OCCUPANCY PLANNING

FUNDAMENTALS

OVERVIEW

Occupancy Planning is supply and demand planning for the workplace. Effective Occupancy Planning balances real estate efficiency with business needs and critical adjacencies, including co-location of teams. It's used to determine if a campus, building, or space is utilized effectively. 


Planning Principles

Planning with a global enterprise viewpoint is increasingly important. Planning Standards enable alignment, data accuracy, efficiency, and consistency across the company’s regions. The fundamental drivers are:


Targeted – Enable the enterprise to perform. Understand the functional requirements, adjacencies, and what makes Nike teams unique. Develop tailored solutions to align with specific business needs.


Effective – Maximize the impact of Nike's investment. Be proactive to maintain an appropriately scaled portfolio, at the right time and with the right mix of spaces and services. Balance the needs of the enterprise and specific teams.


Adaptive – Leverage data with expertise to enable a forward-thinking, dynamic planning approach. Embrace flexible planning solutions to anticipate and accommodate Nike's rapidly changing needs.

These business outcomes define successful planning:

  • Capital Planning – The investment roadmap aligns to GPS’ workplace strategy and Nike’s business forecast
  • Portfolio Elasticity – The overall portfolio can absorb increases and decreases in headcount
  • Building Flexibility – Individual locations can accommodate rapid organizational change and support reconfiguration
  • Work Activity Compatibility – Building function, location, and adjacencies are the right fit for teams to do their best work
  • Space Optimization – GPS understands and responds to how, where, and when space is being used to optimize effectiveness


Key decisions for Strategic Occupancy Planning include:

  • Location changes for individual teams or entire sites
  • Opening a new site, renewing a lease, or closing a site
  • Furniture or space reconfigurations
  • Assigning spaces to individuals or projects
  • Increasing or decreasing headcount in a building
  • Changing the function of a site
  • Changing from 1:1 legacy to a shared environment

Site Types

The GPS workplace portfolio has a wide range of location types, which enable the enterprise in different ways. Understanding the intended business outcomes of each site type is helpful for benchmarking, planning, budgeting, space/service design and operations. Retail is not in GPS scope.


Campus Locations: Multiple adjacent Nike buildings with outdoor facilities and parking that Nike maintains. Service spaces, like food halls, event rooms, and sport facilities, are shared between buildings. At corporate sites, teams frequently move between buildings so they need to be built with flexibility in mind.


Stand-Alone Locations: Most often, a portion of a multi-tenant building, but can also be a full building.


The site types below can be within a Campus Location or at a Stand-Alone Location.

CORPORATE

SITES




Office spaces for headquarters (PHK, EHQ, GCHQ, Converse HQ), sales and marketing offices, regional offices, talent hub, etc. GPS Standards include Corporate sites.

SUPPLY CHAIN

sites


Industrial spaces that facilitate the storage and distribution of Nike’s product. GPS scope is focused on Distribution Centers (DC) and Regional Service Centers (RSC). GPS Standards include Supply chain sites.

Image of supply chain sites

SPECIALTY FUNCTION

SITEs


Bespoke spaces that are built for a specific purpose such as Room 72 influencer spaces, photo studio, hangar, product prototyping, etc. These sites are not in GPS Standards.

Planning Activities

  • Global Portfolio Strategy

    Defines GPS vision. Considers the evolution of Nike's business and location strategy to shape the portfolio as a whole. Informs Occupancy Planning.

  • Strategic Occupancy Planning

    Focuses on mid-to-long range plans. Future thinking work to balance supply and demand. Outlines migration and renovation sequencing, and team adjacencies; considers interdependencies between buildings or sites, and investment or divestment of real estate assets. The owner of each key activity may vary by location.


    Key Activities:

    1. Demand Forecasting – Predict needs for headcount, space, and locations typically following intervals based on business needs
    2. Capacity Forecasting (Supply) – Identify how much capacity is available including space optimization opportunities
    3. Scenario Planning – Leverage business, workplace, and occupancy insights to drive optimization scenarios including development of block and stack plans, test fits, etc.
    4. Strategic Road Mapping – Develop recommendations for 5-to-10-year portfolio plan decisions
    5. Real Estate Investment Recommendations – Evaluate investment options and make recommendations for extending leases, divesting properties, or making critical investment decisions
    6. Business Case - Provide information for Appropriations Request (AR) with the necessity and impacts of the project on the portfolio


  • Tactical Occupancy Planning

    Focuses on current conditions and immediate solutions, typically for a specific building or site. Delivers space allocations, moves teams or individuals, manages database information and drawings. The owner of each key activity may vary by location.


    Key Activities:

    1. Presence and Utilization Monitoring – Use GPSI data to monitor building use and determine if changes are needed in space or team allocations
    2. Space Data Management – Maintain and/or verify foundational people and space data to enable informed business decisions and identify actionable insights
    3. Programming - Determine how to tailor the workplace strategy to specific projects and/or resident teams. Use Standard programming ratios as a starting point and identify the types of specialty spaces needed, their sizes, and other requirements
    4. Move logistics – Manage furniture layouts, planning, coordination, and space assignments