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Travelers Picks Intellicenter to Consolidate Houston Operations

Like many Fortune 500 companies today, The Travelers Companies, Inc. is looking for ways to efficiently manage its real estate. One obvious way: consolidating under one roof the 800 employees spread throughout six different facilities in the Houston metropolitan area.

After a seven-month search, the St. Paul, Minn.-based property casualty company, which is ranked 85th on the Fortune 500 list, chose the 150,000-square-foot Intellicenter™ for its Houston operations.

“This was not an easy process,” says Tom Maloney, an executive vice president and principal with The Staubach Co. who represents Travelers. “Finding a building that offered the right location in a safe and secure business park environment, the right amount of space and greater efficiencies is a challenge. But at the end of the day, we felt comfortable with Koll Development Company’s (KDC) Intellicenter product.”

David Bale with Staubach’s Houston office also represented Travelers in the deal, while Phil Arnett and Kyle Kelley with CB Richard Ellis Inc.’s Houston office handle the leasing for Intellicenter-Houston.

Unlike Other Buildings

Travelers plans a January 2008 move into its new home in the Westway Park
development, a 150-acre master-planned business park at the intersection of the Sam Houston Tollway and Clay Road between Interstate 10 and U.S. 290. Westway Park is a Wolff Companies development.

The Intellicenter building, developed by KDC, was one of 15 buildings that Travelers considered. “Initially, the Intellicenter building was just like the other options — a building in the right location that could accommodate our space needs,” Maloney explains. “But, once we learned about the potential efficiencies provided by the Intellicenter’s floorplates and building systems, we became more interested.”

Travelers is the first tenant to lease space in one of KDC’s Intellicenter buildings. The Houston building is one of 16 speculative buildings totaling more than 2 million square feet that KDC is building as part of a $250-million development program with Prudential Real Estate Services. In addition to the Houston building, there are three more Intellicenters under development in Atlanta, Dallas and Ft. Mill, S.C. KDC plans to have five more under construction by the end of 2007.

Designed for Corporate America

KDC created the Intellicenter concept after conducting a survey of 40 corporate users, CEO Steve Van Amburgh says. The survey found that most companies are focused on decreasing the amount of square feet allocated for each employee to roughly 200 square feet and are increasingly interested in “green” building.

Every Intellicenter offers 150,000 to 200,000 square feet and the same design features. The buildings provide corporate users with building features previously only available in build-to-suit projects, including: large floorplates to accommodate more employees per square foot, raised-access flooring for under-floor air distribution and easy access to electrical, phone and data cabling, and 30 to 50 percent more parking than conventional buildings.

Intellicenter floorplates, which range from 40,000 square feet to 50,000 square feet, are substantially larger than the 20,000-square-foot and 25,000-square-foot floorplates found in older, conventional buildings.

“The larger floorplate is highly desirable to today ’s corporate user,” Van Amburgh says, pointing out that Travelers was able to decrease its space from 210,000 square feet to about 150,000 square feet because of the Intellicenter’s larger floorplates and increased parking. Intellicenter-Houston will provide six spaces per 1,000 square feet of building space.

“The thing that ultimately differentiated Intellicenter was the efficiency,” Maloney says. “We found that the floorplates were planned very well for high density operations, and the projected operating expense associated with the building systems was very attractive.”

Van Amburgh explains that studies have shown that the combination of raised-access flooring and under-floor air decreases energy usage by 35 percent compared to traditional ceiling delivery. Moreover, raised-access flooring is considered an important element of the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) building rating system, which is widely recognized as the industry standard to evaluate environmentally friendly and sustainable buildings. All Intellicenters will be LEED-certified.

More Benefits for the Same Price

Maloney admits that Travelers was a little skeptical that Intellicenters could provide such extensive operating savings. “Because this was the first Intellicenter building, we had more questions about the performance of the building than potential tenants will later on,” he notes. “Our biggest question revolved around operating expense savings related to the raised floors.”

Travelers challenged KDC to demonstrate the cost savings, and KDC answered that challenge by inviting the Fortune 500 company to visit similar facilities that KDC had built for Citigroup and Chase Bank. “At the end of the day, we found that the Intellicenter economics were comparable with alternative buildings that didn’t offer as many benefits as the Intellicenter does,” Maloney says.

From the moment the members of the Continental Congress signed the Declaration of Independence on July 4, 1776, the United States of America has been known as the home of the brave and the land of the free. Now, 232 years later, our nation remains free, thanks to the millions of exceptional men and women who serve in the five branches of the U.S. military. We are forever grateful.

These brave men and women have made sacrifices to protect our country and ensure that Americans can continue to enjoy the “life, liberty and the pursuit of happiness” that the Declaration of Independence promises.

That’s why KDC is paying tribute to the “American Heroes” who have served our country so diligently and so faithfully, with courage and honor, in times of peace and prosperity and in times of strife and poverty.

At KDC, we believe serving others both in business and everyday life is one of the most important attributes of a good servant leader. And we want to recognize the brave members of the U.S. Armed Forces who inspire us to be better people each and
every day.

This fall, KDC asked clients, coworkers and friends to tell us about those closest to them who have committed to military duty. The only requirement was that no generation be excluded.

We salute, and we thank, each of these “American Heroes:”

HERO: Craig Harris
Craig Harris was in the U.S. Marine Corps from 1989 to 1993 as a second lieutenant. He fought in Desert Storm with the 5th Battalion, 11th Regiment of the 1st Marine Division, and although he was only in his mid-20s, Harris was in charge of a 208-millimeter selfpropelled artillery unit.

After returning from Iraq, Harris received the Navy Commendation Medal, which recognizes sustained acts of heroism or meritorious service in direct contact with an enemy force. He now works for the FBI and, in that role, he has spent time in Iraq and Central America.

Harris was proudly nominated by his brother-in-law Blake Anderson, a senior vice president of Grubb & Ellis Co. in Dallas.

HERO: Stephen Lamar Holley Jr.
Stephen Holley was a lieutenant in SEAL Team 5, based out of San Diego, and led several platoons, including two deployments to Iraq.

“A SEAL is said to be truly the best of the best, being a master in strategy and a professional marksman with rifles, machine guns and knives, but Stephen Holley also has the highest integrity and character of any man you will ever meet,” says his wife, Molly Holley, who nominated him as an “American Hero.” “He proved his physical strength and courage when he became a SEAL, but demonstrated it above and beyond when he led 20 men overseas in the middle of a war and brought them all home safely.”

“Not many men could put up with the physical endurance it takes to become a Navy SEAL, and even fewer could put up with the mental strength and tenacity it takes to do what they do and willingly lead your men into harm’s way in the middle of a war — all to protect your country and loved ones back home,” Molly says.

Molly Holley says her husband always does the right thing and never puts himself first. “Ever since I have known Stephen, he has always put everyone else first … whether that was his country, his teammates, the men he was leading or his family,” she says. “Stephen Holley is my hero.” Stephen Holley is currently a broker with Jones Lang LaSalle in Dallas.

HERO: John Francis “Jake” Laboon
The Rev. Jake Laboon, who served in the U.S. Navy Chaplain Corps, was known as a “man’s man and a sailor’s sailor,” according to Tom Lynch, an executive vice president with Jones Lang LaSalle in Washington, D.C., who nominated Laboon as an “American Hero.”

Known to most as “Father Jake,” Laboon devoted his life of service to God, his country and the Navy. He graduated from the U.S. Naval Academy in 1944. Laboon was assigned to the submarine USS Petoand, during his time aboard the sub, he was awarded the Silver Star for bravery for diving his submarine to rescue a downed aviator under enemy fire. At the close of World War II, Laboon left the Navy to become a Jesuit priest.

In 1958, Father Laboon returned to the Navy as a member of the Chaplain Corps, and during the next 21 years, he served in virtually every branch of the Navy and Marine Corps. His assignments included tours in Alaska, Hawaii, Japan and Vietnam, where he earned a Legion of Merit with a Combat “V.”

When he retired in 1979, Capt. Laboon was the fleet chaplain of the U.S. Atlantic Fleet. When his naval career ended, Father Laboon returned to Annapolis as the house manager for the Jesuit retreat facility, Manresa-on-Severn. His final tour of duty was as pastor of St. Alphonsus Rodriguez Church in Woodstock, Md.

Laboon passed away in 1988, and the Navy honored his memory by naming an Aegis cruiser after him – the USS Laboon.

HERO: Don M. Houseman
Don Houseman fought in the Battle of the Bulge during World War II and was a prisoner of war in Germany until liberation.

“Don Houseman is my role model and someone I fondly look up to,” says his granddaughter, Jenny Houseman of KDC, who nominated him as an “American Hero.” “He has all the qualities of the person I want to become. In all the years I have been alive, I have never heard him complain once.” Don Houseman and his battalion were hit by a concentration of heavy artillery, mortar and rifle fire just after daybreak on Dec. 19, 1944. He was shot in the leg and received multiple shrapnel wounds. Due to blood loss and exhaustion, Houseman passed out and woke up to the sound of German soldiers. While unconscious, one of the ranking officers, who felt Houseman’s battalion was completely surrounded and defenseless for lack of ammunition, surrendered the battalion to the Germans.

From the beginning of the Battle of the Bulge on Dec. 16, nearly a fourth of the men in the two regiments were killed or wounded. By Dec. 21, almost all those not killed had been captured. Fewer than 150 men made it back to American lines. Back home in the United States, Houseman’s family didn’t know whether he was dead or alive. All they knew was that he was missing in action. Fortunately, after four months in captivity, Houseman made it back to the United States.

Jenny Houseman says her grandfather, whom she calls Pop, is always putting others before himself. And he’s also incredibly humble. “He is a true example of a selfless hero and a real leader in my eyes,” she says.

HERO: Jonathan Lawes
West Point graduate and U.S. Army 2nd Lt. Jonathan Lawes is one of the eight members of Christopher Bosley’s family who has served his country. Bosley, a broker in Cushman & Wakefield’s Irvine, Calif., office, nominated Lawes, his cousin, as an “American Hero.”

“Jonathan chose to go to West Point and make a commitment to serve for something greater than himself,” Bosley says. “Although I am older than he is, I look up to him and other Americans who take responsibility for our country’s safety, as well as go into harm’s way with honor and pride.”

Lawes is currently in active duty in Iraq.

Other members of Bosley’s family who have served their country with honor include: his father, Philip N. Lawes III, U.S. Marine Corps; his father-in-law, James J. Woods, U.S. Marine Corps; his uncle, Gordon P. Lawes, U.S. Army; his great-uncle, Perry H. Williams, U.S. Marine Corps; his grandfather, Philip N. Lawes II, U.S. Army; his greatgrandfather, Philip N. Lawes, U.S. Army Calvary; and his other great-grandfather, Frank Williams, U.S. Navy.

HERO: Jack Leide
Jack Leide retired as a U.S. Army major general on Aug. 1, 1995, after serving his country for 33 years. He served four combat tours — three as an airborne company commander and the fourth as Gen. Schwarzkopf’s director of intelligence (J2) for Operations Desert Shield and Desert Storm. He has always been a great servant leader.

His military awards and decorations include the Defense Distinguished Service Medal with one oak leaf cluster, the Defense Superior Service Medal with two oak leaf clusters, the Legion of Merit with two oak leaf clusters, the Bronze Star for Valor with three oak leaf clusters, the Defense Meritorious Service Medal and the Army Meritorious Service Medal with two oak leaf clusters. He also has been awarded the Combat Infantryman’s Badge, the Special Forces Tab, the Office of the Secretary of Defense Service Badge and the Army Staff Badge, and he is a master parachutist.

Leide was awarded the National Intelligence Medal of Achievement for his duties in China and the Liberation Medal First Class by the government of Kuwait for his duties during Operations Desert Shield and Desert Storm. He was also awarded the Central Intelligence Agency Seal Medallion and the National Intelligence Distinguished Service Medal.

Upon retirement from the military, Jack Leide served as president of Global Information Technologies at EDS.

Leide was nominated as an “American Hero” by Philip Romano, a nationally renowned restaurateur. Romano sums up Leide in just a few words: “Jack is just an awesome guy and a stand-up Italian.”

HERO: Tom Lynch
Tom Lynch, who nominated Jake Laboon as an “American Hero,” is also an “American Hero,” according to Jake Ragusa Jr., a senior vice president at KDC, who nominated Lynch.

Lynch spent 31 years in the U.S. Navy before retiring with the rank of rear admiral. Today, he serves as an executive vice president at Jones Lang LaSalle. During his naval career, he served as chief of Navy legislative affairs and commanded the Eisenhower Battle Group during Operation Desert Shield, reporting directly to Gen. Colin Powell. He also served as superintendent of the U.S. Naval Academy from 1991 to 1994 and director of the Navy staff in the Pentagon from 1994 to 1995.

After retiring from the Navy, Lynch joined The Staubach Company (now Jones Lang LaSalle).

HEROES: Kevin McDonnell and Scott Smiley
When Capt. Scott Smiley was blinded by a suicide blast in Mosul, Iraq, in April 2005, Col. Kevin McDonnell sprang into action to make sure that Smiley would not be discharged from the U.S. Army. Even though it would be an honorable discharge, McDonnell knew that Smiley had more to offer the military. McDonnell was made aware of Smiley’s situation by Smiley’s older brother, who served under McDonnell.

With McDonnell’s help, Smiley has become one of only two active servicemen in the U.S. military who is blind. He believes he has a lot to offer the military and says that he doesn’t want to waste his expensive West Point education, which was paid for by the U.S. government and taxpayers.

After being injured, Smiley returned to the United States for rehabilitation. To show his resilience and mental fortitude, he climbed Mount Rainier, the tallest volcano and the fifthhighest peak in the contiguous United States.

In 2007, Smiley was named the Army Times Soldier of the Year, and earlier this year, he was named Best Outdoor Athlete at ESPN’s 2008 ESPY Awards for climbing Mount Rainier.

Smiley currently is working on a master’s degree in business administration at Duke University in North Carolina and plans to teach cadets at the U.S. Military Academy at West Point, N.Y., after earning his degree in 2009. He is a true servant leader and is always putting others first.

“People speak so highly of Scott Smiley,” says Sean McDonnell, vice president of KDC, who nominated both his cousin Kevin McDonnell and Scott Smiley as “American Heroes.” “He’s extraordinary.”

Few people like to move. Even when there are plenty of good reasons to pick up and go, most of us dread moving — all the planning and packing, the uncertainties and unloading. But when that last box has been emptied, and everyone has settled in, most of us can look back and feel content with the decisions we’ve made. Even when it involves relocating a major corporation.

And that’s exactly how Alan Boeckmann feels today, a little more than four years after making the decision to relocate Fluor Corporation’s world headquarters from southern California to North Texas.

“Texas, and more specifically the DFW area, was a perfect fit for Fluor,” says Boeckmann, who has served as chairman and CEO of the FORTUNE 500 company since 2002. “i would say that Fluor’s move to Texas has been extremely beneficial. The best thing about being located in DFW is reflected by the significantly improved morale and attitude of our corporate headquarters staff. Everyone has a pleasant, can-do attitude.”

With revenues of $22.3 billion last year, Fluor is one of the largest engineering and construction companies in the world. Previously headquartered in Aliso Viejo, Calif., for nearly a century, Fluor announced its move to the Lone Star State in July 2005. The Fluor relocation helped push Texas past both New York and California as the state
with the most FORTUNE 500 headquarters.

“One of the contributing factors to Fluor’s decision to leave California was the challenging business environment created by the state and local governments,” Boeckmann says. “The state of Texas has a much more business-friendly outlook, and I am happy that Texas is where our global headquarters is now located.”

Today, Fluor’s corporate home is a three-story, 136,000-square-foot building in Irving, Texas. Situated on 26.8 acres in the prestigious master-planned community of Las Colinas, the facility was developed by KDC on a “fast-track” schedule of only eight months.

The headquarters facility houses 180 of Fluor’s executives and support staff members. The rest of Fluor’s 42,000 employees are scattered across the globe on six continents, tackling some of the largest and most difficult engineering and construction projects in the world. These projects include building the $1.8 billion, 500-megawatt offshore wind farm – the world’s largest – off the coast of England; rebuilding the San Francisco Oakland Bay Bridge, which was damaged during the 1989 Loma Prieta earthquake; and supporting the U.S. armed forces in Afghanistan and Iraq.

Business-Friendly Environment

Throughout his 35-year career with Fluor, Boeckmann spent several years running different parts of the company’s business and has lived in Texas three different times. “I was familiar with and really enjoyed the Texas attitude, culture and way of life,” he says.

Yet Texas locations — specifically Dallas-Fort Worth and Houston — were just two of many places Fluor evaluated for its new global headquarters. Working with Cushman & Wakefield, the firm’s short list also included Chicago; Washington, D.C.; and London, just to name a few.

“DFW won out for a number of reasons — the business-friendly environment of the state, no personal income tax, a world-class international airport nearby, affordable home prices, good weather and an educated and affordable workforce,” Boeckmann says.

When Boeckmann first announced the relocation, he indicated that Fluor chose the DFW Metroplex because of its proximity to key clients and the region’s central location and accessibility to international clients. “Being close to our clients, their offices and their projects is very important to us,” he says. “We can literally be anywhere in the U.S. in a few hours and have access to more than 100 international destinations.”

Today, more than 50 percent of the company’s clients reside east of the Mississippi, and it continues to expand globally, with about 45 percent of new assignments in 2008 coming from projects outside the United States.

With the move, Fluor has been able to reduce travel times, improve its management of corporate functions and enhance its ability to interface with clients, Boeckmann points out. Moreover, the move has allowed Fluor’s senior management to manage the company’s employees more effectively, he explains.

“I do think a headquarters’ location can impact a company’s business in a very positive manner,” Boeckmann says. During the relocation, Fluor lost some employees who elected to not move from California to Texas. However, Boeckmann contends the employees the company has been able to recruit and hire at its new headquarters have surpassed expectations.

“When we were evaluating all our options, being able to replace those employees was one of our biggest concerns,” Boeckmann admits. “The other concern was how the move would impact our culture. Fluor was founded nearly a century ago and has deep roots in Orange County and Southern California. However, we feel we have been welcomed to the DFW business community with open arms.”

Boeckmann says cities and local municipalities play an important role in attracting corporate headquarters and can influence decisions by being business-friendly and helpful to the relocation process. “Early on, the city of Irving and KDC made the effort to understand our needs and what our timeline was,” he notes. “They were very helpful and made every effort to assist Fluor in getting the needed permits and inspections to stay on schedule.”

Also, the city of Irving officials took it upon themselves to rename one of the adjacent streets Fluor Boulevard. “They surprised us with that presentation at a board meeting even before we moved into our new location,” Boeckmann recalls. “It was a very generous and kind gesture.”

Spectacular Facility

Once Fluor committed to the move and KDC was selected to develop the new headquarters, the company had to decide what kind of new headquarters facility it wanted. While the company wanted a building that would reflect its culture, it also wanted to give its employees a first-class work environment.

Clad in natural Texas limestone with an allglass atrium lobby that connects the office wings, Fluor’s new headquarters facility is “spectacular,” according to Boeckmann. In addition to a two-story, covered parking structure, the campus includes a commercial kitchen and dining area, an employee fitness center, a 100-seat auditorium, multiple meeting rooms and a “history walk” depicting Fluor’s nearly 100-year past.

Under KDC’s management, the building was completed on time and on budget.

“Our experience with KDC was already positive,” Boeckmann says. “They made sure that the needed details were taken care of. Since Fluor also builds large, complex structures for our clients, we have a deep understanding for what is expected. Overall, I would give the team a ringing endorsement. It was a job well done.”

Certified by the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system, the facility features sustainable elements such as high-performance glass, windows sunscreens to provide shading and plenty of natural landscaping.

“I think the aspect that I like most is that while it’s a state-of-the-art building that is LEED-certified, we have retained a great deal of the natural topography and native Texas landscape,” Boeckmann says. “Just a few feet from our front door, you can feel like you are walking through part of the Texas wilderness. Also, the use of in-state stone and wood on the exterior and interior makes it truly special.”

Now that Fluor has had time to settle into its new headquarters, Boeckmann has some counsel for other companies looking to relocate: “The sagest piece of advice I could give other executives would be to focus on where you can get the best pool of talent to fill the positions you need and work with a well-known quality developer to help execute your vision for a new corporate headquarters.”