In a variety of sectors, security can be an important issue for tenants.

By Darlene Bremer

In the hierarchy of human needs, security is one of the most important. Everyone, however, has their own definition of what makes them feel secure and safe. No matter the sector, the owners of commercial real estate properties need to determine what tenants are going to want and need and then find the right system to satisfy those requirements.

Smart Building Technologies

Corporate Office Properties Trust, Columbia, MD, owns, develops and manages suburban office properties in targeted Mid-Atlantic submarkets. "Our company focuses on using smart building technologies that can be controlled remotely," says Mike Kaiser, president of Corporate's wholly owned subsidiaries Corporate Management Services and Corporate Realty Management.

Since the company stresses overall building function when choosing its systems, security becomes a piece of the larger picture. "We choose any system based on whether it can be integrated into, and is interoperable with, the rest of the building's systems," Kaiser explains.

The basic features Corporate Office requires for its security system are the ability to monitor who is in the building and how the building is performing. "Are the doors closing and locking as required, things like that," Kaiser says. In a regular office building, a security system provides safety and controls access. In high-tech, interoperable smart buildings, the same system controls environment and is tied into all other building systems, including HVAC, lighting, elevators and life-safety systems. "People entering a smart office building use a swipe card that not only allows access, but then alerts the computer to turn lights on in the appropriate office space, turn on or off the HVAC systems, and so on," he explains.

In evaluating a system, the company first examines it in terms of how well it provides tenant comfort, billing accuracy and safety. "To attract tenants we demonstrate to them how sophisticated building systems control the cost of tenancy through cost-effective management of operating expenses." The importance to the tenant of comfort, however, cannot be underestimated. "Surveys consistently show that the number one reason tenants leave a building is because they are uncomfortable. Corporate Office Properties takes advantage of the sophistication of smart building technology to maintain specific levels of comfort as prescribed by the tenant in the lease."

The company currently relies on TAC Group, based in Malmö, Sweden. "The system's open protocol and interoperability allows all building systems to truly communicate through the same database with no interfaces required," Kaiser says. When evaluating the system, Corporate Office Properties examined its level of sophistication, its capabilities, cost and the benefits the developers and tenants receive from it.

"Tenant retention is a primary priority," Kaiser says. The company's philosophy is that providing appropriate comfort levels, both in environment and in the knowledge that the building is secure, actually makes the facility more profitable because not only do the tenants come, but they stay.

Reputation Is Important

Washington Real Estate Investment Trust (WRIT), Rockville, MD, is a diversified REIT that owns retail, office and light industrial properties in the Mid-Atlantic region, with a prime focus on the greater Washington, D.C.–Baltimore region. "In choosing a security system, the reputation of the provider is very important to us," says Ken Reed, vice president of property management. The company wants its provider to have a sophisticated system that is able to accommodate varied needs, is easy to use by both the tenants and building staff and is easy to upgrade.

"We want our security system to flawlessly monitor the building for trouble, including fire, life safety, open doors and break-ins, be self-diagnostic and easily solve tenants' card access problems," Reed says. A system that can be expanded to include new space at a reduced cost also helps the company to attract tenants. "We try first to demonstrate to the tenant, however, that the building is so secure they won't need security service for their individual offices." Other features that help WRIT attract tenants are a good access control system and generous camera placement in both the inside and outside common areas.

One of WRIT's priorities in evaluating a potential system is whether it provides a sophisticated central station for monitoring that provides adequate and timely information regarding any property with a crisis. In addition, WRIT wants the security system it chooses to allow property managers and engineering staff to monitor the system and access the cameras from the Internet. "This can be especially important when an alarm goes off in the middle of the night," Reed observes.

Tailoring to the Need

AvalonBay Communities, Inc., Alexandria, VA, is a multi-family real estate company focused on the acquisition, development, construction, reconstruction and management of high-quality apartment communities. When deciding on a security system, the company examines each site individually. For instance, some sites, because of location or competitor communities, might not require a formal electronic system.

However, one of the features in a security system considered most important by the company is a telephone-prompted directory to control access to the building or property. AvalonBay prefers more modern systems that have LED displays and that are tied directly to the resident's existing phone line. Some of the company's communities also use video cameras with a CCTV system interface so the resident or on-site managers can see who is at the gate or the door.

The company stresses, however, that it is not trying to provide or give the illusion of total security to potential residents. It does, however, want to provide residents with a system that meets or exceeds the features currently available in the marketplace. AvalonBay does not use the existence of a security system as a significant marketing tool, but rather believes that providing the system is the right thing to do.

Most of what residents in a high-quality residential community are looking for in a security system include general perimeter security, somewhat restricted access to non-residents, concierge or concierge-type services and apartment security. AvalonBay installs security systems for individual apartments that are capable of being monitored by an outside agency, but although the company does install the system, the resident has the choice to activate it or not.

One of the criteria used by the company in choosing a security system provider is that the separate systems, such as door access, cameras and monitoring, must be able to be integrated. Another criterion is the vendor's ability to provide regular service and maintenance. AvalonBay relies on the company's reputation and history to make that particular judgment on a case-by-case basis. Up-front capital costs and long-term maintenance fees are also considered in the evaluation process.

Balancing Convenience with Security

Rich Stern, senior vice president for Storage USA, Inc., Memphis, TN, observes the unique needs of the storage sector when it comes to providing security. "We provide secure space for our customers and are selling both convenience, and, most important, security," he says. In developing a facility, security is the company's foremost concern, and it chooses systems that provide punch code access gates and barrier arms, sophisticated camera surveillance systems, individual door alarms on each self-storage unit and peripheral fencing to prevent trespassing. "Perhaps our most significant security feature is a resident manager that lives on-site. The presence of this professional, along with our elaborate security system, provides customers with a safe and secure environment for their belongings."

Storage USA believes that first and foremost, a security system should leave customers with the impression that the environment is as safe as reasonably possible and that their belongings will be secure and insulated from the elements. "The system's features should be obvious and leave the customer with the impression that a great deal of effort has been taken to create a safe environment," Stern says.

Storage USA uses several security vendors, all of which customize their products to the unique specifications of the company. "Our goal is to provide our customers with what they want: convenience, professional management and a safe environment for their belongings," Stern says.

Public Storage, Inc., Glendale, CA, shares the same concerns about providing its customers with a safe environment for themselves and their belongings. "We want the security systems we choose to protect our customers' goods, act as a deterrent, provide a marketing tool and differentiate us from our competition," observes John Sambuco, senior vice president and divisional manager.

In all new developments, door alarms for individual spaces interact with the gate access system, creating another layer of security. Many locations also use video systems to monitor the property or use an infrared beam alarm system to protect the perimeter from intruders. "The needs of the individual location determines the level of security measures," says Sambuco.

In attracting tenants, the existing system determines the company's approach. The best opportunity to highlight security, however, is when a potential customer is touring the site. "The most important feature to our customers is whether the security system will protect their belongings," Sambuco says. The company doesn't use a single vendor to provide security, basing the decision instead on the needs of each location and whether the system provides a high level of security.