BM1902

FACILITY PLANNING

Real Estate Management

According to Atkin and Brooks (2015), facility managers must create an asset plan that includes
management of physical property operations, personnel, and finances. The asset plan must be designed
following an in-depth analysis of the property and its position in the market. It implements the owner’s
objectives in the property’s management and is typically developed within 60 to 90 days of property
acquisition. An asset plan may also be developed when a property is transitioned from one asset manager
or asset management company to another, on an annual basis, as a part of the ongoing management of
an already-owned property (Atkin & Brooks, 2015). Facility managers must also have a thorough
understanding of the company’s assets, in terms of real estate, by reviewing three (3) specific areas such
as legal document inspections, physical property review, and market analysis.

The following are the key elements that facility managers must consider in evaluating real estate assets.

Legal Document Inspections

• Mechanical records. Facility managers must inspect the mechanical areas of the property. S/he
must also ensure that adequate records are being kept for preventive maintenance measures. An
example of this is an evaluation of machine replacement to ensure smooth operations.
• Compliance with legislation. Facility managers must identify if there are any deficiencies that
must be addressed pertaining to building registration and other related government
requirements.
• Building plans. Facility managers must check the complete set of building plans, especially when
alterations are proposed to be made.

Physical Property Review

• Interior quality. Facility managers must consider the status of cleaning, carpet repair, wall
coverings, ceilings, and lighting. The common areas of the property should be properly
maintained, especially as this minimizes liability.
• Foundation and exterior. Facility managers must carefully examine if there are any cracking or
other signs of structural problems in the facility. A qualified structural engineer should be hired
to perform a detailed review of any of these conditions. A roof survey is also essential and helps
in budgeting.
• Vacant space. Facility managers must review if the empty places in the facility are clean or require
additional demolition to make the space marketable.
Market Analysis

• Property operations. Facility managers must conduct a thorough review of current management
and leasing personnel. It is important to spend time evaluating the personnel who will be working

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at the property since the success of any plan depends on the knowledge and effectiveness of the
people implementing it.
• Tenant feedback. Facility managers must perform tenant interviews. This is an important step
that is often overlooked. While inspecting the property, the manager should coordinate an effort
to take as much time as necessary to hear tenant comments on property management and
maintenance.

The Own, Lease, or Rent Decision

Atkin and Brooks (2015) stated that companies have options to own or build a new building, lease a
building, or rent a space for the business. A new building can be purposely-built, which means that it
meets all the desired requirements relevant to business operations. A leased building, on the other hand,
can be classified as a long lease (between 7-25 years) or short lease (between 1-7 years), depending on
the discretion of the company. Lastly, a rented space can be classified as a tenant fitted-out or a space
that is ready for occupancy and meets the requirements of the business undertaking, furnished or a space
that is ready for occupancy but does not suffice to the requirements of the undertaking, or totally serviced
workplace or a temporary solution to a space problem (Atkin & Brooks, 2015).

The following table illustrates the real-estate occupancy period relevant to own, lease, and rent decisions
for a facility.
Options Classifications Occupancy period
New building Purpose-built 25 years or more
Leased building Long lease Between 7 and 25 years
Short lease Up to 7 years
Rented space Tenant fitted-out Between 5 and 15 years
Furnished Between 1 and 5 years
Totally serviced workplace Up to 1 year
Table 1. Real Estate and Space Provision Options and Occupancy Periods
Source: Total Facilities Management (4th ed.), 2015

The Totally Serviced Workplace

A totally serviced workplace refers to a “ready-to-use” office space that goes beyond the traditional set-
up of an office. According to Atkin and Brooks (2015), the concept of a totally serviced workplace revolves
around the idea that an organization seeking a temporary solution to a space problem can rent totally
serviced office space from as little as one month up to a few years. In some cases, the serviced workplace
might be intended as a permanent solution or at least one that does not have a defined time horizon. For
organizations looking to expand their business internationally, the availability of this kind of solution can
be attractive, even though it attracts a cost premium (Atkin & Brooks, 2015).

The categories of totally serviced space, which suit different organizational demands, are as follows:

• Office space. This is ideal in serving a full-time, part-time, branch, project, start-up, or a team
demand for space.
• Virtual office. This pertains to the operational domain of any organization whose business does
not require a physical office but a simulated work environment using technology to perform work
at any location.

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• Disaster recovery. This provides workplace recovery to support business continuity during an
incident.
Space Management
An important function of facility management is to ensure the efficient and cost-effective use of space. In
terms of the design of a new or refurbished facility, the recommended practices for ensuring space
efficiency are as follows:
• Maximizing space on the footprint of a new facility. Facility managers must ensure that the total
available space in a new facility is utilized for operational efficiency.
• Matching new uses to a refurbished facility. Facility managers must match the operational
requirements of the firm relevant to the provisional spaces of a refurbished facility.
• Increasing the ratio of usable to gross floor area. Facility managers must maximize the usable
space area of the facility and ensure that vacant spaces are minimized.
• Incorporating design features to support different activities at different times. Facility managers
must ensure that facility design provides relevance and convenience in facilitating the activities
of the firm.
• Providing space, furniture, and fittings that can be adapted for different activities. Facility
managers must acquire furniture that matches the operational requirements of the firm.
• Creating space that mixes open-plan, meeting, and quiet spaces. Facility managers must plan a
provisional space area to accommodate different work settings and requirements.
• Providing wireless data access to enable maximum use of common space. Facility managers
must ensure that wireless data or internet connection is available to common spaces of the facility
to maximize operational efficiency.
Atkin (2015) stated that the organization should be able to measure and forecast the costs of servicing its
space, including those relating to energy, and be able to determine the effectiveness of energy-saving
measures. In some cases, it will mean a controlled reduction in space and the opportunity to utilize energy
with a commensurate cost saving. In others, it could amount to the more effective use of existing space
through initiatives that maximize occupancy and/or productivity while maintaining an acceptable
workplace environment (Atkin, 2015). Other recommended measures in promoting space utilization and
efficiency are as follows:
• Appointing a champion/manager for space management and operating costs. This involves
selecting a point person within an organization who will oversee if space requirements and cost
efficiency are being met.
• Systematically collecting and updating space utilization and cost information. This involves
timely updating of space utilization procedures of a firm based on changing needs or
requirements of the business to lessen operational cost.
• Agreeing with targets and monitoring their achievement. This involves periodic assessment of
initial targets set by the firm relevant to space utilization.

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• Incorporating space efficiency concepts into the facility management strategy. This involves
injecting the space requirements of a firm in implementing facility management strategies such
as project design briefs, feasibility studies, option appraisals, and design reviews.
• Developing and maintaining a clear decision and communication structure for facility-related
projects and their stakeholders. This involves ensuring that open communication can be
facilitated given the design and features of the facility.
• Assessing space efficiency through post-occupancy evaluations. This involves assessment of the
effectiveness of a refurbished facility based on the experience of previous occupants through an
interview or survey.
Design and Facility Management Briefing
Briefing is the process of communicating the objectives and needs of an owner, or prospective owner, of
a facility to a designer or design team in order for them to prepare the design of a new or refurbished
facility. The process includes clarifying and confirming the intentions of the owner and documenting the
resulting provisions for the facility to support efficient and effective decision-making.
Below are the phases in facility delivery life cycle:
1. Design. This involves developing detailed and comprehensive specifications based on the agreed
requirements and design evaluation of a facility relevant to the operational requirements of a
firm.
2. Construction and/or installation. This involves the actual building, manufacturing facility, and
system requirements needed in the facility design and management.
3. Testing and commissioning. This involves providing on-site testing, quality assurance,
specifications audit, punch listing, and all other compliance crosschecking of the agreed
requirements and/or acceptance test.
4. Handover. This involves the formal transfer of the product, system, or building to end-user after
the successful testing or commissioning.
5. Start-up of operations. This involves the official utilization of the unit or facility by the end-user
for business as usual operations or transaction.
The steps involved in design and facility management briefing should follow a logical sequence as follows:
1. Business case. This involves defining the phases, decision gates or facility considerations,
deliverables, and criteria for determining the progression of facility management related tasks of
an organization.
2. Statement of needs. This involves defining the primary processes and activities of an organization
to understand how the facility can accommodate these processes. Known and anticipated
conditions affecting the organization’s ability to sustain these processes and activities, including
the space required for this purpose, have to be determined. The statement should express the
needs of the organization in general terms – as valuable context-setting information – and
specifically in relation to the facility. Criteria for measuring success should be included in the
statement of needs and should be revisited regularly so that no one loses sight of the original
purpose of the exercise.
3. Development of design brief. This is a comprehensively written document developed jointly by
the organization, its professional advisors and the designer or design team, based on the

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statement of needs, including the business case for the new or refurbished facility. The design
brief articulates the case for the facility in terms of its functions, performance requirements,
sustainable space provision and overall design concept among other aspects. Detailed aesthetic
treatment normally falls outside the scope of the design brief. The content of the design brief
includes a summary of the business case involving strategic fit, objectives and prioritized needs,
criteria for measuring success, grants, allowances, subsidies, and taxation. In addition, it includes
end-user requirements, as well as functional, operational, and quality standards for the facility. It
also includes the following considerations:
o Health, safety, and security policy;
o Environmental management policy;
o Corporate social responsibility policy;
o Project execution strategy or plan; and
o Project delivery schedule including phasing and milestones.

4. Functional brief. This involves the proposed technical solutions, including the evaluation of
options for satisfying end-user requirements. It deliberates the following concepts, as well as
internal and external considerations:

Overall Concept

o The vision and image of the organization and the extent to which these should be
reflected in the appearance and general design of the facility.
o The impact of the design on occupants and other users as they approach, enter, and
move about the facility; in particular, the internal environment and provisions for
assuring the health, safety, and security of personnel.
o Inclusive design principles are applied to the facility and incorporate the needs of
disabled people and others with equalities-related needs.
o Design for reduced environmental impact, including choice of principal materials and
their ultimate reuse, recycling or disposal, and the extent, if any, of passive systems
(e.g. natural lighting, cooling, and ventilation)

Internal considerations

o Zoning, internal circulation, and transportation. Examples include offices and service
cores such as electrical cables, water pipes, lifts/elevators, stairways, and lobbies
o Demands for space supporting functions and activities (e.g., production, creative areas,
private spaces, meetings and conferences, safety areas, social areas, dining, and
refreshment areas); and ancillary or necessary services, which include waste
segregation, recovery, reuse and recycling, and rainwater harvesting
o Organizational structure (e.g., departments and other subdivisions, including the
anticipated number of personnel and their roles)
o Communication across departments
o Descriptions of the functions, activities, and processes supported in the facility, including
provisions for the separation of space, by zone, by level, and so on

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o Arrangements for enabling access, use of emergency evacuation for all occupants and
other users, including disabled people
o Flexibility/adaptability in the internal design (e.g., reconfigurable space and
expansion/reduction potential)
o Energy use, water management, and waste disposal (e.g., environmental management)
o Security, safety, fire, and resilience (e.g., responses during a failure in an installation or
system, or other incidents, and arrangements for business continuity)
o Carbon footprint, including calculation of the carbon equivalent
o Services that include security, waste disposal, and cleaning
o Design for reduced environmental impact, including choice of principal materials and
their ultimate reuse, recycling or disposal, and the extent, if any, of passive systems (e.g.,
natural lighting, cooling, and ventilation)

External considerations

o Zoning of external areas and associated security (e.g., landscaping, parking, emergency
assembly points, fences and gates, lighting, signposting, security, and surveillance)
o Entry to and from the facility for different categories of user and visitors, including
emergency access and escape routes
o Access to modes of public transport and their distance from the facility

5. Feasibility study. This involves determining the viability of the facility design prior to further
progression in the project. It is primarily used to inform the decision on whether to proceed with
the design within the defined scope, to modify the scope or to terminate design altogether. The
feasibility study should include an assessment of the facility’s environmental impact and energy
performance. The facility’s whole-life cost should be estimated on the basis of the principal
materials, components, and systems proposed in its design, with the aim of optimizing energy
efficiency and minimizing its carbon equivalent. The expected life expectancy of the facility’s
structure, fabric, components, systems, and major fixtures should be made explicit in a whole-life
cost estimate.
6. Design development. This involves ensuring that the information deemed critical to the operation
of the facility is made available to the organization as owner and, where applicable, the operator
during design. In doing so, the fitness for the purpose of design solutions as well as the safe,
correct, and efficient operation of the facility can be more closely assured. This information forms
an integral part of the defined scope of the work and is the basis of the design for an operational
asset.

References
Atkin, B. & Brooks, A. (2015). Total facilities management (4th ed.). United Kingdom: John Wiley & Sons,
Ltd.
Fmlink. (n.d.). The facility manager’s role in real estate management. Retrieved on January 30, 2019,
from https://fmlink.com/articles/the-facility-managers-role-in-real-estate-management

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