Elevator expenses go down ...
savings go up
One of the many operational initiatives Trizec implemented to enhance cost savings was to employ a national program for elevator contracts. This year, we consolidated our Atlanta contracts into national accounts. This cost-effective action alone saves us $130,000 per year or approximately 4 cents per square foot. We also expanded our national consolidated contracting program from 82 percent of elevator cabs in 2004 to 95 percent in 2005.
In addition, Trizec achieved annual maintenance savings of over 9 percent across our entire portfolio. Finally, we conceptualized a five-year modernization program that promises to reduce expenses by almost 8 percent through 2010.
Programs that put customers first
The heart of any business is its customer base, and Trizec is no exception in recognizing this. We enacted a number of programs to improve service and increase satisfaction—from launching monthly communication materials that keep customers well-informed to disseminating a 24-hour customer response service property-wide.
This program has already been effective, reducing the time it takes to respond to and resolve customer requests by at least 75 percent. Not only is Trizec more responsive in handling service requests and tracking preventative maintenance, we are increasing customer satisfaction by consistently providing well-run buildings, safer spaces and quality environments.
Enhancing the appeal of our properties
Sometimes, the smallest details make the biggest difference. This year, we initiated a pilot program in the Washington, D.C. region to identify areas where we can further enhance the curb appeal of our properties. The result was 147 projects across 14 buildings to improve surface finishes and landscaping, painting and lighting, and lobby presentation. The majority of the identified projects initiated were completed in 2005. More importantly, we created a collaborative environment among property management, leasing, construction management, regional management and key outside vendors who will now work together to ensure the smallest details are not overlooked. This curb-appeal program is just another example of how Trizec strives to provide the most pleasing and productive work environment for our customers.
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October
- Modified our existing credit facility by converting it from a $600 million revolver component and a $150 million term component to a full $750 million revolver, reduced the interest rate and extended the term through October 2008
- Sold Watergate Office Building, located in Washington, D.C., for $86.5 million
- Sold Twinbrook Metro Plaza, located in Rockville, Maryland, for $52.0 million
- Sold Beaumeade Corporate Park, located in Ashburn, Virginia, for $53.0 million
November
- In a 50/50 joint venture partnership with Principal Real Estate Investors, acquired the Victor Building, located in the East End submarket of Washington, D.C., for $157.5 million
- Awarded the 2005 “Leader in the Light” Gold Award from the National Association of Real Estate Investment Trusts in collaboration with the United States Environmental Protection Agency. This award recognized company-wide operations that generate substantially improved energy efficiency and expense management
December
- Signed two lease renewal and expansion transactions with CDW Corporation and Arnstein Lehr, totaling 346,000 square feet and representing 50 percent of the rentable space at 120 South Riverside Plaza in downtown Chicago
- Renewed 640,000-square-foot lease with Bank of America at Bank of America Plaza in Charlotte
- Entered into an agreement to acquire a high-quality, Southern California office portfolio for approximately $1.63 billion. This portfolio is comprised of 13 properties, totaling 4.1 million square feet, and several development land parcels. To facilitate part of this portfolio transaction, Trizec arranged for a $1.48 billion bridge loan
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