SMART BUILDING TECHNOLOGY
Companies are using new technologies to help manage their office buildings
more efficiently.
Dawn Pick Benson
With new technologies entering the marketplace each day, there are numerous
options to choose from when looking for ways to manage office buildings
more efficiently. Technologies such as fiber optic telecommunications,
the Internet and intranet services all help companies do business so much
faster and more efficiently that many companies are putting these "smart"
building technologies to use in the day-to-day management of their own
buildings.
Insignia/ESG
Insignia/ESG is one company that has implemented some of these smart
technologies into its everyday work environment. For example, the company
is implementing an e-procurement solution used by property management
firms to help manage their buildings. Insignia/ESG uses this technology
to manage buildings like Crown Pointe, a two-building, Class A high-rise
complex located in the Central Perimeter area of Atlanta. According to
Carol Bell, director of property management for the Atlanta region, "Technology
allows us to tap into national databases and purchase products for our
buildings at the best prices for each particular product." In fact, a
study by Deloitte Consulting found that e-procurement technologies can
decrease costs for owners and operators of commercial real estate by more
than 71 percent.
This technology can also help track a company's certificates of insurance
and keep up with their renewal dates. "By tapping into this resource,
it cuts down on the number of phone calls that a property manager has
to make," says Bell.
"Many times, managers begin the day with 15 things to do and by 11 a.m.,
they haven't hit the first one because they've been putting out fires,"
says Bell. Because of this, she adds, contracts don't always get the close
attention they require. In the midst of this rush, they can sometimes
go out the door with missing information. "Technology can provide an additional
review and monitoring level to help avoid this."
Insignia/ESG is currently implementing technology to manage its standard
vendor contracts and insurance requirements. This will be a tremendous
help to the property manager in the bidding process, which, according
to Bell, can be very time consuming. Soon, a property manager will simply
ask for a landscape bid using their company's standard contract. The property
manager will then input their particular specifications and technology
will help the manager bid and compare the various proposals electronically.
"This will streamline that process for both the vendor and the property
manager," says Bell.
As this information is gathered over time, according to Bell, Insignia/ESG
will be able to develop a national benchmarking system -- a base of reports
and information on their numerous service provider contracts and/or the
average costs the company is spending for that particular service in a
particular region.
Insignia/ESG also uses technology to manage a library of forms and a
database of companies that provide services such as pest control, landscaping
and janitorial help. This is especially helpful for a property manager
who has a new building or who is new to a particular city and is not familiar
with all of the vendors for each particular service. In this case, a manager
needing three pest control bids can search and find the three best qualified
vendors in the community. The manager also has the ability to narrow the
bidding pool according to geographic location or size of the company.
"This program allows us to simply enter a set of specs and let the technology
manage the process. Because of the efficiencies and savings we are seeing,
Insignia/ESG has been proactive in seeking high-tech solutions to propery
management issues," says Bell.
Other firms in real estate are also looking closely at the implications
of technology on their business practices. For example, Insignia/ESG is
a member of Project Octane, a consortium of companies that includes Jones
Lang LaSalle, CB Richard Ellis and Trammell Crow Company.
Insignia/ESG also utilizes other technologies such as an intranet that
allows the company to make all of its best practices and forms accessible
to property managers throughout the country. "If you are a national company,
this is a great way to ensure consistency and use of your standard contract
and forms," says Bell. This helps the property managers and is much more
efficient because managers know where to go to access particular contracts
or forms without getting on the phone or obtaining hard copies.
Another technological step that Insignia/ESG is moving toward is the
use of the work order system via the Internet. At the request of one of
the firm's building owner clients, it is currently beta testing this in
one of their Atlanta properties with iTendant, a company that provides
Web and wireless solutions for property service and maintenance. With
iTendant, tenants can simply e-mail work orders to their management office
that are then transmitted to an engineer via a two-way pager. The engineer
can decide if he or she will accept the work order. If he or she doesn't
accept it, it automatically goes to the next engineer until somebody takes
ownership of that work order. There are also mechanisms that alert both
the management office and the engineer if there is an outstanding work
order. After the job is complete, the tenant is notified. "This program
facilitates a quick response time and consistent follow through, which
is primary to customer service in the property management business," says
Bell.
"All of this technology allows the property managers to focus on the
day-to-day operation of the building and working with their landlord-clients
instead of getting tied up in paper work and details," she says. "All
of this means a reduction in paper as well as phone calls and mail time."
Bell also notes that these technologies bring a cost reduction to the
client as well as to the tenant because the client is saving money and
the property management business is operating at a much higher efficiency
level.
Duke-Weeks Realty Corporation
Indianapolis-based Duke-Weeks Realty Corporation's HVAC systems have
provided the company's newer buildings with the ability to have digital
control systems that allow property managers to monitor and program them.
"This really takes our efficiency in operation up to another level," says
Andrew Kelton, senior vice president of Duke-Weeks Realty Corporation's
Raleigh group. "It tells you when to maintenance a system and when there
are trouble calls. Unlike the older versions, which required that you
pull information up on a screen and check for trouble, the newer systems
will actually call you if there is trouble. The energy efficiencies as
well as the convenience to our tenants are quite large."
According to Kelton, energy efficiency is currently a major issue. People
are more focused on it because of what is going on in California. Because
of this concern, Duke-Weeks has done internal audits and is working with
the local power company to evaluate how the company can be sure to operate
its buildings as efficiently as possible. In most cases, Duke-Weeks is
then able to pass those savings back to its tenants through lowering operating
costs.
Duke-Weeks is an equity shareholder in Broadband Office Inc., a national
broadband telecommunications service that provides local phone service,
long distance, high-speed Internet, data and video connectivity, e-mail
and Web hosting. "Broadband Office Inc. does a wide variety of telecommunications
services for us by bringing fiber optics and other connectivity to the
building. We work with several telecommunications providers in addition
to Broadband Office. Our goal is to provide advanced telecommunications
services to our tenants," says Kelton.
Because of its desire to utilize state-of-the-art technology, Duke-Weeks
is very aware of the kinds of conduits that run to its buildings' streets.
"Raleigh is such a heavy technology-related area that it's imperative
to look at which communications providers have a presence in the streets
in front of your buildings," adds Kelton. "You have to provide enough
excess conduits to those streets for future tie-ins to your building."
Colliers Turley Martin Tucker
Colliers Turley Martin Tucker has created a Web-based management system
exclusively for its property managers, according to Joe Hegger, senior
vice president and director of operations. This system, called PM REflex,
offers maintenance management, lease administration, purchasing coordination,
vendor management, administration and tenant coordination and tenant contact
management. PM REflex also maintains lease abstracts and holds all general
information about a property, vendors that service the property and which
ones have service contracts. It also manages service requests for tenants
and provides flexible reporting and ticklers, which are reminders of things
to be taken care of each day.
The company has procured connectivity in all of its property offices
so everyone has high speed Internet connections and can access all the
data on their properties and tenants via the Web. "PM REflex allows us
to manage over a multi-state region, and it literally takes those boundaries
away. Now we can operate 24-hours-a-day from anywhere that we can access
the Web," says Hegger.
Colliers Turley Martin Tucker also provides its employees with Web-time
access to accounting information for every region. Because of this, employees
don't waste a lot of time faxing information and sending costly overnight
packages, according to Hegger. Employees can instead access this information
immediately through the Internet. The information is shared through the
most secure form of Internet communication possible, the same type of
system that most Internet-based companies use to accept credit card information.
The company's Web-based technology also allows them to develop Web sites
for their significant buildings. "Many tenants want multiple ways to access
us. Many will call when they need things, but some like to communicate
electronically. Through this Web site, they can report problems and ask
for help. They can do all this at midnight if they want. If it's an emergency,
we can handle it immediately. Otherwise, we can address the situation
the next day," says Hegger.
Some of the company's more significant properties need 24-hour operation
without fail, so their systems automatically page the appropriate people
when alarms occur. The systems at some locations also notify people routinely
when milestones are achieved throughout any cycle so if the person doesn't
get a page on a certain day, he or she will know something is wrong. These
systems are accessible via the Web or by phone, depending on the system,
so the technicians can evaluate the problem and determine if they can
fix it remotely or need to make a trip on site to take care of the problem.
"These Web-based systems encourage our clients to invest more in technology,
and now we have a real platform to do that. Once we pull all these items
together, it really is the conduit for allowing improvements to building
systems," says Hegger.
"Now that the platform is in place, the door is open for us to do other
things," says Hegger. One thing the company is doing is tying older systems,
such as a property's computerized maintenance management system, into
the energy management systems. Now, instead of doing preventative maintenance
on a quarterly basis, the energy management system can tell how often
each piece of equipment is being used. A work order is then produced based
on hours of actual use, not on a guess of how much it should have been
used. "This greatly improves the operation of our managed buildings. It
saves time and, ultimately, money. We can avoid working on things when
it's not necessary, and we can now focus on maintaining these systems
on a timely basis before problems occur," says Hegger.
In order to promote even more efficiency in their workplace, Colliers
Turley Martin Tucker invites employees from all over the region to its
office in St. Louis to participate in Colliers University. This in-house
program teaches attendees about the company's systems so that they can
apply their training to their respective projects. The company has also
developed a 1-800 help desk and call center for tenant services. By maintaining
data from all its facilities on one system, Colliers Turley Martin Tucker
can manage some facilities remotely through its 1-800 help desk.
"I think one of the themes we are seeing today is anytime, anywhere access
of information," says Adam Kidd, chief information officer at Colliers
Turley Martin Tucker. "From accounting to leasing or maintenance information,
not only do our team members have access internally, but when necessary,
vendors and/or owners of the properties can gain access through a secure
mechanism," he adds. "Our customers are really pushing us in this area
and asking us for better, faster and more reliable access and information
to help them make good decisions. So we're right out there on the edge."
"Our company made significant investments in technology over the past
18 months," says Hegger. We've gone from installing individual technology
systems to really integrating systems so they provide meaningful information
and solutions for our clients."
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