1 sustainability Rebecca pearce Emea head of sustainability
2 Sustainability across EMEAThe year so far… 116 people 14 countries 3 key service lines € 6 million H1 revenue =68% of 2016 budget
3 Asset services sustainability toolkitRaising awareness, enabling cross sell
4 Asset analytics Using big data for performance improvement
5 Sustainability and Technical reviewAdding value for clients Document current building condition Budget planning for 15 years Strategy at building and site level Assess sustainability attributes Benchmark using customised index Action plan for site Economic assessment of improvements Mobile application and digital records >330 buildings, 525,000 sqm across Europe
6 The rise and rise of wellness75% of occupiers can’t be wrong Air Water Nourishment Light Fitness Mind Comfort Water Nourishment Light Fitness Mind Comfort
7 Integrated wellness servicesFull lifecycle understanding
8 Cbre sustainable offices programmewalking the talk 75% of EMEA offices footprint surveyed 83% of surveyed offices achieved Bronze, Silver or Gold rating
9 Green perspective Blog relaunchedRaising our profile
10 environmental Gabriele Lüft, MD valteq, germanyed blackburn, director, london
11 Goal Development of an EMEA wide service line for Environmental Services
12 Background: CBRE strategyClient Outcomes: Leverage our unique geographic and business line capabilities, responsible business practices and effective collaboration to generate consistently exceptional client outcomes. Talent: Attract and retain top professionals while developing our people at all levels of the organization. Platform: Continuously enhance our operating platform to arm our professionals with the best resources to serve clients. Organic Growth: Deliver consistent organic growth and market share gains through a matrix organisation that combines powerful geographic, business line and functional leadership. M&A: Make strategic, well-executed acquisitions to strengthen our ability to provide superior client service and fuel our growth.
13 Benefits of EMEA Wide Environmental offeringClient Outcomes: Broaden the service portfolio for clients Talent: Infusion of professionals with different skills Platform: Presents an unique selling point to the market Organic Growth: Of skills, people, services, revenue, margin M&A: Growth option in national markets
14 Market share Clients face environmental issues throughout the property life cycle: Acquisition Operation Management Change Divestiture There is a huge market opportunity for CBRE... Demand for a variety of Environmental Services
15 Demand for a variety of environmental services throughout the property life cycleACQUSITION DIVESTITURE OPERATION MANAGEMENT CHANGE Phase I ESA Phase II ESA Environmental Risk Screening Hazardous Building Substances Surveys Flood Risk Review Hazardous Building Substances Surveys Remediation Drinking Water Hygiene Analysis Compliance Audit Flood Risk Resilience Environmental Portfolio Risk Analysis Compliance Audit Dilapidations Hazardous Building Substances Remediation Planning/permitting support Soil & Groundwater Remediation Design and Validation Development Monitoring Flood Risk Appraisal
16 Competitor matrix GermanyPhase 1 EDD Soil & Groundwater Haz mat Industry Public Real Estate EMEA () () Table title [delete if not necessary] Source: 9pt, Dark Grey.
17 Competitor matrix UK - Table title [delete if not necessary]Phase 1 EDD Soil & Groundwater Industry Public Real Estate EMEA FLOOD RISK - Table title [delete if not necessary] Source: 9pt, Dark Grey.
18 Business case germany Number of ProjectsCorrelation Technical Due Diligence: Environmental Due Diligence
19 Correlation Technical Due Diligence: Environmental Due DiligenceBusiness case germany Revenue Correlation Technical Due Diligence: Environmental Due Diligence
20 Environmental Projects VarietyBusiness case germany Environmental Projects Variety
21 UK team 2014: Addition of Flood Risk Service Line 2007: Two People2011: Six People 2015: Nine People
22 UK TEAM fee split 2015
23 European Collaboration[Subtitle here] 23
24 Transfer of Business case to EMEa1. Analysis of status of Environmental Services in EMEA UK Germany France Nether-lands Hungary Italy Spain Environmental Projects Environmental Team - Env. Revenue 1420k€ 1000k€ ??? TBD 2. Analysis of demand for Environmental Services in EMEA 3. Support for development of environmental team in EMEA Recruitment/Personnel QA/QC (technical network) Client Pitches Marketing etc
25 SWOt analysis: EMEA Environmental ServicesRisk of Liabilities Insurance Cover Loss of Investment Lack of Track Record Available Talent Different Local Regimes Growth Competative Advantage Service Diversity Commercial Perspective Structure of EMEA Platform Buy-in of country heads Unique Selling Point for CBRE: ‘One Stop Shop‘ EMEA Platform Access to Clients S W T O
26 Implementation of emea environmental serviceStatus Environmental Projects EMEA Analysis of Demand for Environmental Services Recruit Environmental Experts in Selected Countires EMEA Structure for Environmental Services Development and Expansion of Environmental Teams in Individual Countries
27 Self perform fit out JAVIER MartínezDIRECTOR, BUILDING CONSULTANCY SPAIN
28 SPFO (DESIGN & BUILD) BUSINESS PROCEDURE BUSINESS PROCESSRESOURCES NEEDED BUSINESS PROCEDURE PROJECT MANAGEMENT CONSTRUCTION COMPANY SET UP ARCHITECTURAL DESIGN INSURANCES (CONTRACTORS ALL RISK, …) M&E ENGINEERING DESIGN CREDIT INSURANCE ESTIMATE & PROCUREMENT -BS PLATFORM LEGAL ADVICE CONSTRUCTION FINANCIAL CONTROLLER LICENCE MANAGEMENT ADMINISTRATION H&S DIRECTOR QC DIRECTOR WORKPLACE & CHANGE MGNT. (GWS) JOINT APPROACH WITH A&T (STAY VS GO)
29 SPFO (DESIGN & BUILD) 2 APPROACHES FROM PjM TO SPFO… BUSINESS PROCESSCLIENTS APPROACH TO SPFO 2 APPROACHES FROM PjM TO SPFO… FIXED PRICE OPEN BOOK SOFT APPROACH… COMPETITION NO COMPETITION TDD + TEST FIT MORE MARGIN LESS MARGIN DESIGN MORE RISK LESS RISK TIME… LARGER PROJECTS OPEN BOOK!! TRANSPARENCY CORPORATIVE CLIENTS
30 This chart is embedded and can be edited when requiredSTEPS To edit elements within the chart select the element and the ‘Chart Tools’ tabs will become available in your ribbon (alternatively select the element and right-click, ‘Format …’) Apply required changes To edit data, select the chart and right-click. Select ‘Edit Data’ – an Excel window containing the chart data will open SPFO SPAIN NET FEES Net Fee KPMG AXA EY PWC
31 7 36 6 23 8 SPFO (DESIGN & BUILD) BUSINESS PROCESS TEAMNational Director Javier Martínez PjM + Architecture Director Ignacio Méndez Design & Build Director (SPFO) Mariano García PjM (Occupiers) Design & Project Management Procurement Management Construction Management M&E Engineering Administration Director Elisabeth Raebild Leyre Echevarría (PjM Occ. Director) Beatriz Carnicer Enrique Domínguez Gonzalo Calle Gonzalo Platero Ignacio Sánchez Beatriz García Ana García Celia López Begoña Martin Andrea Tarjuelo Carlos Navares Estefanía Ferrer Belén Espinos Ignacio López Laura Vallés Goretti Díaz Ana Palencia Beatriz Ramo Carlos Soriano Cesar Saldaña Cristina Terán Reyes Pérez Ana Mayol Carlos Soria Elena de Noriega Gema Sánchez Ignacio Galán Marta Moral María García Pablo Abad Luis Boto Mercedes Garrido Laura Torres María Mas Sara Anguitar Zahira Tolosa María de León Paloma Almajano Paloma de Frías Paula Abascal Angel García (Procurement Director) Ignacio Rivera Diego Moreno Javier Hortelano Manuel Cano Victor Ibáñez Verónica Romero (Construction Director) Ana Romero Marcos Paunero Ricardo Santos Adrián Villalba Africa Sagradini Antonio Barbero Begoña Rufas Carlos Alonso Carlos Frades Jaime Jiménez Jorge Ortega Juan Carlos García Lara Olmos Laura Barcos Manuel Muñoz Marta Sanz Pasión Pinteño Patricia Mota Paula Franco Silvia Sáez Andrés Martínez Alejandro Sarró Carlos Martínez (MEP Eng. Director) Adolfo Anguitar Carlos Cameo Carlos Rabadán Elvira Marín Francisco Benito Gonzalo Alegre Javier Calvo María Fernández Celia Rivera Ana Fernández Daniel González (Controller) 7 36 6 23 8 Q. A. Director Pablo Núñez Business Development Mario Mingo H & S Director Daniel Barcelón Atrezzo Fátima Gea
32 DiLAPIDATIONS & LEASE REINSTATEMENTMARK TATLOW SENIOR DIRECTOR, LONDON
33 WHAT IS IT? Well, that depends Different things in different countriesIntense & sophisticated in the UK due to the lease structure, background law and industry practice Few UK buildings can escape it – can be worth £0/sf upto £80/sf (€0/sqm to €1000/sqm) No pan-European model; dependent upon each countries lease structure, law, practice and sometimes culture!
34 Why should you care? FEES, REVENUE & PROFIT!!The UK business line is worth £3.5m (€4.2m) and is growing Our client’s need it and expect CBRE to be able to deal with it Typically profitable – sometimes very profitable Less cyclical than many business lines Its coming your way…………..
35 SERVICES WE OFFER – Part 1CONsultancy Analysis of liability/advising on liability Typically for fixed fees – often as loss leaders NEGOTIATIONS Engaging with other side to arrive at settlements Typically performance fees and sometimes pretty good ones!
36 SERVICES WE OFFER – Part 2Construction Works Sometimes advising the client’s team Sometimes procuring the works OTHER RELATED SERVICES Many of the wider services that CBRE offer Sometimes get much earlier market leads than any other source
37 UK MODEL – PART 1 AT THE EXTREME –FRI LeaseTenant responsible for everything; structure, fabric, services, interior, contamination etc Leases often for long durations, so full wear falls to the tenants Reinstatement of alterations Loss in value Process of settlement………..and what happens if you can’t
38 European MODEL Contact us! Your Part in the Story!Increasing demand for pan-European service Advice and negotiations Requires a network of specialist skills Country introductions Opportunities & joint marketing Contact us!
39 INTERNATIONAL PROPERTY MEASUREMENT STANDARDAlex gunn, Director, London
40 Warranted Internal Area Surveys – CBRE Measured Survey TeamSERVICES CHALLENGE The current economic climate dictates more than ever the requirement for all parties to ensure they are confident that the data being used to formulate deals is indisputable. The more you think about measured survey information, the more you’ll realise how often you need it, how much it’s part of everything you do, and perhaps most importantly, how vital it is to have information you can trust. OUR APPROACH Our RICS qualified and dedicated team are equipped with the latest cutting edge data capture technology, combined with core surveying principals; we guarantee referenced areas within a tolerance of 0.2% in accordance with the RICS code of measurement practice. All our area reports are also provided with an assignable letter of Reliance, which allocates a warranty to future purchasers. This is backed up by CBRE’s market leading Professional indemnity insurance providing unrivalled investor confidence. TYPICAL DELIVERABLES Net and Gross Internal Area Reports NIA’s expressed In Terms of Zone A (ITZA) for retail applications. International Property Measurement Standards Consultancy (IPMS) Market Specific Report Production (European /International Codes of Practice). Joint Instruction Reporting.. Statistically proven results More detail for better analysis Shopping Centres High Street Retail Cutting Edge Data Capture Techniques European Codes of Measurement
41 No over-arching global standard of property measurement.Why IPMS? Floor Area (Gross, Net, Rentable or Lettable) means different things in different markets. The World Bank estimates that 70% of global wealth is in property. Inconsistent measurement provides inconsistent valuation and transaction methods. No over-arching global standard of property measurement. IPMS measure once, no need to measure again.
42 Is IPMS Mandatory? IPMS Professional Statement and IPMS:Office is mandatory. Professional measurement surveyors to demonstrate compliance. Implemented by the Profession; for the Profession. Specifically, the IPMS Coalition comprising 90+ worldwide organisations including measurement governing bodies. 200+ ‘partners’ – commercial organisations – have enquired about, or requested to use IPMS. CBRE (UK) Ltd. have partnered. Prologis sought understanding of IPMS from CBRE. Now partnered with RICS. When will IPMS be required? - Transactional, Tenancy adjustments, Period of Reliance has expired or Building Redevelopment
43 IPMS:OFFICE - 1st January 2016IPMS1 - Sum of areas per floor measured to outer perimeter of external construction features, reported on a floor-by-floor basis. UK market equivalent is GEA except inclusions of Balconies and Roof Terraces. Used for Planning purposes and Costing of development proposals.
44 IPMS:OFFICE IPMS2 - Sum of areas per floor measured to Internal Dominant Face, reported on a Component-by-Component basis. Single occupancy (multi-functional) or several occupiers. Component Areas – Vertical Penetrations, Structural Elements, Technical Services, Hygiene Areas, Circulation, Amenities, Workspace – more in-depth for appraisal of buildings UK market equivalent is GIA Used by Asset Managers, Brokers, Cost Consultants, FM’s, Owners, Occupiers, Property Managers and Valuers
45 IPMS2 & IPMS3 Internal Dominant Face
46 IPMS2 Reporting Format
47 IPMS2 SMC 4th Floor Total IPMS2 2086.7 sq m 22,461 sq ft + 12 %Grey outline box indicates where a graphic or diagram should go. The grey outline can be kept or deleted, as suits the graphic. Total IPMS2 sq m 22,461 sq ft + 12 %
48 RICS Net Internal Area SMC 4th FloorGrey outline box indicates where a graphic or diagram should go. The grey outline can be kept or deleted, as suits the graphic. Total NIA sq m 19,165 sq ft
49 IPMS3 Sum of floor area available on an exclusive basis to an occupierExcluding standard facilities, core areas, shared circulation areas etc. Enables users & service providers to make direct floor area comparisons UK market equivalent is NIA Used by Agents, Asset Managers, FM’s, Property Managers, Occupiers and Valuers
50 IPMS3 SMC 4th Floor Total IPMS3 1792.7 sq m 19,297 sq ft < 1 %Grey outline box indicates where a graphic or diagram should go. The grey outline can be kept or deleted, as suits the graphic. Total IPMS3 sq m 19,297 sq ft < 1 %
51 IPMS – What Next? IPMS:Industrial – ‘Q4 2016’IPMS:Residential - Q2 2017 IPMS:Retail – Q4 2017 ‘Benchmarking’ – IPMS2 translated can be translated across existing Codes. CBRE Measured Survey Team are RICS accredited and being used to provide Case Studies for RICS Dual Reporting.
52 IPMS – Accuracy Or… If we are measuring , we need to…Provide a statement of methodology. Adhere to guidelines in IPMS Professional Statement. Satisfy Client accuracy requirements.
53 IPMS – What Should We Do? CBRE are long-established Property Advisors; we have a responsibility and obligation to ensure our Clients are aware how IPMS affects them.