Embedding technology: adaptability, the war on talent and the environment
BY FONS VAN DORST EDGE.TECH
Fons is an Executive Commercial Director at EDGE, responsible for the companies' expansion into the UK market.
EDGE is a technology real estate company that aims to reinvent the modern workplace as a driver for health, sustainability, and innovation. Founded in 1997, the company combines decades of experience in real estate with proven innovation, big data analytics, smart technology, and smart systems.
BNPPRE: Do you believe the office sector will fundamentally change through the adoption of workplace enabled technology? Fons van Dorst (FVD): No, not really, the most important function will still be that the office is a place for people to meet, interact and to be inspired. We think that productivity and creativity generally thrive on interaction in all workplaces.
Technology can help an occupier make more efficient use of their office space and one of the applications that is really relevant at the moment is that it can also help expedite the safe return to the office. For instance by measuring air quality, cleaning maintenance or providing access to a dedicated desk. Simple stuff can make a huge difference.
BNPPRE: Does technology alone make a better building? Who benefits the most from that – developer / owner, occupier or the user? FVD: We see technology as an enabler, something that helps us to drive higher levels of sustainability and wellbeing. We can help build and make more efficient use of its resources, so it’s better for the environment and that should also translate into savings for the tenant. If we take our redevelopment of the Unilever building in the United States, we reduced energy consumption of the building by approximately 70% with the help of smart technology. This is also recognised by our occupiers who rate our buildings within the top 5% best buildings in the world to work in, as measured by Leesman.
So if tenants like it, investors like it. And if investors like it, then developers like it. So it’s good for everyone.
BNPPRE: Do tenants and users want a smart or tech enabled building? FVD: There’s a lot of demand for tenants to be part of buildings such as ours. Tenants are actually looking for ways to strengthen their brand or corporate identity. This is something that we help them with, by offering them buildings that operate on the highest levels of health, sustainability and wellbeing – which in turn will help them to secure, attract and retain talent.
Although this has now become a horrible cliché, the war on talent is very real. This is why tenants really value a tech enabled office building that really drives performance to a whole new level.
At the present moment, technology is also key for our occupiers returning to their offices. An example of this is how we measure CO2, air humidity and particulate levels. It’s key to monitor air quality, so that we reduce the opportunity for harmful viruses to float around in the air. So measuring and knowing your environment is only going to become more and more relevant.
BNPPRE: What is driving this? What is the return on investment? Or is it a more human centric decision? FVD: Financials are always part of every equation and what we show is that the costs are not necessarily higher or lower. Whatever you might save on energy, you may end up spending on interiors or how you use the building, and that goes hand in hand with making optimal use of the space.
BNPPRE: How are you addressing the environmental impact of the real estate sector within your developments? FVD: Everybody is aware of the fact that we need to think about the environment and our carbon footprint. We can show occupiers that our technology helps us reduce that, which is a great win for tenants. This translates into cost savings, and most importantly, is the right thing to do. All of our developments have a strong focus on operational and embedded carbon. This requires us to work with best in class partners throughout the whole development process and the supply chain. This starts at the first brief with the architect, through to the selection of the general contractor. For our embedded carbon usage, the use of cross laminated timber or recycled concrete can help us achieve our targets. We have the same approach to operational carbon, driving it down by working together with market leading energy consultants and using our own technology. We also think that it is part of our responsibility to help our tenants to set up their offices in a sustainable way from an operational carbon perspective, so the overall consumption of energy is as low as possible. There’s no silver bullet that instantly creates a sustainable building. It’s all these little measurements that help drive down your use of carbon. If you don’t make use of every opportunity, you won’t be able to drive your environmental impact down to the levels that we aspire.
BNPPRE: With the recent rise of ESG linked products, the issue of “greenwashing” has come to the fore. Do you think that “tech washing” is an issue? FVD: When you talk about tech, you need to make sure that we are talking about the same thing as there are different levels. If you just want to measure and learn about the environment you’re working in, that’s one thing, but the sort of tech that we are now focused on is tech which is built into the backbone of the building to ensure that it’s enabled for the future. Everything is smart and connected to the internet. If we want to upgrade our systems, it’s a software update and not a physical hardware upgrade. You just need to make sure that the infrastructure is right for future adaptability.
BNPPRE: Where does the next innovation within a ‘better’ building lie? FVD: I think it’s changing the office offering from a product to more of a service, where landlords and tenants work together to operate in a more sustainable way. For example, in the tower we’ll be delivering at London Bridge, we’ll be able to help our tenants occupy the space in a Paris (Paris Climate Agreement) proof way. By working together with our occupiers, we can help them meet their ESG targets and also strengthen their brand. That’s what they’re really interested in.