The Real Estate Norm® (REN) is a systemized assessment method that enables objective discussion about the quality performance at each phase of the life cycle of existing or new to built real estate, whether leased or owned, whether for living, work, education or for any other purposes.
Systemized assessment method
Ranging from strategic planning to occupancy evaluation and operations. It is based on a list of clear and measurable performance requirements from the perspective of the building user/occupant. Which makes building performance ratings possible.
These requirements vary over time, per asset and per location (differentiated layers of change). They are determined by the organisations’ policy goals, value aspects, portfolio decisions and compliance with regulations, which by definition are all subject to change.
The environmental, social and corporate governance (ESC) factors form the context of the assessment. The best set of performance measurements is one that is customised to fit the needs of the organisation that is using the building.
Thus ensuring that the occupants’ needs and expectations are continuously being met. It provides a ‘common language’ that offers ideal chances both to promote synergy and impact. It supports informed decisions across the real estate portfolio.
It is a means of facilitating and improving communication about demand, supply and ownership of locations and buildings that create more transparency. It brings consistency and clarity. It reduces the risk of differences in interpretation and uncertainty.
REN Norm makes real estate REAL easy
Building quality can be assessed at every step of its life cycle by using the well-established criteria of the REN. Therefore REN can be used as a module in the Building Information Model(ling) Management (BIM) approach or with an Integrated Workplace Management System (IWMS) to enable BIM/IWMS to communicate also with the end-users of buildings. It creates the required input for a quality management plan.
To be clear, the REN-norm is not developed for the determination of the economic value of real estate. It is a method, which makes the quality (fit for purpose) of real estate measurable and open to discussion by the use of a set of unambiguous definitions. The REN methodology is designed for organisations that manage their own existing or new to build real estate and for professionals that support organisations with this task.
It is a means to improve and extend communication about buildings including their environment. The aim is to minimize differences in interpretation and encourage a culture of continuous improvement. The REN method uses a 5-point scale to keep a clear view of the main possibilities of each aspect from a Real estate/Facility Management and an IT perspective (supply side) as from the user’s perspective (demand side). Both demand and supply are compared in a match profile in order to contribute to decision support and practical solutions.
How does my building impact my people?
You must first know your requirements in order to meet them. The REN standards enable you to evaluate alternatives, decide whether improvements are needed and measure progress toward meeting the objectives. In applying the tool REN one should take into consideration the quote of Albert Einstein:
“Not everything that counts can be counted, and not everything that can be counted, counts.”
REN provides a method that gives general and effective insight into the desired and/or existing quality performance of real estate. REN makes real estate SMART and REAL easy, aligning performance to strategy.
The REN method can be used for a more targeted design of requirements to determine the optimal fit for purpose of the real estate portfolio. The desired performance level is determined by the user and/or owner of the property. Besides the factors that can be determined objectively or counted, there are also factors of importance that never can be determined objectively because they depend on time periods, trends and visions. But nevertheless, they can be measured.
Tailor-made performance indicators
The REN norm is a measuring system to make tailor-made performance indicators for different types of real estate and different scopes like:
- Workflow,
- User experience,
- Regulation/Code compliance,
- User satisfaction,
- Energy efficiency,
- Operating cost reduction,
- Optimize capital charges,
- Disinvestment/sale,
- Etc.
To facilitate comparing demand and supply profiles for:
- Site selection,
- Building assessment,
- Rental negotiations,
- Post-occupancy evaluation,
- Sustainable buildings,
- Hybrid working,
- Private-Public Partnership (PPP) and Design, Build, Finance, Maintain, Operate (DBFMO).
Measuring the contribution to corporate targets, and alignment of corporate real estate strategy with overall corporate strategy.
REN assessments give input to make informed decisions and identify any improvements to the building (portfolio) that may be necessary. It makes communication about portfolio and asset performance between end-users and professionals easier. It decreases risks of neglecting any important quality aspect in an objective way by rating existing buildings and their environment but also by rating in the briefing phase of an acquisition, refurbishment, renovation or development of a building.
This has already been done e.g. for offices, industrial buildings, distribution centres, laboratories, housing, educational buildings, police stations, bank branches, and petrol stations. REN can be applied to both locations and buildings.
Real estate portfolio analysis
The Dutch standard NEN 8021 “Rating user performance of commercial buildings”, published in February 2014, is based on the REN methodology. The NEN 8021 covers only the real estate functionality of office buildings. See the schedule below.
In 2015 the REN Offices 2.0 has been updated to version 3.0. Real Estate (RE) has been supplemented with Facility Management (FM) and Information Technology (IT). All components of a work environment are now addressed. The REN 3.0 is developed for Zurich Insurance company for the management of their international office portfolio with about 1,000 buildings.
The REN method is helpful in identifying relevant measurement criteria/indicators for the assessment of owned and leased real estate. With a weighted rating, it can be determined to what extent the real estate is used effectively, efficiently and meets user satisfaction in comparison to the stated policy goals. In REN 3.0, matching supply and demand takes place on themes such as:
- Attractiveness / Experience.
- Accessibility / Logistics.
- Amenities / Supporting Services.
- Adaptability.
- Sustainability / Building Intelligence / Environmental Performance.
- Health / Safety & Security / Well-being.
- Maintenance Management.
Control and risk management on the real estate portfolio becomes possible. A rating of buildings helps as a baseline assessment for better matching the actual space usage to the space requirement.
Making cost savings visible and pointing out overcomplete buildings for disposition. For vacancies, an appropriate new destination can be found. The buildings eligible for disposition have to be compared against the company real estate policy for the medium to long term to prevent the ‘Crown jewels’ are being sold.
REN can also be used to monitor if sustainable buildings are used and managed in a sustainable way.
REN video
(Video is in Dutch)
The Dutch video ‘Real Estate Norm (REN), better communication about real estate performance. A new era.’ from 1992, shows in approximately 18 minutes how the REN practically can be used. For tenants/users, project developers, investors, brokers, architects and consultants. Different real estate parties highlight backgrounds and developments. Dutch Minister Hans Alders of the Ministry of Public Housing, Spatial Planning and Environment (VROM) receives from Director René P. M Stevens on the 12th of November 1992 the first copy of the REN version 2.
History
In the early nineties the three initiators of the Real Estate Norm (REN), real estate broker Zadelhoff Makelaars (now: Cushman & Wakefield), project management organization Starke Diekstra (now: Arcadis Netherlands) and real estate consultants Jones Lang Wootton (now: Jones Lang LaSalle), have concluded from their daily practice that there is a growing demand for a tool that would enable the objective comparison of the quality performance of office/industrial locations and buildings.
A common understanding between the users of offices on the one hand and real estate professionals, accommodation and construction specialists, on the other hand, is becoming increasingly difficult. A clear and unambiguous standard for the determination of quality like the REN-norm will improve mutual understanding.
The REN-norm is the leading pioneer of a de facto standard for assessing real estate quality, in the sense of fit for purpose. René P.M. Stevens and late Frans F.A. Diekstra (*30-03-1955 †11-05-1995) were the main founding fathers, and from 1992-1997 Stevens was also Managing Director at the Real Estate Norm Netherlands Foundation. Diekstra and Stevens have presented the REN as the world’s first quality standard for real estate during the conference of the European Real Estate Society (ERES) in 1994. Since April 2015 Stevens is again the Managing Director and board member.
Contact Info
For further information about the REN-norm® applications, you can send an email to René Stevens.
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