Tools of the Trade: How Technology will Enable Office Workers to Return

The very first COVID-19 vaccines have been administered in the United States, though experts estimate it will take months before vaccination becomes an option for the general public. Still, it is a sign that we are steadily moving toward post-pandemic life. When it comes to certain parts of commercial real estate, that may not look exactly like it did even a year ago. Offices emptied at the beginning of the pandemic as companies sent millions of employees home to help prevent the spread of the virus. As we’ve learned more about it and how to protect workers, more are returning to the office. But according to a Qualtrics study, two out of three Americans still feel uncomfortable about returning to their workplace. The CDC outlines its recommendations for bringing workers back, which involves developing a COVID-19 workplace health and safety plan by evaluating whether the building is ready for occupancy, pinpointing weaknesses in the workplace and developing hazard controls. That, in large part, charges property owners and managers with providing peace of mind for their tenants by focusing on outbreak prevention and worker safety in the months ahead. Technology will play an important role in that, enabling employees to feel safer when they return to the office. According to research from CB Insights, “To stay ahead of the curve, companies will need to consider key investments across wellness, remote collaboration tools, mobile cybersecurity tech, accessible HR tools and workforce training programs for professional development and upskilling.” Various new technology offerings have cropped up in the past few months to address the concerns of companies focused on bringing employees back into the office. One example of technology that could aid in the future of office management got its start back in 2017 but is perfectly poised for this moment. “Nimway was initially developed as an internal tool to help Sony’s own employees find their way around the huge campus in Lund, Sweden. With 13 different buildings, people were having a hard time locating meeting rooms, finding available workspaces and even colleagues,” said Lars-Gunnar Lundgren, the head of Nimway. “We soon realized we weren’t the only ones—lots of other companies had similar problems—so we decided to turn Nimway into a commercial solution.” Nimway technology was designed and is being continuously developed with end users in mind, said Lundgren, by supporting employees in their everyday lives and also by providing facility managers with useful occupancy data. An example: an employee can use Nimway to find and book meeting rooms, which will help companies manage capacity restrictions. Plus, the software’s wayfinding feature guides employees to the chosen meeting room. Nimway also developed new features to help minimize health risks for those who return to the building. Using the technology, employees can book a desk in the office up to 14 days in advance. And when they’ve finished working, Nimway’s desk sensors mark the space as “unavailable” until after it has been cleaned. “Obviously Nimway can’t guarantee people’s safety, but what it does is help companies implement the COVID safety policies they’ve decided to apply,” Lundgren said. For that reason, he added, Nimway isn’t encouraging companies to rush into reopening their offices. “Rather, we want to support them with useful tools when their process begins,” said Lundgren. “There are different restrictions in different countries, but one thing we’ve observed everywhere is that it takes time and careful planning to get this right. Our customers are aware of this and that’s why they’re working to get the technology they need in place ahead of time.” Even beyond the pandemic, Nimway allowed users to analyze space utilization and, as a result, improve office layouts. “This reduces the need for additional buildings which, in turn, reduces short-term raw material use as well as long-term energy consumption,” Lundgren said. “You could say that ‘green’ thinking is built into the Nimway solution.” Companies can also continue using the program as it was originally intended—as a vehicle to eliminate the stress of everyday tasks such as finding a meeting room or colleague. “Nimway allows employees to spend more time and energy on creative and productive tasks. This is fantastic for both staff and business owners since people can put their energy where it really counts,” said Lundgren. “It’s good for company culture … and for the bottom line.” No matter which tools a company chooses to boost employee safety, privacy and morale in the coming months, the office will continue to be a place where workers can connect and innovate—two aspects of work that have been sorely lacking during the pandemic.

Southwestern Health Resources Inks Long-Term Lease for Nearly 150,000 SF in DFW

Transwestern Real Estate Services principal, Duane Henley, provides leasing services for the property at 1601 and 1603 Lyndon B Johnson Fwy., on behalf of the building ownership, Browning Place LLC. Paul Whitman and Pat McDowell with JLL represented Southwestern Health Resources. “As one of the leading healthcare groups in the Unites States, Southwestern Health Resources can add a collaborative space to its existing real estate portfolio for its employees to communicate and interact,” said Henley. “The property’s location in the Famers Branch area provides easy access to great amenities that tenants can enjoy.” Located in the epicenter of the Dallas-Fort Worth metroplex, Browning Place consists of four office buildings totaling 627,560 square feet. Within minutes of DFW International Airport, the buildings offer tenants an on-site bank, jogging trail, café, high-end fitness center and upscale Texas granite-clad lobbies. Combining the strengths of UT Southwestern Medical Center, Texas Health Resources and more than 5,000 faculty, affiliated and independent community physicians, Southwestern Health Resources offers the largest provider network in North Texas. Southwestern Health Resources selected the facility because of its central location for its approximately 900 employees and the space flexibility to meet the needs of the organization’s diverse workforce. Services range from care management, utilization and risk management, medical and data analytics, physician network operations, health plan services and support departments such as IT, human resources, marketing and finance. According to Transwestern’s Third Quarter Office Market Report, Dallas-Fort Worth is a leading metro in various rankings of office occupancy and return to workplaces, and after accelerating sharply in the first half of third quarter, new sublease listings slowed considerably in the latter half.

Houston-area Life Sciences Property Sells in the Sector’s Largest Deal of 2020

NAI Partners arranged the sale of five buildings totaling 260,950 square feet at 8800 Technology Forest Drive, located in The Woodlands, Texas. The main building on the former Lexicon Pharmaceuticals campus is a 128,400-square-foot, Class A office property with laboratory space. Additional properties on the site include a one-story flex property with lab and office space, as well as two special-use facilities. This is the single-largest commercial real estate sales transaction in the Life Sciences sector in the Greater Houston area in 2020. NAI Partners’ Dan Boyles and Jon Silberman represented the seller, Lexicon Pharmaceuticals. Lexicon will be relocating its corporate headquarters to a new location in The Woodlands. “We’ve been seeing life sciences real estate activity ramping up in and around the Greater Houston area in a big way,” said Boyles. “When we initially listed the property, we thought it might have more broad appeal as a redevelopment opportunity, but there was plenty of interest from potential laboratory, office and biological manufacturing users, further underscoring Houston’s growing appeal as a life sciences hub.” Lexicon Pharmaceuticals is a biopharmaceutical company that is applying a unique approach to gene science based on Nobel Prize-winning technology to discover and develop precise medicines for people with serious, chronic conditions. Using a patient driven approach, the company is working to discover and develop innovative medicines to safely and effectively treat disease and improve patient lives.

PPP and Other SBA Loan Provisions in Consolidated Appropriations Act of 2021

The Consolidated Appropriations Act of 2021 — which includes a $900 billion COVID-19 stimulus package that extends unemployment benefits and provides additional assistance for small businesses — was signed into law December 27, 2020. The Act also contains several key provisions regarding the Small Business Administration (SBA) and the paycheck protection program (PPP). Here is a summary:

Deductibility of PPP funded expenses: This provision overturns the IRS ruling that expenses funded with PPP loans were not deductible. Effective date is back to enactment of CARES Act.

EIDL advances: The $10,000 EIDL advance is excluded from income and no expenses are disallowed with respect to the income exclusion. In addition, EIDL advances no longer will reduce the amount of PPP loan forgiveness.

Income exclusion and expense deductions for payments made on Section 7(a) SBA loans: Section 1112 of the CARES Act provided that the SBA would pay up to six months of principal and interest on certain SBA loans. The new Act would provide, similar to PPP loans, that the principal paid by the SBA does not result in income forgiveness and no deductions are disallowed as a result of the income forgiveness.

Click to read more at www.wipfli.com.

How Parking Garage Conversions Can Help Address Overbuilding

Oversupply of parking for office buildings continues to be ineffective in terms of capital expenditure and material waste. I first wrote about the unrealistic parking ratios expected by the real estate brokerage community in 2018. Brokers continue to operate under the principle of protecting the tenants they represent, and CMBS lenders continue to routinely dictate parking requirements that far exceed the current or future needs of corporate office facilities. Four parking spaces per 1,000 rentable square feet of office space is an outdated standard that has resulted in hundreds of thousands of seldom or never used parking spaces. DonPowellOne of the region’s most successful developers, Granite Properties, did a formal study at its Granite Park that continues to serve as a relevant metric and clearly identifies the over-parking problem in suburban office buildings. Its study found that 2,600 parking spaces within its mixed-use complex have never been utilized. BOKA Powell estimates the order of magnitude of investment in those unused spaces equates to just under $40 million—28,000 cubic yards of concrete placed, 144,000 construction person-hours expended, and 819,000 square feet of inflexible, single-purpose concrete structure. Contrarians say that as buildings age, the class of tenants drops a notch or two, resulting in more back of house office uses (i.e., higher-density workspaces), and that is when the higher parking ratio will pay off. Click to read more at www.dmagazine.com.

Children’s Hospitals, Tech Giants and More: The Top 5 Northwest Austin Development Stories of the Past Year

By Iain Oldman | 8:40 AM Dec 28, 2020 CST

While sections of the local economy closed down due to the coronavirus pandemic, residential and commercial development plowed along in Northwest Austin. Looking ahead, 2021 looks to be a transformative year for Northwest Austin with massive development projects, including the Austin FC soccer stadium and the upcoming Apple 2 campus, ready to open their doors. Here are the five most read development stories from 2020.

1. Abbott executive order deems residential construction as an “essential service” across the state
Gov. Greg Abbott on March 31 issued an executive order that implements essential services protocols across the state of Texas. Read the full story here.
2. Revised Apple campus site plan in Northwest Austin includes new 6-story hotel
A revised site plan submitted earlier this year by Apple Inc. includes a new six-story hotel at the technology giant’s upcoming Northwest Austin campus. Read the full story here.
3. Northwest Austin family building first brewery in Anderson Mill
When Derek and Haley Law began initial designs on their upcoming brewery, they went in knowing they wanted the space to be as welcoming to the community as possible. Read the full story here.
4. Why did Dell Children’s Medical Center choose Northwest Austin for its newest pediatric hospital?
Click to read more at www.communityimpact.com.