“By harnessing the tremendous technological advances that have been developed in recent years and bringing them together in one building, Southworks raises the bar for offices across London and creates a blueprint for post-Covid workspace.”
Tomáš Jurdák, Head of Real Estate at MiddleCap
SOUTHWORKS by:
2021 is a strange year to deliver a new building, but Southworks by MiddleCap is no ordinary property. Years before the pandemic began, MiddleCap decided to focus on smart building infrastructure as a competitive value differentiator. What they accomplished was an integrative design which not only pushed the smart standard but also went further than ever to bring the building into the users’ hands and experience. Southworks smart technology is built on a single digital backbone which works like a central brain of the building. This significant accomplishment is inspiring and hopefully a look into the future. Situated in the heart of London, Southworks by MiddleCap is a building experience like no other.
Smart Building Certification (SBC), which has been developed to promote wellbeing, sustainability, performance, innovation, and health and safety in the built environment, recognizes buildings that have smart tech infrastructure in place to evaluate a building’s behaviour and performance.
SBC objectively evaluates the ‘smartness’ of buildings by assessing six core areas: building usage, user behaviour and collaboration, building performance, building environment, integrative design and connectivity, and safety and security.
Southworks is the first building to be evaluated in the UK using the Smart Building Certification framework. Its technology-first approach and number of integrated design and management features create a responsive and productive environment that enhances user’s wellbeing.
This case study will talk about:
A single ‘digital backbone‘ – created through applied bGrid technology – links a series of sensors to the Internet of Things, which connects, measures and delivers feedback to building users. The sensors are plugged into the HVAC system and lighting controls, and also measure other environmental variables such as density, occupancy and noise levels. The data generated by this network is fed into the building management system, optimising the environment and ensuring it becomes completely demand-driven.
A dedicated app (OfficeApp) through which occupiers will be able to directly control heating and lighting to their own preferences and book meeting rooms, creating the optimum working environment.
Facilitation of more effective communication between building managers and occupiers, with messages and notifications shared in both directions through the OfficeApp.
Technology optimised for risk management in the support of longer-term social distancing by monitoring the flow of people throughout the building together with realtime information about indoor and outdoor air quality.
Forge Bluepoint visitor management in the building specification to provide a smart integrated and flexible way to manage visitors to and through the building.
With clear ability to make this building a better asset. Better for people, for the environment, and the bottom line.
So let’s get to it.
Some of the technologies mentioned in this case and found in this building are brought by:
Enable Re Opening During COVID 19
The most obvious discussion at the moment is how do we open, stay open, and more importantly, stay safe during this horrific pandemic. A building that doesn’t have the technological infrastructure in place would be hard pressed to answer this question as it is pretty much ‘flying blind’. How can you control what you can’t see? Southworks has this control in hand. It starts with the user journey and being able to communicate with them through their phone in real time, providing updates, where to go, where it is busy, what is free, what has been cleaned, air quality, etc. Truly empowering users to use the building effectively and safely.
“Office App is the world's most advanced tenant engagement platform for office professionals. Through our smartphone app, Southworks’ tenants will enjoy seamless access to all the services and amenities that the building has to offer. At the touch of a button, users will be able to enjoy features including on-demand desk and room booking, F&B ordering, community engagement, issues reporting, and communications.”
“Our platform will also be integrated with other smart building systems at Southworks, to ensure a COVID-safe environment. The app will provide touchless building and elevator access, live occupancy, environmental and air quality information, and contactless temperature and lighting controls. We will also be integrating with Southworks’ visitor management system provided by Forge Bluepoint, alerting tenants when visitors register at reception and issuing instant QR code access passes.” -Ikenna Nweke, Head of Sales for the UK & Ireland at OfficeApp
At the same time that the building is learning from how it is used, it reacts with demand controlled ventilation, supports planning to steer cleaning, and can even notify people to keep distance. In the end, users stay productive and safe when it is clear what is going on with the building.
Southworks has put astute focus on integrative solutions in all the areas that are important to mitigate the risks of COVID-19.
Demand driven ventilation
Openable windows /fresh air intake
Thermal imaging
Integrated user app for interaction with the building, wayfinding, notifications, and navigation, for social distancing
State of the art technology around reception and concierge services
Cleaning services plans can be made against the latest advice.
“Forge Bluepoint visitor management working with access control and Office App allows for a smart and seamless journey for visitors to and through the building. It adds to the data insights for building management of when and where visitors are going on-site and can help with resource planning, facilities management and ultimately cost efficiencies.’ - Bastiaan Koekkoek, Forge, Business Development Manager
Expected Higher Overall Valuation - Sales & rent
Over the longer term the Southworks smart infrastructure also plays a critical role in their value proposition. Better control over the asset means that it is better positioned for the constant evolution and optimization opportunity. Each technology in this building can be seen as additional value or service for the tenant if positioned and utilized correctly. The technology allows us to better measure cost, building performance, building environment, utilization and behavior and these additional insights can be put to work to optimize the value of the asset.
Southworks scored exceptionally high in all areas of the Smart Building Certification and therefore has the ability to focus on financial valuation from various stakeholder perspectives more easily:
Building Usage measures and shows the ability to manage building usage (which includes number of visitors, times when the building is most highly occupied, movement of visitors, amenities usage, and utilization of services) Southworks infrastructure at Platinum level enables building management to better meet the needs of its users to optimize and fine tune offerings based on actual data.
Building Performance measures how well the building, machines, energy consumption, and facilities perform against usage. This module indicates a clear asset opportunity to manage on detailed financial layers to continuously optimize the cost basis and operate more efficiently.
Building Environment shows that Southworks has a comprehensive technology suite in place to manage and optimize indoor environmental quality. As focus on healthy environments continues to gain momentum, this aspect can be brought into negotiations to campaign for higher premiums.
Although preferred financing for smart buildings is not yet a reality, there are strong indicators that it is on the way. Banks in the Netherlands have signalled a few years, whereas in Denmark they have predicted it could be possible in the next 12-18 months. In the UK, RBS is one of the first financial institutions providing green mortgages, so it makes logical sense smart buildings would be next in line.
In order for this to happen, we need to continue to prove the true financial, health, and sustainable value derived by smart interventions. This does not happen by merely having a smart infrastructure, It is what we do with that infrastructure that drives the value aspects. We are seeing premium prices starting to emerge for smart buildings and Southworks has the potential to be a part of this elite community based on how their infrastructure and investment is utilized.
Shift property management for a more detailed approach at a lower cost
Another concrete way to realize financial value is by exploring smart property management. Smart property management has emerged at fractions of the cost of traditional property management whilst adding exponential value and insight into the buildings' workings. These property management outfits are cheaper, provide more detail, ensure better building performance, provide more services, create higher impact for tenants, and offer more engagement opportunities because they have more data to engage with. Southworks is in the position to work with parties like this because of the technical infrastructure in place.
“Our team are delighted to debut our solution for the first time in the UK market, with such a stunning building as Southworks. Collaborating with MiddleCap to help realize their vision of a unique smart office, turned into a reality. Not just a cutting-edge building of today, but with the smart infrastructure provided by bGrid and intuitive apps such as Office App, the building has been futureproofed to evolve with occupants needs for years to come. A truly exemplary building, Southworks is paving the way for a new era of smart offices.”- Karl Van Ginderdeuren, CCO bGrid
Transition to new revenue models for your asset
Between 70-80% of companies are in debate about reducing their office size because this new remote way of working seems to be working. We will undoubtedly have less use for the office building but a more value driven use at the same time. Southworks as a building is in a perfect position to manage this new hybrid reality with the technology infrastructure already in place. At the same time, the technology provides a deeper level of insight and flexibility to look at the building use more creatively. New financial models are springing up across real estate that decrease the sq meter footprints per tenant whilst actually increasing the sq meter premium, providing a net savings still for the tenant and a net positive for the building. The way this is being done is by increasing the services and amenities to provide a better user experience and higher tenant performance. Southworks is centrally located with incredible technology and has the opportunity to capitalize on various business models because of its technological backbone.
“We are seeing a dramatic shift in real estate models across all sectors. There is a lot of opportunity for the right data driven solution to give insight in this changing landscape.” Nicholas White, Co-Founder and Head of Strategy & Operations at Smart Building Certification
Practically speaking, Southworks has data and insight in:
How the building is being used
The way the environment is behaving against that usage
How the building overall performs
Which allows for clear and measured services to be delivered, ordered, or quantified beyond SLA and qualitative measurements.
Manage Sustainability, Health and Wellbeing, Human Performance, Amenities and Services
Southworks rated Platinum in all areas of the certification, which illustrates its readiness to manage sustainability, health & wellbeing, human performance, and amenities / services.
Certification has shown that Southworks has the technical infrastructure in place to dive into each theme for both insight and optimization.
Sustainability Measurement - BMS Energy HVAC External Air Quality Machine Monitoring Proactive Maintenance Cleaning
Health and Wellness Measurement - Ventilation Temperature Humidity CO2 Sound,
Light
Human Performance Measurement - Planning, Nudging Feedback, Building Controls, Community
Amenities Services Measurement
Improve Stakeholder Alignment, Communication, and Integration
The technology infrastructure was integratively designed at the same time as the building. The technology chosen is easily replaced, upgraded, and adjusted. This infrastructure brings all the technology under one umbrella and therefore makes for more seamless stakeholder alignment, communication, and integration. Smart Building Certification has taken inventory of the structure and looked at these against the root cause benefit of the approach. Southworks is a building for the future now.
“It is a huge achievement for Southworks to achieve a Platinum Smart Building Certification. From the outset, we wanted our first UK project to present the London office market with a best in class building that really delivers what occupiers need from their workspace today, and in the future.”
“By harnessing the tremendous technological advances that have been developed in recent years and bringing them together in one building, Southworks raises the bar for offices across London and creates a blueprint for post-Covid workspace.” Tomáš Jurdák, Head of Real Estate at MiddleCap
Recommendations for the Future
Owners, investors, property managers, and tenants of Southworks will undoubtedly benefit from the technical infrastructure put into place by MiddleCap, and Smart Building Certification was pleased to see to what extent that infrastructure exists, but it is also not a guaranteed value generator. The value realization is derived from the process design and utilization around these technologies. Stakeholders need to continue to work together to streamline, measure, validate, and optimize the outputs. If this is done with an astute view on the value it is creating, we have no doubt that this asset is going to generate more to the bottom line. The technology providers are ready to help.
If you would like to discuss this further with MiddleCap or Smart Building Certification, please find contact information below:
Get in touch to learn more
Nicholas White
Co-Founder & Head of Operations SBC
+31 624347887
nicholas@smartbuildingcertification.com
www.smartbuildingcertification.com
Hana Ruttkayová
Senior Marketing Manager MiddleCap
+421 903430331
ruttkayova@middlecap.com