Many factors determine design of ultimate trading floor

Real Estate Weekly, Nov 13, 1996 by Ted Moudis

Based on the need to accommodate changing technology, the process of relocation for financial companies has changed dramatically in the last 10 years. And, since we've directed the programming, interior design and relocation of numerous financial companies and trading floors since the early 1980s, we have developed a road-map of sorts, based on experience, that is intended to ease the relocation journey for financial companies facing the brave new world of real estate and technology.

Getting a Head Start

Lease expirations have a tendency to sneak up on a manager who is busy - justifiably - focusing on business at hand. Though expirations loom large on the horizon, they may actually be too close for comfort when still 18 months away. In a perfect world, financial organizations would begin the process of programming and relocation two years before they had to move. In reality, many companies end up behind the gun, with limited time to identify potential sites and negotiate favorable terms.

But let's get back to that "perfect world," when a company begins the relocation process 18 to 24 months in advance of a move-in date. The first step is to assemble the relocation team. Chances are, this team will be at least twice the size it was the last time a relocation was considered. Today's sophisticated financial organizations recognize that they have one chance in 10 years to got things just right, and the number of variables have ballooned. Where the relocation team of the 1980s may have included an architect, broker, and telephone and computer specialists, today's teams almost always bring together specialists from the worlds of real estate, project management, architecture and interior design, communications, lighting, acoustics, mechanical, electrical and fire protection engineering, audio-visual and construction management. The various members of the team may not all need to begin at the same time or point, but it's important to recognize the contributions these specialists can make to the development of the installation and begin early the process of assembling the right team for the job.

With the core team members assembled, the "programming" process begins. Programming - the process of determining exactly what the company needs and how it functions - ideally takes place before a company enters the real estate market. Vital information is gathered during programming, information that directs a company's search for the space that best suits its needs.

When it comes to financial companies with trading floors and the ancillary support areas, information gathered during programming defines both the physical and the psychological/cultural needs of the user. On the physical side, programming sets guidelines for square footage, ceiling height, electric/air conditioning requirements, column spacing, and core-to-perimeter dimensions. On the other end, understanding a company's culture helps the designer set additional standards for the space search that relate to layout, location and amenities each site affords.

Technology Rules the Day

Technology plays a major role in the programming process, especially when setting the standards for a trading floor. In particular, the trading desk size must be determined up front. The trading desk footprint is established considering recommendations from the communications consultants, based on the size of the equipment, such as turrets (telephone systems), intercom systems and market data screens needed. Once determined, the trading desk footprint sets the gauge for the layout of the trading room. Again, since technology changes so quickly and since most financial firms need to think of maintaining the cutting edge for 10 to 15 years, the desk and its ability to accommodate changing technology must be considered carefully.

Technology applied to and incorporated in the desk can change, but the footprint of the desk remains the same. This is a relatively new consideration for office managers, since up until the late 1980's desks were custom designed and not intended to keep up with changing technology. The footprint of the desk and the layout of the room definitely must be determined before a lease is signed. After all, if the calculations are off by as little as three inches per desk, the trading room might not fit into a given envelope of space.

Power is also a critical programming factor. For a company with a trading operation, the space must provide at least 10 to 15 watts of electric capacity per-square-foot on average, depending on the needs of the trading and computer room areas. Ample air conditioning is another vital concern, since "cool minds" and comfort are important for traders making high-stakes, split-second decisions. Base building air conditioning, normally designed for general office use, is seldom adequate for a trading floor, highly concentrated with bodies and equipment.

When it comes to auxiliary air conditioning, engineers determine the lead anticipated and gauge the availability of condenser water, chilled water, or the need for air cooled units. Auxiliary air conditioning is generally always a must. That's why a company is wise to consider the availability and the extra space it needs for an independent air conditioning system and adequate power to the floor when negotiating a lease.