Key aspects to assessing operational efficiency - Part 1

According to Savills Market Brief Q3/2023, office stock in Ha Noi increased 1% QoQ and 2% YoY. Since 2019, Grade A office stock increased by 4%, Grade B increased by 5% and Grade C increased by 1% each year. Customer needs have evolved, and they want properties with rents that speak to their budgets.

Some developers are lowering rents to maintain competitiveness and boost occupancy. This means there is less wiggle room, and services and resource use will need to be carefully implemented and monitored to ensure the highest possible services and business efficiency.

During the operational phase, developers must coordinate with management units to regularly analyse and assess operations, which will help them to improve resource and cost efficiency and lengthen the life of their projects. With experience operating a variety of projects, Savills Property Management teams advise on key aspects that developers should consider to accurately assess the operational efficiency of commercial projects. 

1. Facilities

From an operational perspective, the design and construction of project facilities directly influences future operational efficiency, notably the mechanical and electrical (M&E) systems. M&E systems include operational control equipment such as electrical systems, generator systems, air conditioning and ventilation systems, electrical systems, fire prevention systems and telecommunications.

Poorly designed and installed M&E systems can lead to high energy consumption and high electricity costs, problematic operations, and difficulties in calculating resource consumption. For example, electricity meters for rented areas are installed after the building has been put into operation, making it difficult to fill in monthly electricity logbooks and meaning that manual electricity allocation can be inaccurate.

Find out more: Create Long-Term Value with Design, Installation and Technical Consultancy

Besides the mechanical and electrical systems, developers need to pay attention to other elements such as:

• Project architecture: Construction structure (foundation, pillars, walls, roof, etc), interiors, and exteriors (doors, stairs, ceilings, floors, etc).
• Parking area: Areas divided for each type of vehicle, traffic diversion in the parking area, security, and safety systems (surveillance cameras, management system, etc) to ensure maximum control efficiency during peak hours.
• Division of functional rooms: Depending on the characteristics of the project, developers need to balance between maximising the area of the building and ensuring reasonable use for customers and the management team.

Learn more about Savills Consultancy packages related to design and technical systems here.

2. Security & Fire Protection and Prevention

Security

With diverse tenants and daily visitors, security and safety are top priorities in commercial project operations. Prioritising safety and security are important in protecting customers, tenants, visitors, employees, resources, and assets as well as stability and order. To assess the effectiveness of security at the project, developers can consider the following factors:

• Management of lobby floors and entrances to floors: Assigning security guards to be on duty and controlling entrances and exits with proptech features such as face ID, fingerprints, and magnetic cards.
• Parking lot and entrance basement control: Parking lot control systems optimise resource use, improve management efficiency and demonstrate professionalism.
• Elevator control: The frequency and quantity of people using elevators in commercial projects is significant, developers should consider access control during design phase to ensure optimal customer journey.
• Surveillance camera system management: Surveillance cameras are installed in all lobbies, corridors, and parking garages and can provide evidence should any issues arise.

Fire Protection and Prevention

Fire safety is essential. Issues related to fire prevention and fighting include:

Design of the fire protection system: The design must ensure the conditions for fire prevention and fighting according to the provisions of the law. They should allow for efficient action should the need for fire protection arise.

Fire protection and prevention components: This includes full firefighting equipment (fire extinguishers, suction hoses, fire hoses. etc), communication and fire command equipment (walkie-talkies, public address system, portable radios, etc), fire alarms and firefighting systems, water supply systems (fire hydrant, water tank, pump).

Periodic fire prevention and rescue drills: Periodic fire prevention and rescue drills help management teams and tenants improve their fire prevention skills, and response ability, which can help minimise damage and risk.

Read more:

• How Developers Can Ensure Fire Safety

2. Security & Fire Protection and Prevention

Security

With diverse tenants and daily visitors, security and safety are top priorities in commercial project operations. Prioritising safety and security are important in protecting customers, tenants, visitors, employees, resources, and assets as well as stability and order. To assess the effectiveness of security at the project, developers can consider the following factors:

• Management of lobby floors and entrances to floors: Assigning security guards to be on duty and controlling entrances and exits with proptech features such as face ID, fingerprints, and magnetic cards.
• Parking lot and entrance basement control: Parking lot control systems optimise resource use, improve management efficiency and demonstrate professionalism.
• Elevator control: The frequency and quantity of people using elevators in commercial projects is significant, developers should consider access control during design phase to ensure optimal customer journey.
• Surveillance camera system management: Surveillance cameras are installed in all lobbies, corridors, and parking garages and can provide evidence should any issues arise.

Fire Protection and Prevention

Fire safety is essential. Issues related to fire prevention and fighting include:

Design of the fire protection system: The design must ensure the conditions for fire prevention and fighting according to the provisions of the law. They should allow for efficient action should the need for fire protection arise.

Fire protection and prevention components: This includes full firefighting equipment (fire extinguishers, suction hoses, fire hoses. etc), communication and fire command equipment (walkie-talkies, public address system, portable radios, etc), fire alarms and firefighting systems, water supply systems (fire hydrant, water tank, pump).

Periodic fire prevention and rescue drills: Periodic fire prevention and rescue drills help management teams and tenants improve their fire prevention skills, and response ability, which can help minimise damage and risk.

Read more:

• How Developers Can Ensure Fire Safety

3. Maintenance

Maintenance is built into building management processes and is conducted periodically to ensure a building operates stably and flexibly. There are many forms of maintenance, conducted at different times. Maintenance directly impacts a building's operational efficiency. For maintenance work to be effective, technical teams must assess and understand the technical system and should plan methods and frequency accordingly. 

Read more: 

• Creating an Efficient Maintenance Plan for Apartment Buildings 
• Potential Risks in Building Maintenance Planning: A Comprehensive Checklist 

A checklist to help developers evaluate the effectiveness of their maintenance processes

• Personnel involved in planning and implementing maintenance: Depending on the complexity of the building, maintenance activities can be handled in-house or outsourced according to capacity and ability, based on compliance with regulations as well as optimising resources and ensuring the highest efficiency. Regardless of which unit performs the implementation, developers should ensure that they have the correct expertise and experience to perform the work at hand.  
• List of technical systems for maintenance: Developers must understand what infrastructure and M&E must be assessed and maintained. Items include infrastructure (foundation, pillars, walls, roof, etc) and M&E systems (electrical, HVAC, plumbing, wastewater treatment, firefighting, CCTV). Although the infrastructure systems change infrequently and have a long life, developers should evaluate the condition of long-lasting infrastructure, especially for projects over five years old. 
• Timeframe and implementation: Technical teams should create appropriate plans for maintenance work depending on the characteristics of each item, the manufacturer's instructions, and relevant legal requirements.  
• Financial planning and estimated budget: Developers should follow the legal guidelines and manufacturer's instructions to create comprehensive maintenance lists and estimate their budgets accordingly. 
• Building Maintenance Documentation: Maintain records for tracking, managing, and evaluating the maintenance progress. 

To support developers in overcoming difficulties in maintenance, we provide consultancy packages, including Design and technical system consultancy (for projects in the construction stage) and technical assessment and solutions (for projects in the operations stage). With these solutions, Savills helps developers build a detailed and effective maintenance plan. 

An effective operations management plan determines the success of a commercial project, contributing to sound occupancy and enhanced project value. As a property management consultant and agent, we help developers analyse and evaluate project performance and propose practical solutions to optimise cost-effectiveness and competitiveness. 

For tailored advice, contact Savills expert.