Security decisions--sense beyond dollars.

Security decisions for commercial office buildings are more than just a matter of dollars and cents.

But with escalating operating costs eating away at the bottom line and rental income relatively flat in the New York metropolitan area, security is one of the few areas where building owners have a clear opportunity to impact their property's Net Operating Income significantly.

What approach makes the most sense, given your building's unique security requirements and budget?

Building owners have two primary goals for their security systems: protecting and enhancing the asset; and attracting and retaining tenants.

The challenge they face is to create and maintain a security program that achieves both objectives without generating costs that offset the benefits.

Some owners choose to run the systems themselves, by establishing new "cost centers" to handle ongoing security system management.

Functions required to run the security system include perpetual programming, operations, monitoring, administration, maintenance, and system changes--everything from the issuance of card keys and constant updating of tenant/building information, to the upgrade of equipment and software.

The duties of this "new department" are vital. First, each function mandates direct tenant contact, so it must be executed with precision and professionalism. Second, performing these responsibilities properly is necessary to protect the owner's investment in both the security system and the property itself.

Without comprehensive ongoing system management, every security system--no matter how advanced the technology--will fail. Left unmanaged, even a $500,000 cutting edge security system with a promised lifespan of 10 years begins to deteriorate the day it is unveiled, and the system's longevity is severely compromised.

When the security system lags building and tenant activity, tenant relations and capital budgets come under tremendous strain.

But building owners don't need to run their security system themselves. In fact, savvy owners elect not to dilute their professional focus or their Net Operating Income by creating an internal department.

For them, there's only one solution: Outsource ongoing system management to experienced professionals, specialists in the world of commercial real estate security and asset management.

That means turning to Kastle Systems, the only experienced security system management and operations provider in the United States, to run their security system.

Outsourcing isn't a new concept to owners, who look outside their firms for janitorial and cleaning service, HVAC operation, web hosting, elevator service and landscaping.

Outsourcing isn't even new in the security arena. Most owners already turn to consultants for advice, design and installation of security hardware and software.

But once the equipment and systems are up and running, consultants pack up and leave owners with enough system operations responsibilities to warrant full "in-house" departments.

In the last six months, Kastle Systems has worked with an increasing number of building owners in New York, Washington, D.C., Los Angeles, Chicago, Houston, and Philadelphia to replace in-house security resources by outsourcing system operations to Kastle's team of professionals.

Across the country, building owners report that, by hiring Kastle to run their security system, they have 1) reduced their overhead, 2) been able to focus exclusively on the business of buying and managing property (not security systems), and 3) improved tenant satisfaction. Cost savings created by outsourcing operations to Kastle Systems may start at $100,000 in the very first year for certain properties.

Another benefit, more difficult to quantify but equally valuable, is that tenants immediately report greater ease and comfort as they interact with the security system operations.

There's no question that security and security systems are top of mind for building owners nationwide.

Tenants, visitors and investors demand functional, user-friendly security programs and systems, and landlords are becoming expert in the costs and challenges of providing the most effective solutions.

The next step is to embrace the familiar concept of outsourcing within the relatively new arena of building security.

Outsourcing the ongoing management of the building's security system--a "new" idea that Kastle has practiced for 33 years--is being embraced by building owners who understand the serious and expensive work of trying to run a security system themselves.

STEVEN RINDNER

EXECUTIVE VICE PRESIDENT

KASTLE SYSTEMS