Smart Buildings and Digitalization in Commercial Real Estate

August 2, 2024

How KRP Properties achieves differentiation by focusing on sustainability and customer-first approach

KRP Properties — The largest technology-centric business park in Canada
www.krpproperties.com

An interview with Terry Young, VP Operations at KRP Properties

Terry, to start, please tell us about KRP Properties and what you do.

KRP Properties owns and manages 31 buildings that currently offer more than 3.0 million square feet of Class A and B office space, and house more than 250 companies and 13,500 employees. As Vice President, Operations, my job is to oversee how KRP manages and operates its real estate. This includes anything from managing the operations and maintenance of our Parks to driving targeted technological advancements and innovations, implementing robust cybersecurity programs for all buildings, and more.

Sustainability seems to be a big focus at KRP Properties. Is that correct?

There is a lot of talk in the property management world these days about the importance of being green, and rightly so. Commercial office buildings consume massive amounts of heat and energy and have enormous carbon footprints. However, while others are talking about sustainability, our team is actually doing something, and we have done so for years.

You can’t change what you don’t monitor. Many years ago, we started down the path of bringing our buildings online in an effort to run a better piece of real estate in terms of energy consumption and comprehensive Environmental, Social and Governance (ESG) targets. We looked at each of our buildings to determine how we could run them in the most efficient way possible from an energy reduction perspective. Utilizing Artificial Intelligence / data analytics and looking at how people move within the buildings and zones, energy reduction strategies are being automated to further drive efficiencies and reduce their carbon footprints.

Are you able to give us examples of specific sustainable practices at KRP Properties?

Of course! Under the umbrella of KRP Green, we have implemented many sustainable practices. Did you know that we have our very own tree farm to further green our campuses and protect local wildlife? Other initiatives include: Annual waste audits to ensure the target of 60% waste reduction is being met or exceeded each year, investment in variable frequency drives for hundreds of onsite pumps to reduce energy consumption, LED lighting retrofits, water meters that track data trends and send automated message alerts for wastage, monitoring all our energy burns in real time, robust recycling programs, and more.

Just recently, we received $650,000 in rebates as mechanical and electrical equipment upgrades at five of our properties met and exceeded Hydro and Energy conservation programs. These funds are being reallocated back into our properties to drive further efficiencies throughout the years to come.
What impact did COVID-19 have on your properties and your team? And what is the situation now?

During the COVID-19 pandemic, many of our tenants faced significant challenges due to lockdowns, restrictions on movement, and changes in how they interact with our buildings. Likewise we were faced with challenges in terms of our own staff and our ability to deliver the level of service our clients were used to seeing. There were quite a few things we had to understand and address:

  1. Remote Work: Many of our clients transitioned to remote work to comply with social distancing measures. This shift required adjustments in commu­nication, collaboration, and management practices. It’s not the same having a conversation over a Teams call vs in person.
  2. Financial Impact: Businesses experienced varying degrees of financial strain depending on their industry and ability to adapt.
  3. Operational Changes: We were fortunate that our building environments were already running at industry best practice in terms of HVAC and air quality, so it was quite easy for us to implement any new health and safety protocols or modify our systems as required by our clients.
  4. Employee Well-being: The pandemic affected employees’ mental health and well-being due to concerns about job security, health risks, and the challenges of remote work. We implemented the KRPMe health and wellness program, which was specifically designed to understand how we can be the best employer we can be and create an environment which promotes employee health and wellbeing.
  5. Digital Transformation: We accelerated our digital transformation efforts to enhance our online presence, digital communication channels and our building connectability.

Currently, as businesses are trying to find the new normal, many of our clients are still navigating through this post-recovery phase. Remote work remains prevalent in some sectors, while others are returning to office spaces with hybrid models. You would be naïve to think that people will be coming back to the office like they did pre-pandemic. The impact of COVID-19 has prompted lasting changes in how businesses operate, emphasizing resilience, agility, and digital readiness. The key here is that we need to better learn how to adapt to this new environment and how to pivot our operation in a timely manner so as to be best-in-class.

What about occupancy levels in the parks?

We’ve been running inventories for years to track traffic in the parks and understand the demand for office space, parking, amenities, etc. Everyone is trying to find a new norm post pandemic, and every organization’s norm is different depending on their products and services, size, maturity, and many other factors. In my opinion, having teams come together in person is an absolute must to reinforce company culture; increase productivity and knowledge sharing; support talent retention and recruitment, not to mention innovation.

In order to be innovative and be on the forefront of technology advancement, you need an environment with collaborative space and like-minded people. This can’t be done alone in your basement.

It’s like playing golf. If you play with three people that are better than you, your game is better. You shoot longer and straighter, but you don’t know why. When you are by yourself, you don’t shoot the same quality of game as if you have partners that are really good golfers. That’s true with work too! So make sure to surround yourself with smart, dynamic people, and the magic will follow!

The challenge is that some organizations and departments have difficulty benchmarking productivity, thus every organization must find their own new normal. Our job is to be the conduit for this working environment and provide space that best suits this ecosystem.

You recently announced that you will be converting an office tower into residential units. Could you tell us more about this?

It’s hot off the press! Yes, we are in the process of converting our flagship tower at 535 Legget Drive in the heart of Canada’s largest technology park from a commercial offering to a whole new upscale residential apartment complex. This will not only ease the rising housing shortage but will also align with our diversification plans, and larger strategic goals to contribute positively to the community we represent — Kanata North.

We believe this is exciting news for Kanata North and companies in the Park looking to bring employees closer to the office. Stay tuned for details…

Would you like to add anything else?

At KRP Properties we provide More Than Just Space. We see our clients as partners and we treat our employees similarly, to work together to become better. We recognize our responsibility to develop, operate, and invest in properties that minimize environmental impacts, and we are proud of our achievements to date.

To learn more visit krpproperties.com.