The First Facility Management Blog

The Building Owners and Managers Association (BOMA) International has released its new Guide to Developing a Standard Operating Procedure Manual, which aims to assist property professionals with developing or updating a standard operating procedure (SOP) manual for their commercial properties. SOP manuals are critical in facility management since they aggregate policies, procedures, instructions, and directives so buildings can be managed safely, efficiently, and consistently.

“We are excited to publish the new Guide to Developing a Standard Operating Procedure Manual, which will serve as a vital tool for property managers looking to develop or update a SOP manual,” remarked BOMA International Chair James A. Peck, RPA, FMA, senior director of asset services, CB Richard Ellis. “This publication simplifies the often daunting process of compiling building policies and procedures into one cohesive document, and will allow property professionals to manage their properties even more effectively.”

BOMA’s new Guide to Developing a Standard Operating Procedure Manual is a downloadable publication and features  easy-to-read, step-by-step guidelines on how to create an SOP manual, with detailed outlines of 18 commonly used sections, including Tenant Emergency Plan, Lease Administration, Accounting and Reporting, Business Plans and Re-Forecasts, Contracts/Contract Services, Management Office Operations, Physical Operations, Safety and OSHA Compliance, Fire and Life Safety Systems, Security, and more. The guide also provides business tips from the author, Marc Fischer, MBA, CPM®, RPA, CCIM, along with a comprehensive listing of additional resources.

For more information and to purchase BOMA’s Guide to Developing a Standard Operating Procedure Manual, visit the BOMA Bookstore.

Total collections for suburban office complexes nationwide in 2008 increased a slight 1.3% from 2007 levels to $19.56 per square foot of net rentable area. In contrast, those for downtown properties experienced a double-digit rise of 10% to $21.84 per square foot. Total actual collections for downtown properties were 11.7 percent more last year than their suburban counterparts.

These are among the major findings reported in the 2009 edition of the Income/Expense Analysis®: Office Buildings, a new benchmarking study published by the Institute of Real Estate Management (IREM®). This annual research study, conducted by IREM® since 1976, analyzes operating income and costs for 1,850 private-sector office complexes—some containing multiple buildings—in major metropolitan areas and regions in the United States. It is designed to help property owners, facility managers, investors, appraisers, lenders, developers, and other real estate professionals evaluate their buildings’ performance and prepare budget and revenue projections, feasibility studies, etc. The income and expense data is presented in dollars per square foot for more than 50 specific categories broken out by building size, height, age, and rental range.

Total Operating Costs Rise Modestly
Total operating costs for suburban buildings in 2008 rose 4.4% from the prior year to $8.84 per square foot of rentable area, while operating costs for downtown properties increased 9.1% to $10.29 per square foot.

Nationally, net operating costs for suburban buildings increased a relatively slight 3.4% to $6.40 per square foot of rentable area in 2008 vs. 2007, whereas those for downtown properties increased 8.7% to $7.50 per square foot.

Key Expense Comparisons
All major expense categories for suburban properties rose last year except for insurance/services, which declined 3.6% and administration/benefits costs, which remained the same. Real estate and other taxes saw the largest increase, 9%, followed by utility costs, up 4.5%, and janitorial/ maintenance services, up 2.8%.

Without exception, all major expense categories for downtown properties increased last year from the year prior. Real estate and other taxes rose 7.7% from 2007, janitorial/maintenance costs increased 7.1%, utility costs increased 7%, and insurance/services rose 5.8%.

Focusing again on major expense categories, but as a percentage of total operating costs, the IREM® study reveals janitorial/maintenance services along with real estate and other taxes accounted for the largest portion of suburban properties’ operating costs, 24.5% each. Utilities represented 23.9% and administrative/benefits and insurance/services represented 12.3% and 12.2%, respectively.

Similarly, expenditures for janitorial/maintenance services and real estate and other taxes accounted for the largest portion of downtown properties’ operating costs, 26.4% and 24.4%, respectively. Utilities represented 22.3% and insurance/services and administrative/benefits accounted for 12.3% and 12.2%, respectively.

Overall, downtown properties proved 14.1% more costly to operate in 2008 than their suburban counterparts, with all expense categories less than those experienced by suburban buildings.

Vacancy Rates Rise For Suburban Buildings; Remain Stable For Those Downtown
The national vacancy rate for suburban office properties in operation for 12 months rose 2% in 2008 vs. 2007, whereas the rate for downtown properties remained the same. The 2008 vacancy level for suburban properties was 7%; that of downtown properties was 5%.

Median operating ratios: Though downtown properties reported higher total actual collections than suburban properties in 2008, the overall operating experience of both downtown and suburban office markets were similar as reflected by their median operating ratio (total operating costs divided by total actual collections). The median operating ratio at suburban properties was 0.45, while the operating ratio at downtown properties was 0.47.

The 282-page Income/Expense Analysis®: Office Buildings is available for $419.95 (plus $15.50 shipping and applicable state sales tax). The IREM member price is $209.95 (plus shipping and handling). To order, contact the IREM Customer Service Department at (800) 837-0706, ext. 4650. Internet users can order the study in soft cover or in a downloadable format by accessing the Publications section of the IREM Web site.

The International Facility Management Association has released Temperature Wars: Savings vs. Comfort (available to download for free at this link: hvacsurvey2009), a new study that takes an in-depth look at the most common thermal complaints made by workers and the variety of ways facility professionals respond to them.

For many years, IFMA has surveyed facility professionals to learn the top office complaints among employees. Respondents consistently cite the temperature being too hot or too cold as the most frequent grievances they hear — surpassing high noise levels, limited space, and unpleasant odors. Recent IFMA research also shows that many facility professionals are adjusting the thermostat to higher settings in the summer and lower settings in the winter in an effort to cut energy consumption and costs.

This 2009 study identifies when most thermal complaints occur, the nature of the complaints, and the actions taken to make workers more comfortable and able to concentrate on their jobs. Not surprisingly, survey respondents again report that the most common heating, ventilating, and air conditioning complaints they receive are that the temperature is too cold (94%) or too hot (91%). Indoor air quality complaints are a distant third (25%), followed by too drafty (21%) and too noisy (16%).

Building occupants adjust to thermal comfort issues in different ways, the most common of which are through the use of personal fans (66%) or by a change in clothing (64%). Also popular with workers — though not with building management — is the use of personal heaters, which 60% of facility professionals report seeing. Many survey respondents say that personal heaters are not allowed, however, because they present a fire hazard.Other responses include using stand alone air conditioning units, blankets, and even small wading pools under the desk.

“We have people with lap blankets and fingerless gloves on,” said one respondent. “Sad, isn’t it?” [NOTE: I keep a pair of fingerless gloves in my desk drawer for just this purpose.]

When it comes to addressing occupants’ thermal complaints, 90% of facility professionals say they check the temperature in the area where the complaint was made to see if it is within standards; 87% validate that the HVAC system is working properly; and 75% adjust thermostats to provide for greater worker comfort. Less popular responses include encouraging the occupant to wear layered clothing (35%) and temporarily moving the worker to another area (4%). Others report taking a vote of all occupants in a given control zone; asking people for a budget code to charge them for additional costs associated with running units more than agreed upon parameters; or simply doing nothing.

“We sometimes say we’ll make an adjustment, but don’t,” said one respondent. “This actually seems to work.” “Usually, a prompt response saying that we are handling it is key,” said another. “Then, we follow up in a couple of hours to find out if the ‘adjustments’ made an improvement. Often, we haven’t actually physically done anything to change the temperature.”

During the summer months, survey respondents say they hear complaints that the temperature is both too hot (66%) and too cold (58%). However, 57% of facility professionals say their company does not relax the dress code during the summer to improve occupant comfort, whereas 43% say their company does. Summer “pre-cooling,” a practice in which cool outdoor air is brought into a building at night, was reported by 47% of survey respondents.

The majority of those surveyed say temperatures at their facility are centrally controlled and cannot be regulated by individual occupants (56%). Forty two percent say that temperatures in their buildings are zone controlled, allowing facility managers and sometimes occupants to adjust the thermostat, and 2% report buildings that feature individual occupant or work station temperature control.

Energy efficiency is of prime importance to facility professionals, with the vast majority of respondents saying they utilize a number of energy saving techniques. Seventy seven percent say that they have updated or replaced an HVAC system or components; 73% have verified that their building automation system is working as designed; and 52% have installed more efficient light fixtures to reflect less heat. Common responses also include modifying ductwork (27%), installing new window shades (24%) and adding window film to improve thermal properties (24%).

The survey was drafted with the assistance of several HVAC experts and taken during June and July 2009. It is based on the responses of 473 IFMA members, with a margin of error of approximately +/- 5%

In January of 2008, the Hollywood City Commission approved a $13.9 million performance contract with Johnson Controls to outfit the city with a Wi-Fi (wireless) communications platform to allow for automated water meter reading, wireless access to Federal and State crime databases for police officers, and wireless access to the city’s network for building inspectors and code enforcement officers working in the field. The technology project was officially launched early last month (July 9, 2009).

Dubbed Wireless Hollywood: Efficiency Through Innovation, the creation of a free outdoor Wi-Fi system throughout the city will improve the efficiency of numerous city departments including Public Utilities, Police, Code Enforcement, and Building. The operational and energy efficiencies are expected to save Hollywood more than $23 million during a 15-year period.

Johnson Controls, under the terms of the performance contract, guarantees the performance of the technology improvements. The savings will come from the performance of the wireless technologies, which will create operational efficiencies in multiple departments and streamline many city functions.

“This project puts Hollywood on the cutting edge of Florida’s cities in terms of technology,” said Hollywood City Manager Cameron Benson. “As we seek to attract more international tourists and businesses and build on Hollywood’s unique location as the home to Port Everglades, this wireless platform becomes a selling point few other cities can offer.”

The Wi-Fi network offers all businesses additional flexibility, but will particularly benefit creative industries whose employees are often working on location. This initiative underscores the city of Hollywood’s commitment to using technology to enhance the efficiency and quality of municipal services. It’s a commitment that earned Hollywood the distinction of being named a top 10 digital city in both 2007 and 2008 by the Center for Digital Government.

The new Wi-Fi communications platform offers both the 2.4 frequency that allows users to enjoy outdoor Internet access at speeds similar to that of DSL, and the licensed 4.9 frequency, enabling police officers in squad cars to download information vital to public safety quickly and efficiently over a secure network.

The wireless technology will also enable Hollywood’s water meter reading process to become fully automated, ensuring all utility customers obtain accurate and timely water billings based on actual usage. An automated system also gives the city flexible billing options and greater leak detection capabilities. The city will utilize the wireless network to continually improve operational efficiency and customer service by providing wireless access to other city staff responsible for performing work in the field.

On March 19, 2008, FacilityBlog posted the article below which touched upon the decaying state of Michael Jackson’s Neverland estate (which was sold last year). Abandoned and tied up in legalities for many years, the piece of property symbolized some of the financial turmoil and legal woes that swirled around the late Michael Jackson.

A comeback tour due to start in just a few weeks was supposed to help pull the King of Pop out of his economic meltdown. Despite being a billion dollar business, the singer was in about $400 million in debt when he died yesterday.

There have been reports from some companies that people would be dressing up in Michael Jackson attire today. What has been the reaction to this news, if any, in your facilities? Is it just another distraction during a slow Summer Friday? 

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The International Facility Management Association has released “Operations and Maintenance Benchmarks, Research Report #32,” a study outlining the facility trends affecting workplaces throughout North America. Among the new report’s findings are that the average space per person has risen nearly 40 square feet since 2007 — likely due to recent corporate layoffs — and that companies are adjusting their thermostats higher or lower by an average of one degree Fahrenheit, compared to data from three years ago, in an effort to minimize energy use and cut costs.

The study provides data from 1,422 facilities comprising more than 600 million square feet of commercial space, representing organizations from Fortune 500 companies to the U.S. government. It examines built environment trends in 34 industries — including banking, health care and motor vehicle manufacturing — and in various facility types, such as corporate headquarters, call centers and religious facilities. In total, the report provides benchmarking statistics covering space per person; sustainable, janitorial and maintenance practices; utility consumption; and more.

The amount of square footage per building occupant, a measurement IFMA has calculated for the past 15 years, has increased to an average of 435 square feet in 2009, up from 415 in 2008 and 396 in 2007. This additional space per person is not attributed to employers allocating greater individual office space to employees, but instead is likely the result of the ongoing economic downturn, layoffs and fewer workers occupying the same amount of space.

The report also highlights developments in built environment sustainability trends. Of those surveyed, only 11 percent report managing buildings with no green elements or certification, with 28 percent reporting one or more certified buildings and 61 percent saying their buildings contain green elements but are not certified. Additionally, more than four out of five businesses now utilize recycling programs, and 62 percent use green cleaning supplies in their facilities.

Survey respondents report spending on average 25 cents more per square foot on janitorial costs than they did in 2008, the last time similar data was collected. Given that labor makes up two-thirds of this cost, the rise is likely due to the implementation of mandatory wage increases. To combat mounting costs, the frequency with which certain janitorial tasks are performed has decreased. When compared to IFMA’s 2006 measurements, survey respondents report that practices such as daily trash removal and restroom cleaning have declined, while other tasks remain about the same.

Organizations are also increasingly performing their building maintenance with fewer personnel. Respondents report employing one maintenance staff member for every 49,000 square feet of office space this year, compared to one staff member for every 47,000 square feet in 2006. Layoffs and a sluggish economy are likely contributing factors to these changes.

In an effort to reduce utility consumption, facility professionals are going to great lengths to modernize building equipment and implement controls such as sensors and building automation systems. Changing the operating hours of a building’s heating and cooling systems and adjusting thermostat settings are two prime examples of how facility managers have achieved energy savings with little expense involved. When compared to IFMA’s 2006 measurement, the average summer low thermostat setting has risen by one degree to 72 degrees Fahrenheit, while the average winter low setting has dropped a degree to 69 degrees Fahrenheit.

The amount of electricity buildings consume on average continues to decrease as more sustainable practices are being implemented. Survey respondents who manage buildings with no green elements report using an average of 82 kBtus of electricity per square foot, while those whose buildings contain green elements but not certification report using an average of 72 kBtus per square foot. For those who manage certified green buildings, electricity use is even lower, at 69 kBtus per square foot. In total, utilities constitute the largest component of a facility’s operating cost, with electricity use alone making up 25 percent of the entire cost of operation.

“While focusing on providing healthy and productive work environments, facility professionals have found ways to reduce energy consumption, conserve water, harness natural sources of light and ventilation and minimize waste, all without increasing their operational costs,” said IFMA Director of Research Shari Epstein. “This year’s results demonstrate that by implementing a variety of cost effective practices, workplace professionals have improved the operational efficiency of their portfolios and contributed positively to their organization’s bottom lines.”

For more information about “Operations and Maintenance Benchmarks, Research Report #32,” click here. The publication is available for purchase at the IFMA bookstore by visiting www.ifma.org/bookstore. Members of the media may request a free copy of the report. To learn more about other IFMA research reports, visit www.ifma.org/tools/research/research.cfm.

IFMA is the world’s largest and most widely recognized international association for professional facility managers, supporting more than 19,500 members in 60 countries. The association’s members, represented in 125 chapters and 16 councils worldwide, manage more than 37 billion square feet of property and annually purchase more than US$100 billion in products and services. Formed in 1980, IFMA certifies facility managers, conducts research, provides educational programs, recognizes facility management certificate programs and produces World Workplace, the world’s largest facility management conference and exposition. To join and follow IFMA’s social media outlets online, visit the association’s LinkedIn, Facebook, YouTube and Twitter pages. For more information, visit the IFMA press room or www.ifma.org.

Retro-Commissioning, as the first step in a campus sustainability strategy, can reduce energy use in college and university buildings by 10% or more, making it an essential ingredient for meeting greenhouse gas reduction goals. The details of retro-commissioning are discussed in the new white paper, “The First (Big) Step to Reducing Your Campus Carbon Footprint,” from EH&E Inc, an environmental engineering and consulting firm.

“We often find that while existing building systems may be operating in a fashion that maintains comfort and air quality, they are rarely performing to their designed effectiveness and efficiency without a periodic optimization, or commissioning, process,” says Mike Della Barba, director of commissioning services, EH&E, and author of the white paper.

“Since building energy use is such a large proportion of overall campus energy consumption, this optimization represents some immediate and significant energy savings.

“Colleges and universities across the country are making public commitments to reduce their campus carbon footprint significantly by eliminating wasteful energy consumption” says Della Barba.

“Retro-Commissioning, a ‘tune-up’ of the heating, ventilation and air-conditioning (HVAC) systems, provides the right context for energy conservation measures that are part of any campus sustainability plan,” he said.

In the white paper, Della Barba discusses:

• How to improve building performance;
• Performance improvement vs. energy reduction;
• Prioritizing buildings for retro-commissioning;
• The three-phase retro-commissioning process; and
  
• Campus retro-commissioning strategy.

The white paper, “The First (Big) Step to Reducing Your Campus Carbon Footprint,” is available for download here: CampusRetroCx.pdf