1. lOCATION ANALYSIS ________________________
In what may be the first attempt at a
quality measurement in the property
sector, a consultant describes the
Real Estate Norm as a means of com-
paring locations.
When you buy a diamond, you
know exactly what you are getting
because there's a certificate with it.
But in the case of real estate, there is
no guarantee. My company, in con-
cert with Jones Lang Wootten and
Debenham Jean Thouard Zadelhoff,
looked into developing a system
that would give crystal clear insight
into the quality aspects of a real
estate project.
A good real estate manager knows
that quality and money go together.
They should be in balance. Once
you have a better insight into the
quality of real estate, it's much bet-
ter and easier to negotiate. It's much
easier to think about where to save
costs, and it's much easier to com-
municate with people about a pro-
ject.
In our strategic alliance with Jones
Lang Wootten, the leading real
estate agent in the world, we agreed
on a system that enables easier
Frans Diekstra is executive director
of Starke Diekstra, project managers
and construction cost consultants,
based on Nieuwegein, The Netherlands.
Heis aIso a ,------ -- - - ---,
lecturer in real
estate at the
University of
Amsterdam.
This article is
based on his
presentation
to the Fall
Seminar of
IDRC Europe.
20 SITE SELECTION EUROPE 12/92
How to Determine Quality
in Real Estateby Frans Diekstra
communication in standard terms
about real estate. Each company put
up about 300,000 guilders to devel-
op the system.
We called this new tooI for
appraising quality in office loca-
tions and buildings the Real Estate
Norm (REN). It can be applied to
both developed and undeveloped
properties.
Our first step was to create a sin-
gle real estate language with stan-
dard definitions that would be
understood by architects, real estate
agents, contractors and consultants.
We had to define real estate terms
as completely and unambiguously
as possible.
We agreed that the real estate
terms shouldn't be technical but
functional. We came up with five
primary aspects: functionality, com-
fort and well-being, experience and
design, safety, and continuity and
exploitation.
Figs. 1 and 2 are examples of how
the REN system can be used to com-
pare office locations and office
Fig. 1 REAL ESTATE NORM FOR OFFICES
ILIDCATION
Primary aspects Aspects Sub aspects
1 Recognition/ldentity 1 Recognition/identity
1 shops
2 Facilities/amenities
2 catering/restaurants
3 banks
4 post office
3 Accessibility by motorway I 1 accessibility by motorway
1 distance to train station
2 train Irequency
1 Functionality 4 Accessibilitiy by public transportation
3 distance to ungerground/tram station
4 underground/tram Irequency
5 distance to bus station
6 bus Irequency
5 Airport 1 airport
6 Government parking standards 1 government parking standards
lor development lor development
7 Parking
1 public parking
2 executive available parking lots
8 Expansion possibilities on the premises 1 expansion possibilities on the premises
9 Accessibility ol site by road 1 accessibility ol site by road
2 Comlort! 1 Obstruction ol view 1 obstruction ol view
Weil being 2 Relaxation/recreational lacilities during lunch time 1 relaxation/recreational lacilities during lunch
1 Status/Image ol the neighborhood 1 status/image ol the neighborhood
2 Reputation ol the other companies in the 1 price ol offices in immediate vicinity
vicinity 2 background ol other users
3 Compatibility with development town 1 compatibility with development town
3 EJl;periencel . plan/surroundings plan/surroundings
Design 4 Representativeness 1 representativeness
5 Presence ol other office buildings 1 presence ol other office buildings
6 Layout ol premises/landscaping 1 layout ol other office buildings
7 Social environment/salety 1 social environment/salety
1 Public Salety 1 public salety
4 Safety
1 Public nature ol premises
1 parking
2 public right ol way over site
5 0ontinuity/
1 Educational establishments in area 1 educational establishments in area
Exploitatlon 2 Housing possibilities lor employees and its 1 housing possibilities lor employees and its
availablity availability

2. buildings. We defined 130 points
related to quality. For example,
office workers find the view from
their windows very important for
their comfort and well-being. The
REN form allows one to indicate on
a scale of one to five how weIl the
property does in regard to this qual-
ity, or how far you can look out of
the window without seeing another
building.
The location of the building can
also be appraisecl according to the
same five primary aspects. For
example, you can define safety of
the area and nearby education
opporhmities. You can define acces-
sibility by public transport.
When we go through the building
we have all sorts of aspects that are
important for the future value of the
building, for the flexibility of a
company' in this building and for
the comfort of the people working
in this building. For example, how
are the staircases built? Are they
very narrow so that you can't carry
computers down the stairs. Can two
people pass each other on the stairs?
Or is it a straight flight with a mini-
mum width of 1.25 metres? You
can do the same evaluation with
entrance halls and lighting fixtures.
The analysis might uncover a
problem with regard to flexibility.
There may be no expansion possi-
bility, which would be a warning
for companies that are growing fast.
When you have evaluated all
aspects, then you can make a profile
of the quality of your location.
The REN form allows easy com-
parison of location. It is useful from
both an investor's and a user'spoint
of view. For the investor it can be a
check that the project will not
decline in value as much as other
buildings if there is arecession.
The appraisal form allows you to
tailor the response to your compa-
ny's needs. For example, you can
add columns that allow you to
determine how important a particu-
lar factor is to your company and
enables you to produce weighted
values.
If you add a cost component to
the form you can measure cost
Fig. 2
BI!JILIDING
Primary aspects
1 Functionality
2 Comfort!
Weil being
3 Experiencel
Design
4 Safety
5 Continuityl
Exploitation
l OCATION ANAlYSIS
REAL ESTATE NORM FOR OFFICES
Aspects Sub aspects
1 Layout 11ayout 2 access
2 Skeleton
1 structure 3 vertical dimensioning
2 static loads 4horizontaI dimensioning
3 Flexibility
1 movable partitions 3 exchangeability
2 unit size 4 reserves
1 iIIuminated signage
4 Communication 2 routing
3 sign posting
1 passenger lifts
2 stairway
5 Transport
3 secondary (emergency) stairway
4 internal transport of goods
5 external transport of goods
6 PTTIdata/electricity
1 main entrance 4 reception desk
6 Entrance/hall 2 access for disabled 5 facilities
3 hospitality 6climate
1 number of units
2 facilities
7 Sanitary equipment 3 finishing
41ayout
5 toilet for disabled
8 Working areas
1privacy
2 free height
1 catering facilities
9 Specific rooms 2 technical/mechanical room
3 remaining space
1parking
2 capacity
10 Parking facilities
3 exclusiveness
4size
- 5 maneuvering area
6 bicycles/motarcycles
1 temparature (in summer)
1 Physical comfort
2 temperature (in winter)
3 air movement
4 humidity
2 Light
1 level of daylight
2 artificiallight
1 Lt value
3 Insulation 2 Ha value
3 sun protection
1individual control
4 Psychological factors
2 view
1 purity of air
5 Hygiene 2 germs
3 statie electricity
1 outside sound proofing
6 Acoustics 2 interior sound proofing
3noise generation byIhe mechanicaI equipment
1 gross building area
2 rentable area
1Design factors 3 elevation
4 glass
5 daylight
1 wall
2 Finishing of working area 2 floor
3 ceiling
1 accentuating entrance
3 Entrance/hall
2 spatiality
31inishing
4 reception desk
1 Individual Iloar hall 1linishing
1 Entry
1 admission control (building)
2 admission control (parking)
2 Trespassing
1 looking capacity
2 alarm
1prevention
3 Fire
2 alarm
4 Inconveniences
1 lightning
2 vandalism
1 rooIing
1Choice ol material 2 elevation openings
3 elevation panels
1 interior
2 elevation
2 Maintenance
3 premisies
4 sanitary equipment
3 Spare material 1 replacement material
4 Waste disposal 1 room
12/92 SITE SELECTION EUROPE 21

3. T
CONFERENCE
PROGRAM
MONDAY, MARCH 8
MORNING
Plenary Session
Speaker:: McKinley Conway
Topic: The Significance of Global
Super Projects
LUNCHEON
Speaker:: Rupert Pennant-Rea
Topic: Global Economic Trends:
Challenges and Opportunit-
ies for Global Super Projects
AFTERNOON
Concurrent Programs
• Section A .Planning and Manag-
ing Super Projects
The immensity and complexity of
super projects creates unique project
management challenges. This work-
shop wil! provide guidelines and
case studies of the planning and
development of these massive pro-
jects.
• Section B: Singapore -
A Case Study
This session will examine Singapore
super projects and identify their
roles in defining Singapore as one of
the world's best examples of success-
ful economic development.
• Section C: Global Transportation
Links - Air and Surface Systems
New approaches to creating truly
global transportation systems that
integrate air and surface transporta-
tion are the topic of this workshop.
TUESDAY, MARCH 9
MORNING
Concurrent Programs
• Section A Project Finance and
Risk Management
A panel of experts will provide
practical adviee on two critical ele-
ments of super projects: financing
and risk management.
• Section B: Kansai - A Case Study
The Kansai region of Japan is a
world leader in the conception and
implementation of super projects.
This session wil! explain how the
more than 50 Kansai area super pro-
jects have been developed and how
they relate to the area's economic
development goals. The discussion
wil! consider the importance of pub-
!ic and private-sector partnerships
as keys to success.
• Section C: Global Super Projects
and Environmental Restoration
This session wil! be devoted to
issues surrounding the disposal of
nuclear waste and weapons, taxic
waste and the restoration of the
environment.
LUNCHEON
Topic: "Creating the Future"
AFTERNOON
Concurrent Programs
• Section A Achieving Effective
Environmental Protection
Leading environmental and eco-
nomie development experts wil! dis-
cuss how to protect and possibly
enhance the environment during
the development of super projects.
• Section B: Eastem Germany and
former East Bloc countries -
A Case Study
This session wil! consider current
and proposed super projects
designed to meet the massive infra-
structure needs of the former East
Bloc areas.
• Section C: Water and Energy
Super Projects
This session wil! discuss innova-
tive projects and proposals to meet
the growing global demands for
water and energy.
WEDNESDAY, MARCH 10
MORNING
Global Super Projects Forum
(Plenary Session)
A distinguished panel of global
strategists and super project sponsors
and implementers wil! discuss the
role of massive projecrs in global
economie development. The panel
will address the need for a process to
identify and promote the most criti-
cal super projects for improving the
quality of life around the world.
LUNCHEON
• Presentation of the 1993 Conway
Safe Skies Award
• 1993-94 Plans for the World
Development Council
AFTERNOON
Tours of Super Projects in Singapore
The Singapore Ministry of
National Development endorses the
1993 Global Super Projects
Conference.
- - - LOCATION ANALYSIS
against quality. The comparative
analysis wil! enable you to see if
you are overpaying for quality.
The form can be used to match
supply and demand. For example,
we are now working on a system
aimed at a special market for specu-
lative office buildings on behalf of
accountants and lawyers. By know-
ing the special needs and wishes of
particular groups of people devel-
opers can better design speculative
office space.
The REN system can be used for
strategie analysis, deciding which
buildings you should leave, or for
which buildings you should renego-
tiate rental values.
While the above describes a sys-
tem for offices, we are now working
to develop an REN system for ware-
houses.
The system was developed initial-
ly for use in Holland, but it can be
adapted for use in other countries.
For instanee, in Holland every
employee needs to have a window,
which isn't applicable in other
countries. 50, there are some
changes per country, but the system
can work.
We have asked people in the real
estate market to comment on the
system. About 100 consultants and
investment companies in Holland
have given their comments. The
Dutch government has subsidised
the system, and the EC has
reviewed it and has indicated it
might be a good system for defining
quality in European projects.
It wil! take at least three years
before it is European accepted. But
after it has been accepted by the EC
we will be able to certify a build-
ing's quality. There will be a signed
certificate stating the quality of the
building. This will be a good guar-
antee for both users and investors.
Note: The REN manual is avail-
abIe in both Dutch and English,
from Starke Diekstra Holding
NV, Antwoordnummer (Freepost)
2858, 3430 WB Nieuwegein, The
Netherlands or call313402 58758.
12/92 SITE SELECTION EUROPE 23