Operating Cost

JLL’s Global Future of Work survey has explored the evolving world of corporate real estate since 2011. This year, it analyzes the key priorities, challenges, and strategies of more than 2,300 professionals and decision-makers from around the wold. Recent insights show that companies are adopting a cautiously positive outlook in this increasingly dynamic and ambiguous environment. With plans to increase and rebalance organizational headcount in the coming years, many are ready to invest in their real estate as they expect to increase their budget and footprint.

The decreasing amount of time researchers spend in their labs is changing research facility design and space allocation, with an increased need for lab support space, a more significant reliance on core facilities, the creation of additional write-up and data analysis environments, and the purposeful inclusion of collaboration spaces.

The University of Rochester Medical Center (URMC) is partnering with Grumman|Butkus Associates on a retrocommissioning initiative that is expected to deliver significant energy savings. Spanning nearly 1.7 million sf, the project includes the evaluation of seven existing buildings to identify deficiencies and craft innovative solutions.

In March 2021, Citi CEO Jane Fraser announced a new hybrid work model requiring most Citi employees to work in the office at least three days per week. On the campus of Citi’s global operational headquarters, the recently completed renovation of a centrally located amenities building supports this initiative with a coworking environment incorporating a wider array of space types that support employees in face-to-face work during the time they spend on campus. And it’s having some unforeseen benefits, too. 

University Health Network of Toronto, Canada’s largest research healthcare system, increased space efficiency and improved employee morale by reengineering its practices and workspaces to accommodate a hybrid work model. Of the 6 million sf occupied by the network, 1 million sf was office space, 200,000 sf of which was used by people who could be hybrid workers. The transition required a concentrated change management strategy, an investment in technology, and a reconfiguration of space and the way it was managed.

Following a 2018 change in leadership at Oak Ridge National Laboratory (ORNL), the nation’s largest science and energy laboratory redefined how it views and manages its 4-million-plus-gsf space portfolio. In the shift from a landlord-tenant cost-recovery model managed by outside partners to a restructured internal space management organization, ORNL launched a wide-ranging initiative to improve utilization of existing space and increase transparency. Among the measures implemented were: creating a space authority in each of the lab’s eight research directorates; convening an annual space summit; walking down the entire space at least twice a year; and building an integrated workplace management system based on extensive data gathering. 

Thompson Rivers University (TRU) has made fighting climate change a top priority for its 250-acre campus in Kamloops, British Columbia. University leaders have committed that TRU will become a net-zero campus and be fossil fuel free by 2030. To that end, it is replacing fossil-fuel-powered heating and cooling with a new low-carbon district energy system (LCDES) that includes a combination of heat pumps powered by renewable electricity. TRU officials and others believe electrification through district energy is the most impactful way for institutions to wean themselves off fossil fuels.

The University of Kansas Medical Center faced a dilemma: how to support its growing research programs and faculty needs amid budget restrictions, aging buildings, and a backlog of deferred maintenance, all in the shadow of a decision by the university’s governing board that it would no longer fund new construction. Tasked instead with renovating existing facilities, KU Medical Center (KUMC) partnered with a facilities asset management company to assess and compile data on the condition of all infrastructure components, including everything from the air handling units, chillers, and boilers to the carpet and sprinkler system.

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) has created the Global Occupant Behavior Database, a publicly accessible resource that can provide actionable insights about how buildings are used. Compiling data collected by 39 institutions in 15 countries, the database was developed in collaboration with researchers from Syracuse University, the University of Georgia, Texas A&M University, and Technical University of Denmark.

Whether renovating an existing lab space or building a new one, conserving energy is likely to be a top priority—even more important than the return on investment. No longer a pie-in-the-sky goal, achieving net zero carbon in standard wet labs is now within reach with the right combination of measures, starting with ventilation management and moving toward electrification. Even cleanrooms, which are among the highest energy intensive laboratory types, could be next. MIT.nano, which opened in 2018 after seven years of planning and design, achieved best-in-class for energy performance, which the designers call “the first big step toward net zero” for these ultra-high-intensity facilities.

Missouri University of Science and Technology will begin construction in late summer of 2023 on a $53.4 million manufacturing innovation hub in Rolla. Designed by Perkins&Will and Mackey Mitchell Architects, the Missouri Protoplex will be the headquarters of a statewide ecosystem where experts, innovators, business owners, and educators develop new production methods and technologies.

Piramal Pharma Solutions broke ground in February of 2022 on a £45 million antibody drug conjugate (ADC) facility in Grangemouth, Scotland. Accommodating both manufacturing and aseptic fill/finish operations, the structure will provide additional capacity for the creation of targeted cancer treatments and other innovative therapies. Representing an expansion of Piramal's existing ADC campus, the project is being delivered by Merit using its FlexiPOD V4.0 platform.

AstraZeneca is planning to construct a $360 million manufacturing center in the Blanchardstown region of Dublin. Located on the Alexion Campus in College Park, the next-generation facility will leverage advanced process technologies and digital innovation solutions to produce small-molecule APIs (active pharmaceutical ingredients). Significantly reducing commercialization lead times, the sustainably designed structure will integrate lean manufacturing practices to lower operating costs and reduce carbon emissions.

The University of Southern Maine broke ground in May of 2021 on the 42,000-sf Career and Student Success Center in Portland. Designed by Elkus Manfredi Architects to foster collaboration and interaction, the three-story project will house a 4,500-sf multipurpose room, a cafe and brew pub, a 300-seat dining hall, the Career and Employment Hub, the Diversity and Multicultural Center, and numerous student lounges.

Johnson Controls International (JCI) launched OpenBlue Buildings as a Service in April of 2021. Offering a comprehensive portfolio of advanced solutions, the program allows building owners to transfer the full lifecycle risk of operations to Johnson Controls, which can include upfront capital and decision-making processes; responsibility for design, construction, and maintenance; and energy efficiency and emissions management.