01_Towards flexible future_ TU Delft campus real estate management strategy

Preface

Hereby we would like to present the report from Group 9 This report is a result of the assignment from the Real Estate Management course as part of the master track Management of the Built Environment at TU Delft. This course is given in the second quarter of the Master Management in the Built Environment We, Jimi van Leeuwen, Annick van der Lingen and Thanon Sommitr, engaged in this course and wrote this report in the winter of 2020/2021

For this report we had to work closely together Despite we were not always allowed to come to campus with the whole group due to the Coronavirus, the collaboration went very structured and the consultation went very smoothly Quickly we became familiar with online working and we enjoyed working together

We would like to thank the course coordinator Herman Vande Putte for his commitment in designing this course, our supervisor Tuuli Jylhä for her guidance and support during this process and our Corporate Real Estate Manager Jos Kikkert from the Amstelring Group organisation for his participation and the time he was willing to invest in the interviews

We hope that you enjoy your reading

Jimi van Leeuwen Annick van der Lingen Thanon Sommitr

Delft, January 31, 2021

Table of contents

Preface 2

Table of contents 3

Introduction 5

1 Definitions, History and Trends 9

1.1 Introduction 9

1.2 Definitions 9

1.2.2 Corporate Real Estate (CRE) 9

1.2.3 CREM defined in Campus context 9 1.2.4 CREM defined in TU Delft context 10

1.3 History 11

1.3.1 History of CRE 11

1.3.2 History and drivers for campuses 12

1.3.3 History and drivers TU Delft campus 12

1.4 Trends 14

1.4.1 CRE Trends 14

1.4.2 Trend clusters 14

1.4.3 Campus & TU Delft campus trends 15 1.4.4 Scenarios 17

1.5 Interview report part 1 21

2 Current performance 24

2.1 Introduction 24

2.2 Introduction to performance measurement 24 2.3 Stakeholders identification 24

2.3.1 Key player stakeholders 26 2.3.2 Current real estate demand of relevant stakeholder 26 2.4 Current CRE portfolio of the TU Delft -Accommodation supply 28 2.5 Supply vs Demand TU Delft Campus - Performance accomodation 31

2.6 Matches and mismatch analysis 32

2.6.1 Matches 32 2.6.2 Mismatches (supply exceeds demand) 32 2.6.3 Mismatches (demand exceeds supply) 32 2.7 Interview report part 2 34

3 Future 36

3.1 Introduction 36 3.2 Future demands 36 3.2.1 Scenario and future demand analysis 36 3.3 Strategy development 38

3.3.1 Future strategies 38 3.3.2 Hubbed campus 38 3.3.3 Modular campus 39 3.3.4 Focused campus 40 3.3.5 Evaluation and selection final strategy 41

3.4 Final strategy - ‘Hubbular’campus 42

3.4.1 Strategic interventions 43 3.4.1.1 Identity 43 3.4.1.2 Sustainability 43

3.4.1.3 Space optimization 43

3.4.1.4 Satisfaction and quality 44

3.4.2 Implementation plan 45

3.4.2.1 Financial analysis 52

3.4.2.2 Risk assessment 55

3.5 Interview report part 3 59

4 Conclusion 61

References 62

Introduction

In this report a future strategy for the campus of Delft University of Technology is described, based on the history, current performance and trends in the world of corporate real estate and in university campuses In this report the steps of how this strategy is established are described

The word strategy varies in meaning per author “Some definitions of strategy include the objectives of the organisation into the strategy Other definitions exclude the objectives and consider them set elsewhere in the management process” (TU Delft, 2020). In this report, the view of Mintzberg (1987) will be used to establish the strategy His view seems more a classification of the very different definitions that organisations use for the term strategy And, as Mintzberg adds, this is not an ‘or/or’ list but an ‘and/and’ list, because many organisations use different definitions simultaneously His definition is one of the more famous definitions of strategy, the so-called 5Pdefinition:

● plan a consciously intended course of action

● ploy a specific maneuver to outwit competitors or opponents

● pattern a consistent patterned stream of actions, what can be seen in retrospect

● position a means of locating the organization within a competitive environment

● perspective a cognitive state-of-mind held by organizational decision makers (Mintzberg, 1987)

Organisations develop strategies in response to a context in order to deploy resources that realise valuable output. The context is partly internal and partly external to the organisation. Figure 01 represents a three level organisation In general, the implementation targets of the higher levels create (part of) the context of the lower levels; the output of the lower levels is (part of) the input of the higher levels allowing these higher levels to realise their own outputs. The strategies of the different levels organise the links Achain of nested strategies is the result (TU Delft, 2020)

Figure 01: Management at different levels (TU Delft, 2020)

The four views on organisations as illustrated in the ‘Strategic alignment framework’ (figure 02) from Henderson and Venkatraman (1989), is used to give structure to this report Henderson and Venkatraman elaborated on how the business and supply side of real estate management should be aligned. The scheme consists of four views: Business Strategy, Business Operations, Resource Strategy and Resource Operations When applying this scheme to a particular organization, the different actors involved are allocated to a designated area based on their roles and functions (Henderson and Venkatraman, 1989).

Figure 02: Resources of organisations Henderson and Vankatraman (1989)

Furthermore, the report will work from macro to micro level in every step So every aspect will be described on organisational level, university campus level and then specified in the last step on the TU Delft level.

This report consists of logical steps in order to achieve the goal of forming a future strategy for the TU Delft Each step is reported in a different section and is supported by an interview taken with an expert out of the workfield First, the definitions, history and trends part, aims to define and elaborate on the field of corporate real estate and the developments which are made over time In the second step, the concept of performance measurement will be described Hereafter, (key)stakeholders are identified and measured against the four views of Henderson and Venkatraman (1989). Eventually, supply and demand of the TU Delft will be compared and the resulting matches and mismatches are evaluated The third part starts with describing three possible future strategies for the TU Delft as a result of certain scenarios Next, the final future real estate strategy for the TU Delft will be elaborated including an implementation plan for the strategy and a risk assessment All steps are visualized in the conceptual framework below (figure 03):

Figure 03: Conceptual framework (own figure)

The interviews throughout this process are held with Jos Kikkert, the corporate real estate manager from the Amstelring Group He contributed to this process report as he provided us with his knowledge and expertise in the corporate real estate world. He is at the moment also developing a strategy for Amstelring which made his input really valuable The overview of the outcomes of the interviews which were connected to each step, are described at the end of every step

1 Definitions, History andTrends

1.1 Introduction

In this first part of the report definitions used in corporate real estate, like organisation strategies and operational concepts, will be discussed followed by the history and trends in CREM These will be described from a macro level of organisations to the campus context and followed by the TU Delft specifically

1.2 Definitions

1 2 2 Corporate Real Estate (CRE)

The buildings and land which are used by an organisation, and which make it possible to operate and fulfil its business, is called corporate real estate (CRE). The aim of CRE management (CREM) is to align the organisation's business and real estate, to positively contribute to the organisational performance (Vande Putte, H , 2020) In figure 04, the alignment model of Henderson and Venkatraman (1987) with their four views, is translated to organisations in general It can be seen that a clear distinction is made between the strategic and operational level and the business and resource (real esta alignmen

Figure

Historica view on g ( y , ) p y, p g workplace for the people within an organisation became more important It became clear that suitable working conditions increased productivity among workers (Haynes, B , Nunnington, N , & Eccles, T, 2017)

1 2 3 CREM defined in Campus context

Alexandra den Heijer published a research about ‘Managing the University Campus’ in 2019 In this research she explains that due to the aging portfolio of universities on both technical and functional level, reinvestments are needed At the same time, many developments cause a high level of uncertainty in future space demand As a consequence, Dutch campus managers are in need of (better) information and tools to support their management tasks and to inform, involve or convince the various stakeholders, such as policy makers, users, controllers and technical managers These stakeholders represent the strategic goals, the user demands, the resources and the physical aspects of the campus (den Heijer, A , 2019) These strategic goals are visualized in figure 05, based on the figure of Henderson & Venkatraman (1989)

Figure 05; Strategic goals university campus (den Heijer, 2011)

1 2 4 CREM defined inTU Delft context

Focused on the TU Delft, also a lot of big changes happened since the existence of the TU campus Den Heijer (2020) explained that from 1994 on the student population in Delft grew from 11800 to 25100 students in 2020 (113%) Despite, in the same timeframe the used m2 of the university only grew with 2,5% This is possible because of the many possibilities technology provides A more flexible way of working is possible and people seek to find a ‘better’ working spot elsewhere. However, this trend also has its drawbacks For example, the many distractions at home, the exploding housing market and the need for ‘silent’ working places has its effects on the popularity of working on campus (den Heijer, 2020)

To make the link between the strategic alignment model of Henderson & Venkatraman (1987) and the TU De stakeh contex

1.3 History

1 3 1 History of CRE

In the past, the business strategy of standard organisations was mainly based on the concept of people working on one task only This standardized business process mentality changed when the idea of Frederick Winslow Taylor, which was an operationalised approach to Adam Smith's economic concept of division of labour, workers should concentrate on different tasks This was especially developed for factory work, but this later transferred to office business processes This previous standardization, concerning the buildings and real estate, was dominated by individuals working in cellular offices and the work was restricted to the office environment (Haynes, et al, 2017)

The increasing challenges of globalisation and competition mean that organisations have to be dynamic and agile if they wish to be competitive in today’s business environment (Haynes, et al , 2017) This is why many companies have a Corporate Real Estate Management This aspect of the company manages the properties of the company to manage the workers needs, well-being and most importantly the productivity of the workers

The changing nature of work is a dynamic business component that requires careful consideration when matched against property portfolio provision (Gibson, 2001). So the CREM investigates which kind of work environment fits best for their workers and they tune this with the properties they have and/or invest in In order to come up with the best fitting environment, the CREM investigates the three kinds of privacy and accessibility levels in workplaces These are Private, Privileged and Public Figure 07 can be used as a tool to create and select the appropriate workplace or resource strategies.

A relatively new development in the workplace is activity based working, this is defined as a large variety of people working in the same office and a more personalized working environment needs to be provided to make sure everybody can find a satisfying working place A lot of different working places are provided within an office, with the aim to let workers look for their best spot and the possibility to adapt their working place to the activity they are executing (Haynes et al , 2017)

Figure 07: Private, Privileged and Public workplaces, Haynes et al (2017)

1.3.2 History and drivers for campuses

Urge of knowledge conservation

Education has always been important for people The word university is derived from the Latin universitas magistrorum et scholarium, which roughly means “community of teachers and academics”. The universities have their origins in the Middle Ages and were the independent successors of the cathedral schools The University of Bologna is the oldest European university and was founded in 1088 Less than ten years later, the University of Oxford followed

Clustering

A campus, the clustering of university activities, was developed in the 17th century It’s foundation is in the United States, where at each building a different discipline was taught (Hughe & Vanden Busche, 2009)

In this report, the definition of a campus is used from the definition given by Alexandra den Heijer (2018): ‘the sum of locations with predominantly university or university-related functions’ This is based on the idea that all buildings of a university are built together on a designated piece of land which originates from Princeton University in New Jersey in 1770 But that is not necessarily always the case One university can for instance have multiple campuses In this report, we will focus on universities which only consist of one campus.

The number of university students in The Netherlands has risen from 11 250 in 1940 to 103 000 in 1970 and 250.000 now (Knegtmans, 2017). The Dutch government invested after the second world war almost four billion guilders (around 10 billion euros) in the construction of university buildings The question was, whether the university buildings were meant to cluster in small parts of the city or shift to the outsides of the city

There were universities such as the Uithof in Utrecht, which was intended to house the entire university, the Free University complex in Buitenveldert on the outskirts of Amsterdam, and plans for a campus on the newly reclaimed island of South Flevoland and Drienerlo, the site of the country’s third technical college between the eastern cities of Enschede and Hengelo, built in the early 1960s as a genuine campus university (Gramsbergen, E H , 2017)

Campus and business parks

The general difference between a campus and a business park is, a campus consists of educational university buildings and a business park where offices are clustered Business parks are often developed in suburban locations where land and building costs are cheaper (Market Business News, 2020) They also tend to be located near motorways or main roads for easy access The purpose of both is different Provide a place to educate and research and a place to work

1 3 3 History and driversTU Delft campus

TU Delft, originally the Delft technical college, was part of a wide expansion of the whole city (FMVG TU Delft-b, n.d.b). The university buildings were spread over the whole city. With the idea of restructuring the city, the university was seen as a sector of the city which meant that prestigious and administrative buildings, the already existing main library, the student associations, the dining hall and the staff and student housing must be shifted to the outside of the city, the first building which was built outside the city centre was Kanaalweg 4 (figure 08) With this college completely withdrew from the city centre (FMVG TU Delft, n d -b) This is how the Delft Technical College gradually became a campus university

Figure 08: Kanaalweg 4, 1900 (author unknown, retrieved from https://indebuurt nl/delft/genieten-van/toen-in/moet-je-zien-5-x-oude-fotos-van-de-tu-campus 88340/)

Campus and Real Estate (CRE), a branch of the TU Delft was later created when multiple buildings were finished, develops and erects new buildings as well as renovations, manages and maintains buildings and sites and provides energy on campus CRE is subdivided into the departments of Strategic Campus Management, Campus Development, Science Park Development, Projects, Management and Maintenance and the Support Unit (FMVG TU Delft, n d -c), CRE is a constant developing branch and has to adapt to the trends, which are described later

1.4Trends

Due to for example globalization and the fast developments in a wide variety of aspects, many trends emerge that could have an impact on the way people live, work and study In this paragraph multiple trends which could have influence on an organisation- campus-, and TU-level are examined and categorized Next, the trends are clustered into groups, described and placed into an impact-steerability matrix. The trend clusters with the highest impact and lowest steerability (bottom-right quadrant) are then placed into an impact-predictability matrix Finally, the trend clusters with the highest impact and lowest predictability are selected and used for the development of the scenarios.

1.4.1 CRETrends

In this research 15 trends are identified within CRE in general: (1) Development of technology, (2) Sustainability, (3) Work-life balance, (4) Employee orientation, (5) Linking facility management to strategies and identity, (6) Aging buildings, (7) High mobility and flexible working, (8) Population growth, (9) Artificial Intelligence (AI), (10) Shared resources, (11) Openness and Diversity, (12) Ageing world population, (13) Financial stability, (14) Social awareness and responsibilities and (15) Back to campus

All of these trends have different influences on the level of organisations, campuses and the TU Delft campus Based on influences on the different levels, trend clusters were formed The clusters are described below and are connected to the scenario making

1 4 2Trend clusters

1. Digitalization

Technology has taken an important role in the way people work It allows more mobility, virtual collaboration and flexibility of workplaces A physical workplace may be less necessary by the influence of technology intervention to organisations (Haynes et al , 2017) Co-working spaces and cafes became more popular working places as an advancement of technology allows us to work virtually.The workplace with less investment and more flexibility is favoured (Haynes et al., 2017).

According to the advancement of technology, AI is slowly harnessing and replacing some tasks in the organisation (Anne Soumya, 2020). Several repetitive activities are already replaced by AI, as it provides a more precise and efficient performance Moreover, AI could also take a controlling role For example by tracking the employee’s progress and mobility and evaluating employee’s working qualities

2 Sustainability

The built environment sector consumes almost half of the energy and materials in the world, while producing 30% of greenhouse gas globally (Kyro, R. 2020). Many countries are raising the awareness of sustainability and circularity of the built environment sector, both pre-occupation and occupation phase The green building and energy use certificate are established to persuade the organisation to use green energy. The sustainability of the built environment is continually concerned in the future (Haynes, et al , 2017)

Sustainability is a popular topic and trend in the common real estate industry This topic is also very much alive at TU Delft. Apart from sustainable innovations such as the Nuna solar car, TU Delft focuses on sustainability on campus with the help of the Green TU initiative Furthermore, the TU Delft aims at a CO2 -neutral and circulair campus in 2030 (TU Delft, 2018b) The first steps for achieving this goal are set. The newest campus building Pulse is the first energy neutral building on campus (FMVG, n d b)

3. Employee and user oriented

According to globalization, people become more free and have mobility to work, the boundaries between work and life boundaries will become less clear. This brings some mental consequences. Wellness and emotion are one of the main factors which lead to productivity increase Working environment, the division between work and life, employee wellness and feeling support employees' working activities. Employee orientation could help organisations to attract the best talent employees (Haynes et al , 2017)

Due to globalization international and culture mixed in the organisation becomes a norm The difference in work styles, personality and culture need to be accommodated in workplaces

Due to the development of medical science and the increased need for an experienced workforce, many older people are in good health and remain productive members of the labour force nowadays (UN 2020) Multi generational workforce in the organisation will become a norm, each generation's work styles need to be accommodated in workplaces (Haynes et al , 2017)

Nowadays, a global population is increasing at 1-2% annually This may result in higher demand for real estate and higher price for housing and office might be higher accordingly When prime location built environments would no longer be available, aging buildings could be one good choice for occupiers

4.Assets and facility

Many companies have a demand for replacement and maintenance of old buildings to achieve lower investment with existing good building locations This is suitable for the big city with high density and high demand for land (Haynes et al , 2017)

There is a clear relationship between core organization's strategies and CRE provision which include physical facility, workplace culture, and branding It also relates to the working environment and employee satisfaction and productivity. As an overview, facility management is always changing according to the working factors (Haynes, B , Nunnington, N , & Eccles,T 2017)

Organisation resources are shared in order to maximise the capital and capability of the organisation, everything could be shared among the organisation including human resources (Haynes, B , Nunnington, N , & Eccles, T 2017) Construction project portfolio would be a simple example of resource sharing (Winch, G M 2010)

5 Financial stability

Even though there are many aspects to drive the organisation in different directions, the financial aspect is still important to operate the organisation Financial stability is concerned for most companies in order to keep the organisation in a secure position.

1 4 3 Campus &TU Delft campus trends

6. Back to campus

The student strongly desires to have activities on campus, as the students could access high quality facilities, knowledge resources and applicable space for studying This unexpected phenomenon was presented by Alexandra den Heijer (2019) during her inauguration speech and strongly echoed by Diekman (2019) during our interview with him in November 2019

7. Student growth

TheTU Delft is an ever growing university in terms of student numbers As pointed out before, from 1994 on the student population in Delft grew from 11800 to 25100 students in 2020 (113%) (den Heijer, 2020) and these numbers will be only expanding in the coming years

8. Innovation

Due to globalization and digitalization, more innovation has been invented to serve some certain purpose Innovation is needed for searching intelligent solutions to tackle major social ills, seek more proactive approaches to predict the uncertain future, and pursue strategies to remove barriers to the smart future (Lee, S, M 2018) Many problems such as the CRE underperformance aspect could be mitigated or solved by developing and inventing new innovations A good example of successfully deploying an innovation into the CRE field is deploying a “Heat grid” in order to improve energy efficiency as well as lower CO2 emission.

9. Flexibility

The Pulse building is also the first building to focus on multifunctional purposes For example, the large seminar rooms can also be used as self-study rooms during the exam periods (FMVG TU Delft, n d -c) TheTU is currently developing the new Echo building, which also has a flexible

10. Campus Use

Besides the fact that there are many companies located on the TU Campus, there are also a large number of catering companies For example in the ‘Greenzones’ outside on campus, but also inside the faculties. For example, in the new Pulse building there is a catering facility on the ground floor that can seat 200 people This ties with the vision of the catering industry that TU Delft has (FMVG TU Delft, n d -c)

Other facilities the campus accommodates for students are cafes, bars, the big sports centre X, a spar supermarket and large student housing complexes These functions provide the possibility for the campus to be an interdependent kind of neighbourhood because of its self-sufficient entity

4 Scenarios

The current trends in the CREM industry have been discussed Trends are likely to occur, but these do not provide any certainty for the future How we can deal with the challenge of uncertainties in trends is to use scenario planning. A scenario is not a forecast or a vision, but a description of a possible future (Lindgren & Banhold, 2009)

The next step is to categorize the mentioned trends in 1 3 3 by the numbers given into steerability-impact matrix (figure 09) and predictability-impact matrix (figure 10) The figures can be found below First the organisations in general will be discussed, then the educational institutes and at last theTU Delft

First, the trends will be examined for their impact and steerability in the impact-steerability matrix Hereafter, they will be the trends situated in the bottom right quadrant are then placed in the Predictability Impact Matrix based on their predictability and impact qualities.

Figure 09: Impact-Steerability Matrix (own image)

Figure 10: Impact-predictability matrix (own image)

The trends in the bottom right box of the Impact predictability matrix (figure 10) are used for the scenarios for the future demand in CRE The trends 10 and 6 are merged while these are closely related and are a bit overlapping each other These are used as one of the axes of the scenario matrix (figure 11) it represents the growth of students and with these the diversity of students also grows The vertical axis represents the use of the campus.

Figure 11: Scenarios of the TU Delft (own image)

Below, the four scenarios which came out of the scenario matrix are elaborated

Scenario 1: Crowded campus

An increasing population on campus may influence TU Delft to expand the campus space in order to best accommodate a higher number of students’ activities and overcome overcrowded campus issues. In addition, TU Delft's reputation may attract more international scholars and academics which lead to an increase in demand for campus facilities

Scenario 2: Cosy campus

The number of students in TU Delft significantly drops as well as the diversity of people on the campus, but people would still want to use the campus facilities In this case, the occupancy rate of the campus will decline which could result in lower efficiency of space usage As a consequence, the

campus may consider utilizing its spaces and resources by scaling down the campus size and focus more on flexible use of facilities (merging faculty building or share resources)

Scenario 3: Virtual campus Technology allows people to work with more flexibility (virtual work) which leads to a decline in physical campus use. However, with the development of digital forms of education, university access and enrolment for international students became easier This would increase the international scholar’s population and thus, the campus would potentially generate greater income from earning more tuition fees Besides, Virtual campuses might require less physical space development This budget could be allocated to develop other campus functions, such as software development, as a physical space might no longer be a main function of theTU Delft organization

Scenario

4: Desolate campus

TU Delft witnesses an unexpected decline in student numbers and those who do remain tend to make less and less use of the campus, prefer to work where else, or virtual working Many students opt to visit the campus only when there is an important issue

In order to retain the business (as a campus), more flexible CRE strategies might be considered to exploit the unutilized space for gaining income For example, selling and leasing back could be one interesting option as it could provide a high level of flexibility to utilize the space and possess the workplace

1.5 Interview report part 1

The corporate real estate manager we interviewed is Jos Kikkert from the organisation called Amstelring Jos did his bachelors in human geography and planning and his Masters in Real Estate at the University of Groningen His interest was mostly in urbanism and spatial planning After finishing his education, Jos did traineeships in various organizations He was project manager at Volker Wessels and after he completed his internship at VolkerWessels he went to work for “Veiligheidsregio Haaglanden” where he was responsible for the management of fire stations Just before he started to work at an insurance company where he was portfolio manager Jos started at Amstelring in January of 2020.

Jos’function forAmstelring

Jos is the Strategic Real Estate manager He is responsible for all the big new construction projects Recently, he became responsible also for the whole real estate of the Amstelring organization and the regular maintenance processes Since the Covid-19 pandemic he has been responsible for the facility management as well

GeneralAmstelring

Amstelring is a healthcare organization based in Amsterdam and the surrounding area Amstelring focuses on providing care for elderly Especially elderly with dementia and somatic care needs The organisation of Amstelring has never had a real estate manager until recently. Jos stepped in the organization with the task to house all the real estate Amstelring has under one roof Amstelring has always worked on the basis of disruptions and there was no systematic, integral look at the real estate as a whole with a multi-year planning did not happen As a result, they were actually always lagging behind on the maintenance

Amstelring has 100 little lease contracts for the district care facilities and 22 care institutions, from which they own 6 of them and lease back the others. These leaseback contracts are all very different and range from 10-45 years, where the maintenance is for the tenant In this way rental costs are lower, but if you do not manage this properly, you postpone maintenance These properties contain 1800 “beds'' in total.Additionally, they have 2 big office buildings.

Covid-19

In the field of real estate, everything has come to a standstill due to the Covid-19 pandemic At the Amstelring organization, they saw a lot of vacancy caused by the death of residents Beyond that, their organization's funding went down This was a very scary situation Besides, every party they had deals with quit the collaboration because of the uncertainties where Covid will lead to Even housing associations were concerned, which is strange because housing will always remain a need of people

Strategy

They are therefore working on setting up a new real estate strategy based on the idea of what the care vision of the organization is, whether it is still the same and will be central in the coming years. Since Jos started at Amstelring they have made major developments in this area Real estate for Amstelring should become more maintenance orientated More asset and property management The organization has actually worked a lot with external parties in recent years and now wants to return to its own stable group of people employed to arrange things more centrally and to regain their own face They are aiming for a transformation on the operational tactical and strategic level of the real estate of the organization

Trends

Jos is very determined: the demand for housing remains What is interesting is the development around the size of a home, because families are emerging More people who have to rent longer

because they have to save up equity to buy a house, because of the student loans they will have The housing market is very interesting In the future more people will buy second homes in the Netherlands and / or live in more suburban areas because they have started to enjoy nature more due to corona People have taken a different view on the concept of distance People will work from home more and will therefore live further away from their work Housing will become more communal and more small-scale. Also housing will not just be focused on urban areas, but more on the outer wings of the Netherlands

The Office space market is now showing that really good offices and office locations will continue to exist and more efforts will be put in high quality meeting places There will be more vacancies in less interesting areas Older buildings are being renovated, older buildings are reused for new uses Other buildings will be given a different purpose, such as hotels or housing

In the field of distribution centers, these will develop much more on the outskirts of cities because there are more and more requirements for green and emission-free transport. This is an interesting group to invest in However, the growth will be small, the integrating thereafter will be big

Shops will transform to housing, hotels, restaurants and bars More specialty stores, targeting a particular niche market, more locate products The large shopping centers only want to be found in the larger cities Housing and catering will replace the big shopping centres

Sustainability

Amstelring is not very far in terms of sustainability They meet and will better meet the requirements set by the government, but will never be at the forefront of the market. But for the residential and care functions that exist, it is almost impossible for some projects to comply with this Even stricter rules are difficult to live up to Buildings must be paid for, also with the way Amstelring is financed, in order to continue to provide the desired care. From the financial point of view it is very difficult to look at it within Amstelring and actually just not feasible to invest money in sustainability and to be able to continue to provide good care

Circularity inside the organization of Amstelring is a “far from my bed show” There simply is no money to even look into this theme These are not integrated in the quality visions

Amstelring just got real estate to be able to provide care.

2 Current performance

2.1 Introduction

In part 2 current performance the current performance of university campuses will be examined. The focus will lay on the campus of the TU Delft First, the way how the performance measurement is executed and the general idea performance measurement is explained, then the stakeholders of campuses and theTU Delft are described and their interest and power is illustrated.

2.2 Introduction to performance measurement

In this report, performance measurement is defined according to the definition of Vande Putte (2020), performance is measured in order to evaluate supply, by comparing characteristics with expectations The weighted performance is a result of the measured value divided by the norm value In this way we can measure how a particular aspect or whole building (asset) meets the desired requirements for the user

Performance needs to be measured and calculated Once this is done, these can be compared, internally and externally This can be done at a strategic level, concerning the whole organisation or at a smaller portion of the organisation, at a more operational level After this, the asset can be managed against clear performance standards, or benchmarks These benchmarks will be both internal and external. Internal means a comparison across the business and across different periods of time and external means in comparison with other organisations, mostly in the same sector as the organisation (Haynes et al , 2017)

Benchmarking usually deals with the following questions:

1 Who is better than us?

2 How are they better?

3. Why are they better?

4 (strategic benchmarking) How are we performing against our organization's strategic requirements?

There are many types of benchmarking strategies, e g : Strategic benchmarking;Competitive benchmarking; Process benchmarking; Functional or generic benchmarking; Internal and external benchmarking; International benchmarking andTrophy benchmarking

These strategies can benchmark some important aspects which companies would like to compare like: degree of inclusiveness, costs, efficiency, utilisation, quality and environment (overall building performance)

According to Haynes et al. (2017) there is a need for a combined framework in benchmarking in real estate Benchmarking can provide an understanding of the opportunities, risks and threats within a business and real estate

Based on these descriptions and this definition, the benchmarking and performance measurement strategies of universities and the TU Delft will be examined in the following paragraphs Thereafter the performance measurement of theTU Delft will be executed

2.3 Stakeholders identification

The performance measurement is related to each stakeholder's values and objectives The stakeholders will be investigated at different levels, starting with the educational sector followed by campuses in general and at last zoomed into the TU Delft campus For the investigation into the

performance of stakeholders and their power of interest, the scheme of Henderson & Venkatraman (1989) and the power/interest matrix will be used

We started by listing all stakeholders involved (Appendix 1) and categorizing them in one of the four quadrants used by Henderson & Venkatraman (figure 12) In total we came up with 23 relevant stakeholders. all 23 stakeholders are placed in our own version of the scheme of Henderson & Venkatraman The division in the four quadrants, as well as the division in external and internal stakeholder is visualized Next, we searched for the most important values and/or goals for all of the stakeholders After identifying these values and goals, we translated these to objectives In the last step we set up key performance indicators (KPI’s) to be able to measure the objectives

Figure 12: Stakeholder identification (own image)

2 3 1 Key

player stakeholders

The next step is to place all stakeholders in a power/interest matrix to identify which stakeholders are the ‘key players’ In figure 13 below we visualized this exercise It can be seen that 12 stakeholder fit in the ‘key player’ (high level of power and interest) category. The executive board, supervisory board and municipality stand out in power, whereas the faculty dean and students stand out in interest We used colors to clarify the difference in each quadrant and open and closed circles to clarify internal and external stakeholders

2.3.2 Current real estate demand of relevant stakeholder

In the table 1, the different objectives per stakeholder are set out Some of the main stakeholders are clustered together, while these stakeholders have overlapping objectives: Executive, supervisory board, ministry of education, faculty dean and the student council -> boards and councils The objectives are based on the 6 main objectives of theTU Delft for the campus.

Figure 13: Power/Interest Matrix stakeholders (own image)

Stakeholder

related

User satisfaction

Energy demand (kWh/ m2) CO2 emissions BREEAM

Enhancing the image ofTU Delft

Image of theTU Delft

Number of students and staff Flexibility of space*

Student housing units Accessibility walking*

User satisfaction

Energy demand (kWh/ m2) CO2 emissions BREEAM

Energy production by renewable energy(kWh)

Space per person (ppl/ /m2)

All the stakeholder demands of table 01 could be divided in several demand areas These areas help to get a better grip and direction on all the demands The derived demand areas that came up while analysis the stakeholder demands are:

1 TU Delft identity: (branding, status)

2. Sustainability: (energy usage, emissions, (carbon) footprint)

3 Satisfaction and quality (customers satisfaction, liveability and services)

4 Space utilisation (occupancy rates, resource allocation and use flexibility)

2.4 Current CRE portfolio of the TU Delft -Accommodation supply

The current portfolio of the TU Delft campus consists of 60 buildings. In the course of 2021, this number will expand to 61 by the completion of the construction of the Pulse building The campus has 8 faculties and the other buildings are buildings that support the faculties like research facilities offices and for example study places such as the library and Pulse.

The faculties are:

-Aerospace Engineering (AE)

-Applied Sciences (AS)

-Architecture and the Built Environment (ABE)

- Civil Engineering and Geosciences (CEG)

- Electrical Engineering, Mathematics and Computer Science (EEMCS)

- Industrial Design Engineering (IDE)

- Mechanical, Maritime and Materials EngineeringTechnology (3mE)

- Policy and Management (TPM)

(TU Delft, 2018a)

In figure 14 and 15 the Campus of the TU Delft illustrated In figure 14, the properties of the specific buildings, like the Gross Floor Area and construction year are shown In figure 15 the space utilization of the buildings are indicated These findings are mostly based on the excel document on Brightspace (https://brightspace tudelft nl/d2l/le/content/278632/viewContent/2034380/View) In table 03, these findings are defined for the whole campus

Figure 14: Map of the campus (own image)

Figure 15: faculties space utilization (own image)

2.5 Supply vs DemandTU Delft Campus - Performance accomodation

2.6

Matches and mismatch analysis

Daily, about 27 000 people stay on the campus They vary from students, teachers, and scientists to visitors and employees of the university and the businesses on campus And with a surface stretching more than 1 610 000 square meters, the campus is bigger than the inner city of Delft and one of the biggest university campuses in the world Besides the big size, the TU Delft is one of the world’s top universities, it is ranked as 57th place for global university ranking (QS World University Rankings, 2019)

To keep this big campus functioning properly, facilities and buildings that support all activities in this challenging and inspirational environment need to be improved constantly

As already mentioned before, the matches and mismatches contribute to forming a suitable strategy for the TU Delft Campus. Current matches confirm that the TU Delft is able to meet the demand. These need to be maintained in the future The current mismatches show that the TU Delft is unable to meet the demand These become future goals

2 6 1 Matches

According to the table above, there are only two KPIs’ for the current TU Delft campus that demand match supply is a number of world class research facilities on the campus and The image of TU Delft (identity). The supply-side and demand side equally meet (performance meets expectation)

TU Delft is currently a top university in Europe, there are 83 world-class research facilities on the campus in 2019, this number is already high compared to other universities (TU Delft, 2019) According to TU Delft annual report in 2019 and QS World University Rankings in 2019, TU Delft has a high reputation for producing high-quality research and innovation, with the emphasis on responsibly combining science, technology, and design, as well as a beautiful, huge and green campus which accounts for 161 hectares. These mentioned aspects explicitly represent TU Delft's identity. Although these match KPIs show what does already well perform on the campus, they need to be accounted for in our strategy development in order to keep good performance continuing into the future

2

6 2 Mismatches (supply exceeds demand)

The energy demand and Space per person seem to be the biggest mismatches by over performance Current campus energy demand is only 50 kWh / m2, while the supply side is 100 kWh / m2, there is 50 kWh / m2 excess Currently education space capacity also mismatches (exceed) with the demand There is an average of 19 58 m2/ person on the TU Delft campus, while 10-15 m2/ person is enough for educational premises

Both of these aspects are overperformance, the current supplies enormously exceed the demand which could lead to a lower valuation Overperforming (waste) is an inefficient performance that could lead to undesirable side-effects (Vande Putte, 2020)

2

6 3 Mismatches (demand exceeds supply)

Some KPI, the demand side exceeds the supply (underperformance), KPI need to be addressed in future strategy in order to improve campus performance

According to the current demand and supply table above, there are three levels of underperformance which are classified by the number of red crosses in the (mis)match column

This biggest underperformance (three red crosses) is environmental sustainability issues, which consist of Sustainability certificates (BREEAM), amount of CO2 emission, and proportion of using renewable energy on the campus To acquire excellence or a high level of BREEAM, other environmental sustainability aspects need to perform better Currently, both the amount of CO2

emission and the proportion of using renewable energy on the campus are lower than expected The expectation of campus CO2 emission is 0 tCO2, but now it is 17 thousand tCO2 Besides, the demand for energy production by renewable energy is >50% in the next 10 years, but there is only 1-2% nowadays

The two red crosses aspects are mainly on the resource utilization, namely space utilization, occupancy rate, and flexibility of space in the campus The other mismatches (one red cross) are the financial aspect which is maintenance and operation cost and real estate value of the campus

To improve TU Delft campus mismatches KPI is concerned as a core value of TU Delft accommodation strategy, upgrading and downgrading (re-alignment) of mismatches could encourage the campus to fully support the university business by aligning the CRE strategy with the TU Delft business strategy

2.7 Interview report part 2

At this moment in time, Jos does not measure any performance with any performance measurement yet, because he just started to rearrange the real estate management of the organization

A multi-year plan was simply made and it was carried out once in a while Things were much organized locally and not centrally. Things were arranged at a decentralized level by the caretaker of the particular building

At this moment, Jos is busy putting the organization in order with asset and property management and will hire in the future also these managers

They will elaborate much more on the lease agreements and the demarcation that takes place in such a lease. They are figuring out whether they are actually doing the right things that are stated in the rental agreements They just found out that they do a lot more than we are legally obliged to do, simply because it has been going this way for 10 years and nobody took a good look at it

They are going to try to create a good long-term plan and get the real estate back in order with NEN 67. To get to a certain quality level. With the eye on whether the appropriate locations are still in line with future requirements They are not yet at the level of performance measurement with KPIs The question now is very much what they want strategically with the real estate However, they cannot just hand over real estate, given that it concerns beds of people who live there and need care and there are long agreements with care offices It must become clear what you can do with a building and what you want it to meet before you can start using KPIs

They also want to do a lot in operational terms. At the moment they have no maintenance contracts anywhere They operate on the basis of failures How, according to the multi-year planning, you can manage more on the condition levels with regular suppliers They want to regain control To focus more on fire safety and sustainability.

3 Future

3.1 Introduction

The third part of this report is the final step towards the future strategy of the TU Delft campus. The scenarios developed in part 1 are used to develop three alternative strategies From those, one final strategy will be selected and further elaborated This elaboration contains proposed interventions, the implementation plan, the timeline for execution and a cost analysis.

3.2 Future demands

3 2 1 Scenario and future demand analysis

In table 3, the bandwidth is drawn up from the four scenarios developed in part 1 The current demand of theTU Delft with matching KPIs are included for reference.

3.3 Strategy development

3 3 1 Future strategies

In the process of coming to one final strategy for the TU Delft campus, is making 3 alternative strategies The strategies that are developed are: the ‘Hubbed’ campus, ‘Puffer Fish’ campus and ‘Barbapapa’ campus. The nature of these strategies are described and these respond to the scenarios we identified earlier in the process After the three alternative strategies are worked out, we assess them against the 5 main goals of the TU Delft We select the strongest ideas from every alternative, and merge these into one final strategy This final strategy is going to be elaborated further in terms of implementation, planning and cash flows.

3.3.2 Hubbed campus

This first strategic approach responds to three of the scenarios: the cosy campus, the virtual campus and the desolate campus The amount of students in these scenario’s declines and the digitalization rises There will be fewer people at the university and people will make less use of the campus So fewer study places and therefore less buildings will be needed to meet the campus demands of the users

The hubbed campus focuses on implementing educational and functional hubbs by creating clusters distributed throughout campus that form these hubbs A concept plan can be found in figure 16 The hubs would incorporate a more moderate approach to centralization A hub does not exist in one building, but intends to encourage further collaboration between buildings or faculty in one combined area.

The hubs will be formed based on the nature of the studies The hubs will provide students with the possibility to share education spaces to increase the variety and occupancy, use the same facilities, provide new study places, co-work in ABW workplaces, exchange knowledge and learn from each other These hubs are going to be developed over time to be flexible and adaptable to accommodate future functions, programs and activities This strategy can be seen as one of the strategies developed by O’Mara (1999): the incremental strategy This is illustrated in the idea sketch in figure 16

Figure 16: sketch visualisation of the hubbed campus

3 3 Modular campus

The strategy of the modular campus mainly responds to the first scenario, the crowded campus scenario, where there will be an increase of students on campus, and the use of the campus will grow This strategy mainly focuses on the possibilities to expand and extend the gross area of the campus to cope with the higher demand for campus space due to a higher population on campus and more partner organisations in the future

There will be a need for flexibility in the building stock in the combination with the need for expansion This brings us to the modular strategy, inspired by the idea of LEGO blocks The expansion of buildings can be seen as modular units (LEGO blocks) which can be added to increase space These units do not have a particular function, they can be furnished in a lot of different ways. The units are fully adjustable to the kind of work you will be performing This supports activity based working and collaboration between students and faculties

The current building stock will be kept, but modular units will be placed where ever needed and can also be shifted, to where expansion is needed at that moment In this way, there can almost be unlimited expansion, but the campus can still control and maintain its formation and structure This strategy will enhance the utilisation rate of the campus, the spaces which were earlier not used as much can now be optimally used There will be higher efficiency of space using and occupancy rate

At the same time, extended space could be utilized as additional public collaborative space in the campus which allows knowledge-based organisations (TU Delft partner) to be on the TU Delft campus when they are doing a collaboration project together with TU Delft The latest technology and workplace trends could be present in those spaces as well.This idea is illustrated in figure 17.

Campus openness will be one important feature in this strategy, having more space could allow more people to visit the campus by opening the campus publicly as a knowledge center in the Netherlands TU Delft campus would have a more lively atmosphere as there will be more people and diversity on the campus

Figure 17: Modular campus development

4 Focused campus

The third campus strategy responds mainly to the cosy campus but can also be a response to the crowded campus The main aim of this strategy is to centralize the main functions of the campus to encourage collaboration between faculties and provide a central spot where everything can revolve around

This strategy focuses on the connection between all the facets of the campus All these facets will evolve around a focused point This is where everything will come together, the assembly of people and functions as a gathering place This strategy is based on centralization of functions The main concept of this strategy is to develop a central heart of the campus, where all employees, researchers and students can come together and collaborate and exchange knowledge. This ‘heart of the campus’ will be supported by the main axes, or arteries, which will connect everything and lead to the main building This building will become the new landmark and identity of the TU Delft Which will contribute to the idea of a value strategy of O’Mara (1999).This alternative is illustrated in figure 18.

Figure 18: Focussed campus option

3.4 Final strategy - ‘Hubbular’campus

Based on the assessment of table 05, the first strategy: ‘the hubbed campus’, appears to be the best strategy This means that this strategy is the best possible strategy to implement for the future of the TU Delft The ‘modular campus’ strategy also appears to be successful on many facets, especially in other demand area’s than the hubbed strategy, like space optimization As a result, a combination of strategy one and two will be chosen as the final strategy. In figure 19 below, a schematic overview of the implementation plan for our final strategy can be seen

Figure 19: Final strategy scheme (own figure)

3 4 1 Strategic interventions

As a result of our final strategy, certain interventions will be executed which are going to be addressed below The interventions are categorized by the focus area’s we determined In this way, every area will be addressed and represented.

3.4.1.1 Identity

1. Hubbs

In our future strategy, the stimulation of faculty hubs will be an extra strength in creating a very efficient campus The idea is that similar interests and facilities can be shared among studies that have the same orientation For example the design oriented tracks can be combined in one hub to create the possibility of sharing a design studio.

2. Modules as identity

More in dept about the units will be discussed under number 5 But, the modular units will also serve as the new iconic signature of the TU Delft When the EWI building is demolished, there will be a new hub formed This has a modular look, which will be visible from the highway, like EWI was In this way, everybody is aware that they pass the campus of theTU Delft The modular look will

3 4 1 2 Sustainability

3 Building renovation

In order to achieve the sustainability goals set by the TU Delft, almost every building needs adaptation. Not every building which does not meet the set goals can be demolished and be replaced with a new building Some of the buildings will be renovated extensively in order to align with the business strategic targets of theTU Delft

4 Push off buildings

There will be buildings which will be pushed off These buildings cost the university too much money in order to renovate or these wouldn't fit in the new TU strategy The Architecture building for example will be pushed off and the EWI building will be demolished.

5. Deployment of the latest environmental sustainability technology

To tackle environmental sustainability issues, one of the most effective ways is to deploy the-state-of-art technology The largest proportion of energy consumption in the EU in 2018 goes for space heating, accounting for 63 6% of total energy consumption (Eurostat, 2020) Space heating also produces the most CO2 emissions in the Dutch residential sector in 2020 (Mlecnik, 2020, TU Delft lecture) To cope with this aspect, energy renovation like a heat grid is a practical measure to improve both CO2 emission and energy efficiency from using space heating There is an existing heat grid plan in South Holland, The Heat Roundabout, a network of heat pipes connecting greenhouses, industrial buildings and residential consumers in South Holland. The project has 25 partners, comprising both private and public partners, namely the province of South Holland, the municipality of Delft, Rotterdam, and The Hague, while other private partners are E On, Eneco, Warmtebedrijf Rotterdam (Madsen, A. 2015). There is a high possibility to apply a heat network from the Heat Roundabout into TU Delft campus to solve the current underperformance of the environmental sustainability aspect

4 1 3 Space optimization

6 Modular units

Modular units will be implemented at the TU Delft campus As described before, modular units can be compared to lego blocks, which vary in shape and size It is important that there will be assigned places for these units, attached to a building or free from a building. As a result, space will have to be made available on campus As the modular units are placed, they will contribute to the space optimization, because they will have a highly adaptable interior so they can serve any need One day a unit can function as an extra meeting room and two days later this same unit can be transformed to a concentration study spot On the other hand, the units can also be removed easily, then the emptied space can serve another function, like a leisure square The big advantage of adding external units to an existing building is that the current infrastructure and logistics dont have to change

7 Transforming workplaces to flexible workplaces

When the campus will become a hubbed campus, the hubbed faculties interior will be rearranged in order to be able to be flexible. The space utilisation will be higher, while the standard offices will be transformed and can be used whenever somebody is in need of them

3 4 1 4 Satisfaction and quality

8 Maintenance plan

The quality of the campus will be enlarged by making a good multiple year maintenance plan This ensures that the buildings remain at the desired level of maintenance and that there is no need to keep up with the repairs There can be anticipated costs for maintenance and these can be in this way reduced

9. Services

To enlarge the liveability and the satisfaction of the users of the campus, services will be added to the campus This will contribute to the University campus, based on the ideas of Den Heijer (2019)

Implementation plan

For our final strategy, three main developments will run parallel to each other in every development phase:

1 Site planning development (Hubs creating), which mainly focus on how the campus facilities could be arranged and operate in order to improve current campus performance such as space utilization and environmental sustainability aspect Creating hubs by merging campus faculties and leasing out unused facilities

Figure 20: Final strategy implementation plan timeframe (own image)

2 Modular system development, due to the higher deviation of the campus population and higher demand on flexibility use of space, modular units could provide multifunction additional space to the campus. By doing this, there can be almost unlimited expansion, but the campus can still control and maintain its formation and structure This strategy will enhance the utilisation rate of the campus, the spaces which were earlier not used as much can now be optimally used.There will be higher efficiency of space using and occupancy rate.

3 Hub connection, we use the Mekelpark as a campus boulevard to connect all hubs as well as a place for collaboration, such as exhibiting and presenting each student or researcher innovations or holding special events

The development will take place from the North of theTU campus to the South

Phase 1, illustrated in figure 21 and 22 :

Site planning development:

The existing EWI building which is the current landmark of TU Delft has a high possibility to be demolished soon due to the low efficiency of space utilization (Cornor, 2016) Our proposal is to replace the EWI building with the new identity (landmark) of TU Delft, which will represent the advancement of TU Delft technology and innovation This new landmark will be a new TU Delft campus center, multi-function space, ABW, and modular space will be presented in this area Moreover, new environmental sustainability infrastructure to enhance energy and environmental sustainability performance such as heat grid will be also constructed here before extending to the other area ofTU Delft

In addition, feasibility study of merging faculties to create hubs is very important tasks to do as early as possible to avoid project uncertainty and finding the best solution to optimize the performance by merging campus faculties We plan to group the faculties according to the nature of studying, to merge faculties that have similar study nature together to form hubs

Modular system development: -none for this phase-

Hubs connection:

By planning to form several hubs in the campus, there has to be a main boulevard to connect all of the hubs, Mekelpark will be modified to serve that function

Figure 21: Phase 1, campus plan

Figure 22 :Phase 1, possibility of merging faculties (own image)

Phase 2:

Site planning development:

In phase 2, Faculties of architecture and industrial design will be merged as a “Design Hub” This will situate on existing industrial design faculties area, faculty of architecture will be leased out as the amount of occupancy rate for BK is higher than IO, as well as the maintenance cost and service cost per square meter

Modular system development:

As mentioned above, modular units (figure 23 and 24) are a solution to cope with higher deviations of campus population and higher demand for flexible space The modular unit could provide additional and flexible function space with high ability of adaptation for the campus. Once the modular structure and connection system are designed, it can limitlessly expand with the controllable pattern or formation The modular unit could intervene in variety space, for example indoor, outdoor or in ABW The modular units could be applied throughout the campus to enhance space utilization and flexibility

Hubs connection:

The first step to re-design the Mekelpark is to create pedestrian connections between “ Design Hub” and boulevard. Creating a design collaboration area and design exhibition area around the Design hub and boulevard area in front of a Design hub

Figure 23 & 24: Phase 2, precedences of modular units

Phase 3:

Site planning development:

Phase 3, to create an “Engineering and technology hub”, AE and TNW will be merged to CEG and 3mE Besides, a “Study hub” will be created by merging TU Delft library, Future Echo and Aula to the Aula area. At the same time unused faculties which are Science centers on the north of the campus, TPM, Future Echo andAE will be leased out

Modular system development: Continue developing to fit with engineering and study hub activities Such as creating ABW by applying modular units to be a concentration room or private meeting room in the library, or temporary and public outdoor engineering workshop

Hubs connection: The main campus boulevard (Mekelpark) in front of the Engineer hub will be re-developed as an Engineering collaboration and showcase space area Where outdoor activities and student innovation could be presented there

Phase 4:

Site planning development:

TU Delft sport complex and Green village will be blended together as a “Leisure hub” where people could gather together for recreation activities

Hubs connection and Modular system development: Area around the Leisure hub will be planned for social and recreation activities such as restaurant, market and outdoor beer garden Special events such as mini concerts and student parties could be held in this area as well Modular units could be an important element in this area as it could facilitate multifunction activities as mentioned above.

Phase 5+:

Site planning development: Combining TNW and TPM to new Applied science faculty, as a “Science and Management hub” on the southern part of currentTU Delft campus

Hubs connection and Modular system development

As a campus continues growing to the south, open-end planning could be considered for future campus expansion The main boulevard will be developed to connect the campus hubs together from the north to the south where the campus properties end To prepare for the future growth of the campus to the south, modular structure and open-end boulevard will be set up for modular future expansion

The overall strategy implementation planning is illustrated in figure 25

Figure 25 :Strategy implications on TU Delft campus (own image)

2 1 Financial analysis

A big part of our strategy is to lease out certain (parts of)buildings that (temporarily) don't have added value to the real estate portfolio of the TU Delft or which are no longer needed as a result of the created Hubs. But to stay in charge of the asset with taking into account the possibility of future growth, we don't sell them, but lease them out with short-term lease contracts For all of our lease contracts we strive for a ‘Green Lease’ agreement Within these Green Lease contracts, occupiers have the possibility to improve the (sustainability) performance of the building like energy label, co2 emission or other performance indicators This is in both parties’ interests Green leases require cooperation and trust because data will need to be shared All parties have to believe in the good faith of the others (Haynes et al , 2017 p246)

At the same time buildings are leased out, modular units will be developed So on the one hand we lease out a building, and on the other hand we invest in modular units to house all the students and staff. These investments can be seen in our financial model below. Also the changes in maintenance and operation costs are clearly visible

3.4.2.2 Risk assessment

Significant risks are involved during the implementation of the new interventions that come along with the Hubbed campus To come up with a proper risk response, there will be a risk management process utilised that consists of a risk analysis and risk control (Winch, 2010) This process is illustrated in figure 26.

Figure 26.The risk management process (Winch, 2010)

Furthermore, to provide an overview of the key risks, for each demand area a risk assessment is provided (table 6). The risks which cannot be categorized under a demand area are incorporated in the impact probability matrix in figure 27 Aproactive role in counteracting these risks is needed

Identity 1

Sustainability

Modification and selling of Monumental buildings face protests

Architecture cannot be pushed off, the new modular looking building will not be able to be developed

The set requirements to enhance the new identity of the campus cannot be met and the sustainability goals cannot be met when keeping Architecture.

2 The minimum of the requirements to reduce CO2 emissions increase by the government

Space optimization 3

Students and staff are not willing to use the modular units

The taken sustainability adaptations and renovations cannot meet the targets

Staff and students stay in the faculties and will not move

The must be more sustainability requirements met by theTU Delft

The modular units will not solve the occupancy problem

Satisfaction and quality 4

Maintenance and digitalization undergoes an immense growth

There is a higher demand for information management systems and maintenance

TU Delft need to adapt the maintenance plan to the new standards and needs to increase the information management systems

Impact: High

Probability: Low Co-creating of the new interventions. Make sure that all the stakeholders are involved in the process and are willing to collaborate.

Probability: medium Anticipate and keep up with the developments. Take this up into the maintenance plan. Impact: medium

Probability: Low Invest in making working in the hubbs attractive include implement a testing period for people to work in these hubbs

Impact: very high

Probability: Low Make a maintenance plan which is future demand anticipated.

Impact: Low

Legal

5. delay of development process

6. building code issues

7. zoning law issues

Financial

8.changes in politics

9.financial risks

10.long time to sell

Technical and construction

11. delay in construction time

12. technical issues

13. construction costs

14.design errors

Figure 27: Probability-Impact matrix (own image)

Legal

Zoning law and building code issues are the main risks the strategy is facing These are usually impossible to influence and have many indirect effects on the project, such as development delay It will be examined what is included in the cooperation agreement with the municipality (SOK) When something isn’t included in the building what is needed to implement the strategy, a new SOK will be discussed and signed This concerns a competence agreement about the way the municipality will make use of its power under public law We will sign the agreement with the municipality on the basis of the agreement that they will strive to change the zoning and destination plan. Amendments to laws and codes is also possible under the Acceleration of the transition to circular economy clause (Rijksoverheid, 2019)

Financial

The real estate market is changing rapidly, which is something that is not under the developer’s control The market can have a significant impact on the considerations that determine the profits of a project Risks in this category include decrease in rental/sale price, what will influence the risks of selling Architecture, decrease in velocity of sales, high vacancy rate, lower investment value, etc A good knowledge of the real estate market and professional consultancy are of great importance when it comes to managing risks in this category (Halman, et al , 2006)

Where TU Delft is financially dependent on the Ministry of Education, this entails a number of risks If there would be a major change in this financing, this would have a major impact, but the predictability is quite low Agood anticipation and a budget regulation will control these risks

Technical and construction

Technical risks specific to this project after analysing the building stock could include poor state of the structure of buildings, poor maintenance and inflexible construction and layout of buildings. From design errors, construction tendering and delays to bankruptcy of an architect or contractor, there are a variety of risks associated with the construction phase

In the construction phase, the TU Delft will transfer most of the risk to the contractor. However, if construction is not properly managed, it can result in undesirable outcomes such as worker deaths or damage to the surrounding area, which ultimately lead to legal proceedings (Halman, de Jonge & Gehner, 2006) Normally the TU Delft work with prefered suppliers, so they already know what the contractor is capable of. When a new contractor is hired previous work will be thoroughly examined.

3.5 Interview report part 3

Jos has started formulating Amstelring's strategy, starting with a multi-year maintenance plan This includes the maintenance position and the maintenance strategy of the organization In addition, he started looking at the vision and mission of the organization itself What the organization wants to achieve itself In the case ofAmstelring, this is mainly providing care

This care providence is for all the 7 target groups Amstelring has From these 7 target groups, dementia (psychiatric) and somatic care are the biggest They are seeing a shift in this ratio and they are looking at how this shift will develop in the future. It is important to look at what is happening demographically, what is happening on the market (making a market analysis) and what is happening with the major financing issue thatAmstelring is very dependent on

Sustainability does not yet have a place in the strategy of how it stands now. They are looking at how they want to integrate that For now there are ideas around mobilityEspecially the children and relatives of the residents make demands and ask questions about the sustainability plans of the organization. A plan will be drawn up for this next year, not as in a sustainability policy but more in the context of a corporate social responsibility policy

Uncertainties

Actually, the biggest uncertainty for Amstelring is government funding. For this, the organization performs a portfolio analysis and they look at this together with another party

They already know that some target groups will decrease due to the ideas and innovation that are devised and implemented around home automation with regard to living at home longer and the medicines that are being developed for various diseases It will therefore be necessary to respond to the fact that this group will need fewer housing places in the healthcare sector in the future On the other hand, are there aims to let people living at homes as long as possible, which is now very much focused on, often still involves home care, but for some target groups, such as the dementia target group, living at home is not an option and for this group there is also no medicine on the market, so that the group will probably only grow.

There are also risks in the real estate projects that are currently running for Amstelring Here we look at the financial feasibility Whether it is feasible for the organization to carry out these projects parallel to each other

These risks are included in the portfolio analysis, together with how quickly you can, for example, implement changes and whether you have the manpower to continue to provide care If you have a new building, that does not necessarily mean that you have enough employees

Financing is very difficult in combination with building An example of this is that a few years ago there was a lot of demand for two-room apartments for elderly people who wanted to live together Now this financing has been adjusted and these elderly people are no longer given a place in the nursing home A lot was built for this, but this demand is no longer there, so these apartments will be transformed into homes for target groups for which there is financing and the demand is high

The strategy that can be applied to this is that rooms / houses in the new construction are designed in a modular pattern so that you can flexibly respond to the shifting demand Investments will have to be made to, for example, already lay piping for future demand Standardization is the best option

Strategic portfolio analysis

When making the strategic portfolio analysis, the organization often first looks at the level of the portfolio analysis of the real estate.You can best respond to this with your real estate. For each part of the strategy it is determined which (form of) real estate is suitable for and what characteristics does the real estate have and the location meets the demand of the intended target group.

At the moment this has not much to do with the clients, because there is a very high demand for places, but more for the location for the employees Accessibility and, for example, the possibility of parking play a major role in this

Sigra is an umbrella body that helps healthcare institutions provide strategies They expect together with the care offices what kind of developments will take place. But, the municipality also has part of the responsibility for care

It is healthy to review and change your strategy every 4-5 years How do you keep your real estate flexible and how can you let your target groups participate? Finding locations, on the other hand, is very difficult, which is why standardization is being looked at

Conclusion

This process report provides a future strategy for the TU Delft campus that deals with expected future demands of stakeholders The main problem that needed to be solved was a flexibility issue, in which the optimisation of space, sustainability, user satisfaction and quality are the most important areas of attention. These demand areas are conducted from the stakeholder analysis, along with the worldwide trends within real estate All these trends and changes can be assessed by the means of scenario planning, wherein possible future scenarios can be formed

By analyzing the scenario planning, the supply and demand analyses, it showed that there is a gap between the sustainability goals, a lack of flexibility and workspaces The increase in the number of students on campus and the development of technology, the rising need for innovations and cooperation with businesses had not yet been so determinative for the future campus These problems ask for flexible approaches towards the future There has to be a focus on the flexible use of education-, study- and office spaces

In response to these problems and the need for flexibility, the hubbular campus strategy is developed This strategy is merged form two of the alternative strategies, the hubbed and the modular campus The hubbed campus is a campus whose main aspect is the hubs of faculties and buildings that are formed on corresponding functions Such as forming a design hub of the architecture, TPM and industrial design faculty

The modular campus is characterized by the freeing up of spaces around and inside faculties and the implementation of modular units in these locations to increase the number of (study) places where it is needed at that moment The modular units can easily be moved and placed elsewhere when there is more demand for spaces at that specific location. Supply and demand can be aligned in a more direct and quick manner, aligning the business and resource-sides The interior of the modular units are fully adaptable to whatever function they have to fulfill at that moment

These two alternative strategies both have many positive elements that can respond to the demand For this reason they have been combined into a campus where the buildings and studies have been formed into hubbs with many flexible workplaces and these are supplemented by the modular units from the modular campus strategy.

To sum up, the hubbular campus strategy is not only designed to improve the campus performance by reflecting and improving the current supply of the TU Delft campus to meet the future expectation, but also provide a well-structured of flexible development through a modular system that could determine and maintain the campus development pattern in the future

Jos's interviews have given us a lot of basic information about how the real estate manager starts a strategy The most important thing he has given is to really look at the core nature of the company and always reflect on that by every decision which is about to be made

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