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Top trends in facilities management 2018 edition: How society, demographics and technology are changing the world of FM

TOP TRENDS IN FACILITIES MANAGEMENT

Contents Foreword: a new approach

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Top trends in FM: a summary

06

The new age of outsourcing Outsourcing evolution

08

Integrated property and facilities management

11

User experience Personalisation 12 Wellness 14 Flexible space, co-working and collaboration

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Collaboration and partnership The supplier/client relationship

16

Long-term partnerships

18

Digitising FM The smart workplace

20

Data-driven decision making

23

Artificial intelligence

24

Conclusion 26

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FOREWORD: A NEW APPROACH

TOP TRENDS IN FACILITIES MANAGEMENT

Foreword: a new approach In 2017 we released our first Top Trends in Facilities Management report, which examined ten key trends transforming the world of work and commercial real estate. Our aim was to help FM professionals get a clearer picture of the latest developments in their world, and help them understand what might be next.

In the 18 months that followed, it’s clear the world of facilities management has continued to change rapidly. Macro influences such as demographics, technology and social changes are shifting the way the workplace is viewed and what people expect from it.

their supplier with the intention of building a partnership, and platform for collaboration and innovation; the focus is long-term. Rather than the outdated RFP and presentation process, we are increasingly cosolutioning alongside our prospects and clients.

Increasingly people want to choose where and when they work and they look to the workplace – wherever that may be – to deliver much more in the way of services and amenities. Every day, technology is pushing the boundaries of what real estate can deliver for organisations.

As a result of these shifts, clients and suppliers need to be more agile and work together to provide a solution that is suitable for now, yet flexible enough to adapt to a rapidly changing future.

Facilities management as a profession is transforming: it’s no longer purely focused on the asset, building or plant, rather on enabling the user experience and in turn, business outcomes.

These are just some of the issues explored in this report. An increased focus on the user experience and smart technologies also contribute to an exciting future for our industry.

The client/supplier relationship This new focus on the user experience has driven a change in the client/supplier relationship.

I hope this report offers useful insights. You will see a number of our subject matter experts listed on each page. If you’d like to discuss any of the topics covered, please don’t hesitate to contact them.

The facilities management delivery model we see today goes far beyond simply delivering building efficiencies and cost savings. Clients increasingly choose

IAN ENTWISLE CEO Global Workplace Solutions, EMEA ian.entwisle@cbre.com

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TOP TRENDS IN FACILITIES MANAGEMENT

TOP TRENDS IN FACILITIES MANAGEMENT: A SUMMARY

Top trends in FM: a summary The new age of outsourcing

Collaboration and partnership

Outsourcing

1.

Integrated property

2.

evolution

6.

and facilities management

By 2025 the global outsourced market in FM services will be worth $1 trillion. Flexibility is a key driver, and stability is a core concern.

Progressive organisations are bringing advisory and transaction services, facilities management and project services under one supplier and point of control.

Impact

Impact

ww Greater opportunity for in-house teams to focus on core activities and deliver strategic value.

Relationships between the supplier and client are changing. The customer wants to select the right partner to ensure cultural alignment from the beginning.

Impact and recommendations

ww An FM ‘partner’ who can offer insights on how best to use CRE to support strategic goals.

3.

8.

Personalisation

20.4 billion connected things will be in use by 2020, up from 8.3 billion in 2017. Smart buildings with lights, sensors, windows, HVAC units, doors and CCTV integrated into a network are becoming increasingly common.

ww There will be a growing demand for warehouse logistics particularly larger, more complex environments. ww Property directors must look at their future portfolios and consider how the balance will shift between physical and virtual space. ww Different FM skill sets will be needed to support these new environments.

Four out of five occupiers have, or plan to introduce, a wellness programme, and an even higher proportion are interested in wellness-capable buildings.

Impact ww Growing pressure on FM professionals to provide wellness programmes that boost productivity, attract talent and reduce sickness and absenteeism. ww Greater collaboration needed between FM, RE, HR and IT to deliver successful buildings and programmes.

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ww If built properly with shared savings initiatives, these terms can drive positive behavioural changes.

The smart workplace

Impact and recommendations

Wellness

ww The ability to drive cost-saving initiatives can be realised within longer-term contracts.

ww Re-evaluate the RFP process to provide co-solutioning that works for both parties.

Digitising FM

5.

ww The ever-changing business and real estate landscape requires a more agile approach.

ww Collaborate and work effectively together for long-term real estate solutions.

ww Cost savings and efficiency during every stage of the ww A more transparent view across building lifecycle. the portfolio, leading to more effective risk management.

4.

Long-term partnerships The demand for more advanced technology integration and greater collaboration has driven longer term, more advanced contractual partnerships.

Recommendations

User experience

Technology is changing the way we shop and this will have an impact on the retail portfolio.

Online channels will play an increasingly dominant role in the customer journey.

7.

Benefits

ww Greater compliance, consistency and simplification of processes and decisionmaking.

ww Suppliers must have the financial stability and infrastructure in place to deliver on their promises.

The supplier/ client relationship

Flexible space,

co working and collaboration Nearly 75% of 2018 EMEA Occupier Survey respondents expect companies to provide collaboration and social spaces. There is also growing interest in managed workspace and co-working, with use expected to increase substantially in the next three years.

9.

Impact on real estate and FM ww There is greater opportunity to enhance the end-user experience with convenient, tailored services. ww Gain more insights to drive efficiency manage costs – visitor numbers, meeting room use etc. ww For it to be truly smart, a building may need to be built from scratch rather than trying to retro-fit.

Data-driven By 2025 data analytics will be critical for addressing costs and performance. Nearly half of occupier companies expect to hire data scientists in the coming years.

ww Use serviced workplaces for ‘swing space’ and overflow while managing capital spend. ww Foster innovation by placing people in collaborative spaces.

Artificial

intelligence

decision making

Benefits and recommendations Recommendation

10.

The market for robotics is small but growing.

Sales of professional service robots rose by 24% in 2016. As sensor technologies open up new robot applications, the total number in FM could grow significantly.

ww Measure performance – property and people – and the links between them.

Benefits

ww Combine data and benchmarks to drive improvements for example in energy usage.

ww Manage labour costs on specific tasks and increase efficiency through automation.

ww Gain a global picture of the portfolio and deliver real value.

ww Perform jobs out-of-hours and dangerous tasks like working at height more safely.

ww Be selective in the data you to choose to use.

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THE NEW AGE OF OUTSOURCING

TOP TRENDS IN FACILITIES MANAGEMENT

The new age of outsourcing Outsourcing evolution In 2016, Frost and Sullivan predicted that by 2025 the global outsourced market in FM services would be worth $1 trillion, with bundled and integrated services accounting for 35 per cent of global revenues1. While that prediction rings true today, the past 18 months have seen different conversations emerging between clients and providers.

Stability and flexibility The main driver of outsourcing has shifted from purely cost management, to a more strategic desire to enhance end-user experience and free up in-house teams to allow them to focus on core business activities, rather than the nuts and bolts of FM delivery.

“Agility is increasingly important for our clients,” explains Tom O’Connor, Executive Director, Local Facilities Management, UK&I for CBRE. “In a fluid environment, where businesses can grow, shrink and relocate rapidly, an outsourcing partner provides flexibility on the real estate front, while the business focuses on its strategy.”

Consider the number of areas the average in-house facilities team works across: from the cost of leased space, the lifetime of plant and equipment, energy consumption, technical maintenance, user experience, business plans and HR. Outsourcing allows a more strategic, proactive approach to these areas. The best outsourcing partner will deliver a local, highly tailored service backed by the expertise and resources of an expert provider.

As John Maidment, CBRE’s President of In-Country LFM Sales, explains, the best providers will act as an extension of your own team. “You get the very best hard service delivery and technology platforms, but with the personal, customised approach you need from a local partner. The best providers will allow you to choose between dedicated on-site engineers or a more mobile, national team, depending on business size and locations.”

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Recent years have seen a number of highprofile outsourcing contracts and firms hit the headlines, for all the wrong reasons.

John Maidment stresses the importance of finding the right provider. “It’s vital to choose a partner who can actually deliver what they say they can,” says John. “You need to consider a provider’s financial stability, good pricing strategies and strong infrastructure.”

New customer types Technology is increasing competition across different industries, driving a new wave of companies to outsource their real estate functions. Some industries like manufacturing, and defence, have traditionally been slow to embrace outsourcing, but fast-paced start-ups are rapidly disrupting these markets, forcing the original players to reinvent themselves.

“We are certainly seeing an increasing trend of Industrials coming to market”, says Managing Director of Industrial, James Withey.

“Traditionally ‘asset-heavy’ manufacturers are rationalising their portfolios to ensure they remain competitive in a changing landscape. The digital age is upon them, providing a real impetus for change. Activities not core to production and logistics are therefore being outsourced. A provider that has the ability to contribute strategically and deliver operationally is being seen as a real advantage.”

Contacts John Maidment President Sales, Local Facilities Management john.maidment@cbre.com Tom O’Connor Executive Director, Local Facilities Management tom.oconnor@cbre.com James Withey Managing Director, Industrial and Oil & Gas james.withey@cbre.com

It’s vital to choose a partner who can actually deliver what they say they can John Maidment, President In-Country Sales

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TOP TRENDS IN FACILITIES MANAGEMENT

THE NEW AGE OF OUTSOURCING

Integrated property and facilities management

In this scenario your real estate partner will have full visibility across the life cycle of the portfolio and can make properly informed recommendations,

Corporate real estate as a function (both in house and outsourced) had traditionally organised itself around four key stages:

Guy Holden President of Enterprise Client Solutions

ww Plan, e.g., align portfolio “supply” with business “demand” ww Transact, e.g., buy, sell, lease, sublease and dispose of real estate assets ww Build, e.g., build and modify space to meet business needs ww Manage, e.g., maintain facilities and deliver workplace services to the occupants (employees) In the past, many companies believed that no one service provider could “do it all”, so partnered with various providers who each looked after a certain stage and service offering. While appropriate and valuable at one time, the traditional, fragmented approach to outsourcing by function and geography has led to unintended consequences today, and many forward-thinking organisations are now bringing services together under one supplier.

“Decades of outsourcing in functional silos have led to complex and fragmented outsourcing models, delivered by a combination of large and niche service providers by geography, function and even asset type,” explains President of Enterprise Client Solutions, Guy Holden.

“Now businesses are demanding more integrated processes, analytics and innovation.”

There is a difference between simply bundling all services together under one supplier, and integration, he explains.

“True integration means a fully integrated team with a single point of accountability and control –everything from facilities management to advisory and transaction services, project management and energy consulting.”

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Early engagement and involvement While each service line has a specific role to play across the life cycle, integration provides the opportunity for vital consultation at different stages. The risk of a project management team completing work, only for the facilities management team to discover the work isn’t up to operating standards; or a leasing agent securing a building for the FM team to find the assets are in desperate need of upgrade, are significantly reduced when each service has visibility and input at an earlier stage.

In this situation, organisations are on the front foot went it comes to risk. “You have a team in place that can look across your portfolio, identify risk and put in place measures to help you manage it and avoid the potential costs that could arise from it.”

Contacts Guy Holden President, Enterprise Client Solutions guy.holden@cbre.com

“While functional excellence is critical,” says Guy, “the reality is that no one function is truly capable of delivering the best possible outcome – and value – on its own.”

Full visibility of the portfolio At a basic level integration offers greater consistency in the quality of services as well as simplification because key decisions are made by fewer people with knowledge of all the pieces of the puzzle.

At a strategic level the single real estate service integrator acts as a partner, with full visibility of corporate goals and operations and can make a significant organisation-wide impact. “In this scenario your real estate partner will have full visibility across the life cycle of the portfolio and can make properly informed recommendations,” he explains. This can involve anything from advising on lease re-gears and renewals, to guidance on the right locations for sourcing specific skills, to the workplace strategy and services needed to drive performance.

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TOP TRENDS IN FACILITIES MANAGEMENT

USER EXPERIENCE

User experience Personalisation

opened a two-way portal that allows everything from people’s music tastes to their personal finances to be known, as well as Internet searches and ‘likes’ on social media. In turn, those preferences allow personalised advertising content.

Our latest EMEA Occupier Survey indicates the growing trend towards space as a service, rather than just an operational and functional part of the business2.

The key trend is towards the user experience, underpinned by three key pillars: technology, wellness and flexible working.

As a result, people increasingly expect a highly specific experience, where recommendations, choice of products, product features and even delivery options are tuned to them. The ability to understand consumers and react to trends and demands has never been so analytically precise.

The next level of user experience is allowing the user to personalise their own space and experience. Kate Smith, CBRE’s Solutions & Product Development Director, notes a rapidly growing focus on service and hospitality within the workplace. “People’s expectations around the amenities and services companies provide are really increasing,” she says. “Employees want a high-quality workplace experience which makes their lives easier, and is tailored to them. This includes everything from dry cleaning and parcel delivery to front-of-house services such as reception and concierge.”

This change in focus will require higher demand on the real estate resource and will effectively blend service and workplace together.

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Technology enabling the personal experience Technology is a core future trend for occupiers; 62% of 2018 EMEA Occupier Survey respondents were looking to invest in real estate technology in the next two to three years, and a further 8% expect to invest in the period from 2020 onwards3.

The rationale for this investment has shifted from purely efficiency and cost to a focus on people; attracting and retaining talent as well as improving experience and productivity. With smart phones and devices becoming ever more present, corporate real estate providers are increasingly turning to apps to deliver this.

CBRE 360, launching across EMEA in late 2018, lets building users to create their own personalised space and experience.

The app will enable users to locate colleagues and navigate the workplace, reserve workspaces, access food and beverage as well as basic building and high-end concierge services, among other activities. These customised solutions will reflect each client’s unique culture and workplace requirements.

A changing shopping experience Technology also presents a wealth of options in terms of where and how people shop. The speed, convenience and reliability of today’s technology has

The retail sector was one of the first to recognise the potential of digital platforms. While many asset-heavy, inventory laden retailers have been slow to react, the ‘e-Tail model’ isn’t burdened by the same infrastructure and enjoys all the advantages of high-speed global connection with its customers. As a result, its growth has been rapid.

What does this mean for real estate?

While the consensus is that online channels will not replace stores they’ll definitely play a more dominant role as digital services grow and feed consumer expectations.

This is triggering retailers to review the location, size and function of their real estate. Retailers may not need as many stores, or might opt for a smaller footprint.

Technologies such as CBRE’s Calibrate platform are helping retailers pick the best location. The service analyses the digital footprints of more than 15 million mobile phone users, tracking them to within five metres. This insight informs companies who is spending what, where and when.

By tracking the footfall of millions of customers, Calibrate enables clients to learn more than ever about their retail locations and make faster, more scientific investment decisions.

“The convenience of being able to procure goods and services via on-line platforms continues to drive the demand for Warehouse & Fulfillment centres,” observes James Withey, Managing Director, CBRE. “Never before has the supply chain been so integrated and digitally connected.” These automated and sophisticated facilities are often as critical and complex as the data centres that drive them.

The result is a higher demand for technical skills to support these environments, often with resources embedded, to ensure seamless 24/7 performance.

In view of this, he argues, property directors of retail organisations must look ahead and think about the balance between physical and virtual space. At the very least, virtual and physical channels need to work together and planning for this inevitable shift is necessary.

Clients seeking advice or support during this evolution can contact a specialist supply chain advisory team, like that within CBRE, for the best guidance.

Contacts Josh Beer 360/Flexible Office Lead joshua.beer@cbre.com Kate Smith Solutions & Product Development Director kate.smith@cbre.com Martin Summerscales Director, Retail martin.summerscales@cbre.com James Withey Managing Director, Industrial and Oil & Gas james.withey@cbre.com

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TOP TRENDS IN FACILITIES MANAGEMENT

USER EXPERIENCE

Flexible space, co-working and collaboration Nearly 75% of 2018 EMEA Occupier Survey respondents expect companies to provide collaboration and social spaces8. Other priorities for corporate real estate executives include agility and flexible working, viewed by employees as an important component of the workplace.

Wellness The wellness agenda is not a new concept within the workplace, but it has evolved from a ‘nice to have’ into a core focus of businesses. According to CBRE’s 2018 EMEA Occupier Survey4, four out of five occupiers have, or plan to introduce, wellness programmes. An even higher proportion have some degree of preference for wellness enabled/capable buildings.

Wellness is particularly close to the hearts of millennials who have a high commitment to health and wellbeing.

As Goldman Sachs reports, millennials define ‘healthy’ as more than just ‘not sick’ – it’s a daily commitment to eating well and exercising5.

So what do most corporate health and wellness programmes comprise? They are mostly a balanced mix of physical and mental health awareness programmes, exercise and nutrition, and some form or mindfulness or relaxation sessions.

Many companies are taking an extra step in pursuing wellness certification for their buildings. CBRE has applied wellness-led features and services in its offices in LA, Amsterdam, Warsaw and Madrid which follow the principles of the WELL Building Standard6 for air, water, nourishment, light, fitness, comfort, and mind.

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A challenge remains around how to implement wellness into older buildings.

Landlords must consider retrofitting or even new building stock, each of which come at a cost. The question will be what happens to redundant buildings that can no longer cope with these new requirements.

Bottom line benefits It’s not hard to see why these programmes are growing in popularity. Apart from supporting the wellness of employees, they bring benefits for business. FM professionals who introduce health and wellness services are helping to attract and keep talent and reduce the cost of absenteeism. CBRE’s Healthy Offices research suggests that there is a direct relationship between wellness measures and the bottom line, as they can improve employee productivity by an average of 10 per cent, and as much as 45 per cent in certain cases7.

So where should corporate real estate start when it comes to supporting the wellness agenda? In the short term, there are some low cost, quick wins that can boost wellness, like using a meeting room to run lunchtime yoga sessions, offering healthy options in the cafeteria and vending machines as well as subsidised gym membership.

But in the long term, for wellness programmes to succeed, they have to be supported across the organisation.

Key functions like facilities management, human resources, IT and real estate need to work together to make it a comprehensive, lasting approach.

For more read CBRE’s reports: ww ‘The Snowball Effect of Healthy Offices’ ww ‘Wellness in the Workplace – Unlocking Future Performance’

This appetite is driving the flexible office market to mature quickly, with many companies viewing flexible space as a key element of the portfolio. The Survey suggests an expected increase in moderate to substantial use of flexible space, from 30% today to 45% in the next three years – this is the most popular asset type for future expansion9.

A typical scenario for a larger occupier with operations across a few sites might be that it finds itself in a situation where the lease on one of its locations is about to expire, leaving it in need of ‘swing space’ in which to put people for 18 months to two years until its other leases mature and it can move all its people at one time.

In Central London alone serviced offices contributed 19 per cent of total office take-up in 2017; 2.3m square feet, compared to 1.0 million in 201610.

Co-working

While it’s tempting to think this trend is restricted to start-ups or SMEs, that’s not the case. Richard Holberton explains.

“We’re also seeing adoption of serviced workspaces by a much broader range of occupier types – banks, professional services firms, financial analytics companies among others. And it’s for a wide range of reasons.”

As with managed workspace, where space and amenities are provided by a third party, co-working involves several different organisations, businesses and individuals sharing space. The co-working movement, as it has been identified, speaks to the growing desire among professionals and creatives for autonomy and a lack of hierarchy, flexibility and community.

There’s some evidence that corporates want to tap into this. “Placing people in a co-working environment helps them access the knowledge in the building.

Rather than spending time and money recruiting people, if you’re working in an incubator you’ll find people with whom you can ‘co-create,’” explains Simon Calvert, Senior Director in CBRE’s Advisory and Transactions business.

CBRE supports its clients to source both serviced and co-working spaces. As Simon explains, there are clear benefits for corporates. “The client pays a slightly higher quarterly rate, but all other costs are taken care of. It’s classified as operational versus capital spend and allows the occupier greater flexibility around extending or exiting a lease.”

The challenge While co-working space use continues to increase, there are concerns around heightened use of third-party office space leading to challenges around company brand and culture, and a fragmentation of the workforce. These fears may well create a cap on how much of a company’s portfolio it chooses to place in co-working spaces. It could also lead to larger corporations developing their own version of these type of spaces, which mirror the vibe of third-party providers but wholly reflect the corporate brand.

Occupiers need to develop and evaluate their portfolios to ensure they have the best blend of core and flexible space and configure both to best fit the requirements of their users. This will require continual monitoring as the workforce evolves while still ensuring a balance between enterprise efficiency and cost effectiveness.

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COLLABORATION AND PARTNERSHIP

TOP TRENDS IN FACILITIES MANAGEMENT

Collaboration and partnership The supplier/client relationship The evolution of how people are communicating, increasing pressure on business transparency and an increasing reliance on data, are all changing the landscape of how customers are selecting, working with, and going to market for bespoke integrated facilities management solutions.

True partnership In recent years there has been a clear shift in the selection and relationship landscape, with an increasing focus from both clients and suppliers towards working in genuine partnership. These emerging relationships enable both service provider and customer provider and customer to develop clear roadmaps for positive change together. This collaborative approach is driven by a joint commitment by both parties to leverage each party’s strengths, embrace shared cultures and initiatives that develop innovation and improvement, encourage knowledge sharing and best practice, and jointly reward success.

“With a more connected workforce, the proliferation of millennials, lower cost technology, the ‘always on’ economy and need for quicker turnarounds, there is a greater emphasis on collaboration,” says Vince Connolly, Head of Client Care for CBRE’s Global Workplace Solutions EMEA business. “We’re seeing this demand across the multitude of teams we support and places we operate.”

Suppliers need to demonstrate an open attitude towards communication, service

excellence and innovative solutions, along with a detailed understanding of client requirements and the ability to drive value for money. Customers want to select the right partner to ensure cultural alignment from the start.

“Emphasis on overall collaboration and partnership during the contract period enables true innovation creation, as well as the ability to drive value for money.”

The selection process We are seeing a material change in the customer/supplier evaluation process.

There has been a shift to longer periods of co-solutioning, rather than traditional RFP methods. This new approach involves a more mature conversation through series of high level workshops, longer periods of co-solutioning, and increased touch points (often across multiple geographies). All of this allows clients to thoroughly evaluate a supplier’s attitude, knowledge and skill level, as well as general desire to work together for the sustainable benefit of both organisations.

“Additionally,” says Vince, “we are seeing potential customers wanting to fully understand our sector experience and

Emphasis on overall collaboration and partnership during the contract period enables true innovation creation, as well as the ability to drive value for money.”

how that will benefit the relationship both immediately and into the future. The RFP outdated process and tender presentation is becoming less used due to its ‘point in time’ selection activity.”

He says companies are also increasingly interested in how their people will be looked after following an outsourcing agreement.

“With any large contract, a number of people will transfer from the client into the provider,” says Vince. “We’re seeing a growing interest in supporting those employees through the transition.

Companies are really invested in that change process and want to ensure their people, their talent, are well looked after and have the same progression opportunities when they start working for the outsourcing company.”

Companies are also keen to maintain their own or incorporate more responsible sourcing strategies. One of the key benefits of an outsourcing provider is their supply chain access, but some customers look to combine this with their own local sourcing strategies to support smaller and local businesses.

Contact Vince Connolly GWS Head of Client Care vince.connolly@cbre.com

Vince Connolly, GWS Head of Client Care

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COLLABORATION AND PARTNERSHIP

TOP TRENDS IN FACILITIES MANAGEMENT

Long-term partnerships As well as moving towards integration, the corporate real estate outsourcing industry is seeing an overall increase in the length of contracts.

This is driven not only by a maturing of the market, but also a greater desire from clients to realise the benefits of initial investments (in things like technology and training), and to develop stronger partnerships across the entire supply chain.

Innovation, rationalisation and process improvements come over time, as do the payoffs from investing in people.

“All relationships need time to mature,” says Matthew Farrant, Managing Director for Critical Environments, “so do successful contracts”. With that maturity, greater returns on initial investments can be realised for both parties.

With CBRE recently signing an indefinite contract renewal with a large client for integrated facilities management services – a company first – there are strong

“Long term partnerships are not only an investment from the client, they also allow us as suppliers to invest in even more in our customers, for longterm benefits.

indications that clients are increasingly opting for and willing to invest in longterm collaborations.

The impact for suppliers

Contact Matthew Farrant Managing Director, Critical Environments matthew.farrant@cbre.com

These longer contract terms mean suppliers need more flexibility to meet the changing priorities of their clients; a contract signed five years ago will no longer suit the needs of a rapidly changing company, and suppliers need to take the opportunity to work with their clients to develop new (or flexible) contract terms, aligning these to the nearand long-term goals.

While longer terms mean supply partners must be willing to take on more risk, they do allow greater investment and ability to drive cost saving initiatives.

If designed properly with shared savings initiatives between supplier and client, longer contract terms can drive positive behavioural changes on both sides, by encouraging a more open and collaborative relationship.

“Long term partnerships are not only an investment from the client,” concludes Matthew, “they also allow us to invest us as suppliers to invest even more in our customers, for longterm benefits.”

Matthew Farrant, Managing Director, Critical Environments

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TOP TRENDS IN FACILITIES MANAGEMENT

DIGITISING FM

Digitising FM The smart workplace Imagine arriving at a building where the security system automatically recognises you, scanning your iris or fingerprint and allowing you through the barriers. You take the lift, which knows which floor you need, and when you emerge, your phone shows you the most direct route to your meeting room.

As you arrive, the temperature and lighting adjusts to take into account the fact that there will be two people in the room and the telecom system automatically dials you into your conference call.

Much of the technology already exists to make this happen – the ‘Internet of Things’ (IoT) as it’s known, relates to the ability to connect devices over the Internet and allow them to talk to us, to applications, and to each other. Gartner forecasts that 20.4 billion connected things will be in use by 2020 up from 8.3 billion in 201711.

Only a few companies have yet brought the concept of the truly smart building to life; key examples include the Edge in Amsterdam, IBM Watson’s ‘Collaboratory’ in Munich, and Intel’s new building in Tel Aviv. But it’s predicted that intelligent buildings will become more and more commonplace.

CBRE’s strategic partner Johnson Controls, have their own smart building in Cork, Ireland. The global headquarters integrates the control and optimisation of more than 10 building functions. These range from fire protection, security and asset tracking systems, to features that enhance building efficiency and the comfort and convenience of building users, such as energy-saving lift and lighting management, HVAC maintenance and smart parking

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Improving user experience CBRE is integrating smart building technology into its new offices in Southwark, London, and is working with a number of organisations to help them create smart buildings. Energy efficiency, sustainability and the ability to support a mobile workforce are big drivers for companies here. A lot of it is to do with attracting and retaining the best staff – making life as comfortable and as easy as possible for people.

Clients see smart buildings as a means of enhancing the ‘customer experience’ for employees, they offer corporate real estate professionals the kind of detailed data-driven insights into the customer experience they’re actively seeking.

“Customers are becoming increasingly interested in the smart workplace and what that could mean for them,” explains Steve Poole, Sales Director for CBRE’s UK Services Division. “Connected buildings, connected employees and building user experience are now forming part of our customers’ overall property strategy.

Sensor technology, the Internet of Things, Artificial Intelligence and machine learning are all now part of everyday conversation. It’s clear that the way we use our facilities is changing.”

You need to consider technology integration, wellness, specification levels and more, in order to create a truly smart building.

Matthew Eastwood Managing Director, Project Management EMEA

Build rather than retro fit However for those organisations considering embarking on this, plenty of thought is needed. “Smart buildings demand a huge amount of planning, and retrofitting the technology can be expensive and disruptive,” warns Matthew Eastwood, Head of Projects. “Smart building consulting should be factored into the design stage; it can’t be a bolt on. You need to consider technology integration, wellness, specification levels and more, in order to create a truly smart building. It’s complex, but we can achieve fantastic client outcomes and CBRE has a proven track record of delivering smart facilities.”

Contacts Matthew Eastwood Managing Director, Project Management EMEA matthew.eastwood@cbre.com Steve Poole Sales Director, UK Services steve.poole@cbre.com

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TOP TRENDS IN FACILITIES MANAGEMENT

DIGITISING FM

Data-driven decision making Smart workplaces equal smart insights. The benefits of Internet-enabled building management systems are compelling. A business has the ability to put all systems on a common reporting platform to generate easily accessible information and identify faults, performance issues and cause-and-effect scenarios. It also enables them to manage their existing space, and forecast what they’ll need in the future.

Frost and Sullivan predicts that by 2025 data analytics will be critical for addressing issues such as energy savings, intelligent buildings, reduction of total life cycle costs, business efficiency and sustainability12. Respondents to CBRE’s 2018 EMEA Occupier Survey also acknowledged this: 65% cited better data quality and accuracy as key to achieving strategic real estate goals13.

Today’s technology enables real estate professionals to gather more data than ever before, but choosing and analysing the right data in the right way remains a challenge. Technology such as CBRE’s Enterprise Data Platform – EDP/BI – addresses that challenge for even the most complex estates by combining data from every part of the real estate lifecycle into configurable, data-driven reports, giving unprecedented insight into the performance and value of our clients’ facilities.

Smart, actionable insights “FM providers often have an obligation to manage energy consumption, but many struggle to make a significant impact beyond individual plant upgrades,” explains Michael Hughes, CBRE’s EMEA Head of Digital & Technology. If organisations invest in technology, he argues, it can give them a better window into their world and enable them to make more informed decisions.

“For example, if you measure your energy consumption, compare it with weather data and benchmark it against your peers – you then have a clear idea about whether there may be a return on investment from changing plant or operating systems,” he argues.

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It’s all about getting a clear picture of the issues, to put the right plan in place. When you add to your insight by integrating heating, ventilation and air conditioning with security so that it automatically shuts down overnight, you can start to make a real impact he adds.

The successful companies will be those that are selective in the data they use, recognising that to stay flexible it may not be possible to measure the impact of every single indicator. “You can measure a million different things – but focus on smart, actionable insights, rather than just more insights.”

Automation, automation, automation Data doesn’t just make a difference when it comes to individual assets, says Michael. Providers like CBRE are also using data to automate and improve their processes. In some cases, companies can draw inspiration from different industries to apply it to their own.

“Online supermarkets, for example, use data to optimise their delivery schedules, so vans and drivers are working in the smartest way possible. CBRE has done the same thing, taking a manual scheduling process for engineers, and applying algorithms and data insights to get engineers to more jobs, more quickly.

More wrench time and less windscreen time!”

“The rise of smart phones and connected buildings brings great opportunity for efficiency,” Michael argues. “Traditionally, faults are reported by phone or email: ‘There’s a broken light on floor three’.

Our engineer tours floor three to find the light, check it, then goes to store for the right replacement. With smartphones and smart buildings, an employee can

You can measure a million different things – but focus on smart, actionable insights, rather than just more insights.

Michael Hughes Head of Digital & Technology

take a picture of the light with their phone and send it, geo-tagged with a location accurate to within under a metre. Now our engineer can see what type of light bulb, and be guided straight to the location; it’s clear what the issue is, where it is, and what’s needed to fix it. Even smarter, some assets have sensors which auto-report their own faults, and tell an engineer exactly what’s wrong from the start. Ultimately it saves time and money for the provider and means happier end users.”

Contacts Michael Hughes Head of Digital & Technology mike.hughes@cbre.com

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DIGITISING FM

TOP TRENDS IN FACILITIES MANAGEMENT

Artificial intelligence Japan and many European countries have rapidly aging societies and it’s predicted that either technological innovation or immigration will be needed to supplement the workforce by 2025. Robots are already entering specific environments like hospitals where Automatic Guided Vehicles transport food, linen and hospital stores in a safe, hygienic and efficient way.

According to the International Federation of Robotics (IFR) the market for professional cleaning robots is small but growing. The total number of professional service robots (covering use in logistics, defence, medical and field sectors) sold globally in 2016 rose by 24 per cent to 59,706 units, up from 48,018 in 2015.

Sales of professional cleaning robots are expected to reach 6,100 between 2018 and 202014.

As sensor technologies open up new robot applications, the total number in facilities maintenance could be much larger15.

Kirsten Bradbury, CBRE’s Managing Director Facilities Management sees robots as a means of responding to a key challenge in the industry. “Traditionally FM is about labour and man hours and therefore by its very nature it’s challenging to make it efficient because the cost of labour goes up every year – so the more stretching end of the industry is looking at what changes it can make in order to keep up with other industries. Robotics fits that category.”

The more stretching end of the industry is looking at what changes it can make in order to keep up with other industries.

Kirsten Bradbury, Manging Director, Facilities Management

Robots and Drones The benefits of using robots go beyond savings on headcount. Tasks can be performed out of hours when buildings and grounds are empty. It’s also possible to save on light, heating or cooling, because when robots need to ‘see’ they can carry their own lights and sensors.

What’s more they can perform difficult or dangerous jobs like working on the outside of tall buildings – the use of camera-equipped drones to inspect roofs, and robots cleaning windows on skyscrapers are two examples.

While robot cleaners are somewhat commonplace today, some companies are experimenting with security robots, which patrol their buildings at night, and robot receptionists, who meet and greet visitors, take them to rooms and helping them with travel information.

For more on technology in the workplace read CBRE’s report: ‘Digitization – the Key to Maintaining Competitive Advantage in Enterprise Facilities Management.’

Contacts Kirsten Bradbury Manging Director, Facilities Management kirsten.bradbury@cbre.com Gino de Jonghe Director Client Solutions, Digital and Technology gino.deJonghe@cbre.com

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CONCLUSION

Conclusion A new approach to FM

Footnotes 1. T he Future of FM. A New Era of Service Integration, Energy Management, Business Productivity, Smart Technology, and Internationalisation. Frost & Sullivan.

This report has touched on just some of the key trends currently influencing FM. What’s clear is that the relationship between FM providers and clients is shifting towards a more strategic, long-term partnership, driven by an increased focus on the user experience and business outcomes.

2. EMEA Occupier Survey, CBRE, 2018

As technology and changing attitudes drive an increased sophistication in facilities management, its people are playing an increasingly important role. The next generation of real estate professionals will be more attuned to a client’s overall needs, not only focused on managing assets or reducing costs. Real estate services are becoming increasingly integrated, and this, combined with advances in technology, is allowing a personalised, enhanced experience for the end user.

7. T he Snowball Effect of Healthy Offices, CBRE, 2017

3. EMEA Occupier Survey, CBRE, 2018 4. EMEA Occupier Survey, CBRE, 2018 5. Live, Work Play: Millennials, Myths and Realities, CBRE, 2016.

6. www.wellcertified.com/well

8. EMEA Occupier Survey, CBRE, 2018

9. EMEA Occupier Survey, CBRE, 2018 10. Source: CBRE proprietary database.

11. http://www.gartner.com/newsroom/ id/3598917 12. The Future of FM. A New Era of Service Integration, Energy Management, Business Productivity, Smart Technology, and Internationalisation. Frost & Sullivan.

13. EMEA Occupier Survey, 2018, CBRE 14. World Robotics 2017 Service Robots – International Federation of Robotics.

15. World Robotics 2017 Service Robots – International Federation of Robotics.

The future of FM is an exciting one. The key is for professionals and clients to embrace change, speed and flexibility, to shape this future for their own organisations.

About Global Workplace Solutions Global Workplace Solutions (GWS) is redefining ‘workplace’ because we believe every place of work can become a competitive advantage for our clients.

Productivity, reliability, engagement, quality, brand - the workplace contributes to business results, whether it’s an office, a retail outlet, a laboratory, a data centre, a manufacturing environment or a virtual location.

GWS is a division of CBRE which provides integrated solutions across large multi-discipline property portfolios for occupiers, helping them turn their real estate into real advantage.

We support predominantly corporate clients who buy services on a contracted basis all across Europe, the Middle East and Africa – even globally depending on their portfolio.

CBRE Disclaimer 2018 CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist.

To learn more about CBRE Research, or to access additional research reports, please visit the Global Research Gateway at: cbre.com/researchgateway

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For more information please contact: JOHN MAIDMENT President, In-Country Sales, Local Facilities Management john.maidment@cbre.com GUY HOLDEN President Client Solutions, Enterprise Accounts guy.holden@cbre.com TOM O’CONNOR Executive Director, Local Facilities Management tom.oconnor@cbre.com

cbre.co.uk/gws