Real Solutions Insight for today’s real property administrators October 2010 Four private sector best practices for sustainability, space efficiency and savings Earlier this year, President Obama signed a Presidential Memorandum to identify and eliminate excess properties and make better use of remaining real property assets. The goal is to dispose of assets, cut operating costs, decrease energy consumption, optimize owned and leased inventories and reduce future space needs. These are critical areas of focus for all public-sector entities – federal, state and local alike. The General Services Administration (GSA), Department of Defense (DOD), Department of Energy (DOE) and Department of Veterans Affairs (VA) are presenting their agency’s initiatives to comply with the Memorandum. Their activities include an evaluation of disposition alternatives, facility optimization, workplace solutions, energy audits and renewable energy sources. Many of these initiatives have been underway for some time, but there is a notable focus on driving measurable solutions through energy efficiency. In each of the federal agencies, benchmarking is underway for every expense dollar and square footage of usage as well as the emission An effective green measurement tool A convenient online tool called eco2 Workplace measures an organization’s environmental impact across large leased and owned real estate portfolios. This tool goes beyond energy of greenhouse gases. consumption metrics to assess “ways of working,” including Agencies such as the GSA are very focused on finding ways to commute and meeting patterns, and workplace locations and drive down occupancy costs through creative workplace solutions such as teleworking and shared desk space. Proven private sector approaches such as these—which represent significant departures from how agencies have done business in the past—will be necessary to make a real impact toward optimizing government real estate portfolios. Here are four private sector best practices that can assist in achieving greater sustainability, space efficiency and savings. the impacts of widely distributed work groups, employee travel, design. It also allows users to conduct sensitivity analyses on potential modifications to workplace programs, and benchmarking of portfolio performance against comparable public and private sector entities. Armed with these metrics and analytics, real estate decision makers can effectively communicate the value of implementing workplace strategies to stakeholders and devise a strategic plan and prioritize initiatives for the greatest impact. Real Solutions 1. “Right-size” space to occupancy needs 3. Create collaborative workspaces Many private-sector entities have discovered unused and underutilized For many private sector workers, the four-walled office is obsolete. In its place are popular space reduction strategies, such as desk-sharing, hoteling and group workroom arrangements for employees engaged in alternative work strategies such as telework programs, who do not require daily office space. space in their portfolios that can be eliminated through consolidation into smaller, more efficient quarters. Often, a careful portfolio-wide measurement reveals at least 10-15 percent more of this “shadow vacancy” on the ground than appears in their records. Eliminating this unused space reduces portfolio expenses and eliminates energy and lighting. These collaborative arrangements also typically reduce energy use by limiting the number of computers and servers needed to support the office. 2. Support telework arrangements 4. Digitize documents The Washington, D.C. area snow storms of last winter that shut Additionally, these collaborative workspaces contribute to a more sustainable, paperless environment since the need for individual storage spaces is reduced, prompting users to rely more on electronic documents. Consider digitizing all documents not required in hard copy to dramatically reduce document storage space while boosting efficiency and productivity. The U.S. Government Printing Office (GPO) has developed FDsys, a robust content repository that is digitizing all documents accessible through the Federal Depository Library. In doing this, GPO upgraded its IT platform to eliminate more than 20 separate servers and reduced energy needed to support this application by 50 percent. consumption and the operational costs associated with heating, cooling down the federal government for four days have prompted a greater push toward alternative work strategies within government. Office of Personnel Management Director, John Berry set a goal of increasing the number of eligible federal employees who telework by 50 percent by fiscal year 2011 and has encouraged agencies to develop their own telework initiatives. Telework arrangements that enable employees to work at home or from satellite telework centers closer to where they live are becoming one of the most popular ways to sustainably reduce space. A decrease in the number of workers needing daily office space allows agencies to rethink their space utilization, and ultimately shed space. Fewer employees commuting means fewer vehicles on the road, which contributes to a reduction in greenhouse gas emissions. The advantages don’t end with space and sustainability. Numerous surveys have confirmed that teleworkers are more productive since they feel a greater autonomy over their work schedules and quality of life is improved when less time is spent commuting. Many private sector entities also use alternative work programs as a means for recruiting and retaining employees. For more information on how you can achieve sustainability, space efficiency and cost savings throughout your real property portfolio, please contact: Kim Burke, +1 202 719 5613. Join the Conversation Visit the Jones Lang LaSalle Green Blog for insights, perspectives and updates to help you keep pace with energy and sustainability information, trends and opportunities.
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