Technology's Role in a Real Estate Development
“Lead the Experience”
Mamduh Allam
Business Development Manager, Real Estate Practice
Agenda
Cisco’s Value Proposition to Developers
Connected Real Estate
Financial Benefits & Case Studies
Cisco Approach & Projects Q&A
2
Cisco’s Value Proposition to Developers & Owners
Trends Shaping the Future of Buildings
1. Population Growth
Doubled in 2nd half of last century; will reach 10 B in 2050
2. Infrastructure Advances
Broadband and Internet fastest growing infrastructures ever introduced
3. Transformation Of Organizations
Automated > Enabled > Networked > Networked Virtual Organizations
4. Asset Utilization
60% of Space is wasted
5. Energy Consumption & Environmental Impact “LEED”
Buildings consume 50% of world’s energy; 90% of world’s electricity
Real Estate Owners Concerns
Attracting Residents & Businesses
Creating
New Experiences
Protecting
Assets
Safety & Security
Reducing
Total Cost of Ownership
Increasing Stakeholder Value
Addressing Sustainability “LEED”
Creating Value
Owner Value
User / Tenant Value
Operator Value
••Creating Value • Human Building lifecycle
OPEX reduction
• experience
Differentiator
•for Users and Productivity
••Real Estate • Simple $ value ROI
EHSS compliance
interaction
• Efficiency
Revenue
•Owners
• • Brand attraction
Retention
• GREEN “LEED”
• Media rich
Service Oriented Building Architecture
Digital Signage
VoD
Asset Tracking
Physical security
Concierge Smart Card PMS
IPTV
Wireless Video Conferencing
Music-on-Demand Loyalty Programs Room Automation
Service Creation
Services
Service Centre
Create Correlations Between Processes to Create Services
Wireless
Wireless
Data Center
CenterSupplier Management
Facility Operations Surveillance
Data Data
Retrieval
Video
Video
Security
Security
Renovation
and Upgrades
Maintenance
Content
Management
Storage
IP
Storage
IP Communications
Communications
Lost & Found
Network Access Control
Processes
Evacuation
Guest
Management
Dynamic User
Tracking
Registrations
Intelligent
Carrier
LAN
Switching
Data Center
Video
Delivery
Security LinkSys
Digital Signage
Softswitch
Video AssociationCreate an Information Sharing Platform Between Systems
SRST
BAS
Safety
Cabling Seamless
A/V
Asset Management
Auto QoS
Intelligent
Mobility
Auto
VLAN
Energy
Management
BMS
IPT
Video
Surveillance
Systems
Traffic Routing
Storage
Firewall
Dynamic Device
VPN Access SensorsDiscovery TV
Building Controls
Data Secure
Communication
Systems Integration
Converged Network
Enhanced
CAD
Cameras
Fire
Alarm
Access Control
Industry Standard Communication Backbone
Power Management
RFID
Voice Communication
HVAC
Elevators
Devices
CiscoWorks
WiFi Networking
7
© 2007 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
Lights
Connected Real Estate
Connected Real Estate: Bldg Systems
Enhance Building Performance
Situation: Proprietary and Disparate
Services Only Relevant to FM
Non-Interoperable
Maintenance & Operational Lock-in
s e r v i c e s
Access
HVAC
Fire
Surveillance
Energy
Lighting
Elevator
Connected Real Estate: IT and Comms
Improve User Effectiveness
Situation: IP-based technologies
Open, highly interoperable
The Network is the Platform
s e r v i c e s
Media
Signage
Telephony
Internet
Wireless
Access
HVAC
Fire
Surveillance
Energy
Elevator
Lighting
One Network ‐ the 4th Utility
Solution: Building Systems move onto IP
Integration with IP Telephony
Extending the Platform
for Transformation
Gateways for Integration
s e r v i c e s
Media
Signage
Telephony
Internet
Access
Wireless
HVAC
Fire
Surveillance
Energy
Lighting
Elevator
Convergence: Introducing the 4th Utility
Gas
Electricity
Essential Utilities
Water
Internet
4th Utility
Reduce Cost and Complexity by
Replacing Disparate Networks with One
Simplified, Flexible, and Scalable IP Network
Presentation_ID
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Cisco Confidential
12
Integrated Operations Center
Integrated Operations Center
Economies of scale benefits through integrating
the Network, Security, and Facilities Operations into
ONE Integrated Operations Center
© 2007 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
Financial Benefits &
Case Studies
13
Changing the TCO
Increase Revenue
5–100 Years
Cash Flow
+ve
New business models,
managed services, intelligent
building premiums
Reuse
Maintenance
Renovation
Time
Reduce CAPEX
-ve
Simplified installation,
reduced cabling, procurement
options for building systems
Design and
Construction
Presentation_ID
Decommissioning
Reduce OPEX
Simplified management,
maintenance, operational
efficiencies, energy savings
Operations
© 2007 Cisco Systems, Inc. All rights reserved.
15
Cisco Confidential
Time to Engage Your Technology Partner
Building Systems Design
Current Entry
IT Network Design
Current Fit Out Entry
Lifecycle
cost
Building Systems & IT
Infrastructure Design
Proposed Entry
15 - 20%
Strategy
Design
80- 85%
Construction
Operation
Examples
CAPEX Cost Savings Due to Convergence
Barbizon 63
One America Plaza
The Shires
New York City
San Diego
Leicester, UK
Building mgmt system
Camera system
Electronic systems
Access controls
Card access
Integrated triple play
Video surveillance
Parking with validation
Building integration
A/V intercom
HVAC
Structure cabling
Telephony and wireless
Automation software
Interoperable systems
© 2007 Cisco Systems, Inc. All rights reserved.
17
Cisco Confidential
Examples
OPEX Cost Savings Due to Convergence
Energy
Maintenance
Operations
Fairmont Hotels
Pfizer UK
Cisco Systems
Electricity saving
Integration of:
Light
HVAC
Access
© 2007 Cisco Systems, Inc. All rights reserved.
Annual maintenance
Integration of:
CCTV over IP
Centralized control
70,000 building point
Intrusion detection
Centralized ops
Temp, leak detection
Unified control system
Monitoring
Cisco Confidential
18
Return on Investment ‐ Examples
Customizable services and experiences can be created over the connected
building and IT systems.
Connecting building systems affect OPEX and CAPEX; and pays for itself !
CAPEX SAVINGS
•
•
•
•
•
•
•
OPEX SAVINGS
s e r v i c e s
Cabling and cable pathways
Labor and equipment
Project management (design, implementation)
Consolidation of servers for the systems
Reduced training for personnel
Simplified system configuration
Wireless and Power over Ethernet
Barbizon
New York City
14%
1 America Plaza
San Diego
8.6%
The Shires
Leicester, UK
15%
•
•
•
•
•
•
•
Service contracts, additions, remodeling
Energy savings
Improved load factor, coordinate supply
Maintenance, repair and replacement
Savings related to “productivity”
Staff training, efficiency, IT support
Cable and cable pathways, MAC
Fairmont
Vancouver
Pfizer
Sandwich, UK
Cisco Systems
San Jose
energy savings
maintenance
security/surveillance
34%
15%
30%
Return on Investment (ROI) with Connected Real Estate
Energy Savings – 12%
Operational Savings – 10%
Rental Rate Increase – 4%
Occupancy Improvement – 4%
Owner Occupied Building
– Energy & Operational Savings: Simple payback 4 years, ROI 95% over 5 years
• Developer Owned Building
– Occupancy & Rental Increases: Simple payback 1.4 years, ROI 265% over 5 years
•
•
•
•
•
Source: Building Intelligence Group
Annual Operating Cost Savings of Integrated Systems
Svc Contracts, Additions, Remodeling
Energy Cost Savings
Improved Load Factor, Coordinate Supply
Maintenance, Repair and Replacement
Savings Related to “Productivity”
Staff Training, Efficiency, IT Support
Cable and Cable Pathways, MAC
32% Less
$0.16 per SF
10% Less
$0.20 per SF
$0.39 per SF
82% Less
39% Less
Adapted from: National Institute of Standards and Technology
© 2007 Cisco Systems, Inc. All rights reserved.
Cisco Confidential
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Return on Investment (ROI) with Connected Real Estate
Energy Savings – 12%
Operational Savings – 10%
Rental Rate Increase – 4%
Occupancy Improvement – 4%
Owner Occupied Building
– Energy & Operational Savings: Simple payback 4 years, ROI 95% over 5 years
• Developer Owned Building
– Occupancy & Rental Increases: Simple payback 1.4 years, ROI 265% over 5 yearsSource: Building Intelligence Group
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Site Reference in Dubai
Copyright ® 2006 The Fourth Utility, LLC
Building Systems List
¾
¾
¾
¾
¾
¾
¾
¾
¾
¾
¾
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Energy Management
HVAC & Lighting Control Systems
Fire Alarm and Protection Services
Elevators and Escalators
Plumbing Equipment
Aircraft Warning Lights
Facility Management
Building Security and Access Control
Digital Signage Systems
IP‐based Video Surveillance Systems (“IPVS”)
Communications and Collaboration tools
Systems Integration
Ballantyne Village
Tennant Menu Card
•
•
•
Cost avoidance ( $1 - $2 psf)
Operational savings ($0.50 psf)
New hard dollar revenue ($3 psf)
•
•
•
Leasing / Marketing advantages
Faster move in
Tenant value / loyalty (stickiness)
•
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Frequent media coverage
Future-minded foundation
Continuous product development
Copyright ® 2006 The Fourth Utility, LLC
Approach &
Projects
… Cisco collaborate with complex ecosystem
Advisory Services
Key Touch points
Arch /Consulting
Engineer
Client / Investor
Financial
Advisors
Arch /Consulting
Engineer
Cisco
Strategic Advisory
Property
Developer
Financial
Advisors
Cisco
Strategic Advisory
Main
Contractor
Steelwork
Contractor
CCTV
Contractor
Mechanical &
Electrical Contractor
Security
Contractor
BMS
Contractor
Ground Works
Contractor
Systems/Network
Integrator
Fire & Life
Systems
Cisco
Advanced Services
Products
The full cycle of our Engagement Framework maps to the Development’s Lifecycle
Concept Design
Schematic
Design
Tendering
/ Detail
Construction
Development Lifecycle
*Non-Cisco Offering
Launch and
Operate
Optimize
Support to Operate
Operator*
Test & Launch
Knowledge Transfer
Implementation of
Cisco components \
QA for Others
System Integrator*
LLD of 3rd Party, SI, Knowledge
Transfer, Testing, Handover
Low Level Design for
Cisco Components
Support for Tendering
Service Business Case
Network Architecture and
High Level Design
Basis of Design
Service Concept Portfolio
Business Requirements and
General Design Review
Project
Project Management
Management
Cisco Real Estate Projects
Projects To Commence
•
Knowledge Economic City – Madinah KSA
•
Prince Abdulaziz bin Musaid Economic City – Hael, KSA
•
Large Private Real Estate Developer – Jeddah KSA
•
SAGIA – Riyadh KSA
Current Projects
•
King Abdullah Economic City – Rabigh KSA
•
Al Akaria (Mall 4)
•
Dabab Towers (PPA)
•
Destiny USA - Syracuse NY USA
•
Westfield Malls – London, UK
•
JAFZA Convention Center- Dubai, UAE
•
Large Private Real Estate Developer – Dubai UAE
•
Ocean Park – Hong Kong
•
University Campus – India
Completed Projects
•
Ballantyne Village – Charlotte NC USA
•
Boston Properties – Boston, MA USA
•
Energy City Qatar – Doha Qatar
•
Citystars - Egypt
•
One America Square – San Diego, CA USA
•
Ave Maria University – Naples, FL USA
Cisco and Seera in the Saudi Press
Source: ALWATAN, January 212008
Cisco and Seera on CNNMoney.com
Source: http://money.cnn.com/news/newsfeeds/articles/marketwire/0350655.htm
Cisco and SAGIA on YAHOO!
Source: http://biz.yahoo.com/iw/080121/0350660.html
JAFZA
Requirement:
• JAFZA has assigned Cisco as its
technology consultant for the
Design, Tendering, Construction
Supervision, Testing and
Commissioning
• The intent of the customer is to deliver
a “state-of-the-art” intelligent
building
Project description:
• 3 Million Sq. Ft. Convention Centre
• 22 meeting and conference rooms,
• exhibitions halls
• 700-seat modular auditorium
• fitness centre
• recreational area
• 22 retail outlets
• twin-tower commercial building:
• 1,274 offices, a 322 – room four star hotel
• 4,100 space car park
• Located in the Jebel Ali Free Zone, Dubai, UAE
• The Real Estate framework will be
based on the IP Network as an
additional utility to water, gas and
electricity
• Jafza Convention Centre Complex
project is set to realize significant
benefits in:
• process efficiencies
• simpler operations
• higher workforce productivity
• reduced CAPEX and OPEX
• superior security
• Revenue generating services
