Uncategorized | Facility Executive - Creating Intelligent Buildings

When complete in spring 2017, JLL’s corporate headquarters will incorporate the latest strategies in workplace design, including many of the best practices it already uses in its work for clients and features inspired by direct input from its workforce.


When complete in spring 2017, JLL’s corporate headquarters will incorporate the latest strategies in workplace design, including many of the best practices it already uses in its work for clients and features inspired by direct input from its workforce.

JLL Creates Workplace Of The Future At Revamped HQ

Uncategorized Articles

JLL Creates Workplace Of The Future At Revamped HQ

JLL headquarters culture

When complete in spring 2017, JLL’s corporate headquarters will incorporate the latest strategies in workplace design, including many of the best practices it already uses in its work for clients and features inspired by direct input from its workforce.





Smart Site Selection Can Save Data Center Users $141M Over 10 Years

Smart Site Selection Can Save Data Center Users $141M Over 10 Years

Enterprise data center users can potentially save up to $140.9 million with thorough due diligence in identifying markets that meet their business requirements and provide lower net tax burdens after incentives, relatively affordable power rates, favorable weather conditions, and greenfield space to build in a less expensive manner, according to a new report from CBRE Group, Inc. These potential savings represent up to 52.1 percent of the $270.1 million average project cost for a typical 5-megawatt (MW) enterprise project in the U.S. over a 10-year period. “The ever-increasing need for data exchange, storage and security is broadening demand for data centers in the U.S., but one solution does not fit all,” said Pat Lynch, managing director, Data Center Solutions, CBRE. “Capital and operating costs vary considerably by market, and non-monetary factors such as proximity to a headquarters location, fiber density and environmental and other risk factors can also drive enterprise site selection decisions.” The CBRE study modeled the cost of constructing, commissioning, and operating a 5 MW data center for 10 years across 30 U.S. markets, and categorized markets into three cost bands (low, moderate and high) according to analysis of specific cost components including tax incentives, power, construction, land and labor.  Tax Incentives: Data centers are capital intensive and generate significant sales and property tax revenues for state and local jurisdictions. Increasingly, markets that seek to attract data centers are offering significant tax incentives to help reduce the total cost of operations for data centers. Only four of the 30 enterprise markets in CBRE’s study – Philadelphia, Southern California, Silicon Valley and Northern New Jersey – do not offer tax incentives to enterprise data centers. These markets also rank in the high-cost segment. Power: Power costs average 13.2 percent of the total project cost over the life of the project, but vary from 6.5 percent in Quincy, Washington, to 21.3 percent in Boston. Quincy, Des Moines and Tulsa had the lowest power rates among the markets in the study. The most expensive power rates were in Boston, Southern California and Silicon Valley. Construction Costs: Facility construction costs represent about 35 percent of the total project cost over the 10-year period, averaging $94.0 million and ranging from $77.5 million to $116.3 million. The most expensive markets in which to build a Tier III facility include Boston, Silicon Valley, Chicago, Philadelphia and Northern New Jersey. Facility construction was least expensive in Tulsa, Charlotte, San Antonio, Jacksonville and Dallas. Land Costs: Land acquisition for greenfield development represents the smallest expense component in… …Read More…


Proposed FASB/IASB Changes: What CRE Should Know

Proposed FASB/IASB Changes: What CRE Should Know

CRE technology professionals wear a number of hats. My last post on this site addressed how CRE technology professionals can support their organizations’ M&As. Here, I’ll delve into how we can support industry governance — the hot issue on this topic right now is FASB/IASB requirements. If you are not familiar with these requirements, you are not alone. In fact, several months ago I attended a software users’ conference where one of the sessions focused on the proposed FASB/IASB requirements. The speaker asked how many people in the room of about 150 attendees had started to plan for implementing these changes first proposed in 2013. Less than 10 people raised their hands. A voice from the audience said, “How do we know these new requirements will be approved and why should we plan for something that may not happen?” Clearly, the majority of those in attendance were comfortable with a reactionary approach to what was to come. As the speaker addressed the question, the impact of the proposed FASB changes took hold of the audience like a tsunami approaching the shore. For nearly all the attendees, the full impact of these changes was a new topic introduced that day. Leases and the associated cost of borrowing would now be accounted for on the balance sheet. In some cases, the balance sheet could become much weaker than previously presented — even though actual expenses have not changed. A weakened balance sheet could also have the potential of increasing the cost of the company’s overall borrowing in the future. Will these proposed changes increase the tendency for lease terms to be shortened? Will shorter lease terms affect the value of the leased property, whether it be real estate or equipment? Will the cost of leasing likely go up — or down? While there is still much to be addressed, CRE technology professionals can support their organization by ensuring that their information management strategy is providing accurate and “real-time” data; a cohesive data analytics platform that can be accessed – and shared – by all business functions for  optimal decision-making. What’s next?  The next steps outlined by the FASB Board at the November 2015 meeting included directing staff to draft a final version of the Accounting Standards Update for formal vote by written ballot.  The effective date of the final leases standard for public business entities will be for fiscal years starting after December 15, 2018, and for all other entities for fiscal years beginning after December 15, 2019. Once the final standard is issued, early application of the change will be… …Read More…


In Seattle, Martin Selig Real Estate Invests In Pressure Boosting System

In Seattle, Martin Selig Real Estate Invests In Pressure Boosting System

Confronted by a failing domestic water booster pump at one of the downtown commercial properties managed by Martin Selig Real Estate, chief engineer Phil Boyd began searching for options to repair the existing tri-plex boosting pump system. The booster station serves the 43-story commercial office building at 1000 2nd Ave., located blocks from the Puget Sound waterway. Such high-rise buildings—including hotels, multifamily, office and other institutional applications—require pressure boosting equipment to raise incoming municipal water pressure to serve upper floors. Demand for water in such multi-story buildings can vary significantly throughout the day, and this unpredictable flow places extraordinary demands on pumping equipment. The original vertical triplex booster pump system (20HP and two 30HP) at the Martin Selig Real Estate headquarters building at 1000 2nd Ave. was 27 years old and lacked reliability and not equipped with modern energy efficient options. Boyd planned to repair the pumping station until Corey Rasmussen, sales manager at Grundfos, a global provider of pumps and pumping systems, suggested that the property management’s investment would be better spent on a new, more efficient water boosting system. To support this recommendation, Rasmussen advocated an independent energy audit to determine the building’s actual pressure requirements, given the condition of the existing 27 year old pumps. “We had absolutely no doubt that we could significantly lower the operating costs of the existing unit by using intelligent, demand-based pump technology,” recalls Rasmussen, who nonetheless provided Boyd the $17,000 repair quote. “The problem, however, was convincing a price-conscious customer to invest in new technology instead of rebuilding the decades-old pressure boosting pumps and motor drives.” Ultimately, Rasmussen suggested to Boyd the Grundfos Hydro MPC BoosterpaQ, an integrated pressure boosting system that would deliver the exact pressure necessary to achieve optimal performance — without direct human intervention. Ideal for water supply systems, as well as municipal boosting, water transfer, and industrial applications, these integrated pumping systems utilize an advanced controller to adjust pump speed and stage additional pumps as necessary to meet specific pressure demand.  Phil Boyd, chief building engineer of Martin Selig Real Estate, pictured in front of the company’s downtown Seattle headquarters at 1000 2nd Ave. “Initially, Martin Selig was looking at the possibility of rebuilding the existing pump station. After looking into the costs, we realized it made better sense financially to upgrade to a more energy efficient system,” says Boyd. Energy AuditIn order to demonstrate the value of replacing rather than repairing the pressure boosting system, Rasmussen contacted Grundfos colleague Roger Weldon, C.E.M., LEED AP, Energy Optimization Engineer, to arrange a… …Read More…


Colorado Launches Commercial PACE Program

Colorado Launches Commercial PACE Program

Colorado’s New Energy Improvement District has launched a statewide commercial Property Assessed Clean Energy (C-PACE) program – providing commercial property owners a unique mechanism to finance energy efficiency, renewable energy, and water-conservation improvements. The C-PACE program offers commercial property owners the opportunity to spread energy and water project costs over a term of up to 20 years, and repay them through an assessment on their property tax bill, with no upfront capital outlay. “Commercial buildings currently account for about 20% of Colorado’s energy use. Colorado’s commercial PACE program offers a financial tool to help spur energy efficiency and renewable energy investments in our state’s building infrastructure, providing long-term utility savings, while stimulating the economy,” said Paul Scharfenberger, chairman of the New Energy Improvement District board. The program provides financing for a variety of improvements, including new heating or cooling systems, lighting, water pumps, insulation, solar panels and other renewable energy projects. Typical long term C-PACE financing covers 100% of a project’s cost and is repaid, for up to 20 years, in semi-annual payments that are structured as a regular line item on the property tax bill.  When a property is sold the PACE assessment stays with the property and transfers to the new owner who, in turn, enjoys the ongoing utility cost-savings associated with the project. Sustainable Real Estate Solutions (SRS) was competitively selected as the Colorado C-PACE administrator and will oversee an open, competitive lending model that makes it possible for a wide variety of capital providers to participate. All projects will be financed entirely with private funds, allowing local lenders, national banks, and PACE capital providers an opportunity to finance projects. “C-PACE provides commercial and industrial building owners with an attractive way to finance capital intensive building modernization projects. The resulting energy savings typically outweigh the annual assessment payment thereby enabling cash flow positive projects,” said Brian J. McCarter, CEO of SRS, administrator for the Colorado C-PACE program. Eligible properties include office buildings, hotels, retail, agricultural, non-profits, industrial buildings and multi-family properties – with five or more units. Projects must be located in counties that have opted to participate in the program. Boulder County has opted-in, and several other counties around the state already have indicated that they plan to participate. For more information, visit the Colorado C-PACE website. Related articles across the web Other posts by Real Street Tech


Tsinghua University Students Win CoreNet Global’s First Academic Challenge

Tsinghua University Students Win CoreNet Global’s First Academic Challenge

“Orchestra,” a proposed system of coordinating the many facets of corporate real estate (CRE) developed by a team of students from China’s Tsinghua University, has won the first-ever Academic Challenge presented by CoreNet Global.  The student team and the university will each receive $10,000 for winning the challenge. The goal of Orchestra is to close the gap between the speed of real estate and the speed of business, according to the team’s entry. “We are trying to reduce the days, weeks or months between the realization of the existing need of more space (office space, manufacturing space, storage space, and other types) and its final delivery in form of usable area,” according to the team’s application. “The gap between the speed of business and the speed of corporate real estate is a persistent challenge in our profession,” said Dean Jordan, Senior Director of Business Development, University & External Relations. “These students took on that challenge and developed an innovative solution that not only impressed the judges, but also demonstrated the potential to be further developed and applied in real world settings.” Orchestra is a conceptual project extranet software, which would be managed by the CRE department, and operate in real time through the cloud in PC and mobile devices (smartphones and tablets) with several objectives: Store standardized information of the various functions of corporate real estate — to compare their compatibility for any specific project Control the transfer of information among the stakeholders Process the information generated during transactions to provide for more transparent and efficient decisions made by the CRE department Integrate the CRE management of the corporation in any city or region around the world into one central control data base that provides real time information as required by the head managers or shareholders Credit: Tsinghua University In its entry, the student team said that Orchestra closes the gap by reducing the time required to deliver information and share feedback, storing and providing access to project history, allowing global integration with instant access to worldwide corporate portfolios and creating open spaces where managers, consultants and contractors can see each other and make decisions in a more transparent environment. CoreNet Global launched the Academic Challenge, which is sponsored by Cushman & Wakefield, earlier this year. Real estate, human resources and technology typically rank among the top three expenditures of most corporations, and corporate real estate executives manage millions (and sometimes billions) of dollars of assets across the globe. The academic challenge is part of CoreNet Global’s strategic priority of strengthening its… …Read More…


Optimized Energy Use: A Washington, DC Case Study

Optimized Energy Use: A Washington, DC Case Study

A provider of commercial real estate (CRE) energy management solutions, MACH Energy is focused on demonstrating that efficiency upgrades for buildings do not have to be costly, invasive, or time-intensive. For property owners and managers, MACH’s cloud-based energy management software platform can provide actionable multi-utility analytics, increase ENERGY STAR scores, and ease daily tasks such as budget reporting and tenant billing. These features, states the firm, are allowing MACH to dismantle the misconception that green buildings have to be designed from the ground-up for optimized energy use. Regardless of age, size, or occupancy, all commercial buildings can use electricity, water, gas, heat, and steam more efficiently and cost-effectively. MACH’s interface pinpoints and leverages the data that makes this possible: analytic Insights, or energy-use metrics and benchmarking, are processed into practical initiatives, or actionable changes that can be applied to a building’s hour-by-hour, or minute-by-minute, functionality. The Challenge: Reduce Energy and GHG while Improving ENERGY STAR scores Based in Washington DC, Carr Services provides property operations services to Carr Properties-owned and third-party owned commercial real estate investment companies. Carr was looking for a portfolio-wide energy management platform that could be used to drive operational changes, reduce energy use and expense, improve ENERGY STAR scores, reduce greenhouse gas emissions, and raise awareness about energy conservation across the portfolio. Building Profile: Floyd D. Akers Building, 1255 23rd Street NW, Washington, DCLocation: West EndYear Built: 1983Year Renovated: 2009Number of Floors: 8Building Size: 337, 983 SFAverage Floor: 40,000 SFElevators: 7Energy Star Score (2008): 78Energy Star Score (2015): 88LEED Certification: GoldHVAC: Central plant chillers and air handler with mix of pneumatic and DDC controlled VAV boxes, with resistance heat in the perimeter DDC VAV boxes MACH’s Approach To Energy And Operational SavingsUsing energy and weather analytics that have been developed and proven over the last decade in millions of square feet of commercial office space, MACH Energy’s CRETech software identified specific issues that needed to be addressed in order to reduce electric usage. An automated analysis and trending tool, the company’s Insights platform identified operating days that demonstrated unusual energy usage from weather adjusted norms. Industry and regional baselines were then used to identify improvement opportunities such as early startup, late shutdown, and cyclic and “spike” oriented equipment operations. Deeper analysis and expert help were also administered from MACH’s Client Services Group to review automated recommendations, to explore strategy alternatives, and to develop specific plans to improve operations. This attentiveness to catching operational “stray” that leads to energy waste is a key ingredient to high-performing buildings. Using data provided by MACH Energy,… …Read More…