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REAL ESTATE
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Landlords on the
Spot: Reacting to
tenants’ apostrophe
needs
Issue 4 - Sep / Oct 04
Around two years ago a large number of regional corporate real estate executives,
real estate agents, interior designers and developers were gathered on the 48th
fl oor of Exchange Square for a luncheon hosted by CoreNet Global and the Hong
Kong American Chamber of Commerce. Rather than the usual discussion about
whether rents would eventually go up or down, or whether the workplace was
really becoming more fl exible, a rather heated debate fl ared up. Tenants, good tenants,
were demanding a higher level of security from the developers and landlords.
With barely a year having passed since 9/11 the physical integrity and security of
their buildings was still being called into question, loudly. Now anyone having
read a lease contract in Hong Kong will quickly realise the building owner has the
upper hand and that being responsive is not a priority in the tenant-landlord relationship.
However, rents were steadily falling and this public attack was evidence
of genuine ongoing dissatisfaction. A new era in building security was heralded.
Has it arrived?
listening to tenants
Most building owners cited the 2001 September 11 attacks in the USA as an important
driver for change. The developers of IFC2 were particularly concerned because this
mega-skyscraper was midway through construction, erect to the 35th fl oor. They immediately
surveyed the tenants of the already occupied IFC1 to determine what response
should be taken. Landlords throughout the region did the same. Hugh Andrew, Senior
Asset Manager - Commercial, of Hongkong Land had “one month back to back meetings
with tenants to determine their wants and needs.”
Landlords in South East Asia, especially those with a portfolio that includes hospitality
projects, see bombings in Bali and Jakarta as being directly responsible for the
upgrades they made. Mok Lai Siong from CapitaLand said “Following the bombing of
Marriott Hotel in Jakarta, 2003, we updated our processes. Our in-house security chief,
who’s from the police force, recommended a series of measures to improve the security
management protocol. We will be able to replicate this at other premises both in Singapore
and abroad.” Now, continues Mok, “Our security audit covers potential terrorist
attacks and bomb hoaxes in addition to the usual security checks.”
communicating with tenants
Responding to tenants’ concerns required further and greater communication on security
issues. “Communication with tenants is that much more frequent and therefore
effective” says Jolyon Culbertson, Director & General Manager, Swire Properties
Limited. “Access control is getting more sophisticated but cannot of itself protect
buildings completely in an urban setting,” In addition, not all tenants want increased
security, forcing landlords to carefully balance needs in mixed tenant portfolios such as
Roppongi Hills, a large-scale mixed-use complex comprised of dozens of buildings including
a four million sqf offi ce tower, 800 residential units, a luxury hotel, a museum,
a cinema-complex as well as more than 200 shops and restaurants. This complex has
100 000 to 200 000 visitors per day. When implementing increased security measures
the most important factor, then, is to provide a deterrent, said Andrew with sentiments
echoed by other landlords on a regional basis, and to make sure tenants understand
the measures and the rationale behind them.
temporary measures
Responding to tenants’ needs has meant some landlords have brought about temporary or scaleable security measures. “In one of
our buildings where a US company occupies a whole lift zone, we set up full security checks for all in the main lift lobby. This was the
exception however, and “normal” procedures have been in place for most buildings,” said Culbertson. Many new buildings are making
provision for access control at main lobby level but will not implement usage unless the security situation worsens, says Andrew, who
has consulted experts who recommended a scaleable approach. Chater House, a Hongkong Land development completed in 2003, can
have turnstiles installed within hours if necessary. IFC2 has removable turnstiles but has maintained their use since opening earlier this
year. Temporary guard forces are also common, says Kurt Sigouin, Property Manager, Shanghai Centre, who scales the force up for special
events, which happen frequently in retail-offi ce mixed use developments.
lift lobby access and identity checking
Access control is one of the areas where landlords have been the most active in responding to tenants’ requests as it provides a significant and visible deterrent. “Access control equipment has also evolved so that it is economic to have systems that defi ne a person’s
authorised access to a much greater degree,” says Culbertson, showing that despite the huge amounts spent on security upgrades cost
still plays a role. However cost, labour and time do not stop a procedure’s implementation if, on balance, it will attract rather than deter
tenants. The Petronas Twin Towers, a landmark and icon in Malaysia as well as being the tallest building in Asia, has installed x-ray
equipment in the lobby in a move rarely seen outside the Philippines.
The balance between tenant convenience and security is hard to manage. Despite gaining in popularity, sign-in procedures have been
criticised for being inconvenient for tenants who have frequent visitors,. Even in markets such as Japan, which were previously considered systems. Mori’s Rappongi Hills has a 6 level non-contact IC card-key system including security gates at the lobby level and
card readers at tenant entrances. “Tenant requirements for extremely high-level security are getting more and more elaborate
e.g. fl oor-by-fl oor access control,” said Yasuda, a spokesperson for the company, “Our system has met those requirements
not only to control traffi c based upon schedule but also to meet to their diverse security level.
Newer buildings are designed with high-tech security systems as a matter of course. According to AIG project managers,
the new AIG Tower in Hong Kong will combine incorporate turnstiles. The system used by the soon-to-be-completed
newest, tallest building, Taipei 101, was developed specifi cally by Siemens and is something of a world fi rst. Cathy Yang
Assistant Vice President , Taipei Financial Center Corp. described the Visitor Access Control Kiosk System which requires
visitors to call ahead to the fl oor they wish to visit from a kiosk located in the lobby. If the tenant authorises the visitor then
a token that gives access to the turnstiles is issued, cutting administration time and permitting access based on the tenant’s
criteria. Newer buildings also allow for tenant security integration with the building automation system. Even in existing
buildings technology can be implemented to suit demands: City Developments Limited (CDL) has imposed restricted timing
on lift access where passenger lift access to vacant fl oors has been disabled.
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grounds and public space access control and surveillance
Access control is about securing a perimeter and reducing the number of entry options available to an intruder, says Andrew,
so it is not just the main public access points that need to be considered. CDL locks secondary entry points such as to
mailrooms and loading bays and tenants and visitors are all redirected to enter via the main entrances of the buildings. It is
common to implement one-way lock access for staircase door and car park lift lobby doors to restrict inter-fl oor movements
via the stairways. Many buildings are now installing HVAC systems that allow for individual fl oors and especially mailrooms
to be isolated from the rest of the building’s airfl ow system after such incidents as SARS or the 2002 anthrax scares, says
David Dumigan, Deputy General Manager, Project Management, Henderson Land Development Co Ltd. New buildings, he
continues, such as IFC2, are employing as standard positive air pressure in staircases to keep smoke out.
CCTV surveillance is a crucial part of the perimeter monitoring and is central to most landlords’ security planning. Most
have recently upgraded to 24 hour security monitoring and recording of loading areas, lift lobbies, car park and service lifts
- the most proactive landlords are able to follow an individual through the whole building. CCTV technology has improved
greatly with digital capture that can produce clear images in very limited light. “We can identify an individual with precision,”
thus providing a greater deterrent says Culbertson.
guards
Tenant surveys, such as those conducted at IFC1, showed tenants prefer
a greater visible guard force over more mechanised or procedural control
measures. The 15 year old Shanghai Centre has a heavy patrol force that
Sigouin says is still the best way to deter unwanted elements and to alert
tenants and management to any security or safety problems. Previously
choices were limited to the Public Security Bureau or maintaining ones own
force. Now, says Sigouin, building owners and managers in China are able
to outsource the task to private, even international, companies with more
accountability and professionalism generated through competition. Costs
may be higher but some feel it is worth the expense. As in Grade A locations
region-wide, the Shanghai Centre’s security force patrols the building
24 hours a day. It monitors each offi ce’s individual security system, which
includes other guards hired by individual tenants to manage queues in the
consulates that form a large part of the tenant mix.
staff
Education of all parties to new security arrangements, such as evacuation
procedures, has been one of the most important changes. Hongkong Land’s
Andrew states that it is not just security staff who should be aware of
heightened security. All staff members including security, cleaners, technicians
and car park attendants need to be trained to look out for suspicious people and packages in or around the buildings. Tenants too, says Goh, “We actively
engage and enlist their help in alerting us and police of any suspicious and unidentified
parcels or characters loitering around. We also advise tenants not to leave unwanted
items such as carton boxes and trash bags at lobbies and along common corridors, so
that we can spot alien objects quickly. Thousands of feet have walked down thousands
of fl ights of stairs in evacuation drills around the region since 9/11 but despite efforts
security professionals feel that it is occupiers, rather than the building owners, who are
letting the side down.
public cooperation
Anthony Goh, Assistant General Manager (Property) CDL says “Since 2001 we have
worked closely with the Police and other security agencies to review and enhance
our security measures for the safety of our tenants and occupants. The security of the
country and the region calls for a concerted effort not just by the governments but all
stakeholders to play a part.” Others agree and governments have now stepped in with
policies looking after the tenants in large commercial developments from Sydney to
Mumbai. Landlords of Grade A properties have all said that they cooperate and speak
with each other about security standards and measures, either individually or through
real estate owners and developers associations.
structure
“The level of awareness has particularly been seen in the design of new buildings,
which are increasingly accommodating race gates, and the upgraded level of security
guards remain to this day,” says Jones Lang LaSalle’s, Gavin Morgan in Sydney.
Elsewhere too, the most fundamental changes are in the newest additions to Asia’s
high-rise stock. New era buildings are not only wired and staffed for better security
but they have greater structural resilience, says Dumigan, Structural Engineer of IFC2.
In Asia buildings need to withstand huge wind loads for mega-typhoons, he continues,
and withstand enormous earthquakes. Structural standards applied in designing Taipei
Financial Centre include ability to withstand the strongest earthquakes in 2,500-year
cycle, and to resist wind forces of more than 60 meters per second. IFC2 has an unprecedented four stairwells and two fi re lifts that travel the length of the building in
one minute that can be used for both fi re fi ghters and evacuating injured or disabled
people. “Suddenly,” says Dumigan, “Structural engineers are important.”
It is likely that there will be more developments in the coming years with more technology
and as landlords compete to discover tenants needs on this new playing fi eld. But
what ever happens it is clear that a new era of buildings has arisen, literally. These
buildings are evidence of a fundamental change in mindset and landlord responsiveness.
This month the concrete was poured on what will be the newest, world’s tallest
building, Emaar Properties’ Burj Dubai. Two offi cials were present at the ceremony: His
Highness General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai
and the UAE Minister of Defence.
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ISSN 1994-9464
Key title: RFP magazine
Abbreviated key title: RFP mag.
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