designing and negotiating workplaces for the future …€¦ · • planning and relocations •...

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DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE WORKFORCE American Council of Consulting Engineers February 15, 2017 +

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Page 1: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE WORKFORCE

2/15/2017 1

American Council of Consulting Engineers

February 15, 2017

+

Page 2: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

PANEL.

David Paeper, AIA

HGA Architects and Engineers Inc.

FOCUS

• Workplace Strategies

• Predesign Advisor

• Strategic Facilities Planning

• Master Planning

EXPERIENCE

• 30+ years

• Local and national workplace

environments

• Corporate headquarters

• Higher education learning

environments

Steve Strom

Cresa Partners

FOCUS

• Real Estate Advisor

• Tenant Representation

• Planning and Relocations

• Lease Negotiations

EXPERIENCE

• 20+ years

• Local and national workplace

environments

• Corporate representation

Melissa Jancourt

HGA Architects and Engineers Inc.

FOCUS

• Workplace Strategies + Research

• Predesign Advisor

• Well-being

• Strategic Facilities Planning

EXPERIENCE

• 25 years

• Local and national workplace

environments

• Municipal Planning

• Corporate Headquarters

• Higher Education Environments

• CoreNet Board Member: Midwest

Page 3: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

PANEL DISCUSSION

• The News

• Profile of the engineering profession

• Generations, human capital and well-being

• Smart Buildings, Smart Devices, Data Sources

• Mobility and choice

• Future lens

• Real Estate Update and Implications

THE FUTURE ENGINEERING WORKFORCE AND WORKPLACE.

Page 4: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

The engineering workforce - today

Today • 50%+ are over 45

• 13% are women

• 1/3 of those holding engineering

degrees were born outside the

US

• 51% current engineers consist of

mechanical, industrial, civil and

electrical

• College enrolments are failing to keep

pace with retirements

Page 5: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

The engineering workforce - growth

Civil 8.4%

Electrical 1%

Industrial 1%

Mechanical 5.3%

11% Projected expansion

Page 6: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Tomorrow’s Workforce • Expect more diversity and competition

• Optimizing human capital and employee experience becomes critical

• New technologies, opportunities and skill sets

• Push for measurement and strategies to support well-being

• Increased demand for

• Specialized skill sets

• Creativity and innovation

• Soft skills

The engineering workforce - considerations

Page 7: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Courtesy of Goldman Sachs

• Largest generation -- 31% are minorities

• Technology Natives -- Information is universally available

• Mobile + socially networked --- collaborative / team-based

• Freedom and choice

• Optimistic, ultra-communicators, constant innovators

• Hard working but demanding

• Global generation; volunteerism

• Customization and personalization

100 80 60 40 20 age 0

Baby

Boomers Gen X

66 M

Gen Y /

Millennials

Gen Z /

iGen

70 M 75 M 76 M

siz

e

Silent

Generation

29 M

Greatest

Generation

4 M

• Increasingly influential • Smartphone Natives

• Diverse – 50% belonging to a minority race or ethnicity

• Label agnostic – identity not tied to fashion

• Concerned about money

• Massively connected – but wary of how they’re linked in

• Entrepreneurial – 70% self employed as teenagers

Source: Goldman Sachs

Generations in the Workplace

Page 8: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Generation Z

LIMITLESS ACCESS

GENERATION X PARENTS

LIVING WITH UNCERTAINTY

*Courtesy of Altitude

Page 9: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

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Age Mainstream 22-65 year olds

Boomers, Gen X, Millennials

Gender

Sexual Preference

Age 65+ year old

Aging Boomers

(expanding activity and

engagement levels)

Age 14-21 year old

Incoming Gen Z

and Young Millennials

(an expanding population)

Physical Abilities

Mental Abilities

Race and Ethnicity

Religious Preference

Movement,

Activity-Based Design,

Universal Access/ADA Mobility, Vision, Hearing

(mostly accomplished)

“Sitting is the new Smoking”

Integration Autism Spectrum Disorder,

ADHD, Developmental Disabilities

(expanding workplace presence)

The Depression Epidemic

Inclusion Equal Benefits,

Unisex / Family

Restrooms

Leadership Roles

(expanding)

Tolerance Islam, Unaffiliated.

Inclusion Racial Diversity

Leadership Roles

Young Entrepreneurs

(expanding)

The Future of

Workplace and

Community

From Awareness

to Inclusion to

The Greater Good

HISTORIC

NORMS TODAY TRENDS

THE FUTURE

Page 10: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

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WWW

Smart Grid RTLS (Real Time

Locating System)

Energy Buy-Back On-Demand

HVAC/ Life Safety

Lighting

Control

BAS

POS

Personnel Well-being

Fire/Security

CMMS

(Computerized

Maintenance)

Energy

Dashboard

Predictive

Maintenance

Real Time

Visual Data Web Monitoring

& Control

Electrical

Metering

IT Apps

Weather/News

Page 11: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Work Site Current Research

People Space Analytics

Understand utilization, behaviors and

social networks to test and inform

strategies

Page 12: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments
Page 13: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments
Page 14: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

What remains consistent?

We are not all the same

We do different things

Happy, healthy employees = productive, creative employees

What makes us happy?

Page 15: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Give them what they need

Choice and control

We all want to feel

Safe: Cared for

Comfortable: Basic needs met

Healthy: Our physical vitality supported

Socially Connected: Personally connected

Emotionally Connected: Part of something good

Fulfilled: I have influence

Page 16: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Your Commute Distributed Work

Work Environment

Culture Collaboration

Wellness m

acro

mobili

ty

mic

ro m

obili

ty

well-

bein

g

health &

safe

ty

wo

rkin

g t

ogeth

er

com

ing t

ogeth

er

Page 17: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Safe

Page 18: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Comfortable

Page 19: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Healthy

Page 20: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Socially Connected

Page 21: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Emotionally Connected

Page 22: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Fullfilled

Page 23: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Market Update

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Page 24: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Office Trends

What’s Hot | I-394 and the North Loop

Bifurcation of Markets

Talent | Attraction and Recruitment

Amenities | Walk Scores Win

Rising Construction Costs

Record Property Tax Increases

2/15/2017

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Source: 2016 by Xceligent, Inc.

Page 25: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Office Vacancy

2/15/2017

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0%

5%

10%

15%

20%

25%

Minneapolis CBD I-394 Southwest St. Paul CBD Southeast

Metro Vacancy by Submarket

Overall Class A Class B

Page 26: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Office Leasing

2/15/2017

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Source: 2016 by Xceligent, Inc.

Page 27: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Migration to Downtown Minneapolis

Be The Match (240,000 SF)

Select Comfort (211,000 SF)

ECMC (125,000 SF)

Code42 (65,000 SF)

Arctic Cat Inc. (55,000 SF)

2/15/2017

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1,223,881 SF = 26 Companies

Page 28: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Wells Fargo (-970,000 SF)

TCF Bank (-220,000 SF)

Xcel Energy (-146,000 SF)

Capella Education (-64,131 SF)

Mithun (-60,000 SF)

2/15/2017

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-1,642,131 SF = 12 Companies

Corporate Consolidations/Rightsizing

Page 29: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

Five Trends to Watch in 2017

Urbanization to Continue

Significant Corporate RE Investment

Adaptive Reuse Projects

Rising Occupancy Costs

Infrastructure Investment

2/15/2017

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Page 30: DESIGNING AND NEGOTIATING WORKPLACES FOR THE FUTURE …€¦ · • Planning and Relocations • Lease Negotiations EXPERIENCE • 20+ years • Local and national workplace environments

QUESTIONS