sailing the 7 cs
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Sailing the 7 Sailing the 7 CC’s’s7 Issues Currently Driving Corporate Real Estate7 Issues Currently Driving Corporate Real Estate
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Why Listen to ?Why Listen to ?
CredibilityCredibility
InnovationInnovation
DesignDesign
DTRTDTRT
MoneyMoney
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The 7 The 7 CC’s Driving Corporate RE’s Driving Corporate RE
1.1. CCount What You Are Using / Space Utilizationount What You Are Using / Space Utilization
2.2. CCollaborative Work Environments ollaborative Work Environments
3.3. CChangable Layouts hangable Layouts
4.4. CCatching, Engaging & Keeping Top Talentatching, Engaging & Keeping Top Talent
5.5. CCarbon Footprintarbon Footprint
6.6. CCosts - Costs - Costsosts - Costs - Costs
7.7. CChange Communicationhange Communication
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Count what You Are UsingCount what You Are UsingSpace UtilizationSpace Utilization
Where is everybody? Where is everybody?
CoreNet's Global CoreNet's Global Achievement Achievement AwardAward
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Count What You Are UsingCount What You Are Using
Permanently empty
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Count What You Are UsingCount What You Are Using
Temporarily empty
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Collaborative EnvironmentsCollaborative Environments
•Total is greater than the sum of the parts
•Work that Works!
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The Way People Work Is ChangingThe Way People Work Is Changing
Group Work
Working Alone
WORK STYLES
Percentage of Individual’s Work Product That Will Depend on Group Input
Source: Gartner Dataquest, 2002
1985 1990 1995 2000 2005 20100
20%
40%
60%
80%
100%
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CollaborationCollaboration
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Changeable LayoutsChangeable Layouts
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Change Big. Change Fast.Change Big. Change Fast.
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Catch, Engage & Keep Top Talent: Catch, Engage & Keep Top Talent: A Client’s Life Blood A Client’s Life Blood
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Catching TalentCatching Talent
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Catching…Catching…
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Carbon FootprintCarbon Footprint Social BrandingSocial Branding
Source: USGBC
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Chameleon vs Always GreenChameleon vs Always Green
71
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Building Sustainability Building Sustainability Produces Big BenefitsProduces Big Benefits
Green is GreenGreen is Green
8-9%8-9% decrease in decrease in operating costsoperating costs
7.5%7.5% increase in increase in building valuesbuilding values
6.6%6.6% better ROI better ROI
3.5%3.5% increase in increase in occupancyoccupancy
3%3% increase in rent increase in rentSource: USGBCSource: USGBC
Source: USGBC
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RePurpose Driven LifeRePurpose Driven Life
0
10
20
30
40
50
60
70
80
90
100
Green Time $ DTRT
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Costs - Costs - Costs:Costs - Costs - Costs: Space, Employees & Do OversSpace, Employees & Do Overs
Rent: $25/SFRent: $25/SF
TI $40/SFTI $40/SF
Labor: $50K Emp/200 SF = $250/SFLabor: $50K Emp/200 SF = $250/SF
Do Overs: Leases, TI’s, Furniture is even moreDo Overs: Leases, TI’s, Furniture is even more
10%: Rent $2.50 or $4 TI vs Labor $25.00/SF10%: Rent $2.50 or $4 TI vs Labor $25.00/SF
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Office Economics General Ledger Cost
•100,000 Sq Ft Office
•Employee: 1,000 employees at
60,000 per year with benefits =
$60,000,000/yr
•Rent: $15.00 net rent per foot =
$1,500,000/yr
•Furnishings: $20.00 per foot for new
furnishings at 7 year amortized
value = $285,000/yr
•Utilities: $3.00 per foot for energy
cost = $300,000/yr
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A Tale of Two Sit-iesA Tale of Two Sit-ies
It was the Best of times.It was the Best of times.$1,000 chair$1,000 chair$10 Million & 6 years in R&D$10 Million & 6 years in R&DScientifically Proven BenefitsScientifically Proven Benefits$50K /yr employee $50K /yr employee +10 minutes a day+10 minutes a day12 yrs +$11,00012 yrs +$11,000
$23,100 X 100 employees = $2.3 million savings$23,100 X 100 employees = $2.3 million savingsHalf an hour it’s $6.9 million savings Half an hour it’s $6.9 million savings & 200 employees $13.9 million savings& 200 employees $13.9 million savings
It was the Worst of times.It was the Worst of times.
$100 chair$100 chair
$0 R&D$0 R&D
Back & Neck Pain & HotBack & Neck Pain & Hot
$50K /yr employee$50K /yr employee
-10 minutes a day -10 minutes a day
12 yrs -$12,10012 yrs -$12,100
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Change Management:Change Management: Replacing Mutiny with Kumbaya Replacing Mutiny with Kumbaya
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ChangeChange
You want me to office where!
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SummarySummary
The 7 C’s
1. Count What You Are Using2. Collaboration3. Changable Layouts4. Catching Top Talent5. Carbon Footprint6. Costs7. Change Mgmt
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ConclusionConclusion
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Thank YouThank You
Tim CrockettTim CrockettGlobal Client Relations ManagerGlobal Client Relations ManagerHerman MillerHerman MillerBldg 6 Suite 300 Bldg 6 Suite 300 1800 Post Oak Blvd1800 Post Oak BlvdHouston, Texas 77056Houston, Texas [email protected]