Those questions are among the issues being raised by a labor union challenging changes wrought by Equity Office Properties Trust's EOPlus. The largest U.S. office REIT's initiative is an attempt to drive down operating costs in order to lower operating costs for tenants, while maintaining quality service to its primarily class-A portfolio.

The Alliance of Concerned Equity Tenants, a group dedicated to helping tenants of Equity Office Properties buildings challenge aspects of EOPlus, is an offshoot of the Service Employees International Union. The union represents janitors who work for companies with contracts with Equity Office Properties to clean buildings here as well as the rest of the U.S.

Equity Office Properties concedes EOPlus, which involves consolidating property management and leasing operations into fewer offices throughout its 125-million-sf portfolio, will mean changes in service specifications as well as the number of vendors it does business with.

"This is clearly a janitorial union generated web site and group," says Equity pr spokesperson Terry Holt. "The union has an agenda to promote its membership and employ as many janitors as possible. Our goal is to serve our customers in the most efficient manner and the lowest cost. And those agendas are at odds."

So far, Equity Office Properties has seen no impact from the Service Employees International Union's efforts, Holt reports. The proof, she notes, will ultimately be offered by the tenants themselves when leases come up for renewal.

Besides launching two web sites, ACET has hosted seminars, including one here, covering such topics as lease audits. While the group claims tenants are becoming dissatisfied with cleaning, maintenance and security since EOPlus was launched, ACET suggests lease audits will ensure tenants get the cost savings promised by the REIT's initiative.

Equity Office Properties says it based new specifications on surveys of tenants, which included about 1,000 interviews of leasing decision-makers lasting about 30 minutes.

For instance, Equity Office Properties says surveys told them tenant events, concierge services and health clubs were at the bottom of the list of what tenants want. On the other hand, clean, well-managed space with highly responsive service is a top priority.

Equity Office Properties officials note any cost-saving measures in EOPlus must be balanced with maintaining high quality service at their buildings. Otherwise, the result could be lower occupancy levels as well as value of the REIT's assets.

Instant Insights /

Union Using Web, Seminars to Challenge EOPlus

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