Building & Facilities Operations

I’ve been told, “If you’re looking for answers, they’re not going to just fall into your lap!” Well, if you post the right question, they just may fall into your LinkedIn lap. Following a Building Engines webinar on LEED EBOM certification, I wanted to open up the discussion to other property and energy management and professionals.

LinkedIn, specifically the BOMA International Group, proved to be a fruitful forum for my question: What are some tips around the greening of existing buildings? Here are some of the discussion’s responses:

Since lighting represents about 30% of our energy bill upgrading to LED lighting saved us from 74 – 90%! We have tried several different LED lamps, however, we found that the ones offered at www.lightingatlanta.org are some of the best available.

You could also add motion sensors and wire them with the light switches so after 5 minutes of no movement, the lights will automatically go off.

There are many low-cost/no-cost measures you can take to green your facilities: (1) adjusting thermostats for seasonal comfort and programming in night set-backs; (2) reducing ventilation to unoccupied spaces and for nighttime operation; (3) replacing air handler filters, and (4) other basic O&M practices to tune up energy equipment performance

You can go further by periodically conducting Level 1 audits and follow-up retro-commissioning on key systems such as the controls or boilers/chillers/air handlers.

Relative to HVAC system energy savings, if the building’s systems utilize a building automation system, a comprehensive review of the sequences of operation in comparison to actual setpoints and schedules is a great method to save operational dollars and energy. Often, over many years, changes are made by operators and unintentionally the intended energy savings design features of the HVAC systems are lost.

The building envelope is a good place to start to realize energy savings. Before upgrading HVAC equipment, it makes sense to seal up energy leaks at the roof and facade, to avoid over-spending on heating or cooling.

Do not source a lighting solution which uses products available only from one manufacturing source.

Reducing your outdoor watering costs. Most landscapers do not know how to properly set the sprinkler systems, and often just defer to over watering, since you will only notice on your water bill.

Make sure that any intelligent lighting solution is native to the building management/automation system so there is seamless access to any available data from the lamps at any time. Further this allows you to easily share information between lighting and other systems for even more potential efficiency savings.

Read more on using lighting to conserve energy!

The Einstein Principle:

Accomplish More By Doing Less

Einstein’s theory of relativity was born from a work ethic principled on narrowing one’s focus (for him this unfortunately left out distractions like hygiene, social decorum and his wife). Property owners and managers should take a page from his book (no, not The Evolution of Physics). They should re-engineer their processes to allow them to focus their attention on select meaningful and productive pursuits.

Today, even the best property managers and owners likely aren’t developing one of the greatest achievements of the past century, but they are being more selective with with their endeavors. OK, so they don’t want to spend their time juggling, but what to do with the other balls?

The most successful organizations select a technology partner to provide the critical information, systems, and support competencies that are not central to a property management organization. Enabling technologies help companies accomplish more with fewer resources, improve service levels, attract and retain tenants, manage assets more effectively, and lower business and financial risk.

The adoption of information collection and reporting tools allows managers the time to apply their skill and experience to more meaningful tenant interactions, decision making, outreach, and brand management. Just don’t pull an Einstein and forget to wear socks.

Tenants, Tenants, Tenants

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Scott Sidman, VP Sales & Marketing

At the intersection of Commercial Real Estate, Corporate Real Estate, automation and technology, is Realcomm, showing CRE professionals how and why to integrate technology into their business. A proud panelist on Realcomm’s next webinar, Building Engines’ Scott Sidman, VP Sales & Marketing, will show examples of how technology can help attract new tenants, and keep the ones you’ve got.

WEBINAR DESCRIPTION:

With the real estate market problems far from being over, operators around the globe have been reintroduced to the concept of tight management. While decreasing expenses is important, keeping your space occupied takes on an even higher priority. Real estate companies are quickly learning that automation can play a key role in effectively managing and retaining existing tenants and can also be a success factor when competing for new tenants. Join us as Realcomm’s panelists discuss using technology to maximize occupancy!

Maybe you’re better than others. Do you know it and how can you show it? Maybe you’ve some catch-up to do in key operational areas. Do you know where and how you should improve?

Get off the bench and get on the benchmarking track! Being a competitive player in CRE demands a comparative analysis of your performance to both that of your peers and best practices in the field. Luckily, we’ve the equipment to start your warm up!

There’s an easy way to measure and benchmark your operational performance. We’ve created a short benchmark survey  that allows for property management professionals to assess their performance across several operational areas and receive immediate feedback based on their responses. Take ten minutes to complete the Operational Assessment Survey and instantly receive a personalized Benchmark Report.

More importantly, you will gain a better understanding of your property’s processes compared to real estate operational best practices. Where do you shine, and where do you need some polishing?

Benchmark the state of your operations for:

1. Tenant Service & Satisfaction
2. Maintenance & Assets
3. Risk Management & Exposure to Liability
4. Online Real Estate Operations

Start the Operations Assessment Survey!

Like the topic? You may also be interested in:

• ON MANAGEMENT: Where Do We Go to Find Best Practices?
• ON MANAGEMENT: 10 Steps to Simple Benchmarking
• Keeping Some Metrics up your Sleeve: 5 Questions you Should Ask
  

Property managers must be echo-friendly if they hope to survive in the rental market. According to a recent GlobeSt.com article (whose inspiration and information derives from a panel at the RealShare Apartments Conference in LA), the youngest generation of renters are posed to set standards in the market.

Echo-boomers, the 20 and 30-something children of Baby Boomers, are entering the rental housing market and making demands. Demand making is generally seen as characteristic of this demographic, who is largely known for their technological savvy (and/or dependence) and sense of entitlement. Also known as Generation Y, Generation Next, and Millennials, Echo-boomers are predominantly renters and “nimble” – they are swift to relocate if their demands are not being met.

What does this mean for standards in property management? To satisfy and retain members of Generation Y Stay Here and Generation Next Apartment: requests must be quickly acknowledged, service all online, and technology support fully functional. Building owners and managers should expect fewer walk-ins and phone calls, and more communication with this segment via their preferred methods: laptops, tablets, and smart phones.

According to GlobeSt.com, the trend of conducting business online with these tenants is only increasing, and in many cases resulting in outsourcing for technical-support functions. Essentially, unless property managers want more turnovers than a bakery, they need to watch the boom and cater to this generation.

Tenant Request: Polly Wants a Cracker

One of the latest clients to incorporate Building Engines into their daily routine is the Mesker Park Zoo, located in Evansville, Indiana. Typically when people think of Building Engines, they think of assembling car parts. And then they think of a commercial property management tool. This is because amateur auto mechanics are very prevalent. And the majority of our clients utilize our standard setup, which breaks accounts down by building, employees, and occupying tenant companies. This setup allows for all of a property’s components to fit neatly into the application.

This setup was not going to fit the zoo’s needs as easily. We needed to pony up and figure out a way to meet the zoo’s objectives, while remaining within the confines of the application’s capabilities and proving that we didn’t have a tiger by the tail. This is where we were able to get creative.

After talking more than turkey with the zoo’s Operations Managers and internally discussing available options, we configured the application to not only oversee the buildings, but also the components that didn’t automatically fit neatly into one area or another. Essentially, we sectioned the account into logical areas, including the exhibits, the surrounding regions, and any transportation services that were located within them. This gave the park’s operations team an easy way to track all work orders and preventative maintenance in logical format.

Overall, we have been proud as a peacock with the results. Our work with the Mesker Park Zoo has given us a successful template for additional zoo clients, as well as valuable insight into their daily operations. This insight is what fuels the unexpected enhancements that all of our clients can benefit from, and enables us to separate the sheep from the goats!

Before you can answer the question, “How is my property performing?” you need to ask a few questions. An understanding of property performance is rooted in operational data that is documented, visible, and accessible. However, collecting and managing this data can often feel like searching for the Holy Grail, and wholly fail.

To satisfy and attract investors and tenants, develop easily consumed data around the areas of operations you should have insight into. But first, figure out what those areas are.

Here are the 5 questions about operational metrics you should ask:

Besides the obvious and easy to identify occupancy and retention/renewal numbers, how do you understand underlying indicators such as Tenant satisfaction?

This may encompass accessing and assessing information around your property’s:

• Management team
• Services performed
• Quality of the environment
• Amenities
• History of tenant activities and interactions

How do you assess and understand whether your management team is properly managing operational risk?

Assess your property’s level of:

• Planning and documentation processes for access to information from any location
• Information organization to ensure the ability to defend in the event of a legal matter
• Active certificates of insurance for all tenants and service providers
• Compliance with all life safety requirements (code compliance, inspections, documentation, etc.)
• Reduced insurance costs through a pro-active risk management program

How well is my asset and the equipment being maintained?

Your operational data should reveal that:

• Maintenance is documented
• Access to that information is easily available
• Capital planning is associated with maintenance activities
• The long-term capital effects of deferred maintenance are known
  
• There is NNN tenant compliance with maintenance requirements
• There is a noticeable reduction in energy costs with increased scheduled/preventative maintenance
• The amount of work performed by on-staff personal vs. outsourced service providers is documented
  

How do I receive information on the operational performance of my property?

Ensure that there is:

• Consistency and a standard format
• Frequency of information
• Enough information at a high level to clearly show the data that matters
  

How is one property comparatively performing in key areas?

Analyze how a property is performing in comparison to:

• Other properties in the management portfolio
• Other like-properties using a similar system
• Internally set targets of performance, including ownership target objectives
• Accepted industry standards

To hear an owner and investor’s perspective on the Metrics That Matter, sign up for a free webinar!

Date: Tuesday, October 25th, 12:00pm – 1:00pm EST

Register Now!

In line with our constant pursuit of CRE Best Practices, we have to commend BEI client Kurt Padavano, COO of Advance Realty, for his “Tenants’ Bill of Rights.”

The adoption of such standards reveals Advance’s quality operations and good business strategy. Efforts to retain happy customers are significantly more time and cost effective than acquiring new ones. Here’s evidence of Advance’s advanced thinking:

Want more on Tenant Retention and Satisfaction? You may be interested in:

• Being Tenant Retentive (It’s a Good Thing!)
• Full House: Strategies for Tenant Retention
• On Property & Tenant Management: How to You Retain Experience & Knowledge?

You have the right idea, but you’re missing a key component to achieving your desired business outcome. The key stone to top-notch property and tenant management is not the system. It’s the service.

Buy a Vendor, Not a System

I talk to operations people on a daily basis. I continue to hear from people that they want to buy a work order system or a preventative maintenance system. They have a problem getting “system” out of their system.

When our customers first start working with us, they too are often motivated to address a specific, tactical requirement, typically work order management. Often this is a reaction to an external prompt such as a tenant problem or a competitive challenge. But, they quickly realize how an integrated platform and support services help them address almost all areas of daily property operations.

Buying a “system” only guarantees incremental improvement over where you are today. Evaluating and buying a vendor relationship assures that you will achieve your goals.

Years of experience working with successful owners and managers has solidified my perspective that the following best practices for selecting and working with a partner deliver the results that make a difference.

Best Practices for a Successful Client-Vendor Relationship

Identify a vendor who:

Makes a habit of learning about your business

Focuses on what drives you and your company

Knows your strategic goals, and takes an active role in helping you achieve those goals

Is open and available for assistance in helping you achieve your goals

If you find a vendor who can align with you on all these points, the “system” will deliver results far and above your expectations. Your investment will be justified based on your strategic objectives, not a need to satisfy a tactical gap in your operations. So go on a vendor bender. Without this key stone, your building may crumble.

According to Hubspot, 20% of US consumers access a social networking site via mobile phone. Not only your prospective clients, but also engineers, property management staff, and vendors perform their jobs while on-the-go.

Often referred to as “traditional” or “old school”, even Commercial Real Estate is going mobile. It’s changing the way we do business. For better or worse, information is readily available wherever you are (save maybe a few dead zones in Siberia). How should you harness this information?

Patrick Braswell, Principal at Scotland Wright Associates, specializes in tenant representation… and he often does it from his phone or iPad. Here he explains his use of mobile technologies to stay informed, interesting to prospects, and connected to tenants and contacts.

Watch the Impact of Mobile!

Find this interesting? See this infographic on The Mobile Workforce!