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02.

13 //
FORWARD THINKING Ten experts predict the next big thing p14
UP TO DATA How to get ahead in the data centers sector p24
A RISKY BUSINESS? Iraq: surveying the opportunities p40

THE
VIRTUAL
ISSUE

ricsamericas.org

Introducing
RICSEdge
Training
the Training
Americas
Gain a Leading
withfor
RICS
From
leading professional body for qualifications in
for the
theworlds
Americas
land, property and construction.

The wide range of organizational management and professional development courses are designed
to help you operate more effectively and build your skills. All RICS training courses qualify as
Formal Continuing Professional Development (CPD).

Training for personal and professional development includes online and face to face
courses to help you operate more effectively and develop your career. Upcoming face
RICS courses
offers training
online and in person, including:
to face
include:
Save

E-learning--Online learning in your own time and at your own pace

15%

Techniques
in Construction
Management:
Toronto
13 / NY Nov
Measurement
Web class--Live
and interactive
computer-based
training
onNov
registration
fees15
Pre and Post Contract Project Controls: NY Dec 6 / Toronto Decthrough
11
March 31
Face-to-face--One-day and multi-day courses in markets throughwith
code
Contract
Management and Delivery Options: Toronto Jan 15 / NY
Janpromo
17
out the region

Distance learning--In collaboration with top educational institutions


Go tooffering
the Americas
Online
for theto full
schedule
of courses.
courses that
spanAcademy
from introductory
advanced
topics

MODUS

www.rics.org/olaamericas
www.rics.org/olaamericas

Register for RICS Training Courses


View the complete course catalog at www.rics.org/olaamericas
March 2013
Web Classes
March 5

Professional Liability Trends CPD 1.5

March 11,18,25 Red Book Compliance Reporting and Valuation (three-part series) CPD 6
March 19

RICS Professional and Ethical Standards in Context CPD 1.5

Face-to-Face Courses
March 12

Pre and Post Contract Project Controls Toronto, Canada CPD 6

March 15

Pre and Post Contract Project Controls New York, US CPD 6

March 15

The Red Book: Compliance, Reporting and Valuation Kingston, Jamaica CPD 6

April 2013
Web Classes
April 8,10,12 Contract Management and Delivery Options (three-part series) CPD 6
April 29

DCF Valuations - A Practical Introduction to Guidance Note 7 CPD 1.5

Face-to-Face Course
April 25

Fundamentals of Valuation - Commercial Barbados CPD 6

May 2013
Web Class
May 13,15,17 Program and Portfolio Management (three-part series) CPD 6
May 23
US vs. UK Contracts, Understanding the Differences CPD 1.5
Face-to-Face Course
May 9

Fundamental of Valuation - Commercial Kingston, Jamaica CPD 6

www.rics.org/olaamericas

Contents

NO 5
02.13 //

THE VIRTUAL ISSUE


RICS is an institution thats remained consistent in its commitment to
professionalism and serving the public trust since it was founded in 1868. In our
latest approach to serving the public, we have employed a marketing concept of
creating pull. Many members, staff, and stakeholders wonder why this is necessary
and how it benefits members. Pull is all about creating benefit for members in a way
that greatly enhances market acceptance of our standards and increases the profile
of members and their firms. Pull provides greater transparency, delivers quality, and
enhances assurance, while reducing risk. Pull is all about linking the needs of end
users and constituents to our members businesses. In some ways, they are the very
same reasons why chartered surveyors formed this organization all those years ago.
NEIL SHAH MANAGING DIRECTOR, RICS AMERICAS

14

Regulars
05_FEEDBACK
Your views on Modus and
the property professions
06_INTELLIGENCE
Global news, plus opinions,
reviews and reactions
31_ETHICS ADVICE
The danger of unintentionally
creating a contract by email
44_BUSINESS ADVICE
Practical points for considering
a virtual work arrangement

Features
14_WHATS THE BIG IDEA?
Ten ideas and innovations that
have the power to revolutionize
the property professions

24_THE VIRTUAL REALITY


The wide-ranging opportunities
for professionals in the
burgeoning data centers sector
32_THERES AN APP FOR THAT
A round-up of useful apps, plus
how to progress your own idea
34_MODEL BEHAVIOR
Using simulation software to
create secure environments
40_REBUILDING IRAQ
Are the rich opportunities for
work worth the potential danger?

In formation
45_RICS NEWS
News and updates, plus a
message from the RICS President

20_UNDER ATTACK
Fighting back against the
ever-growing threat of cybercrime

48_MEMBERSHIP
The latest updates and events
for the professional community

22_10 MINS WITH...


Gary Wener MRICS of the Canada
Pension Plan Investment Board

50_THE MEASURE
Facts and stats about data
breaches and identity theft

04

rics.org

40

24

Feedback//

JOIN THE
DEBATE
:SEND YOUR FEEDBACK TO
editor@ricsmodus.com
twitter.com/RICSAmericas

CREDIT NOTE
I just got a hold of Modus Americas edition
[October 2012], what a superb publication!
I read and agreed wholeheartedly with Neil
Shahs opening remarks. I know of very few
professional membership publications that
have the standard of content, diversity and
presentation as that of Modus. It is a credit
to the RICS team that brings such a wealth
of knowledge together from the various
members who have dedicated their time
and effort in developing the profession,
to the standards that we as members of
RICS recognize to be the hallmark of who
we are, what we do and how we carry out
our activities. It is those high standards
that have held firm for the past 144 years,
which shape RICS today and will do so into
the future. Congratulations.
Ramsey Tadros FRICS, So Paulo, Brazil
SUSTAINABILITY STRATEGY
I read with interest the observations of
the four eminently qualified surveyors on
sustainability in the Leadership issue,
who all have a handle on the subject but
disappointingly only one, Miles Keeping,
reflected the reality. For those who
continue to promote sustainability as a
separate subject, I agree with Miles that
this is not the way forward. Markets quickly
judge what is good value and where costs
can be saved or efficiencies improved.
Empirical requirements simply encourage
complacency and often an overly optimistic
approach. But the reality is usually different
and, therefore, risk profiling is the way

in which investment, development and


occupational markets will judge the
potential and returns, and it will be on
this basis that sustainability will perform as
an embedded part rather than as a discrete
subject. Sustainability is fundamental to
all our jobs and its assessment is not in the
hands of a few. To say otherwise would be
to suggest the market is not interested in
sustainability, which it most definitely is

but not at any cost. Sustainability is simply


part of a transparent and understandable
measurement of performance and, where
it can be demonstrated, it gives the investor
and occupier an advantage, which will be
based on a risk assessment. In valuation
terms, that will drill down into the rent an
occupier will pay, and the yield return an
investor will expect, given market conditions.
Graham F Chase FRICS, London

PICK UP THE PACE

:MORE AND MORE RICS MEMBERS ARE INTERACTING ONLINE


VIA SOCIAL NETWORKING WEBSITES

twitter.com/RICSnews

26,650 followers in December 2012. RICS is also tracking


725 tweeting professionals see twitter.com/RICSnews/lists
twitter.com/RICSAmericas

820 followers in December 2012


rics.org
Since the launch on 14 September,
around

24,000 RICS members

have logged on from more than

100 different countries

linkedin.com/company/RICS

31,950 members in December 2012


linkedin.com/in/RICSAmericas

600 members in December 2012

Due to the volume of correspondence we receive, we regret that we are unable to print all letters or respond to every one individually.

The MODUS team//


FOR SUNDAY

Display Lucie Inns // Commercial Manager Recruitment

FOR RICS

Editor Oliver Parsons // Art Director Christie Ferdinando

Charlotte Turner // Recruitment Sales Executive Angus

Editorial board Jaclyn Dunstan and Mark Goodwin (UK)

// Contributing Editor Brendon Hooper // Deputy Editor

Sharpe // Managing Director Toby Smeeton // Repro F1

Tom Pienaar and Heather Shostack [US] //

Samantha Whitaker // Intern Isabella Fernandes // Creative

Colour // Printers Wyndeham Gait // Cover illustration

(+1) 212 847 7400

Director Matt Beaven // Account Director Stephanie Hill //

Dill Delaney // Published by Sunday, 207 Union Street,

Commercial Director Karen Jenner // Commercial Manager

London SE1 0LN sundaypublishing.com

Views expressed in Modus are those of the named author and are not necessarily those of RICS or the publisher. The contents of this magazine are fully protected by copyright and may not be reproduced in any form without the prior
permission of the publisher. All information correct at time of going to press. All rights reserved. The publisher cannot accept liability for errors or omissions. RICS does not accept responsibility for loss, injury or damage or costs that result
from, or are connected in any way to, the use of products or services advertised. All editions of Modus are printed on paper sourced from sustainable, properly managed forests. This magazine can be recycled for use in newspapers and
packaging. Please dispose of it at your local collection point. The polywrap is made from biodegradable material and can be recycled.

02.13 // MODUS AMERICAS

05

Intelligence
:news :reviews :opinions :reactions

:Global Seed Vault


Svalbard, Norway
Set deep inside permafrost, which keeps
the structure at a consistent temperature
of -30C, the Svalbard Global Seed Vault
was developed in 2007 to be a central bank
of the worlds food plant biodiversity. As
were forced to adapt to the effects of
climate change, food security has become
an increasingly important issue. Designed
and planned by Barlindhaug Consult of
Troms, the vault currently holds 780,000
seed samples, with a capacity for around
1.5m. The Nordic Genetic Resource Centre
first assessed the disused mine site in
1983, and later set up an early form of
the seed storage facility 300m inside.
The extended structure was built in 2007
as three concrete chambers, powered
and refrigerated to -18C by an on-site
generator. Should the backup power fail,
the surrounding permafrost is expected
to act as a temporary natural cooler,
preventing the seed stores from being
damaged. The entire structure is around
1,000m2, but above ground it is recognized
by its distinctive concrete fin entrance.
nordgen.org/sgsv

Intelligence//

Opinion

IN A MOBILE
WORLD, WHATS
THE OFFICE FOR?
James Ware The FutureWork Forum

here are two things we know about the future of


work: it will be dramatically more distributed and
mobile, and it will entail significantly more
collaboration. More people will work in more places, and
interact with peers in other places, than ever before.
And new technologies have already made it both easier
and much less expensive to connect and collaborate
effectively with business colleagues no matter where
they are, and from wherever you are, at any time. In 2010
the research firm Interactive Data Corporation estimated
that there were already over one billion people worldwide
who were capable of getting their work done from almost
anywhere. And while not all of them are yet working that
way (and few are doing it more than a day or two a
week), the way we work is clearly changing dramatically.
One result of all of this mobility, of course, is that many
corporate facilities are terribly underutilized. Whether
your company has a formal flexible working program or
not, the odds are high that well over a third of your staff
are working somewhere other than the corporate office
on any given day (we first identified this pattern in a
global workforce survey over ten years ago, and it has
since been substantiated anecdotally by every facilities
executive I have ever asked about it).
Given this new reality, facilities management (FM)
professionals must ask several strategic questions. In a
mobile world, what is the role of the corporate office? What
is the value of an office? When and how does a corporate
facility add value to the organization? And, perhaps most
importantly, what is the future role of the FM function

Global // Q3 MARKET STEADY


Global investor transaction
levels remained steady in Q3
2012, with US$96bn transacted
over the quarter, according to
Jones Lang LaSalles (JLL)
capital markets research from
60 countries. Despite a slight
fall on the US$106bn total
recorded in Q2 2012, a fullyear 2012 global forecast

24
08

rics.org
www.rics.org

itself in a world dominated by workforce mobility? There


certainly are positive answers to these questions, but they
require careful thought and extended conversation
among all members of the C-Suite, not just the facilities
and other infrastructure executives. It is no coincidence
that leading organizations such as Google, Apple, and
Facebook are working hard to develop corporate facilities
that their highly mobile employees actually want to use on
a regular basis; the office is an important place to
experience community, to collaborate face-to-face, and
to build a cohesive, high-performing culture.
Indeed, the office is, and should be a strategic resource
for attracting exceptional employees and leveraging their
talent, but achieving those goals today requires a whole
new mindset for facilities professionals, and new skills
as well. For an extended discussion of FMs strategic
potential, I recommend reading the recent RICS report
Raising the bar: Enhancing the strategic role of facilities
management at rics.org.

TALKING POINT
Googles quirky and
vibrant workspaces
are designed to
encourage creativity
and interaction
among staff

JAMES WARE is a partner at the FutureWork Forum, a former


Harvard Business School professor, and research director at
the Occupiers Journal. futureworkforum.com

remains at around US$400bn.


While general sentiment
continues to be constrained
by the economic environment,
transaction volumes have been
robust overall due to the high
levels of interest in offices,
retail and industrial real estate
in major global markets, said
Arthur de Haast from JLL.

Europe // OUTSIDE INTEREST


Opportunities for investment
outside of core market cities
will become stronger in the next
five years, according to research
from Jones Lang LaSalle (JLL).
The firm predicts that the vast
majority of the largest investors,
such as Asian and US institutions,
will continue to focus on the
prime office buildings in the most

liquid markets of London, Paris


and major German and Nordic
cities, leaving opportunities open
elsewhere. Secondary space
might present more opportunities
for cash-rich, entrepreneurial
investors who are willing to ride
out the economic risks across
Europe, said Bill Page, director
of EMEA research at JLL.

China

SUNNY SIDE UP
Construction is underway
at the Hongqiao Vantone
SunnyWorld Centre, a major
new development for the
Shanghai Hongqiao CBD.
Designed by architects Foster
+ Partners for Vantone Real
Estate and SunnyWorld Group,
the mixed-use commercial
project will include a new
40,000m2 public park, and laid
out as opposing triangular
sections. Meanwhile, Foster
+ Partners has revealed that
it will soon open an office in
the Brazilian city So Paulo.

:ONE BIG QUESTION


HOW IS YOUR LOCAL
COMMERCIAL PROPERTY
MARKET PERFORMING?
US

CITY CONTRAST

40%

The percentage of Scottish


households that could be
powered by the worlds biggest
offshore windfarm, planned for
construction off the coast
of Caithness

New Yorks property market is


one of the healthiest in the US,
according to IP Globals Q3 property
barometer. As well as having one
of the lowest foreclosure rates of
around 0.003%, rental vacancy
rates are also less than 1%.
However, IP Global found that in
Miami, Florida, around one in every
30 housing units is in some stage
of foreclosure, and despite a recent
increase in foreign capital at the top
end of the market, the rental
vacancy rate is still higher than
the national average at 9.3%.

UK

KENT ATTRACTION
Plans for a US$3.2bn Hollywood-style Paramount Pictures theme park
in Kent have been unveiled. London Resort Company Holdings (LRCH),
a joint venture consisting of Lafarge, Development Securities, and
Brookfield Multiplex, will take the plans forward for approval. The plan
for the site on the Swanscombe Peninsula includes an indoor water
park, a rollercoaster, music venues, movie theaters, hotels, and
restaurants. We are particularly pleased with the appetite we are
seeing from investors, said Tony Sefton, project leader for LRCH.

Bermuda Lack of demand is


causing rents to soften. And,
until the high levels of extant
inventory of office, warehouse
and retail space are eroded,
speculative development
activity is unlikely to return.
Rob Newton MRICS, Bermuda Realty Company Ltd

Toronto There appears to be


a very healthy, balanced office
leasing market, but I predict
little growth in 2013 as the
Canadian banks may not singlehandedly provide the same
absorption they did last year.
Graeme Young FRICS, Colliers International

Connecticut As occupier
densities are increasing,
the demand for space is
decreasing and CEOs are
hesitating to make longterm growth commitments
for their businesses.
Jeffrey Gage MRICS, Cresa Fairfield County

Brazil Theres been a notable


increase in the amount of
office space development,
but yesterdays rental rates
are no guarantee of tomorrows
values or, consequently,
of capital growth.
Ramsey Tadros MRICS, Westfields

Tennessee Vacancies continue


to trend downwards, but
more slowly in some sectors
than landlords would like.
Interestingly, although were a
second-tier market, we often
have first-tier fundamentals.
Benjamin Mosley MRICS, Cassidy Turley
Source: RICS Global Commercial Property Survey Q4 2012

02.13// MODUS AMERICAS 209


5

Intelligence//

Opinion

SHARING DATA WILL


UNEARTH THE REAL
POWER OF BIM
Christopher Bailey FRICS Lend Lease

uilding information modeling (BIM), while a very


powerful environment, has several major barriers
to the realisation of its full potential the most
significant being the lack of quality data input. So, is the
I in BIM still missing?
At any given design stage, models will be incomplete
but we can still extract the physical and geometrical
data content. Whats missing is sufficient object
identification and specification properties, which allow
unique object data extraction. Software systems are
becoming more intelligent, and interface products are
emerging that link model data to estimating platforms,
but the question still remains: do we have sufficiently
mature models in the marketplace from which to extract
validated content for return on investment?
One problem that continues to fuel this lack of model
information is the fixed fee structures for designers.
Another is the abundance of coding structures that have
not yet fully transitioned into the models. There is a
need for a consistent approach to object coding across
the industry to create databases that recognize these
codes. Without a standardized coding platform, users
will continue to generate numerous databases to meet
the mapping needs of multiple model designers.
Whereas by using the same code structure, all sectors
will be able to interpret from the same base information.

As an industry, we have evolved from the drawing


board, transitioned through the 2D computer-generated
drawing era and are now in a 3D model environment with
BIM but have we all missed the most significant
aspects of the this development? The real power of BIM
resides in the ability to embed consistent, accurate and
meaningful data that can be utilized by others.
From a quantity surveying perspective, the main focus
remains extraction of data from designers models
effectively 5D. However, validation of model content is
absolutely essential: what you see is not always what
you get. We need to continue to collaborate and
appreciate the bigger picture. BIM represents the toolkit
of tomorrows built environment, but if we are to evolve,
we must really focus our attention.

NEW WORLD
BIM is a powerful
tool, but it must
be underpinned
by consistent and
accurate data

CHRISTOPHER BAILEY FRICS is vice-president and


cost planning director (Americas) at Lend Lease Project
Management & Construction, New York. lendlease.com

UK

PROUD DELIVERY
A US$482m Ministry of Defence facility
has been constructed at RAF Wyton in
Cambridgeshire. During the construction
of PRIDE (Wyton) the Programme to
Rationalise and Integrate the DI Estate
contractor Skanska worked with
coaching and development firm Acorn
to increase effective partnering
between Skanska, the client (Defence
Infrastructure Organisation) and the
end customer (Ministry of Defence).

10

rics.org

ESSENTIAL
CONNECTIONS

twitter.com/RICSnews
twitter.com/RICSAmericas
twitter.com/RICSAsia
twitter.com/RICSIndia
twitter.com/RICSMEA
twitter.com/RICSOceania
twitter.com/Modusmag
linkedin.com/in/RICSAmericas

Brazil

MDA Consulting has won its first


commission in Brazil as project
manager and development
procurement strategist on a
residential program and country
club to be built near the coastal
town of Joo Pessoa. The Brisa
De Coqueirinho project,
developed by UK-based James
Laurence Developments, will
involve the construction of
communal facilities, including
a leisure center, infrastructure,
roads, and utility services to
enable the sale of serviced house
building plots for up to 800 houses.

(RICS Global Real Estate Weekly)


(RICS Global Real Estate Weekly)

Japan A reduction in public


investment has led to a
steady decline in housing starts
US The devastation caused by
Hurricane Sandy will boost
the construction sector

Rising

Falling

Country strategy

2015

Date by which the California Department


of Motor Vehicles is to draft regulations
for autonomous vehicles

Books
:reviews

Order from rics.org/shop

This book explores the


different approaches
used in designing a BIM
model, and incorporates
them into one cohesive
and usable strategy.
19150 // 45 (US$73)

5.2%

The percentage
global wheat production
is expected to fall in
2012 (FAO)

Americas

Flourishing markets

Incorporating new
information on BIM,
integrated practice,
and sustainable design,
plus how designers
can use the latest
technological tools.
19148 // 57.50 (US$93)

Latin Americas relative economic resilience and growth opportunities across


key markets will continue to attract large numbers of corporate occupiers
and investors in 2013, according to CBRE. The firms report also found that
office construction has picked up, with more than 680,000m2 of office space
added over the year, and almost 2m m2 of projects under construction.
Meanwhile, the Brazilian office markets of So Paulo and Rio de Janeiro were
also noted to have the highest rents, with both averaging US$77 per m2 per
month for Class A space. Download the report at bit.ly/VmAlM7.

Germany

Image Sandra Moura Architects

Sprucing up
More than 50 years after its construction,
this housing complex at Buchheimer
Weg in Cologne has been refurbished.
The complex is one of hundreds of similar
programs that sprang up in almost every
German town after the Second World War
to house a booming population, many of
which are now in need of modernization.
Designed by architects and planners
ASTOC, with surveying from SEAD
Geoinformationen, the refurbishment of
Buchheimer Weg is seen as a model for
retaining and rejuvenating existing costeffective structures for use by low-income
groups in other cities.

The 11th edition is fully


up to date with latest
guidelines, statutes
and case law, including
the implications of
the Localism Act.
19315 // 44.99 (US$73)

Providing costs for


highway works, and
general and civil
engineering works,
plus a full breakdown
of labor, plant and
material elements.
19232 // 155 (US$252)

02.13 // MODUS AMERICAS

11

Opinion

FEDS NEW OPEN-ENDED


EFFORT COULD SPARK
RECOVERY IN THE US
Simon Rubinsohn RICS Chief Economist

fter the shock waves that have rocked


the global economy over the past few
years, a heightened level of economic
insecurity is inevitable, forcing governments
and central banks to take further measures to
provide some level of reassurance to
households. In the past month, this has
included another round of intervention from
the Bank of Japan, as well as a huge fiscal
stimulus from the Chinese government.
But the most dramatic announcement,
arguably, has come from the Federal Reserve
(Fed), which effectively committed itself to
taking on responsibility for reducing
economic insecurity in the US. The press
release following the latest Fed meeting
stated, If the outlook for the labor market
does not improve substantially, the
Committee will continue its purchases of
agency mortgage-backed securities (and)
undertake additional asset purchases.
Although the US monetary authority does
have a dual mandate unlike most other
central banks, which tend to have a singleminded focus on inflation rarely has any Fed

chairman been quite so explicit in following


this more broadly based approach to the letter.
Not everyone, it must be acknowledged, is
comfortable with the worlds most powerful
central bank taking such an activist approach
to managing monetary policy. One fear is that
this apparently endless commitment will be
a breeding ground for inflation, sparking a
new and more pernicious round of economic
upheaval. If this is right, the policy will
ultimately fall well short of its objectives.
The initial reaction of the US bond market
certainly provides grounds for concern, with
investors falling over themselves to get hold
of inflation-protected debt issued in the wake
of the Fed decision. Other traditional inflation
hedges are also likely to strengthen over the
coming months, including prime real estate
and gold. Despite this, my judgement is that
Ben Bernanke made the right call. Of course,
the Feds strategy carries risks and markets
are right to pay attention to them. But I cant
help believing that the threat posed by the
current wave of economic insecurity, and the
resulting deficiency in demand, is far greater.

Turkey

BIO LEADER
US

RECOVERY IN ACTION

After almost four years of house


price falls, the US housing market
is recovering well with house prices
rising again, demand returning, and
home sales increasing, according
to the Federal Housing Finance
Agency (FHFA). The FHFAs
seasonally adjusted purchaseonly house price index rose by
4.75% (3.01% in real terms) during
the year to August 2012 the
largest annual growth in house
prices since September 2006. On
a quarterly basis the index increased
by 1.48% (1.23% in real terms) in
August 2012. Construction activity
also saw a rise, while the
delinquency rate is stabilizing
and foreclosures are falling.

12

rics.org

Davis Langdon has been appointed project manager


on Phase 1a of Bio Istanbul, a US$2.2bn plan to
build Turkeys first biomedical science park, advanced
childrens hospital, and sustainable residential community.
The project, which will accommodate 15,000 residents
and 20,000 working commuters when completed, aims
to be the first large-scale community in Turkey thats
built to meet LEED and BREEAM sustainability standards.

NEWS BITES
Air appointment

Gleeds has been chosen


as program manager to
the US$174m JetBlue
Terminal 5 International
project at John F Kennedy
Airport. The project
includes a two-level
addition of around
15,000m2, and the
construction of three
new swing gates for
arrivals and departures
of both international
and domestic flights.

Security lead

Hill International is
to partner with URS
Corporation to provide
construction services for
the US Department of
States Foreign Affairs
Security Training Center
(FASTC) project. The
center will provide
training for law
enforcement and security
disciplines for the
protection of diplomats
and US embassies.

Trophy win

Gardiner & Theobald has


been appointed as the
lead cost consultant for
the 2022 FIFA World Cup
in Qatar, where around
US$4.9bn will be spent on
building new stadiums
and infrastructure for
the tournament. The
firm will work on several
stadiums, as well as
precincts, training camps
and ancillary facilities.

Sky garages

A high-rise development
in Singapore is thought
to be the first in the world
to offer apartments with
en-suite sky garages.
After using a biometric
scanner to recognize
the owner, an elevator
transports the residents
car into their living room.
The Hamilton Scotts
luxury buildings fourcar penthouse suites
sell for around US$24m.

Advertorial//

THE 2012
EDITION OF THE
RICS RED BOOK
FOLLOWING DISCUSSIONS WITH
THE INTERNATIONAL VALUATION
STANDARDS COUNCIL, THE NEW
EDITION OF THE RED BOOK
INCLUDES THE INTERNATIONAL
VALUATION STANDARDS (IVS)

This latest version of the Red


Book reflects the inclusion
of IVS in full within its covers
and incorporates a number of
revisions to reinforce the
principle that compliance with
the Red Book will also ensure
compliance with the IVS.
In particular, the following
revisions have been made:
The glossary has been
revised to incorporate IVS
2011 definitions.
The standards on bases of
value, terms of engagement,
inspection and reporting have
been revised to incorporate the
respective IVS requirements
together with RICS specific
requirements.
The standards on valuations for

specific applications, ie financial


statements, secured lending
and public sector, have been
reinstated and now incorporate
a summary of the relevant IVS.
A new appendix provides
detailed cross-references
between the new IVS and the
relevant Red Book standard.
There is new text to confirm
that the revised standards
apply only to valuations where
the valuation date is on or
after their effective date.
The Application of RICS
Valuation Professional
Standards in the US: Guidance
Note 1 (USGN1) assists RICS
members on the application
of the Red Book 2012 to be in
compliance with US jurisdiction.

TO ORDER YOUR NEW RED BOOK

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standards drive improved
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David Park, Chair, RICS Valuation


Standards Board: Valuation
standards are crucially about
delivery and assurance. This
latest Red Book edition ensures
that effective implementation
of the new IVS forms an integral
part of RICS members overall
service to valuation users.

Item code: 19035


Please note: all RICS standards are
available to RICS members at rics.org.

02.13 // MODUS AMERICAS

13

WHATS THE

BIG IDEA?

TEN EXPERTS SHARE THEIR PREDICTIONS ON THE INNOVATIONS SET


TO CHANGE THE PROPERTY PROFESSIONS OVER THE COMING YEARS
Compiled by Tim Abrahams Illustrations by Toby Triumph

NIGEL RIX DIRECTOR OF ELECTRONICS, ESP KTN


If you look back at the development of computers, they
began as individual units, then they moved to the home, now
the computer on your desk is an interface to the world and
through it you can get information from anywhere. We are
experiencing an equivalent revolution with the things around
us. As we embed objects with sensors and actuators, they
can be identified, tracked and their information analyzed by
computers. We are moving to the point where things exchange
information directly and can form intelligent systems.
Take traffic management, for example. If you dont know
where road blocks are, you cant manage GPS systems.
Yet, when you have this communication between objects,
the information can be provided automatically and the
potential to change society is quite dramatic.
If we look at connected systems from a city perspective,
we can address the three big challenges: how to create a
pleasant living and working environment; how to create an
efficient city; and how to make a city attractive to bring in
investment. Unlike China or Korea, we cant build brand-new
cities here in the UK we have to map new technology on to
existing building stock and adapt existing siloed management.

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Were looking at creating new technology platforms to


improve society. The Technology Strategy Board is creating
a network of institutes called Catapults, modeled on the
Fraunhofer Institutes in Germany, which bring together
universities and industry. One of these, the Future Cities
Catapult, will bring together people from a wide range of
backgrounds to study how technology and innovation
can address the challenges of future cities.
innovateuk.org

Innovation//

GARY LUCAS BUSINESS


DEVELOPMENT DIRECTOR
FOR INFRASTRUCTURE
INVESTMENTS, JOHN LAING

ROBIN LEWIS CEO, THE ROBIN REPORT


Were in the middle of a huge transitional
period in which traditional retailers are
trying to figure out how much of their
business will be through bricks and mortar
stores and how much online. Retailers
are evolving their strategies, which will
result in smaller but perhaps more
neighborhood stores that are closer
and more convenient for consumers, and
merchandise that is more closely curated to
local tastes and preferences. The assortment
of goods will also be narrower, almost turning
physical stores into showrooms where
consumers will select from samples, then
either order or buy on the spot and have the
items delivered to their homes the next day.
There is also a demographic change
occurring. In the US, the residential bubble
and perceived low cost of owning a home
created a tremendous sprawl of home
developments further out from the cities,
which drove new mall and shopping center
building. That is all now reversing, and young
families and singles are moving back to the
cities. The US market has had a surplus of
stores for at least the last half century, but as
online commerce continues to grow, the
retail real estate market is shrinking.
I predict that, eventually, online retailers
will open stores. Sales tax will no longer
be an advantage, and e-commerce players
will build databases that define consumer
preferences down to the neighborhood
level. Amazon is due to open its first store
in Seattle at the end of 2012. With 69
distribution centers worldwide, and a
data bank said to be as big as the Pentagon,
opening small showrooms can provide a
great synergy. Europe is, perhaps, not as
far into the evolution, but the model and
the dynamics between consumers and
retail distribution are the same.
therobinreport.com

Conventionally structured
infrastructure public-private
partnerships (PPPs) where
you have a long-term
concession and receive fees
over the contract term will still
be popular, but were seeing
increasing interest in new
models, most notably Local
Asset Backed Vehicles (LABVs)
or property partnerships as
they are more commonly known
particularly in the health and
accommodation sectors.
This is where a public sector
body has a property portfolio
that is no longer fit for purpose
in terms of the way it now
delivers services. To realize
value from its estate, it selects a
development partner, which will
put equity into a special purpose
vehicle. These public and private
bodies then jointly develop the
new portfolio thats needed.

John Laing is currently


midway through the
construction phase of
a project in Croydon that
includes new council offices
and a leisure center. Weve
forged a development
partnership agreement that
lasts 25 years and have jointly
created the Croydon Council
Urban Regeneration Vehicle,
in which both the council and
John Laing are shareholders.
We can prioritize different
properties first, then move on
and look at others, responding
to the market and events as we
go rather than being locked into
a predetermined set-up.
The LABV model is starting
to get more traction, and as a
result weve recently looked at
an opportunity in Rotterdam.
Most of our projects are still
concession-based PPPs for
public bodies that want a new
building on a greenfield site,
but more models are emerging
and are likely to become more
sophisticated as lessons
learned from previous
arrangements are applied.
PPP is a tool that is available
for the public sector to use, and
these models will constitute the
different ways in which they can
apply it.
ccurv.com
laing.com

02.13 // MODUS AMERICAS

15

DR MATTHEW TUCKER SENIOR LECTURER,


LIVERPOOL JOHN MOORES UNIVERSITY
You can create the most
intelligent building in the
world but it means nothing
unless its run properly. An
intelligent building may have
a fully integrated building
management system, but
someone has to understand
how it works to really benefit
from its energy saving and
sustainability potential. For
example, Ive walked around
a large conference center
with sophisticated systems
only to find that all the lights
have been left on.
Whats lacking is training
and education. A facilities
management (FM) team can
only be effective if the culture
of the business allows it to be.
The solution involves the
integration of academia with
industry. In September 2012,
we launched a new masters
program in applied facilities
management, which includes
the skills and knowledge
needed to manage intelligent
buildings. Also, this year, Ill be
undertaking an FM research
project at the Georgia Institute
of Technology in Atlanta,
focusing on the feedback loop
between service provision and
customer satisfaction. In my
view, the level of customer
service, in general, in the US
is higher than in the UK, so it
will be interesting to see what
they are doing differently and
what we can learn from that.
To take intelligent buildings
to the next level, we are

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involved in a lot of technical


innovation at Liverpool
John Moores University
through the BEST (Built
Environment and Sustainable
Technologies) Research
Institute, including smart
sensing. Were introducing
the use of real-time sensors
that can monitor the
temperature profile of a
room or whole building so
that energy usage can be
controlled, and also the
behavior of materials under
different weather and seismic
conditions. The sensors will
be the first to be used in
conjunction with the SAP
software models, and can
either be inserted directly into
bricks and building materials,
or into areas of a room to be
woken up when needed.
ljmu.ac.uk/blt

JOHN PARSONS ASSOCRICS


BUILT ENVIRONMENT EXPERT
While there are a number of different models for
changes in retail, massive mixed-use developments
are going to arrive in the coming years. The on-off
Brent Cross redevelopment a mixed retail and
business program that will cost twice as much as
Westfield Stratford City has now been fully
approved, with retail superpowers Hammerson
and Westfield locked in battle to lead the project.
So far from seeing an end to these developments,
we are going to move upwards in scale.
While e-commerce is going to have more of
an influence, this doesnt mean that retailers
wont still have big, and even bigger, outlets.
Some models, such as click and collect, provide
for customers to shop online and then pick up
their products at a local branch. Despite the
economic climate, huge shopping centers like
those built throughout the 1990s are continuing.
Taking the decision to go into the Olympic Park
shows that big players such as Westfield go bold.
It was a big commercial gamble to build and open
before the Games, but it looks to have worked.

Innovation//

MARTIN KNIGHTS GLOBAL DIRECTOR FOR


TUNNELING, HALCROW
We have seen vast improvements in tunneling recently,
such as faster advance rates, better safety, the mitigation of
ground movement, and huge efficiencies through IT. If you
put this together with the increasing density of global
megacities by the middle of the century more than 70%
of the worlds population will live in urban areas planners
need to ensure cities operate efficiently by using the fourth
dimension and locating infrastructure underground, leaving
the surface for living and working, and for green space.
Helsinki, Singapore, and Hong Kong have led the way with
masterplans for the use of urban underground space, creating
a market for underground real estate. Instead of a property
with a nice view, think of relocating to a nice geology, or a
property that benefits from a new underground rail station.
Innovative techniques to achieve underground urban
caverns are now under way, particularly in London. Sprayed
structural concrete linings to support complex underground
shapes have been around for a while, but they are finally
finding their time. Huge leaps in their application have been
developed in the past decade and will continue to improve.

CHARLES COWAP MRICS EDUCATION SPECIALIST


There is a whole range of
services that can make the
environmental management
of land more of a commercial
proposition. One of the
main areas is biodiversity
banking or the trading of
biodiversity offset credits.
The idea behind this is that if
a developer is going to have a

negative impact on a bit


of land, then there needs
to be mitigation elsewhere.
Obviously it is preferable
to avoid or reduce the
impact, but where thats
not possible, biodiversity
must be protected, enhanced,
or restored elsewhere to
compensate for the loss.

The current works at Tottenham Court Road and Bond


Street Underground stations are masterpieces of
subterranean sculpture that will become global benchmarks.
Going underground will help the future functioning of
our growing urban centers. We now need to give owners
and decision-makers the evidence that using underground
spaces is relatively risk-free, cost-effective and sustainable.
halcrow.com

Such a process requires


accurately measuring
biodiversity and applying
credits. In Victoria, Australia,
The Native Vegetation
Management: A framework for
action (2002) aims for a net
gain in native vegetation by
providing a three-step
approach for land managers
and owners to follow when
considering vegetation
clearing: avoid adverse
impacts, particularly through
vegetation clearance; if
impacts cannot be avoided,

minimize impacts by careful


planning, design and
management; and if clearing
must occur, the clearing must
be offset. The Department of
Sustainability and Environment
has developed a standard
approach for estimating the
quality of an area of vegetation,
known as habitat hectares.
This process will reduce
the residual value for
development land, but it
helps determine the costs for
developers and it introduces
an extra element of certainty.

02.13 // MODUS AMERICAS

17

Innovation//

ANNE DYE HEAD OF TECHNICAL RESEARCH,


ROYAL INSTITUTE OF BRITISH ARCHITECTS
We all know that building information modeling (BIM) is
important, but how successfully its implemented depends
on how it develops. We were concerned that BIM was
looking like it would become mainly an extension to
computer-aided design (CAD) packages, with a single
consolidated model. Obviously geometric data is vitally
important for example, to address clash detection, which
is much easier and less costly to remediate at the design
stage rather than on site but we realized that the resulting
memory-heavy models were going to create problems;
its hard enough to email CAD drawings around. In an era
where professionals are going to be wanting to focus on
the information aspect of BIM and to use huge datasets
for example, probabilistic climate data to accurately
predict thermal performance, or multiple occupant avatars
to look at how users interact with a space then the models
would become increasingly unwieldy.
There are various big data tools, such as Hadoop,
which allow vast quantities of data to be processed on a
number of machines simultaneously so that data can be
distributed and processed efficiently. So BIM tools can
become portals through which to access and use other
data. We also realized that it would be important to have
data linked semantically for example, the term piles
has one meaning in an engineering sense, but quite
another in a medical sense. Models will also need to have

18

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metadata attached to them, because of the rate at which


data changes and is updated. For example, if building
regulations are updated, the model will flag up where
the linked data has changed, allowing the design team
to check that the design still complies. Using metadata
in this way adds in a powerful quality-control process.
Indeed, you can have tools, such as those being
developed by the collaborative RegBIM project that
RIBA is involved with (led by the BRE Group), which
will be able to check aspects of compliance automatically.
We have already started the BIMGateway project with
the University of the Arts in London to show how these
concepts can be beneficial.
architecture.com

IN AN ERA WHERE PROFESSIONALS


ARE GOING TO BE WANTING TO USE
HUGE DATASETS, THE MODELS WILL
BECOME INCREASINGLY UNWIELDY

EDDIE CAPPLEMAN SALES MANAGER,


VIAMETRIS

REBECCA MOONEY FORMER PROJECT MANAGER,


RICS ENVIRONMENT AND MINERALS AND WASTE
MANAGEMENT PROFESSIONAL GROUP
One of many initial drivers
for the implementation
of the Waste Electrical
and Electronic Equipment
Directive was to address the
electronic waste generated
by obsolescence. This is a
well-known practice in the
electronics industry, where
obsolescence is built into
electronic objects so that,
after a certain time, they
stop working well and need
to be replaced. To combat
this, it is hoped that we will
move to a rental economy
for electronic items that
can periodically be returned
to the manufacturer to
install an upgrade. Similarly,
a return to a repair economy,
where we are encouraged to
fix broken items rather than
replace them, is envisioned.
Property doesnt have the
short life cycle of electronic
items, but there is still an
issue with time. In the
construction industry, the
techniques that ensure time
effectiveness in the buildings
project management do not
always consider the life cycle
of the material in the long
term. Additionalities are
often built in to ensure
deadlines are met, resulting
in material waste.
Going forward, the focus will
be on how we value things. If

we put proper values on


materials precious metals
and rare earths, for example
then economies will change.
Valuable materials that are
hugely expensive when they
are traded on the stock
market also exist in electronic
items, but are often just
thrown away because the
manpower is apparently too
costly to recover them.
Currently, the economic
benefit of environmental
goods and services is not
fully appreciated, but in time
well see proper market
systems for understanding
the value of these materials.
Developments such as the
Economics of Ecosystems
and Biodiversity, the UK
National Ecosystem
Assessment, the Natural
Environment White Paper,
and the resulting Ecosystem
Markets Task Force will
encourage these systems
to take hold. Sometimes, it
needs an initial investment
or even just some thought,
because it always makes
good economic sense. Its
just a matter of getting
materials back to producers,
adapting the waste
management systems and
placing economic value
where it should exist.
rics.org/waste

In the future, building information modeling (BIM)


will combine with other technologies. Take our
I-MMS indoor mobile mapping system, which the
user can just gently push along to scan the interior.
You can actually see a 2D map form in real time
as the scan is made. It uses SLAM (simultaneous
localization and mapping), a technology derived
from robotics and autonomous vehicles to navigate
their way in the environment. We also use LiDAR
(Light Detection and Ranging) or laser scanners,
which capture the indoor environment through
optical remote sensing technology that can
measure the distance to a target and some of its
properties by illuminating the target with light,
often using pulses from a laser. A panoramic
camera then adds color to the points. All the
information is combined to produce a 3D point
cloud, a map with a 3D coordinate system.
The future of BIM would be to integrate this
interior-scanning technology, plus 2:1 time ratio,
to compute the final result. To take it a stage further,
you could add some artificial intelligence, particularly
automatic feature recognition algorithms, to pick
out elements from the scan and exploit them. For
example, a feature that could extract extraneous
information in a shopping mall or a factory is
definitely possible.
The I-MMS already has a key role with BIM, as
the user can make quick and accurate scans at the
various key stages, but its exciting to imagine how
it could go one stage further. As the BIM market
expands, its potential is unimaginable.
viametris.fr

02.13 // MODUS AMERICAS

19

esearch by PricewaterhouseCoopers
(PwC) shows that cybercrime is on the rise.
Last year, 15% of large organizations had
their networks penetrated, with an average
of 54 significant digital assaults twice
the level in 2010. And despite investment
in anti-virus protection, attacks from viruses and
malicious software are now close to an all-time peak, says
Chris Potter, information security partner at PwC. In the
past year, an alarming two-fifths of small businesses were
infected, and the arms race between malicious software
writers and anti-virus providers shows no sign of abating.
In addition, UK businesses of all sizes appear to be under
relentless attack from hackers. Potter points out that 44%
of small businesses reportedsignificant attemptsto break
into their networks in the past year the highest level ever
recorded and 7% of small businesses were successfully
hacked, again an all-time high.The motivation for hackers
varies, and there has been increasing levels of industrial
espionage and hacktivism reported. But professionals
are most likely to be targeted by criminals, says Potter.
For Alan Calder, chief executive officer at cyber security
management firm IT Governance, the information
security threats that face people in property professions
are largely the same as those facing all companies: the
theft of valuable information, the exposure of personal
data and disruption to business, which are all a result of

vulnerable websites and networks, the increased use of


mobile media, and a dependence on insecure service
providers.Additionally, I would imagine that professionals
will, from time to time, find themselves dealing with
critical national infrastructure [assets that are essential
for the functioning of a society and economy] and here
the vulnerabilities in control software could expose
facilities to significant levels of risk, he adds.
As technology advances, the increased use of mobile
devices, such as laptops, cell phones and tablets, has also
opened up a new area of potential vulnerability largely
because they are so easy to steal. However, the simple loss
of data can be mitigated by ensuring mobile equipment is
backed up onto corporate servers regularly, explains
Anthony Taylor, who is group health and safety manager
at GVA Facilities Management and a member of the RICS
health and safety advisory group. Many people are now
using the cloud for storage and access to documentation,
but Taylor believes this needs careful consideration not
least in terms of how the data may be backed up. From a
business continuity perspective, many telephone systems
are linked to the IT servers, so if the power is lost so is
access to telephones and IT, says Taylor, who is also the
lead author of the RICS report Business continuity
management planning for business resilience.
Potter believes that the increased use of cloud
computing also leaves organizations increasingly

Under
attack

mobile devices, social media and cloud computing


have created new entrance routes for hackers.
Andrew Williams investigates how you can
protect your business against cyber threats
20

rics.org

Cybercrime

44% OF SMALL BUSINESSES


REPORTED SIGNIFICANT ATTEMPTS
TO BREAK INTO THEIR NETWORKS

dependent on the providers security systems. But, he


warns, 56% of small businesses dont carry out any checks
of their external providers security and rely instead on
contracts and contingency plans. Users are also bringing
their own smartphones and tablet computers to the office
and taking sensitive data home. And, increasingly,
companies are opening up their systems so that they can
be accessed via these mobile devices, says Potter. The
operating systems used by smartphones and tablets have
relatively immature security, which makes them
vulnerable to attack. Yet only 39% of businesses that allow
such access ensure that corporate data held on
smartphones and tablets is encrypted, he adds.
Martin Voelk, owner and director at cyber security
specialists Cyber 51, agrees that the cloud and mobile wave
has fundamentally changed the landscape. While access
to any information from any machine anywhere has
brought new opportunities, Voelk highlights the fact that
security is often neglected. Big network vendors, such as
Cisco, try to push for BYOD [bring your own device], which
can be secured through mobile VPN [virtual private
network] clients. However, small and medium-sized
businesses often neglect the need for enterprise-grade
security at the moment, he says.
For smaller companies, the threat of cyber security can
be particularly challenging, especially when there are often
only one or two employees. Potter believes that many may
struggle to ensure they have the necessary security skills
in-house, and stresses the importance of seeking out
external advice or support from security specialists. It is
also important to small companies that any security
procedures adopted dont take too much time to operate,
adds Potter.Its best to embed the security into day-to-day
processes rather than try to layer it on top. Dont wait until
you have a major security breach before you take action to
protect yourself,he warns. Taylor agrees:Dont think that
because you are a small company you wouldnt be a target
for data theft about properties and their occupants,
he says.Particularly if there are high-net-worth people or
properties on your books or in the store window!
Download Business continuity management and The role
of cloud computing RICS reports at rics.org/knowledge.

:SECURITY
ESSENTIALS
ENSURE THAT SECURITY SOFTWARE IS INSTALLED
AND THAT ITS REGULARLY UPDATED
As a first step, its vital that basic technical security
measures, such as anti-virus software and firewalls, are
in place. Its also good practice to ensure that all relevant
operating system and software patches are installed.
EDUCATE STAFF ABOUT CYBER SECURITY
All new and existing staff should be made fully aware of
the risks of IT security breaches, and the actions they
should take to reduce these risks. Basic staff security
training in dealing with issues from social engineering
and phishing through to data protection and mobile device
security is essential. Taylor says that companies should
carry out careful background checks on any employees
handling sensitive information throughout the pay range,
and establish robust sanctions for any employee who
breaks policies and procedures. With large organizations,
the management of passwords to access sensitive
information also needs to be carefully controlled,
particularly in ensuring that access is removed
from those leaving the organization, he adds.
ESTABLISH A MOBILE DEVICE SECURITY STRATEGY
Its increasingly important that firms encrypt any sensitive
data stored on mobile devices, such as laptops, smartphones,
and USB sticks. Taylor says that all surveying companies
should also run an automatic back-up of data held on
mobile devices to secure corporate servers on connection
to the system, and ensure that they are able to remotely
delete, remove, or lock any classified information that is
stored on mobile devices.
BE AWARE OF THE RISKS OF CLOUD COMPUTING
Although storing data on the cloud can bring significant
operational and financial benefits, it is important for
companies to protect themselves. According to Potter,
professionals should take steps to gain security assurances
from all third-party providers for example, through
independent audit reports or penetration tests. The
RICS report The role of cloud computing in commercial
property is also essential reading.
KEEP ONE STEP AHEAD OF THE GAME
In Potters view, professionals should regularly assess the
nature of security risks that might impact the organization,
especially those posed by changes in the business use
of technology, using security specialists as appropriate.
They should also evaluate the effectiveness of security
expenditure to make sure it is targeted at the right areas.
Voelk believes that firms should be willing to adopt frequent
changes in security procedures and try to keep themselves
abreast of the latest industry and government regulations.

02.13 // MODUS AMERICAS

21

Profile//

1o minutes with

GARY WENER

Senior advisor, CPP Investment Board


Interview by Cherry Maslen Photograph by Jesse Senko

Like most of us in the business, I never set


out to be a valuer but I have always been
fascinated by the built environment. I had just
graduated with a degree in urban planning in
Toronto, and was working as a planner in a
municipal office, when I took a counter enquiry
from an appraiser. We got talking and I found
what she did estimating the value of properties
intriguing. In jest, I asked if there were any
vacancies at her office. It just happened there
was a job available, and I badgered the owner
for the next three months until he hired me.
After that, I made the leap into the commercial
mortgage world, which was the perfect next step
in my career as I could use the skills and contacts
Id already developed in a different and exciting
part of the business. I worked for some of the
large Canadian life insurance companies on
commercial mortgages, then went back to the
valuation end, specializing in industrial real
estate. I enjoyed discovering the huge variety of
uses and processes employed in different
buildings, from simple logistics facilities to pill
manufacturing and kitty litter plants.
While working in the industrial sector, I was
asked to be the valuation point person for a
major Canadian pension adviser. The company
had just formed and was growing rapidly, so it
was a great opportunity to be exposed to every
asset class in every major market of Canada.
I have now been at the Canada Pension Plan
Investment Board (CPPIB) for just over two
years, and I look after the valuations for the real
estate assets in all the countries we operate in.
We value all of our assets in the CPPIB portfolio
every quarter, which involves running internal
models as well as reviewing and coordinating all
external valuations. When theres a lull between
quarters, I work on special research projects and
look at how we can improve the process. In the
future, my role will also include forecasting value
and value metric movements, which will feed
into our total portfolio style of investing.

22

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All of us at CPPIB are very aware that


our jobs are governed by the scalability of
what we do. The fund is projected to grow
considerably over the next 10 years and,
luckily, information systems and technology
are just beginning to turn the corner into flexible
and manageable databases. The challenge from
a market point of view depends on the microeconomics of where we invest. There seems to
be more uncertainty everywhere in raising yield
outlooks, but this is tempered by the increasing
demand for real estate as a dependable
investment class. In Canada, the real estate
industry is relatively small and I feel extremely
lucky to have had such a diverse career. Being a
member of RICS is extremely important in
Canada as real estate has become more global,
both in terms of investment flows (equity and
debt) and information flow. Credible, consistent
and highly professional advice, and critical
thinking, is ever more crucial in decisionmaking and the RICS designation is becoming
more and more important.
What I like about the job I do is the global
scope, uniqueness, data challenge and working
with so many talented people. But the best part
is seeing how the built environment has
evolved, improved and adapted throughout the
world. Technology has enabled so many
possibilities in terms of urban design and
architecture that it really takes your breath away.
cppib.ca

Being a member of RICS


is extremely important
in Canada as real estate
has become more global

Based in Toronto,
Gary Wener MRICS
manages valuations
for real estate assets
all over the world

02.13 // MODUS AMERICAS

23

The
virtual
reality

as The digital world grows exponentially, so does


the need for data centers. brendon hooper investigates

26

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assume the center could be hit by


a plane or damaged from flooding,
so its our job to find locations
with the least amount of risk.
And this can be pretty tough in
concentrated urban environments,
such as southeast England, where
there are airports, rivers, and
railway lines all around even
fireworks factories are factored in.
With the growth of IT and
telecommunication services,
social media use, and a shift to
working and collaborating in an
online virtual world, data storage
requirements are growing. The
number of large-scale data centers
in the US increased five times from
1997 to 2007, while the UK boasts
some 7.6m m2 of data-center
space according to research by
DatacenterDynamics, which expects
2.19bn (US$3.53bn) to be invested
in UK data centers this year.
Theres no rule of thumb for
site-finding, explains Jay. Mostly

its about compromise. For example,


some clients will compromise and
go nearer to an airport, if that means
being closer to a stronger power
supply. However, one thing most
will not compromise on is flood
risk, as flood damage is an almost
unacceptable risk, he says. Strong
power sources and an established
fiber optic cable network are also
vitally important. Cushman &
Wakefields Data Center Risk Index
2012 lists the US, the UK, Germany,
Iceland, and Canada as the top five
countries in which to locate a large
data center. However, emerging
data center markets, such as
Thailand and Malaysia, are on
the rise and in the top 20.
As societys need for more data
storage and processing grows, its
presenting rising opportunities
for property professionals. The
worldwide data center construction
market is already worth US$50bn
annually, a figure set to grow to

Images Google

e may not realize


it, but millions of
us are using data
centers every day.
At home, in the office,
or out and about with
a smartphone, were
becoming ever more reliant on the
highly specialized buildings that
store and process all our online
data and which help keep the
worlds economy functioning. But
figuring out where to build these
valuable properties in the first
place can be a complicated affair.
Data center clients are hugely
risk-averse, says Andrew Jay,
executive director for data centers
at CBRE London. He heads a team
of chartered surveyors at, perhaps,
the worlds largest data center
property advisory service.
Location challenges are power
supply, cable access, planning
and risk. If a center is near an
airport or a river, clients will

Data centers //

US$78bn by 2020. Meanwhile,


total global investment in data
centers has grown from around
US$86bn in 2011, to US$105bn
in 2012 a rise of 22%.
Its easy to see why the level
of investment in data centers is
growing, says David Quincey
MRICS. Service providers, such
as banks, are driving customers
to use online services to reduce
their staff costs. Businesses
are now expected to have videoconferencing facilities.
International videophone calls
are being made via Skype, and
smartphones with mobile internet,
music and video streaming are
becoming the norm. Quincey is
a chartered quantity surveyor
specializing in mechanical and
electrical (M&E) and process
systems at Aquenta Consulting
in Australia. He advises clients in
the data center market with cost,
schedule and risk management >>

:super servers
googles data centers
How many of us have our internet browser homepage set to Google? The
answer is probably in the hundreds of millions. Still only 14 years old, the
webs most dominant company has one of the worlds most frequented
websites, processing more than a billion search requests every day. Of
course, Google is now much more than a search provider it also hosts
and processes interactive online maps, books, YouTube videos, emails,
blogs, and cloud computing networks, such as its Docs service.
To cope with this exponentially growing amount of data, the company runs
more than a million servers across eight major data centers (pictured).
Located mainly in the US, the buildings range from custom-made server
farms in Iowa to a former paper mill in Finland, which uses a seawater cooling
system. Meanwhile, new data centers are being constructed in Chile, Hong
Kong, Singapore, and Taiwan. Inside, Googles employees rely on color codes
to locate different servers and to distinguish cool water pipes (blue) from
warm (red) ones, and at the vast data center in Douglas County, Georgia, the
firm even has its own branded bicycles for engineers to move around on.
Despite criticism for the amount of electricity its data centers
consume, Google insists that renewable energy powers more than
30% of its operations, and is investing millions of dollars in
renewable energy projects. Take a virtual tour of Googles data centers at
google.com/about/datacenters/inside/streetview.

02.13 // MODUS AMERICAS

27

services. The biggest challenge a


surveyor faces at the construction
stage is not to price what is shown
on the drawings, but to recognize
and allow for whats not shown,
he says. For example, a 24-hour,
seven-day continuous Integrated
Services Test during commissioning
is a common project requirement,
but this is often not specified in
the documentation.
Despite being highly specialized
buildings, data centers require a
whole range of professional
services from site acquisition
to construction, leasing, and
investment to facilities
management. Most professionals
seem to end up working in the
data center sector by accident,
simply because there are currently
only a few property firms that have
dedicated data center teams.
But once youre in the sector,
its interesting, internationally
focused, and an ideal environment
for multidisciplined individuals
who understand investment,
agency and M&E issues, says
Keith Inglis MRICS, a partner
at Cushman & Wakefields data
center advisory group. Were
definitely looking to attract these
kinds of people when someone
asks me about getting involved
in data centers, Im always pretty
excited to tell them about it.
Andrew Jay is also excited about
the burgeoning data center market.
He sees professionals working
with data centers right across the
board. They could be advising
on strategy, how to fund them,
whether to self-build or outsource,
or on total cost ownership, he says.
Then there is site-finding and
acquisition at either a newbuild site or a co-location facility
and further on, specialist M&E
designers and consultants and
project managers are needed for
the build. Data center clients rely
on previous expertise and high
standards, which are attributes
fundamental to chartered
professionals. Valuers are also
essential to the process. But as
a unique property type, with a
relatively short history, many
valuers will have had only limited
experience with data centers.
In light of this, RICS launched a

Data centers //

Data center clients rely on previous


expertise and high standards attributes
fundamental to chartered professionals
Valuation of data centres guidance
note last year to help valuers who
are instructed to provide market
value, or market rent in this
relatively new market.
Jay says their biggest clients are
financial services, internet service
providers, and telecommunications
and IT companies. But whats really
expanded the market is cloud
computing the shift to hosting
services, data, and collaboration
systems online. Of course,
anything that goes into the
cloud still has to sit somewhere,
so rather than having a smaller

data center on a company premises,


youre redistributing it elsewhere,
he explains. Many smaller
companies are now providing
cloud-computing services by
offering co-location facilities
a type of secure data center where
networking equipment space and
bandwidth are leased to retail
customers. Jay believes this is
very cost effective for the client,
and a recent DatacenterDynamics
report shows a rise in data center
outsourcing and co-location
investment from US$16bn in
2011, to US$21bn in 2012.

Ultimately, the defining challenge


for data centers is power supply
especially as most of the energy
needed still comes from burning
fossil fuels. Whats more, servercooling equipment accounts for
a significant portion of energy
consumption. One way the UK
has the potential to lead the market
over the next 10 years, says Jay, is
to ensure that more data centers
use sustainable power sources.
Powering data centers via green
energy sources, and making
them more energy efficient, is so
important. Weve seen big changes
in the past four years, and it makes
sense if you use sustainable
power and cooling systems then
not only are costs lowered, but
carbon emissions, too.
To download the RICS Valuation of
data centres guidance note, visit
rics.org/knowledge.

:clean clouds building greener data centers


Facebook Lule, Sweden

Last year, a Greenpeace report found that more


than half of the electricity supplying Facebooks
data centers was generated from coal-fired
power stations. The social network giant is now
making a step change in its energy policy with the
construction of its first data center outside of the
US. Engineering consultancy Cundall is set to
finish the second phase of the US$757m project
in Lule next year. The site was chosen for its
availability of cheaper green electricity and cold
climate, which supports free cooling systems,
says Malcolm Howe, a critical systems partner at
Cundall. Architect Genslers design will see three
30,000m2 server buildings supplied by 120MW of
energy from local hydropower sources and cooled
using a system powered by evaporating water.

NGD Europe Newport, Wales

Featuring triple-skinned walls, bomb-proof glass,


biometric entry systems and a security team of
former special forces guards, Next Generation
Data (NGD) Europes US$322m investment in the
UKs largest and greenest data center should put
many risk-aware clients minds at ease. Located
just outside of Newport, the 75,000m2 center
has enough space for 19,000 server racks for
use by IT and telecommunications companies,
such as BT and Logica, who have signed up as
the first tenants with combined contracts of
around US$32m. Unlike most data centers,our
BREEAM and ISO 14001 accredited facility is
powered by 100% renewable sources, with a
customized energy management and fresh-air
cooling system, says Nick Razey, CEO of NGD.

Tulip Telecom
Bengaluru, India

Indian companies are at the forefront of global


IT services and telecommunications, and none
more so than Tulip Telecom, which has a data
connectivity network spanning more than 2,000
locations globally. The telecoms giant teamed
up with IBM to build Asias largest, and the
worlds third largest, eco-friendly data center
an 84,000m2 facility with the capacity to house
12,000 racks, and backed up by 100MW of
power. As a large hosted data center, Tulip Data
City is multi-tenanted, which the corporation
believes will make it far more energy efficient
than smaller facilities. Designed by IBM,
the data center cost around US$200m, and
is built to meet LEED Gold certification.

02.13 // MODUS AMERICAS

29

FLEXIBLE
LEARNING
SOLUTIONS
Were good at these. Not everyone has the luxury of taking time off to study, nor the funds to do so.
Our specialist courses are designed to fit around real lives, using proven distance learning methods.
We offer Diploma, undergraduate and postgraduate courses. Degrees are awarded by the University of
Reading or the Open University and accredited by RICS, CIOB and other professional bodies.
BSc(Hons) Building Services Quantity Surveying,
Building Surveying, Construction Management,
Estate Management, Property Management and
Quantity Surveying
Diploma in Construction Practice
Diploma in Surveying Practice
BCSC Diploma in Shopping Centre Management
MBA Real Estate and Construction Management
MSc Real Estate
PGDip Adjudication

PGDip Arbitration
RICS PGDip Project Management
PGDip/MSc Conservation of the
Historic Environment
PGDip/MSc Facilities Management
PGDip/MSc Property Investment
PGDip/MSc Surveying
(Graduate Development Programme)
RICS Professional Membership
APC Adaptation Route 1

To further your career call 0800 019 9697, email courses@cem.ac.uk or visit our website.

WWW.CEM.AC.UK
BUILDING FUTURES

Ethics advice//

Is your website

BREAKING THE LAW?


By accessibility specialist Matt Williams

More than 20 years since Sir Tim Berners-Lee invented


the world wide web, you could be forgiven for thinking
that the internet is now completely ubiquitous
absolutely everywhere all the time, and fully integrated
into our lives. But this ubiquity of internet access is not
the same for everyone. The UK government Office for
Disability Issues website states that, in 2010, 58% of
disabled people lived in households with internet access
compared with 84% of non-disabled people. And for
disabled people who do have internet access, the web can
be a great leveller after all, nobody knows who you are
or anything about you, except the information you choose
to reveal. But for some, their disability might actually
preclude them from participating online.
Disabilities come in all shapes and sizes visual,
auditory, physical, speech, cognitive, and neurological.
Also, many people over the age of 40 become progressively
shortsighted, but its often not
regarded as a disability until it
becomes serious. And while
modern devices are becoming
increasingly better at helping
people with disabilities, if your
website or app clumsily ignores
the well-established best
practices for accommodating
the needs of disabled people,
you might be inadvertently
contributing to an unfair inequality in our society.
The motives for making a website fully accessible are not
just moral or financial although Tesco supermarket
attributed a 13m (US$21m) increase in annual revenue to
their web accessibility project you need to think about
your legal obligation to equality, too. If someone with a
disability cant access the information you publish on your
website, it could be seen as discrimination meaning that
you are a potential target for legal action under the Equality
Act, which came into force in 2010, replacing the Disability
Discrimination Act in England, Scotland and Wales. The
Equality Act is intended to comprehensively tackle the
discrimination faced by many disabled people, and it is
anticipatory, which means you cant wait until a disabled
person wants to use your services you need to think in
advance, and on an ongoing basis, about what disabled
people might reasonably need. The risk of legal action may
be slim, but its real. In 2012, the Royal National Institute of
Blind People took legal action founded on the 2010 Equality
Act over low-cost airline BMI Babys failure to ensure web
access for blind and partially sighted customers.

Illustration by Borja Bonaque

IF DISABLED PEOPLE
CANT ACCESS THE
INFORMATION ON YOUR
WEBSITE, IT COULD BE
SEEN AS DISCRIMINATION

AVOIDING DIGITAL EXCLUSION


The World Wide Web Consortium (W3C) has published
Web Content Accessibility Guidelines (WCAG), which are
well worth reading if you want to adapt your website to the
needs of disabled people. In particular, the WCAG
checklist is a good starting point as it covers simple
solutions, such as making sure the colors you use for
foreground and background can be seen by people with
poor eyesight, adding alt text to images so that blind
people can understand the information they contain,
and only using tables to display data, not for layout.
WCAG provides three conformance levels known as
Levels A, AA and AAA, and each level has a series of
checkpoints for accessibility, which are known as Priority
1, 2 and 3 checkpoints. Its worth noting that the policy for
UK government websites is Level AA (or Priority 2).
Web designers should be aware of WCAG, so if you are
reviewing your existing site, or commissioning a new one,
its a good idea to seek professional advice to make sure
that you meet the minimum requirements. And for those
who want to do more, consider following the British
Standards Institute code of practice on how to commission,
plan, implement and maintain accessible websites BS
8878. It can also help to engage real people including
people with a range of disabilities when you build your
website, to check whether the measures you have put in
place to make it usable and accessible actually work.
The great thing about investing time in thinking about
the needs of disabled people is that you demonstrate in
a practical way that your organization has an inclusive
approach. And by making your communications clearer,
you end up building a website thats better for everyone,
regardless of ability.
MATT WILLIAMS is managing director at Ecru, an innovative
web design agency that specializes in accessible ebusiness
solutions. ecru.co.uk

02.13 // MODUS AMERICAS

31

Software //

t
a
p
h
p
t
a or
f

n
a
s
e
r
e
th

ts
h
lig t y
h
as per
l
t f pro
n
d
ta ed
n
s
n
a
n
i
m i aml one e
o
fr tre , ph hav
s
s
to ve y pps for
r
a
su le t vital ls.
b
ta ome iona
s
c
be fes ur
o
o
pr e s n
o
r
he e c t i
l
se t h e
of t
s
be

sharing files

Name: Dropbox
FOR: iPhone, iPad, Android
Price: Free
Dropbox allows easy access and
easy sharing of photos, documents,
and videos. Anything saved to the
app is automatically synced to
connected computers, devices,
and the Dropbox website. Users
can also invite people to share a
folder in their Dropbox, making it
ideal for team projects. In fact, last
year Dropbox launched Teams,
which features administrative
controls and plenty of space for
secure workplace collaboration.
More than 50m users save around
one billion files every 48 hours,
and because Dropbox keeps a
one-month history of work, users
can undo changes and rescue
deleted files. Dropbox offers 2GB
free to start, with the option to pay
for an upgrade to a Pro account
with up to 500GB.
dropbox.com

seeing in the dark

Name: Flashlight
for: iPhone and iPad (Similar
apps available for Android)
Price: Free
This handy app by i4software turns
your device into a flashlight. And
whereas some flashlight apps
simply turn the screen white,
Flashlight uses your devices
camera flash, which is 10 times
brighter, although extended use
is a drain on the battery. Some of
the 22,000 five-star reviews show
how users have relied on the app
during power cuts caused by
tornadoes or earthquakes, but
graduate surveyor Lee Askew,
from Roche Chartered Surveyors

in the UK, finds it useful on a much


more day-to-day basis: Flashlight
is invaluable when inspecting
premises with disconnected
electricity supplies, she says.
i4software.com

Easier audits

Name: iAuditor
for: iPhone and iPad
Price: Free
iAuditor, by SafetyCulture Australia,
streamlines workplace safety
audits, pre-start checks, and
inspections. It also encourages a
collaborative environment: The
cloud-sharing facility within iAuditor
means that users can share audit
templates and checklists, says
Luke Anear, managing director of
SafetyCulture. No matter what
youre about to audit, theres a good
chance that someone has done
something similar and you can
benefit from their experience.
iAuditor has transformed the
reporting process at NCT Estate
Agents in the UK: We used to
dictate our reports, which were
then typed in-house, printed and
posted out to clients. But as the
business expanded, this became
too time-consuming, explains
senior property manager Daniel
Roskilly. iAuditor has enabled us
to create customizable report
templates with a checklist to
which you can add a drop-down
list of answers, a score, a picture
or free-flow text. We can now
record information on-site and
send a completed report as a PDF
file to our desktop via Dropbox or
email. The report is filed and
emailed direct to the client,
enabling a faster turnaround.
safetyculture.com.au/iAuditor

:have an idea?

Words by Samantha Whitaker

heres how to turn


it into an app

Understand the market and test your


idea. See what already exists, how
successful it is, and find out what people think
of your idea (ask people wholl be very honest).

Who is your audience? Understand your


intended audience and what makes them

quicker surveys

name: Kykloud
for: iPad
Price: Free demo, monthly
subscription
Co-designed by chartered surveyor
Ed Bartlett MRICS, this condition
surveying and inspection app
allows asset data to be collected
on site for instant reports. Users
can build their own survey
templates, set a condition scale,
take notes on site, and take photos
as evidence, which can be tagged
against noted defects. With the
linked-up mobile technology
service through the kykloud app,
users spend up to 60% less time
on asset data collection and
reporting, which improves
competitiveness and profitability
without compromising on
accuracy, says Bartlett. kykloud is
currently in discussions with RICS
about offering users a selection of
survey templates within the app
that are in line with RICS guidance.
kykloud.com

mapping sunlight

name: Sun Seeker


for: iPhone, iPad, Android
Price: 5.99 (US$9.70) (iPhone
and iPad); 3.79 (US$6) (Android)
The position of the sun is an
important consideration for home
buyers and renovators, which is
why Graham Dawson created Sun
Seeker, by ozPDA an app that
shows the suns path, its hour
intervals, its winter and summer
solstice paths, and rise and set
times using GPS and the devices
internal compass. This information
can then be viewed in an augmented
reality camera 3D mode, which
uses the devices camera. Users

tick. What apps do they already have?


And why would they want your app?

Define a budget. Apps can vary in


development and marketing costs from
thousands to tens of thousands of dollars.
Hold back 30-40% of your total budget for
the initial marketing push.

Find an agency to help you develop your


ideas that has a proven track record. Be
wary of companies quoting low prices like
most things, you get what you pay for.

can also see the suns path for


any day at any location, which not
only helps real estate buyers and
architects, but also gardeners
and photographers.
ozpda.com

staying safe

NAME: StaySafe
for: iPhone and iPad. Android
devices with GPS (Lite version only)
Price: Free (StaySafe Lite);
4.99 (US$8) (StaySafe Premium)
Described as the new three rings
when youre home, StaySafe
provides protection for anyone
working or traveling alone. Graham
Mills, managing director of
surveying company Technics
Group, was inspired to create the
app by his own business needs.
We have surveyors working alone
all over the country and we have a
legal responsibility to protect
them, he explains. They often go
straight to a site from home, and
spend up to eight hours there
without making contact with the
office. So I created an automated
checking-in app.
Users import details of journeys,
meetings or activities into StaySafe,
choose emergency contacts and
select how long they expect it to
take. If they fail to check in before
the specified time, StaySafe
notifies the assigned contacts via
email or SMS, sending them the
devices GPS location. There is also
a panic button, which instantly
triggers an emergency message.
StaySafe Lite can be upgraded
within the app to StaySafe
Premium (iPhone and iPad only),
which notifies five contacts and
sends detailed GPS tracking.
staysafeapp.com

Deploying your app is only the beginning.


Just submitting to the store will get you
very few downloads, if any. You must have a
strong, coherent strategy for how you will
target your audience and measure success,
including PR, social media, search engine
optimization, mobile advertising, and video.
Your app should also have its own microsite.
One Result is a digital agency that offers
innovative and commercially successful web
and mobile solutions. For more information,
visit oneresult.co.uk.

02.13 // MODUS AMERICAS

33

Model
BEHAVIOR

simulating how people move is crucial to ensure


their safe and efficient passage through buildings
and public spaces, finds Katie Puckett

uilding information modeling


(BIM) users: prepare for invasion.
Your stark if colorful worlds
are about to be flooded with
hundreds of thousands of tiny
people swarming out of pedestrian modeling
software and into the corridors, fire escapes,
and elevators of building information models.
This is the next planned step in the fastdeveloping field of people movement analysis,
an engineering discipline that uses real-world
data and computer simulations to predict how
visitors to a building or precinct will move
through that space. It originally developed
from fire safety engineering, as a tool for
testing evacuation strategies in the later
design stages to check that projects, such as
airports, railroads, and stadiums, will function
safely and efficiently. But its increasingly
being used to enhance customer experience
in shopping centers, improve circulation in
schools and high-rise towers, and to even
increase productivity in offices.
As it moves into the design mainstream,
software developers are investigating how
to integrate their dynamic models with the
fixed elements of a building within BIM.

34

rics.org

Pedestrian modeling is an
important part of stadium
design. Buro Happold carried
out people movement analysis
as part of Londons Lords
cricket ground masterplanning

Pedestrian flow//

Their users sometimes no more than dots,


sometimes an army of 3D automatons will
be able to reveal potential conflicts between
the structural and mechanical systems and
escape routes or crowd dynamics.
The importance of people movement
analysis to safety and security is well
established, and it also plays a role in counterterrorism. The UK Home Office highlighted
that building and space design should
minimize vulnerability to attack in its
Crowded Placesguidance in January.Crowded
places have always been targets for terrorists,
says Chris Phillips, former head of the National
Counter Terrorism Security Office (NaCTSO)
and founder of security consultancy
International Protect and Prepare Security
Office.People movement strategy is a big part
of security, especially where youve got crowds.
In lines, for example, people are vulnerable to
terrorist attack and crime, so one of the biggest
issues in a stadium or an airport is how to move
people through security quickly.
But people movement specialists argue that
how visitors move through any space is a
critical element of its operations, and that the
earlier its considered the better. Now a shift
is taking place, from designing buildings for
the worst-case scenario to optimizing how
they run every day. Places and buildings are
built for people, you cant lose that focus,says
Tom Pestell, senior engineer in WSPs
pedestrian modeling team. Understanding
what people need right at the start of the
process can help produce a better building.
People-flow modeling can steer assumptions

In lines, people are vulnerable to


terrorist attack and crime, so one of
the biggest issues is how to move
people through security quickly

The traces setting in Buro


Happolds SMART Move
software shows the most
common likely routes and
desire lines through a
building design

and back them up with tangible, quantitative


evidence of operational performance levels or
capacity. Its also qualitative, where we look at
the architects vision and make sure that the
masterplan is going to work, above and beyond
health and safety design codes.
The team recently worked on the
redevelopment of London Bridge train station
in the UK, to show that lining a new entrance
corridor with retail space would improve rather
than hinder circulation, justifying an important
commercial element of the program. Pestells
colleague Paul Speirs, technical director at
WSP, says that their work also reveals possible
cost savings.Were maximizing the efficiency
of the design. With security gates, for example,
we can show that you might not need five or six,
you might only need two.
As people movement becomes more
widely used, designers and clients are
seeking to know more about how buildings
will work, says Paul Clifford, principal
pedestrian modeler at Mott MacDonald. >>

02.13 // MODUS AMERICAS

35

One area thats particularly important is the


dynamic assessment of elevator provision for
those with restricted mobility. We can also
look at the efficiency of elevator systems in
underground stations and high-rise buildings.
Consultancy Space Syntax, meanwhile, has
taken it to the next level to quantify
interactions and knowledge exchange within
buildings, such as offices and research
facilities. This is crucial to productivity in a
knowledge economy, argues managing
director Tim Stonor: Weve learned that the
degree to which people exchange information
and find each other useful is related to the ease
with which they can move around the building
and meet each other. So organizations that
have a labyrinthine office environment with
cellular offices where people dont see their
colleagues for most of the day are less
productive than those organizations where
people can interact. Space Syntax carries out
extensive analysis of workplaces to
demonstrate how much interaction is taking
place, where and how it happens, and how
companies can maximize the information
exchange on which their productivity is based.

By running simulations,
pedestrian modeling teams
can identify pinch points
and lines within a design,
with areas of greatest crowd
density shown in red. Here,
software is used to assess
different room configurations
within a school. Exploring
and testing multiple design
options at this stage can
help eliminate undesirable
and unsafe congestion

A rail station at an airport rendered by Mott MacDonald using its STEPS software
to show how people will move through three-dimensional space

:Safety at sports grounds

RICS Guidance

With large concentrations of users at critical times, its no surprise that sports
grounds are a focus for people movement modelers and safety professionals. The
leading safety guide for those involved in sports venues is the fifth edition of the Guide
to Safety at Sports Grounds (the Green Guide), used at the Beijing 2008 Olympics,
London 2012 Olympics, Brazil World Cup 2014, and the Rio Olympics 2016, and
numerous stadiums built since its origins in 1973. To compliment this guide, RICS has
developed specialized guidance specifically tailored to the needs of RICS professionals
and local authority officers issuing safety certificates at sports grounds. Authored by
Rick Riding of the Sports Ground Safety Authority, the guidance helps practitioners
gain an understanding of the legislative framework by which reasonable levels of
safety can be achieved. The guidance can be downloaded at rics.org/standards.

36

rics.org

One of the selling points of people


movement analysis is that it quantifies
intangibles, such as comfort, user experience,
or human caprice, and displays the results in
a clear and accessible way. Pedestrian modelers
use an increasingly sophisticated range of
computer simulations, including industry
standard tools, such as LEGION and
MassMotion, and bespoke software packages,
such as Buro Happolds SMART Move and
Mott MacDonalds STEPS. The comfort of
individuals within spaces is quantified by
measurement systems, such as the Fruin Level
of Service, which shows crowd densities and
movements using color-coded categories.
However, while simulations are the most
tangible element, they are only the
culmination of a great deal of information
gathering and number crunching on paper, in
spreadsheets and on the street. Space Syntaxs
calculations of an offices spatial connectivity
begin with extensive interviews with staff
members and detailed surveys of their
interactions. And when consultant Movement
Strategies was working on the Olympic Park,
there was more than a year of hard graft before
they even started building the models.Youve
got to know what questions youre answering
first, explains director Simon Ancliffe.

Pedestrian
Networking/
flow//

Simulation is very helpful but its timeconsuming and expensive, and if you put
rubbish in, youll get rubbish out.
It also remains as much an art as a science.
Models can help but you have to know how
to use them, says Clifford. No model can
replace good design or the experience of a
trained transport planner or skilled operator.
Model users and auditors should always
review and agree the assumptions made,
which need to be appropriate to the building
or transport interchange and derived from
observations of existing behavior.
Open environments, such as high streets,
are far more difficult to model than closed
ones, such as stadiums, according to WSPs
Pestell. In a stadium, you know where people
are sitting, which entrance they will use, the
route they will take through the building and
the delays at various points, such as ticket
gates or security screening. We can model
these areas with a great degree of accuracy and
we can compare it with what happens in real
life.With an open environment, its a different
story. You dont know where people are
coming from or going to, or how long they are
going to pause in front of stores. Take
Londons South Bank: there are lots of
attractions and at any time of day its full of
people walking and wandering, not necessarily
to a particular destination. We have to rely on
judgement a common-sense approach
based on our experience of other projects.
There are many sources of information that
can help to build up a picture. Pedestrian
surveys can be taken at different points, or
surveys of how long people spend at certain
attractions. Restaurants can also add an

element of certainty, based on the number of


covers and the likely ebb and flow of diners
throughout the day, as can the location of
transport nodes and passenger numbers. But
everyone agrees that the greatest challenge is
the lack of available data on how different
people behave in different situations.
Walking patterns vary with age, gender,
nationality, mobility, where you are and where
youre going, who youre with, whether youre
happy or sad, and so on.
The ideal would be to attach a tracker
to every resident of a city and follow them
as they move around and thats pretty
close to what is actually possible with
GPS-enabled smartphones and Bluetooth
devices now in many peoples pockets. >>

This model was created by


Movement Strategies to
analyze crowd flow around the
London 2012 Olympic Stadium

Buro Happold modeled people


movement around the base
of the Centre Point tower for
the redevelopment at St Giles
Circus in London

:People
movement

at the Olympics
People movement consultancy
Movement Strategies was involved
in developing the masterplan and
detailed design for the Olympic Park.
This included decisions on where
venues would be located, and the
relative scale of the permanent
and temporary elements, as well
as helping to conceive how security,
operations and transport would
work during the event.
When the firm was appointed in
2006, a key challenge was predicting
the demand. We were designing six
years out, so we knew things were
going to change, says director Simon
Ancliffe. We also knew that the
second week, when the stadium
would be operating, would be busier
than the first, so we had to design the
Park so it worked at peak times but
didnt look empty with fewer people.
The first step was to work out how
many people would visit and how long
they would stay, so Ancliffe and his
team developed scenarios for how
people would explore the Park. For
example, people going to a morning
session would go there first and walk
around afterwards, whereas for an
evening session they walk around
first. The next step was to develop
comfort standards, such as space
per person and the maximum length
of lines, and then to test the design
against these parameters.
The resulting strategy ensured a
pleasant, hassle-free experience for
visitors to the Games, and also led to
significant cost savings through the
correct design and sizing of pedestrian
walkways and bridges. To explain the
importance of people movement
analysis, Ancliffe says you need to
ask instead why user experience is
important to building design: People
movement is a critical aspect of use.

02.13 // MODUS AMERICAS

37

Pedestrian flow//
At the Olympics, Ancliffe says that Bluetooth
data was used to track people moving from
nearby transport hubs into the Olympic Park,
and that this could also be done on a wider
scale, across a city. If you can compare what
you thought would happen with what did
happen, that can help you improve your
information in future.
The other leap forward will be to integrate
pedestrian models with design tools, such as
BIM. While current BIMs can flag up conflict
between the structural and mechanical
elements of buildings, Speirs would like to be
able to overlay human elements, such as fire
evacuation strategies, to identify potential
problems in the same way.We worked on the
evacuation strategy for an arena, which was
taking too long, so we had to get the architect
to change the shape of the escape corridors.
That started to eat into the plant space, so the
engineers had to reconfigure their design, too.
BIM could have picked that up.
Software could also, potentially, replicate
human reactions more realistically, says
Speirs. Sometimes we find that even though
people can be evacuated from the building
within 10 minutes, part of the escape route

The degree to which people exchange


information is related to how easily
they can move around and meet up

Q&A

DR SHRIKANT SHARMA
Associate director at Buro Happold SMART
Solutions, a software development team
that helps create cutting-edge and highly
efficient solutions through pedestrian
simulation models
WHERE DO YOU START?
The problem comes across as quite complex reading human minds,
predicting peoples behavior but the real challenge is to break it down in
the simplest possible manner to understand the key parameters and the
most important value that the client or the architect is trying to achieve.
AT WHAT STAGE OF A PROJECT DO YOU USUALLY GET INVOLVED?
Historically, pedestrian flow modeling was only considered later in the design
to test whether it would work, and it wasnt always possible to choose the
optimal solutions. But more architects are now recognizing that the sooner
they can bring in our experience, the more effective and efficient the
solutions. On one hospital, there were pretty much no drawings when we
joined, and we worked as part of a really integrated space planning team.

38

rics.org

This model of a ticket hall at the new Bond Street Crossrail station
in London, produced by WSP, shows crowd density, or levels of
service, by color-coding from blue to red

will heat up too quickly, so they might start to


faint. In the future, pedestrians within the
model might be able to react and turn back.
With real-time information-gathering and
smart building systems, this science could
also feed into the management of buildings,
identifying when crowds are forming or where
more customer service staff are needed.
This may sound a long way off, but Tim
Stonor believes almost anything is possible in
the coming decade.We still dont really know
how buildings work from a human point of
view, he says. But a lot has happened in the
past 10 years, and Im optimistic that we will
be able to move from analysis of non-human
elements into the human elements. Its harder
for people to get their heads around, but
its a much more significant dimension.

Sometimes, however, were called in if there are problems with a building


thats already finished. Weve recently been involved in reducing congestion
in a lot of new-build schools. One of the things we look at is how the school
works without a school bell, which can alleviate the majority of congestion.
WHAT SIMULATION TECHNOLOGIES DO YOU USE?
Weve developed our own software, SMART Move, which allows us to work
with the model in real time, looking at the most effective design within the
architects vision. Many commercial software tools were derived from fire
engineering to develop evacuation strategies. But if you design a building
only for an emergency, youre missing out on day-to-day movements that
are just as important from a comfort and safety point of view.
HOW IS PEOPLE MOVEMENT ANALYSIS DEVELOPING?
We need early stage design tools that enable real-time, highly visual space
planning so that decisions can be made before its too late to make
changes. And we need tools that can allow us to make more holistic
assessments, integrating elements, such as fire evacuation and
congestion, in the context of the building design. Also, we need to be able
to gather more detailed data at a city level. With smart buildings and smart
cities, and software capable of analyzing that data, well be able to make
real-time decisions on how to operate a building. BIM will be helpful in
integrating the various elements of design, and also operational design.

8400+

Rebuilding
Iraq

Following years of
conflict, Iraq is going
through a period of
huge regeneration and is actively seeking
overseas expertise. Joanne Bladd explores
the opportunities, challenges and safety
issues for firms in property professions

40

rics.org

raq is a hard sell. Decades of war,


economic sanctions and neglect
have left the Arab state with fragile
security, dilapidated infrastructure,
and crippling shortages of
everything from healthcare to
hotels. Rebuilding the country will take years
and will cost tens of billions of dollars.
They are literally building a country from
scratch, says Steven Coates, director of
Program Cost Consultancy in the UAE for
Aecom. As a member of the companys
Middle East Leadership Team, he oversees
a team of six working in Iraq. Iraq
needs everything. Without a shadow of a
doubt there are good opportunities there
for professionals.
Nine years on from the US-led invasion
that ended Saddam Husseins 24-year rule,
Iraq is again luring contractors seeking to
capitalize on the reconstruction process. In

Iraqi//
2011, foreign direct investment (FDI) into the
country grew by 40% to US$55.67bn,
according to research firm Dunia Frontier
Consultants. More than 23% of this was
funneled into the oil and gas sector, the
backbone of Iraqs economy, but residential
real estate snared the lions share of
investment. The Arab state saw US$14.5bn
worth of property deals over the 12-month
period, aimed at tackling an acute nationwide
shortage of two million housing units.Its not
just about the hydrocarbons sector. Iraq has
colossal need of infrastructure, power, and
affordable housing, says Stephen Fidler,
managing director of Exacta Consulting, who
consulted on an oilfield project in the country
between July 2010 and December 2011.
Many of these projects play directly into
the skillsets of surveying firms.
Iraqs vast oil and gas reserves are critical
for bankrolling reconstruction efforts. >>

02.13 // MODUS AMERICAS

41

Previous page: Waste gas is burned


off at a crude oil plant in Kirkuk, Iraq
Top: The future site of Iraqs new
parliament building, at present
an unfinished super-mosque
commissioned by Saddam Hussein
Above: Artists rendering of a new
town of 100,000 homes to be built
by Hanwha E&C in Besmaya, 10km
southeast of Baghdad

The country plays host to the worlds thirdlargest crude reserves and petrodollars make
up more than half of its GDP. The Arab state
has ambitious plans to pump 12m barrels a day
by 2017 putting it on a par with oil kingpin
Saudi Arabia and has invested heavily in
resuscitating its oilfields. According to MEED
Projects, Iraq is expected to plough nearly
US$37bn into oil projects in the 12-month
period from September 2012. The spin-off
demands of these programs are likely to be
significant, says Coates. They set these
oilfields up for thousands of people to come
and work on. They are effectively small towns
in the middle of Iraq, he says. Thats partly
what were involved in the planning and
then building. Some of the sites are enormous.
Iraqs increasing oil wealth is also
encouraging a fresh focus on project quality,
following the rush of the initial post-war boom.
This is creating new opportunities for property

They want the level of quality theyve seen


elsewhere. Professional bodies and companies
are at the forefront of this movement

42

rics.org

development firms with established track


records to gain footholds in the market. The
Iraqi government wants to build world-class
infrastructure and cities because its going to
be a very powerful oil nation in a matter of
years,says Coates, adding that Aecom expects
its Iraq business to grow by 100% this year.
They want the level of quality theyve seen
elsewhere. Professional bodies and companies
are at the forefront of this movement.
For some, Iraqs potential gains are curbed
by the risks of its security situation. While
the country is more stable than in the early
days of the US occupation particularly in
northern Kurdistan the threat of violence
remains. According to UK-based security
firm AKE, 1,716 explosive attacks took place
in Iraq in 2011, of which 78 were suicide
bombings. On June 13, more than 90 people
died in a wave of coordinated bomb and
shooting attacks. For companies, the check
for insuring and protecting employees can
add 10% or more to the cost of doing
business in Iraq. Add to this the time lost in
checkpoints, in traveling by arranged convoy
or during security shut-downs, and there are
plenty of reasons to be wary. During his time
in southern Iraq, Fidler became accustomed
to traveling in a convoy, with both a medic
and type-specific blood supplies on board.
He recalls hearing rocket and mortar attacks

Networking/
Iraq//

:in my experience

five professionals give us their


advice on how to survive and
thrive in challenging locations
land nearby during the nights he spent at a
US military base near the airport. The base
would use phalanx guns to take the rockets
out in mid-air, he says. The noise was
tremendous it would shake the beds.
Bureaucracy is another burden. Iraq
remains very state-centric and has struggled
to keep pace with its growing economy.
Investors complain of a backlog of projects
awaiting approval from the central
government. Political bickering has also
slowed legislative changes; a draft national oil
law designed to resolve a feud between
Baghdad and Kurdistan over oil rights has
been five years in the making. Red tape and
corruption are constant challenges for foreign
firms, and even supposedly easy tasks, such
as securing a visa, can prove a headache. The
rules are continually changing, says Fidler,
who was left unable to rotate his field staff
during an unexplained freeze on visas for six
months in 2011.Every single day, there would
be two or three serious crises to deal with.
We were learning all the time.
Companies also have to battle with patchy
electricity, battered road networks and, in
some areas, limited access to clean water. Iraq
is, by any measure, a challenge. We find a lot
of people get excited about the overall
potential of Iraq, which is absolutely there,
and rush in without fully doing their
homework, says Kyle Stelma, managing
director of Dunia Frontier Consultants.
Local knowledge really is paramount.
Business in Iraq is a long game, but Stelma
believes it is a matter of when, not if, the
country takes off. The International Monetary
Fund forecasts Iraqs economy will grow 11.1%
this year, to about US$144bn, while its
population is expected to reach 38m by 2018.
With massive oil wealth, a population bulge,
and a critical need for reconstruction, Iraq is
a land of opportunity. Experts suggest
companies that make the leap early and
establish a reputation in the country will be
poised to reap the greatest rewards.Iraq has a
guaranteed pipeline of money. As long as the
government stays stable, you have a country
that is educated, financially very powerful,
and in desperate need of development, says
Coates.This bodes well for companies able to
get an early foothold, without a doubt.
Joanne Bladd is a freelance journalist and
editor based in Dubai.

Ian Corker FRICS is a senior consultant with Orgut UK.


He has worked in countries including Gaza, Somaliland,
Rwanda, and Vietnam
Ive always had some sort of exit strategy. Gaza was
certainly the most difficult because if there was a closure
you couldnt get out at all. But everywhere else it was fairly
straightforward. Know where the airport is and how to get to it. If there is a
problem in one location, have a second exit route planned. It can be as
simple as knowing how to drive across the border. As a contract worker,
you always have a plan and an air ticket out.
Martin de Beer MRICS is the director of MNS Group.
He has operated in Nigeria, Rwanda, Sierra Leone, and
Angola, and is currently based in Swaziland
Dont bring preconceptions about the country to your role.
Each job is different and will teach you something new
humility is vital. If you are working in a known area of
corruption, always have a local fixer and, as far as possible, make it your
clients problem to get authorization. Lastly, every job presents a unique
challenge. The trick is not to give up at the first hurdle. Try again and again.
Simon Kraeter MRICS is the commercial director of
Blom UK. He has worked in countries including Dagestan,
Djibouti, and Egypt
In politically sensitive countries, be careful who you work
with, particularly if its a private company rather than the
government. Use the foreign office and the embassies in
the country, if you can, to get an understanding of the risks associated with
the region, and make sure the client is offering adequate security. The local
partner is key and its vital you know their credentials and connections and
believe in them. You have to be utterly convinced of your safety.
Mark Griffin MRICS is a senior civil engineer for Abu
Dhabi Company for Onshore Oil Operations. He has worked
in countries including South Sudan, Yemen, and Gabon
If youre with a big company the security is often good, but you
can also become a bit of a target. In South Sudan, where I was
working on a contract, the oil company represented the north,
which was seen as the enemy. Its important to have an understanding of who
youre working for, and of what they are seen to represent locally. All countries
have problems, but you have to be comfortable with the risk. Do your research,
speak to people who have worked there and then make your decision.
David Harris MRICS is team leader and chief technical
adviser for the Responsible and Innovative Land
Administration (REILA) project in Ethiopia. He has
worked in Yemen, Afghanistan, Kosovo, and Albania
Try to do some basic research about the culture and
language before you arrive just a handful of words can
make a big difference. Many of these postings are in developing countries so
be prepared to muck in, take things as they come and be patient. Dont be too
fussy about where youre going to work take the opportunities as they arise.
You have to be prepared to move around to follow the work, and small contracts
can often turn into something big. It certainly makes for a varied career.

02.13 // MODUS AMERICAS

43

Business advice//

How to implement

VIRTUAL WORKING
By HR consultant Simon Brown

TRUST BETWEEN PARTIES


IS THE MOST IMPORTANT
FOUNDATION STONE
FOR BUILDING A VIRTUAL
WORKING RELATIONSHIP

44

rics.org

Traditional employment contracts often state a normal


place of work and expected working hours. Its likely that
these will need to be amended for virtual workers whose
working patterns are often more flexible and a new
policy established and clearly communicated.
Consider the implications and risks of the virtual worker
not being in the office, for example, to meet a new client
or colleague. Usually, if a face-to-face meeting is arranged
early on, the working relationship can be established and
maintained virtually. Unfortunately, however, out of sight
can still mean out of mind, so the occasional day in the
office to catch up can help to keep the virtual worker on
the radar screen with both clients and colleagues.
Since the focus will shift from hours spent at the desk
to outputs as the main measure of performance, frequent
assessments will be required to assess the performance
of the individual virtual worker. This may include
customer satisfaction surveys of clients and 360-degree
feedback from others in the company.
If the conditions are right, and the critical foundation
of trust in the psychological contract of employment
between the manager and the individual in their team is
solid, virtual working has the potential to revolutionize
our work styles and lifestyles.
SIMON BROWN is a managing consultant at Simon Brown
Associates, which offers practical advice to companies who
are looking to maximize the effectiveness of their workforce.
simonbrownassociates.com.

Illustration by Borja Bonaque

For those who can focus on individual assignments, or


who can communicate effectively with others by
telephone, video conferencing, and email, a virtual
working contract can make a lot of sense for both the
employer and the employee. Property professionals often
fall into this category as, although office-based, they can
spend a great deal of time out meeting clients and
inspecting properties or sites. But before implementing
virtual working, there are several factors to consider.
Trust is the most important foundation stone for
building a virtual working relationship between manager
and direct report. The ability to work independently,
without regular supervision, is a key selection attribute
for a virtual worker, but it also requires the manager
to relax a bit on checking up on the detail. They must
also be prepared to manage
by objectives and outputs
achieved, rather than micromanage each step of the process.
Trust is built by ensuring the
role and responsibilities are
fully understood by both
parties, and by agreeing to
frequent telephone meetings
to brief in new work, and report
back on progress and work completed.
To enable effective virtual working, a certain amount
of technology and resources are necessary. Laptops,
smartphones, messaging applications, and web cameras
for video conferencing help ensure easy and rapid
communication with colleagues, and are relatively easy
to use and inexpensive to install. Skype, for example, is
a free app designed for multiple devices that allows
users to call, video call, and instant message each other
for free over 3G and wifi, as well as transfer files and set
up screen-sharing for virtual presentations. It may also
be useful to enable access to a shared server or use an
online file-sharing portal, such as Dropbox, MediaFire,
4Shared, and FilesTube.
Check company policy, including Health and Safety at
Work obligations, as these guidelines apply to workers
at home as well as in the office work environment. The
shared duty of care regarding the work environment and
hazard prevention also apply, so a checklist for a new
virtual worker that is signed by both parties could be a
good idea. The employer is responsible for the
maintenence of any electrical equipment provided, so
this will need to be checked and tested regularly.

Information
:rics news :events :benefits :resources

6 th

Brazils economy is the


worlds sixth largest and
is expected to become
fifth by the end of
2012

Image Getty

mission to Brazil
In September, RICS Chief Executive Sean Tompkins
accompanied UK Prime Minister David Cameron on a
UKTI trade mission to Brazil as part of a delegation of
30 business leaders covering infrastructure, energy,
education, science, and sport. Every opportunity was
taken to showcase the advances made by RICS firms
and members, and to build greater international
business and education links between Brazil and the
UK. Tompkins commented: Without doubt, this visit
demonstrates that we are really achieving our vision
to gain market recognition for our standards.
rics.org/newsroom

In a competitive
arena, the
excellence of
RICS relative to
its peers needs
to be recognized
to secure its
position going
forward

Chris Bailey FRICS, Chair, RICS


Americas Construction Council

RICS americas
+1 212 847 7400
General inquiries
Membership
Subscriptions
Events
Training
Regulation helpline
+44 (0)20 7695 1670
confidential helpline
+44 (0)20 7334 3867
Dispute Resolution
Services
+44 (0)20 7334 3806
switchboard
+44 (0)20 7222 7000

02.13 // MODUS
01.11 AMERICAS
// MODUS

09
45

RICS news//

New IVSC Chairman-Elect


Sir David Tweedie has been announced as
Chairman-Elect of the International Valuation
Standards Council (IVSC) Board of Trustees.
Sir David led the International Accounting
Standards Board through a period of
unprecedented success. We are confident

that with his leadership and experience, it


wont be long before the profession unites
behind International Valuation Standards,
said RICS Director of Professional Standards
Ken Creighton. He added that, Valuation
is vital to quality financial reporting the

countries that have adopted International


Financial Reporting Standards (IFRS) would
benefit from the adoption of International
Valuation Standards, and Sir David is the
perfect person to make this point.
rics.org/valuation

RICS research into energy spend across England and


Wales reports that private tenants are hit hardest by
soaring energy costs. The new report into how dwelling
typesand
andthe
lifestyle
canOwners
affect energy
expenditure
reveals
RICS
Building
and Managers
Association
that those
renting in the
private
sector
pay on average
(BOMA)
International,
have
signed
a Memorandum
of
31 more every(MoA)
year than
homeowners,
90 more
Understanding
to drive
the creationand
of International
than tenants
living in social
housing.The
Homeowners,
Property
Measurement
Standards.
two bodies who
have
are more
likely to
insulate
andofmodernise
come
together
toeffectively
support the
creation
International
facilities Measurement
in their own homes
than to
private
landlords,
Property
Standards
address
the lack of
currently seeinathe
direct
energyand
usetherefore
and
consistency
wayimpact
propertyonistheir
measured,
spend. ACurrently,
lack of incentives
for private
landlords
insulate
valued.
measurement
standards
existtonationally
theirregionally,
rental properties
update
heating
equipment
and
typicallyand
varying
from
market
to market,
is thoughtcross-border
to result in higher
bills for
their tenants.
hindering
real estate
comparison.
RICS Head ofmarket
UK Policy
Jeremy
More will
Widespread
adoption
ofBlackburn
these newsaid,
standards
needs tothe
bebuilding
done to blocks
ensurefor
private
rental property
is fit
provide
well-functioning
global
real
for purpose
andand
energy
efficient.
Its important
that the
estate
markets
will be
complementary
to International
Green Deal
effectively
addresses
this,
when tenants
are
Financial
Reporting
Standards
and
International
Valuation
struggling
with
fuel
bills and
rents.system.
Standards
twohigh
layers
shaping
theincreasing
global financial
rics.org/research
Visit
boma.org.

RICS and BOMA SIGN MOA

facts,
stats &
surveys
08
46

rics.org

+48

Occupier demand was


highest in the UAE, where
demand is rising and
available space
falling

RICS has commissioned four new research


documents to look into the issues surrounding
project management. Legal issues in project
management is a guide to which areas of
law are important, where more training is
needed and where to find relevant information.
Project management and the private finance
initiative (PFI) helps to increase awareness
of PFI, and develop project management
skills and competencies. Learning from other
industries examines the various benefits and
drawbacks of studying knowledge, experience,
and best practices of project managers in other
industries. And finally, The management of
risk yours, mine and ours identifies new and
changing risks across the life of built facilities.
Download from rics.org/projectmanagement.

-56

The situation in Vietnam


is bleak, with demand
falling and rents
expected to drop
sharply

+70

New development is
rising in markets with
strong demand,
especially in
Brazil

Illustration Oscar Bolton Green, Bernd Schifferdecker

new guidance

T
PRESIDENTS COLUMN

Decision-makers
are increasingly
realizing that our
profession touches
peoples everyday
lives like no other
Alan Collett FRICS RICS President

he Presidents life is an itinerant


one. Six months into my term, Ive
already visited four continents. The
CEO and your Vice Presidents have
visited two more. As yet, there are no plans
for RICS Antarctica, but if sufficient members
start working there, Im sure we can adapt!
Our visits are built around landmark RICS
conferences or important global and regional
events, such as MIPIM. They typically include
meetings with governments, international
organizations, central banks, and professional
bodies. Most visits are planned well ahead, but
occasionally we need the agility to respond to
unexpected opportunities for example, when
Sean Tompkins was invited at short notice to
join UK Prime Minister David Cameron on a
trade mission to Brazil. Significantly, RICS was
the only professional membership body
included in the 50-strong business delegation.
We have also become a regular on the Lord
Mayor of Londons visits program. The Lord
Mayor was a keynote speaker at our conference
in Delhi and guest of honor at an urban
regeneration roundtable we co-hosted in So
Paulo. In November alone, RICS hosted Kamal
Nath, Indias cabinet minister of urban
development, and Carrie Lam, Hong Kongs
chief secretary, at our London headquarters.

At my inauguration, in Dublin, I said that we


are professionals not because we say we are,
but because others consider us as such. The
examples above speak volumes for the level of
influence and recognition RICS is achieving in
markets across the globe, and the high esteem
we enjoy. As we extend our reach, we create
new opportunities for members. RICS
reputation is growing, and our messages are
being heard where it matters most. Decisionmakers are increasingly realizing that our
profession touches peoples everyday lives like
no other. They understand that the standards
we champion play a central role in creating the
market confidence necessary for economic
recovery. Thats why the British government,
and bodies such as the Dubai Land Department
in the UAE, Hypzert in Germany, or IBAPE in
Brazil, want to join us in developing and
embedding standards.
While every visit includes member events,
we cant reach everyone face to face hence
the value I attach to our new global website,
which is now firmly established and living
up to expectations. Its a key milestone in
improving our communication with
members and, if you havent already done so,
I urge you to update your profile so we can
tailor our communication to your needs.

So Paulos new Real Estate Management Program


In December 2012, the
Insper Institute of
Education and Research,
Brazils leading center in
education and research in
the elds of business and
economics, launched a Real

+48

Investment demand was


strongest in Canada,
which also saw high
capital value
expectations

Estate Management
program in So Paulo,
in partnership with the IE
Business School in Madrid,
Spain. The new program
takes an integrated view
of the sector and provides

-49

demand from investors


fell most acutely in
the Netherlands and
Italy (-47)

key management skills


to develop qualified
professionals to work in
one of the most dynamic
and fastest growing areas
in Brazil. The program has
been accredited by RICS

and will begin in May


2013 in So Paulo. It will
be offered in Spanish and
Portuguese by faculty
from both schools. For
more information about the
program, visit insper.edu.br.

+87

Distressed property is
continuing to rise across
the globe, particularly
in Portugal and
Greece (+76)

Highlights from the RICS


Global Commercial Property
Survey Q3 2012.
rics.org/economics

02.13 // MODUS
01.11 AMERICAS
// MODUS

09
47

RICS news//

Membership
Have you renewed?
If you still have an outstanding
membership renewal payment,
remember to make your payment
as soon as possible. The quickest
and easiest way to renew your
membership is online: simply log
on to rics.org/renew and pay your
fee by credit or debit card. You can
also renew by phone by calling the
New York office at +1 212 847 7400
(Monday-Friday 9am to 5pm ET).
Payment is accepted with Visa and
Mastercard in the US and Canada.
Payment with American Express or
by check is only accepted in the US.
The final deadline for payment
without penalty is March 31, 2013.
Your RICS membership will be at risk
if payment is not received by this date

and you will be subject to a


readmission fee if you have been
removed from membership.
Membership fees allow RICS to
invest in core activities, which ensures
recognition of our standards with
governments, employers, and
end-users of our members services
across the world. It also ensures
that we can help raise the profile
of your RICS credential and develop
membership services that support
you in your professional life.
If you have any questions about
your membership, please visit
rics.org/membershiprenewals or
email membershiprenewals@rics.org.
You can also call the RICS contact
center, which will be happy to help.

Events

For rics events bookings and inquiries


ricsamericas@rics.org // +1 212 847 7400

Caribbean
RICS Cayman
Islands Property
and Construction
Conference
February 28, Seven Mile
Beach, Cayman Islands
Join property and
construction
professionals to share
perspectives, learn about
market trends and hear
best practices.
caymanconference.
eventbrite.com
RICS and IPTI Joint
Conference: Challenges
and Recent Developments
in Valuation and
Construction

08
48

rics.org

Perspectives from the


public and private sector
May 22-23, Port of Spain,
Trinidad and Tobago
This two-day conference
blends industry experts,
panel discussions and
networking to create a
unique experience for all
attendees. For more
information, contact
regional manager Melissa
Salyk at msalyk@rics.org

INDIA
Global real estate and
infrastructure 2020:
Destination India
April 10, New Delhi
The conference discusses
and deliberates on the

macro economic and real


estate trends focusing on
the importance of
standards, skills and
technology that are
required to be successful
in todays highly
competitive and complex
global marketplace. The
conference will bring
together investors,
developers, contractors,
corporate occupiers,
economic and sector
analysts, professional
advisers and government
representatives who will
map out how to deliver
the buildings,
infrastructure and
property services that
are the bedrock of any
successful economy.
If your organization is
interested in sponsoring
the conference, download
the prospectus at rics.
org/us/training-events/
conferences-seminars

New CPD requirements

From January 1, the CPD requirements change. All RICS


members must undertake a minimum of 20 hours CPD
each calendar year. Of the 20 hours, at least 10 should
be formal learning, while the remainder may be informal.
Members should record their activity using the CPD
management system, available globally from the RICS
website. In keeping with current arrangements, members
who are affiliated with statutory or RICS schemes will
still be required to comply with any CPD obligation that is
specific to the program, which is counted as formal CPD.
What is formal CPD?
Formal CPD can be any form of structured learning that
has clear learning objectives and outcomes, such as a
professional course, structured online training, learning
that includes an assessment measure, or self-managed
learning that can be assessed by an expert third party.
You may be asked to provide supporting evidence
of any formal learning that is entered on to the CPD
management system.
What is informal CPD?
Informal CPD is any self-managed learning that is
relevant or related to your professional role. This could
include activities such as private study, on-the-job
training, attendance at informal seminars, or events
where the focus is on knowledge sharing.
Are there any activities that cannot count
towards my CPD requirements?
Yes. Any activity that does not have a clear learning
purpose, or does not relate to your role and/or specialism
cannot be considered as appropriate CPD. Activities
such as networking, social events, team meetings, or
informal planning events, and involvement on boards,
committees, or clubs that have little or no relevance to
your professional role also do not count towards your
CPD requirements.
For more information regarding the new CPD policy, visit
rics.org. To access RICS Americas training programs,
visit olaamericas.rics.org.

What is BIM?
weve heard about the benefits, but do we have a clear understanding of
what building information modeling (BIM) really is and how it works?
BIM is a new technology and a new way
of working. It also offers the capacity
to address many of the construction
industrys failings, including waste
reduction, value creation, and improved
productivity. The process of implementing
BIM moves away from using conventional
word-processing and computer-aided
design to the increased use of common
standards and product-orientated
representations. BIM changes the
emphasis: making the model the primary
tool for documentation, from which
reports can be derived, such as plans,
schedules, and bills of quantities.
However, its about much more than
simply implementing new software: its
a different way of thinking. Using BIM
requires a move away from the traditional
workflow, where all parties including
architects, surveyors, and contractors
work from separate information pools
and use different, often incompatible
software packages, to a situation where
everyone effectively works on just one
common information pool.

By constructing a 3D virtual prototype, a building or infrastructure


systems design can be simulated and assessed before its built

In essence, BIM involves building a


digital prototype of the model and
simulating it in a digital world. It
combines technology with new working
practices to improve the quality of the
delivered product, and also improve the
reliability, timeliness, and consistency
of the process. Its equally applicable to
asset and facilities management as it
is to construction. In its purest form,
BIM provides a common single and
coordinated source of structured
information to support all parties
involved in the delivery process from
design, through construction, and on to
operation. And because all parties have
access to the same data, information
loss associated with handing a project
from team to team is kept to a minimum.
A BIM model contains representations
of the actual parts and pieces that will
be used to construct a building, along
with geometry, spatial relationships,
geographic information, quantities, and
the properties of building components,
for example, the manufacturers details.
Often mistakenly referred to as 3D,
4D, or nD, BIM should not be confused
with the number of dimensions used to
represent a building. Instead, it provides

a common environment for all the


information that defines a building,
facility or asset including building
shape, costs, physical performance,
logistics, and design and construction
time. More importantly, the information
relates to the intended components
and processes, rather than to the
appearance and presentation of
documents and drawings.
However, BIM is not a panacea: it
remains just as possible to produce
a poor model as it is to produce poor
drawings, schedules, or any other form
of information. Also, without any proactive
collaborative management effort, models
may end up being structured to suit the
originator rather than prepared with all
parties in mind. Ensuring that there is an
agreed structure and exchange protocol
in place to suit all parties will improve
certainty, confidence, and consistency.
And by moving to a shared information
model environment, project failures
and cost overruns become less likely.
Recent experience indicates a trend
for large clients and government
agencies worldwide to mandate the
use of BIM, not only for delivery of the
building, but also as a tool to manage
its operation. The ability to interrogate
an intelligent model that perhaps links
to interactive guidance on the repair
and/or maintenance process, rather
than searching through outdated
manuals, has obvious advantages.
The largest single barrier to exploiting
BIM is the lack of awareness. BIM has
the potential to impact every aspect of
surveying, and presents an opportunity to
deliver new service streams and extend
our professional reach into new areas
spanning the complete asset life cycle.
BIM is not going to go away so we
must learn to adapt and embrace it,
or we risk losing ground to others.
Steve Pittard is a senior lecturer at London
South Bank University and Chairman of the
RICS QS and Construction IT Working Group.
rics.org/bim

02.13 // MODUS
01.11 AMERICAS
// MODUS

09
49

Measure//

t w Th
pr as e ye
ot en ar
ec ac t
tio te he
n d, m
of le os
pe gis t c
rs la ur
on tio re
a l n nt
da tha Da
ta t ta
in gov Pr
th er ot
e ns e c
UK t t i
he on

data security
Breaches and
identity theft

19
9
Ac 8

Illustration by Ian Dutnall

50%

58%

The percentage of breaches


investigated by Verizon and the
US Secret Service in 2009 that
were attributed to insiders

The number
of identities
exposed
worldwide from
data security
breaches overall
during 2011 was:

The percentage increase


year-on-year of the number of
data security breaches reported
by UK companies (ICO 2011)

87%
of breached
organizations did
not detect evidence
of the breach in
their log files

The total number of records containing


sensitive personal information involved in security
breaches in the US since January 2005 is:

Of the total number of identities


stolen in 2011, 93% were from the
software, IT, and healthcare sectors:

8% Healthcare

44% Computer software


41% Information technology

US$7.2m

The average
organizational
cost of a data
breach in the US
in 2010, up 7%
from US$6.8m
in 2009

US$214

The estimated cost of


a general data breach per
compromised record in the
US in 2010, up 5% from 2009

Sources: alertboot.com, indefenseofdata.com, internetnews.com, krollcybersecurity.com, trustwave.com

50

rics.org

Advertise in
Modus magazine
Americas edition
Expose your company to thousands of senior
professionals in real estate, construction, valuation
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MODUS 05.12 // RICSAMERICAS.ORG/MODUS

MODUS
10.12 //
RICS.ORG/MO

08 .1 2

//

DUS

10 .12 //
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Opportuni
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ICAS.ORG

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THE COM
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Published four times a year and


mailed to a regional audience of
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across North America, the Caribbean
and Latin America, Modus Americas
edition is the regional magazine of
the Royal Institution of Chartered
Surveyors, delivering unrivaled RICS
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OLYMPIC EFFORT Meet the developers behind the project p14


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and to download an advertising pack, email Heather Shostack, RICS Marketing
Manager at hshostack@rics.org or call +1 (646) 786-8366

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