Office building security getting smarter

Mar 20, 2006 3:28 PM

           

Owners and landlords are gravitating toward a more strategic deployment of technology and personnel. "The aim is to implement new technologies for added efficiency, not just for their own sake, or because they are the greatest wonder since sliced bread," says Mike Coleman, vice president of commercial real estate at Philadelphia-based AlliedBarton, a security personnel firm.
The new approach to safety goes well beyond gadgetry and technological wizardry. Relatively simple procedures may also be cost-effective and beneficial. For instance, mail handling and emergency planning have taken on heightened importance. Security guards can communicate through PDAs, enabling them to receive messages in the field. Good lighting is a must, especially in garages.
In general, office building managers are reducing their reliance on manpower in favor of X-ray machines, metal detectors, turnstiles and barriers. "The key is to do it smarter, by integrating personnel and systems," Coleman says. "That could mean replacing or supplementing humans with technology."
Video analytics and biometrics are at the cutting edge, according to Tony Varco, vice president of the security division at Convergint Technologies, Schaumburg, Ill. New surveillance software, using complex algorithms, allows operators of CCTV to zero in on abnormal behavior. "Layered technologies work in conjunction with each other. For instance, software complements high-quality video or digital recordings," Varco says.
The good news for landlords and tenants is that security costs appear to be under control. After an initial jump from 46 cents to 56 cents per sq. ft. between 2000 and 2002, research from the National Association of Building Owners and Managers (BOMA) shows they have now leveled off. Still, those overall numbers do not capture the trend for the high-end systems found in landmark and Class-A buildings. "Comprehensive electronic security and surveillance systems now cost between $2 and $5 per square foot. In the 1990s, they were under $1," Varco says.
Installing and maintaining a CCTV system ranges from $1,500 to $2,000 per camera. Varco estimates a card access system with a proximity reader may cost about the same per door. Metal detectors are expensive to install, requiring electrical expertise. As for security personnel, unions dictate wage levels in different cities. Chicago is the priciest at $11.50 per hour, followed by Boston and Washington at $11.25, and New York at $10.75, according to Coleman.
In the end, security expenses represent a drop in the bucket for both larger owners and tenants. "When occupancy rates are high, the landlord can be reimbursed for most of the costs, which are spread among the tenants," says John Kim, a research analyst at Bank of America.
From the tenant side, rents are a marginal expense for large companies and professional firms. Small increases in rental expenses, including security, barely dent the bottom line. "Total expenses, including property management, utilities, security, insurance and taxes, comprise 30-40 percent of rental revenue," Kim says. "Security expenses constitute just 6 percent of all that," adds Amita Juneja, BOMA's director of research.
This article has been excerpted from Vanessa Druckers' story, "Office Building Security is Getting Quite Smart," a story in our sister magazine, National Real Estate Investor.