GECINA - REFERENCE DOCUMENT 2017

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FROM CORPORATE RESPONSIBILITY TO SUSTAINABLE PERFORMANCE Priority 1: generate productivity and well-being for the occupants in adaptable buildings

PRIORITY 1: GENERATE PRODUCTIVITY AND WELL-BEING FOR 7.3 THE OCCUPANTS IN ADAPTABLE BUILDINGS

well-being of the occupants and their productivity. Since office-based costs for an office tenant are for the most part related to the salaries it pays its employees (1) , the contribution of the building that it occupies to their productivity is a critical factor in improving its operating income (unvarying production for a reduced cost at the workstation or higher production for the same cost). This additional use value for the tenant contributes to the Studies conducted with Goodwill Management in 2013 on four buildings in Gecina’s property portfolio demonstrated the economic gains for tenants linked to the enhanced productivity derived from the intrinsic qualities of these buildings, in the order of around 25% of the rent (see example below for one building). strengthening of the immaterial value of the asset.

7.3.1

PRODUCTIVITY AND WELL-BEING OF OCCUPANTS AND CLIENTS

Background

7.3.1.1

Various scientific studies have shown that the characteristics of a building influence the conditions of well-being of its occupants. However, in office buildings, their well-being has an impact on both work efficiency and hours worked by reducing absenteeism, turn-over and delays. Since productivity is defined as the quantity of goods or services divided by the cost of labor, a correlation can be established between the characteristics of a building that impact the

ECONOMIC ASSESSMENT OF A GECINA BUILDING COMPARED TO A RIVAL BUILDING

Gecina building compared to a rival

Type of additional cost or gains

Expenses linked to additional operating cost

-€399,946

Revenue generated by productivity gains linked to the intrinsic qualities of the building

+€1,657,538

Revenue generated by productivity gains linked to its central location (close to retail and transportation)

+€619,498 -€726,083

Expenses linked to the building’s additional rent

TOTAL (GAINS FOR THE TENANT)

+€1,151,000

the non-work time spent in the building by the ■ occupants, such as the accessibility of the stairs and Meeting rooms, availability of elevators, quality of organization of vertical and horizontal flows, technical flexibility of the building and services offered (restaurant, parking lots, concierge, showers, gym, etc.); Based on these results, Gecina has updated its measurement indicator for the contribution of its office buildings to the productivity of their occupants (detailed method on page 235 of the Gecina 2015 Reference Document). To be consistent with the VIBEO methodology, the results of this simplified indicator are expressed in the form of labels identifying for each building the difference in contribution to occupant productivity compared to a standard building (average to good qualities for all of the evaluated characteristics).

According to the methodology developed by the VIBEO (2) working group, the characteristics of the building that impact the well-being of its occupants can be grouped according to various criteria presented below in decreasing order of influence: the quality of access to the building , such as proximity ■ to an urban center, the amount and frequency of transportation available and the number of shops and services; physical well-being , such as thermal comfort, ■ ventilation, air quality, glare, lighting and personal space; motivation , such as the location of the building, its ■ maintenance and identity, the feeling of safety related to the neighborhood or the modularity of offices; cognitive well-being or serenity , such as the exterior ■ view, proximity of natural spaces, interior and exterior noise, spaces for relaxation;

According to a 2010 study by the US Department of Labor, workplace costs are 90% salary, 9% rent and 1% expenses (including energy costs). (1) Immaterial value of buildings and well-being of occupants (Valeur Immatérielle des bâtiments et Bien-Être des Occupants) – a Working Group made up (2) of the companies BNP Paribas Real Estate, Bolloré Logistics, Bouygues Construction, EDF, Engie, Foncière des Régions, Gecina, Goodwill management, Ivanhoé Cambridge, Saint Gobain and Sercib – to scientifically determine a theoretical methodology for evaluating the contribution of an office building to the productivity of its occupants (based on the Thésaurus Ecopolis © model of GoodWill Management) and verify it in a series of in situ tests.

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