Methods for evaluating office occupiers’ needs and preferences

1. Methods for evaluating office occupiers’ needs and preferences Jessica Niemi, Anna-Liisa Lindholm & Galith Nadbornik • ERES Conference 2009 • Stockholm 27 June

2. Contents • KTI & Preferences project • Measuring occupiers’ needs and preferences • The interviews • Evaluation and the usability of the methods • Conclusions

3. KTI & Preferences • Office occupiers’ needs and preferences in a changing business environment • 2 year research project (2009-2011) • Joint effort between • TKK Real Estate Research Group (REG) • TKK Facility Services Research Group (FSRG) • KTI Property Information Ltd.

4. Measuring occupiers’ needs and preferences • How does the real estate sector get the knowledge about office occupiers’ needs and prefererences now and in the future? Office space market Occupier needs and preferences Methods for evaluating office occupiers’ needs and preferences

5. Objectives • to identify methods and tools that are used to evaluate occupier needs and preferences in Finnish companies • to analyze the methods usability and suitability for evaluating occupier needs and preferences • to provide a framework for further development of the methods

6. The interviews • Focus areas: • Trends in occupiers’ needs • Challenges in identifying the occupiers’ needs • Methods and tools for identifying and analyzing the occupiers’ preferences • Used methods and tools • Pros and cons of the methods • Challenges and needs for developing new methods • Performed during January to May 2009 • Interviews to selected 15 corporations in different fields of corporate property

7. Distribution of the interviewed parties

8. Evaluation and the usability of the methods • Criteria set based on literature and interviewees’ response • What are the elements of a good method? • Occupier organisational level • Physical, social, virtual and financial aspects of the building • Future • Valid and reliable • Easy appliance • Cost effective

9. The criteria and points • Focus of the method: office occupier organization or/and the individual user level -max. 1 point • Data collection perspective: observation, survey, secondary data analysis or qualitative research (only a descriptive criteria expressing that the method suits to some of the set perspectives) • Range of the method: the whole market or/and one single organization perspective -max. 2 points • Time frame of appliance of the method: in the beginning of the relationship or/and during the relationship - max. 2 points • Coverage of the different aspects: physical, social, virtual and financialelements of the occupiers’ needs and preferences -max. 4 points • Time perspective of the method: future or/and past orientation -max. 2 points • Validity of the methods -max. 2 points • Reliability of the method -max. 1 point • Easiness of use and cost efficiency, which express the applicability and usability of the methods -max. 2 points

10. The methods • Own experience based knowledge on the needs of different business sectors • Participatory design in the design phases • KTI Future office barometer • Discussion with the clients • Occasionally small surveys/questionnaire • Tehomax-Market survey (interview based method for finding out the space demand) • Willingness to pay –analyses • KTI Rental barometer • KTI Satisfaction survey & benchmarking

11. Ranking of the methods • KTI Future office barometer, 15 points • KTI Satisfaction survey & benchmarking, 12 points • Participatory design in the design phases, 11 points • KTI Rental barometer, 9 points • Discussion with the clients, 8 points • Occasionally small surveys/questionnaire, 8 points • Willingness to pay –analyses, 7 points • Tehomax-Market survey (interview based method for finding out the space demand), 6 points • Own experience based knowledge on the needs of different business sectors, 6 points

12. Conclusions • There is a lack of applicable methods and tools for understanding occupiers’ needs and preferences • Some methods are heavily reliant on a person’s market knowledge • How can others apply the knowledge further? • A method focuses on one special issue rather than understanding the total development of the field • There is a potential for further development and combining elements from different methods in order to get a new applicable method • There are similarities in needs and preferences between office occupiers’ • One way to get the data to a more sophisticated level is to form occupier groups with similar needs and preferences (segmentation) • Database wide • Follow-up of the development within the groups • Enables the real estate sector to evaluate and develop office supply to meet the needs and preferences of a group more accurately

13. Thank you! Questions?For more information • M.Sc Jessica Niemi • KTI Property Information Ltd. • Eerikinkatu 28, 00180 Helsinki, Finland • +358400910296 • jessica.niemi@kti.fi • D.Sc Anna-Liisa Lindholm • Real Estate Research Group • Helsinki University of Technology • P.O.Box 1200, 02015 TKK, Finland • +358503206779 • anna-liisa.lindholm@tkk.fi • BA Galith Nadbornik • Facility Service Research Group • Helsinki University of Technology • P.O.Box 3300, 02015 TKK, Finland • gchriqui@cc.hut.fi