High-performing, loyal workforce is essential. (An Advertising Supplement: Staffing & Employee Benefits).

In the corporate real estate industry, assets no longer refer just to the size and scope of portfolio. Now more than ever, assets also include your management team and entire base of employees. Although the Colorado Southern California labor market is beginning to soften since the near record low unemployment rates of last year, attracting and retaining top talent is crucial to keeping a competitive edge.

Providing best-in-class service and customer solutions is a determining factor in any company's ultimate success. Companies within the corporate real estate industry are no different. And, offering that unmatched level of service begins and ends with having the best employees, which has become even more important considering today's challenging economic climate.

The commercial real estate industry has traditionally been one driven purely by transactions. Employees' daily business lives have been geared toward securing the "next transaction" or "doing deals." Generally, these dealmakers applied their way of doing business to their own career paths, thus contributing to high levels of turnover throughout the industry.

But, times are changing. And, Equity Office Properties Trust is one of the organizations leading the way.

Our company enjoys a lower average national turnover rate than the industry average. Internal initiatives help keep employees aligned to the company's goals and provide numerous forums for feedback. In our 2001 employee survey, conducted by The Hay Group, Equity Office employees scored among the highest of the Fortune "Most Admired" companies with regard to understanding the company's strategy and in trusting senior management. Those are impressive numbers for a company that has more than 300 employees in the Los Angeles area and 2,700 nationally.

In a broad sense, employees must be given three fundamental things:

* A clear picture of their partnership with the company.

* Diverse incentives to reward success and commitment.

* Substantial access to quality training and personal development.

Employee Input

Giving employees a clear picture of their partnership with the company begins with effective communications. It is essential that employees feel that their ideas and concernsthey are being heardbeing listened to. Employee surveys and focus groups, personal communication with the CEO, and quality employee communications (i.e. newsletters, a company intranet, conferences, etc. )that openly credit employees' extraordinary customer service efforts are essential and provide for effective two-way communication. Employees must feel they are being listened to, and companies must respond by developing systems that allow for two-way channels.

Tying Results to Company Performance

Mercer Consulting, a compensation firm, estimates that only 17 percent of companies offer their employees broad-based stock option plans. At Equity Office, we provide a broad-based share option plan, a share purchase plan, a profit sharing plan and a bonus program. And, most of our employees locally take advantage of it. Our employees are also given numerous options in the way they work through a formal flexible work arrangement program that includes flex time, compressed work weeks and telecommuting. Again, several of our employees take advantage of these offerings that allow them to customize their own work schedules to meet the individual demands of their lives. Additionally, in 1999 the company implemented a Total Rewards Program that serves as a comprehensive framework that ensures employees' work environment, pay, benefits and development provide a competitive advantage in attracting and retaining employees.

While strong pay and benefits are critical to attracting and retaining a strong workforce, creating an attractive work environment and providing employees with input to quality training and personal development cannot be overlooked. Open door policies at all levels of management are another example of corporate practices that foster a comfortable and creative work environment. At Equity Office, many of our employees take advantage of educational assistance and employee and leadership development programs that are offered to everyone, regardless of their position with the company.

Integration

A focused orientation program for new employees and the designation of a "buddy" for every employee--a colleague to whom new employees can look for guidance and advice - are good ways to quickly familiarize new employees with the company and its mission and vision.

On February 23, 2001, Equity Office announced a merger agreement, subject to shareholder approval, with Spieker Properties, Inc., a publicly traded real estate company that owns 25 million square feet of office space in California and the Pacific Northwest. Chances are good that several of our employees from Denver will spend time in Seattle and other west coast markets serving as "buddies" for their new co-workers there.

The "buddy system" was a key facet of Equity Office's successful integration of approximately 25 million square feet of new properties and 362 employees nationally (130 people in the Los Angeles Region) following our $7.3 billion merger with Spieker Properties, Inc. in July of 2001. Teams from across the country visited former Spieker buildings in the Los Angeles Region, pairing up building management professionals across the country to integrate new properties into the expanded Equity Office portfolio.

This innovative "sister building" program allowed systems and practices to be shared as building and property teams nationwide found and implemented the best practices and services for our customers. And as the year progressed, this back-to-basics focus on customer satisfaction became one of the chief components of business success. Not only for Equity Office, but for Corporate America.

Bert Dezzuti is Senior Vice President--Los Angeles DenverRegion, for Equity Office Properties Trust.