Sunday, December 19, 2010

By Beth Herman

The Japanese are famous for their economy of space. Who doesn’t recall the indelible “Seinfeld” episode where Kramer accommodated his Asian guests at bedtime by tucking them into large dresser drawers – and closing them. While this may be an extreme example that fired up TV ratings, for centuries, Japan, a California-sized country that supports 125 million people, has understood the profound impact of doing more with less. For D.C. and McLean, Va.-based FOX Architects, the concept of economy of space/maximizing workplace efficiency for area law firms, in light of evolving technologies and soaring real estate costs, is just the beginning of a litany of 21st century trends they must address, many propelled by progressive NY and European law firms.

With concepts such as the universal office, shared or interior associate offices, consolidated library or information spaces and flexible support areas already in play in venues such as NY, London and other points abroad, transforming the D.C. law office, firmly rooted in the "every attorney gets a windowed office paradigm,” is not a task for the shrinking violet architect. Observed FOX Architects Principal Jim Allegro, “It has taken the most challenging economy in decades for people to start thinking differently in D.C.”

Double (means less) Jeopardy

According to Allegro, in a down market a year or so ago, “…it was on everyone’s mind that if we were going to have to give back space, how would we make sure it worked within the minimum footprint?” To that end, and speaking initially at a D.C. Association of Legal Administrators meeting where he addressed return on design, the architect identified trends that have particularly taken hold in more adventurous law firm markets where associates double up and share a space, significantly reducing the firm’s footprint. “They’ll often start out that way when they build new space,” Allegro explained, “rather than it being just a growth strategy where you suddenly get invaded by a second occupant after you’ve been sitting in your office for a year.

“In some NY firms, they essentially have two attorneys facing a common work wall,” he said, with a shared work surface in between. Noting that he must frequently address the prevailing issue his law clients raise about maintaining confidentiality on conference calls and the like in shared offices, Allegro said some firms elect to handle this by providing more small meeting space where one leaves one’s office to make a call of that nature. And because the law profession is by nature collaborative with mentoring a common condition, the boon to working in a cohabited space is the opportunity to quickly share information–something limited and difficult at best if individuals are isolated.

Sanctioning Size

At the D.C. office of FOX client Reno & Cavanaugh, the firm has embraced universal office design and attorneys in shared spaces have everything they need to function including a work surface, guest chairs and overhead storage in each office. “Some of the meetings that may have occurred in partner offices are now in common, shared conference rooms,” Allegro said. “This particular office saw the value in streamlining office size, but it’s also a very egalitarian type of firm with less hierarchy compared to other firms.”

Though a “one size fits all” formula where fixed office size is assigned to both associates and partners is not a popular mindset, Allegro said, for those who understand and make it work there is increased flexibility. Based on the standard that the hiring of an associate, or the promoting of an associate to partner, traditionally precipitates the proverbial move to the corner, or larger window, office, if everybody gets the same size space personnel changes affect nothing, though occupants may differentiate their space with furniture. Reconfiguring of the perimeter is limited because everyone’s essentially in the same footprint. According to Allegro, an office like this may also be augmented by siting it next to a conference room, and a senior partner might have a door that connects his or her office directly to a corner conference room with easy access.

In terms of the prevailing D.C. windowed office issue, Allegro has produced a plan for a hypothetical 43-attorney firm, where perimeter (window) spaces include both partner and associate offices, along with a sprinkling of conference rooms. Support staff (paralegals; secretaries; law clerks) fills interior spaces at about 15 to 20 percent of the entire footprint, with the attorney/secretary ratio at 3:1, which Allegro called a fair metric today, adding that in some cases it is even 4:1.

“It used to be that you had a 1:1 or 2:1 ratio–every partner had a secretary or a couple of attorneys shared one, but those days are gone,” Allegro said, with younger associates doing much more of their own word processing and administrative tasks. With some of the interior spaces collocated with a perimeter conference room, natural light filtering through mitigates excessive use of energy draining artificial lighting so often associated with office interiors. At 700 s.f. per attorney on a 30,000 s.f. space, this represents a very efficient floor plan, Allegro concluded. If one ups the ante and increases the attorney count from 43 to 50 and reduces the number of secretaries (a market trend Allegro said has already taken hold), the attorney/secretary ratio jumps from 3:1 to approximately 6:1. At 600 s.f. per attorney, that 100 s.f. per attorney savings, seen on an annualized basis at a current $50 dollar per s.f. rental rate, can deliver a savings of $250,000 in the first year alone, adding up to $2.5 million over a 10-year lease.

Leather Bound Graveyard

In the past, Allegro noted law offices mandated significant interior space for books, periodicals, filing, records management and other paper-intensive functions. Evolving digital technology such as scanned and barcoded documents precludes the need for previously dedicated massive law libraries of the past, resulting in spaces that require on average only a fraction of their original footprint. Because lawyers as a rule no longer spend hours in libraries perusing pendulous volumes, and with databases such as Westlaw and LexisNexis readily accessible on one’s laptop, records footprints are minimized and in fact these interior spaces can become the office café, or a breakout space, where staff can get away from a desk, sit down and do some actual reading, for example. In fact Allegro has coined the term “Libr-area,” a hybrid space that merges the library function with utility space such as a café or circulation corridor. Carr Maloney PC and Feldesman Tucker Leifer Fidell LLP are two D.C. law firms and FOX clients that have effectively incorporated Libr-area into their design.

For larger law firms such as the D.C. office of Shook, Hardy & Bacon, LLP, the concept of collocating support functions such as conference rooms to create one large conference center is fairly commonplace now, Allegro said. With increased conference needs, sprinkling these rooms throughout what may be a multi-floor facility encourages separation and in effect polarizes colleagues who may never see one another, the architect explained. Channeling them into a conference hub promotes staff interaction and centralizes technical, hospitality and other accruing conference room functions for maximum efficiency.

Cutting Edge Discourse

Carrying the collaborative torch to its pinnacle where office configuration fosters frequent associate interaction, as well as partner to associate mentoring, Allegro said in many respects Europe is years ahead of the U.S. Citing the example set by pioneering global law firm Eversheds, which bills itself as “the 21st century law firm” and has won multiple awards for innovation from Dubai to Shanghai and more than two dozen countries in between, Allegro said Eversheds’ London office leads the way in the open law office concept. Attorneys sit in actual work groups, he explained, defined by furniture systems, adding that initially he and his group assumed this was done solely for economic purposes - to save real estate. “What was compelling was that their main goal was not economics, but to get attorneys talking and interacting more – to return the practice of law to a high level of collaboration and mentoring,” he said, noting that in the states, “most people would fall out of their chairs” at the mere suggestion of an open plan law firm.

Speaking to the future of U.S. legal design, and D.C. firms in particular, Allegro emphasized that characteristics such as function and flexibility are the cornerstones of maximizing workplace efficiency. “Trends withstanding, we do what we can to help the client,” he said.

Friday, December 17, 2010

This has been an exciting year in the real estate market in Tampa, Florida. The real estate market moved at a fast pace in the first half of the year when the federal government decided to extend the 2009 Homebuyer Tax Credit. Originally, the tax credit was to end on November 30, 2009. However, the 2009 First Time Home Buyer Tax Credit was extended so that those with a binding contract on or before April 30, 2010 and closing on or before June 30, 2010 would be able to take advantage of this fantastic opportunity to become a homeowner. This fueled the real estate market in a big way.


Another major force in the real estate market this year has been the abundance of REOs (bank owned) properties that were for sale on the market. These properties sold just about as quickly as they were listed. Not only did they sell quickly, but they received multiple offers which caused an interesting bidding situation for all involved parties. This resulted in a serious reduction in the housing inventory which has been important to bringing pricing stability to the real estate market.

One cannot look at the past year without mentioning the force and affect of foreign investors on our market. International investors swarmed to buy properties in Florida and across the nation. The bloated inventory of homes combined with high unemployment and a weak currency created an incredibly attractive buyer’s market for the savvy international investor. Rather than investing in the stock market, many international investors purchased property and reaped immediate financial rewards for doing so.

Several factors have been at play in the real estate market in 2010. Tax incentives for first time home buyers and move-up/repeat home buyers, record high affordability in housing prices, near record low mortgage interest rates, and an influx of foreign investors, all combined have been and will continue to be critical to the housing and overall economic recovery.

SI Real Estate has had a fantastic year in 2010 and is excited about the upcoming year and opportunities in the real estate market. Are you interested in getting a piece of the real estate action? Give us a call at (813) 631-5144 any time.
If it appears developers of the Randall School redevelopment project melted a stripper's platform shoe and molded it atop a replica of the historic Southeast school, you don't need to get your eyes checked; you're seeing correctly, as such is the earliest published rendering of Telesis's plans. Yes, it's rather gaudy, but don't hyperventilate just yet. Involved architect James Brown of Bing Thom Architects explains that the model was simply a very loose experiment to see how the massing of the structures might play out; but it was mostly "a way of getting people excited about the project," he qualifies. Excited, or scared?

"We're in the very, very early stages," Brown reiterated, it all (the programming and the design) "could change drastically." What is certain is that earlier this year the Corcoran Gallery sold the property and abandoned their plans to expand their College of Art after their partnership with Monument Realty fell apart. The buyers were Miami art collectors and museum founders Mera and Don Rubell, who forked over $6.5 million for the three-acre site, sporting a partnership with local firm Telesis, and grandiose plans to build a high-end hotel, a large residential component, and the first satellite location of their Miami museum.

Now, several months later, with some of the kinks in the original property disposition worked out, the development team is ready to hone in on their development plans. The schematic design process will begin in February, by which time the programming will be more solidified. The basic concept is certain: residential portion, art museum, retail (restaurants, museum shop, boutiques), and some sort of hospitality component, all totaling roughly 500,000 s.f.. What's left to be determined is whether the residential units will be condos or rentals, and exactly what shape the hotel-aspect takes on. The necessary market research is currently under way to aid in these sorts of decisions.

As for massing and the architectural detailing of the buildings, those specifics will come into focus as the Zoning process unravels; Brown says the development team hopes to submit their PUD application in September of next year, with construction drawings firmed up and permits issued by late spring, early summer of 2012. With an expected two year construction process, that puts a delivery somewhere in mid-2014. Brown explained that the development plans as they stand are rather ambitious for the site, forcing designers to push the density of the project towards I Street, with buildings likely cantilevered over the restored Randall School structures. Brown thinks the auditorium space in the old school buildings would be ideal for a restaurant, with "beautiful vaulted ceilings, and a plinth along the sidewalk that has great potential for tables and chairs." A portion of the historic school will likely operate as the lobby to the art museum, which will open out the back into a middle courtyard. The developers will also reestablish Half Street through the site, bringing it half a block in its current direction, and turning it left to connect with First Street. This will allow proper traffic movement through the site, and have the back of the buildings serve as the main entrance.

Given the historic nature and unique character of this project, an abundance of public meetings are sure to accompany all stages of this process. The development team, headed by Marilyn Melkonian President and founder of Telesis Corporation, has already held two preliminary meetings with ANC6D. Luckily, both the Rubels, who overhauled the Capitol Skyline Hotel across the street, and project architect Bing Thom, who designed the highly-regarded and well-received Arena Stage, have an established and positive relationship with the surrounding community. And they will surely need all the good-will they can muster if the final design looks anything like this early edition.


Washington D.C. Real Estate Development News

Thursday, December 16, 2010

This morning Mayor Fenty and the Department of Employment Services (DOES) celebrate their brand new headquarters at 4058 Minnesota Ave NE with an official unveiling. Likely the government staff to have worked the hardest over this past year, it's fair to say they deserve some fancy new digs.

The five-story, Devrouax & Purnell-designed mixed-use building neighbors the Minnesota-Benning Metro Station, encouraging District employees to use mass transit, and offers over 200,000 s.f. of top-notch workspace, as well as 7,000 s.f. of ground-floor retail space and a four-story parking garage. The new headquarters is one of many efforts by the District and partnering developers towards revitalizing Ward 7; it is hoped the headquarters is eventually joined by the Linda Joy and Kenneth Jay Pollin Memorial Community Development and City's Interests' 15-acre Parkside Residential.

Washington D.C. Real Estate Development News
By Franklin Schneider


Buying property is definitely one of the major milestones in life, signifying "I am now an adult and an integrated member of society." Buying a place like this is sort of the next step, signifying "I am a god among men: bow before my twenty-five foot ceilings and private terrace (with a view of the Capitol)!!!” If I lived in a place like this, I'd carry pictures of it in my wallet.

Located in the 105 year old Bryan School, in Eastern Market, maybe my favorite DC neighborhood (busy but not as congested as Dupont or Adams Morgan, less stuffy and imposing than Georgetown or Capitol Hill proper), this place is an eye-opener for even the most jaded open houser. The first thing you notice when you walk in is that it's absolutely massive; with 25-foot ceilings that seem even higher, it feels like you could fly a kite in here. There are two bedrooms and two full baths spread out over 2400 square feet, and massive windows everywhere. It was overcast when I visited, but the place still seemed full of light. There's a spacious kitchen with granite countertops and a large bar, a dining area with a gas fireplace, a family room, and cherry floors. And topping it all off is a semi-autonomous den that opens via four sets of french doors onto a huge private terrace. From out on the roof you can see the Washington Monument and the Capitol, so close that it seems you might be able to throw a rock and hit the dome. If I wasn't such a patriotic American, I might try. (“But Officer, I have a constitutionally-protected right to political protest!”)

1315 INDEPENDENCE AVE SE
#PH34
WASHINGTON,DC 20003

$1,299,500
2 Bdrms, 2 Baths
Parking








Wednesday, December 15, 2010

This past fall DCMud promised, after assurance from UDR developers, that the former Nehemiah Shopping Center construction site would be activated with a groundbreaking, and that the "rubble [would] at least be pushed around soon." It appears such has happened, as several earth movers have been seen rumbling around the site for the last few days. This is potentially (stress potentially) significant news for a project that seemed destined to remain unstirred; since the unveiling of plans from the original developer in 2008 and subsequent demolition in 2009, the lonely fenced-off block has seen no action.

While UDR refused to confirm or deny the start of construction, as it is "internal policy not to comment on such" according to one anonymous developer at their Washington office, it seems apparent field marshal (a.k.a. general contractor) Donohoe Construction has ordered troops (a.k.a bulldozers) into the field of battle. It marks the beginning of a who-knows-how-long (developers won't say) process to stack 255 one and two-bedroom apartment units on top of 18,500 s.f. ground floor retail. The project calls for 198 parking space to be half hidden, half buried on the back western portion of the site. The retail spaces could house as many as five different tenants, or as few as two, and will be reserved for businesses that supply neighborhood wants and needs: such as a grocery/convenience store, restaurants, bank, café, etc. UDR's corporate headquarters are expected to release more specific information about the project once it becomes official in the company's next quarterly report, those numbers are likely to come out in early February.

Washington D.C. Real Estate Development News
Pending home sales saw a jump of 10% in October which is a positive sign that the real estate market is stabilizing, according to a December 2, 2010 National Association of Realtors® article, Strong Rebound in Pending Home Sales. Housing affordability can be credited to drawing buyers to the table and causing this rebound in Tampa, Florida and across the nation.

According to Lawrence Yun, Chief Economist of the National Association of Realtors®, “It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market is clearly in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011.”

Yun went further to say, “A return to more normal loan underwriting standards and removal of unnecessary underwriting fees for very low risk borrowers is needed and could quickly help in the housing and economic recovery.”

Another interesting indicator is that Fannie Mae and Freddie Mac reports show very low default rates on new mortgages, much lower than the default rates during the 2002-2003 housing boom. All of these factors combined show the real estate market is on the road to recovery. This is a welcomed report for not only the real estate market, but the overall economic health of our country.

Call SI Real Estate today at 813.631.5144 for more details. SI Real Estate, Tampa is your full-service real estate boutique who can assist you with any real estate needs you may have. We provide the complete spectrum of real estate services, utilizing our vast real estate experience and extensive Tampa Bay area knowledge to meet the needs of our buyers, sellers, relocations, investors, landlords, and tenants. After all, SI Real Estate is “Global Real Estate in Every Way!”