtual Environment Evolution of Location Aware Technologies Growth of Team Support Software Technology Space Cost Containment/Efficiency Emphasis on On-site Services Proliferation of Third-place Work Development of Intelligent Space Demand for Sustainable Architecture Development of Experiential Workplace

7 Trends- Workspring EMERGING WORKPLACE STRATEGIES Q: Why does your company support working in alternative locations away from the office such as a coffee shop or library? CoreNet Global research 2011

8 Trends- Workspring EMERGING WORKPLACE STRATEGIES Q: What are you using the space saved by AWS implementation for? CoreNet Global research 2011

9 Trends- Workspring EMERGING WORKPLACE STRATEGIES Q: What attracts these AWS employees to the office? CoreNet Global research 2011

10 Trends- Workspring A DAY IN THE LIFE OF A MOBILE WORKER

11 Trends- Workspring RETHINKING THE WORKPLACE CHALLENGE Leverage the complexities of competing in an interconnected world. UNDERSTAND PEOPLE NEED: TECHNOLOGY PEOPLE SPACES THAT BRING TECHNOLOGY AND PEOPLE TOGETHER

12 Trends- Workspring RETHINKING THE WORKPLACE CHALLENGE Leverage the complexities of competing in an interconnected world. UNDERSTAND PEOPLE NEED: TECHNOLOGY PEOPLE SPACES THAT BRING TECHNOLOGY AND PEOPLE TOGETHER OFFER CHOICE AND CONTROL over where and how people work.

13 Trends- Workspring RETHINKING THE WORKPLACE CHALLENGE Leverage the complexities of competing in an interconnected world. UNDERSTAND PEOPLE NEED: TECHNOLOGY PEOPLE SPACES THAT BRING TECHNOLOGY AND PEOPLE TOGETHER OFFER CHOICE AND CONTROL over where and how people work. CREATE PALETTE OF PLACE PALETTE OF POSTURE PALETTE OF PRESENCE

14 JUDITH AMOILS, MANAGING DIRECTOR, CONSULTING SERVICES CBRE LIMITED October 2, 2013

15 PERSPECTIVES TWO VIEWS Corporate Real Estate Organization Role How they evolve Building Owners, Managers and their Service Providers Tenant attraction and retention, market fundamentals Engagement with CRE Procurement

16 CORPORATE REAL ESTATE PERSPECTIVE EVOLUTION OF THE CRE ORGANIZATION Innovate Value to Enterprise Centralize Optimize Integrate Stabilize Decentralized/ Ad Hoc Scope of Integration Source: CoreNet Global, CoRE 2010, Integrated Resource and Infrastructure Solutions

17 PERSPECTIVES CORPORATE REAL ESTATE ORGANIZATIONS Three types of CRE entities in the market As a landlord or owner, what changes when you engage?

18 CASE STUDY EXAMPLE ONE Company owns a site in Toronto occupied since the 1970 s Challenge: Facing a large capital investment Business needs are changing Solution: Sale of legacy site and relocation to a leased site for office requirement Development of a workplace strategy suited to new business needs

19 CRE OPPORTUNTIES AND CHALLENGES CRE used this as an opportunity to re-position more closely aligned with business direction, C-suite support Establishing standards and policies Better supporting the workforce, the brand, employee attraction and retention and use of technology in the organization Delivering savings footprint, capital avoidance

20 CASE STUDY EXAMPLE TWO Global Fortune 500 Company looking to re-locate an existing office in Toronto, existing global mobility program Challenge: Moving 700 people from the suburbs to the core Move to a new global workplace standard Solution: Local transaction implementation Project team Change management team

21 CRE OPPORTUNITIES AND CHALLENGES Roll-out of global workplace standards Employee attraction and retention Footprint savings Local implementation teams consistency of roll-out Tailoring of the program to meet the needs of the local population Global versus local tensions

22 CASE STUDY EXAMPLE THREE Global Company looking to re-locate an existing Head Quarters office 45,000 SF Downtown location and several suburban locations Challenge: Outdated environment Employee engagement and retention problem Decentralized CRE decision-making, no standards Solution: Opportunity to integrate workplace strategy with business strategy employee engagement Right-size space and relocate functions to lower cost space Avoid capital expenditure

23 CRE OPPORTUNITIES AND CHALLENGES Re-think the workplace as a tool for employee engagement No standards..an opportunity to create them Centralization some CRE decisions? How much and which functions?

24 ANDREA WOLF-STRIKE, CANADIAN LEAD CONSULTING Gensler Architecture/Design Inc. October 2, 2013

25 CONSULTING PRACTICE

26 CORPORATE REAL ESTATE STRATEGIES Workplace Facility Transformation Real Estate + Portfolio Strategy Sustainability Integration Organisational Solutions

27 HEARST CORPORATION STRATEGIC PLANNING Project: Strategic master plan outlining qualitative criteria, space utilization, and area requirements Consolidation of multiple New York locations into a new 46-story tower by base building Ideal planning guidelines to help Hearst plan for the future

28 HEARST CORPORATION STRATEGIC PLANNING Research outcomes: Incorporate a kit-of-parts planning strategy to achieve consistency and efficiencies Encourage group interaction and collaboration through greater physical and visual connectivity Provide building amenities that reinforced the organization s commitment to employees

29 HEARST CORPORATION STRATEGIC PLANNING Design response: Shared building amenities including a fitness Facility and an executive conference center 18-month change management process that included project websites, workshops and training Brand and signage system that provides opportunities to celebrate each magazine/department

30 HEARST CORPORATION STRATEGIC PLANNING

31 HEARST CORPORATION STRATEGIC PLANNING

32 HEARST CORPORATION STRATEGIC PLANNING

33 CONFIDENTIAL FINANCIAL COOPERATIVE PORTFOLIO OPTIMISATION & WORKPLACE STRATEGY Project: 1.3 Million SF Following a restructuring in recent past, experiencing unprecedented growth and rapidly running out of workspace Office planning was reactive, additional office space was being secured in off campus buildings Rental costs were mounting as was employee dissatisfaction

34 CONFIDENTIAL FINANCIAL COOPERATIVE PORTFOLIO OPTIMISATION & WORKPLACE STRATEGY Research outcomes: Developed a strategy to combine hard data and social understanding using a combination of 7 analysis tools; 4 quantitative site observations, building analysis, activity analysis and benchmarking and 3 qualitative employee web survey, interviews and a visioning workshop Research concluded that densification was not possible, rethinking the way they worked was going to have to be the solution.

35 CONFIDENTIAL FINANCIAL COOPERATIVE PORTFOLIO OPTIMISATION & WORKPLACE STRATEGY Design response: Reinforcing the brand by increasing shared workspaces and collaborative environments to promote staff interactivity and cross pollination among work groups. Designing rooms that minimized disruptions and customizable workstations to fit a variety of work modes. The design could support a move to a mobile workforce with changes to furniture solutions and not leaseholds.

36 CONFIDENTIAL FINANCIAL COOPERATIVE PORTFOLIO OPTIMISATION & WORKPLACE STRATEGY Indicators Before After Results Seats % increase Construction cost/seat Collaboration space Total # works seats Construction cost/total seat $18,600 $17,600 5% savings/seat 17 seats/fl 69 seats/fl 4 X increase % increase $16,200 $11,700 27% savings/seat

37 CONFIDENTIAL FINANCIAL COOPERATIVE PORTFOLIO OPTIMISATION & WORKPLACE STRATEGY Before After Mobility

38 CONSULTING PRACTICE food for thought