Sailing the 7 cs

Sailing the 7 Sailing the 7 CC’s’s7 Issues Currently Driving Corporate Real Estate7 Issues Currently Driving Corporate Real Estate

Why Listen to ?Why Listen to ?

CredibilityCredibility

InnovationInnovation

DesignDesign

DTRTDTRT

MoneyMoney

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

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

Count What You Are UsingCount What You Are Using

Permanently empty

Count What You Are UsingCount What You Are Using

Temporarily empty

Collaborative EnvironmentsCollaborative Environments

•Total is greater than the sum of the parts

•Work that Works!

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%

CollaborationCollaboration

Changeable LayoutsChangeable Layouts

Change Big. Change Fast.Change Big. Change Fast.

Catch, Engage & Keep Top Talent: Catch, Engage & Keep Top Talent: A Client’s Life Blood A Client’s Life Blood

Catching TalentCatching Talent

Catching…Catching…

Carbon FootprintCarbon Footprint Social BrandingSocial Branding

Source: USGBC

Chameleon vs Always GreenChameleon vs Always Green

71

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

RePurpose Driven LifeRePurpose Driven Life

0

10

20

30

40

50

60

70

80

90

100

Green Time $ DTRT

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

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

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

Change Management:Change Management: Replacing Mutiny with Kumbaya Replacing Mutiny with Kumbaya

ChangeChange

You want me to office where!

SummarySummary

The 7 C’s

1. Count What You Are Using2. Collaboration3. Changable Layouts4. Catching Top Talent5. Carbon Footprint6. Costs7. Change Mgmt

ConclusionConclusion

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]