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					Real Estate Associate Program

                          Office Building Management
                                      Presented by:
             Lance Carlile Nick Hayden Andy Toland
Agenda

Section I Building System Basics
Section II The Building Business
Section III Case Studies




                             Real Estate Associate Program
Section I: Building System Basics
Building System Basics




   Heating, Ventilation, Air Conditioning
                     HVAC




                         Real Estate Associate Program
HVAC

 Buildings need heating, cooling (air
  conditioning) and fresh air
  (ventilation)
 Measured in tons
 12,000 BTU’s = One ton
 A/C systems cool space that is
  heated by sunlight, people and
  equipment
 Air-cooled systems vs. water-
  cooled systems



                                    Real Estate Associate Program
HVAC
First Class Office Building Standards:
 Typically 350 to 400 sq. ft./ton
 Data Center needs can be 70 to 150 sq.
  ft./ton
 Deliver 70° to 76° temperature range
 Air flow - average 1.1 CFM/sq.ft.
  (ventilation)
 Ability to add supplemental cooling
 At least 1 zone (thermostat) per 1000
  sq.ft.
 Individual control at office level
 Flexible/reliable
 Low operating cost

                                     Real Estate Associate Program
System Configurations

 Central Plant:
    Central chillers, central fans
    Central chillers, floor-by-floor fans



 Unitary:
    Self-contained package units per
     floor




                                         Real Estate Associate Program
Central Chiller – Central Fans


 Advantages                                              X

   Low energy
   Low maintenance cost                                  X

   Noise
   No loss of space
                                                          O



 Disadvantages                                           X

   Reliability
   Flexibility
   After-hours costs are high
                                                        VSD



                                 Real Estate Associate Program
Central Chiller – Floor by Floor Fans

 Advantages
   Flexible
   Reliable
   Low after hours
   Cost allocation
 Disadvantages
   Disadvantages
   Noise
   Floor space
   High operating cost

                          Real Estate Associate Program
Self-Contained Packaged Units per Floor


 Advantages
   Low after hours
   Flexible
   Reliable
   Cost allocation
 Disadvantages
   Noise
   Higher operating costs



                             Real Estate Associate Program
HVAC
Maintenance
 Condenser water must be treated with chemicals to reduce
  corrosion and extend life of pipes
 Chiller tubes and condenser and evaporator coils must be cleaned
  periodically to maximize heat transfer efficiency
 Motors and pulleys need regular alignment and lubrication
 Vibration analysis on motors
 Air filters must be replaced regularly




                               Real Estate Associate Program
Building System Basics




           Vertical Transportation
                  Elevators




                         Real Estate Associate Program
Vertical Transportation
Elevator System Design
 System Design Elements
     Number
     Speed
     Type
     Quality
 Key issue is number of people to be moved per hour
     Heavily affected by building use:
     Multi-user
     Single user
     Nature of business/use



                                          Real Estate Associate Program
 Geared Traction Elevators
 “The Brain”
 •Group Dispatcher
 •Controller            “The Guts”
 •Selector              •Drive Machine
                        •Motor Generator                          Overrun
                        •Wormscrew & Gears

Cables: Single or
Double Wrapped                      Cab
                                                                   Side
                    Counterweight                                  Brakes

                               Buffer in Pit




                                          Real Estate Associate Program
Geared Traction Elevators
 Principle:
    Electricity/motor drives gear to
     move cab & cables
 Medium Speed:
    250-450 ft./min.
 Cab Weight is balanced by
  Counterweight
 Limiting Factors:
    Friction in gears and cabling
 Cabling Alternatives:
    Double/Triple wrapping to reduce
     wear and allow larger loads

                                        Real Estate Associate Program
 Gearless Traction Elevators
“The Brain”
                       “The Guts”
Cables: Single or      •Except NO Gears
Double Wrapped

                                 Cab

               Counterweight



                               Buffer in Pit




                                       Real Estate Associate Program
Gearless Traction Elevators
 Principle:
    Direct drive, velocity of cab direct
     variable of motor speed
 Allows Maximum Speed:
    500-1200 ft./min.
 Allows Maximum Height
    Everything over 20 stories
 Limiting Factors:
    Movement of Hoistway & Rails in
     very tall structures




                                            Real Estate Associate Program
  Hydraulic Elevators
Guide Rails –
For all cabs
                                Cab


                Pumps, valves controller
                below grade in pit


         Spring Buffers

                                      Oil Reservoir

                   Solid piston: rides up and
                   down in shaft drilled below
                   grade


                                           Real Estate Associate Program
Hydraulic Elevators
 Principle:
    Oil pumped in and out of shaft to
     move piston & cab
 Economical:
    Simple Concept
    Lowest $ construction cost
     maintenance expense
 Limiting Factors:
    Slow Moving, 50-200 ft./min.
    6 or 7-story Maximum




                                         Real Estate Associate Program
Measures
Qualitative Measures:                 Quantitative Measures:
 Objective: To maximize comfort       Objective: To minimize total trip
  and ease of use                       time, including waiting
    Opening Size (3'6")                    Average Waiting Time
    Ride Quality                           Interval
    Service Contract/Maintenance           Handling Capacity
    Interfloor Traffic                     Average Trip Time
    Lobby Configurations
    Dispatch Controls/Technology
    Cab Finish
    Security - Card Key, Cameras
     Communications
    Lighting



                                    Real Estate Associate Program
Elevator Service Quality

 Minimum Waiting Time at Any Level
 Comfortable Acceleration
 Rapid Transportation
 Smooth and Rapid Retardation
 Automatic Leveling at Landings
 Rapid Loading and Unloading
 Good Visual Floor Indication
 Clean, Comfortable, Well Lit Cabs



                              Real Estate Associate Program
Elevator Modernization
New Technology:
 Destination Dispatch System vs. 2
  Button System
      Less Waiting Time
      Less Travel Time
      Less Overcrowding
      Security Features
      State of the Art Technology




                                     Real Estate Associate Program
Modernization Process

 Multiple Cars Taken Out of Service at a Time
 Construction Time – 8 to 10 Weeks per Car
 Cost - $125,000 to $150,000 per Car
 Cab Upgrades




                                Real Estate Associate Program
Decision Factors

 Age of Equipment
 Tenant Complaints
 Liability – Entrapments
 Asset Hold Period
 Competitive Disadvantage
 Cost




                             Real Estate Associate Program
Other Considerations

 Cost
 Hi-Rise Elevator Bank
 Cafeteria
 Visitors
 Proprietary Technology




                           Real Estate Associate Program
Building System Basics




                   Electrical




                         Real Estate Associate Program
 Electrical
 Design Considerations
   Design for tenant’s current and future power requirements
   Tenants with critical systems want redundancy
   Design to meet base building power requirements
 Power Requirements:
   Office tenant power requirements result from:
      Lighting: incandescent, fluorescent, decorative
      Office equipment: copiers, computers, coffee makers
      Miscellaneous
   Typical office lease space requirement - 6 watts/sf exclusive of HVAC. Typical
    usage <2 watts/sf
   Base building requirements result from HVAC systems, elevators, common
    area lighting, life safety systems


                                      Real Estate Associate Program
 Requirements – Data Centers
 HVAC
    70-150sf/ton is possible
    Supplemental cooling
 Electrical
    50 to 300W/sf
    Standby generator or place to put a generator
    Raised floor for cabling


NOTE: More Equipment = More Power = More Cooling




                                      Real Estate Associate Program
Typical Service Path: Office Building
                                   Pumps         Fans       Controls        Motor Control
                                                                               Center

    Chillers                                                                  M
                                                                               277/480 V panel
                                                                                   (lighting)
                                                                               120/208 V panel
  Selected                                                  480/120 V
                                                                               (outlets, equip.)
 Emergency                                                 Transformer
                                                                               with transformer
   Loads




                                                                                277/480 V, 3 ph, 4 W
 Emergency                                                                         Main Riser(s)
  Power
   Riser                                                                          Base Building
                                                                                      Riser
  Emer. Panel                                                                   13.2 kv/480V
                                             M                                  Transformer
Transfer Switch                                                M
Emergency                                                                          On Site
                                                                                         to utility
Generator                                        Real Estate Associate Program
                                                                         Main Service
                  Main Building Switchgear              277/480V, 3ph, 4W             Lines 13.2 kv
 Quantity
 How much power is enough?
   Class A building provides 6W/sf or more for tenant use
   Data centers, switch hotels, co-location facilities need 50-300W/sf
   more equipment = more power




                                      Real Estate Associate Program
 Standby Power
 Uninterruptible power supply (UPS)
    Bank of batteries that “instantaneously”
     switch on when the utility fails
    - Wet vs. Gel cell battery technology
    Limited amount of power, requires generator
     to operate for extended periods of time
    Smoothes out the electrical current
 Automatic transfer switches (ATS)
    Automatically transfer power supply from
     the utility to the emergency/standby
     generator
 Standby (not emergency) generators
    Supply power when the utility “fails”
    Can take up to one minute to get started




                                                Real Estate Associate Program
UPS

       Wet Cell – 15-20 year life span




      Dry Cell – Usually 5 year life span




                      Real Estate Associate Program
 Emergency Generators
What Does the Emergency Generator Do?
 Emergency Generators:                      Standby Generators:
   The main source of electrical power         Provides a redundant source of
    during an outage                             electrical power for tenants
   Backup power for your life safety           Back up power for all designated
    loads.                                       critical loads. Redundancy.




                                          Real Estate Associate Program
 What makes up a Generator Set?

                           Engine           Control Panel




                                                            Generator




3500 Series Diesel shown
                                             SR4-B Shown


                                    Real Estate Associate Program
Critical Electric Infrastructure
Engine to Generator Relationship.
   The engine produces Rotational Torque measured in HP
   The Generator utilizes this rotational torque and produces Electricity.
   1 HP= 746 Watts
   Nameplate Watts= Volts x Amps x 1.732 x .8 PF
   The Engine Capacity is limited by it’s HP Rating
   The Generators capacity limit is it’s AMP rating determined by the size
    and number of winding wires.




                                             Real Estate Associate Program
Types of Building Load


 Life Safety:                    Critical Load:
      Fire Pumps                    Data Centers
      Smoke and Fire Alarms         Cooling Towers
      Emergency Elevators
      Emergency Lighting         Non Critical Load:
                                     Normal Lighting
                                     Non emergency outlets




                               Real Estate Associate Program
Critical Electric Infrastructure




                          Real Estate Associate Program
Maintenance

Electrical Maintenance
 Switchgear maintenance
 Electrical panel maintenance
    Thermo-graphic (Infra-red) photography
Generator Maintenance
 Diesel engine testing – Monthly
 Generator testing – Monthly
 Transfer switch testing – Semi-Annually




                                    Real Estate Associate Program
    Managing Electrical Costs
    Demand costs are frequently higher during certain times of the day.
         Time-of-Day Profile:
         Off-peak cost = 495 x $5.00 = $2,475.00
         On-peak cost = 888 x $17.00 = $15,096.00
         Total = $17,531.00


                                                         on-peak
                                                         maximum
                        off-peak
                                                          888 kw
          800           maximum
          700            495 kw
          600
kw        500
          400
          300
          200
          100
                 6 am      noon      6 pm     midnight    6 am


                                            Real Estate Associate Program
Building System Basics




                  Plumbing




                         Real Estate Associate Program
Plumbing
Types of Piping
 Chilled Water
 Condenser Water
 Domestic Water
 Fire Service
 Sprinklers
Issues
 Velocity – Pressure Reducing
  Valves
 Corrosion – Water Treatment
 Construction – Contractors
 Freeze Ups

                                 Real Estate Associate Program
Plumbing
Floods
 Tenant Damage
 Building Damage
 Liability – Gross Negligence
 Mold Issues
Prevention
 Training
 Preventive Maintenance
 Tenant Service Contracts
 Water Treatment
 24/7 Manned Building

                                 Real Estate Associate Program
Building System Basics




              Fire & Life Safety




                         Real Estate Associate Program
 Fire & Life Safety

 What are the responsibilities of the property managers and
  Landlords in the event of an emergency in an office building?
 Requirements of law, technology, application.
 Fire, Terror Attacks, Blackouts, Disasters.




                                Real Estate Associate Program
    Vocabulary


Class E system                       Evacutrac
FSD (Fire Safety Director)           Smoke Detector
EAP (Emergency Action Plan)          Duct Detector
Stand Pipe                           Fire Warden
Sprinklers                           Deputy Fire Warden
Speaker/Strobe                       Searcher
Pull Station                         DGP
Warden Phone                         Evacuation
Automatic Electronic                 Shelter in Place
Defibrillator (AED)




                              Real Estate Associate Program
Fire & Life Safety Components

       Fire Alarm
                                Local Law 5 & 26
        Systems
                      Drills




                                 Life Safety &
                                  Evacuation
       Prevention   Emergency        Tools
                      Action
                      Plans




                        Real Estate Associate Program
 Local Law 5 & 26
 Local Law 5                           Local Law 26
   Enacted in 1973                       Will be enacted in 2006
   Deals only with Fire Emergencies      Deals with Other Emergencies:
      Protection                              Blackouts
      Prevention                              Bio Hazards
   Requirements:                              Nuclear Emergencies
        Fire Safety Plans                     Terror Attacks
        Fire Alarm Systems                    Tsunamis
        Signage                          Requirements:
        Safety Equipment                    Photo-Luminiscent Markings
                                             Emergency Action Plans
                                             Tenant Training




                                   Real Estate Associate Program
 Fire Alarm System

 Class E System
    Alarm System
    Communication system
    Monitors Fire, Smoke, Sprinkler, Pull Stations, Elevator
 Heat activates sprinkler
      Flow Switch notifies Fire Command Station (FCS):
      FCS notifies FDNY, shuts down recalls elevators activates speaker /strobes
      Operations team investigates, announcements made.
      Tenants evacuate




                                       Real Estate Associate Program
Anatomy of a Fire Alarm

                  Sprinklers Trip in Mechanical Room
                  Fire Command is Activated
                  Elevators are recalled to the 1st floor
                  Strobes are activated on the affected floor as well as the
                  floor above
                  Personnel are notified
                  Fire Department is alerted and dispatched to building
                  Building Personnel investigate Situation
                  Fire Safety Teams evacuate each floor


Fire Command


                         Real Estate Associate Program
 Life Safety & Evacuation Tools

 AED (Automatic Electronic Defibrillator)
 Evacutrac (emergency evacuation chair)
 CPR Training
 Emergency Life/ Safety generator
 Database identifying tenants
  with special needs




                                Real Estate Associate Program
 Summary

 Fire Prevention and Life Safety impacts everyone.
 Proper procedures and good implementation can affect thousands
  of lives, as well as save millions of dollars.
 Drills, Drills, Drills




                              Real Estate Associate Program
 Where to Get More Information

 NYC.GOV
 NFPA (National Fire Prevention Association)
 Fire Department of New York




                               Real Estate Associate Program
Building System Basics




            Telecommunications




                         Real Estate Associate Program
Telecommunications
Tenant Telecommunication Needs:
 Voice transmission (voice, fax)
 Data transmission
    Fiber-optic service
    Broadband service
 Redundancy
    Multiple service providers
        Verizon, MCI, MFS, Cogent, satellite or
         microwave service




                                              Real Estate Associate Program
Building System Basics




        Structural/Building Envelope




                         Real Estate Associate Program
Structural/Building Envelope

 Facades – Plazas
 Local Law II – 5 Year Cycles
 Classifications
 Repairs




                                 Real Estate Associate Program
Structural/Building Envelope
Facades
 What are Façade Ordinances?
 What governs façade repairs?
 Inspection Requirements by NYC
 Common Symptoms and their Underlying Causes
 Temporary Stabilization
 Permanent Repair




                            Real Estate Associate Program
Structural/Building Envelope
Façade Ordinances
 Local Laws 10/80 and 11/98
      Created for the protection of the public
      Requires inspection and certification by an engineer every 5 years.
      Repairs of any unsafe conditions identified by engineer must be made and filed
       with the city.
      There is no requirement for the repairs to be made in a manner consistent with the
       architecture of the property.
 Landmark Designation
      A property may be designated a Landmark on a Federal Level or by the city
      Any repairs made to a designated property must will be required to conform to
       Landmark guidelines
      Landmark properties undergoing façade repairs will incur greater costs
      Landmark designation is not always a bad thing.



                                        Real Estate Associate Program
A Cautionary Tale: Penn Station




                   1932
                   1963



                       Real Estate Associate Program
Survey of Various Façade Ordinances
     Chicago:
     Year Enacted: 1996
     Code: Municipal Code of Chicago
     Section: 13-196-31 through 13-196-037




        Detroit:
        Year Enacted: 1988
        Code: Detroit City Boca Bldg Code
        Section: Ordinance 15-88,Sect. 12-11-7.3
                                                                                 Boston:
                                                                                 Year Enacted: 1995
                                                                                 Code: Spplmt to MA State Bldg Code
                                                                                 Section: 9.9-12




 Columbus:
 Year Enacted: 1985                                   New York:
 Code: Bldg Code of the City of Columbus              Year Enacted: 1980
 Section: Ordinance 1296-85, Section 4109.073         Code: Bldg Code of the City of New York
                                                      Section: LL 11 & LL 10 27-129



                                                   Real Estate Associate Program
  Structural/Building Envelope
  How Did We Get Here? A Look at the Headlines:
             New Cracks Halt Cars Again on Madison Avenue
                      New York Times, Woman
        Loop Building Tile Falls, Kills December 15, 1997
             On December 7, 1997, approximately one
          Chicago Tribune, October, 23, 1974tone of brick fell from the
               rd  th
                  33 , 34 and 35t floor of 540 Madison Avenue in New York City. This
    (On October 22, 1974, Eugenia Hrones died, she was 48 years
                  event led to New York City’s revised façade ordinance known as Local
    old. This event led to the passage of the original facad
                  Law 11 Fatally Injures
Falling Masonry of 1998ordinance was Barnard Student
    ordinance in Chicago. The
                                  (LL 11/98)
                                                 later repealed on a
               New York Times, May 17, 1979
    technicality.
On May 16, 1979, Grace Gold died, she was 18 years old. This event
               Building Corner ordinance, Local Law 10 of
led to New York City’s original façadeFalls 5 stories, Injures 4 People
1980 (LL 10/80)           Cincinnati Enquirer, June 29, 1984
           On June 28, 1984, City Councilman, Ben Espy lost par of his leg whan a
           cornice fell on him. This event led to Columbus’s façade ordinance also
           known as the Espy Law.



                                         Real Estate Associate Program
Structural/Building Envelope
Façade Inspections
 Inspections can be performed
  in several ways
   Visual with binoculars and
    cameras
   Drops with the use of rigs
   Scaffolding
   Swing stages
   Destructive by removing stone
    and making penetrations.




                                    Real Estate Associate Program
Structural/Building Envelope

Common Symptoms:
 Spalling concrete
 Loose or deteriorated
  caulking and joints
 Loose brick/stone
 Rusted steel
 Cracks
Common Causes
 Water infiltration
 Poor workmanship
 Age


                          Real Estate Associate Program
Structural/Building Envelope
Temporary
   Shoring
   Straps
   Bracing


Permanent
   Bricks
   Steel
   Fiberglass
   GFRC ( Glass Fiber
    Reinforced Concrete)
   Coatings


                           Real Estate Associate Program
10 Minute Intermission
Section II: The Building Business
The Building Business




                   Revenue




                        Real Estate Associate Program
Revenue

 Owners are in cash flow business, not the real estate business
 Contract rents
    Office base rent
    Retail minimum rent and percentage rent
    Storage rent




                                    Real Estate Associate Program
Escalations


Cost pass-through’s
   Real estate tax escalations
   Operating expenses escalations
      Direct operating expenses
      Porters wage escalations
         Without Fringe Benefits
         With Fringe Benefits




                                     Real Estate Associate Program
Tenant Electric Revenue

 Direct meter
 Sub-meter – administrative fee
 Rent inclusion
    Subject to annual or periodic surveys




                                      Real Estate Associate Program
Tenant Service Revenue

 Excellent Source of Revenue for Building Owners
   Extra Cleaning – The more tenants spend, the happier they will be with their
    space. Higher tenant satisfaction.
   Overtime HVAC
   Freight Elevator Service
   Condenser Water




                                     Real Estate Associate Program
The Building Business




             Leasing Strategies




                        Real Estate Associate Program
Renewal vs. New Tenants

 No Downtime
 Less Concessions
 Less Marketing Cost
 Less Legal Cost
 Less Commissions
 Known Entity
 Captive Tenant




                        Real Estate Associate Program
Leasing Considerations

 Managing Lease Expirations
 Recapture Opportunities
 Encumberances
 Market Cycle
 Cash Flow




                               Real Estate Associate Program
Marketing

 Leasing Specialist
 Pre-Build Strategy vs. Marketing “As Is”
 Preparing Space
 Pricing
 Competitive Advantages




                                 Real Estate Associate Program
Value Creation Opportunities

 Recapturing Space
 Finding New Space
 Re-measuring Space
 Tenant Mix
 Repositioning the Asset




                            Real Estate Associate Program
The Building Business




             Operating Expenses




                        Real Estate Associate Program
Operating Expenses
The Six Largest Operating Expenses are:
     Repairs &
                              The Rest
    Maintenance

   Security
                                                      Real Estate
   Cleaning                                             Taxes



    Personnel


                                          Utilities


                            Real Estate Associate Program
Utilities


 Purchasing
 Energy Saving initiatives
 Incentives




                              Real Estate Associate Program
Purchasing

 Deregulation
 Public Utility
 ESCO (Energy Service Company
 Bulk




                           Real Estate Associate Program
Energy Saving Initiatives

 Sub-Metering
 Lighting Management
 Load Shedding
 Benchmarking
 Window treatment
 VFD (Variable Frequency Drives)
 Thermal Pane Windows




                              Real Estate Associate Program
Incentives

NYSERDA (New York State Energy Authority)
LMIP ( Lower Manhattan Energy Program)
Con Edison




                             Real Estate Associate Program
Personnel - Staffing

 Management Office
 Technical Staff




                       Real Estate Associate Program
Staffing the Management Office

 Managers
    Business orientation, real estate savvy
    Able to add value to the property
 Accountants
    Sarbanes –Oxley compliance
    Lease Audits
 Tenant Services and Administration
    Tenant Services Revenue and contract administration




                                     Real Estate Associate Program
Engineering/Technical Staff

 Smaller Buildings - Handymen - one per 75,000 sf
 Larger Buildings - Engineers - one per 100,000 sf
    Repairs
    Preventive maintenance
    Energy management




                                Real Estate Associate Program
Cleaning
Why is Cleaning So Important?
 Largest Building Expense
 Source of Tenant Dissatisfaction
 Valuable Team Members
 Revenue Opportunities




                                Real Estate Associate Program
Cleaning
Scope of Work
 Office Cleaning
 Common Area Cleaning
 Bathrooms
 Floor Cleaning
 Day Cleaning
 Window Cleaning
 Exterminating




                         Real Estate Associate Program
Cleaning
Staffing
 Day Supervisor
 Day Matrons
 Day Porters
 Night Supervisors
 Night Matrons
 Utility Cleaners
 Bathroom Cleaners
 Trash Removal




                      Real Estate Associate Program
Cleaning
Cleaning Issues
 Third Party vs. In-House Cleaning
 Supervision
 Resources of Contractor
 Tenant Sales
 Building Knowledge




                                Real Estate Associate Program
Cleaning
Re-Bidding Contract
 Staffing
 Discounts
 Revenue Sharing
 Reputation




                      Real Estate Associate Program
Security

   Life after 9/11
   Staffing
   Building Requirements
   Security Devices
   Threat Levels
   Training
   Emergency Plans
   Marketing
   Agencies



                            Real Estate Associate Program
Security

 Provides tenants with a sense of safety
 Inconvenient
 Deters petty criminals
 Enhances building appeal
 Reduces liability




                                Real Estate Associate Program
Life after 9/11/2001

 Property Managers have a responsibility to the tenants and the
  public
 Tenants are much more security conscious.
 Landlords and managers need to be prepared for more than routine
  emergencies.
 Budgets for security costs are much more significant
 Security technology has advanced significantly
 Laws have changed to adapt to new threats.




                               Real Estate Associate Program
Life after 9/11/2001

 Tenants are much more security conscious
 Landlords and managers need to be prepared for more than typical
  emergencies.
 Budgets for security costs are much more significant
 Security technology has advanced
 Laws have changed to adapt to new threats.




                               Real Estate Associate Program
Staffing

 Guards
     Training
     Fire Safety Directors
     Supervision
     Education
     Excellent Communication Skills
     Union or Non Union
     Increased coverage




                                       Real Estate Associate Program
Building Requirements

 Is the property itself a high profile target?
       Landmark
       Government Building
       Financial Institution
 Are there tenants in the building that are potential targets?
 Is the property in a geographic location that increases the property
  threat level?
 What are the building operating hours?
 Does the Homeland Security Level affect building security?



                                   Real Estate Associate Program
Security Devices

   Tenant Database                     Dogs
   Visitor database or log book        Life Safety Generators
   Proximity readers                   Metal detectors
   Bar code readers                    Bomb Detectors
   Tenant Identification cards         Barriers/Bollards
   Photo ID                            Bio Metric Readers
   Key Pads                            Retinal Scan
   Video Surveillance                  Facial Recognition
   Digital Recording                   Internet
   X-ray machines                      Message Centers
   Turnstiles                          Gates
   Cable TV                            Magnetic Locks
   Analog Phones                       Cell Phones
                                        Radios


                                   Real Estate Associate Program
Threat Levels

 Threats
     Bomb threat
     Homeland Security Threat Level (www.dhs.gov)
     Disgruntled Employee
     Domestic dispute
     Natural Disaster




                                    Real Estate Associate Program
Training

Who needs training?
     Managers
     Guards
     Cleaning Personnel
     Tenants
     General Public
     Everybody else




                           Real Estate Associate Program
Emergency Plans

Local Law 26
      Requires the preparation of an Emergency Action Plan (EAP)
      Requires an EAP coordinator
      Requires Diagrams showing building systems
      Requires tenant training

Other plans include
    Evacuation drills
    Shelter in place
    Material Safety Data Sheets (MSDS)



                                      Real Estate Associate Program
Marketing

Properly executed and well thought out security measures provide
  many benefits :
      Comfort to the occupants of the property
      Makes the asset more desirable to potential tenants
      Reduces risk




                                       Real Estate Associate Program
Agencies

In order to be effective in our role in providing security we must be well
  informed. The following agencies are essential to our effectiveness.
 DHS (Department of Homeland Security) ( www.DHS.Gov )
 OEM (Office of Emergency Management) ( www.NYC.Gov )
 FEMA (Federal Emergency Management Agency) (
  www.FEMA.Gov )
 REBNY (Real Estate Board of New York) (www.REBNY.com)
 BOMA (Building Owners Managers Association) ( www.BOMA.org )




                                  Real Estate Associate Program
 Repairs & Maintenance

 Managers and engineers have to collaborate to figure out the best
  approach to solving problems. You have to look at all of the
  alternatives
 Operating expense or capital expense. Operating expenses are
  better.
 In-house staff vs. third-party contracts. In-house is usually cheaper.
 Repairs – reactive approach
 Preventive/predictive maintenance
 Building code and regulatory compliance



                                 Real Estate Associate Program
The Building Business




             Capital Investments




                        Real Estate Associate Program
 Capital Investments

 Life-cycle replacements
 Strategic investments
   Repositioning properties. Updating lobbies, security, elevator cabs. Image
    issues.
   Improving building infrastructure. HVAC upgrades, additional electrical power,
    back-up power.
   Enhancing building value and marketability. The name of the game is tenant
    retention and higher rents
   $1 to keep a tenant vs. $7 to bring in a new one




                                     Real Estate Associate Program
Section III: Case Studies
Case Studies




         Energy Cost Reductions




                  Real Estate Associate Program
Energy Cost Reductions

            320 Park Avenue
            Relatively new building, completely reconstructed in 1994
            Task was to improve energy efficiency at the property.

            Objectives
            Develop and implemented an Energy Management Program
            Perform an upgrade of the building’s BMS system
            Install VFD’s on all HVAC pumps and fans
            Lighting retrofit in all common areas
            Results
            Energy Star designation from 2002 through 2004
            Total energy savings estimated at $327,000 per year
            Received BOMA Pinnacle Award for Operating Building of the Year in
            2003

                              Real Estate Associate Program
Case Studies




      Security & Aesthetic Upgrades




                   Real Estate Associate Program
Security & Aesthetic Upgrades

             2 Park Avenue
             28-story building constructed in 1927. Lower façade was dated.
             Upper façade was in need of structural repairs.

             Objectives
             Complete extensive design phase for lower facade, lobby, security
             system and elevator cab renovations,
             Complete LL 11 inspection and design development from 19th to 29th
             floors.
             Results
             Renovations expected to be competed by May 2006 & will include all
             new retail storefronts, sidewalk, lobby security desk, turnstiles, security
             cameras, and elevator cabs.
             Extensive renovation of the upper façade, is ahead of schedule and
             below budget for completion by January 2006.


                                 Real Estate Associate Program
Case Studies




     Repositioning a Property in the
              Market Place




                   Real Estate Associate Program
Repositioning a Building in the Market Place

             1285 Avenue of the Americas
             The building systems were approaching the end of their useful life
             and/or were no longer performing up to Class “A” standards.
             The three major tenants of the building, representing 90 percent of the
             property, had lease expirations between 2000 and 2002
             Objectives
             Modernize every major component of the building’s electrical, elevator,
             HVAC, plumbing and life safety systems
             Launch a proactive tenant relations program
             Results
             Renewed several leases, brought new tenants into the building and
             greatly improved tenant satisfaction.
             Vastly improved building infrastructure. Reduced operating expenses
             by nearly $1 per rentable square foot in a porters wage building.


                                Real Estate Associate Program
Case Studies




      Renovations of Base Building
               Systems




                  Real Estate Associate Program
Renovations of Base Building Systems
            370 Lexington Avenue
            HVAC central plant was barely functional resulting in high costs and low
            tenant satisfaction.
            Electric utility costs were high and the building steam piping & A/C system
            was poorly maintained.

            Objectives
            Install new cooling tower, condenser water pumps and condenser water
            riser system. Project budget of $2.2 million.
            Enter into an electric supply contract with an energy service co. (ESCO)
            Conduct a thorough inspection & repair program of the steam supply
            system.
            Trade HVAC maintenance contract for in-house maintenance.

            Results
            Reduced Electrical expense by $100,000, Steam by $50,000,HVAC
            Maintenance by $50,000 per year


                                 Real Estate Associate Program

				
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