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From Site Selection magazine, May 2000 M A N A G E M E N T S T R A T E G Y Fast Forward: A Look at the Real Estate Manager of the Future (page 2)
"Now you have me intrigued," says Julie. "Mike Tyler is the senior managing director for a new product line. He's currently located at headquarters and is requesting information regarding a new facility to house 300 software engineers and support staff." "Has he got approval?" "No," says the system, "but on the minutes from yesterday's senior staff meeting with Marvin Donson, the new CEO, this project was on the agenda. It appears it has complete support for further study." "Well, go ahead and open the e-mail." The e-mail appears on the screen and the computer begins to read the message: Julie: "Did you open the attachment?" asks Julie. "Yes." "Can you translate the employment data into a form we can use for a labor search?" "Completed." "Go the REMgr.com Web page." Before Julie takes another drink of coffee, the page is up, asking her to place her right thumb on the small square at the top to the screen. The system acknowledges her accessibility, and her account page appears. There are several bulletins about upgrades and modifications to the programs, schedules for on-line training sessions, and an announcement about a new release due out next month. Nothing new. Down the left side of the screen is a series of buttons that read: Planning, Site Selection, Transaction Management, Facilities Management, Project Management, Lease Administration, and Appraisal. In the upper left hand corner is a box named ACCOUNT. The box shows the number of times and minutes Julie has accessed the various modules. She touches the screen on top of the button labeled Site Selection. A screen appears with a title reading: Site Selection. Under this module there is another series of sub-modules called: Product Types, Company Portfolio, Labor Variables, Government Variables, Business/Finance Variables." "Labor Variables," she states out loud. The new screen has the following buttons: Define Search Parameters by: Geographic Location, Type, Rates, Relocation and Retention. "Type," Julie specifies. A series of instructions and blank fields appear, asking for details regarding the specific type of jobs the user is looking to fill. "Computer, please download the labor data from the e-mail attachment into these fields." The task is completed and the screen displays sorting options: Rates, Current Size, Availability, Projected Size, Age, Cost of Living, Attractions and Retention. "Hmm, sort by Availability; Current Size; then Retention." The screen replies with more options: Complete Report, Intermediate Detail, Summary, and Custom. "Summary." The screen displays a table of 20 cities or municipalities with data on the size and availability of the existing labor pool for the types of high tech jobs Tyler outlined. At the bottom of the screen are instructions for viewing the next set of cities or reorganizing the data. As Julie suspected, of the top 20 cities, seven are in India, four are Pacific Rim countries, three are in Europe and six cities are in the United States. An article she recently read indicated a high availability and quality of programming and debugging experts in India. Julie then requests that the program add two columns defining the availability and cost of office space. She imports the top 50 cities into a file, doctors up the format into company standards and adds department logos. A quick search for some articles of labor demographics finds the one she recently read and two others that address where these types of employees are located. Julie studies the data for several seconds. It appears that the best location would either be New Delhi, India; Hamamatsu, Japan; or Austin, Texas. Texas would be the most expensive location, and the retention rates are low. In New Delhi, there are several new research-oriented office buildings with government sanctioned housing nearby. In addition, the government is offering some attractive incentives. In Japan, outside Hamamatsu, a medium size coastal town about 100 miles southwest of Tokyo, Keio University has set up an extension and associated offices and housing focused on computer programming and software development. The local and national governments are very focused on developing this new, high-tech village. This could offer good attraction from a wide range of labor sources. Satisfied with the first round of analysis, Julie prepares a custom response to the request. "Computer, dictation," says Julie. "Ready," the system replies. Dear Mike: "Computer, please finish with our standard disclaimers about cost estimates and internal cost structures. Then put the real estate logo on everything and send." "Done. I'll bet he responds today." "He'd better, given his time frame," Julie remarks. "That's it. You've got 10 minutes until the tour. Would you like to take a break?" "Yeah, I'll be right back." 7:59am/CST
Julie is addressing some questions from the managers about the next steps in the process of finding a new facility. At 8:10, she asks to start the tour, and the managers agree. Looking at the login sheet she sees 35 people are on line. Thirty-five out of 44 is not bad, she thinks. Julie begins by introducing herself and defining her role in the project. After quickly redefining the project's parameters, she initiates an online film that has been prepared by the real estate department regarding standard procedures and approval processes. While the film is running, she can see that her image has gone off the screen, she pulls down another sub-screen and begins reading her e-mails. After a few minutes, the computer warns her the film is almost over. When her image is back on the screen, she begins to describe the history and technology behind the database from which she has identified 10 potential properties. The database in Atlanta has a 94 percent accuracy rate and a 98 percent completeness factor. She explains that these are the ranges for the databases of most major real estate markets in the United States. Pulling up a map of Atlanta, she touches a pre-programmed button that accesses the local database. The computer splits the screen, and the database web page presents a five-minute film describing the Atlanta area market conditions, infrastructure and demographics through the use of numerous dynamic maps, charts and diagrams. During this time, Julie reviews a couple of e-mails. When the database overview is complete, Julie begins to describe the submarket in which the requirement is focused. An interactive map shows where the submarket is located within the metropolitan area. It is identified by a flashing point on the submarket map, which is now located in the upper right-hand corner of the screen. She then begins to describe the first building. An aerial photograph of the property is displayed next to the map. Flashing arrows identify various amenities and infrastructure of the surrounding area. Upon her command via a joystick, the view zooms down toward the property. The property is virtually viewed from a multitude of angles and directions. Julie then commands the screen to split, showing a floor plan of the building next to the virtual view and highlighting features such as column spacing, location of skylights, sprinkler system layouts and electrical power sources. With a touch of the REMgr.com screen, Julie overlays on the floor plan a preliminary space plan showing office areas in the front of the building, a research and light assembly area and racking systems near the loading doors. Simultaneously, a three-dimensional view of how the constructed space would look appears. Julie navigates through the conceptual space as she discusses various design alternatives, each of which is reflected on the space plan and simultaneously in the 3-D views. After addressing several questions, Julie proceeds to the next building. In 50 minutes, she has toured the group through the 10 properties. Fifteen minutes are spent reviewing the data, narrowing the alternatives down to a short list of three properties and, most importantly, the internal financial approval process. The team sets a schedule for RFPs, presenting the resulting information to the team, and developing a business case for corporate approval. Julie thanks everyone and signs off. 9:25am/CST "Computer, please incorporate the specifications for the Atlanta warehouse project into our standard industrial RFP and send it to the landlords of the three buildings we selected," Julie instructs the computer. "Let's see; ask for a seven-year term with a five-year cancellation. Incorporate the new subletting and assignment language Legal gave me last week. Also, be sure the new language we saw in the new Transaction Management Module of REMgr.com regarding instructions on how to fill out the electronic proposal forms is included. If any of these landlords return their proposals in any other form, go ahead and return them with our standard noncompliance letter. You don't need to query me." "Okay." "Ask them to return their responses by end of day, July 8th." "Anything else?" "No, please compile and send." "Done. You have nine minutes before your Denver tour. Do you want to look at some more e-mails?" "Sure." 9:44am/CST
"When you meet the landlord's agent at each location, have them place one of the cellular transmitters on their collar," Julie instructs the listeners. "I'll be able to pick up their presentation of the buildings as you walk through the spaces. I'll ask questions through the receivers, or ask you questions and point things out privately into your individual earpieces. We've established a microwave link with your laptop John, so that we can look at floor plans of the space while you're touring." A kid-like smile develops on John's face. "Sounds kind of fun," he says. "It's like playing a video game," Julie replies. As the group meets the first landlord's representative, Julie begins to ask questions and point out features to the team. The group walks to the available space and begins to wander from room to room. All the while, the landlord's representative is describing the building's amenities and plans for upgrades to the common areas. At one point, Julie asks John to stop and hold up the laptop computer. From her office she downloads a floor plan of the space and its current configuration. She then uses the Space Planning module from REMgr.com to overlay a preliminary new plan she worked on the day before. She discusses the benefits of this new layout, and then, using her computer makes a few modifications that John suggests. She then executes a three-dimensional program to show how the space would look with furniture. On her computer there is a sub-screen which displays a line-item estimate of how much the leasehold improvements would cost. This program takes into account local material and labor conditions. "Any more questions guys?" Julie asks. They shake their heads no and begin to walk out of the space. Julie tells the landlord's rep they will be getting back to them regarding interest and responses to the proposal the landlord submitted. The rest of the tour goes smoothly. After the last building, Julie walks them through their options while they sit in John's car. The Space-Planning module generates a detail cost breakdown of each space along with a schedule of activities. Julie uses the transaction management module to compare these costs in combination with the proposals that have been submitted by each of the landlords. It is evident from the discussion that the team is interested in the new building. She explains to them the company's policy about not taking high-end space. But, if they will write a business case that justifies the cost through higher revenue production and employee retention, they may be able to sell it to upper management. She tells them she can not support this option, but will provide them with all the real estate cost figures they need and will implement whatever they can get approved. 12:06pm/CST Julie logs into an Internet-based video conference call with her boss, Dora Winterfront, and all of her peers in the real estate department. Her boss welcomes her to the call, then asks how the Denver tour went. The group begins a discussion about new telephone and computer standards the company will start implementing. 2:08pm/CST Having quickly sat down in her chair, Julie scans her screen to see what e-mails have come in. "How was your walk?" her computer asks. "Fine," she says. "It's really hot." "The weather bureau shows it is 94 degrees, 68% humidity." "Yep. I didn't have time to take a shower so I need you to help me on the conference call." "Okay." Looking at a box in the corner of the screen she scans her schedule. "Please pull down REMgr.com again," Julie instructs the computer. Touching the screen, she pulls down the Transaction Management sub-menu. Within this menu she pulls down the proposal analysis expert system directory. "Please download the Indianapolis proposals into the format number three analysis." "We still don't have the electronic format for that one building," the computer points out. "Well, it wasn't one of their favorites, so go ahead and send them the elimination letter. When they send a follow-up to that letter, send them our second elimination letter." "Okay. That leaves three finalists." On the screen Julie looks at several pages stacked together showing the requirements included in the RFPs and a column for each property. Also shown is a cost analysis for each property with a preliminary space plan for each space. After tweaking the space plans and modifying the report format, Julie nods her head in satisfaction. "I like that Corporate Woods, Building Five location," she says idly. "Yes, it does seem to offer the most efficient layout," the system concurs. "Yeah, I also think the local manager likes the surrounding area." Julie studies the results of the analysis for another minute. "Okay, package this in electronic presentation, put a cover on it and send the standard internal approval documentation." "Ready?" the computer asks. "Yes." "Done."
Within five minutes, she has also conducted a similar analysis of the landlords' proposals for the Schaumberg and Houston projects.
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