Adapting Spaces and Services
to Empower Tenants

In the rise of the knowledge work economy, people keep companies growing, adapting, improving and innovating. The resulting work-life blend of Millennials and Gen Z comes with the expectation that employers offer amenities and services that provide convenience and enhance well-being. Workplaces now offer flexible spaces for formal meetings, peer collaboration, client interactions, and candidate interviews. Lobbies are becoming the “third place,” affording meeting areas, game rooms, food and beverage, and concierge services. Greater focus on wellness has increased demand for on-site fitness facilities,

bike parking, locker rooms, spa services, and healthy nutrition. Across our portfolio, Hines is engaging architects, designers, consultants and start-ups to create spaces, hospitality-style amenities, and services to help make work more productive, healthy and fun.

“We provide space and amenities which allow our tenants and residents to thrive and be highly productive.”

Charlie Kuntz
Innovation Officer

800 Fifth Avenue, Seattle Hines re-introduced 800 Fifth to Seattle with transformational renovations featuring best-in-class materials, luxury amenities, and additional public and collaborative space.

Hines commissions a third party, Kingsley Associates, to conduct surveys across the firm’s U.S. office portfolio to gauge tenant satisfaction. The 2017 survey, administered as a web survey by email invitation, had 1,913 respondents—a 91 percent response rate. When asked to rate overall satisfaction with Hines, 95 percent of tenants rated their satisfaction as “good” or “excellent”—a three percent increase from the 2015 survey. Ninety-seven percent of tenants rated their satisfaction with Hines property management as “good” or “excellent,” which exceeded the Kingsley Index by six percent. Furthermore, tenant satisfaction with Hines’ commitment to sustainability increased two percent since the 2015 survey to 84 percent.

Reason for Interest in Sustainable Initiatives

A multitude of factors contribute to building performance: local climate, regulatory context, building history and tenant requirements. Accordingly, Hines property managers and engineers are charged with the greatest responsibility at the property level. Property managers are responsible for the daily operation of the property including tenant relations, lease administration, on-site accounting, security, cleaning and other contract services. Engineers are responsible for management and maintenance of all building systems and infrastructure.

Properties are supported by the Hines Corporate Operations & Engineering Services department and the Operations Management Committee.

Corporate Operations & Engineering Services (COES)
COES supports Hines’ on-site management teams by providing standards guidelines and periodic assessments of property administration; risk administration; personnel management; contract services; mechanical physical facilities; preventive maintenance; energy management; equipment efficiency; water treatment; and personnel development.

Operations and engineering assessments are performed every two to five years based on a property-specific risk matrix. An assessment report is provided by the review team following the assessment, which includes an executive summary, a listing of all areas reviewed, any findings and suggested remedies. Each item reviewed either “Meets,” “Meets with Few Exceptions” or “Does Not Meet” the Hines standards for either operations or engineering. Specific action plans are developed for areas that do not meet expectations.

Operations Management Committee (OMC)
The OMC serves as an interface between property-level management and executive leadership, providing problem-solving and guidance on issues, standards and best practices that can benefit multiple properties or regions.

COES has developed and updates core standards that detail processes and the expectations of property management and engineering teams at all U.S. properties. These are also provided as a resource for international properties, where local technologies and resources require adaptation of the U.S. standards.

Utility Cost Reduction Programs
The Hines portfolio contains older buildings, recently acquired buildings and new buildings. This standard ensures that new technologies, programs and cost-effective, energy-saving retrofits are actively being evaluated, presented to management and ownership for approval, and implemented.

Chiller Performance Test
Chillers are estimated to account for up to 20 percent of total electrical consumption. This standard defines procedures for chiller performance testing at regular intervals with quality field instrumentation; setting of rating targets; and organized, accurate record keeping.

Refrigerant Management Program (RMP)
Implementation of the RMP helps ensure that the requirements of Section 608 of the Environmental Protection Agency’s 1990 Clean Air Act are met. In meeting these requirements, Hines complies with federal law, limits refrigerant losses, conscientiously manages refrigerant supplies, reduces costs, and minimizes risk to the environment, personnel and the company.

Indoor Air Quality (IAQ)
Buildings require proactive management to prevent health concerns. Hines has developed comprehensive guidelines, in conjunction with industry standards, for the prevention, investigation and correction of IAQ issues, including thermal comfort, ventilation and airborne irritants such as bioaerosols, vapors and toxins. Key to implementation is the appointment of an IAQ manager for each property.

Energy Control and Optimization System (ECOS) Standard
This standard guides effective use of the ECOS application during setup; monthly and annual updates, including documentation of significant year-over-year variances; energy improvement measures; and operational changes.

Chad Engle, Vice President of Corporate Engineering, accepts the ENERGY STAR 2017 Partner of the Year award on behalf of Hines, marking 10 years of Sustained Excellence.

Comparison of Hines ENERGY STAR-labeled Buildings to the National Median⁷

Turning Efficiency into Value at 303 East Wacker, Chicago The property management staff at Chicago’s 303 East Wacker received a sizeable rebate check from energy provider ComEd. The rebate was awarded following the property’s recent chiller replacement project, which included the installation of two chillers, variable speed drives and LED lighting upgrades. All told, the renovations contributed to a power savings of over 1.4 million kilowatt hours.

Hines recognizes that as a property owner and manager in over 100 cities worldwide, it can contribute to the carbon reduction goals of municipalities and tenants.

Directly, Hines focuses on the energy-efficient operation of its buildings. By rigorously tracking energy consumption and refrigerants, Hines can account for GHG emissions. At present, Hines does not find that the conversion of energy consumption into carbon equivalents adds meaning to help the company manage buildings more effectively. Most Hines properties do not currently utilize electricity from renewable sources, except where provided in the standard grid power mix from local utilities.

Indirectly, adherence to the LEED, ENERGY STAR and other international sustainability certificates inherently reduces the carbon impact of new developments and building lifecycles. Additionally, the HinesGO^® (GREEN OFFICE^®) for Tenants program provides practical GHG reduction-yielding tools for tenants.

Refrigerants

Unavoidable leakage of refrigerant GHG emissions from cooling systems is tracked and reported monthly by building engineers at all U.S. properties. By testing and maintaining systems in peak condition, engineers work to avoid these emissions to the greatest extent possible in existing buildings.

Paper-Lite Program

The Global Document Center (GDC) created the Paper-Lite Program to reduce storage of paper documents by transferring them to digital data. By using the program, Hines offices reduce the costs of on-site and off-site storage space, supplies and manpower; lower audit risks and facilitate compliance and discovery; enhance data access, retrieval and knowledge sharing across the enterprise; and eliminate redundancy and increase efficiency. The program is governed by the Hines Document and Record Retention Policy and the Global Retention Schedule.

Once all the documents have been scanned and uploaded, the originals are archived at Iron Mountain and the paper copies are secure shredded.

2017 Statistics

96,836	pounds of paper recycled
821	trees saved
1,327,186	gallons of water saved
109,425	kWh electricity reduction
242	cubic yards of landfill reduction

2006–2017 Secure Shredding — Environmental Benefits

322,412	pounds of paper recycled
2,714	trees saved
4,418,818	gallons of water saved
364,326	kWh electricity reduction
806	cubic yards of landfill reduction

Hines GREEN OFFICE^® Program

In 2008, Hines initiated HinesGO^® (Hines GREEN OFFICE^®) to measure and reward sustainable practices within Hines offices worldwide, and a year later Hines launched the program for voluntary participation by tenants. Leaf Credits are earned by implementing specific strategies or improvements in six categories: energy efficiency; people and atmosphere; reduce, reuse, recycle; LEED; travel and commuting; and remodeling and construction.

653	active tenants have achieved GREEN OFFICE® ratings
28.8	million leased square feet of GREEN OFFICE® tenants
36.7%	of total occupied space firm-wide in the program

HinesGO^® Scorecard
Leaf Credits are earned by implementing specific strategies or improvements in six categories.
A minimum of 70 Leaf Credits qualifies an office for the GREEN OFFICE^® designation.

Hines administers a Best Practices Program to promote innovation by operations, engineering, design and construction professionals. A best practice is defined as a documented tactic, strategy, process, new technique or new technology that produces superior performance and is readily adaptable to other Hines offices or properties.

Ideas are submitted to a committee, evaluated and approved if they meet standards for efficiency, value, applicability, creativity and quality. Awardees are acknowledged with various forms of recognition.

The global program currently represents more than 300 best practices submitted by over 83 teams and 225 individuals; seven best practices were approved in 2017, five in the Engineering department and two in the Operations group.

Hines has partnered with Staples to supply eco-conscious products including paper, ink toner and printers as well as janitorial supplies and furniture. Many of these products meet environmental standards like EPA Safe Choice certified cleaners, Fair Trade certified coffees and ENERGY STAR certified electronics.

Security and cleaning services are provided by third-party contractors in Hines-operated properties. Hines expects all of its service contractors to comply with applicable laws relating to payment of wages and benefits, worker health and safety, interacting with labor organizations and other workplace laws. U.S. security, cleaning and other contracts include clauses for insurance, liability, non-discrimination, confidentiality and Office of Foreign Asset Control (OFAC). Respecting labor union relations, Hines is committed to a position of neutrality, guided by the interests of its partners, investors, clients and tenants.

Hines communicates property-specific procedures in tenant manuals, distributed in print and, increasingly, in digital formats. In addition to basic property management resources, security and emergency response instructions are included for medical, fire, earthquake, terrorism and other emergencies where applicable. Tenants are also oriented to heating, cooling and ventilation systems, and other automated systems, to ensure a balance of comfort and efficiency.

33 Tehama Celebrates Public Art

World-renowned, Japanese contemporary artist Yayoi Kusama’s vibrant Flowers That Bloom at Midnight was recently installed in the plaza outside the tower lobby of 33 Tehama, a 403-unit, for-rent multifamily development located in San Francisco’s South of Market (SoMa) neighborhood. Kusama’s bright, fantastically scaled bloom rests on its side and features bright red petals with white dots and an exaggerated eye in its center. The artist collaborated with CMG Landscape Architecture on the installation and surrounding plaza design.

Owens Corning Wildlife Habitat Council Certification

Hines supported our client, Owens Corning, in their partnership with the Wildlife Habitat Council on the brownfield reclamation at the firm’s Toledo, Ohio, headquarters. The 13-acre brownfield site was converted into savanna and prairie land that promotes biodiversity and employee engagement. The site has been certified with the Wildlife Habitat Council.