Measuring Quality the GradeMeter a measuring tool to calculate the Quality Grade of office buildings Federico Donda National Director – head of Project & Development Services – Jones Lang LaSalle Italy 26th June 2010
2 Why we need it To answer the question : “What do you mean by GradeA” To enhance transparency into the market To support the growth of the quality of the product To facilitate the market reading to international players
3 What is It…? It’s a new measuring tool created by Jones Lang LaSalle to calculate the Quality Grade of office buildings. The Grade Meter has the target to provide tenants, landlords and developers with an objective system which clearly and simply quantifies the actual Grade and simultaneously compares under the same criteria buildings for office use. It’s objective It’s simple It’s userfriendly It works everywhere in the world
4 Principles The main difference from other tools tried to be developed in the past is the principle about what is measured. When someone has to choose a building to lease it, buy it or develop it, he considers mainly 3 drivers: Commercial Criteria Location Image/Visibility Transports Services Technical Criteria Dimension Efficency Flexibility Equipments Financial Criteria Rent Service Charges Move-in Costs Incentives ONLY Technical Criterias Has been considered for the GradeMeter
5 How It Works…? It’s a list of features the building could have, covering 3 main areas: Technical Equipment, Commercial Quality & Comfort, Efficency & Flexibility The “weighting” of every single obtainable point comes for a long work done within every department of JLL as Agency, Capital Market, Valuation, Research, and P&DS that has led the process. So, every “viewpoint” of the market has been considered
6 How It Works…? Every required element which composes the “Quality” is part of a sub-group which is finally aggregate on the 3 main “families”: Technical Equipment / Commercial Quality & Comfort / Efficency & Flexibility Balancing among the 3 families is optimal None of the single elements “weights” more then 6% Average “weight” of a single element is 2%
7 Balancing 32% 36%
8 Grading Grade A+ from 91 to 100 points Grade A from 81 to 90 points Grade A- from 71 to 80 points Grade B+ from 61 to 70 points Grade B from 51 to 60 points Grade B- from 41 to 50 points Grade C from 00 to 40 points
9 Applicability Every Office Building with known dimensional data and technical specification Those buildings could be easily benchmarked among them, within a certain field coming from location and cost New developments could be verified in advance, in order to ensure the return from investment
10 A revolution…? The Grade Meter is becoming quickly the main international benchmark to measure Quality of office buildings We have created a new standard which is used internationally by every player of the Real Estate industry The revolution of transparency which this tool will create in the market bring only benefits to the whole industry. Grade Meter is for free, accessible by everyone at joneslanglasalle.it
11 GradeMeter “It’s the Quality, not the Quantity, that’s matter” Seneca
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