David Grein:    The process of developing a new facility for a company comes with it the opportunity to work with the CEO as well as the Real Estate team. The Real Estate team is always very much in tune with the company strategy although they often times are not well heard. Why is a landlord asking about my business strategy? Then it starts to hit home; maybe there is a reason why my real estate people are asking me these questions? As we convince people that a strategy on how to do business encompasses people as a critical resource then it is in the best interest of the company to understand how the people work. Then it is a critical issue to design space that makes the workflow convenient, the people comfortable, efficient, and productive and the workplace enjoyable so people want to come to work. It needs to be flexible to change from Hewlett-Packard to Agilent Technologies. Occupancy costs are usually the second largest after labor costs. This market does not let you just go out and get 100,000 SF to create a manufacturing facility at $0.30 a SF. It forces CEOs and CFOs to think about their space more carefully, where it's at and how it works for their people.

Jean:    From a business plan, there are related issues, on of those being the retention of people. Is there a relationship between space and retention?

David Grein:    Tenants are all the business groups that reside in our properties, and we are in the business of providing facilities that facilitate more of business solutions providers versus landlord. As a result we are finding that many companies would like us to take care of their back-of-the-house operations, eliminating the hassle of copy centers, ail room functions, ISP functions, and telecommunications backbones. Whether we are outside building owners or a facilities department does not make a difference. There is an opportunity for every real estate person to expand the services provided by finding solutions for business partners to allow them to focus on their business. Whether it is a CEO or department manager, it's too much for them to think about where the copier should go.

Jean:    How often do you have to question the business units to understand their work processes and changes?

David Grein:    A few years from now, DSL lines will be in the home. We won't be sitting in traffic; we will be working from home. Anything we need to communicate will be virtually accessible. Maybe you will go to work at noon for a couple hours to have face-to-face communication with people you need.

Bryan Kent:    In our business, we need to interact with people; it's who we are. We are already seeing people who work remotely not as effective as when they worked in our corporate offices. We are bringing people back in. We need to have a face-to-face work environment. I see us still screaming for space in three years.

Corr Peace:    With the DSL capabilities, people have the option to work at home, but even we do not work as well as when we are able to walk down the hall and say, "This is what's going on."