Cassidy Turley Real Estate Solutions_Belden 9-3
Comfor table. Efficient. Productive.
Facilities Management Solutions for Your Portfolio
September 10, 2013
Cassidy Turley 7700 Forsyth Blvd., 9th Floor St. Louis, MO 63105 314-574-7062
Road Map for Success
Attendees
J Glasgow Managing Director, Principal Facility Management Services 314.574.7062 J.Glasgow@cassidyturley.com
Tim Michel Senior Managing Director, Principal Property Management Services 317.639.0415 Tim.Michel@cassidyturley.com
Andrew Martin Senior Vice President, Principal Brokerage Services 317.639.0523 Andrew.Martin@cassidyturley.com
Belden + Cassidy Turley
Together we send the right signals about your real estate
Agenda
Operational & Financial Reporting
Belden’s Real Estate Portfolio
Where Do We Find Savings?
Initial Team Outline
Portfolio Lease Administration Solutions
Creating Operational Value
Case Studies
Managing Your Closed Facilities
Driving Best In Class Solutions
Managing the Workflow
Technology to Measure Success
2 | Cassidy Turley
Belden’s Real Estate Portfolio
865,096 warehouse SF
Portfolio Snapshot
34,161 closed SF
6%
42%
738,399
Leased
Vacant
office SF
94%
58%
Occupied
Owned
1,818,709 manufacturing SF
N o r t h A m e r i c a
W e s t e r n A s i a
S o u t h A m e r i c a
E u r o p e
A s i a
cassidyturley.com | 3
Initial Team Outline
Key Design Features 1. Integrated Team 2. Work Order Deployment System 3. National Vendor Management and Procurement Program
Executive Leadership
Key Benefits for Belden 1. Improved Quality of Service and Volume 2. Enhanced Responsiveness 3. Reduced Expenses
Cheri Shepherd, Managing Director J Glasgow, Managing Director Andrew Martin, Senior Vice President
Account Manager
Portfolio Lease Administration Team
Facility Management Service Center
Establishing a SINGLE POINT OF CONTACT for Belden is key to success
23,000 Locations
74,000 Work Orders Annually
$3.5 Billion Spend Managed
316,000 Invoices Processed (2012)
23,000 Client Locations
$1 Billion Invoices Paid
400 Million Total Square Feet Managed
$.10 - $.20 Per Square Foot Average Savings
4 | Cassidy Turley
Portfolio Lease Administration Solutions
Success Story: MeadWestvaco
Reduced costs Increased accountability Improved cost controls
Real Estate Type: Office, Lab, Industrial Portfolio Description: 27M SF on six continents
Cassidy Turley Services: Strategic Planning Transaction Management Facilities Management Lease Administration Site Selection
Accurate, real-time data to support informed decision making Elimination of missed opportunities
Results: • A comprehensive Strategic Plan developed by Cassidy Turley resulted in annual savings opportunities of $8.48M • First-year total leasehold savings of $600,000 • $750,000 in CAPEX cost avoidance through a short-term sale leaseback • $4.25M in cash proceeds from the sale of a discontinued asset • Approximately $200,000 saved through innovative vendor management and maintenance strategies and utility programs
Improved consistency across portfolio
Improved alignment of portfolio with business objectives
Portfolio Lease Administration & Audit Services
Lease Administration
Payables Management
Accounting & Financial Reporting
Lease Audit & Reconciliation
Asset Tracking
CONTRACT MANAGEMENT
• Invoice Review • CAM Reconciliation Audits • Portfolio Optimization MONEY MANAGEMENT
CONTRACT COMPLIANCE
Cassidy Turley manages more than 24,700 leases , producing average annualized savings of $6.34 million
• Abstracting • Document Review • Imaging • Payment Processing • Critical Dates • Security Deposit Tracking/ Collections Reporting
• Auditing • Estoppel and SNDA Review • W-9 Compliance • Process Development • Certificate of Insurance Processing
•• Performance Metrics •• Dashboard Executive Summary of Portfolio
•• Enhanced Reporting Capabilities •• Savings/Cost Avoidance
•• Centralized Payment Processing Platform •• Streamlined Processes
•• SSAE No. 16 Compliant •• Secure, Customizable Technology; 24/7 Access
cassidyturley.com | 5
Creating Operational Value
GENERIC GRAPHIC WITHOUT HANES and TRAVELGUARD
Security/Building Access
Waste & Recycling
Saved more than 10% managing services pertaining to security gates for corporate and franchised locations
Saved 13% on monthly waste handling charges
Roof & Structure
Projects & Construction
Reduced cost of roof replacement by up to 20%
Reduced architectural and engineering related expenses by more than 40% per project
Environmental Health & Safety Saved 20% through leveraging preferred vendor of Cassidy Turley to provide life safety services
Furniture & Equipment Saved $15,000 per store on average in capital expenditures associated with equipment
Grounds Management
Negotiated the landlord to pay $18,000 for parking lot repairs that were tenant responsibilities within the lease
Utilities Management
Reduced volume of hot/cold calls by 70% with upgraded automatic temperature controls
Energy Efficiency
Facility Administration
Repairs & Maintenance
Created 17% in annual savings as a result of an energy-efficient lighting upgrade
Saved 25% in lighting product costs through Cassidy Turley’s leverage with a preferred vendor
10% annual savings supporting more than 6,000 retail locations
6 | Cassidy Turley
Managing Your Closed Facilities
Inspect facilities regularly, and
Facility Services- Idle Facility Checklist G neral InspectionChecklist
Building: InspectionCompletedBy: Date:
ensure the building is maintained and secure
Thepurposeof thispacket is tomanage the IdleFacility reviewprocess forFacility Servicesassignments. Thesedocumentsaremeant to foster furtherdiscussionon any "red flag" issues that the team isawareof,andwarrantsadeeper investigation by theexperiencedCassidyTurleyAssessmentTeamoranyof theirassociated vendor-partners. The followingwillassist inguiding theFacilityServicesBest PracticesTeam in exceptionalservicedelivery toourclients. InteriorComponents Good Fair
Comments
Poor
N/A
Restrooms CommonArea,Painting,WallCovering Carpet,Floor covering EntryDoors,Mats,Lighting Lobby,CommonAreaLighting CeilingTiles
Closed Property Inspection
BuildingAddress City,State&Zip SquareFeet
GeneralFacility Issues Appearance Wayfinding /Signage GeneralClutter Temperature AirQuality Noise Lighting
Comments
Good Fair
Poor
N/A
Manage repairs, maintenance and utility services, leveraging our purchasing power and vendor relationships to reduce costs
Leased/OwnedProperty? TypeofLease
EstimatedSurvey CompletionDate
FoodService
Comments
Good Fair
Poor
N/A
Appearance GeneralClutter HealthDepartmentRating Flooring (vinyl, ceramic, carpet,multiple) AirQuality Counters Lighting WasteReceptacles
LastUpdated
3/6/2012
ExteriorComponents BuildingSignage PostalAddress ExteriorAppearance Windows Landscaping Exterior Lighting Walks/PublicGrounds Expansion Joints,Caulking PavingandParkingArea Flags
Comments
Good Fair
Poor
N/A
Our goal is to preserve asset value , mitigate risk and reduce the overall costs of maintaining your closed facilities
Mitigate Risk Reduce Costs Preserve Asset Value
FOR SALE OR LEASE
Provide disposition services, including relationship building, marketing, pricing, and incentive review
Coordinate all aspects of closing facilities, from removing equipment and other items to clean up of the whole facility
UnoccupiedFacility ProceduresManual
CriticalFacility Information
Idle Facility Management Procedures Manual
BuildingOwner BuildingAddress ApproximateSquareFeet CaretakersName
Shut Down Procedures
CaretakersHomePhone CaretakersCellPhone CaretakersPager CaretakersEmailAddress SecurityCompany SecurityCompany’sPhone HowtoContactOfficeronDuty CellPhone Pager
DECOMMISSIONING SERVICES
EmergencyPhoneNumbers
PoliceEmergency: 911 or PoliceNon-EmergencyPhoneNumber FireDepartmentEmergency: 911 or FireDepartmentNon-EmergencyPhoneNumber
Prepared by: Cassidy Turley 7700 ForsythBoulevard9th Floor St. Louis,MO63105 314.574.7062
1
©CassidyTurley2012
cassidyturley.com | 7
Technology to Measure Success
Supporting Operational Improvement
Monitoring Service Delivery Satisfaction
Enabling Self-Service & Transparency
FEATURES
BENEFITS
Fits existing processes and best practices Transparency in service delivery Identify and remedy issues before they become problems Iteratively improve service delivery over time Greater productivity, better data for decision-making
Configurable workflows and escalations Self-service employee portal Service delivery satisfaction assessment Performance reporting
Mobile enabled
8 | Cassidy Turley
Operational & Financial Reporting
Sample Reports
September Services Summary
WHAT IS INVOLVED IN REPORTING?
RealEstatePortfolio
Value toFee
FinancialPerformance
Value toFee TTM-$2.55:1
Expenses
H/Lvs.
PortfolioBreakdown SquareFootage
0 20 40 60 80
Actual YTD $1,636,253 ($42,884) ($109,801) ($687,545) 2012OPC 2011Actual
September
9,424,422
10,000,000
7,704,712
IdleFacilities
5,000,000
Thousands
1,148,987
Facility
ExpectedExit SeptemberExpenses
0
Retail
Non-Retail
Owned
IdleW-S
3/31/2013 $62,657
Jul-12
Jan-12
Jun-12
Oct-11
Apr-12
Feb-12
Sep-12
Dec-11
Aug-12
Nov-11
Mar-12
May-12
Value
Fee
Retail
Non-Retail
Owned
*Calculatedas cost savingsdividedbymanagement fee
Cost Savings Initiatives
Occupancy&SpacePlanning
Maintenance
Projects
MaintenanceHours %byLocation
TotalOccupancy
Provided setupand support forUnitedWayproduct sale
HQ
90% 77% 89% 65%
Vendor
Location
Description
Savings/Avoidance Amount
23%
HQ,CC,R&D
AssistedwithcoordinationofEmployeeAppreciationCelebration
Satellite 11%
Value to Fee
RealEstateTaxAppeals
$21,789 $21,789 $8,110
Measuring Performance
NY
County
Multiple RETaxappeal
Avoidance
B,M& LA
ProvideA/VsupportandassistedwithBoardMeeting inKansas
Maintenance
R&D Eliminated1mtnceTech@Weeks
PlannedReduction $3,500
$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
R&D 18%
77%
Mounted transformer,wiredpumps fordryerexhaustvs.vendor Replacedbrokencableongolf cart for securityvs.vendor Cost savings from installingprojector vs.vendor Replaced sinkdrain in4Abreakroom vs.plumber Rewired receptacle forWellness Centervs.electrician Setupanduseof inhouseA/V equipment forHungerGamesevent Randatacable forsecurity camerasvs. securityvendor
Maintenance
HQ
Avoidance
$155
Assistedwith setupand support forUnitedWayevent
HQ 62%
Occupied Unoccupied
Maintenance
HQ
Avoidance
$30
CallCenter&R&Doffice renovationprojectunderway
CallCenter 5%
OfficePopulation2,079 Therewere9movesduringthemonth
Maintenance
CC
Avoidance
$1,450
BTHVAC installednewpumps /pans for thedryerexhaustduct
Maintenance
HQ
Avoidance
$175
YTDchurn rateof6.96%
Maintenance completed821workorders inSeptember 67%ofworkorders completedwere forHQ Theworkorderclosingratio forSeptember is100%
89%ofSeptembermoveswere internal toHQ
Completed transitionofNYoffices tonewHVACcompany
Maintenance
HQ
Avoidance
$180
Tracking Goals
Avoidance
$1,920
Maintenance
HQ
Security&Safety
Imaging
Maintenance
R&D
Avoidance
$700
157badges issued thismonth,monthly2012average is129 505badgesmodified thismonth,monthly2012average is886 0 IXO Incidents reported,monthly2012average is54 Fleet Thereare currently363vehicles,1 forkliftand1pieceof
Scanned37,925pages forCustomerService,HumanResources,
Totalpostageusage forHQ&R&Dwas$9,395
InvoiceDisputes
$470
andAccountsPayableduringthemonth
Achieved$494ofsavingsbysendingall firstclassmailpresort Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12
Disposal
CC
Disputedcharges
Savings
$70
Caughtbillingerror forcopierpaper order
PaperCo
R&D
Savings
$400
FitnessCenter
Amenities
Value
MgtFee
VendorManagement
$21,338
TheFitnessCenterhad1,285participants for themonth;YTD
InSeptember13%ofemployees atebreakfastand17%ate
Savings forpurchasingand replacing exit signbatteries insteadof landlord Disputed6%price increaseoncontract work
LLD
NY
Savings
$2,600
heavymachinery in theFleet
Avg is1,679
lunchonsiteat the café
Key Performance Indicators Service Level Agreements
SummitFitnessoffered19group fitness classes
OnsiteClothingCarehad110 customers and$2,740 in sales
Fire Safety
HQ
Avoidance
$847
Elevator Janitorial
HQ
Savingsachievedby switchingvendors Savings
$415
•September–$2.83:1 •YTD–$2.69:1
R&D Savingsachievedbyaligning service Savings
$1,698
Value to Fee
Savingsachievedby reducingcarpet cleaning scope Savingsachievedbyeliminating Idle side sweeping Cancelledbi-monthly rug service in favorofutilizingownedmats Monthly savings from switchingcarpet cleaningvendors
Janitorial
HQ
PlannedReduction $539
Janitorial
R&D
PlannedReduction $472
Janitorial
R&D
Savings
$183
Janitorial
HQ
Savings
$2,268
Monthly savings from switching landscapingvendors Monthly savings from switching janitorial vendors
Landscaping
R&D
Savings
$1,990
•SeptemberCostSavings: $52,201 •VendorManagement:$21,338
September Initiatives
Janitorial
R&D
Savings
$2,495
Janitorial
Multiple Cancelled Interiorplants
PlannedReduction $602 PlannedReduction $3,118
Landscaping
HQ
Reduced landscaping scope
ClosedWeeksaccountandaddedML toOS toavoid$5service feeweekly
Uniform
R&D
Avoidance
$20
FoodService FoodService
Multiple Reducedcoffee service scope
PlannedReduction $2,362
18% Year toDate
Multiple Eliminatednapkins
Savings Savings Savings Savings Savings
$394
22%
Security Postage Postage Furniture
HQ
Negotiatedcontract rate
$6
•September Savings -$14,342 •September Avoidance -$27,266 •September PlannedReductions -$10,593 60%
NY -11 Removedunusedpostagemachine NY-7 Utilized smallerpostagemachine Bentonville Negotiatedpricingwithvendor
$162
Benchmarking
$95 $15
Distribution
Cost savings from selectinga less expensive vendor forservice
Rental
HQ
Savings
$1,014
6
Fire Safety
NY
Disputed invoice charges
Savings Savings
$43
MailServices
$494
Financials
2012 September Facilities
000's
H / (L) vs.
H / (L) vs.
H / (L) vs.
YTD Actual
QTD Actual
OPC
2011
Actual
OPC
2011
OPC
2011
NY -34Showroom
90 $ $ 91 $ 57 $
(4) (5) (0)
$
(5) (0) (1) (1) (7)
264 $
$
(23)
$
(37)
803 $
$
(52) (22)
$
(71)
Maintenance
NY-MadisonShowroom Bentonville&Minneapolis
286 171
(0) (2) (0)
12
825 511
23
(1) (7)
(8)
(9)
L.A.Office
8 $
0
25
76
4
14
247 $
$
(9)
$
746 $
$
(25)
$
(33)
2,215 $
$
(78)
$
(42)
SellingFacilities
Work Order Comparison
Top10WorkOrderTypes ThisMonth's
Avg.CompletionTime (Minutes)
HQ DC
801 $
126
74
2,478
300
62
6,841
4
(125) (641)
WorkOrders ThisMonth YTD2012 2011
1,000 1,200 1,400 1,600
$
-
-
(14)
-
-
(90)
-
-
Electrical
33 97 78 71 99 38 42
46
40 24 22 35 24 59 42 44 37 80
36
R&D
167 $
3
1
517
13
12
1,470
(27)
(10)
Events
118
NA
Furniture
37 33 23 88 33 43 39 85
47 48 31 54 48 42
DTCSupport
14 $
14
14
45
45
45
45
45
45
InteriorRepairs&Maint.
0 200 400 600 800
2010 2011 2012
Lighting
MoveManagement
Worldwide Support
40 $
(160)
(156)
187
(440)
(415) (387)
1,441
(455) (433)
(376)
Office Services
1,023 $
$
(17)
$
(81)
3,227 $
$
(83)
$
9,797 $
$
(1,108) $
HBIHQFacilities
PM
113
StorageMoves
54 37
63 $ $
(18)
$
(23)
214 $
$
(47)
$
(42)
$
631
$
(160)
$
(148)
ExitedFacilities
Setup
86
NY -34Design
104 $ 200 $ 304 $
4
(2)
300 626
(6)
(13)
914
(4)
(6)
5 Location •67%ofworkorderswerecompletedatHQ •19%were completed inNY Type •21%ofworkordersweremoveor furniture related •114preventativemaintenanceworkorderswerecompleted thismonth;PM closing ratio100% •41%ofNYworkorderswere formovesor furniture Reported •65%ofworkorderswere reportedby facility services •The closing ratio forSeptemberwas100% Productivity •Maintenancecompleted821workordersduring September •Themaintenance teamcompletedanaverageof 41 workordersperday which isapproximately8per techeachday 4 22 1,845 (11) (15) 63 56 (3) $ 9 $ 2,759 $ $ $ (158) $ (453) $ 15,402 $ (687) $ (1,242) $
NY -MadisonDesign NYDesignFacilities
(3)
3 1
$
1
$
927 $
Work Orders by Location September -821
1,636 $
$
(43)
$
(110)
5,113 $
Sub-totalFacilitiesbeforeallocation
HQ1 38%
NY 19%
R&D 9%
CC 4%
HQ2 29%
12
cassidyturley.com | 9
Where Do We Find Savings?
On average, Cassidy Turley professionals save clients between $ .55 and $ 1.80 per square foot
$ 0
$ .25
$ .50
$ .75
$ 1.00
$ 1.25
$ 1.50
$ 1.75
$ 2.00
$ 2.25
$ 2.50
$ 2.75
$ 3.00
Savings may include...
JANITORIAL Review scope and implement innovative methods
ELECTRICITY UTILITY Perform electric rate analysis
LEASE RESPONSIBILITIES Review maintenance responsibility language; push back on landlords
CAPITAL EXPENSES Review capital expenses and multiple bid projects
SECURITY Review technology, scope of services and timing
HVAC Install programmable thermostats and establish temperature set points
$ .05- $ .15
$ .10- $ .20
$ .05- $ .10
$ .07- $ .10
$ .05- $ .10
$ .01- $ .10
RECORDS RETENTION Streamline process
PARKING LOTS Review repair and maintenance program
CONTRACT MANAGEMENT Review terms and adjust service level agreements
OPERATING EXPENSES Compare reconciliations and invoices to service agreements and leases
LANDSCAPING/SNOW REMOVAL Multiple bid services and review existing contracts
PREVENTIVE MAINTENANCE Establish a PM program to extend equipment lifecycle
$ .05- $ .15
$ .01- $ .04
$ .02- $ .07
$ .02- $ .08
$ .04- $ .10
$ .02- $ .10
PLUMBING Install low-flow water fixtures
EQUIPMENT WARRANTIES Track and review warranties
PROCUREMENT Leverage national relationships and standardize pricing
DELIVERY MODEL/REPORTING Facility issue tracking to aid strategic portfolio management
FIRE & LIFE SAFETY Utilize national vendor for service and ensure code compliance
LIGHTING Utilize lighting at appropriate times and install automatic lights
$ .01- $ .05
$ .02- $ .10
$ .02- $ .04
$ .02- $ .05
$ .05- $ .15
$ .01- $ .08
BUILDING AUTOMATION SYSTEM Utilize existing systems to full capabilities
STAFFING Review facilities staffing and staff appropriately
COMPETITIVE BIDDING Bid out goods and services to obtain best pricing
VENDING Consolidation of soft services
BUILDING OPERATIONS Re-commission and review parameters
PEST CONTROL Review service levels and leverage national suppliers
$ .15- $ .75
$ .01- $ .04
$ .02- $ .05
$ .05- $ .10
$ .01- $ .03
$ .02- $ .10
10 | Cassidy Turley
Case Studies
Within the first 3 months of providing facilities management services, Cassidy Turley produced savings in excess of $100,000 through right-sizing services, vendor management, and utility spend review.
Within 1 month of the facilities management partnership, Cassidy Turley saved more than $8,000 through right-sizing services, double bidding projects, and changing utility rate plans.
As a provider of strategic facilities management and project management services for the past 12 years , Cassidy Turley saved more than $2 million through streamlining operations and processes while improving service levels.
cassidyturley.com | 11
“
Driving Best In Class Solutions
An Energizing, Productive and Efficient Workspace Enables client associates to focus on core business objectives
“For more than 20 years, Cassidy Turley has been a vital partner for us at Edward Jones Investments. The quality of their people and their ability to con- sistently meet any real estate challenge has been instrumental to our growth in the United States and abroad.” – James D. Weddle, Managing Partner
Reducing and Controlling Costs Informed financial management that drives significant operational savings
A Culture Designed to Optimize Facility Performance Collaborative approach aligned to our clients goals
Managing your facility through innovative solutions that deliver measurable outcomes in the following areas:
“
Vendor & Contract Management
Facility & Operational Review
Facility Management Service Center
Technology Solutions
Sustainability Services
Project Management
• Centralized FM Service Center responds to service requests 24/7 • Variable resources cost effectively service smaller locations and dispersed portfolios • Leverage vendors across 450 million SF of managed property,
• Specialists to manage LEED certification assistance to basic sustainability programs • Purchasing agreements, energy analysis, controls and operational changes to reduce costs • Recycling, reduction, awareness and commuting study programs
• Identify workloads, procedures and increase value and utilization • Development of predictive and preventive maintenance programs • Improve overall facility efficiency, ensure consistent service levels and mitigate risk exposure
• Nationwide project management and design services, managing 4,000 projects each year • Understanding project goals and timelines while increasing quality and reducing costs • Saving an average of 10-25% of the project cost
• National sourcing team and regional subject matter experts • Vendor Management System tracks 4,000+ vendors, quality, contracts and insurance • Leverage 450 million square feet of managed property to reduce vendor costs by 15%-30% without compromising service
• Customized solution to meet each client’s needs • Dedicated IT Project Management team for implementation and client integration • Provide meaningful data, ease of use and cost effectiveness
and manage to service levels, contract terms and metrics
12 | Cassidy Turley
Made with FlippingBook