Hello PM community,
I am responsible for redevelopment existing 4 office buildings by covering them with a roof using ETFE film and steel structure (currently the zone is not covered and rarely used by users), on the ground floor under the roofing we intend to create 4 different zones all year round, such as a central reception area replacing the 4 existing reception desks in each building, the second zone will be a relaxation zone, the third zone will be a cowork zone, and the last zone is a kitchenette for preparing one's own meals, on the ground floor next to the kitchenette in the office building we intend to prepare a food court that will increase the choice of meals for employees of the office complex.
The problem I have now is I have to convince the board members to cover a few million euros, usually in the case of office project expansions you can estimate the new rental space and the profit from it by which the board's decision is easy to obtain, but in this project, the space will not be rented, it will be used for free by all the office complex users and the surrounding residents of the residential development, so I was wondering if maybe there are some studies on improving happiness / health / increasing office occupancy etc. that will help me show hard data that may not directly reflect into ROI, while it will improve quality for employees and surrounding residents, which may reflect into a better perception of the office complex.
Perhaps you know of such studies or have an idea of what I can use to convince management of this project. Saving Changes...
While there might not be a new revenue stream expected resulting from the proposed changes, is there a cost of NOT doing such renovations in terms of reduced efficiency or productivity? For example, if the current setup does no have kitchenettes or a food court, staff might be spending working time to go out and get their meals so potentially there could be more work done during normal working hours by making these changes.
Will such changes help the company attract or retrain top talent which may either not join or might not stick around if the current facilities are not appealing?
Is there anything in the company's strategic plan regarding increasing employee satisfaction which this project could align with?
Finally, is there an opportunity with these renovations to get some energy savings which might support a sustainability goal and/or reduce energy costs?
Hi Kiron, thank you for your reply,
At the moment we are struggling with limited occupancy in these buildings, as is the real estate market as a whole, so we decided to prepare a new area for people to create a stronger connection between them and not just for one company, but for everyone in the office complex. So it's difficult to say whether there are any costs of not doing this renovation, because there is no simple answer as to how this investment will affect occupancy rates (unless you know some data on this ;)).
Each tenant has their own kitchen so they can prepare their own food at work, but our aim is to create a common area for employees and local residents to spend time together hence the different zones so everyone can find a place for themselves.
Just to give you a better understanding, the project is about connecting 4 separate office buildings with one common covered zone, so it is difficult to say how this project can influence the attraction of the best talent.
I haven't received any strategic plan, do you have examples? Maybe I could use one if you don't mind.
The last sentence is a good point, we have estimated the cost of 'savings' but due to preparing this area for all season operation, we have had to put in AHUs with VRV units for heating and cooling, these systems increase the cost, not the savings, but due to the reduction in reception and guards (we intend to move the FAS, VAS, BMS etc control panels from each building to one of the buildings), these tasks will reduce the cost, in summary the cost will increase slightly.
So I still have no idea how to prepare data to show that these investments will increase occupancy or satisfaction rates, or otherwise convince management to invest the money. Saving Changes...
Have you tried Google Scholar? "office environments on employee performance" came up with a ton of papers as well as many related search terms. Saving Changes...
To convince your board to invest in redeveloping the office spaces, focus on these key points:
1-Employee Productivity: Improved workspace boosts productivity and well-being. Cite reputable studies to back this up.
2-Community Engagement: The new space can enhance brand image and community relations, even if it doesn't generate direct revenue.
3-Talent Attraction: Modern amenities make you competitive in attracting top talent.
4-Increased Occupancy: The added features could make your entire complex more attractive, indirectly boosting rental rates for other spaces.
5-Health Benefits: Improved communal spaces can result in healthier, happier employees, reducing absenteeism.
6-CSR Goals: The project aligns with Corporate Social Responsibility initiatives, especially if using sustainable materials.
7-Long-Term ROI: The value-added to the property could increase its long-term valuation.
Prepare a focused presentation using these points, backed by data where possible, to make your case to the board. Saving Changes...
