October 2021 www.creinsightjournal.com
TENANT EXPERIENCE GUIDE Navigating the Changes and Guiding the Return Page 04
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Exploring the Modern Tenant Experience
Attracting Talent and Tenants in the Multiverse of Work
Real Estate Trends for the 2022 Budget
Letter From the Editor The tenant experience has always been at the center of commercial real estate and property management. Over the past few years, the tenant experience has changed. From incorporating more live-work-play amenities to the evolving safety and comfort considerations brought on by the pandemic, the tenant experience is still at the forefront of the conversation.
Gabriel Eckert, FASAE, CAE, is editor-in-chief of the Commercial Real Estate Insight Journal. He also serves as the CEO of the Building Owners and Managers Association of Georgia and BOMA Georgia Foundation. He is a Certified Association Executive; Fellow of the American Society of Association Executives; and has been named by the Atlanta Business Chronicle as one of the Top 100 Who’s Who in Commercial Real Estate, a list of “leaders, deal makers, and legends who are changing Atlanta.”
This guide focuses on the tenant experience and explores different questions and challenges real estate professionals may be facing. We explore the evolving community manager role and communications strategies for tenants’ return to the office. This guide also takes a look at the topic of transparency in property operations. Each element in this guide is meant to spark conversation and inspire solutions to everyday situations. As tenants navigate their relationship to their physical office space, and many continue their return, the commercial real estate industry is faced with new questions, many of which surround the future of physical spaces. This guide features articles that specifically address the future of office and what some of the new tenant demands may be. CRE Insight Journal always strives to create relevant content when the real estate industry needs it. This timely guide continues that practice. Many properties do not look exactly the same as when their tenant began remote work. Infusion of technology and new operational practices increased during the times of low-occupancy. But how does technology affect the tenant experience? One article in this guide showcases the possibilities of how technology can be woven into the tenant experience. Technology also certainly can have a financial effect as well. That being said, another article breaks down budget considerations for 2022 and how to keep tenants at the forefront. One of the intriguing hypotheses about the new relationship to the physical office space is “The Multiverse of Work.”
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While there is much discussion about the hybrid work model, there are also a lot of questions about how it will play out in practice. How will it affect operations? How will it affect leasing and space utilization? A featured article by Phil Mobley with Avison Young, Attracting Talent and Tenants in the Multiverse of Work, dives into this topic and examines how organizations will build and utilize physical office space well into the future. This Tenant Experience Guide is an extension of our CRE Insight Journal digital platform, which houses an expanding array of articles, videos and webinars focused on the commercial real estate industry and designed to enhance the professional development of real estate professionals. I highly encourage you to explore the platform at www.CREInsightJournal.com and discover the depth of resources available to you on demand. In the coming months, www.CREInsightJournal.com will continue expanding and serving as your one stop source for the evolving needs of your company, tenants, and your career. We hope you will stay connected with us by subscribing to our weekly email newsletter, so you can stay up to date with the newest resources available. Also, be sure to continue watching for new educational opportunities and explore Marketplace to learn about products and services to help you better serve your tenants. Finally, for even more in-depth resources, consider joining CRE Insight 365, to gain access to an expanding catalogue of exclusive content that serves the needs of real estate professionals. This content, available to you on-demand 365 days a year, includes more than 80 webinars, articles, and educational videos from real estate thought leaders, and more. When you join, be sure to watch the deep dive webinar on the Multiverse of Work and take a look at other content related to the tenant experience.
Contents
Tenant Experience Guide: Navigating the Changes and Guiding the Return
04 Exploring the Modern Tenant Experience by Ashley Simien, Cousins Properties
06 The Evolving Community Manager Role by Jennifer (Fierro) Ortiz, Zeller
08 Bringing Technology to the Tenant Experience by Jacob Ruppell, Portman Management
10 Attracting Talent and Tenants in the “Multiverse of Work” by Phil Mobley, Avison Young
12 Three Topics Essential to the Tenant Satisfaction Survey by Molly Looman, BOMA Georgia
14 Real Estate Trends for the 2022 Budget by Becky Hanner, Hanner Commercial Asset Services
The Tenant Experience Guide is published for: Building Owners and Managers Association of Georfia 5901 Peachtree Dunwoody Rd, NE Suite C-300 Atlanta, GA 30328 (404) 475-9980 info@bomageorgia.org www.bomageorgia.org www.bomalegacy.org www.bomageorgiafoundation.org www.creinsightjournal.com The Wyman Company Advertising Representatives: Chris Chiccarello chrisc@thewymancompany.com Justin Olson jolson@thewymancompany.com Holly Patterson hpatterson@thewymancompany.com Katie White kwhite@thewymancompany.com Editor-in-Chief: Gabriel Eckert, CAE, FASAE geckert@bomageorgia.org Executive Editor: Jacob Wilder, CAE jwilder@bomageorgia.org Managing Editor: Molly Looman mlooman@bomageorgia.org © BOMA Georgia 2021
16 Behind the Curtain: Challenges and Opportunities with IncreasedTenant Transparency
by: Scott Baker, Baker Engineering
18 First Impressions: How to Make Your Commercial Lobby Stand Out by Molly Looman, BOMA Georgia
20 The Great Outdoors: The New Age of Commercial Outdoor Space by: Dusty Muck, Rubbermaid Commercial Products
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How Indoor Air Quality Affects the Tenant Experience
Contributions from indoor air quality experts from across the globe
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Technology
EXPLORING THE MODERN TENANT EXPERIENCE By: Ashley Simien, Cousins Properties Will an increased desire for a better tenant experience continue to influence the Commercial Real Estate industry? A priority for many landlords has been to create a positive and engaging tenant experience. Tenants want their employees to come to work and enjoy convenient on-site amenities and neighboring properties. Many landlords pride themselves on a diverse mix of tenants to enhance their relationship-building experiences within the buildings. Several companies have approached landlords and developers with detailed specifications for building the perfect tenant experience for their company.
The tenant’s human resource department plays a critical role in providing input for the building’s design and selection of amenities. According to the software company ButterflyMX, “More than ever, tenants believe the workplace experience increases employee satisfaction, which increases the tenant’s ability to recruit and retain top-tier talent.” Recruitment and employee retention are recurring themes when discussing the tenant experience. Landlords contribute to the success of a company by providing spaces that enhance the employee experience.
NCR Corporation’s headquarters in Midtown Atlanta. Photo Credit: Cousins Properties
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NEXT LEVEL AMENITIES Landlords have had to reevaluate the amenities offered based on tenant demands for their workforce. According to Deloitte’s 2021 Commercial Real Estate Outlook, “Digital transformation and tenant experience are a business imperative.” Providing modern conference centers with digital booking systems and teleconferencing abilities has become essential. As a result of this demand, providing access to these digital booking systems has drastically changed from working within a work order system or a call to Property Management. Many have adopted tenant experience platforms that provide curated experiences for all building occupants. These applications provide real-time updates that can help create a community that supports surrounding tenants, especially in mixeduse properties. Moreover, landlords should promote their environmental, social, governance (ESG) as an amenity instead of a company requirement. According to the ESG software company Measurable, there is a “marked shift in tenant and consumer expectations—they expect a high degree of sustainability in the places they live, work, and shop.” Goby’s report on ESG in CRE said, “Research from Morgan Stanley found that millennials are two to three times more likely to want to work for organizations that share their values, particularly when it comes to environmental and social issues. The ability to show progress in sustainability is becoming an increasingly valuable tool in attracting and retaining top talent.” As important as it is to acquire top talent, it is equally important to retain top talent. In 2019, the CEO of Scoop Technologies Inc. issued a State of the American report that stated 62 percent of Americans would not apply for a job based on the commute and 30 percent have considered quitting their jobs because of their commute. As a result, many companies now consider public transit to be a part of the tenant experience. The advent of rideshare services has to be considered by companies when discussing employees’ commuting experiences. Cushman and Wakefield’s report on Mobility Shifts in Commercial Real Estate implies that rideshare services provide a convenience that is not received when commuting in your own vehicle or via public transit. It is essentially a door-to-door service that saves time from a traditional commute. The need for drop-off and pickup areas around commercial buildings is increasing. Providing safe areas for tenants to access these services creates a positive experience. In addition, health and wellness are a top priority for many tenants. According to NAIOP, “Companies compete for the best workers with packages that extend beyond salaries and bonuses. Amenities such as cafes that feature locally sourced food, ample fresh air, and rooftop gardens play a pivotal role.” Providing areas for employees to take breaks from their computer screens or refresh their minds after an afternoon workout provides a great incentive to tenants and their employees.
Overall, amenities can make or break the tenant experience, and landlords must consider the needs of tenants when considering leasing trends.
COVID-19 AND THE TENANT EXPERIENCE Due to social distancing, amenities that once created an amazing tenant experience had to evolve to a virtual model. Buildings once buzzing with thousands of people and events became nearly vacant. Many landlords and tenants were left to find ways to continue to engage employees who now worked from home. Before the pandemic, hybrid working models were becoming the norm. Tenant spaces were crafted to allow for hoteling and workforce flexibility. Office hoteling not only allowed for increased collaboration and teamwork, but it set the stage for companies to utilize a higher office density model. This left tenants with the task of finding ways to implement social distancing measures and more work-from-home opportunities. In conclusion, landlords must create value for tenants to encourage them to return to the office. Being able to provide amenities that enhance their experience should outweigh the benefit of tenants working in comfort of their own home. Tenants do not have to experience commute issues, regulated breaks, or worry about their wellness in the comfort of their homes. We must find new ways to engage tenants and make the office lease more appealing than the work-from-home model. It is imperative we do so in order to compete in the evolving climate of the work place.
About the Author Ashley Simien is currently a Property Manager for Cousins Properties. She has over 10 years of experience in commercial real estate and became a CPM (Certified Property Manager) through the Institute of Real Estate Management. Ashley holds a BBA in Business Administration in Management Information Systems through Sam Houston State University and an MBA from Texas A&M UniversityCommerce.
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Tenant Communication, Workforce Development
The Evolving Community Manager Role
and How They are Welcoming Tenants Back to the Office
By: Jennifer (Ortiz) Fierro, Zeller
In property management, there are specific scenarios one can prepare for. Yearly fire drills are performed, preventative maintenance for the building is completed, and quarterly life safety meetings are held. In addition, standard operating procedures are in place with action to take in case of an emergency. However, a worldwide pandemic is something no one anticipates. While the world was focused on direction from the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), tenants quickly lean to property management teams for support in navigating this “new normal”.
Unexpected Challenges When shelter in place orders were issued, many questioned what effect this would have on the commercial real estate industry. With employees not coming into the office, what would this mean for the property management team, especially those whose roles focus on tenant services and engagement. How could we continue to provide the same level of service to tenants from a distance? Community Engagement Manager with Zeller Adriana Bibbs said, “Learning methods to keep social connections ‘alive’ while distancing has been the most challenging task, and re-engaging tenants who have not been in an office setting for a year, has proven to be just as challenging as tenants attempt to reacclimate themselves into their new day-to-day.” With all the challenges presented, we took this as an opportunity to provide exceptional service to tenants from a distance. Lack of supplies was an unexpected challenge for many tenants. Stepping up to assist tenants in finding personal protective equipment such as face masks, hand sanitizers, and office desk barriers was one of our top priorities. The best kind of service one can provide to tenants is the type that can be adjusted based on the current challenges. The best solutions to these challenges required the willingness to step outside our comfort zones and find new solutions.
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COMMUNICATION IS KEY We hear that ‘Communication is key in all relationships.’ In the landlord and tenant relationship, that also applies. As information from WHO and the CDC was continuously changing, property teams would have to quickly adjust cleaning protocol and building policies. Informing tenants as soon as possible about any building-related information updates was essential to stay ahead of all potential concern’s tenants may have. With everyone working from home, constant communication became necessary. Most tenants were coming into the office on a rotating schedule. Discovering an efficient process to communicate information with more than just the primary office contacts became a new assignment for on-site teams. Tashe Woods, Community Engagement Manager with Cousins Properties, said “Tenant communication plays the largest role in my daily responsibilities. -- We believe that consistent and clear communication is the key to building relationships at our properties. We use our customer app to communicate construction updates, building events, neighborhood news, property announcements, restaurant & retail advertisements, COVID-19 changes, amenities updates, and more.” The frequency and method by which the information was distributed changed dependent on the information shared. We always wanted to make sure tenants were comfortable and aware of what was happening at the office building, even if they were not physically present. Surveys were an essential tool when addressing tenant concerns. This involved taking a list of possible most common questions or concerns and outlining them in a survey to better understand a tenant’s level of comfort, needs, and intentions to return to the office. Surveys allowed the property management team to prepare well ahead for tenants’ return. Surveys also gave tenants the opportunity to share their input on the satisfaction of services.
Changes to the roles The tenant service coordinator role is an outward-facing position of the property management team. It is primarily driven by interaction with tenants and focuses on creating exceptional experiences for employees at work. While there was a decline in day-to-day inquiries and tenant front tasks, the work did not stop. “While tenants worked from home, we capitalized on the opportunity to complete construction projects, make upgrades to our buildings, and brainstorm innovative value-add programming,” Woods said. “We wanted our tenants to return to a refreshed environment with new amenities, enhanced HVAC, safer co-working spaces, contactless navigation, increased cleaning methods, and unique & safe social engagements.” A typical day prior to the pandemic would consist of a tenant driving into the parking garage, walking through the building lobby greeted by the security team, and walking fast to catch the next elevator. Lunchtime rolls around, and they head to the building fitness center for a quick workout and then grab lunch at the café before heading up back upstairs to finish the rest of their workday. All of these are building services provided to a tenant daily. How can we continue to offer the same services to tenants as they return to office? Services have also expanded, and many tenant service coordinators are beginning to fulfill new roles to ensure a positive tenant experience. “Our tenant service coordinator position has gotten more creative in order to stay in front of the tenants,” Anita Scarborough with Lincoln Property Company said. “One of the services we provide to the tenants is notarizing documents. I am a notary, but since I am often at different sites, the TSC recently got his notary so he could fill that duty when I am not in the office.” Tenant needs have not changed, they have just evolved. As tenants begin to return to their spaces, they know they will not be walking into the same building they left 16 months ago. It has become a mission to find solutions that allow tenants to return to a building operating as prior, but still addressing their new concerns. Researching new cleaning policies, new technology for amenity centers, and staying up to date with CDC recommendations have been the most significant changes in tenant service roles. Scarborough said this adaptive training is imperative to ensuring proper communication and a safe return to office. “Adapting, adapting, adapting. Our role changes constantly and no two days are ever the same. Providing trained and responsive staff to respond to tenants comfort and needs timely is our ultimate goal,” Scarborough said.
Return to Work Many tenants expressed similar concerns at the start of the pandemic: “Is the building remaining open?” “What are some of the precautions we are taking to ensure tenants are safe?” As tenants prepare to return to the office, Woods said they were often asked what they were doing to make the building safe for return. This is the number one question many in the CRE industry have received. Virtual town hall meetings for tenants are a great way to connect with tenants and further understand their return to office plans, schedules, and objectives. It gives the property management teams a chance to answer just ‘what is being done to make the building safe for return.’
As tenants return to the office, we are treating it as a new tenant moving in, welcoming them to the building. Having a standard return to office handbook with common questions or concerns regarding building hours, cleaning procedures, air filtration, amenity updates, and updated forms can help for a smooth transition. The town hall meeting is also a perfect opportunity to roll out any new building policies and remind tenants of the building procedures in place. “Whether it is an odd smell and a sighting of ants, I find that addressing a concern quickly, and in person, when possible, the landlord/tenant relationships grows. The tenants know we care, and we will do what is needed to find a resolution,” Scarborough said. With preparing for tenants to return to work, it is important to communicate that the property team is keeping their main question in mind. “Our tenants can comfortably return to the office knowing that we have increased our disinfecting/air quality & standard cleaning protocols, configured common workspaces to allow for social distancing, and follow the latest CDC guidelines for commercial offices.” Woods said. As most people have been working from the comfort of their own home the past year and a half, enjoying commute-free mornings and the flexibility to work from pretty much anywhere, shifting employees back into the office has become a top priority for employers. It has proven to be a challenging task. Especially for tenants who are still allowing employees to come voluntarily. How do we make employees want to come into the office? By addressing tenants’ comfort, incentives and providing services that a tenant cannot receive at home. Woods mentions her building uses a tenant app to inform tenants on building improvements and information on partnerships such as Copiana and Bee Downtown to launch sustainable, outdoor team-building activations, enticing them to return to the office for social connections. “The efforts being made to excite tenants’ return to office have been challenging. As we navigate through the ‘new normal,’ many tenants are attempting to return to work with a completely new mindset and work environment,” Bibbs said. “Although incentives help to ease the worry of returning to office, reengaging tenants’ employees include planning events that cater to re-socializing employees and allowing them to experience life outside of the office.”
What is the future of any Tenant Service Role? The pandemic showed just how essential the landlord and tenant relationship are. Tenant service coordinators, community engagement managers, and building concierges are primary roles in enhancing daily tenant experiences. Making the office appealing to employees is becoming a motivator when decision-makers are choosing a location to office out of. As the commercial real estate industry is focused on engaging tenants to return to the office, there could be an increase in demand for tenant service-focused roles for property management teams.
About the Author Jennifer (Ortiz) Fierro has been a Tenant Service Coordinator for Zeller for 2 years. She began her career in real estate six years ago in residential real estate management. She transitioned into commercial real estate in 2019. She has been and member of BOMA Georgia for the last year and half. www.creinsightjournal.com
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Technology
Bringing Technology to the Tenant Experience The CODA Building
World’s largest spiral staircase at the CODA building. Photo Credit :Portman Management
By: Jacob Ruppel, Portman Management When it comes to the topic of tenant experience, CODA is doing something a little different. John Portman Jr. believed in the ideas of collaboration and innovation. John Portman and Associates designed a building based solely on those two principles. The roughly 700,000 sq ft. office building located at 756 West Peachtree St. brings something to our tenants they have never seen before. Our collaborative core is 17 floors of common area connected by a stunning continuous spiral staircase which tenants can travel from floor to floor. Broken into six different “neighborhoods,” the core offers unique and vibrant spaces to work, play, or relax. Our customers have taken exceedingly well to this space. Portman wanted to forge an environment to inspire creativity through collaboration. This collaboration happens when all parties can openly share ideas, which happens best when everyone is relaxed. We designed spaces where the comforts of home are here in the workplace. We made it a more natural habitat for our tenants in every way possible, understanding that everyone is different. The various types of work/ break areas mirror our uniqueness and allow everyone to find their home in space in CODA. You can see on a walk through of CODA tenants are gathered around a whiteboard to solve X in an equation filling the entire board. On another floor, a group of co-workers breaking bread with members from another company, all enjoying a bite from one of our restaurants in the Collective Food Hall. And still, on another floor, you can find your solo habitants taking a minute to get away from it all and take in the incredible view of Georgia Tech Campus from 20 stories above street level. Scenes such as exciting, dynamic spaces (the swings on the 9th floor) and inviting niches (the banquet cubes on the 12th floor) create this nurturing environment for people to come together.
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The second principle is innovation. We wanted to do something that has never been done before and encourages others to do the same. Since the beginning, Portman held conversations with our anchor tenant, Georgia Institute of Technology, about energy efficiency in an office building. The bridging of a tech-forward clientele and a Platinum energy-rated office building began to emerge. With the combination of new, state-of-the-art technology and time-tested energy practices, Portman created a one-of-a-kind building that can finally provide the data necessary for our tenants to push forward into the ever-growing effort to save energy. The idea was a single pane of glass. We desired more intelligent control and management over our assets and facilities, but we wanted to do this through one platform. This approach is where the Hepta team and their EntroCim product came into play. We applied the same principles they created for data centers around the country. Hepta created a first-of-its-kind software solution providing facility stakeholders with all the information they need to ensure the safe, optimized operation of the most critical aspects of our property. EntroCim is not new technology, and Hepta has been growing it for a while now. We use this analytical platform to control our building systems and provide a customer portal where the building tenants can see energy consumption and building operations. This technology provided what CODA needed for the relationship and insight our tenants wanted. They can view space conditions and complex equipment operations for research purposes. Chilled beams and hydronic heating and cooling are some of the timetested technologies used in the CODA building and are still considered one of the most efficient and consistent ways of controlling space temp. Sensors and pump modules (a package consisting of a pump, a VFD, and an actuating valve package) are used to sample and measure tenant areas then fed into the algorithm that decides what temperature water is required to heat or cool. Pack this technology in with the two heat recovery Chillers, which recover energy from the condenser to heat the
building and, the 4 DOAS (dedicated outside air systems) that provide 100% fresh and conditioned outside air while also recovering heat from the building; CODA delivers a safer and more comfortable environment to our customers. CODA provides several sources of green energy to our customers, as well. We use reclamation heat from DataBank (the 80,000 square feet of high-performance computing space/data center) and a groundwater/ rainwater reclamation system providing water to our landscaping and cooling towers. ViewGlass’s self-tinting windows run throughout the core to minimize the solar load on the building, leading to better efficiency. We also decreased our elevator footprint by 25% while maintaining the same conveyance capacity and transporting 40% more passengers. Less elevator space equals more leasable space for tenants. We utilize the nation’s first TWIN passenger elevator system with two independent cars, one on top of the other, in one shaft. It also lets you introduce brand-new traffic concepts while setting a new standard in high performance. Our tenants can feel cozy and contented, allowing them to worry less and innovate more. This new take on an office building stirs the creative juices in our cohabitants and drives for prosperous effects in work and wellbeing. And when all that brainpower needs refueling, CODA has that covered as well.
driven cocktail bar in Atlanta. You can also wind down on Fridays with live music in the plaza and movie nights on the roof during the warmer seasons. The Portman team strives to facilitate the best workspace in Atlanta. We hone our exceptional standards in service, making use of the technologically advanced Class T building and the home-feel environment to provide the best customer experience. The key to the future of tenant experiences is resilience and flexibility while maintaining the successful mantra of tenant-first. Here at CODA, we are on the first line in the new age of the workplace, leading the way to healthier and happier tenants.
About the Author Jacob Ruppel is the Assistant Chief Engineer for Portman Management Group in the CODA Tech Building. He has been with CODA from construction. He has been in the industry for close to eight years, working with Fifth Street, Regent Partners, and Cousins Properties. Ruppel is an Atlanta native and live in Marietta with his wife, and just gave birth to his first child. He enjoys music, cooking, carpentry, and the outdoors.
Our chef-driven food hall, the Collective, is open to the public and quells even the pickiest of appetites! Your options span from Aviva’s homemade Mediterranean cuisine to Poke Burri’s inventive sushi, and Burro Pollo’s ceviches and cervezas to SmoQue Burger’s BBQ-inspired patties. Live Wire Coffee is there with a quick yet custom-made boost for a morning jump-start or the afternoon pick me up with caffeine or cake. When it is quiting’ time, grab a crafted cocktail coupled with a science experiment at By Weight and Measure, the new technique-
Want to know more about tenant experience and the return to the office?
Tools for Making Tenants Feel Safe and Welcome In this video, Kinsey Hinkson with Granite Properties explains the tactics her organization has used to make tenants feel safe returning to the building. By using honesty and research, property managers can ensure that their tenants understand all of the protocols and processes involved with re-entry.
Scan to Watch Video
Understanding Tenant Apprehension in the Return to Office
Some tenants are ready to return while others may have a few apprehensions about the building, their office and their coworkers. In this video, Kinsey Hinkson with Granite Properties discusses how to be compassionate to those needs and how to make your tenants feel comfortable returning to your building.
Scan to Watch Video www.creinsightjournal.com
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Office
Attracting Talent and Tenants in the “Multiverse of Work”
By: Phil Mobley, Avison Young Over the past decade, users of commercial space have increasingly viewed their locations and spaces through the lens of talent optimization: Attracting it, retaining it, and getting the most out of it while at “work.” The most forward-looking companies looked at their workplaces not just as places to gather, but as a vital support system for their people. To help their tenants deliver these high-performance, experiencefocused workplaces, building owners and managers ramped up their focus on amenities, both physical and digital. This came at a cost, of course. But in the context of competition for talent—and, by extension, lease deals—the investment was a bargain. Or so everyone in commercial real estate thought until the COVID-19 pandemic forced most knowledge workers to retreat to their homes, many of them for a year or more. Now, some companies—especially the big tech firms who have long been at the forefront of workplace design—are selling a new twist on the workplace as a recruiting tool: The flexibility to work remotely. Remote work is not new. According to a 2020 survey by Global Workplace Analytics (GWA), about a third of knowledge workers worked remotely at least one day per week before the pandemic. Now, three quarters of them want to keep it up. And a Gartner study suggested that 60 percent would only consider a job that offered remote flexibility. Has remote work rendered obsolete the kind of human-centered workplaces that cutting-edge employers have been building for the last few years? It now appears that the CRE industry will avoid the nightmare “death of the office” scenario. But the picture remains cloudy. In a systematic review of years of academic research and business data collected both before and during
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Tenant Experience Guide | October 2021
the pandemic, Avison Young uncovered some principles that will guide the next evolution of workplaces optimized for human performance. We call it “The Multiverse of Work.”
Why do we still need offices? To the amazement of many, knowledge workers were quite productive at home during the pandemic. But maybe this should not have been so surprising. Academic research had already shown that, under the right circumstances, remote work could be a productivity accelerator. Ctrip, a Shanghai-based travel agency, conducted an experiment in 2013 that showed a 13% productivity gain among call center employees who started working remotely. When the company later opened the remote option to more employees, they saw an even bigger boost. They also reported higher job satisfaction and lower attrition. But the full story is more complicated. Call center work is less complex and collaborative than most other knowledge work, not to mention easier to measure. Ctrip’s results may not be generalizable. Furthermore, employees who worked remotely were less likely to be promoted, and when given the choice, half of them went back to the office. Other research suggests that workers spending too much time (more than about 50 percent) remote start to lose connections with coworkers and supervisors, to the detriment of performance. Pandemic-era surveys also showed nuanced results. In the GWA survey cited above, only about one in every six knowledge workers sought to be remote every day, with the vast majority wanting the ability to go to an office at least occasionally. And according to workplace research firm Leesman, workers want to split their time roughly evenly between home (or another convenient remote location) and the office.
One reason for this is that not everyone has had as uniformly positive an experience working remotely. GWA has shown that, while 70 percent of all workers feel successful working at home, less than half of Gen-Zers (those under 25 who are currently entry-level employees) do. Leesman’s research has revealed that these younger workers actually want more time in the office than their older counterparts. It stands to reason that a generation of workers who are more likely to live in smaller spaces with more people around them would therefore find it more difficult to create good workspaces at home. Age is just one dimension. There are other challenges, including technology. For example, a 2020 Stanford study found that about a third of workers lack a reliable broadband connection capable of supporting video conferencing. For workers with technical challenges, unwieldy space configurations, and family or roommate distractions at home, access to an office is vital to success. Serving the segment of workers who desperately need a dedicated workplace is not the only benefit of the office. For nearly all workers, corporate workplaces meet a broader spectrum of workplace needs far more fully than home offices can. The reasons for this are intuitive. Reliable broadband and a quiet place to focus are workplace analogs to the basic needs for food, clothing, and shelter at the bottom of Abraham Maslow’s famed hierarchy. But higher-order needs for belongingness and recognition are just as important in the context of work as they are more generally. Without them, people cannot perform at their best.
Does workplace quality really matter? In short, workers want the flexibility to work both remotely and at the office. And offices are optimal for some workers all the time and for all workers some of the time. Thus, the existence of a variety of workplaces is important. But what about the quality of those workplaces? It turns out that quality is also crucial, both remote and at the office. According to Leesman, when workers have an inadequate home working setup—if, for example, they cannot close the door to a dedicated space, or they lack technical or ergonomic equipment—they will spend more time in the office than they might otherwise want. In that sense, a poor work environment at home pushes people to the office. In another sense, a great office can also pull people in. In Leesman’s analysis of one organization’s different locations, they found that those working at the high-performing office (as measured by their proprietary Leesman Index) wanted to spend most of their workdays there. By contrast, those relegated to the low-performing office wanted to work remotely more often than not.
What will life in the Multiverse look like? What will this look like for knowledge workers? There is certainly no single answer. Companies in different industries will have different answers, and those competing in the same industry will doubtless experiment with various workplace models to attract talented workers. But we can already place bets on some consistent themes that are likely to emerge.
First is a renewed focus on wellness. In the post-pandemic world, this will have many aspects, from air quality to mental health to surface cleaning to ergonomics. As just one data point, consider Herman Miller’s finding that 85 percent of people are experiencing at least some physical discomfort while working remotely! Long after COVID protocols have receded, the importance of wellness in the workplace will remain. A second theme is workplaces fit more for the purpose of collaborative work, rather than simply a place to warehouse people doing individual tasks. The key word is choice, which here applies not only to where and when to come to the office, but also how to work once there. The best offices will offer a variety of work modes within the space (through, for example, providing various “neighborhoods”). Importantly, purpose-built offices must still include dedicated space for focus work! It may be true enough that not everyone will need an assigned desk. Yet even if intentional collaboration will be the main reason for coming to the office, people still need spaces to detach, if only for a short amount of time. Neglecting this need will sabotage any office. The rise of various flexible office solutions will be a third hallmark of the Multiverse. Many tenants will try to reduce their footprints to optimize for a smaller number of every-day attendees at the office. But managing the ebbs and flows will be a huge challenge, and landlords that offer flexible suites or coworking areas onsite or nearby could be at an advantage. The suburbs could be another opportunity for flex offerings to flourish. As noted above, some workers need an office more frequently than others, but they may still want to avoid a soul-crushing daily commute. Companies that support these workers with flexible near-home solutions will be well positioned to retain them. Finally, expect an accelerated focus on PropTech. Making the most out of future workplaces will require technology to manage and measure access, utilization, and health. And the need for clear, seamless communication between building owners/operators and occupants has never been more apparent. These areas represent opportunities for tighter collaboration between landlords and their customers, possibly including sharing both data and the cost of implementation. The future world of knowledge work will be far more expansive than most people imagined just a few years ago. It will align not only with worker preferences for flexibility, but also with better results through optimal human performance. The solutions will be complex. But companies and buildings that execute it well will reap the reward of attracting the best and brightest to their spaces.
About the Author Phil Mobley has served the commercial real estate (CRE) industry as a researcher and consultant for over 15 years. He specializes in providing analyses that help the industry deliver high-value workplaces for tenants, a need that continues to evolve. As Director of US Occupier Research at Avison Young, Phil shapes and leads the firm’s approach to understanding occupiers’ businesses and their dynamic need for commercial space. His work supports multiple service lines by identifying new ways to meet both landlord and occupier client needs.
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11
Tenant Communication
Three TOPICS ESSENTIAL TO THE TENANT SATISFACTION SURVEY By: Molly Looman, BOMA Georgia Tenant satisfaction surveys are an essential tool for property managers looking to improve their properties. Surveys can reveal gaps in the tenant experience, unknown maintenance challenges, or areas of opportunity. The data gained from these surveys can help property teams improve spaces and stay occupied.
This is also a time to engaged the building engineering staff in the creation and review of a tenant survey. There may be a new system they want feedback on, or they may benefit from hearing about different tenant pain points. This could lead to creative problem solving that could benefit the tenant and the buildings.
Here are the three topics that should be addressed in your tenant satisfaction survey.
This is also the opportunity to ask about the tenant’s experience with the work order system. Whether it is paying rent or requesting maintenance, getting feedback about your tenant portal can either ensure its running smoothly or uncover a system issue. This is an easy way to double-check a system in your building is working as expected.
Maintenance Many tenants may have a strong feeling about the maintenance process in their building one way or another. The tenant satisfaction survey is a great place to identify repeating issues or confirm that a system is working well. Asking tenants if they have been satisfied with their maintenance experience is essential.
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Tenant Experience Guide | October 2021
If the tenant provides constructive criticism and the same issue is seen multiple times, that may be an opportunity for growth and re-evaluation of a certain system’s operations. If the feedback is consistently positive, this may be a great place to ask for a review that can be publicly shared. Make sure to review results with maintenance and building engineering staff so that they can offer insights on the comments and coordinate a plan moving forward.
Leasing An anonymous tenant satisfaction survey is a great place to ask tenants what they want to see in the property. Perhaps there have been needs or desires that they have not shared with the property team before but asking directly may provide more results. Ask about what amenities might be worth a rent increase or what their dream space might look like. Ask them what their priorities are whether it be environmental, convenience, or price. Asking direct questions that leave space for longer feedback will help property teams identify the long-term needs of the tenants in their building. After the COVID-19 pandemic, surveys became extremely useful in figuring out tenant’s returnto-work plans, their desire for extra cleaning, their ability to pay for enhanced air quality or surface treatment and other health and safety factors that affect the building and the tenants.
People With so many plates spinning, it can sometimes be difficult for a property manager to keep up with the tenants’ satisfaction given the multitude of staff that works on a property. A tenant survey is a great way to gain feedback, not only on the staff that maintains the property but on the property management team itself. Find out if there are issues with response times, efficiency, or even friendliness. There may be a process that could use a review. Overall, the purpose of the tenant satisfaction survey can help identify if the management is providing a positive experience and if the level of communication is where it needs to be. This is a great tool for finding out if the property team needs to spend more time in the building and whether or not your tenants feel your presence. As a leader, you can use this tool to discover the extent to which different property managers are achieving their goals at their properties. While tenant surveys should never be the sole factor in deciding performance, they can validate a team member’s success. This can also help advise your staffing needs. Maybe the results will indicate you are over or understaffing a property. Maybe they will indicate the need for a new position like a receptionist. It could also show a need for a change in workflow or communication if tenants feel their requests are not being dealt with in a timely manner. While not all the feedback will be actionable on the hiring front, it can be good to keep track of sentiments surrounding that topic over a number of years.
Helpful Hints What you cover in the survey is just as important as how you ask it. Shy away from yes or no questions and phrase questions on a disagree to agree sliding scale. If it is a yes or no question, consider having a text box for longer feedback or asking open-ended questions. Remember to keep the length of the survey and the frequency of the survey reasonable so that participants fill it out completely. Consider using incentives like a raffle or a gift card for participants that complete the survey. The larger the sample size, the more accurate a read a property manager will get on the state of their building’s management and operations. Be sure to make sure the survey requests feedback on actionable items while leaving a comment section for other thoughts the participant my have. You don’t want to request feedback on something that is unchangeable. An effective survey requests actionable information that helps participants feel heard.
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13
Financial Management
Real Estate Trends for the 2022 Budget By: Becky Hanner, Hanner Commercial Asset Services Being the smart property manager that you are, you already knew to pour that cup of strong coffee, block off a large portion of your day, hit ‘do-not-disturb’ on your phone and find a quiet area to focus solely on budgets. This is a good thing too, because 2022 is not a normal budget year! But before we get into real estate trends you might wish to consider to include in the 2022 year, let’s review some budgeting basics.
during development, tenant renovations or simple miscalculations. If your building is 100,000 square feet and an additional 2,000 square feet is found, this could equate to added future revenue. A conservative $20.00 per square foot rental rate would bring additional revenue of $40,000 per year. A 5% cap rate adds $800,000 value to the asset. The cost to remeasure is minimal – approximately $4,000 for a building of this size.
Remember who your customer is and what their goals and objectives are. If you enter into this process in a mechanical fashion - auto-drive, if you will - then you most certainly will miss your mark. Be certain you are clear on what the property owner wishes to accomplish this coming year so you can implement these objectives into the budget. Owner’s goals change, and you may find a completely different mindset for the property than previous approaches, so don’t assume you know the direction of the property until you have this discussion.
After considering these budgeting basics, what real estate trends do you need to consider for the 2022 year?
Your 2020 actual likely missed its target due to COVID-19. Perhaps your utilities were less than anticipated due to having fewer people in your building. Conceivably your cleaning expenses were higher due to intense cleaning practices. OR maybe you were able to normalize operating expenses by strategically working on special projects. When it was time to start the 2021 budgeting process, you may have budgeted additional costs into the budget to continue the higher standard janitorial and antiseptic surface coverings or perhaps you anticipated higher security and insurance costs. No matter where your 2021 actual to budget compares, your historical data over the past two years could be skewed. Many property managers tackle budgets based on historical data. For 2022 you might consider developing a zero-based budget rather than viewing each line item on recent history. This will help you look at each income and expense item through a different lens and may afford you the possibility of achieving greater income potential or discover areas for expense savings. As an example, a strategic action for the property could be to have it professionally measured to the latest BOMA standard. For office, that currently is the 2017 standard or “BOMA/ANSI Z65.1 2017”. Measurement professionals have found that buildings grow an average of 2-3% when remeasured due to minor construction modifications
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Tenant Experience Guide | October 2021
Three things you will need to give thought to are 1) health and wellness; 2) technology; and 3) amenities. These three things are high on the list of your prospective tenants wants. In fact, you may have noticed that HR is more involved in site selection than ever before because the company location is a recruiting tool. Workers want to work for a good company, but they also want to be somewhere they wish to work. Your building will have a better competitive edge if it has or is implementing the following three things.
Health and Wellness The desire for health and wellness has escalated over the past two years. Don’t confuse this with LEED or BOMA 360. Buildings that have achieved a LEED rating is because of sustainability achievements. Building best practices are demonstrated by obtaining the BOMA 360 recognition. A WELL or Fitwell certification will show the property owner’s support for the building occupant’s comfort and well-being. Entering into a program focused on health and wellness will help you attract tenants as well as appeal to your current tenants. While tenants are focused on building health and safety, don’t forget that sustainability and best practices are also very important. Any time your property management team engages to achieve any one of these recognitions, they learn more about the building they manage. This process will help them focus on opportunities or gaps in their operational strategy. This is truly a bonus and will help your team’s case their skills and knowledge, plus be a great marketing tool for your property.
Technology There is a plethora of technology available in commercial real estate. How do you know which to consider for your property? One thing is certain, your tenants and prospects expect a modernized building. The good news is that once you choose and implement a technology, your staff should gain efficiencies in building operations, increase tenant satisfaction and be provided with powerful analytics. Think back on how you ran your building before you had a building automation system (BAS). Reflect on how much more efficiently your building runs through the BAS. Your tenants are more satisfied and your team has data to analyze regarding building hours and utility use. Implementing the BAS system was a ‘win’ for your property. Determine what needs you and your team have when deciding which technology to implement. Try to implement one technology each year. For example, you might wish to consider sensors in certain areas of your building to see how frequently certain areas are utilized. Prior to the pandemic many property owners threw money at hard amenities such as fitness centers which were rarely used. They were simply checking a box. Sensors could provide data needed to justify repurposing the fitness space into a leased space. If you don’t have an electronic accounts payable system perhaps this is the technology you wish to implement to eliminate paper invoices, minimize the frequency of human touches needed to process an invoice and the ease with which to process. Consider what pain points you have in your building or your operations and consider technologies that can streamline and provide your staff efficiencies.
Amenities As building occupants come back to the workplace, they want the same amenities they enjoyed before the pandemic, but they also want the conveniences they enjoyed at home. It is up to the building owners and managers to create an environment that not only gives workers satisfaction but also engages them. The in-place fitness
centers and cafes may not be the answer since workers’ desires have evolved over the past two years. Creating events has become an integral expectation of the property management staff. Now is the time to consider every unique space you have in and out of the building as a potential amenity space. A lobby or fitness center could become a collaboration area, and imagine your café split up into flexible space with a portion designated for bicycle racking. Your grounds and parking area are your blue ocean. Yes, you need to ensure your building occupants have a place to park, but think of the many varied food and service amenities you can alternate through your outside area. There are technology platforms such as MOBLZ and Go Amenity that provide the platform to handle and coordinate these services and save your staff time. Consider having a ‘health day’ at your park where you have chiropractic service, blood drive and massage service with your food trucks. On another day your theme might be hobby day with food trucks, bicycle repair, and fly-fishing lessons. Other thoughts are beauty days with haircuts, tanning and nail salons. Or have special day events like Valentine’s Day with candy, flowers and gifts. In conclusion, budgeting for 2022 will be a challenge. The pandemic has altered our original plans and accelerated initiatives. Tenants are expecting more and are not pushing back on reasonable operating expense increases for trending technology focused on health, wellness and amenities. Be very deliberate and thoughtful as you review every budget line item to differentiate your building. Envision where you want your asset to stand in the market in the coming 2022 year.
About the Author
Becky Hanner is a recognized thought leader known for growing businesses while positively cultivating internal and external relationships. Becky has been in commercial real estate for 30 years. A skilled mentor, Becky develops a strong work culture focused on high expectations, collaboration, and quality service delivery, and achieving process improvements through employee engagement.
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15
Tenant Experience, Operations & Maintenance
Behind the Curtain Challenges and Opportunities with Increased Tenant Transparency By: Scott Baker, Baker Engineering While energy performance has been the focus for most building owners, property managers, and building engineers for many years, there is now more of a push to see this reported. In recent years, Environmental, Social, and Governance (ESG) reporting has had a swift uptick. For commercial real estate, this means reporting on our energy, emissions, water, and waste data as well as certifications earned at our buildings. Most of the requests for this data appear to be driven by building owners for either ESG reporting or internal reporting, but we are also seeing more tenants are requesting this data. These requests tend to be from tenants that are from national and international companies who are likely now reporting their ESG data. According to a November 2020 MarketWatch article, ESG investment “now represents 33% of the $51.4 trillion in total U.S. assets under professional management.” This has increased 42% from 2018.1
CREATING THE BENCHMARK One of the most popular ESG reporting assessments, GRESB2, was launched in 2009 with a focus on the real estate sector. For the environmental portion of the assessment, the topics include energy, emissions, water, waste, and health/wellness. It covers performance using energy, water, and waste data while also tracking leading indicators that include audits and certifications for energy, water, waste, and health/wellness. While the commercial office sector is a little more streamlined for reporting this data, as main utility meters are typically invoiced to the building owner or property manager, industrial and retail buildings are more difficult to report. In many of these buildings, utilities may have triple-net leases which limit access to energy and water data for building owners. In these buildings, property teams typically ask the
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Tenant Experience Guide | October 2021
tenants for their energy and water data for reporting. Considering data confidentiality and availability at the local store/branch level as well as a lack of understanding as to why this is needed, this can be a difficult proposition. Given such, many property managers will pitch the data request directly to the tenant by encouraging a partnership to reduce both energy consumption and cost. They may also provide assistance in reviewing energy and water efficiency projects that can help the tenant’s bottom line while also improving the environmental performance for the building owner. In most major cities in the United States, mandatory energy and emissions benchmarking programs have been introduced through local laws or ordinances. A map and list of these cities can be found through the Environmental Protection Agency’s website3. In addition, in June of this year, the House of Representatives passed legislation that would require public companies to disclose ESG metrics. If passed into law, this would require publicly traded companies to report on energy and emissions. All such laws and ordinances require more transparency around this environmental data, whether at the building or portfolio level. When it comes to public disclosure and reporting, the market and legislation are currently in sync. Most of the local laws and ordinances require use of the Environmental Protection Agency’s ENERGY STAR® Portfolio Manager4 - a free online tool - to benchmark and submit energy, water, and emissions data. This tool takes in inputs of energy data and building characteristics including building size, hours, and occupancy data and then for eligible property types will produce a 1-100 score. This score shows a comparison of the input property against the large data set of properties used to create the scoring calculation.
Tenant Disclosure
Preparing for New Territory
At the building level, environmental performance disclosure provides transparency for tenants to take operating expenses and building energy performance into consideration when choosing their new office location(s). For larger national or international companies, disclosure at the building level helps tenants to compare branches across their portfolio as well. In many of these markets, potential tenants need to seek out this information on their own or through their leasing agent or broker. Some cities are taking this disclosure a step further. For example, in 2018, New York City passed Local Law 335, which takes the required building emissions reporting and assigns a letter grade based on the ENERGY STAR® score mentioned above. Much like restaurant inspection scores are available to restaurant patrons, these scores are displayed at the building entrance to inform occupants of the energy performance of their building.
In addition to proactive communication, being ready to address tenant requests around wellness is a good idea. The vendors serving commercial real estate can be leaned on to help provide answers and strategies around some of the questions tenants might ask, such as “What is the air exchange rate in the building and how many CFM of outside air is my space getting?”. They may also ask about advanced filtration systems and sanitization systems; understanding some of those technologies can facilitate good discussions. Another common question is around cleaning protocols. Having information from your vendor showing how the building has addressed cleaning in tenant spaces as well as restrooms, common areas, cafes, etc. can help put tenants at ease as they are returning or planning a return to the office.
In a few local jurisdictions, energy and emissions benchmarking is also being used as a steppingstone towards emissions reductions. New York City, Boston, and Washington DC have implemented legislation aimed at reducing emissions. New York City has a goal to reduce emissions by 80% by the year 2050 and puts the responsibility at the building level to meet this requirement through Local Law 97. Washington DC plans to have a 100% renewable energy grid by 2032. Boston requires a 15% emissions reduction or an energy assessment can be performed to help guide buildings towards meeting future emissions reduction requirements. As these laws and ordinances build momentum, it will require landlords and tenants to work together to reduce energy consumption and emissions as building owners, property managers, and building engineers alone cannot achieve many of these metrics.
At the portfolio level, environmental performance disclosure allows for investors to make more informed decisions if environmental, social, and governance issues are important to them . If climate change continues to be a focal point in the market, ESG reporting will included as a normal part of our job descriptions. The other major area of transparency right now is around health and wellness. As building occupants are returning to the office in larger numbers, many want to stay informed as to what the building owner and property management teams are doing at their buildings to ensure their health and safety. Many property managers are being proactive in their communication to tenants by discussing how they have changed operations at their buildings. Such changes might include running building systems early and late to flush them out, increasing ventilation rates to dilute air recirculated in buildings, increasing filtration MERV ratings in their systems to filter out more particulate matter, implementing new technologies targeting virus and/or bacteria in the airstream, elevator distancing, touchless features within the building, and many others. If your property has undertaken Fitwel building certification, the Fitwel Viral Response Module, WELL Health-Safety Rating, or other wellness certification, promote this and add labels. In some cities such as Washington DC, annual indoor air quality (IAQ) testing is a requirement. If your building has performed this testing or adapted technology to add IAQ sensors into your buildings, be ready to share the results. If the data or information to be shared does not positively reflect the building, be ready to provide context in the communication.
While interviewing several people within the commercial real estate industry for this article, the topic of returning to normal came up. Specifically, what are the expectations for the future related to wellness and what impact do those have on the office spaces of today? Though the coronavirus pandemic is slowing down in the United States, many businesses are already thinking ahead to the next pandemic and developing solutions to allow for business continuity. Many of the practices implemented within commercial real estate, such as hand sanitizing, tenant cleaning, and new tenant layouts with wider spacing and more flexible space options, are expected to remain in place for the foreseeable future. As we move forward at our properties, being transparent and proactive while navigating a shifting landscape of environmental performance and health and wellness issues will be key to meeting the needs of our building owners, property managers, building engineers, tenants, and service vendors.
References: 1. https://www.marketwatch.com/story/esg-investingnow-accounts-for-one-third-of-total-u-s-assets-undermanagement-11605626611 2. https://gresb.com/ 3. https://www.energystar.gov/buildings/programadministrators/state-and-local-governments/see-federal-stateand-local-benchmarking-policies 4. https://www.energystar.gov/buildings/benchmark 5. https://www1.nyc.gov/site/nycaccelerator/resources/ll33. page About the Author Scott Baker oversees the Technical Services Department which focuses on Energy Sta Certifications, Energy Audits, Energy Modeling, Commissioning, Retro Commissioning, and LEED related engineering tasks. He has experience working with multiple rating systems including: LEED-NC, LEED-CS, LEED-CI, LEEDEBO&M, and ENERGY STAR®. Scott has more than 12 years of experience in HVAC systems design and commissioning. Scott has a Bachelor of Science in Mechanical Engineering Degree from the Georgia Institute of Technology.
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17
Design & Construction
By: Molly Looman, BOMA Georgia Other than the parking lot, the lobby is one of the few areas that almost every visitor to your property will see. There has been a recent revolution in lobby design. Commercial real estate professionals are beginning to bring the lobby from just a welcome area to an activated space in their property.
First Impressions How to Make Your Commercial Lobby Stand Out
No matter the size of building, there are a few ways to make a lobby give a great first impression and be an asset to tenants rather than just an architectural requirement.
Get Green Some lobbies are not built for gathering or large areas of seating, but there are still ways to make a lobby of any size feel relaxing and alive. One of the easiest ones is indoor landscaping. Many properties are beginning to fill their lobby with plants, indoor farming, and even smaller trees. Bringing the outdoors in can make a place feel more open, more aesthetically appealing, and provide positive environmental effects for your building. The “living wall” trend has shown that plants can be decorative and functional in a large space such as a lobby. Plants and greenery are a great strategy both for organizations starting a property fr3om scratch or those with existing buildings looking to make a change. Having small areas of indoor farming in your lobby such as an herb garden or hydroponic tower is also a great way to involve your tenants and visitors with the operations of the property, provide them with a bonus amenity and reflect the priorities of your management team.
Space to Work As the commercial real estate industry tries to discover the office of the future, one thing we know we need now is space. Many customers are leaving behind cubicles or even individual offices and opting for open space or even just options around the property for work. Lobbies are great areas to incorporate work stations and charging zones if you have space. Some buildings have conference tables, individual work pods, or even just a few standing counters in their lobbies as a way to provide the tenants with options to spread out and be productive. Lobbies are a blank slate that can be used to fill a direct need of a customer.
Plug into the Community Everyone that comes into your building may not be a tenant. There may be visitors, guests, or even tourists. No matter how much foot traffic you are getting through your lobby, it Is a great place to put something on display. This is an opportunity to connect with the community surrounding your property and support a local person or business. Maybe the team can work with local artists to host new art every month. Perhaps they can work with local makers and host a small farmer’s market. Maybe your lobby can project silent movies made by the local college film class. No matter the option, lobby space is a great way to give a local organization or person exposure to a new group of people. This strategy puts a face to your property and educates local citizens on how this building can be a part of their community and their lives. Sources https://www.naiop.org/en/Research-and-Publications/Magazine/2014/ Winter-2014/Marketing-Leasing/Activate-Your-Lobby https://archive.curbed.com/2019/4/30/18523586/office-spacecommercial-real-estate-wework-design
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Tenant Experience Guide | October 2021
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19
Tenant Experience
The Great Outdoors
The New Age of Commercial Outdoor Space
By: Dusty Muck, Rubbermaid Commercial Products The evolution of the workspace prior to the pandemic was evolving greatly as a new generation of workers were entering the workforce. The economy was buzzing and talent recruitment was critical in this competitive environment. The commercial real estate industry was playing a pivotal role in this process with their tenants. Properties were called on to provide the right environment to help engage the new talent entering the workforce. The incoming generation of workers had ideas different from those of the past. Motivating factors such as pay increases and healthcare benefits were not topping new hire lists. Instead, younger employees were looking for flexibility in scheduling and working environments. They were looking to be a part of a community and wanting to be a part of something larger than themselves. The CRE industry responded with open floor plans, collaborative work spaces, gardens and coffee shops. When the pandemic hit, thought leaders and experts rushed to compile and understand the data and what the consequences would be for the CRE industry. Moving in to 2021 and looking at 2022, we now have a clearer understanding of what the office will look like moving forward. Talent acquisition and retention, despite a global pandemic, remain a top priority for commercial real estate professionals across the country. A perfect example of the avant-garde is Stream Realty’s newlyconstructed property, The Interlock. The Interlock boasts of 200,000 square feet of office space coupled with retail, bars, hotel, a roof-top restaurant, and swimming pool, and even a state of the art, funky putt-putt course. “We really come from the focal point of retail. Which means we want people to drive by and see energy. You are more likely to come back and be a part of that. The idea is, I want people out eating, drinking, having fun. We were most focused on that,” Jeff Garrison, partner with SJ Collins Enterprises said. Garrison continued,”We always promoted patios and plazas, but we couldn’t get people in Atlanta to activate and gravitate (towards) them and spend money on them and it drove me crazy. Why? It was a lot of money and Atlanta is hot and they just didn’t put enough time and effort into it and there were not enough done really well that showed them the pathway to success. What happened is, COVID-19 has opened their eyes, they’ve seen how successful you can be and with very little money, you create a very active outdoor space. One that is not too hot, because Atlanta can get too hot. But they now know how to do it.”
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Tenant Experience Guide | October 2021
Tiffany Wilson, Director of Business Development, Gray Contracting, is experiencing this same change in philosophy. “Prior to the pandemic we were mainly focused on interior renovations, such as bathrooms, hallways, common areas. Now we are getting many requests for outside,” she said. “We even have very industrial spaces requesting green spaces of sort. The requests vary from awnings, benches, to lighting, and music and even food truck parking lots with eating spaces outdoors. “ Generations previous had limitations on their ability to create such environments but technology has brought advancements that have helped bring this development to life. The advancement in technology has created a major difference in structure and openness of properties. Higher ceilings and larger windows can create a sense of togetherness even in an indoor space. This is all due to advancements in technology and structural design that have changed the ways property teams can design and utilize their spaces. Jeff Garrison continued, “So in this building, the parking deck has 15 foot ceilings. If it is a traditional seven feet, that does not feel open and inviting. That technology didn’t exist when my granddad built their office space. It allows the indoor and outdoor space to blend and if I need to cut it off, it can be. They couldn’t build windows over a certain size, because structurally they didn’t know how to do it. Technology has allowed it. Part of it is technology advancements that structurally allow you to build indoor/outdoor space. “ “Take for example, this patio. We actually left this patio open. When you are walking on that corner, I want you to see these people having a good time. They used the space we wanted them to, by leaving it open. The hotel is the same. The building is linear, but we actually bent the building back, and from here, you can see the hotel and you can see the lights. That was purposeful, because from this corner, this is the busiest corner, we have like 75,000 eyeballs a day that are going to be looking at this. If those 75,000 are like, I don’t know what is going on at the Interlock, but it looks super cool. I want to know what is going on,” Garrison said. Garrison remarked on how building an outdoor community space goes beyond what is inside the property. He said that even the side walks need to reflect the collaborative and energetic environment a property team is trying to portray. By removing manhole covers, carefully pruning the trees and creating 30-foot wide sidewalks, it creates a space that feels safe, open and walkable.
Photo of The Interlock’s outdoor space. Credit: SJC Ventures A project such as this does not come without some significant hurdles. Investors may look curiously and suspiciously at plans with such large open spaces. Ultimately, investors want to see profitability.
“You have to activate it,” Moore said. “You have to hold the events, bring people there, make them feel comfortable, until they are ready to venture out on their own.”
Thus, they want to see profitability in every square foot and open designs with outdoor spaces means some space is not earning a rent in the short term.
Garrison said that the activation can also come from the tenants. In an active outdoor space, tenants may devise ways to help the property management team cultivate the culture they want at the property. He said that this can be the extra mile a property manager goes to activate the space. Property teams need to be thinking about how existing tenants and products can contribute to a larger vision for the property.
“What they (investors) first need to know is, the investment will pay dividends. People need to understand it does have value and it’s an intrinsic value which is creating energy and community for your place. It is tough for them to put a price on it, but when we will have an event, and people are having a great time, they are going to want to be here and they are going to spend money, but you really can’t underwrite it. So that is the challenge,” Garrison said. The challenge is, they have to show that it does build value and how that, in turn, will lead to higher rents. Garrison said that when you are creating positive energy, those community spaces can covert into sales. “The challenge is they have to show it does build value But having that energy, that vibe, people start paying higher rents. If you are dealing with a person who is primarily budget minded, it is a very challenging task. These community spaces create energy and that energy does convert in to sales. But it may not day one, right?,” Garrison said. Jess Moore, a property manager with Stream Realty said the key to a successful outdoor space is the property management. The team needs to be ready to show people how to use the space, how the space is different and create events that convince people to come to the space in the first place.
“The energy comes from a retailer expanding their space for open air eating. It activates the energy. A space to itself is just a dead open space. You need to go out and look at existing product and see how they are building value,” Garrison said. Creating an engaging outdoor space starts at the building design. Garrison said it would be difficult to do what they are executing now without the intentional design behind it. He said that you never want to get caught in a situation where a great idea comes after the property is built. That intentional thinking can be the difference between a fun space and a game-changing property.
About the Author Dusty Muck is an Account Manager for Rubbermaid Commercial
Products, providing washroom solutions, cleaning, waste/recycling, material handling, and food service products to Commercial Real Estate, Healthcare, Travel/Entertainment, Manufacturing, and Education facilities in Georgia. Dusty is currently Chair of the Membership Committee, a member of the Editorial Board, and works on the BOMA Government Affairs Committee, assisting strategies on legislative and regulatory matters affecting the commercial real estate industry in Georgia. www.creinsightjournal.com
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Indoor Air Quality
How Indoor Air Quality Affects the Tenant Experience
With contributions from indoor air quality experts from across the globe For several years NAFA and BOMA have collaborated to educate building owners and operators on the benefits of clean air. At BOMA’s request and for this article the question of how indoor air quality affects the tenant experience was posed to a group of subject matter experts with experience in the United States, Mexico and Australia, including those from the business side of the filtration industry and those in filtration research. The following are their responses, which offer some insight on how filtration could transform building IAQ in a post-pandemic world.
Nathan Wittman, CAFS, NCT President, National Air Filtration Association Vice President of Sales and Marketing, Filter Technology Company, Inc.
has prompted questions to property management specifically relating to facility maintenance practices, filtration levels, and most importantly demonstratable documentation regarding IAQ.
Prior to COVID-19 pandemic, tenants of commercial facilities operated under the assumption that the supplied air to their workspace and the general indoor air quality within a facility was “good” or “acceptable” for occupancy. Few occupants questioned property management and overall, the level of IAQ within a facility was taken for granted. A small percentage of commercial facilities pursued improvements in HVAC filtration and general IAQ. These investments were mainly focused on new equipment requirements, facility energy benefits, or longer service life products that may concurrently include higher levels of particulate capture efficiency. Additionally, many of these investments in improved filtration and IAQ were prompted by property ownership or management pursing larger certifications resulting in facility recognition. Generally, IAQ was a small portion of the larger plan. Overall occupants were unaware of the role filtration and IAQ impacts their experience within the workplace.
The tenants and occupants within workspaces are increasingly aware and knowledgeable regarding IAQ. Previously, perceived differences in IAQ only occurred in response to occupant comfort changes. Individual occupant experiences, some resulting from seasonal allergies, unfamiliar odors, or humidity and temperature changes generated IAQ complaints that were addressed by management on a case-by-case basis.
The COVID-19 pandemic has changed many areas of life, increased awareness and interest in indoor air quality is one of the primary items on that list. Tenants and occupants have increasingly sought out education regarding IAQ topics and the potential impact of how inadequate levels of both ventilation and filtration can negatively affect their comfort and perceived safety. Occupant awareness and knowledge
Today, due to higher levels of occupant education on these topics, the filtration industry, has seen both facility ownership demand improvements in filtration levels and a greater overall public demand for superior indoor air quality within the workplace. A larger percentage of tenants are now concerned about the air they breathe during the workday. They are also aware and understand there may be imperceivable differences between acceptable or unacceptable levels of IAQ unrelated to their comfort. These new concerns directly impact occupant satisfaction regarding their job, employer, and the facilities that maintain the indoor air quality in their workspace. Property management and ownership will need to proactively, rather than reactively, address tenant IAQ concerns from the overall facility operations level, rather than just a singular localized concern or complaint. Superior filtration, and high levels of indoor air quality are required moving forward, our occupants and tenants now demand it.
Nathaniel Nance Vice President of Global Research and Development-HVAC AAF Flanders
Michael Corbat NAFA BOD & Treasurer, Vice President of Engineering RENSA Filtration
Air quality has profound health implications in indoor environments where the US population normally spends most of their time. Indoor air, in particular, can expose tenants to noxious chemicals, particulates, and a variety of infectious agents as well as pollen and other allergens. Emerging pathogens, such as viruses, bacteria and fungi have also been detected in indoor air, with a strong potential for airborne dissemination and contamination. The quality of indoor air is, therefore, a prominent public health concern in residential environments as more and more clients work from home.
Indoor Air Quality impacts on the general tenant is just coming into focus due to lessons learned from the Coronavirus pandemic. For a long time, researchers believed that pollutants in the air could significantly affect the mortality of a human over an extended period of time. However due to new understandings through research of common air pollutants combined with a better understanding of how virus behave, we now see that indoor air quality has a dramatic acute effect on the inhabitant.
There have been significant trends in both industry recommendations and standards in which the general public are educating themselves and demanding better filtration for improved health. This progression is following the trend of tap water a few decades prior where the more educated the consumer, the more the consumer wants to mitigate risk. Filtration companies are providing more options and advancing offerings for the tenant space to support this change in customer preference and regulation.
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Some examples of a reduction in indoor air pollutants have shown up in the reduction and in some localities, removal of all natural gas devices, especially stoves that cause a very large amount of both gaseous and particulate contaminants. These types of contaminants have begun to show the ability to highly effect a tenant’s ability to focus and work while also affecting mood. This is not dissimilar from previous finding surrounding the effects of lighting in a facility. Combined this with the global pandemic which brought the importance of air cleaning to the forefront of many building owners, there has been a surge in lost time and lost productivity due to poor indoor air quality. The good news for most owners is that it is often an easy fix through ventilation and filtration.
Steve Griffiths NAFA International Director General Manager, Independent Filter Service P/L As a distributor in Australia, we have found the benefits of improving indoor air quality for tenants to be the main motivation facility managers and building owners have when investing in more efficient filtration systems in their buildings. These benefits have especially been a major selling point for us since the start of the COVID-19 pandemic. Our clients that have upgraded to more efficient filtration which has improved their indoor air quality, have also experienced reductions in duct and coil cleaning costs, and staff absenteeism over time. Before the pandemic started, there was more focus in the market on potential energy cost savings from upgrading filtration systems. This remains an important economic consideration due to the medium to long term pay-back from the initial investment. A delayed and cautious vaccine roll out by the Australian federal government has led to low vaccine rates currently in the population. Most capital cities, such as Melbourne, Sydney, and Brisbane, are still
Tom Justice Past NAFA President President, ZENE Filtration Over the past 18 months, the way that we manage our facilities has changed dramatically as a result of the pandemic, and driven mainly by increased public awareness of the need for improved air filtration. During this life-threatening event which even now is having a major impact on how we conduct business worldwide, building owners and managers have looked to their trade associations such as BOMA, NAFA (National Air Filtration Association), ASHRAE and others, to provide practical guidance on how best to protect their building occupants.
Marisa Jimenez de Segovia Past NAFA President Co-founder of Air-Care de México IAQ in office buildings could have been considered a luxury before the pandemic, but now it is crucial for tenants and landlords. In my 30 years of experience in Mexico, we had never seen such a dramatic increase in the demand for better ventilation, air filtration and UV disinfection. Back in the 90`s, indoor air quality in Mexico, was a concern only when there was a problem in the building, such as a Sick Building. Then IAQ started gaining attention as ASHRAE´s indoor air quality standards were adopted in Mexican LEED certified buildings for instance. Outdoor air contamination in Mexico City and Monterrey, also known as the industrial capital of the country, have also driven the necessity of getting better filtration systems in buildings as awareness grows that outdoor air becomes indoor air and the known adverse effects of PM2.5 (particle matter that are 2.5 microns or less in diameter) in our health. Now the risk of breathing the same air and getting sick with COVID-19 has everyone thinking about the quality of the air we share.
experiencing regular lockdowns / stay at home orders from outbreaks of the COVID Delta variant. As a result, many large community business district high rise buildings are still operating well below normal tenancy capacities. When vaccination rates improve and stay at home orders end, many building facility managers are aware that improved indoor air quality and ventilation, supported by more efficient filtration from MERV 13 or above, will be a major factor in attracting back present and potential future tenants. This will be especially important when major tenants return their staff to working on site and sign new long-term leases. Due to Australia’s location, and with most medium to high efficient filters being manufactured overseas, lead times for these filters can be up to 3 to 4 months before orders are received and then installed. If local stock levels are limited then this extended lead time can make planning and installing filter upgrades potentially a longer process than compared to other parts of the world. But once facility managers and building owners decide to upgrade their filtration system, the long-term benefits are worth waiting for.
The recent closure of schools, the overwhelming surge of patients at many medical facilities and the need to provide safer work spaces have all brought attention to the importance of indoor air quality. Yet, long before this event, organizations such as NAFA have been working to promote the benefits of clean air in the work space. The importance of this work is evidenced by the USEPA estimates which state that “Americans on average spend close to 90% of their time indoors, where pollutants are often two to five times higher than typical outdoor concentrations.” 1
Sources 1. U.S. Environmental Protection Agency. 1987. The total exposure assessment methodology (TEAM) study: Summary and analysis. EPA/600/6-87/002a. Washington, DC.
Many of Mexico’s buildings lack good ventilation and now that people have realized that IAQ is a defense against airborne illnesses the demand for the installation of MERV 13 filters and UVGI is a new normality. Mexican ASHRAE members, NAFA Certified Technicians and Air Filtration Specialists in Mexico are a good source of expertise and information. Mexico is part of region VIII of ASHRAE and has three chapters: Mexico City, Monterrey and Guadalajara. NAFA has also been certifying technicians in air filtration systems in Mexico since 2008. Both associations have manuals in Spanish that helps with the implementation of best practices in IAQ. The first and favorite choice of buildings are the ones designed with indoor air quality in mind. Buildings that have good ventilation and technologies to clean and purify the air have a greater demand, since more companies are interested protecting the health and well-being of their employees in the workplace and minimizing the risk of COVID-19 transmission. The urge for better air to protect the occupants in a building has changed forever the way we look into IAQ.
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Joe Gorman Vice President - Product & Development Camfil USA Inc. Indoor air quality has become an essential discussion point over the past year and a half, over higher levels of concerns regarding the air people are breathing in. It is now, more than ever, a point of interest for building owners to satisfy the increasing demands tenants have on their overall health and well-being to sustain tenant retention rates and provide healthy and productive environments. For years, research studies have identified that poor air quality, which includes high levels of PM2.5 particulate, is damaging to health, productivity, and overall cognitive performance. Research is now showing that not only does poor air quality affect people’s health, but it also has adverse effects on emotional well-being, such as the increased risk of anxiety and depression1. Harvard University analyzed worker concentration and cognitive abilities and found that providing good indoor air quality increased overall worker productivity by 8%2. That may not sound significant, but if you take the entire payroll of the building occupants and multiply it by 8%, in most cases, it will far outweigh the cost of upgrading building ventilation.
One change with the new ISO 16890 standard is the correlation to PM1 (particles are about 0.01-1 microns in size) particles, which research shows have an even stronger connection to adverse health effects than PM2.5 3,4,5. PM1 particles are the finer particulate that primarily originates from combustion processes that are more common in high traffic, urban environments. With the increasing research linking poor IAQ to illnesses and even one’s emotional health, high-efficiency air filters and clean air are as relevant as clean water. Providing tenants with optimum ventilation systems with high-quality air filtration will help maintain their occupancy, provides them effective working environments and gives them peace of mind that they are breathing in clean air.
Sources 1 https://news.mit.edu/2019/china-link-happiness-air-quality-0121 2 https://www.mdpi. com/1660-4601/12/11/14709/htm 3 https://www.sciencedirect.com/science/article/abs/pii/S0048969721045769 4 https://link.springer.com/article/10.1007/s11356-021-15244-z 5 https://www.sciencedirect.com/science/article/abs/pii/S0048969721005775
Future measures of indoor air quality are changing. With the implementation of the global ISO 16890 filtration standard, air filtration products are being more stringently measured for particulate removal.
About the Authors Joe Gorman Starting in 2005, Joe Gorman has worked in numerous roles at Camfil USA with a primary focus in product development as well as the application specialist for data centers, indoor firing ranges, transportation, health care and livestock enclosures where protecting animals against airborne viruses has been practiced for over 12 years.
Marisa Jimenez de Segovia Marisa Jimenez de Segovia co-founder of Air-Care de México, established 1992, dedicated to indoor air quality, manufacturer of air filters, ultraviolet light distributor, air purifiers and air duct cleaning. Involved in ASHRAE standards and technical committees including SSPC 52.2 and TC 2.4. Honored as ASHRAE Fellow.
Michael Corbat Michael is Vice President of Engineering for RENSA Filtration. In this position he is responsible for coordinating the engineering and product development for Rensa and its portfolio companies. Michael has extensive experience in filtration media, filter development and filter test methodology. He was previously chair of ASHRAE Technical Committee for Particulate Air Contaminants and Particulate Contaminant Removal Equipment.
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Tenant Experience Guide | October 2021
Nathanial Nance Nathaniel Nance is currently the Vice President of Global Research and Development-HVAC with AAF Flandrs. He has more than 20 years of experience in the filtration industry a with specialties in filter testing and filtration application development fields with expertise in non woven filtration development. He has held several different positions within Research and Development and Operations for filtration materials and filter manufacturing companies.
Nathan Wittman Nathan is currently serving as President of the National Air Filtration Association (NAFA) He is Vice President of Sales and Marketing, Filter Technology Company, Inc. based out of Houston, TX. Nathan holds his CAFS and NCT certifications and is active on air filtration committees at ASHRAE.
Tom Justice Tom Justice acquired his Bachelor of Science in Mechanical Engineering from North Carolina State University. He is a Certified Air Filtration Specialist (CAFS) and a NAFA Certified Technician (NCT). Along with being a past NAFA President, Justice is active in ASHRAE serving as chair of TC 2.4. L.
Steve Griffiths Steve Griffiths is the General Manager and owner of Independent Filter Service based in Melbourne Australia. In a prior life, he worked and studied in the behavioral science field in Sweden and Australia, which occasionally comes in handy running a business with over 20 staff and hundreds of customers.
More IAQ Resources from CRE Insight Journal The Basics on MERV-13 Filters
Managing Outside Air Flow
What Property Professionals Should Know about Germicidal UV
With air filtration and indoor air quality being a top concern of many property professionals, more people have been wondering about the MERV-13 filters. In this video, Bill Palmer, president of Aeromed and a member of the National Air Filtration Association, gives a breakdown of MERV-13 filters, their use and their efficiency.
Managing outside airflow into a property is a major component of indoor air quality. From weighing efficiency and filtration to managing humidity, outside air can play a big component on the operations of a property’s air filtration system. In this video Bill Palmer, president of AeroMed, Inc. discussing best practices when it comes to managing the flow of outside air.
There have been a lot of new technologies that have come to the surface when property professionals discuss air quality. Germicidal UV is one of them, but many people have questions about what it is, how it works and what applications there are for it in a commercial space. In this video, AeroMed President Bill Palmer with the NAFA breaks down Germicidal UV and what people need to know.
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Webinars Available on CRE Insight 365 Healthy Buildings Webinar: Indoor Air Quality Emerging Tech and Techniques
Unlock exclusive webinars, articles and videos with a CRE Insight 365 membership. For $149 a year, professionals can gain even more insights from some of the top CRE professionals.
Maintaining Indoor Air Quality Webinar
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Www.creinsightjournal.com/cre-insight-365/ The Healthy Buildings Webinar explores the principles of creating and managing a healthy building by exploring Indoor Air Quality (IAQ). The program specifically explores Emerging Technologies and Techniques that have advanced in recent years and reviews their practice and implementation at commercial properties and facilities.
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In partnership with the National Air Filtration Association, this webinar gives an overview of both germicidal UV and air filtration methods of combating airborne illnesses. Part one of the webinar (2:45), reviews facts about airborne transmission and particle sizes. Part two (16:00) reviews MERV filters and air filtration methods. Part three (30:48) reviews the usage and safety behind germicidal UV.
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