Summit: Using Tenant-Driven Design to Attract and Retain Employees

[ By Lee Redmond ]

Summit’s recently completed fifth phase is now going through the LEED certification process, targeting a silver rating.

About 11 years ago when Parker Properties acquired 70 acres of land in a young south Orange County, California, community known as Aliso Viejo, we knew that the location would provide the right opportunity to build a better working environment for the tenant. The team had spent years developing retail, industrial and office properties throughout Southern California. The Aliso Viejo acquisition was now the crucial component to developing a complete tenant-driven environment, something more than a single retail center or office tower. From our tenant work, it was evident that changes were evolving in the relocation and expansion decision beyond the sole discretion of the CEO to include the CFO, CIO, human resources and in many cases the employees themselves.

What were some of the factors that drove the development planning?

• Tenant interest in moving from high-rise to urban low-rise office space.
• Emphasis on locating jobs closer to where the tenant's employees lived - primarily in suburban master-planned communities.
• Emphasis on larger floor plates that encouraged more efficient use of open work spaces and convenience for employees whether through the integration of fitness, day care, restaurants and retail offerings either on-site or close to the property.

Based on initial research, a multi-use campus with phased development was planned to encompass 1.7 million square feet of space in mid- to low-rise office buildings. Pathways and outdoor work spaces as well as additional landscaping and water features were designed to encourage a beautiful working environment both inside and outside.

Today, Summit Office Campus is nearing completion with more than 1.5 million square feet of space completed and one final eight-story office building in the planning stages. The 12-building campus is located on a terraced hillside at the center of a master-planned community. Summit features pathways, outdoor work areas, extensive landscaping and numerous water features including a 40-foot high water wall. The project is home to successful companies including Pacific Life Insurance Company's Life Insurance Division, Qlogic, Lennar Homes, Buy.com, TechSpace, Bausch & Lomb and Valeant Pharmaceuticals International. The project also recently welcomed Southern California's first Renaissance ClubSport, a 174-room boutique Marriott hotel with 65,000 square feet of health club, spa and hospitality space.

In the 10-plus years it has taken to build Summit Office Campus, the team has learned a great deal. To remain true to the initial vision and belief that businesses and their employees wanted more from their real estate, we listened closely to the tenant and teamed with creative and inventive partners. It was crucial to uphold the original concept despite market cycles, new financial partners and competitive interests.

Research-Driven Planning
During the first phase of development, Parker Properties conducted a tenant demand study which would provide the information needed to confirm Summit's blueprint. With the help of HOK, CB Richard Ellis, Turelk Contractors, Gluman Engineering and PlanNet, we surveyed major Fortune 500 companies on what they expected in a facility to meet their needs; their six most important considerations; and what they expected to need in the future.

Summit’s courtyard consists of three water features including a 40-foot water wall, lush landscaping and ample seating. Areas like these were created to support creativity and the sharing of knowledge in a serene outdoor environment.

The survey provided insight into what was behind corporate planning. A fundamental driver for tenants was the attraction and retention of quality staff. The balance of information affirmed many of the trends we had been witnessing. Most respondents expected that all facilities have large floor plates, make good use of light and are safe places to work with plentiful parking. It was also discovered that tenants need low cost, highly flexible and efficient facilities, and a comfortable work environment. The site should also include amenities and retail services within a close proximity, to further validate the overall "sense of place." Major trends cited by the respondents included flexible work hours and shifts - a move toward a 24/7 environment supported by more telecommuting; expanded wireless; and space flexibility with universal planning and open space. Finally, tenants noted that in the future a location near quality employees in areas with both affordable and affluent housing would be important as well as easy access to the freeway, a proactive local government and some commitment to the environment. Even then tenants were beginning to show an increased emphasis on a sustainable environment.

Aliso Viejo was planned to balance jobs and housing and provide a diversity of low-cost to executive-style homes with a great deal of open space and a core of commercial and retail at its center. Summit's location benefited tremendously from close proximity to the community's largest retail and entertainment center, the Aliso Viejo Town Center. In addition, the young community was linked to major Orange County business and educational centers and Los Angeles and San Diego counties by a new tollway corridor. This new tollway located adjacent and along a major stretch of Summit Office Campus, provided both easy access as well as high corporate visibility.

Obtaining Key Financial Support
Working with financial partners who share in Summit's vision has been crucial to delivering the finished product and not compromising on quality or design. Over the years, questions regarding how the tenant-friendly features of the project (outdoor people spaces, pergolas, water features and interior upgrades) have factored into the development cost -- while maintaining competitive rents for the area -- have arisen.

The combination of diligent planning, budgeting and working with creative designers, architects and landscape planners, allowed the factoring of all costs into the overall budget. While the benefit of tenant-driven features cannot be directly quantified to the project, Summit has accomplished many milestones: creating a new business center; securing high-profile office tenants and on-site amenities; and a very high level of tenant retention and satisfaction.

During the course of development, Parker Properties teamed with several high-profile financial partners such as Cigna, Prudential and AEW. Currently, RREEF Alternative Investments is the common financial partner for Summit. They are the owner of a majority of the completed phases including partnership interests with Parker Properties. The fact that RREEF has become a majority owner is another key success for Summit. We believe the only way to ensure consistency for the remaining development is to have a single owner who shares a similar vision for the project.

Attracting Business - City Plays a Key Role
The forward-thinking planning of Aliso Viejo founders who recognized the need to put job centers where people lived proved beneficial early in the process. Rather than separate housing from business, the community was designed to integrate them.

However, despite the location and community amenities, Summit wasn't within one of Orange County's primary business nodes. During lease up of its earliest phases, the challenge was to educate potential tenants and brokers about the location and abundant workforce amenities as well as the tenant-driven design of Summit. Marketing and media relations that relied on tenant testimonials were an early part of effectively increasing awareness and driving marketing leads. Over time, the ability to proactively work with businesses and fast track their interest in locating to Aliso Viejo also made a major difference in the project's success. As an example, the city was able to facilitate the necessary approvals to build Pacific Life's nine-story, 245,000-square-foot office building in just 13 weeks from the time the approval application was submitted.

Serving the Tenant with Sustainable Design
Parker's philosophy was green before "green" and "sustainability" were buzz words, because when you are truly tenant-oriented, providing a healthy, sustainable environment is a natural fit.

In the initial phases, office buildings were designed to allow an ample amount of natural light and power was saved by using energy-saving overhead lights. Additionally, all of Summit's outdoor areas are focused on the heavy use of drought tolerant plants and storm water treatment including cactus gardens, water permeable pavers and reclaimed water for irrigation. The inviting feel of the outdoor areas and people spaces, which include pergolas and WiFi access, also provide employees a good reason to have lunch breaks on-campus, minimizing time spent in their cars.

The inviting feel of Summit’s outdoor areas and people spaces, which include pergolas, WiFi access and walkways, provides employees with a strong sense of place.

Over the years, Parker Properties has pledged to pursue LEED certification on all new developments and educate tenants about sustainable workplaces. Summit recently completed its fifth phase that is currently going through the LEED certification process, targeting a silver rating. RREEF is our partner in this phase and our "green" partner supporting our Silver LEED certification goal.

This phase, however, has by no means compromised on beauty and functionality. It is Summit's most aesthetically pleasing and functional product to date. The 260,000-square-foot phase includes two, four-story office buildings, a large inviting outdoor courtyard that includes three water features - one is a 40-foot high water wall - as well as a series of smaller outdoor areas that facilitate gathering spots. Some of the green features include:

• recycled water that irrigates project landscaping;
• waterless urinals;
• HVAC and refrigerant equipment with fewer harmful compounds to decrease ozone layer depletion;
• carbon dioxide monitoring systems;
• indoor air quality management plan;
• green housekeeping; and
• site maintenance programs.

Creating a Sense of Place
There is an intrinsic value in people's ideas, and an environment should support creativity and the sharing of knowledge. The workplace that supports this basic principal will be one with a "sense of place." It will be one that attracts and retains companies that share similar values and who, in turn, will attract and retain the best and brightest employees. Summit has accomplished that not only by what was built, but through the testimony of the companies who have located, expanded and thrived there.