On 19th October 2011, CBRE Thailand staff together with its clients and the owner of Royal Residence Park had donated necessities items to aid flood victims in Ayudhya province and nearby.

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Lifestyle changes have resulted in changes in the way people live and where they live, with a clear shift from living in single detached houses in suburban areas to CBD condominiums.

The shift from an individual house to condominiums requires significant adjustments. Those who are used to having their own private common areas have to adapt by sharing common facilities such as car parking, lobby, swimming pool and gym with co-owners who come from varied backgrounds and may have completely different mindsets. It is common that co-owners disagree on how building management issues should be dealt with and how rules and regulations should be enforced. Learning how to adapt and compromise is essential for those who have decided they want a condominium lifestyle and its benefits.

Property Managers deal almost on a daily basis with co-owner disputes, violation of property management rules and regulations. Building regulations are drafted by the developer and registered before the building completion and may overlook details which should be drawn up specifically for each building. Even with professional property managers involved in drafting the regulations, they often need to be revised post building completion to address practical issues and the communal majority view. Simply taking a regulation from one building and applying to another does not always work.

Two of the frequent issues are car parking and pets. Car parking issues include parking in the wrong spaces, requesting changes for parking spaces and parking in drop-off and no parking zones. For example, parking in drop-off areas is normally allowed for maximum of 10 minutes; however, this is often violated by tenants, co-owners and visitors. If one co-owner violates, other co-owners may also replicate the behavior or voice their complaints.

Not all car spaces are equal just as not all condominium units’ views or floors. Buyers need to become more assertive in demanding a known space when purchasing, but even if spaces are allocated on a lucky draw or even on first to occupy basis, car parks only work by enforcement of the rules.

Keeping pets in condominium buildings is another issue. To my knowledge, over 90% of condominiums do not allow pets. However, having a pet companion is a growing trend amongst singles, married couples with no kids or even the older generation. In a single detached house, the common areas are yours and whether you keep a pet is entirely your own choice, but in a condominium environment there may be co-owners who are not pet lovers and generally do not want to deal with problems relating to keeping pets such as noises and smell, and hence most buildings simply do not allow pets.

This sometimes leads to occupiers hiding pets in their units which may cause disturbances to neighbours. In fact, the better way to deal with this may be to allow pets and draw up a set of rules and regulations relating to keeping pets which are strictly enforced by the building manager. Possibly a pet friendly condo is a marketing opportunity for a developer.

This is just two of many examples of issues one has to deal with as a co-owner, property manager and juristic committee.

Violation of building regulations by co-owners is common, whether or not intentional. In case of new owners and tenants, they may violate unintentionally as they are not fully aware of the rules and regulations. Such violations shall be dealt with by providing information and verbal warning initially. 

However, the challenge for property managers is in dealing with co-owners who intentionally violates regulations. Following an initial verbal notice, if the co-owner continues to violate the same regulations, the property manager then verbally reminds the owner again. If this fails, a written notice is issued and if not rectified then a severe action is taken. For example, in case of a car parking issue, the car wheels will be locked to punish violators.

Property managers must have both the tolerance and authority to deal with management issues and enforce regulations and punishment where this is due. They also need the support of the committee and the condominium community at large. If there are recurring and major issues in the building management which requires co-owners to voice their opinions, these issues are taken to the Annual General Meeting (AGM) where co-owners are asked to vote and the decision will be based on the majority vote. However, the AGMs are not normally attended by all of the owners and co-owners who do not attend cannot complaint about the results.

Disputes and personal issues between co-owners can sometimes be blown out of proportion and become very difficult to resolve unless owners are prepared to put common interests before their own.

At the end of the day, if you choose to live in a condominium, you need to understand the dos and the don’ts and accept that you cannot get what you want all the time, majority opinion once debated has to prevail.

Infinity Samui is located on the hillside of Mae Nam on the northern part of Koh Samui. The development is approximately 20 minutes from Samui International Airport and next door to Santiburi Golf Course.  Located on a 10 rai site, Infinity Samui comprises 67 modern-designed apartments, each unit offering panoramic sea-views. The units are designed with bright and spacious interiors leading onto wide open terraces with private pools. Common facilities include a squash court, fitness room, sauna and swimming pool.

Infinity Samui has proven to be a popular choice among investors who are appealed by the modern design of the development, the tropical lifestyle that Samui offers, as well as the potential for capital gain in Thailand’s resort markets.  A limited number of units remain for sale, ranging from THB 19.63 million for a two-bedroom duplex to THB 33.23 million for a three-bedroom apartment.

“We are extremely pleased to be appointed as the property manager for Infinity Samui and which is regarded as one of the few high-end apartment developments on the island. This is a further step in the expansion of CBRE’s property management services in resort residences. Property management is an integral part to enhancing the capital value of properties and we look forward to achieving this at Infinity Samui,” said Mr. James Saunders, Director of CBRE Phuket.

A team has been set up to manage the newly completed apartment development starting in 2011 and staff will be stationed on-site from 1st April 2011.

Residents will enjoy quality living at Infinity Samui with professional property management services which will take care of their properties when occupied and when they are away.  As popular resort destinations such as Pattaya, Phuket and Hua Hin are getting more developed, Koh Samui has become a get-away for those seeking more privacy and unspoiled beaches.

The Phuket property management team will oversee the management of Infinity Samui. CBRE Phuket is widely recognised as the leading property manager in Phuket since the establishment of the Phuket office in 2004.  CBRE currently manages over 25 properties in Phuket, ranging from condominiums, apartments, villas and land and has dealt with various technical challenges and developed systems and procedures that adopt international standards and best practices suitable for use in the Phuket market.

In Samui, CBRE has been appointed since January 2008 to manage the Samui Park Avenue, a 2,900 sq.m. retail arcade located within Samui International Airport.  The appointment by Infinity Samui marks CBRE’s expanding property management base in the market.  Globally, CBRE manages over 2.5 billion sq.m. of space

Click for more information on Sathorn Square, Bangkok office leasing.

CB Richard Ellis Ltd is offering a “Zero Financial Energy Efficiency Programme” for existing buildings to be renovated into green buildings.

Richie Lee, executive director of energy and sustainability for Asia, said in an interview last week that the concept of green buildings would help most buildings cut their electricity cost, water usage and waste as well as become environmentally friendly.

Most property owners think the green concept is only for new buildings, but that is a misunderstanding, he said.

“Existing buildings can be renovated to be green buildings but most building owners have delayed thier decision because they believe that the  renovation budget will be too high for them,” he said. In fact, the renovation budget will be lower thatn their spending on electric bills over the long run, he said.

Research in the US shows that existing buildings that are renovated under the green concept will recoup their investment between six and 10 years, he said. That is because they will save 30-50 percent on their electric bills, depending on the building size, compared with their bills before renovation.

CB Richard Ellis has launched a campaign to encourage all existing buildings to go green by changing chillers, airconditioners and otehr electric equipment. In this campaign, the company will join with its partners to use their own funds to renovate a building under the green concept at no cost to the owner.

After the renovation is completed and the building can reduce its electric bills, the building will pay the savings to the company. For example, before renovation the building has to pay Bt100,000 per month for electricity. After the renovation is finished, the building pays Bt70,000 per month. Then the Bt30,000 that is saved has to be paid back to CB Richard Ellis and its partners every month until the budget to renovated the building is covered.

If the renovation cannot reduce electricity bills, the building owner will not pay anything back. Lee said this campaing would help support the company’s property management business and is also environmentally friendly.

“Our average budget is about US$2 million (about Bt63 million) to renovate a building that spends about Bt200,000 a month on electricity. That will take six to 10 years to pay back, depending on the condition of the building,” he said.

This programme has been introduced in Asia, including Thailand, by foucusing on existing customers. Now the company has over 412 projects in 12 countries covering Asia-Pacific, with 80 of those buildings in Thailand. The programme is also open to new customers that want to join.

China is the first country in Asia that built green buildings, he said. There are now more than 60 buildings in China, followed by Singapore and Malaysia.

In Thailand, there is now only one project, Energy Complex, which has been awarded a platinum LEED (Leadership in Energy and Environmental Design) for its construction process. The project is also applying to geed LEED certification for existing buildings.

Most office buildings are interested in changing into a green building because research in the US reported that most green buildings could charge 5-10 percent higher rent than normal buildings, he said. All green buildings enjoy higher occupancy rates than normal buildings.

That’s why most buildings have tried to change to be green buildings, he said.

CB Richard Ellis manages more than 2.5 billion sq. ft. (232.3 million sq.m.) of commercial property globally. This portfolio is more than 850 million sq. ft. (79 million sq.m.) larger than the #2 firm, which manages 1.65 billion sq. ft. (153.3 million sq.m.).

In Thailand, CBRE manages over 6.4 million sq.m. of grade A offices, world class villas, luxury condominiums and apartments, retail in Bangkok, Phuket and Samui such as Energy Complex which is an energy saving development and applies LEED, an internationally recognized green building certification system, for new construction.  Some of other properties under CBRE’s management are Athenee Tower, CyberWorld Tower, Exchange Tower, The Met, The Infinity, The Rajdamri, Royal Residence Park, Vasu The Residence, Samui Park Avenue, Royal Phuket Marina, Laeng Singh Villas, The Heights, Layan Estate.   

Energy Complex

CBRE Executive Managing Director, Asia Pacific Asset Services, Mr. Sam Cuccurullo said CBRE was the leading commercial property manager in the Asia Pacific region, with 800 million sq. ft. (74.3 million sq.m.) under management.

“We have now created a global Asset Services Executive Committee and we are starting to create initiatives around strategic client accounts,” Mr. Cuccurullo said.

“Going forward one of our primary targets in Asia Pacific is regional clients and premier buildings in major CBD locations.”

From the recent events last month, our property management team has learned invaluable lessons from direct experience in managing 12 buildings in the red zone, seven of which were at the centre of the riot areas.

Every company is concerned about staff safety, but one profession that has to continue its duty to provide security for the buildings and occupants is property management, regardless of the situation.

Only a few staff were voluntarily on duty to man the buildings amid the clamour of bombs and gunfire and smoke from fires in nearby buildings and the uncertainties of what would happen next.

The recent events have raised security concerns for both commercial and residential buildings. Many residential buildings do not have proper gates to the compound to prevent intruders. For commercial buildings, an open gate design is often adopted, but the problem lies at the building entrances, which are mostly glass doors without shuters.

A measure most commercial buildings have implemented is to control elevators not to open on ground floors.

However, it is clear that most properties are not well prepared for such riots, as no one imagined it would happen in the heart of Bangkok.

Following the events, there are lessons to be learnt. Whilst buildings comply with fire-safety regulations, there are now other risks to consider.

In other parts of the world, sophisticated security measures and technology are implemented to prevent or minimise the impact from natural disasters, riots or even terrorist attacks. However, the fact is these security systems are expensive and ineffective without the right people using them.

Therefore it must be a combination between the right system and the people. Landlords must balance the security measures against investment and the standard of safety they need to provide to occupants.

From our perspective, there are three broad aspects that should be reviewed.

First, the physical control of ingress and egress. Buildings should have one main entrance that can be security-protected from outside.

An access-card control system should be effectively implemented at all access points including the main lift lobby and all car park floors.

Visitor cars should also be checked with a car park allocated separately from the occupants’ car parking area.

The building exits should also be carefully planned to allow evacuation in case of fire, explosions, natural disasters or terrorist acts. Multiple emergency exits should be available and effectively activated when necessary.

Other routine measures that are often overlooked include updating the layout and M&E plans of the building and the list of occupants/tenants and their contact details, and make this available on-and off-site.

Fire staircases and exits, CCTVs, and security and safety equipment should also be inspected on a regular basis.

The second aspect is people. Security guards and property management staff should be proactive and professionally trained to use the system and equipment and handle emergency situations beyond fire evacuation.

Occupants must also realise the importance of the measures and comply with the procedures.

The last issue is design. New security systems may not be implemented in existing buildings with design limitations, but architects, developers and all design professionals should be aware of these requirements.

The systems are best incorporated right from the start of the planning for the site, layout and structure to M&E.

All too often many buildings do not implement proper security measures for the wrong reasons such as disturbance to visitors or privacy of occupants, budget constraints or simply because of the lack of staff discipline to control or implement.

Residential building owners must assess what is more important – convenience and privacy or security.

Commercial building owners must also find a balance between allowing uncontrolled public access to building facilities and implementing measures to reduce security risks.

It remains a question of how long people will continue to be alert and aware.

But as Thais tend to forget easily, we do hope that these lessons can be learnt and remembered, as prevention is always better than a cure.

The Energy Complex is located on Vibhavadi-Rangsit Road and consists of two grade A office buildings of 36 and 25 storeys, one service building, and two parking garages. The total space of approximately 300,000 square metres within this project will be occupied by the PTT group of companies including PTT Exploration & Production Plc., PTT Chemical Plc., Thai Oil Plc., and other companies related to the energy industry. An office of the Ministry of Energy will also be situated here. This project is scheduled for completion in Q4 2009.

Apart from its unique building architecture, the Energy Complex has been well designed to meet the standards of the LEED (Leadership in Energy and Environmental Design) green building rating system for new constructions in order to save energy and be environmentally friendly. The aerodynamic shape of its facade will help reduce the temperature and heat on the building’s surface. The buildings have also been designed to withstand earthquakes measuring 7.2 on the Richter scale that are 200 kilometres away on the fault line in Kanchanaburi. High-tech building management systems have also been installed.

Furthermore, retail space and facilities including a fitness centre, business centre, seminar rooms and an auditorium for 30-500 people, an exhibition room, restaurants, a 1,000-seat food court, banks, a roof garden, an outdoor exercise area, and parking for around 3,700 vehicles, have been provided for workers and visitors.

Ms. Aliwassa Pathnadabutr, Managing Director of CBRE Thailand, said, “We are pleased that Energy Complex Co. Ltd. has appointed CBRE as the property manager of this major project which has a competitive edge in terms of technology, energy savings, and environmentally friendliness. This is a further step in the expansion of CBRE’s property management services in managing buildings with LEED standards which are well recognized as the global standard for green buildings. This appointment will help reinforce CBRE’s position as the leader in property management in Thailand.”

“We have set up teams of specialists for specific scopes of work based at the Energy Complex, including an environmental engineer as one of almost 50 engineers and safety professionals who have gained a Bachelor’s degree or a Certificate in Occupational Health and Safety for High-rise Buildings, in order to ensure our client’s optimum level of satisfaction and confidence,” added Ms. Chanpen Tawoncharoenpon, Director of Asset Services at CBRE Thailand.

CBRE Thailand currently manages offices, retail, condominiums, apartments, and villas in Bangkok, Phuket and Samui. For the sixth year in a row, National Real Estate Investor, the leading magazine for professional real estate investors, has ranked CBRE No. 1 out of the world’s top 25 property managers. The ranking is based on the total amount of space under management globally each year. As of 31 December 2008, CBRE was responsible for the management of 220 million square metres.

Presentation of Management Agreement

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About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2008 revenue). The Company has approximately 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company for three years in a row.

CB Richard Ellis established an office in Bangkok in 1988, followed by Phuket office in 2004, and Samui office in 2007. CB Richard Ellis (Thailand) Co., Ltd. has grown to be a leading real estate services provider, offering strategic advice and execution for sales and leasing for all types of property, property and facilities management, valuation and advisory, and research and consulting. For more information, visit the company’s website at www.cbre.co.th.