The First Facility Management Blog

The Internal Revenue Service (IRS) has announced certification requirements an owner must satisfy to take advantage of “energy-efficient commercial building property” tax incentives. The requirements are included in IRS Notice 2006-52, an “interim guidance” document available from the Web site of the National Lighting Bureau.

According to National Lighting Bureau Communications Director John P. Bachner, “The new IRS guidance requires a qualified individual to attest to a given system’s energy efficiency. Qualified individuals are licensed engineers and contractors who believe they have the necessary competence to make the evaluations involved. We suspect that additional guidance will be forthcoming to clarify some of the questions that Notice 2006-52 has raised. In the meantime, the Bureau is launching a nationwide effort to identify qualified individuals, so we can list them on our Web site.”

Congress created the tax incentives – Section 1331 of the Energy Policy Act of 2005 – to encourage building owners to invest in energy efficient commercial building property that is:
1. Installed on or in any building located in the United States that is within the scope of Standard 90.1-2001, Energy Standard for Buildings Except Low-Rise Residential Buildings, of the American Society of Heating, Refrigerating, and Air-conditioning Engineers (ASHRAE) and the Illuminating Engineering Society of North America (IESNA);
2. Installed as part of (i) the interior lighting systems, (ii) the heating, ventilation, air-conditioning (HVAC) and hot water (HW) systems, or (iii) the building envelope; and
3. Certified as being installed as part of a plan designed to reduce the total annual energy and power costs of the building’s interior lighting, HVAC, and hot water systems by 50% or more when compared to a reference building that meets the minimum requirements of Standard 90.1-2001.

The incentives take the form of an accelerated depreciation deduction for (typically) a portion of a system’s cost. Owners that achieve the 50% target for the interior lighting system, HVAC/HW system, and the building envelope would be eligible for a benefit equal to the actual cost of the improvements or $1.80 per square foot of the property for which the expenditures were made, whichever is less. Owners would have to demonstrate compliance using an approved computer program.

Owners do not have to upgrade all three systems to enjoy tax benefits. They can opt to improve the interior lighting, or the HVAC and hot water systems, or the building envelope. “Lighting is the easiest to improve,” Bachner said, “because of the wide array of equipment and design techniques available. It can also be relatively easy to calculate the energy savings to be achieved by any given interior lighting upgrade.” According to Bachner, the tax incentives apply to most interior lighting systems whose power density is at least 25% less than minimum requirements set forth in Standard 90.1-2001. Owners can deduct as much as $0.60 per square foot or the actual cost of the upgrade, whichever is less, when the system’s lighting power density is 40% less than Standard 90.1-2001’s minimum requirements.

For the deduction to be legitimate, the lighting system must be certified by “a qualified individual,” someone whom the IRS defines as a licensed engineer or contractor who “has represented to the taxpayer that he or she has the requisite qualifications to provide the certification required” and/or to perform the inspection and testing that is also mandated.

The “qualified individual” can assess compliance either by using computer software or – as will more likely be the case – by relying on the prescriptive method included in Section 2.03(1)(b) of Notice 2006-52. Using the latter approach, a “qualified individual” would certify that the new lighting:
• achieves a lighting power density reduction of at least 25% (50% for warehouses) of the minimum requirements in Table 9.3.1.1 or Table 9.3.1.2 (not including additional interior lighting power allowances) of Standard 90.1-2001;
• has controls and circuiting that comply with the mandatory and prescriptive requirements of Standard 90.1-2001;
• includes a provision for bi-level switching in all occupancies except hotel and motel guest rooms, store rooms, restrooms, and public lobbies; and
• meets minimum requirements for calculated lighting levels set for in the IESNA Lighting Handbook, Performance and Application, Ninth Edition, 2000.

IRS Notice 2006-52 contains more information about interior lighting and other systems eligible for tax incentives. The National Lighting Bureau has also prepared a brochure providing additional information about the Energy Policy Act of 2005. The brochure, as well as the IRS notice, is available for free download at www.nlb.org or by contacting the National Lighting Bureau by telephone (301/587-9572) or e-mail (info@nlb.org).

Last month, the commercial real estate industry honored 15 North American commercial properties with The Office Building of the Year (TOBY) Award at the Building Owners and Managers Association (BOMA) International North American Commercial Real Estate Congress® and The Office Building Show held recently in Dallas, TX.

The TOBY winners were recognized for excellence in office building management and operations in specific categories of building size or type. To win the international award, the office buildings first won both local and regional competitions. Judging was based on community impact, tenant/employee relations programs, energy management systems, accessibility for disabled people, emergency evacuation procedures, building personnel training programs, and overall quality indicators. A team of expert industry professionals also conducted a comprehensive building inspection.

The winners of the 2005-2006 TOBY Awards in 14 categories and The Earth Award:
• In the Renovated Building category, the winner is 500 Jefferson, Houston, TX, submitted by Darrel Holub. The property is managed and owned by Trizec Properties.
• In the Historical Building category, the winner is LaSalle Bank Building, Chicago, IL, submitted by Julie A. Nowak. The property management company is Jones Lang LaSalle Americas (Illinois), and the owner is LaSalle Bank.
• In the Corporate Facility category, the winner is American Express Desert Ridge, Phoenix, AZ, submitted by Barbara Wodrich, RPA, FMA. The property management company is Trammell Crow Company, and the owner is American Express.
• In the Medical Office Building category, the winner is 1101 Madison Tower, Seattle, WA, submitted by Lori Granberg. The property management company is Trammell Crow Company, and the owner is Health Care Property Investors, Inc.
• In the Government Building category, the winner is United States Courthouse, Fort Myers, FL, submitted by Lacey Willard, RPA. The property management company is the United States General Services Administration, and the owner is the United States Government.
• In the Suburban Office Park Low-Rise category, the winner is Cumberland Metro Office Park, Chicago, IL, submitted by Marie T. Croce. The property management company is CB Richard Ellis, Inc. and the owner is State of Hawaii Employee Retirement System.
• In the Suburban Office Park Mid-Rise category, the winner is Corporate Centre of Cool Springs, Franklin, TN, submitted by Crystal Waller. The property management company is Crescent Resources, a subsidiary of Duke Energy, and the owner is
Corporate Centre Acquisition Company.
• In the Industrial Office Park category, the winner is Crystal Park Industrial Complex, Round Rock, TX, submitted by Don Roberts. The property management company is Opus West Management Corporation, and the owner is Opus Real Estate Texas, VI, LP.
• In the buildings Under 100,000 Square Feet category, the winner is 31 Inverness Center, Birmingham, AL, submitted by Betty A. Swann, RPA. The property management company is Cousins Properties Services, and the owner is Teachers Insurance and Annuity Association.
• In the 100,000 to 249,999 Square Feet category, the winner is the Grand Avenue Courtyard, El Segundo, CA, submitted by Christine Oritz. The property management company is Lowe Enterprise Real Estate Group, and the owner is Commonwealth Grand Avenue Corporation.
• In the 250,000 to 499,999 Square Feet category, the winner is Hazard Center Office Tower, San Diego, CA, submitted by Lisa M. Gualco, RPA, FMA. The building is managed by PM Realty Group, and the owner is 7510 Hazard, LLC.
• In the 250,000 to 499,999 Square Feet category, a Distinguished Entry Award goes to Tower 42, London, United Kingdom, submitted by Peter Merrett. The building is managed by Greycoat Estates and Atisreal, and the owner is Tower Limited Partnership, a consortium comprising Merrill Lynch Investment Managers and Hermes Real Estate Limited.
• In the 500,000 to One Million Square Feet category, the winner is One BriarLake Plaza, Houston, TX, submitted by Lizabeth Green. The building is managed by Crescent Property Services, and the owner is Crescent One BriarLake Plaza, LP.
• In the Over One Million Square Feet category, the winner is Marathon Oil Tower, Houston, TX, submitted by Mark R. Nicholson. The building is managed by Cushman & Wakefield, and the owner is Tower Associates.
• Denver Place Wins The Earth Award
The Earth Award was presented to Denver Place, Denver, CO, submitted by Lori Carter, RPA. The building is managed by Amerimar Realty Management Company, and the owner is Denver Place Associates, LP. The Earth Award recognizes excellence in environmentally responsible building operations and management—entries are judged on everything from indoor air quality to green purchasing policies.

The TOBY Awards are sponsored by Securitas Security Services USA.

Facility managers know that the cleanliness of their buildings has a big impact on visitors’ first impressions of the organization. With the volume of traffic that many airports cater to each and every day, putting the best foot forward in maintenance can literally be a neverending job. Daniel Yee of the Associated Press has reported on what is being done at several major airports around the country.

For TFM’s coverage of this and other airport management topics, read “Why Is Air Travel Like Facility Management?” by Tim Springer, Ph.D.

Yee writes:

Atlanta — A half year after Christmas, a small pile of crushed candy canes lie discarded at the base of escalators leading to the concourse trains at the airport that sees the most passengers in the world.

A long, unyielding stain from some harried traveler’s latte leaves a trail down the carpet in between concourses A and B at Hartsfield-Jackson Atlanta International Airport. A few decades’ worth of dents and scratches from rolling suitcases and baggage carts also line the walls of the 26-year-old airport’s halls.

With 86 million travelers passing through the airport each year, signs of dirt and disrepair can be found as frequently as the travel hub’s infamous weather delays.

As a result, airport general manager Ben DeCosta believes it’s time for a makeover and he has launched a campaign to keep his concourses looking new.

Across the U.S., other airports constantly struggle with the task of keeping their terminals clean, especially during the summer months, which they say are the busiest of the year. Airport officials say they are always challenged with the task of keeping clean nearly constantly crowded bathrooms and food courts, which quickly accumulate trash.

Clean restrooms “are a huge deal for airports because after you’ve been on a plane for four or five hours, maybe you don’t want to use the restroom on a plane,” said Bob Parker, spokesman for the Seattle-Tacoma International Airport.

A dirty airport “adds to the frustration overall of having to travel too much for work,” said Michelle Johnston, 30, a consultant from New York, after arriving to the Atlanta airport.

DeCosta’s push at the Atlanta airport came after he toured some of Asia’s newest airports last year and returned surprised, finding trash on Hartsfield-Jackson’s concourse floors and scuff marks on walls. He started his airport’s makeover campaign in March.

“Hartsfield-Jackson is a pretty clean airport … but when you compare the airport — which has many more people who use it — with these other places, you see the difference,” he said. “During the peak times here you can see garbage cans are full, sometimes trash is spilling over. I never saw that once in Asia. The carpet here is old and sometimes it’s not as clean as I think it should be.”

The state of cleanliness at the Atlanta airport has been an issue with some travel experts, such as Terry Trippler of Cheapseats.com.

“It needs a good fire hose,” Trippler said. “Someone needs to go in there and wash it down. It needs to be cleaned up — it needs a facelift.”

Under the makeover, the airport’s carpets will be the first to go as all the concourses will have scuff-resistant tile floors by the end of December. Columns throughout the airport are being protected by steel or other sturdy materials so they won’t be susceptible to dents or dings, DeCosta said.

The makeover also will include public service announcements to encourage passengers to throw away trash and all employees will be asked to pick up any trash they find in hallways, even if it’s not their job, DeCosta said.

It will cost about $6 million for the new upgrades that include the new marble flooring and walling, new ceilings, windows and stainless steel column covers throughout the airport, spokeswoman Felicia Browder said. The airport spends $16 million yearly in cleaning costs.

Read the rest of the story…

In response to member and market demand, ASHRAE (American Society of Heating, Refrigerating and Air Conditioning Engineers) is exploring a certification program that will focus on areas of the building environment such as commissioning, health care facility engineering, building operation, and sustainability.

The Society is pursuing partnerships with other HVAC&R related organizations.

“By offering certification, ASHRAE will make our members more valuable to the industry,” said Terry Townsend, P.E., ASHRAE president. “Certification from ASHRAE will add professional credibility to their work, as well providing educational resources to better enable them in designing and operating buildings that are more efficient.”

A market research survey conducted by ASHRAE last year showed a strong interest by members in providing certification. More than 80% of members indicated that ASHRAE should offer certification to individuals who complete a series of courses/seminars in a specific area of study.

In support of certification, ASHRAE will expand its existing educational program, known as the ASHRAE Learning Institute. “The Learning Institute will continue to provide fundamental courses for those looking for lifelong learning and professional development,” Townsend said. “But we also must provide more specialty courses for those eager to keep up with the latest technology.”

The program is expected to launch in summer 2007.

In addition, ASHRAE is working make it easier for members to keep up with their current professional development hours to maintain existing professional registration.

“We are looking at tracking educational course attendance to qualify for professional development hours,” Townsend said. “We must make it as easy as possible for our members to educate themselves so they can get ahead in their careers.”

State and local governments have an excellent opportunity to help steer America toward clean, renewable energy by applying for purchasing assistance through the Responsible Purchasing Network. This initiative, launched by the non-profit Center for a New American Dream, has teamed up with Think Energy, Inc, to provide three jurisdictions with professional advice and assistance in making a large purchase of clean, renewable energy.

Shifting to clean power reduces dependence on fossil fuels, provides a solution to America’s energy crisis, and helps curb climate change. Committing to clean energy can also help jurisdictions reach greenhouse gas emission goals, and help fulfill Ambient Air Quality requirements.

“By establishing programs that reduce the use of energy generated with fossil fuels, jurisdictions are leading by example to influence larger markets and other institutions. We’re looking for a few governments willing to take the lead by shifting 25% of their portfolio to clean, renewable energy supplies. New technologies and existing incentives now make this practical,” says Chris O’Brien, Director of the Responsible Purchasing Network.

Selected state and local governments will receive a detailed evaluation of clean energy products available, including a review of costs and benefits, a look at case studies from other jurisdictions, and a practical timeline for concluding a purchase. Participating jurisdictions will also engage in direct consultations with the Responsible Purchasing Network and Think Energy.

Jurisdictions can apply by visiting the following link. To qualify, applicants must be a state or local government and represent a minimum of 1,000,000 kilowatt-hours of electrical energy use annually. Furthermore, they must have political support and an appropriate level of funding for purchasing clean energy. Qualified candidates will be chosen that represent a diversity of geographic locations, jurisdiction sizes, scales of purchase (total MWh), and desired types of renewable energy products.

The Conference Board is launching an expanded maturing workforce research initiative. The effort received generous support from the Atlantic Philanthropies USA, Inc., in the form of a three-year, $2 million grant to study the inclusion and engagement of late career workers in corporations and not-for-profit organizations.

The Conference Board will examine the practices and policies of major employers and business community leaders and related concerns and needs of today’s mature workforce. The Conference Board plans to share promising practices for creating and maintaining a workforce inclusive of all generations. Some 64 million baby boomers active in the U.S. labor force are poised to retire in large numbers by the end of this decade.

The maturing workforce initiative at The Conference Board will convene separate Research Working Groups on mature workforce issues in the private and not-for-profit sectors. Marketplace opportunities related to the aging U.S. population will also be addressed in research from the Consumer Research Center at The Conference Board.

The Conference Board work will look at mature workers in two distinct roles—as employees and as potential retirees. It will focus on problems facing mature workers, the costs and value of mature workers, the hidden values of their job satisfaction, the impact of rising healthcare costs on these workers, emerging opportunities from aging consumer markets, prospects for building a better intergenerational workplace, and models for retirement. It intends to create new strategies to help major employers leverage the skills of employees who are late into their careers. The initiative will also periodically issue timely briefings and updates.

The Conference Board took the lead in research on mature workers last year with the publication of Managing the Mature Workforce, a definitive study on how the role of the mature worker is rapidly changing in today’s workplace. The organization also published a short follow-up report (Age and Opportunity: Plan Strategically to Get the Most Out of a Maturing Workforce) in April which found that companies benefit by thinking of the issue of managing a maturing workforce as more than a negative (a problem to be dealt with). The companies who are succeeding in getting the most of older workers view the problem strategically as an opportunity for change within the organization.

The report advises that even the most basic HR strategy designed to deal with the challenges posed by a maturing workforce should include three goals: capture critical knowledge/expertise of retiring workers and transfer it; develop flexible work arrangements and benefits to suit needs of valued retirement-eligible employees; and create a culture welcoming to employees of all generations. The report also states that while 90% of survey participants in a pulse poll of The Conference Board Councils for Talent Management and Diversity executives said managing mature workers was either a very or fairly important business issue for them, only 55% had conducted a strategic workforce analysis to determine the profile of their employee populations.

Although the new products at Orgatec 2006 (October 24-28) are still a closely guarded secret in the design departments of major suppliers, it’s already clear that many of the office solutions on show in Cologne will highlight the increasingly interactive nature of the office as a center of communication in modern companies. These solutions combine the elements of furniture, lighting, flooring and noise management, create zones of interaction, and thereby confirm once again the long standing trend towards maximum flexibility and openness.

More and more companies today recognize the key role played by office design. It expresses a company’s values, outlook, and culture in a tangible way and communicates its corporate identity as a source of motivation for employees and a visible sign for business partners and the general public. Given such requirements, quality design is an absolute must in this field, and many companies are now looking for all embracing solutions for the office as a place to live and work.

As a genuinely social environment, the modern office should ideally fulfill the functions of communication, interaction, and concentration and provide a combination of facilities for sitting, standing, resting, eating, drinking, and working. In response, suppliers are now coming up with innovative office concepts in collaboration with customers, architects, ergonomics experts, consultants, and trend researchers. In addition to featuring quality design, flexibility and openness, today’s offices are also increasingly expected to facilitate workplace sharing.

Flexible buildings with room-in-room concepts
Today’s architecture regards a building as a multifunctional shell featuring a host of design possibilities within. Business owners are able to use such buildings in a flexible way, which in turn makes it economically more attractive to rent rather than buy a property.

The design specifications of the modern open office environment, with its need for mobile fixtures and readily accessible power and communications supplies, can often end up producing something very similar to the once popular open plan office. However, it is now widely recognized that the latter stifles productivity.

People who work in a classic open plan office tend to become less flexible and less creative. Noise and a lack of privacy are just two of the psychological factors that lead to a drop in performance.

On the other hand, project oriented teamwork in fluid groups is becoming an increasingly important part of office life. As a result, the number of employees who require a fixed workplace continues to fall. The need for streamlined processes, synergies, flexible working hours and adaptable workplaces therefore demands open and mobile office environments that avoid the disadvantages of classic open plan offices and lead to enhanced communication, interaction, and tangible cost benefits.

Flexible room-in-room systems
The room-in-room systems on show at Orgatec offer a viable approach here. Independently of the layout of the building, they can accommodate the specific organizational form favored by a company and flexibly adapt to any changes.

For example, cube shaped elements freely positioned within the open office space create—like a self-contained island—a room within a room for the purposes of concentration, communication, and regeneration. Such elements offer space for all the activities that cannot be well accommodated in open office environments. They can be used for private meetings or concentrated work away from the pressure of a team. In general, they provide space for individual work, rest and regeneration as well as for communication.

In the offices of the future, the importance of communication zones will undergo a radical reevaluation. In turn, a major part of office work will shift from fixed workplaces to variably used interactive areas. As the crystallization point of a company’s corporate identity and a nerve center for innovation, such zones require high quality fittings and design more than ever before.

Complete solutions with lighting, flooring, noise management, and consulting
Modern office environments create more room for greater output and performance. The integrated approach, which combines lighting, flooring, and noise management, marks a move away from pure product development and towards an interdisciplinary design platform generating complete solutions for modern office environments.

Today’s industry does much more than just supply office furniture; it advises customers and helps them solve their design problems. This includes comprehensive consulting and the ability to respond quickly and economically to specific customer wishes.

Office fitting and facility management
Working together with customers, office suppliers also develop ideas and solutions to make existing offices meet the added requirements of today’s business world. Following analysis of the organizational structure, processes and corporate culture of the client company, suppliers then develop new and efficient office concepts on the basis of the latest findings in the fields of ergonomics and facility management. Today the worlds of office fittings and facility management are moving ever closer together.

Showcasing new trends at Ultima Office
Providing a host of background information on all the latest developments in office work and design will be Ultima Office, the new creative heart of Orgatec 2006. The Dialogue zone, for example, will feature a series of talks, discussions, and workshops on all the major trends in the fields of office furnishings, lighting, flooring, and noise management. In addition,
Ultima Office will pick up on all the latest trends of 2006 and develop them into a powerful scenario to showcase a vision of life and work in the year 2030.

More than 800 exhibiting companies from around 40 countries are scheduled to attend Orgatec 2006. Products and services for the full office workflow—from planning and design all the way to management—will be on show.

The key target groups are architects, specialist retailers, ergonomics experts, real estate management companies, purchasers, and decision makers from industrial companies, representatives of public institutions and facilities, and commercial users. Around 55,000 trade visitors from 95 countries attended the last Orgatec in 2004, and almost half of all visitors came from abroad.

The U.S. Federal Regulatory Energy Commission has approved the North American Electric Reliability Council’s (NERC) application to become the Electric Reliability Organization (ERO) for the nation. As the ERO, NERC will have legal authority to enforce reliability standards on all owners, operators, and users of the bulk power system, rather than relying on voluntary compliance.

NERC is working to gain similar recognition by governmental authorities in Canada, including eight provinces and the National Energy Board, before the end of this year, and will seek recognition in Mexico once the necessary legislation is adopted there.

“We appreciate the faith and trust that the U.S. Congress, Federal Energy Regulatory Commission, and governmental authorities in Canada have in NERC,” said NERC chairman Richard Drouin. “Our mission–to improve the reliability and security of the bulk power system in the United States and Canada–will not change, but our ability to achieve that mission will increase greatly with the new authority to enforce compliance with industry reliability standards,” he said.

“Approving NERC as the electric reliability organization is the culmination of several years’ preparation, dedication, and cooperation among the participants in the bulk power industry, and the federal, state, and provincial governments. Now it’s up to all of us to make it work,” added Rick Sergel, NERC’s president and CEO.

The creation of an ERO is authorized under the U.S. Energy Policy Act of 2005, and was triggered in part by concerns generated by the August 2003 blackout that affected 40 million people in the midwestern and northeastern United States and 10 million people in eastern Canada.

NERC’s application explains how NERC meets all statutory and regulatory requirements set forth for the ERO in the Energy Policy Act, cites NERC’s qualifications to be a strong and effective ERO, and provides detailed plans for the ERO’s corporate structure, governance, bylaws, and procedures. It clearly defines the authorities and responsibilities of the ERO, the eight regional reliability councils, and the bulk power system owners, operators, and users that fall under the ERO’s jurisdiction.

The Commission’s approval included a number of conditions NERC will address in the next few months. “We have not had the opportunity to examine the details of the Commission’s order, but we have successfully dealt with every issue that has arisen so far. I am confident NERC will be able to address these remaining issues in a satisfactory manner,” said Sergel.

Established in 1968, NERC develops and enforces reliability standards; monitors the bulk power system; assesses future adequacy; audits owners, operators, and users for preparedness; and educates and trains industry personnel. NERC is a self-regulatory organization that relies on the diverse and collective expertise of industry participants. As the ERO, it will be subject to audit by the Federal Energy Regulatory Commission and governmental authorities in Canada.

WAGO Corporation is pleased to announce the launch of its mobile marketing program, also known as the “Innovation in Automation Tour.” The tour is set to start the first week in August, beginning in Wisconsin, and continuing on through the rest of North America.

“We understand it is increasingly more difficult for people to take time out of their busy schedules to visit a trade show,” said Dean Norton, marketing manager for WAGO Corporation. “The dilemma is then, how both OEMs and end users stay on top of the latest automation technology to keep their company competitive.”

The answer? Bring the trade show to the customer.

The “Innovation in Automation” tour will feature active product application panels, “pick-up and play” product panels for hands on experience, free literature/samples/software tools to take back to the office, and dedicated time with a WAGO expert to discuss your application. All at the foot of your door step (or parking lot – as it may be). Furthermore, the tour will feature solutions to industry problems such as…
· Achieving maintenance-free wiring
· Reducing wiring time by up to 70%
· Reducing panel space by up to 66%
· Going enclosure-less with active and passive control devices
· Free software tool for creating CAD drawings and BOMs
· Reducing I/O costs through fieldbus independence
· Implementing a distributed I/O or distributed control platform
· Getting data from the plant floor to the rest of the enterprise
· Combining the reliability of a PLC with the functionality of a PC
· (PLC) Programming freedom with IEC 61131-3

And much more…

A complete schedule with online registration is available.

Office design may be holding workers back from optimal job performance, as well as inhibiting companies’ competitive advantage, according to a new study released by Gensler, a leading architecture and design firm. The study is the most wide-ranging and in-depth exploration of the link between workplace design and employee performance among U.S.-based companies that has been conducted in recent years.

The Gensler 2006 U.S. Workplace Survey reveals that workplace design has a very real impact on companies’ bottom lines. In fact, the effect of office design on worker productivity in the U.S. is estimated to be at least $330 billion annually for the eight industry groups sampled in the survey, according to an analysis conducted by the research firm D/R Added Value (see Survey Methodology).

These survey findings suggest businesses that ignore the design and layout of their workplaces are failing to optimize the full value of their human capital. According to the survey, office workers believe they would be 21% more productive if given a better working environment. Almost half say they would log an extra hour per day under such improved circumstances.

The Gensler 2006 U.S. Workplace Survey is part of the firm’s annual inquiry into the impact of design on business performance and builds on an earlier workplace survey conducted by Gensler’s U.K. office.

“Businesses are waking up to the fact that the workplace is much more than just real estate and a means to house their people,” said Diane Hoskins, an Executive Director at Gensler. “They are embracing performance-focused workplace design as a strategic business initiative-as the forum that can drive employee excellence, business objectives, and ultimately, the bottom line.”

The average survey respondent is a middle manager or above, 42 years of age, in an office of 209 employees, from a company with 3,711 employees and $354 million in annual revenues. These averages roughly correlate to U.S. office worker averages.

Better Design Equals Better Performance
According to the survey, nine in ten workers believe that better office design leads to better overall employee performance, and also makes a company more competitive. Nearly 90% of senior executives, including occupants of the C-suite, feel that a better physical working environment would have a positive impact on their company’s bottom line. They also estimate that their companies would be able to perform an average of 22% more work if their companies had better designed physical working environments.

However, in practice, many businesses seem to ascribe a low value to workplace design. Forty-six percent of workers do not believe creating a productive workplace is a priority at their companies, and 40% say that minimizing costs is the main reason behind their workplace’s current layout. One in five respondents rated their current physical workplace environment as being only “fair to poor.”

Impact on Innovation, Collaboration, and Creativity
The survey demonstrates a link between the physical office and work processes such as innovation, collaboration, and creativity. Two thirds of workers believe they are more efficient when they work closely with co-workers. However, about 30% of workers don’t think their current workspace promotes spontaneous interaction, collaboration, or cooperation and teamwork among colleagues and direct reports. Only 50% believe that their current workplace design encourages innovation and creativity.

Gensler is working with a number of companies, such as BP, Discovery Communications, and the Hearst Corporation, that have identified workplace design as critical to innovating and competing in the 21st century. With strategically-planned workplaces, these companies aim to leverage their “organizational intelligence.” For example, BP is using a Gensler-designed workplace prototype to inform and infuse a new office design with attributes that clearly motivate collaborative work for the Houston Exploration and Production group.

Workplace as a Weapon in the Talent War
Survey results overwhelmingly pointed to the importance of good workplace design for employee satisfaction. Over 90% say the quality of their working environment affects their mood and attitude about their work. Almost as many (89%) believe that the quality of their working environment is very important to their sense of job satisfaction.

“In the coming years, companies will succeed or fail depending on their ability to recruit and retain top skilled workers,” said Hoskins. “Therefore, the office environment is taking on an increased responsibility to connect people and support strong corporate cultures that engage workers hearts and minds.”

Additional Survey Findings
Topping the list of employee grievances about physical environment were lack of space, too few quiet areas, uncomfortable workstations, and bad layout and design. Other notable results from the study include:
· Over one third of respondents say their current workplace design does not promote health and well-being; yet healthy and secure working conditions are reported as the most important factors in an efficient working environment.
· 62% of U.S. office workers have great respect for leaders who work in an open plan environment with their teams rather than in private offices.
· Only 42% of respondents say they would be proud to show important customers or potential recruits their current workplaces.

Survey Methodology
Designed by D/R Added Value, the survey was conducted online in March 2006 among a randomly selected and representative sample of 2,013 office workers in all staff and management strata in the U.S. National in scope and representing six major geographic regions, the sample represents workers in eight industry groups - Legal; Accounting; Consulting; Banking; Financial Services and Insurance; Entertainment and Media Technology; Energy and Telecommunications; Retail; and Product Manufacturing. Job types include all levels within the organization including staff workers, middle managers, and senior managers, including C-Suite executives. The sample matches U.S. Census data with respect to average worker age and gender.