Copyright Institute of Real Estate Management Jul/Aug 2002| [Headnote] |
| Beyond pure aesthetics, scientific studies show interior landscaping cleans the air and provides a catalyst for worker productivity |
New findings indicate plants not only keep the inside of a building looking better but feeling better as well.
Tools for Toxicity
NASA scientist Dr. B.C. "Bill" Wolverton's work on the effect of plants in interior environments has particular relevance.
In his book, How to Grow Clean Air, Wolverton identified 50 common houseplants and rated them on their ability to clean the air. "There is something in the air around plants that suppresses the levels of mold spores and other microbes around the plants," he said. "Plants can even be effective against such toxic microbes as anthrax and ebola." Among the most effective plants, according to Wolverton, are areca and lady palms, rubber plants and golden pathos. "The more foliage you have, the more effective in cleaning the air inside the building," he said. "We've also tested orchids and peace lilies. Flowering plants are very good, but some people may be allergic to pollen. If they are, we suggest they use foliage plants." Wolverton said a plant becomes more effective when it is closer to a person's breathing zone.
Wolverton suggested sealed buildings not only make use of houseplants but improve their air filter systems as well. "When we studied how these buildings get fresh air for ventilation, we found that many buildings don't even bother filtering it," he said. "This makes these buildings very vulnerable, as they discovered in New York City after September 11. All that horrible air was sucked into buildings and caused all kinds of respiratory problems."
Better Environment, Better Workers
Dr. Virginia Lohr's work at
Washington State University centers on the office environment. The horticulture professor conducted a 1996 study focused on a computer lab where one group of workers did a task in a computer room without plants and a similar group was assigned the same task in the same lab with plants present. "People were significantly more productive when plants were in the same room."
"A number of other studies show people are less stressed, and mental fatigue is reduced when they are working in environments where plants are present," she said. "We did another study that shows people experience less pain when plants are present." Added Bonuses Evidence suggests interior landscaping adds value to the commercial property beyond health and worker productivity. Richard Greninger, managing director, CarrAmerica Realty Corporation said plants are particularly beneficial for enhancing the value.
"Live plantscapes have been a valueadded distinguisher for Carr/America Realty Corporation and its predecessor companies for the past 45 years," he said. "We have used live plants to help define our first-class brand in the entrances and lobbies of our Class A office buildings. "Having plants in the workplace adds eye-pleasing color, increases productivity and helps clean the air. We have noted fewer sick days and our employees seem to generally have a better attitude," Greninger added. "Attracting and retaining 'A' employees has never been more critical, and interior plants help."
According to the International Society of Arboricultural, the net cooling effect of one young healthy tree is equivalent to 10 roomsize air conditioners operating 20 hours a day. According to the Associated Landscape Contractors of America, proper selection and placement of plant materials can lower heating and cooling costs by as much as 20 percent. Dr. Lohr reported exterior landscaping also has a positive effect on tenant occupancy in office buildings.
"The better rated the landscape amenities, the higher the occupancy rate," Lohr said. Property managers, get planting. Lisa Trosien, president of Aurora, IL-based Impact Marketing & Training, said the recession and aftermath of Sept. 11 deteriorated market conditions, forcing landlords to give concessions and spotlighting the need for improved customer service.
| [Photograph] |
| Studies indicate that employees who stop to smell the roses are more productive. |
| [Photograph] |
| Property managers need to connect with tenants on a one-to-one basis. |
Now Role for Property Managers The role of the property manager has changed as a reflection of the state of the industry.
In Gille's view, the property manager's altered role is one of insuring the existing tenant base is satisfied. "It means spending more personal time with tenants and connecting with them on a face-to-face basis," he said. "Managers need the skills that will create positive experiences for tenants. The building is not just a place where you house somebody." Mindy Williams, editor of Rent & Retain magazine, said property managers and owners lose about two-thirds of customers due to lack of personal contact.
Martin and Trosien both said being an asset manager is the key to keeping vacancies low. Trosien said managers need to know the impact of concessions on the property and how to implement a marketing plan. "Managers need to be much more focused on inside and outside marketing and how to keep the back door shut," she said.
Schlauch said tenants are no longer struggling to find space in the wake of increasing supply from the development pipeline and a glut of sublease space.
"Tenants now have the luxury of being more discriminating about customer service, which will lead to enormous financial implications for owners," he continued. A recent study of a 12 million square foot office portfolio with a 6 percent rollover showed approximately $900,000 could be added to the bottom line for every 10 percent of expiring space the company renewed rather than re-tenanted. Williams said tenants are a lot choosier. In the multifamily market, she said the average client calls 10 apartment communities and visits 8 apartments before making a decision.
Amenities In Demand Gille said the most popular amenities are basics such as good management and parking, versus frills such as concierge services. A high-speed Internet connection is a basic requirement of technology tenants. Day care, especially for those employers using it as a recruitment tool, is also desired. Commercial tenants require upgrading of common areas and parking while residential tenants value washerdryer connections and concierge service. Security is an important requirement for both residential and commercial tenants. A residential survey by Apartments.com indicated 57 percent of respondents named swimming pools as the most frequently requested amenity, followed by apartment air-conditioning and washer-dryer connections.
In Schlauch's view, both commercial and residential tenants want good communication and follow-through. Commercial tenants are interested in amenities that add convenience such as on-site food service. Residential tenants value on-line rent collection or payment by credit card, housekeeping and dry cleaning services, package acceptance and concierge services.
Based on Williams' poll of property managers in North Carolina, Atlanta, Dallas, St. Louis, San Diego and Boston, the most in-demand amenities are high-speed Internet connections, covered parking and 24-hour security.
Williams said many property management companies are installing systems enabling residents to report problems and make service requests by phone or via the Web around the clock.
The aim, Williams said, is to reduce move-outs by increasing customer satisfaction. "Make sure your residents have a variety of ways to report their service requests."
Some property managers are taking the creative route to customer service. One property manager in Salt Lake City implemented a "Service Six Days a Week" program, whereby service technicians are on call six days a week on a rotating basis, Monday through Saturday. A Chicago manager hangs service request forms on residents' doors each week while another manager offers residents a day of free rent if service requests have not been completed in 48 hours.
Small Cost Services
Small or no cost services that can generate tenant goodwill include candy, note cards with a customer service number, free continental breakfast and complimentary videotape rentals. Monthly "meet and greet" lobby gatherings with tenants and quarterly face-to-face meetings with decisionmakers are other techniques to try. Outfitting security and janitorial staff with spiffy uniforms also helps change the perception of service.
Schlauch said property management ranks only behind price and location as top factors in the tenant's decision to renew. Trosien said rent concessions are the most important factor, while Martin said customizing and upgrading of apartments is the key.
Looking forward, property managers will be able to increase their customer service quotient by providing tenants with Internet-based services that will speed and improve communication. Whatever the methods, however, property managers' success will continue to focus on quality customer service.
| [Sidebar] |
| "Managers need the skills that will create positive experiences for tenants." |
| Thomas Gille, CPM |
| [Author Affiliation] |
| James T Berger (j-berger@northwestern.edu) is a Northbrook, IL-based freelance writer and marketing consultant |
| [Author Affiliation] |
| John Bell is a Chicago-based freelance writer and frequent JPM contributer. |