The BOMA Magazine - July/August 2011 by lprats

Achieving High Performance Through Innovation

July/August 2011

BOMA 2011: Highlights from the BOMA Conference

Plus: Emergency Preparedness a Decade After 9/11 TOBY速 Regional Winners The Complexities of Gauging MOB Demand

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July/August 2011 Volume 7, No. 4

34 38

BOMA Conference Highlights Laura Horsley BOMA 2011 draws attendees from across the United States and abroad for CRE’s most important education and networking event.

For advertising rates and information, contact Paul Hagen at Stamats Business Media 866-965-4205. Connect with BOMA

10 Years Laura Horsley and Jason Todd Evaluating emergency preparedness a decade after 9/11.

Volume 7, No. 4 The BOMA Magazine July/ August 2011, (ISSN 1532-4346), Copyright 2011. The BOMA Magazine is published bimonthly in January/February; March/April; May/June; July/August; September/October; and November/December by the Building Owners and Managers Association (BOMA) International, 1101 15th St., NW, Suite 800, Washington, D.C. 20005; Telephone 202-3266300; Fax 202-326-6377; www.boma.org. Periodicals Postage paid at Washington, D.C. and additional mailing offices. POSTMASTER: Send address changes to: The BOMA Magazine, Attn: List Department, 1101 15th St., NW, Suite 800, Washington, D.C. 20005. Undeliverable U.S. copies should be sent to: The BOMA Magazine, Attn: List Department, 1101 15th St., NW, Suite 800, Washington, D.C. 20005. Return undeliverable Canadian addresses to: PO Box 875, STN A, Windsor, ON N9A 6P2.

Legislative Update Revised BOMA policies, new leasehold depreciation legislation, the latest on FASB, news from the NAC Conference and more.

Follow BOMA on Twitter:

BOMA Vice President Lisa Prats @ LisaPratsBOMA

Message from the Chair

26 ‘A Team’

Collaborations

Addressing Tomorrow’s Workforce Today.

See BOMA on YouTube: www.youtube.com/ bomainternational

BOMA President Henry Chamberlain @ HenryBOMA

These winning buildings are raising the bar in building management and operations.

DEPARTMENTS

Join BOMA on Facebook Join BOMA on LinkedInJoin the new EER Users Group

TOBY® Award Regional Winners

Around the Industry

Research Corner 2011 EER shows strong asset management balancing dips in income levels.

Eye on Education BOMA’s MOB Conference takes on healthcare reform, capital constraints and regulatory challenges.

50 Trade Tools

Kurt Roeper and April Dalton-Noblitt 7 tips for containing smoke and saving lives.

Leading the Way Wade Lange—education enthusiast, movie buff.

Predicting demand for MOBs proves complicated.

Codes & Standards Update News from the ICC Green Building Code Hearings, ASHRAE Standards under revision, Mixed-Use Standard released.

40 Trends Tracker

State & Local Update Seattle Kilowatt Crackdown winners announced, a full agenda at BOMA California’s Advocacy Day.

BOMA International and the REISAC: CRE’s gateway to the war on terror.

Buyers’ Guide Cutting-edge products and solutions from The Every Building Show®.

SAPOA Conference highlights, the place where real estate meets, on the scene in D.C.

On the Cover: Fox Plaza, Los Angeles, Calif., managed and owned by Irvine Company, was selected as 2011 TOBY® winner in the “500,000-1 Million sq ft” category.

July/August 2011 The BOMA Magazine

Message from the Chair

Addressing Tomorrow’s Workforce Today Optimism was in the air at BOMA 2011. There was a sense from attendees that, although we’re working through a slow recovery, we are finally starting to see things happen—deals are starting to get done, leasing activity is starting to pick up, financing is starting to come back. We still have a long way to go before we approach the market conditions we enjoyed four years ago, and broad recovery will not happen until we have sustained job growth, but we are on the way. The strategies and takeaways from the BOMA Conference have armed us with the innovative tools we need to discover opportunities and carve out our own paths to recovery. For many of us, our optimism is tied to the future of commercial real estate and insuring that we are attracting talented young professionals. We heard keynote speaker David Gergen and BOMA President Henry Chamberlain speak about the important role young professionals and millennials will play in the growth of our industry and the economy. And we were thrilled to see more than 50 students and faculty participating in our second annual Student Day at the conference, a program sponsored by the BOMA Foundation. A core part of the mission of the BOMA Foundation is to encourage education and future workforce development to advance commercial real estate and the profession. The future of our industry’s workforce is on the minds of many. A recent survey of BOMA local leadership found that BOMA’s aging membership and the recruitment and retention of young professionals are among the top concerns. BOMA and the BOMA Foundation are addressing this challenge head on. Last November, the BOMA Foundation held a symposium at Georgetown University on the future of commercial real estate, attracting college students from

The BOMA Magazine July/August 2011

Georgetown and other local universities to attend and learn more about our industry. This fall, we hold our second annual symposium at Georgetown, where the program will look ahead to the workforce of 2025. In addition, the BOMA Foundation has provided a scholarship to the Commercial Real Estate program in the Georgetown University School of Continuing Studies. I’m privileged to take the helm as BOMA International chair as we address workforce issues and communicate the benefits of a career in commercial real estate. It might seem odd to talk about recruitment when so many organizations have come to accept hiring freezes and layoffs as an unpleasant but sometimes unavoidable part of the current work environment. But now is exactly the time for us to be looking forward and crafting a blueprint for how commercial real estate will leverage the opportunities and resources before us today for an even stronger industry tomorrow. And it is one more way that we will achieve high performance through innovation. I look forward to the year ahead. Thank you for supporting our great industry!

Boyd R. Zoccola Chair and Chief Elected Officer

Publisher: Lisa M. Prats, CAE Editor: Laura Horsley Associate Editor: Lindsay Tiffany Contributing Editors: Karen W. Penafiel, CAE, Ronald Burton, James Cox, Jason Todd, Henry Chamberlain, APR, FASAE, CAE, Laurel Schwehr, Tanner Johnston Designer: Amy Belice Published by: Building Owners and Managers Association (BOMA) International

BOMA International Officers Chair and Chief Elected Officer Boyd R. Zoccola Hokanson Companies, Inc. Indianapolis, Ind. Chair-Elect Joseph W. Markling CB Richard Ellis, Inc. Los Angeles, Calif. Vice Chair Richard W. Greninger, CPM Carr Properties Washington, D.C. Secretary/Treasurer Rebecca B. Hanner, CPM, RPA Cassidy Turley Raleigh, N.C. President and Chief Operating Officer Henry H. Chamberlain, CAE, FASAE, APR BOMA International Washington, D.C. Call for Nominations: Vice Chair and Executive Committee Members BOMA International’s Nominating Committee is seeking candidates for the position of vice chair and for five principal members and one associate member of the Executive Committee to the Board of Governors. For further information, contact Ann Coslett at acoslett@boma.org.

The cost for The BOMA Magazine is $75 a year for subscribers and $50 a year for BOMA International members. Publication of advertising should not be deemed as endorsement by BOMA International. The publisher reserves the right in its sole and absolute discretion to reject any advertisement at any time submitted by any party. Material contained herein does not necessarily reflect the opinion of BOMA International, its members or its staff.

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legislative UPDATE

BOMA Board of Governors Revises Two Tax Policies AT BOMA INTERNATIONAL’S ANNUAL CONFERENCE and The Every Building Show®, BOMA’s Board of Governors approved revisions to two policy positions: one on tax incentives for roofing systems, and the second on tax incentives for fire sprinklers. BOMA’s position on tax incentives for roof systems is as follows: BOMA International fully supports tax incentives to promote the installation of new roof systems in existing buildings. BOMA also supports a reduced depreciation schedule for the installation of new roof systems in existing commercial buildings. BOMA’s position on tax incentives for fire sprinklers reads as follows: BOMA International fully supports tax incentives to promote the installation of fire sprinklers in existing buildings. BOMA also supports a reduced depreciation schedule for the installation of these systems.

Congress Introduces Leasehold Depreciation Legislation Legislation that would permanently reduce the timeline for depreciating leasehold improvements to 15 years has been introduced in the 112th Congress. In the House, H.R. 1265 is sponsored by two members of the Committee on Ways and Means, Reps. Jim Gerlach (R-Pa.) and Richard Neal (D-Mass.). In the Senate, S. 687 is sponsored by Sens. Kent Conrad (D-N.D.) and John Cornyn (R-Texas). BOMA continues to work with the Depreciation Fairness Coalition to obtain additional co-sponsors for both bills. In today’s uncertain political and economic climate, it is necessary to demonstrate significant support for a permanent reduction to even be considered by congressional leaders. Absent congressional action before year’s end, the 15-year depreciation schedule that is currently in place will revert to 39 years on Jan. 1, 2012.

BOMA Supports Legislation to Assist Small Banks and CRE This spring, Reps. Earl Perlmutter

The BOMA Magazine July/August 2011

(D-Colo.), Mike Coffman (R-Colo.) and Scott Tipton (R-Colo.) introduced the “Capital Access for Main Street (CAMS) Act”(H.R. 1356), which would help lenders and borrowers work out loans, avoid large sums of commercial foreclosures and free up credit that can be used more constructively. The bill temporarily allows small banks with under $10 billion in assets to amortize losses on commercial real estate over a sevenyear period, freeing up capital to make new loans to small businesses. BOMA International signed on to a letter with others from the commercial real estate and banking industries in support of this important bill and will work to move it forward during the 112th Congress.

FASB and IASB Reverse Lease Accounting Standard Changes The leaders of both the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) said earlier this year that they would take “a few additional months” beyond the initial June deadline to release their decision on how they plan to revise the lease accounting standard and, at the time of publication, continue to review the standard. In April, the Boards took the more than 700 comment letters into account and made changes BOMA International and its coalition partners felt resulted in a much improved leasing standard. The Boards reconsidered the appropriateness of maintaining the existing allocation and presentation of lease costs for the former operating leases, simplified the accounting for short-term leases and limited the accounting definition for renewals and variable rents to include payments that more closely meet the definition of a liability. These decisions reduced the complexity and cost of compliance, made the proposed rules more practical and operational and gave the majority of users the information they said was most useful to make lending and investing decisions. In May, however, the Boards reversed some of these changes, specifically the decision on lessee’s accounting for costs of leases

Chair of BOMA’s Government Affairs Committee Judith Purviance-Anderson announces two new policy positions at the Board of Governors Meeting.

formerly classified as operating leases (rental contracts). In a June letter, BOMA International, along with its coalition partners, voiced its disappointment to the Boards about these changes, concerns over the process and reiterated the need to field test the standard.

Broad Coalition Supports Changes to Energy Tax Incentives On May 5, BOMA International joined a group of more than 85 real estate owners, builders, contractors, building managers, energy service companies, building efficiency manufacturers and suppliers, energy-efficiency financing sources, environmental and efficiency advocates, architects and engineers and other stakeholders to call on Congress to make improvements to the Energy Efficient Commercial Buildings Deduction (Section 179D of the Internal Revenue Code). Under current law, building owners may qualify for a tax deduction of up to $1.80/square foot for energy-efficient upgrades that achieve a 50-percent reduction in annual energy costs to the user, compared to a base building defined by the ASHRAE/IESNA 90.12001 Standard. Partial credit is also available for the three major subsystems of the building (lighting, envelope and HVAC and hot water systems). BOMA International lobbied hard for this tax incentive, but, in practice, the bar has been set so high that it is extremely difficult to achieve, especially for existing buildings. Continued on page 10

legislative UPDATE In February, President Obama announced his Better Buildings Initiative and one of the major planks of this effort was to call on Congress to modify 179D. The May 5 letter to key Senate leaders included ideas for restructuring the deduction to make it more useful and beneficial to the commercial real estate industry and, in turn, promote energyefficiency retrofits.

Senate Energy Bill Introduced On May 16, Sens. Jeanne Shaheen (D-N.H.) and Rob Portman (R-Ohio) introduced S. 1000, the “Energy Savings and Industrial Competitiveness Act of 2011.” Though the bill’s sponsors believe it will promote energy savings in buildings, utilities, industry and

transportation, BOMA International has concerns that its approach in regard to commercial buildings will lead to building codes that are not cost effective and leave the door open for the Department of Energy (DOE) to produce a national model building code, an outcome that BOMA vehemently opposes. For the better part of the past decade, BOMA International has been working to educate Congress that overly aggressive and arbitrary energy-efficiency targets in building codes are an ineffective way to legislate energy efficiency.

Fire Sprinkler Legislation Introduced Legislation has been introduced in both the Senate and the House that would allow for quicker depreciation or expensing of the installation of fire sprinklers in existing buildings. Sens. Tom Carper (D-Del.), Frank Lautenberg (D-N.J.) and Susan Collins (R-Maine) recently introduced S. 1035, a companion bill to H.R. 1792, which was introduced by Reps. Aaron Schock (R-Ill.) and James Langevin (D-R.I.). The legislation would permit buildings to choose whether or not to classify certain sprinkler systems as Section 179 property, which allows for the sprinkler installation cost to be expensed in the year the system is placed in service, or to depreciate it over 15 years. The Small Business Jobs Act (SBJA) of 2010 allows a business to expense up to $500,000 of Section 179 property for tax years beginning in 2010 and 2011.

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At BOMA International’s Annual Conference and The Every Building Show ® , BOMA’s local association in Washington, D.C.—BOMA/Metropolitan Washington (AOBA)—sponsored a raffle for eight pieces of pearl jewelry to raise money for BOMA International’s political action committee, BOMAPAC. We’re pleased to say that this fund-raising effort yielded more than $10,500 to support incumbents in the U.S. House and Senate who support real estate’s issues.

NAC Members Address Trends, Recruitment, FASB 13 and Utilization of Space

to see increased turnover as “trapped” employees with bad managers find new opportunities? Lynn Hood, president of Blakely, Hood & Associates, Inc.; David LeVrier, Hines’ senior vice president and chief administrative officer; and Andy May, vice president of human resources for Wells Real Estate Funds, led a lively panel discussion on how to

attract, reward and retain the best and the brightest.

What do Corporate Execs Really Want? NAC’s corporate real estate panel featured Stan Gibson, senior vice president of Wells Fargo, and Trex Morris, global head of corporate real estate for Ernst Continued on page 12

By Karen W. Penafiel, CAE On April 28-29, BOMA International’s National Advisory Council convened in Miami to discuss industry trends, what corporate clients want, how to attract and retain the best and the brightest and what FASB 13 bodes for the future. Great presenters, strong attendance of industry leaders, very interactive group discussions and a great venue for business networking made it one of the best NAC events ever.

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Following the Cloud The meeting kicked off with author and columnist Gene Marks, who challenged the gathering to follow five trends: 1. Follow the money—keep track of key markets, including wireless, rail, healthcare, energy, education and information technology and watch where government funding is going. 2. Accept inflation—lock in supplier contracts, employees and make the buy and get financing now. 3. Watch what is happening in Washington (“Watch C-SPAN”). 4. Follow the numbers and experts— zero in on websites, blogs and other sources of trend information, such as the Consumer Confidence Index, Dow Jones Economic Sentiment Indicator and Aruoba-Diebold-Scotti Business Conditions Index. 5. Adapt to the “cloud”—the virtual office is the business model of the future.

The Employee Trap Throughout this past recession, most BOMA member companies have been grappling with talent recruitment and retention issues. Years of forgone raises and bonuses (for the lucky) and pay cuts or pink slips for the less fortunate have taken their toll on the industry. As the economy recovers, can we expect

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legislative UPDATE

For the past few years, American corporations have seen intense pressure to reduce operating costs and that is expected to continue for at least a couple more years as investors continue to raise the bar on profitability.

& Young. For the past few years, American corporations have seen intense pressure to reduce operating costs and that is expected to continue for at least a couple more years as investors continue to raise the bar on profitability. Depending on the facility location, Ernst & Young is trying to keep operating costs to two to eight percent of overall costs and is pushing for 100 square feet per worker (smaller spaces, hoteling, working from client locations, etc.). In terms of operating costs, both companies cited people as their No. 1 expense, followed by technology and then real estate. Universally, they are planning for people to be more mobile and are trying to increase flexibility by leveraging technology.

It’s Not Just for CPAs and CFOs … So what exactly is going on with the new draft accounting rules (FASB 13) and how will they affect the way we do business? A panel of experts included Steve Harding, CFO for Transwestern, and Margo McConnell, CPA, director of global transaction consulting for

Cushman & Wakefield of Florida, Inc., and was moderated by BOMA International’s CFO Brian Green. Among the issues addressed by the panel were how leases will be treated on balance sheets, how tenant renewal options will be reported and what impact these reporting changes could have on asset values, tenant abilities to take on lease liabilities and the length of leases.

See you Next Time? The National Advisory Council, chaired by John Oliver, managing director, Wells Real Estate Funds, is made up of senior executives from the nation’s largest companies that own and manage commercial real estate. The NAC Fall Conference is being planned for October 13-14, 2011, at the St. Regis Monarch Bay in Orange County, Calif. For more information about membership in NAC, contact Karen Penafiel at (202) 326-6323 or kpenafiel@boma.org. To see meeting presentations and materials, go to www. boma.org/membership/nac.

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The BOMA Magazine July/August 2011

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state & local update

2011 Seattle Kilowatt Crackdown Winners Announced

1201 Third Avenue, Wright, Runstad & Company, Grand Prize Winner of the 2011 BOMA/Seattle King County Kilowatt Crackdown.

In June, BOMA/Seattle King County announced the winners of the 2011 Kilowatt Crackdown competition, with the Grand Prize Winner of the Kilowatt Cup, a unique sculpture made of recycled materials, awarded to Wright, Runstad & Company. A jury awarded the company the prize for saving 30-percent more energy than its closest competitor and for having the largest participating portfolio of any company in the competition. The Climate Leader Award, recognizing the building that made significant strides in tracking and managing its carbon footprint (as measured by the City of Seattle’s Carbon Footprint calculator), was awarded to the 4th & Madison building, managed by Hines. The 4th & Madison building has also achieved the BOMA 360 Performance Program® designation. “The Kilowatt Crackdown is widely acclaimed as a successful example

of a voluntary and effective campaign to implement energy-efficiency measures in commercial real estate,” says Rod Kauffman, president of BOMA/ Seattle King County. “BOMA/Seattle King County, in partnership with the Northwest Energy Efficiency Alliance’s (NEEA) BetterBricks initiative, pioneered the Kilowatt Crackdown, which has not only engaged several hundred building management professionals and owners in improving energy use in their Puget Sound area portfolios, but has now been implemented in several other U.S. cities.” Sponsored by BOMA/Seattle King County, several Puget Sound utilities and the BetterBricks initiative, the Kilowatt Crackdown is a two-year competition that challenges property managers and building owners to demonstrate their leadership in energy-efficient building operations. Participants assess their Continued on page 16

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The BOMA Magazine July/August 2011

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state & local update facilities’ energy performance using ENERGY STAR® Portfolio Manager and work to improve that score over a twoyear period. This year’s winners were selected from 71 eligible buildings representing more than 21 million square feet of office space. The projected annual electrical savings for these facilities is more than 24 million kWh, or about six percent of their entire energy use. The second phase of the competition, to be

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completed in May 2012, will select winners from 138 eligible facilities located in 17 cities across the region. These additional participants represent more than 30 percent of the region’s entire office market. Commenting on the success of this year’s competition, Jack Davis, senior manager, JDM Associates, who administers the competition on behalf of NEEA, says, “The Kilowatt Crackdown has

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exceeded our wildest expectations. By tapping into the competitive spirit of the real estate industry, these voluntary campaigns focus and accelerate energy and cost savings in local buildings. It’s a winwin for business and the environment.”

BOMA California Advocacy Day In late June, advocates from all BOMA local associations in California convened in Sacramento for the California Commercial Real Estate Summit. More than 90 industry leaders, representing the commercial, industrial and retail sectors, joined forces for this two-day event to strategize on how to defeat measures targeting the real estate industry, including split-roll property taxes. Attendees met with legislators and Governor Jerry Brown’s staff and learned more about issues impacting commercial real estate in California. Among the list of issues dominating the coalition’s agenda this legislative session is its opposition to Assembly Bill 350, a measure requiring that select building employees (security guards, landscapers, window washers, food service workers and a catchall of “building services”) be protected from employment disruption anytime a service contract changes from one company to another. BOMA California and its industry partners also actively opposed Senate Bill 469, which would use environmental laws to restrict certain kinds of retail development and diminish local government control over such planning decisions. Finally, BOMA representatives opposed Senate Bill 474, which would eliminate a general contractor’s and property owner’s ability to seek indemnity and defense from subcontractors in non-residential construction. If passed, this legislation would shift all liabilities for lawsuits to owners and general contractors, shielding even negligent subcontractors. “The Commercial Real Estate Summit brings together industry leaders for a comprehensive legislative review and gives us an opportunity to honor legislators who have made positive impacts on California’s real estate industry, as well as visit with our local representatives to make them aware of vital industry issues,” says Ray Magnussen, president of BOMA California. “In a time when we are all struggling to preserve the health of the state’s commercial real estate industry, we need to communicate and educate our lawmakers on the significance of pending legislation and the impact to the overall economy of California.”

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Codes & Standards Update

ICC Green Building Code Hearings BOMA was successful on many of its objectives representing the interests of BOMA members and the commercial real estate industry during the first round of hearings for the International Green Construction Code (IgCC) held this past May in Dallas. The IgCC is designed as an “overlay” to existing ICC building codes and covers all buildings except low-rise residential. Over seven days of hearings in Dallas, IgCC code development committees on two tracks (Energy/Water and General Provisions) heard more than 1,350 proposals to modify the second draft of the IgCC. Committee recommendations, along with successful floor motions, will be balloted by ICC voting members during Final Action Hearings scheduled for November 1-6 in Phoenix. The first consensus edition of the IgCC is then

scheduled to be published early in 2012. Major successes for BOMA during the Dallas hearings included committee disapproval of the following proposals:

• Inclusion of extremely onerous building envelope insulation levels.

• Post-occupancy commissioning compliance via five-percent performance bond, 10-percent property tax penalties and 10-percent utility rate penalties.

• Deletion of option for use of ASHRAE Standard 189.1 as an approved path for compliance with the IgCC.

• Additional 10-percent insulation level on all roof replacements. • Numerous proposals by the concrete/ masonry industry to mandate disaster mitigation measures in all buildings. • EPA proposal to limit on-site diesel engine emissions. • Extensive rodent proofing and chemical management requirements. • Onerous IAQ measures during construction. • Elimination of plenum construction. • Elimination of option for purchased renewable energy credits to satisfy renewable energy requirements. • Increase in the “service life” of buildings to 75 years.

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• Extensive energy metering and tenant disclosure of energy usage.

BOMA also secured floor motions to successfully overturn negative committee actions on BOMA proposals to: • Delete the mandate for building owner education manuals to remain in the building throughout the life of the structure. • Delete requirements for a 14-day “flush-out” period for the HVAC system prior to occupancy, while maintaining comfortable interior temperature and a maximum 60-percent humidity level. • Eliminate “no smoking” signage at the front of all buildings. Comments and challenges on the results of the Dallas hearings are due August 12. BOMA intends to challenge Continued on page 20

Published case studies have shown after retrofitting with Griswold Controls’ pressure independent control valves, universities, athletic centers, airports, and other facilities have: • Improved chIller ∆T • conserved energy • Improved comfort A university using pIc-v® and mvp™ pressure independent valves ran their athletic center with 24gpm of chilled water, less than 10% of design flow. Chiller ∆t has been as high as 31ºf.

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The BOMA Magazine July/August 2011

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Codes & Standards Update committee disapproval of BOMA proposals to:

• Reference the BOMA suite of floor measurement standards in the IgCC.

• Eliminate provisions for existing buildings, existing building site development and all sections dealing with acoustics.

• Give the owner the sole discretion on the use of ASHRAE 189.1 as an alternative compliance path.

• Delete all post-occupancy commissioning requirements. • Delete 100-year “design life” period.

BOMA also intends to challenge committee approval of restrictions on sale of properties that do not comply with the IgCC.

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ASHRAE Standard 100 (Energy Conservation in Existing Buildings) and Standard 188 (Prevention of Legionellosis Associated with Building Water Systems) are both being revised. Project committees for these standards are directing the revision process, with BOMA International keenly interested in protecting the interests of BOMA members and the larger commercial real estate industry as these efforts proceed. BOMA has submitted comments for the second public review of Standard 188, which closed on July 25, and will work with the committee to address our concerns. An “advisory” public review was conducted for Standard 100, and BOMA expects to submit comments for the first formal public review of the proposed revisions to the standard once the committee finalizes their proposals. Watch this space, as well as BOMA’s e-News, for further updates as the revision process goes forward.

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The BOMA Magazine July/August 2011

Mixed-Use Properties: Standard Methods of Measurement (2011) is now available in BOMA’s Online Store (http:// shop.boma.org). This standard provides a uniform methodology for computing, communicating and comparing the measurement of mixed-use properties, a standard designed to meet the needs of architects, appraisers, space planners, interior designers, engineers, property owners and managers, leasing professionals, asset managers and others associated with mixed-use properties.

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Participants Needed: Research on Reduced Water Flows Experiencing blockages in your drain lines that could be attributed to reduced flows from the retrofit of water-saving plumbing fixtures? The Plumbing Efficiency Research Coalition (PERC) is conducting a research program to determine the implications of reduced water flows in building drains and evaluate the use of higher-volume discharges at intermittent intervals as a potential way to effectively clear those lines. If you have experienced such problems, contact Ron Burton rburton@boma.org for further information on participation in this research project.

leading the way

Wade Lange Education Enthusiast, Movie Buff

WADE LANGE, FMA, RPA, CPM IS VICE PRESIDENT OF PROPERTY MANAGEMENT with Ashforth Pacific, Inc. in Portland, Ore. He served as the president of BOMA/Portland in 2006, where he is currently the board liaison to the Sustainability Committee. On the international level, he has served on the Local Association Services Committee, the State Government Affairs Advisory Council and the Education Committee. Lange is currently serving as co-chair of the Education Advisory Council and the Sustainable Operation Series Task Force, and is a member of BOMA International’s Executive Committee.

Looking at your involvement with BOMA, education seems to be your passion. How did you get started? I started as a building engineer and, in 1978, I started taking some of the SMA courses through the local BOMA office in Portland. During that first exposure to BOMA, I really found the value in the people that I met and used them as a resource. I have been a member ever since and, wherever I went in my career, BOMA was always right there with me and, in some cases, helped me grow in my career and find opportunities. Education was my introduction to BOMA and I felt it was an important part of what BOMA offers its members. Being involved locally led me to the national Education Advisory Council that I’ve been on for a number of years now. The people that you meet there are extraordinary and are always a resource. Education is still a very large part of what BOMA does.

The BOMA Magazine July/August 2011

What are some emerging issues property professionals need in training to succeed in today’s market? Property managers are now being viewed more as asset managers. They are being handed more responsibility for the financial performance of their assets at a level I don’t think they have been asked before. That means that a stronger understanding of the asset’s total financial performance is critical for property managers. They need to be able to talk the language of the asset managers. The other important issue is technology. As new buildings come up and as codes require, technology is leading the way in a lot of these buildings—not only in building operations, but also in the way that we as professionals communicate and get work done day to day. Those are the two prime areas where property managers should be focused.

You helped develop BOMA International’s Sustainable Operation Series (SOS). How important will sustainability be in the future for commercial real estate? It’s going to be part of what we do to the extent that we won’t even think about it. Managing a building as sustainably as possible is going to be as commonplace as having elevators in a highrise. I envision a time when you go to a BOMA conference and you don’t have segments talking about sustainability. Instead, it will be integrated throughout everything you see because it will be so mainstream.

How do you get the most out of your BOMA membership? I think back to that first SMA course I took in Portland in the late ’70s, and there are a few people from that class that I am still in touch with. That, in a nutshell, is really the power of BOMA. First, last and always, BOMA is about the people. We have an incredible network at all levels within the real estate industry. As I’ve grown on the international side of BOMA, I’ve come into contact with more and more people around the country. I’m learning that everybody deals with the same issues and problems. There are stories to tell and lessons to learn across the country from everybody who is engaged in real estate. BOMA opens up those doors for you so that you can pick up the phone and talk to anybody and you have a relationship with those people because you are BOMA members.

What is something that most people don’t know about you? Back in the mid-’70s I was accepted into the UCLA School of Film and turned it down. I love film and I read a lot about it. Years ago, I’d probably see 10 or 12 films a week—and this was all in the theater. Now, I still love it but watch mostly on DVD. Maybe someday, when I grow up, I’ll do something with film.

Around the industry

SAPOA Conference Highlights Technology, Human Capital Challenges BOMA International Chair Ray Mackey and BOMA PRESIDENT HENRY CHAMBERLAIN recently attended the South African Property Owners Association (SAPOA) Conference in Capetown and presented “Is this a great recession or will the recession make us great?” The SAPOA conference was a huge success and provided a great venue for networking and education. South Africa’s GDP growth is projected at approximately 12 percent this year, but unemployment is 25 percent and the

BOMA International Chair Ray Mackey and President Henry Chamberlain during the SAPOA Conference.

The BOMA Magazine July/August 2011

economy is just getting by. Similar to the United States, they see the recovery taking hold in the second half of next year. Look for it: A full recap of the SAPOA Conference will run in the Sept./Oct. 2011 issue of The BOMA Magazine.

Where Real Estate Meets On June 3, BOMA International hosted the Real Estate Associations Executive Summit. Leaders from major real estate associations discussed several key issues, such as membership growth and conference attendance, leveraging social media, changes in education delivery, changes in the ratio of dues and non-dues revenues and collaborating on careers in real estate. Association participants included: AFIRE, AHLA, AI, AIA, ASID, BOMI, CCIM, CoreNet Global, CREFC, CREW, CSI, ICSC, IFMA, IREM, NAIOP, NAREIT, NMHC, Realtors (Commercial and Land Institute), RER, RICS, SIOR and ULI.

On the Scene in D.C. BOMA President Henry Chamberlain participated in BOMA/Metropolitan Washington’s (AOBA’s) annual TOBY® Awards Luncheon in June. TOBY winners included 1250 24th Street, managed by Cassidy Turley, in the Earth category and 1625 Eye Street, managed by Brookfield, in the grand winner category. Keynote speaker GSA Regional Commissioner Cathy Kronopolus told attendees that GSA is modernizing its headquarters building to provide more green, flex space to meet the demands of a more mobile workforce.

From left: GSA Regional Commissioner Cathy Kronopolus, BOMA Metropolitan/Washington EVP Peggy Jeffers, BOMA President Henry Chamberlain and BOMA/Metropolitan Washington President Ben Comm.

Stay on Top of Fire Codes to Keep Your Building Safe Safety signs are essential to any businessâ&#x20AC;&#x2122;s signage package. Fire safety should be a top concern for property managers and owners. One of the easiest ways to ensure the safety of your employees and patrons is with compliant signage. And, while you likely had the property inspected before opening the doors, it is a good business practice to regularly revisit your safety signage to ensure you are still compliant with the latest fire codes and regulations. Fire safety, as it relates to the signage industry, is the ability to assist facility occupants with exiting the building as quickly as possible in the event of a fire or other hazard through effective signage. Exit signs should be placed near doors that provide the quickest and safest way out of a building. The exit signage should also be able to operate in the case of a power outage.

Signage can also help reduce the damage caused by fires by supporting the responding firefightersâ&#x20AC;&#x2122; efforts through the identification of fire detection, suppression or control elements such as sprinklers, risers and valves, hoses, etc. Fire codes vary from state to state and even by city. For the most accurate assessment, contact your local fire department and request a fire safety evaluation. Not only will they be able to tell you where signage is needed, they can inform you of other policy measures that need to be taken in order to get up to code.

Pictured Left: A sign marks a fire zone area outside a commercial building. Such signs are among the safety signs required by law.

SIGNARAMA is well-versed in safety signage including fire and exit signs. Contact your local SIGNARAMA today! Find your nearest store at www.signarama.com/locations or call 1-866-360-7446.

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‘A TEAM’ COLLABORATIONS

BOMA International and the REISAC: CRE’s Gateway to the War on Terror By Jason Todd THE SEPTEMBER 11, 2011, ATTACKS on the World Trade Center and Pentagon forever changed the way all Americans viewed terrorism, especially those involved in the office building industry. BOMA International and other industry organizations have worked with government officials to prevent, detect and respond to terrorist threats and malicious incidents. What resulted was the creation of a not-for-profit organization called the Real Estate Information Sharing and Analysis Center (REISAC). Established in 2003, the REISAC, of which BOMA International is a founding member, is a public-private partnership between the U.S. real estate industry and federal homeland security officials that helps facilitate information sharing on terrorist threats, warnings, incidents, vulnerabilities and response planning to counter-terrorism and protect buildings and the people who occupy and use them. Members of the REISAC include the American Hotel & Lodging Association; American Resort Development Association; BOMA International; Institute of Real Estate Management; International Council of Shopping Centers; National Apartment Association; NAIOP, the Commercial Real Estate Development Association; National Association of Real Estate Investment Trusts; National Association of Realtors®; Real Estate Board of New York; and The Real Estate Roundtable. It is important to note that other industries operate ISACs in partnership with the federal government as well. These include the financial services, electric power, oil and gas, water, telecommunications, information technology, chemical and food sectors.

BOMA International and its members work with the REISAC to achieve objectives that no single industry organization could accomplish alone. 26

The BOMA Magazine July/August 2011

The framework for all ISACs to protect America’s “critical infrastructures” from terrorist and other malicious attacks was initially established prior to 9/11 through a Presidential Decision Directive signed in 1998 and an Executive Order issued by President George W. Bush that strengthened it. It is critical to the nation’s security that BOMA International and its members work with the REISAC to achieve objectives that no single industry organization could accomplish alone by bringing together industry representatives and the government to aggregate, share and assess information on terrorism. Specifically, the REISAC serves three roles: • To disseminate information from the federal government, including terrorist alerts and advisories, to BOMA International members and the other real estate industry participants, and bring government officials and building owners and operators together to assess and evaluate information so it’s more useful and actionable for real estate. With timely and validated intelligence, BOMA International members are better prepared to develop and activate their own counter-terrorism activities, including steps to protect their buildings and tenants. • To facilitate real estate’s reporting to government authorities of credible threats to real estate assets, and enable analysis of the information to detect patterns or trends, and to develop potentially coordinated action steps. • To bring private- and public-sector experts together to share useful information and discuss and develop best practices and solutions on specific issues affecting sub-sectors (such as retail or office property owners) or to discuss issues such as risk assessment, asset fortification, building security and emergency response planning. Of these three roles, the REISAC most frequently provides its members alerts and other informational bulletins on

a variety of threats. This information can originate within the Department of Homeland Security (DHS) or from a REISAC member. To ensure reports are relevant and appropriate, security experts have developed a standard protocol for reporting threats and incidents against real estate assets. The reports of all incidents must meet the “Basic Criteria” and meet a minimum threshold. Once it is determined that the event meets the Basic Criteria, the report must also meet one or more criteria or thresholds. The thresholds include: intelligence gathering, terror/bomb threats, unauthorized access, public health/HVAC incidents, thwarted terrorist attacks, suspicious mail or delivered package contamination, extended service outage, official threat warning, suspected arson and discovery of suspicious bombmaking materials. BOMA International members can submit a report and access REISAC bulletins housed on REISAC.org by first logging into BOMA.org, then visiting the “Security and Emergency Preparedness” portion of the site and finally clicking on “Security Alerts.” This will take you to the REISAC website. When a report is considered by DHS to be more significant or critical to the industry, an Alert is pushed out to the entire REISAC membership. To date, the REISAC, in coordination with the DHS, has issued more than 250 alerts and bulletins to its members. Through this partnership, BOMA International provides its members an avenue through which they can be active participants in the war on terror and receive timely and accurate information to protect buildings and tenants. Learn more about REISAC by visiting www.reisac.org. About the Author: Jason Todd is director of Federal Affairs at BOMA International. He can be reached at jtodd@boma.org.

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Project Management for Sustainable Initiatives Energy Management: Approaching Net-Zero Water Conservation: The Future of Sustainable Operations The Sustainable Supply Chain IEQ: Clearing the Air Sustainable Operations: How to Green Day-to-Day A New Day, A New Baseline Case Study Featuring Real-World Situations

BOMA Conference Highlights BOMA 2011 Draws Attendees from Across the United States and Abroad for CRE’s Most Important Education and Networking Event By Laura Horsley Traveling from as far away as South Africa and China to as close as Baltimore and New York, attendees took part in the industry’s best education, gained insight from worldclass experts and speakers, learned about cutting-edge solutions from premier service providers and exchanged ideas and knowledge within the industry’s most important business network at the 2011 BOMA International Conference and The Every Building Show®, June 26-28, in Washington, D.C.

BOMA President Henry Chamberlain discusses real estate resets during the State of the Industry address.

Speaker Insights BOMA President Henry Chamberlain delivered the annual State of the Industry address during the Monday General Session sponsored by Yardi. Chamberlain discussed the key resets that need to take place to make commercial real estate in the United States more competitive in the global marketplace, including a greater focus on emerging technologies, green solutions, alternative workplace environments and bringing young professionals into the industry.

Keynote speaker David Gergen.

During the Sunday General Session sponsored by the AOBA Alliance and Constellation Energy, keynote speaker and political analyst David Gergen gave attendees an insider’s look at the 2012 political landscape and discussed core issues elected officials and voters are grappling with, including the sluggish recovery, the growing national debt and the unwillingness of politicians on both sides of the aisle to make tough choices. “The politicians don’t want to do what’s hard; they’re just kicking the can down the road,” said Gergen.

Also during the Monday General Session, keynote speakers Michael Fascitelli, president and CEO of Vornado Realty Trust, and renowned economist Peter Linneman, Ph.D. took part in a lively dialogue on key issues affecting both commercial real estate and the overall economy, such as inflation, investment concerns and the success of gateway markets like New York, D.C. and Texas compared to the greater U.S. marketplace. Speaking on global issues, the duo also discussed the global debt problem, noting that the United Kingdom is one of the few countries taking on the “hard answers.”

Dynamic Dialogue: Peter Linneman (left) and Michael Fascitelli.

The latest BOMA 360 designees take the stage.

BOMA 360 Designees Take the Stage BOMA 360 Council Chair Dan Chancey honored the latest and the largest class of BOMA 360 designees during the Monday General Session. Since the BOMA 360 Performance Program® began two years ago, more than 300 buildings have received the BOMA 360 designation. “More designees are telling us that BOMA 360 is helping differentiate their buildings in a competitive marketplace,” said Chancey.

The Every Building Show

It was standing room only at BOMA education sessions.

Premier Education Attendees participated in more than 40 education sessions across five subject tracks. Led by sought-after industry practitioners and subject matter experts, attendees came away with best practices and solutions to help them achieve operational excellence, retain tenants and hone leadership skills. Packed education sessions focused on a variety of topics, from meeting the demands of regulations and mandates to sustaining high-performance buildings to leveraging smart technology for better operational performance.

At The Every Building Show®, produced by BOMA International and Buildings magazine, more than 460 exhibits of innovative solutions benefiting all types of buildings were showcased in an impressive learning laboratory. Attendees met with leading suppliers to learn how to increase operational efficiencies, enhance property values and reduce costs, and experienced state-of-the-art products, services and technologies targeted to their needs. Richard King, senior property manager with Colliers Arnold, noted, “I’m meeting lots of vendors and getting lots of deals done. This is definitely BOMA International at its best.”

Continued on page 30

July/August 2011 The BOMA Magazine

Boyd R. Zoccola, executive vice president, Hokanson Companies Inc., was formally sworn in as the 2011-2012 chair and chief elected officer of BOMA International during the ceremony. In his acceptance speech, Zoccola told BOMA members, “I look forward to the year ahead. Together we will ‘Achieve High Performance through Innovation’!” The TOBY Awards Reception was sponsored by Scientific Conservation and the TOBY Awards and Banquet was sponsored by Kimberly-Clark Professional*, program sponsor through 2014. TOBY winners in the Corporate Facility category represent the Hearst Tower in New York City.

Excellence Honored During TOBY Awards The stars of the commercial real estate industry came out during the TOBY® Awards Reception and Banquet. The Outstanding Building of the Year® (TOBY) Awards are the most prestigious and comprehensive program of their kind in the commercial real estate industry, recognizing quality in office buildings and rewarding excellence in office building management. Winners were chosen in 14 categories. See the regional TOBY winners on pages 38-39 and see the complete list of international TOBY winners in the September/October issue or at www.boma.org. Former BOMA President Stephen P. Hokanson (199193) swears in Boyd Zoccola as 2011-2012 BOMA chair.

Other Highlights

BOMA Chair Ray Mackey, Jr. presents the Chair’s Award to Joe Marchant.

During the TOBY Awards Banquet, BOMA International Chair Ray H. Mackey, Jr. presented the annual Chair’s Award to retiring Executive Vice President of BOMA/Dallas Joe Marchant. Said Mackey, “Joe has been an inspiration to so many of us throughout the association. His thoughtful insights, friendly encouragement and artful persuasion have propelled all of us to achieve greater things.” Three Outstanding Members of the Year from three BOMA regions were also honored:

BOMA 2011 featured the second annual Student Day, sponsored by the BOMA Foundation. More than 50 students and faculty from nine different real estate programs attended the conference to learn and network. Local host BOMA/Metropolitan Washington (AOBA) helped raised more than 10,000 for BOMAPAC during the Pearls of Wisdom fund-raiser.

Middle Atlantic Region—James R. Kleeman, RPA, general manager of Time Warner Center, Related Management Company, LP, BOMA/New York. Southern Region—Angel Miller, RPA, property manager, Highwoods Properties, BOMA/Raleigh-Durham. Southwestern Region—Dan Yates, RPA, regional manager, Gaedeke Group, LLC, BOMA/Dallas.

The BOMA Magazine July/August 2011

College students enrolled in real estate curriculum are all smiles during the Monday General Session.

Continued on page 32

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Toll Free 1.888.539.7226 www.keyscan.ca July/August 2011 The BOMA Magazine

BOMA Conference Highlights Taking Care of Business Town Hall Membership retention and recruitment and strategies for growing non-dues revenue were key topics during the Town Hall Meeting led by BOMA Chair Ray H. Mackey, Jr. and BOMA President Henry H. Chamberlain. Results of a recent Local Leadership survey were discussed, which showed that top concerns facing local associations include the economy/ budgets, finding time to participate and recruiting young professionals into the industry. In fact, 82 percent of survey respondents indicated that, although member retention was going well, they were having difficulty attracting new members, particularly young professionals. Survey results also found that 72 percent of respondents indicated that BOMA membership has a better return on investment vs. competing associations. Town Hall attendees participated in small group brainstorming workshops that focused on strategies to build membership, ideas for generating more nondues revenue and how BOMA International can help provide resources and services. Participants came up with several ideas, including:

BOMA Secretary/ Treasurer Kent C. Gibson, CPM gave the 2011 Financial Update, reporting that membership is projecting slightly better than budgeted, and that several BOMA BOMA Secretary/Treasurer Kent Gibprograms, includ- son gives the Financial Update. ing the Partnership Program, the Medical Office Buildings (MOB) and Healthcare Facilities Conference, the BOMA 360 Performance Program® and the Preventive Maintenance Guidebook and Retail Standard publications, are all performing well and many are exceeding budget predictions. A bylaw amendment was unanimously approved to add a voting seat on the Executive Committee for a BOMA Associate member.

• Work closer with colleges/universities with real estate programs to market the industry. • Include more young professionals on local boards and committees. • Host vendor-sponsored “ask the expert” seminars to generate revenue. • Provide further Web support to BOMA locals by BOMA International and create more templates of policies, procedures, RFPs and best practices.

Board of Governors Highlights BOMA Chair and Chief Elected Officer Ray H. Mackey, Jr. presented BOMA/Dallas Executive Vice President Joe Marchant with the Distinguished Service Award.

The BOMA Magazine July/August 2011

Executive Vice President of BOMA/Metropolitan Washington Peggy Jeffers accepts the BOMA 360 Local Association Award.

BOMA 360 Council Chair Dan Chancey presented BOMA 360 Local Association Awards to: • BOMA/Houston in the 300 Members or More category with 38 buildings.

o BOMA/Dallas received an honorable mention in this category with 31 buildings. • BOMA/Orange County in the 150 to 300 Members category with 10 buildings. • BOMA/Wisconsin in the Less than 150 Members category with seven buildings. • BOMA/Metropolitan Washington in the Most Corporate Submissions category with 18 submissions from Brookfield Properties. Chancey also announced the kick-off of the BOMA 360 Ambassadors Program, which helps vendors and suppliers to commercial real estate connect with customers by serving as a valuable resource to BOMA and to BOMA 360 applicants and designees. BOMA Chair-Elect Boyd Zoccola reported that the 2011 Medical Office Buildings (MOB) and Healthcare Facilities Conference saw a 20-percent increase in attendance with 650 attendees and exceeded sponsorship goals by more than 20 percent. Read more about what happened at the MOB Conference in “Trends Tracker” on pages 40-41 and “Eye on Education” on page 44. The Board of Governors passed two new policy positions on Roof Tax Incentives and Fire Sprinkler Tax Incentives. See page 8 for more on these policy positions. Chair of the IDF Oversight Committee Cary Fronstin announced the approval of IDF requests for Lead Paint Regulatory Effort, Stormwater Regulatory Effort and Broadband Plan Implementation. Guest speaker Bob Peck, commissioner, Public Buildings Service (PBS), U.S. General Services Administration (GSA), addressed Board of Governor delegates on the latest news and Bob Peck, commissioner, Public trends from the public Buildings Service, GSA. building sector, including recovery act spending, smart security, transit-oriented development and sustainability. Peck noted that GSA views its real estate portfolio as a “proving ground” to test and evaluate innovative technologies and practices. Other guest speakers included Chair of BOMA Canada Wendy Cardell and Kevin Roman, president of the South African Property Owners Association. Chair of the Building Codes & Voluntary Standards Committee Bill Moebius reported that BOMA’s appeal of the 2010 Final Action Hearings for the International Energy Conservation Code helped secure the recent approval of changes to the ICC process recommended by ICC’s Code Development Process Committee. Read more about the Codes Hearing in “Codes & Standards Update,” pages 18-20. Moebius also reported that BOMA is actively involved in the development of the next edition of ASHRAE’s Green Commercial Building Standard 189.1 scheduled for release later this year.

Zoccola reported that BOMA International membership is up 0.75 percent after declines in 2009 and 2010; BOMA/Central Pennsylvania was added as the 93rd BOMA local association in January; and National Associate Member (NAM) membership is up almost 10 percent. Zoccola also announced the 2011 Best Practice Award Winners: • Marketing Communications category: BOMA/Atlanta for its GREEN Real Estate Summit. • Communications Management category: BOMA/Atlanta for its partnership with HomeAid and the Genesis Shelter Project. • Electronic & Interactive Communications category: BOMA/ San Francisco for its videos documenting best sustainable operating practices.

BOMA/Atlanta receives Best Practice Awards in two categories.

• Media Relations/Issues Crisis Management category: BOMA/Austin for its “2010 in Review” public relations effort. BAE Council Chair Pat Schwarze reported that the BAE meetings addressed the important topic of managing shrinking or stagnant resources, improving education programs and providing new networking opportunities. BOMA International’s new vice chair and 2011-2013 Executive Committee members were approved during the meeting: Vice Chair: Richard W. Greninger, CPM, managing director, Carr Properties, BOMA/Metropolitan Washington (AOBA). 2011-2013 Executive Committee members: • Steven J. Hrbek, RPA, senior real estate manager, CB Richard Ellis, BOMA/Suburban Chicago. • Scott O. Jones, PE, manager of projects, principal, Jacobs Engineering Group-Global Buildings, BOMA/Fort Worth. • Katya Naman, senior vice president, Lowe Enterprises, BOMA/Metropolitan Washington (AOBA). • Laura T. Ragans, RPA, property manager, Manulife Financial, BOMA/ Orlando.

BOMA officers and Executive Committee members are sworn into office.

• John K. Scott, RPA, director, corporate occupier & investor services, Cushman & Wakefield of Florida, Inc., BOMA/ Miami-Dade.

July/August 2011 The BOMA Magazine

10 Years

Evaluating Emergency Preparedness a Decade After 9/11 By Laura Horsley “America has changed forever” was a phrase reiterated in participants. “The result of this conference call was the forone form or another by newscasters and journalists shortly mation of the BOMA Preparedness Committee, which has after the tragic events of September 11, 2001. Owners and taken us light years in our communication, planning and managers of commercial properties knew that commercial relationship with government agencies like the Department real estate would play a central role in the national shift in how of Homeland Security (DHS),” he says. we think about and address safety and secuJoe Donovan, senior vice president with rity and how we apply that to preparedness Beacon Capital Partners LLC and current in office buildings. Emergency preparedness chair of BOMA’s Preparedness Committee, plans were dusted off and updated, buildnotes that, while there was some pain early ing security measures were enhanced and, on when DHS was cobbled together from other groups, the foundation blocks are perhaps most important of all to this shift, communication and outreach ramped up now in place as the business model grows. to unprecedented levels. “We’re starting to see a much more active “In several cities I visited prior to 9/11, networking program start to take hold so first responders knew very little about the information sharing can be performed properties in their jurisdiction,” notes Mike more efficiently and effectively,” explains Coleman, vice president, Commercial Real Donovan. “The infrastructure protection Estate, AlliedBarton Security Services. “Now, group within DHS has shown very posithere are active lists, communication links tive signs in their willingness to work and and evacuation staging being coordinated participate with the private sector.” with government agencies.” Other government agencies, including Following 9/11, property professionthe Federal Bureau of Investigation and —Joe Donovan, Senior Vice Federal Emergency Management Agency, als were thirsty for as much information President, Beacon Capital and tools as they could get their hands on. have also gone through a renaissance in Partners LLC, and Chair recent years, enhancing outreach with the Coleman was a speaker in a BOMA-hosted of BOMA’s Preparedness teleconference on preparedness shortly private sector. after 9/11 that had approximately 5,000 Committee

“The infrastructure protection group within DHS has shown very positive signs in their willingness to work and participate with the private sector.”

The BOMA Magazine July/August 2011

How Far We’ve Come— Preparedness and Security 10 Years Later

The Big Picture of Preparedness Advancements in building security and technology have kept pace with the expansion of communication and outreach, making the office environment a much safer place. Using remote video and other technologies allows building personnel to capture, track and trend incidents to help build a better security program. Notes Coleman, “The advancements have really helped us be better prepared, and userfriendly technologies are being utilized to enhance security in general. Remote video, the ability to be notified of an incident electronically, the dispatch of personnel and additional resources—all are critical.” Improved security certainly gives tenants more peace of mind in regards to terrorist threats or other dangerous or lifethreatening occurrences, but enhancements are also cutting back on incidents of other criminal activity. Coleman recalls a recent rash of laptop thefts in the Philadelphia region that was quickly resolved because of policies and procedures already instituted. “Through the programs initiated by the Preparedness and Safety and Security Committee and the broad communication network, the local building personnel were able to catch the perpetrator quickly,” he says. The best preparedness plans are adaptable, as well as comprehensive. On the morning of 9/11, Ed Fallon, vice president of operations, New York Region, Brookfield Office Properties, was in charge of operations for the World Financial Center complex and One Liberty Plaza, properties adjacent to the World Trade Center. Having an updated preparedness plan in place helped ensure that these properties had swift and orderly evacuations, even though the plan in place was focused on a much different type of disaster. “Our preparedness plans really weren’t geared for terrorism at the time, but more geared for a hurricane,” says Fallon. “It made the situation a little less chaotic knowing we had a plan in place to handle large numbers of people going in the same direction.”

By Jason Todd

A Local Perspective and an Ever-Shifting Threat

• Many buildings now include elevator lockouts, which only allow riders to exit at a specified floor.

The ramp up in security and preparedness has made commercial buildings and tenants safer as the “threat” zone has expanded beyond the iconic cities and structures traditionally thought to be at greater risk. New York City is, not surprisingly, ahead of the game on preparedness, where each building is mandated under Local Law 26 to have an Emergency Action Plan and an Emergency Action Plan Director, but other cities are quickly developing a preparedness infrastructure to deal with different threats. “We’re really trying to make people aware that there are 50 states and many things can and will go wrong,” remarks Donovan. “We have encouraged BOMA local associations across the country to organize preparedness committees and now there are many, many more preparedness committees than

• In certain U.S. cities (New York City, Los Angeles, San Francisco, Chicago, Boston), office buildings now rely on electronic barriers/optical turnstiles, individual identification, bomb dog services and outside monitoring more than ever for security. In other U.S. cities (Seattle, Washington, D.C., etc.), manned security continues to be present, although limited use of electronic barriers/optical turnstiles, etc. have been installed. • Security firms have sought and received DHS Safety Act Certification/Designation for security programs throughout portfolios to provide the greatest amount of protection to clients and accounts. • For some properties, X-ray machines, metal detectors and other security devices can be deployed/scaled up should the threat indicate that a change in operations is required. Outside private security services are able to push out information in short order to support operational considerations. • Large urban areas have rewritten fire evacuation laws to mitigate potential loss of life and injuries from a similar event to 9/11 requiring, at a minimum, annual evacuations. • Smart video software is being utilized to track specific activities, such as packages left in one place for a specific period of time or for suspicious behavior around the building or in parking garages. • BOMA International and its industry partners have teamed up to form the Real Estate Information Sharing and Analysis Center (REISAC), which provides bulletins on terrorist threats and activities. (Read more on REISAC, page 26). • Public-sector groups have reached out to forge working relationships with the private sector to ask for feedback on information and training needs.

• BOMA local associations and the BOMA Preparedness Committee have worked diligently to represent the industry to assure BOMA’s interests are being considered within exercises and when events dictate with local, regional and national groups. • Building management and first responders in many major cities, such as San Francisco, Washington, D.C. and New York City, have built relationships, where before there was little communication. • Buildings are beginning to communicate better with their neighbors, tenants and the authorities regarding their emergency preparedness plans. Real estate managers are using table-top sessions to identify potential risks and coordination of responses.

Continued on page 36

July/August 2011 The BOMA Magazine

10 years ago. In the past year alone, we have seen committees stand up in Stamford, Conn., D.C. and Portland, Ore., and Jacksonville, Fla., St. Louis and San Diego are on the horizon.” Donovan explains that the need is ever present for people to be vigilant and to stay connected, whether they are in a large city like Chicago, New York City or Boston or in smaller markets like

The BOMA Magazine July/August 2011

Portland, Ore. or Springfield, Ill. “The terrorists have redefined what success will be,” says Donovan. “There have been more terrorism arrests in the United States in the last 18 months than there were the prior six years, and all of those arrests can be categorized as ‘lone wolf’ operators.” In 2009, authorities arrested a man who was plotting to blow up a federal

courthouse in Springfield, Ill. In the same year, a man was arrested in Dallas for attempting to blow up a skyscraper with a car bomb. During a 2010 sting operation in Portland, Ore., authorities arrested a man who was plotting to blow up a Christmas tree lighting ceremony. Perhaps the most well-known “lone wolf” plot was the Times Square car bomb attempt of May 2010. “The Times Square event was actually a success, for us, because it reinforced the need for the intelligence community to understand the value of the private sector to identify suspicious behavior,” says Donovan. “This was reinforced with the arrest of a college student attempting to buy chemicals from South Carolina for explosive devices being assembled in Texas a few months ago.” BOMA local associations across the United States are adapting their business models to be prepared for various scenarios, be it terrorism, natural disasters or air-borne virus. BOMA/ Denver Metro is working with DHS and the Denver Urban Area Security Initiative on the Wide Area Recovery & Resiliency Program (WAARP), a collaborative program of preparing for recovery following a catastrophic chemical, biological or radiological incident. And when the Howard Hanson Dam outside of Seattle showed signs of being undermined and damaging up to 100 million square feet of office space in the Kent Valley, BOMA/Seattle worked closely with the business and commercial real estate community and the Army Corp of Engineers to get the word out, holding a seminar attended by more than 480 people on how to prepare business for the potential flood. Preparedness today may seem radically different than it did 10 years ago, but ultimately it comes down to having a fluid plan that covers various scenarios and knowing that the next attack, flood or outbreak can happen anywhere. Preparing for the big threat makes us all safer from every threat.

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2010-2011

Regional TOBY® Award Winners/Nominees Corporate Facility

Government Building

Hearst Tower

One Stone Road

New York, N.Y. Managed by: Tishman Speyer Properties Owned by: Hearst Corporation

Guelph, Ontario Managed by: Ontario Realty Corporation and CB Richard Ellis Ltd. Owned by: Ontario Government; Represented by Infrastructure Ontario

Hunt Corporate Headquarters Dallas, Texas Managed by: Hunt Office Management Owned by: Hunt Consolidated, Inc.

Maple Leaf Foods Mississauga, Ontario Managed by: Bentall Kennedy (Canada) LP Owned by: 2725312 Canada Inc.

McDonald’s Campus Office Building Oak Brook, Ill. Managed by: Jones Lang LaSalle Owned by: McDonald’s Corporation

Roofing Concepts Unlimited Coral Springs, Fla. Managed and Owned by: Giacobazzi Partners LLC

Wells Fargo Home Mortgage Campus Minneapolis, Minn. Managed by: Cushman & Wakefield Owned by: Wells Fargo

Earth First City Tower Houston, Texas Managed by: CB Richard Ellis Owned by: FC Tower Property Partners, LP

Fourth & Madison Seattle, Wash. Managed by: Hines Owned by: TIAA-CREF

701 Brickell Miami, Fla. Managed by: Jones Lang LaSalle Owned by: TIAA-CREF

FBI Chicago Regional Office Chicago, Ill. Managed by: USAA Real Estate Company Owned by: FBI Chicago Partners LLC

Federal Reserve Plaza Boston, Mass. Managed and Owned by: Federal Reserve Bank of Boston

The Orrick Building—405 Howard Street San Francisco, Calif. Managed by: Ashforth Pacific Owned by: 405 Howard, LLC

Queen’s Quay Terminal Toronto, Ontario Managed by: Brookfield Properties Management Corporation Owned by: Brookfield Office Properties

The BOMA Magazine July/August 2011

Jacob K. Javits Federal Building/James L. Watson U.S. Court of International Trade New York, N.Y. Managed by: U.S. GSA and LCOR Inc. Owned by: U.S. General Services Administration

The Metropolitan Water District of Southern California Los Angeles, Calif. Managed and Owned by: The Metropolitan Water District of Southern California

Ralph H. Metcalfe Federal Building Chicago, Ill. Managed and Owned by: General Services Administration

Warren E. Burger Federal Building and United States Courthouse St. Paul, Minn. Managed and Owned by: U.S. General Services Administration

Wayne Lyman Morse United States Courthouse Eugene, Ore. Managed and Owned by: General Services Administration

Historical Building BAC Colonnade—Rotunda Coral Gables, Fla. Managed by: Cushman & Wakefield of Florida Owned by: Deka USA Colonnade LLP

Choctaw Building/Sturgis Hall Little Rock, Ark. Managed and Owned by: William J. Clinton Foundation

Empire State Building New York, N.Y. Managed by: Empire State Building Company LLC Owned by: Empire State Building Company LLC; Supervised by Malkin Holdings LLC

Kearns Building Salt Lake City, Utah Managed by: Hines Owned by: Kearns Building Joint Venture

Ontario Government Building North Bay, Ontario Managed by: CB Richard Ellis Ltd. Owned by: Ontario Government; Represented by Infrastructure Ontario

Pioneer Courthouse Portland, Ore. Managed by: Public Buildings Service Owned by: General Services Administration

Theodore Levin U.S. Courthouse Detroit, Mich. Managed and Owned by: U.S. General Services Administration

Industrial Office Park Millcreek Business Park Mississauga, Ontario Managed by: GWL Realty Advisors Inc. Owned by: The Great-West Life Assurance Company/801611 Ontario Ltd.

Perth Amboy Industrial Park Perth Amboy, N.J. Managed by: Matrix Realty, Inc. Owned by: Matrix Perth Amboy Industrial, LLC

Turnpike Distribution Center Dallas, Texas Managed by: Holt Lunsford Commercial, Inc. Owned by: Principal Real Estate Investors, LLC

World Park @ Union Centre West Chester, Ohio Managed and Owned by: Duke Realty Corporation

Medical Office Building Centennial Professional Plaza Nashville, Tenn. Managed by: Cassidy Turley Midwest, Inc. Owned by: HCA Health Services of Tennessee, dba Centennial Medical Center

Group Health Bellevue Medical Center Bellevue, Wash. Managed by: CB Richard Ellis Owned by: Group Health Cooperative

Memorial Hermann Medical Plaza Houston, Texas Managed by: Mischer Investments Owned by: Memorial Hermann Medical Plaza, LP

Physicians Medical Center of San Diego San Diego, Calif. Managed by: Cambridge Healthcare Management Corp. Owned by: Rady Children’s HospitalSan Diego

Renovated Building Two Forest Plaza Dallas, Texas Managed by: Parmenter Realty Partners Owned by: Parmenter Two Forest Plaza, LP

99 High Street

Howard Hughes Center

Creve Coeur Center IV

The United Building

Boston, Mass. Managed by: Jones Lang LaSalle Owned by: TIAA-CREF

Los Angeles, Calif. Managed and Owned by: Equity Office

250 Albert Street

Chicago, Ill. Managed by: Jones Lang LaSalle Owned by: 77 West Wacker Drive, LLC

Oakbrook Terrace, Ill. Managed by: CB Richard Ellis Owned by: TR Mid America Plaza Corp.

Creve Coeur, Mo. Managed by: Cassidy Turley Real Estate Management Services Owned by: I&G Direct Real Estate 18, LP

Gwinnett Commerce Center

Irving, Texas Managed by: CB Richard Ellis Owned by: CBREI Strategic Partners

Ottawa, Ontario Managed by: Morguard Investments Limited Owned by: Pensionfund Realty Limited

580 Building Cincinnati, Ohio Managed by: Cassidy Turley Owned by: BPG Properties, Ltd.

8383 Wilshire Beverly Hills, Calif. Managed by: Douglas Emmett Management, LLC Owned by: Douglas Emmett 2008, LLC

Esperanté Corporate Center West Palm Beach, Fla. Managed by: CB Richard Ellis, Inc. Owned by: CB Richard Ellis Investors, LLC

Metropoint 600 Building St. Louis Park, Minn. Managed by: Cushman & Wakefield Owned by: BPG Properties, Ltd.

Suburban Office Park Low-Rise Delmar Gardens Chesterfield, Mo. Managed by: Cassidy Turley Real Estate Management Services Owned by: Delmar Gardens at Conway Ridge, LLC

Parkway North Center Deerfield, Ill. Managed by: The John Buck Company Owned by: JBC Funds Parkway North, LLC

Pleasanton Corporate Commons Pleasanton, Calif. Managed by: Hines Owned by: 6200 Stoneridge Mall Road Investors, LLC

Venture Center Raleigh, N.C. Managed by: Portfolio Property Management Global Owned by: Mayfield Gentry Realty Advisors

The Wellesley Office Park Wellesley, Mass. Managed and Owned by: Equity Office

Mid America Plaza

Under 100,000 sq ft 500 New Jersey Washington, D.C. Managed by: Cassidy Turley Owned by: National Association of Realtors®

1235 North Service Road West Oakville, Ontario Managed by: Bentall Kennedy (Canada) LP Owned by: Realpool 2748355 Canada Inc.

3600 Glenwood Avenue Raleigh, N.C. Managed by: Highwoods Properties Owned by: Highwoods Realty LLP

21900 Burbank Boulevard

250,000-499,999 sq ft

Over 1 Million sq ft

300 Capitol Mall

One Comcast Center

Sacramento, Calif. Managed by: Hines Owned by: 300 Capitol Associates NF LP

Philadelphia, Pa. Managed by: Liberty Property Trust Owned by: Liberty/Commerz 1701 JFK Boulevard, LP

303 West Madison

1201 Third Avenue

Chicago, Ill. Managed by: CB Richard Ellis, Inc. Owned by: 303 Madison Chicago, LLC

Seattle, Wash. Managed by: Wright Runstad & Company Owned by: Third and University Limited Partnership

Bloomington, Minn. Managed by: NorthMarq Owned by: United Properties

Rochelle Park Irving, Texas Managed by: Parmenter Realty Partners Owned by: Parmenter Rochelle Park LP

East Rutherford, N.J. Managed by: CB Richard Ellis Owned by: CB Richard Ellis Investors

Northland Center

The Point at Las Colinas Irving, Texas Managed by: CB Richard Ellis Owned by: CB Richard Ellis Investors

Resurgens Plaza

100,000-249,999 sq ft

Atlanta, Ga. Managed and Owned by: Behringer Harvard

One Chestnut Place

Yonge Richmond Centre

Worcester, Mass. Managed by: CBRE-NE Owned by: IPC Louisville Properties LLC

5th and Bell Seattle, Wash. Managed by: Hines Owned by: Hines REIT 5th and Bell LLC

25 Northwest Point Elk Grove Village, Ill. Managed by: The John Buck Company Owned by: JBC Funds Northwest Point LLC

Sacramento, Calif. Managed by: Jones Lang LaSalle Americas, Inc. Owned by: PenSERS

200 & 400 Bridgewater Crossing

3381 Steeles Avenue East

Raleigh, N.C. Managed and Owned by: Highwoods Properties

Ottawa, Ontario Managed by: Bentall Kennedy (Canada) LP Owned by: bcIMC Realty Corporation

Central Park Square I Chesterfield, Mo. Managed and Owned by: Sachs Properties

Toronto, Ontario Managed by: Bentall Kennedy (Canada) LP Owned by: BTC Properties II Ltd., SteelesTech Properties I Inc. and SteelesTech Properties II Inc.

World Exchange Plaza

Dallas, Texas Managed by: CB Richard Ellis Owned by: CB Richard Ellis Investors

Metropolitan Center

Suburban Office Park Mid-Rise

GlenLake Office Park

Interchange Office Center

Woodland Hills, Calif. Managed by: PM Realty Group Owned by: Woodland Burbank Corporation, another project by American Realty Advisors

925 L Street, Inc.

Bridgewater, N.J. Managed by: Wells Real Estate Owned by: Piedmont Office Realty Trust

Duluth, Ga. Managed and Owned by: Parmenter Realty Partners

The Urban Towers

Toronto, Ontario Managed by: Brookfield Properties Management Corporation Owned by: YRC (MCEG) Ltd., BPO (Ontario Core) Ltd. and Crehoy Inc.

500,000-1 Million sq ft One Century Place Nashville, Tenn. Managed by: Wells Real Estate Owned by: Wells REIT II-One Century Place, LLC

Aon Center at 707 Wilshire Los Angeles, Calif. Managed by: Means Knaus Partners, LP Owned by: Beacon Capital Partners

IDS Center Minneapolis, Minn. Managed by: Inland American Office Management LLC Owned by: MB Minneapolis 8th Street LLC

Schaumburg Corporate Center Schaumburg, Ill. Managed and Owned by: Manulife Financial

TELUS Plaza Edmonton, Alberta Managed by: Tonko Realty Advisors Ltd. Owned by: HOOPP Realty Inc./Les Immeubles HOOPP Inc.

Wells Fargo Plaza Houston, Texas Managed by: CB Richard Ellis Owned by: Metropolitan Life Insurance Company and Metropolitan Tower Realty Company, Inc.

Four Penn Center Philadelphia, Pa. Managed by: Carter & Associates Asset Management Owned by: Four Penn Center Owner, LLC

Campbell Mithun Tower Minneapolis, Minn. Managed by: NorthMarq Real Estate Services Owned by: 222 South Ninth Street, LLC

Fox Plaza Los Angeles, Calif. Managed and Owned by: Irvine Company

Kimberly-Clark Professional* is the Official Sponsor of BOMA International’s TOBY® Awards and Banquet through 2014.

July/August 2011 The BOMA Magazine

trends tracker

Predicting Demand for MOBs Proves Complicated By Lindsay Tiffany IN THE WAKE OF THE PASSAGE of the Affordable Care Act last year, predictions that as much as 64 million square feet of new medical office building (MOB) space would be required to meet the demand of the newly insured were prevalent. But, at BOMA’s 2011 Medical Office Buildings and Healthcare Facilities Conference, held May 5-7 in Dallas, most experts acknowledged that gauging the demand for new MOB space will be more complicated and that the actual demand for new MOB space will be much less.

A Shift in Use In the general session, “Anatomy of a Trend: Assessing Future Demand for In and Outpatient Facilities,” Dr. Connie Curran, RN, Ed.D., FAAN, president, Curran Associates, noted a marked shift in the use of hospitals. “We may have experienced the last generation to be born and die in hospitals,” she said, citing the advent of birthing centers and hospice care. “In time, the hospital could evolve to be used for little more than emergency and critical care and major surgery.” All other procedures, she

Experts share their predictions for the future of healthcare reform in the session, “Implementing Healthcare Reform: Next Steps.”

noted, likely will occur in outpatient facilities like Ambulatory Surgery Centers and MOBs. Other types of facilities, such as Skilled Nursing Facilities and Long-Term Acute Care hospitals, will address chronically/critically ill patients and provide care in a lower-cost setting than a traditional hospital. P.J. Camp, managing director, Morgan Keegan, discussed the rise in off-campus outpatient facilities. “Destinations and retail locations will be increasingly important to delivering healthcare. The name of the game will be effectiveness and efficiency,” he noted. As an example, he cited a project by Vanderbilt University Medical Center, which recently converted the top floor of Thousand Oaks shopping mall into an off-campus facility to great success. Camp noted that off-campus facilities are convenient for patients—they often are closer to where they live, there is plenty of parking and they can avoid traveling to a downtown hospital campus. Other speakers noted that building out existing space is often less expensive than developing new space, and the soft leasing market for retail space is creating opportunities for healthcare systems that are exploring these venues. garvin-Buildings-June 6/6/11

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The BOMA Magazine July/August 2011

1:29 PM

Paying for Care Most speakers acknowledged that one of the most significant changes that will emerge from healthcare reform is the way procedures are paid for. Medicare and Medicaid reimbursements will shift from a pay-for-volume system to a payfor-quality system. A main component of the new model is the establishment of Accountable Care Organizations (ACOs), networks of doctors and hospitals that would collaborate and are incentivized to keep Medicare patients healthier. While the details of ACOs are being ironed out by the healthcare industry and the Obama Administration, some health systems are already readying their doctors—and shifting the way they use space—to reflect the changes prescribed by healthcare reform. Karen Kennedy, P.A., CEO, Impel Management Services, and chief administrative officer, Medical Clinic of North Texas, explained how her clinics have implemented a “medical home” model, which focuses on patient-centered care. “We are redesigning medical offices to

facilitate a team approach to primary care, which includes psychologists, social workers, health coaches and pharmacists,” said Kennedy. “To eliminate personnel costs, we have implemented online appointment scheduling, prescription refill requests, test results reporting and payment kiosks.” She also explained that her practice’s facilities have colored markings on the carpet and additional signage so patients can navigate the clinic without the help of additional personnel, as well as larger nursing stations and a conference room with teleconference technology.

The Requirements of Reform During “Implementing Healthcare Reform: Next Steps,” experts from a forprofit healthcare system, a large not-forprofit system and a smaller, rural community hospital shared their perspectives on the steps they’re taking now to address the requirements of reform. The panelists included Howard T. Wall, III, senior vice president, general counsel and secretary, Capella Healthcare, Inc.;

Fred T. Brown, Jr., FACHE, group vice president for Eastern Division, Carolinas Medical Center; and David Frum, president and CEO, Bridgton Hospital in Maine. Not surprisingly, their implementation plans varied considerably, particularly with respect to becoming ACOs. All agreed, however, that healthcare reform has laid the groundwork for them to deploy their real estate (both inpatient, critical care sites, as well as outpatient facilities) far more strategically perhaps than they have used it in the past. Whether to address capital constraints, create or protect market share or achieve their quality goals, all agreed that real estate is a vital element in these plans. The panelists also noted there will continue to be opportunities as long as real estate professionals understand the shifting dynamics and emerging trends in healthcare.

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July/August 2011 The BOMA Magazine

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The BOMA Magazine July/August 2011

The private sector of the U.S. commercial real estate industry saw a 1.8-percent drop in rental income levels and a 1.2-percent decrease in total income, according to the 2011 Experience Exchange Report® (EER), which was recently released by BOMA International in collaboration with Kingsley Associates. This modest decrease in income likely reflects the continuing challenges and uncertainties in the overall economic market. Tempering the negative effects of this dip in income on overall asset financial performance were notable decreases in utility expenses (-5.5%) and fixed expenses (-9.2%), suggesting that property managers and owners are closely managing their assets and carefully monitoring expenses. Many property professionals are employing low- and no-cost energy reduction strategies to reduce utility expenses, which help offset increases in energy costs, and are making successful appeals of real estate tax bills that don’t always reflect the current market value of commercial buildings. Together, fixed expenses and utilities comprise some of the most significant expense outlays in commercial office buildings. The EER is the industry standard for benchmarking income and expense data in commercial building data, providing valuable analytic insight into the performance and efficiency of individual buildings compared to other individual buildings and markets in the United States and Canada. This year, the EER database included more than 6,500 buildings (a 46% increase from 2010) from 278 different markets and more than 140 cities. The report includes trends analysis and city-market level reports, as well as reports for such special-use facilities as medical office buildings, corporate facilities, financial buildings, agency managed and all electric buildings.

Private-Sector Office Building Income Trends Private buildings in the United States saw a 1.2-percent decrease in total income between 2009 and 2010, from $26.91 per square foot (psf ) to $26.60 psf. This trend is reflected in the decrease of average office rent, from $26.09 psf to $25.44 psf (-2.5%), as well as in the decrease in retail rent, which went from $21.23 psf to $19.78 psf (-6.8%). Private suburban buildings also saw a decrease in both total income and rental income, with a 3.1-percent decrease in total (from $24.69 psf to $23.95 psf ) and a 5.1-percent drop (from $23.67 psf to $22.52 psf ) in rental from the previous year. Only private downtown buildings showed a year-to-year increase in income, with a 0.55-percent increase in rental income (from $27.10 psf. to $27.25 psf), despite a 1.16-percent decrease in total income, from $26.91 psf last year to $26.60 psf this year. The overall decrease in income among private buildings appears to be attributable to the decreases in office and retail income.

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Private-Sector Office Building Expense Trends Private buildings saw the most significant changes in fixed and utility expenses between 2009 and 2010, with an 8.5-percent decrease in fixed expenses (from $4.49 psf to $4.11 psf) and a 5.5-percent decrease in utilities (from $2.36 psf to $2.23 psf ). The effect of fixed expenses can be seen in the combination of fixed and total operating costs, which decreased from $11.79 psf in 2009 to $11.66 psf in 2010. Although combined fixed and total operating expenses saw a 1.1-percent decrease in 2010, total operating costs saw a 1.0-percent increase (from $7.66 psf to $7.74 psf ) from the prior year. Private suburban buildings in particular saw a 2.63-percent decrease in cleaning (from $1.17 psf to $1.1.4 psf) and a 2.13-percent decrease in security expenses (from $0.48 psf to $0.47 psf), which contrasts with the 0.71-percent increase (from $1.40 psf to $1.41 psf) in cleaning expenses and the 1.43-percent increase in security expenses (from $0.69 psf to $0.70 psf) for downtown buildings.

Now in its 91st year, the EER continues to be the single most detailed and most reputable source of benchmarking data representing the office building industry across North America. In 2009, the EER transitioned to a new online format through the collaboration with commercial real estate research firm Kingsley Associates. The online format allows users to query data by market, submarket, building size, building type, age of the building, ownership type and more. The data can be exported into charts, PDFs and Excel files, allowing users to expedite analysis, build budgets faster and easily create presentations. The 2011 EER encompasses income and expenses from 2010, reported voluntarily from industry practitioners, and is available now at www.bomaeer.com.

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BOMA’s MOB Conference Takes on Healthcare Reform, Capital Constraints and Regulatory Challenges By Lindsay Tiffany

MORE THAN 650 HEALTHCARE EXECUTIVES and owners, developers and managers of healthcare real estate gathered in Dallas in May for BOMA’s 2011 Medical Office Buildings and Healthcare Facilities Conference. Attendees networked, shared insight and heard from a wide range of experts on such diverse issues as healthcare reform, physician employment trends, the capital markets and regulatory compliance. The program started with a tour of Baylor University Medical Center’s Charles A. Sammons Cancer Center, giving attendees a firsthand look at how healthcare developer Duke Realty worked with Baylor through complex strategic, financial, operational and regulatory issues to create a state-ofthe-art cancer treatment center that was designed to be a center of excellence. The 10-story, 460,000-square-foot outpatient building is part of a $154 million expansion at Baylor and features four linear accelerators, MRI, PET and CT equipment, a rehabilitation center, a women’s breast care center, a dedicated chemotherapy area, a specialized pharmacy and areas to provide such services as high-dose radiation treatments, clinical trials and transplant patient review. Healthcare reform was at the heart of the discussion in most sessions as industry leaders tried to predict how the implementation of the 2010 Affordable Care Act will affect real estate strategies. Most speakers agreed that healthcare reform is here to stay in one form or another and will generate demand for outpatient facilities like medical office

The BOMA Magazine

July/August 2011

buildings and ambulatory care centers, though precisely how much new space would be required remains unseen. For more about how healthcare reform may affect demand for healthcare real estate, see “Trends Tracker” on pages 40-41. Physician employment models are also being affected by healthcare reform, making hospital employment more attractive than private practice for many doctors. With changes like the establishment of Accountable Care Organizations, increasingly complicated regulations, insurance complexities, the technology infrastructure required to implement and support electronic health records and the personal debt required to start a private practice, some experts predicted a decrease in privately employed physicians. With a rise in demand for healthcare services and an increase in the number of baby boomer doctors retiring, the industry will likely face physician shortages, experts predicted. The healthcare reform bill did not include incentives to increase the number of physicians, and many experts noted that the shortages may be more severe than predicted because many new doctors want to work shorter hours. Dr. Stephen Mansfield, Ph.D., FACHE, president and CEO, Methodist Dallas Medical Center, predicted a big cultural shift in how physicians practice medicine: “The future of the American healthcare system will be ensuring that our physicians are performing to the peak of their training and licensure.” He added that mid-level practitioners, such as physician assistants and nurse

practitioners, will increasingly diagnose and treat common ailments like sore throats—noting that those mid-level practitioners will help to address and resolve the physician shortages. Regulatory compliance was addressed in the session, “STARK Compliance: New Developments and Common Issues Generated by Healthcare Reform,” where healthcare law experts briefed attendees on the challenges of owning and managing healthcare real estate under the new regulations. STARK laws and the Medicare/Medicaid Anti-Kickback Statutes regulate physician self-referral under Medicare and Medicaid and underscore the need for highly professional property management staff that can ensure compliance. The regulatory environment—and the steep fines that accompany non-compliance—often make the use of third-party developers even more attractive for hospitals. As hospitals consider monetizing their real estate assets to focus on their core mission of providing care, regulatory compliance concerns can also be addressed. The recent uptick in mergers and acquisitions (M&A) in the healthcare real estate industry was also the subject of much discussion. Mergers and acquisitions activity among healthcare REITs increased in 2010 to the highest level since the peak of the market in 2006. Jim Maloney, managing director and head of Real Estate, co-head of Mergers and Acquisitions, Cain Brothers and Company, LLC, noted that healthcare reform and stabilizing economic conditions are the reason for the uptick: “Healthcare reform is a catalyst for M&A activity and hospitals are concerned about whether they’ll be successful in the long-term. The economic meltdown meant that capital was sidelined, but now that money is getting back in the mix.” Many experts expect to see an uptick in merger and acquisitions activity among hospital healthcare systems. The implications of healthcare reform, the establishment of Accountable Care Organizations and ongoing capital constraints are expected to remain top-ofmind issues for healthcare executives and their real estate partners. The 2012 Medical Office Buildings and Healthcare Facilities Conference is scheduled for May 2-4, 2012, in Atlanta.

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SUPPLIER Showcase

Of Products & Services

Special Advertising Section

Ornamental Fencing from Ameristar Fence Products, Inc. Ameristar’s Montage Plus® ornamental fencing, the first choice among contractors for providing owners with a decorative fence that balances strength, aesthetics and cost. Montage Plus provides consumers with a maintenance-free solution that’s matched with a rigid steel construction for strength and durability. Phone: 866-702-3192; E-mail: busdev@ameristarfence.com; www.AmeristarFence.com.

Aquatherm: Do You Love Your Pipe? With a better material, leak-free connections and a 10-year warranty that even covers incidentals, what’s not to love? Switch to Aquatherm’s heat-fused polypropylene and learn why Aquatherm is the fastest growing pressure piping system in North America! For more information, visit www.aquathermpipe.com, or contact Charlie Clark, Inside Sales Manager, at Charlie.clark@aquathermpipe.com or 801-805-6657.

Kynar Aquatec Cool White Roofing Energy Savings Calculator Cool white roof coatings featuring Kynar Aquatec® PVDF resins are up to 63-percent more energy efficient over time than those made with acrylic-based resins. Arkema created a specialized iPhone® application to demonstrate your potential savings. The Cool White Roofing Savings Calculator enables architects, contractors and building owners to calculate the potential Cool Energy Savings generated by a roof protected by a Kynar Aquatec coating. Instructions for downloading the app are on www.KynarAquatecSolution.com. Arkema Inc. at 610-205-7898.

BAC Factory-Authorized Parts at Cooling Tower World Cooling Tower World is the only place to purchase BAC Factory Authorized Parts online. BAC’s parts are manufactured to meet rigorous cooling tower duty specifications and are guaranteed to fit your unit and perform as original equipment. Cooling Tower World offers Free 2-Day Shipping on all orders placed, and all parts carry a full 1-year warranty backed by BAC. For more information, visit www.CoolingTowerWorld.com.

Bird Barrier Puts an End to Bird Problems This pigeon has his eye on YOUR building. Don’t worry, Bird Barrier has a solution. Armed with a comprehensive line of humane, discreet bird deterrents and a national network of professional installers, Bird Barrier will put an end to your bird problem. 800-503-5444; customercare@birdbarrier.com; www.birdbarrier.com/boma.

Ciralight’s ‘Smart Skylights’ Revolutionize Daylighting Ciralight Global’s Smart Skylights use Solar-Powered GPS technology and Mirrors to direct vibrant Sunlight indoors without additional heat gain, allowing you to turn off artificial lights up to 10-plus hours a day. For more information, call 877-520-5005 or visit CiralightGlobal.com.

Cleaner, Healthier Environments with Cleaning Services Group As a leader in the industry with over 25 years of experience, CSG will provide your business with customized programs to fit your janitorial needs AND help you maintain a cleaner, healthier environment for your customers and employees. More information on Cleaning Services Group, Inc. at www.cleanservicesgroup.com. Phone: 800-683-6572; Fax: 800-789-5440.

‘Shield Your Budget from Costly Compromise’ Through Coast to Coast Direct Painting Products One word that just doesn’t fit in the professional workplace: compromise. A professional doesn’t compromise quality or value for speed. Now there’s an easy-to-use paint roller tool that delivers quality, speed and value, the patented Paint Shield system. This tool produces the cut-in quality of a seasoned professional painter, while reducing the time from start to clean by up to 50 percent. Less time, less cost, more savings. It’s the only no-compromise approach to profit and value. Coast to Coast Direct: 714-904-8320; mike@coast-coastdirect.com; www.coast-coastdirect.com.

The BOMA Magazine July/August 2011

Special Advertising Section

Electronic Building Directories from Directory Solutions, Inc. 25-year leader in electronic and touch screen building directories. Unlimited listings that can be updated in seconds from your office. Wide variety of features and directory styles. Visit www.TouchSource.com or call 800-704-3458.

Save Energy Inside Your Elevators Our newest product, the “Energy Saver,” turns off the lights and fan inside your elevator when it is not in use. This product is code compliant and must be installed by a certified elevator technician. Product is CSA/UL approved. For more information, please contact us at 800-4475442 or visit our website at www.electrodyn.com.

Mark Your Calendars for InfraMation 2011 by FLIR Systems, Inc. Network, learn the latest and explore new opportunities at InfraMation 2011 coming to Las Vegas November 9-11. Sign up now for the largest infrared camera users conference in the world. It’s going to be the best InfraMation ever with an even greater focus on Building Thermography applications, including our new pre-conference Building Investigations certification course. So register now! www.inframation.org.

Mezzanine Safety Gate from Garlock Safety Systems Preventing falls off elevated access points for material handling is easy with the LedgeGuard™ Mezzanine Safety Gate. The system has two gates, and one is always closed. There’s always an OSHA-compliant gate in place to prevent falls. And personnel can’t forget, because raising one gate lowers the other automatically. A 60- by 60-inch landing area easily accommodates a 50-inch machinery pallet. LedgeGuard doesn’t have any overhead obstructions, so there’s nothing to interfere with tall loads. Systems are easy to install; they have a small footprint; and at only 82 inches high, even work with most low ceilings. Call Garlock Safety Systems 763-694-2614 or visit www.railguard.net/ledgeGuard.asp.

Asphalt Preservation from Gee Asphalt Systems, Inc.

“The Asphalt Preservation Specialists”

Asphalt Preservation is about taking care of your good pavements while they are still good. We’ll show you how to preserve your asphalt pavements for a fraction of the cost to replace them. Serving clients Nationwide. For more information, contact us at 800-747-8567 or log on to www.geeasphalt.net.

General Elevator Parts Inc.—We Buy & Sell Single Source Supplier: 1-800-848-3329 or 773-491-1927; Fax: 1-800-578-6349 or 773-463-2827. Otis, Westinghouse, Dover, Imperial, etc. Surplus Motors and Generators: Rotors—IMO Pumps; Armatures—Door Motors; Machine Parts—Controls; ✓ Obsolete’s Largest Supply. GeGeLu@comcast.net: Networking your inventory is like fishing. Just send over your list and we will hook you up! Wanted Otis turtleback longneck and shortneck hoist motors size 1 1/2, 2 1/2, 3 1/2, 4 1/2, 5 1/2, etc. Otis wound rotors type 1ac, 2ac, 3ac, 5ac, 7 1/2ac, etc. Otis 63g, and all other dc hoist motors leg mount and flange mount. Westinghouse dc flange mount 63a, 93 and 93.5 frame. See the website at elevatorexchange.com.

Functional, Stylish Towel Dispenser from Georgia-Pacific Georgia-Pacific Professional’s enMotion® Recessed Automated Towel Dispenser improves the hand-drying experience with style in mind. The dispenser is built into the wall to create a high-end washroom image and designed with sustainable benefits that allow facilities to earn LEED certification. Contact Georgia-Pacific Professional at 1-866-HELLO GP (435-5647); www.gppro.com; or gpexpress@gapac.com.

Corrosion Protection for Dry Fire Sprinkler Systems from Huguenot Laboratories! MICBlast Nitrogen generation technology replaces your existing air compressor with corrosion inhibiting, high purity Nitrogen (N2) for your Fire Protection Systems. Call Huguenot Labs for details 800-228-3793. www.huguenotlabs.com.

July/August 2011 The BOMA Magazine

SUPPLIER Showcase

Of Products & Services

Special Advertising Section

Jessup® GloBrite® Offers Total Egress Path Marking Solution

The choice of forward-thinking building owners and property managers, GloBrite Photoluminescent Systems represents the total solution in egress path marking as required in the 2009 IBC/IFC building codes and standards. Don’t be caught unprepared! Request a stairwell audit by the experts in photoluminescent technology by calling us at 815-385-6650 or visit us at www.globritesystem.com.

Services Through Kemna Restoration & Construction Kemna Restoration & Construction provides service for the repair, restoration and continued exterior maintenance of your facility. Our primary scopes are masonry, concrete, sealants and building cleaning. Also, general contracting focusing on exterior construction, industrial coatings, window work, specialty high-rise work, as well as historical restoration and renovation. For more information, call 317-927-9253 or visit www. kemnarestoration.com.

PAR-Style Lamps from LEDtronics Continuing to add to its line of innovative and energy-efficient LED replacements for incandescent and halogen light bulbs, LEDtronics® announces its new series of PAR-style high-power, high-efficacy lamps with highest-grade LEDs and Fresnel lens. Phone: 800-579-4875; Web: www.ledtronics.com.

Green Elevator Solutions from Magnetek Magnetek’s Quattro® Elevator Drives are the green solution for high-rise buildings. Quattro AC-PM can provide energy savings of as much as 42 percent, and Quattro DC saves up to 40 percent over MG sets. Quattro offers proven energy savings, lower installation costs and superior ride quality while helping your projects qualify for utility rebates. Visit www.elevatordrives.com or call 800-236-1705.

Maxton Manufacturing for Elevator Control Valve Repairs Did you know Maxton’s Valve Exchange Program (VEP) offers, like for like, re-furbished elevator control valves up to 50-percent off the cost of new? How about saving time and man power as well? “We save at least two crew hours for every valve exchange that we do,” said John C. ThyssenKrupp. Save money and time with elevator control valve repairs that maximize your resources. Call Maxton Manufacturing 1-775-782-1700 or go online www.maxtonvalve.com.

Big Spheres from Meltdown Glass Utilizing the beauty and durability of cast-glass, Meltdown Glass’ Big Spheres product offers a clean, geometric solution to partition walls while preserving the organic qualities of cast-glass. This product allows designers to create spaces that allow light transmittances while still maintaining privacy. Meltdown Glass textures are available in oversize panels and can be tempered to meet safety codes. For more information, please visit meltdownglass.com or call 800-845-6221.

Nexus Valve’s UltraMatic The UltraMatic™ by Nexus Valve is a combination automatic flow control valve, ball valve and union. Using the UltraMatic for balancing hot and chilled water coils saves energy and money. Learn more at www.nexusvalve.com or 888-900-0947.

Stop Pest Birds with Nixalite Solutions Keep your buildings and facilities clean and free of pest birds. Since 1950, Nixalite of America has manufactured and supplied effective and humane pest bird and animal control products. To request your free catalog, please call 800-624-1189 or visit www.nixalite.com.

The BOMA Magazine July/August 2011

Special Advertising Section

Quadlogic Controls Corp. for Monitoring Metered Loads IQ² is Quadlogic’s new Web-based package for energy monitoring and tenant billing, with an intuitive graphical user interface. Property managers and engineers can monitor metered loads for consumption (kWh) and demand (kW), prepare measurement and verification reports and produce tenant invoices. Visit www.Quadlogic.com, call 212-930-9300 x326, or write info@quadlogic.com.

R2 HINGE Cuts Door Repair Costs in 1/2 with Fully Adjustable VARYX Continuous Hinge Field proven in the retrofit market, R2’s adjustable VARYX™ hinge restores high-traffic entranceways at a fraction of the cost of replacement. Error-free, fast, one-man installation minimizes carpentry labor and VARYX sets new benchmarks for performance and durability. Visit www.r2hinge.com for more information, including How to Buy. Or, call 713-647-8000 or e-mail R2 at info@r2hinge.com.

Purgers for Centrifugal Chillers from Redi Controls Inc. OAM-Purger for Centrifugal Chillers regains capacity, saves thousands of $$$ per year in energy savings. Sustainability, Green Product, Energy Savings, opportunities for Green Building and LEED points, utility rebates. Video at www.RediControls.com. Phone: 317-865-4130.

Safety Chairs: Evacuation Chairs and Safety Devices Safety Chairs emergency evacuation chairs are the best value in the evacuation chair industry. Our emergency evacuation chairs have the highest weight capacity, are lightweight and are the only devices designed to move evacuees safely down AND up stairs. They are also the only emergency evacuation chairs on the market that are ergonomically designed for the safety of all parties involved. Are you prepared in the event of an evacuation or emergency? Manufactured in U.S.A. and the company is U.S. veteran owned. Learn more at www.safetychairs.net.

SignValue Billboard Lease Services Are you getting enough money for your billboard lease? Do you need help negotiating a billboard lease? E-mail info@signvalue.com or call SignValue at 480-657-8400 to talk with a billboard lease consultant today. www.signvalue.com.

Upscale Recycling Bins, Benches and Planters from T2 Site Amenities Finally. Great looking recycling bins for lobbies, meeting spaces and offices. Extraordinary benches and planters. Huge array of styles, colors and materials. T2 Site Amenities. www.t2-sa.com. Call 847-579-9003. E-mail lori@t2-sa.com.

In-Floor Active Chilled Beams from Tate Access Floors Tate’s In-floor Active Chilled Beams provide the energy savings and capacity of an overhead chilled beam while eliminating the concern over leaks and condensation. Water is distributed under a raised floor to condition the perimeter of a building, maintaining the benefits of underfloor air distribution. www.tateaccessfloors.com. 877-999-8283. tateinfo@tateaccessfloors.com.

Telgian Corporation’s Fire Protection and Life Safety Services In-house expertise for engineering, inspections and installation for fire alarms, suppression systems, security and life safety programs ensures comprehensive solutions for simplified building maintenance and compliance. connect@telgian.com for consultation; www.telgian.com.

A ‘Total Door’ Solution Total Door™ is the ONLY comprehensive door system. Engineered to minimize moving parts and service components. Results in reduced maintenance costs, simpler installation, unbeatable reliability, unmatched security and lower up-front costs. Visit www.Totaldoor.com or contact 800-852-6660.

July/August 2011 The BOMA Magazine

trade tools [fire protection]

7 Tips for Containing Smoke and Saving Lives

1. Keep openings and egress paths clear. Sometimes, a stopgap solution to storage of excess supplies is to place them next to a door and stock them later. Safety can be affected since this may allow the spread of smoke and fire. 2. Replace or repair broken or worn door hardware. Loose exits that could fail, corroded hinges that could snap or worn levers that can catch on clothing should be replaced or repaired. 3. Ensure proper fire rating on doors. Where necessary, replace damaged doors with doors that have proper fire ratings and never close out a project without an inspection and commissioning process.

By Kurt Roeper and April Dalton-Noblitt APPROXIMATELY 75 PERCENT OF FIRE VICTIMS die due to the toxic effects of smoke as it migrates throughout a building—oftentimes in areas far removed from the area of fire origin. Dependence on automatic fire sprinklers, without providing effective smoke control along paths of emergency egress, exposes occupants to unnecessary danger. Smoke-sealed stairwells and hallways solve this problem; however, even smoke-sealed stairwells and hallways won’t do their jobs if not maintained. Here are seven things building managers must do to maintain tenant safety during a fire evacuation.

4. Replace broken door seals. A door that might close but not seal properly may allow smoke and fire to penetrate an opening much quicker. 5. Maintain doors so they close properly. A door that doesn’t close or that can’t be latched will not prevent the spread of smoke. Fixing a broken door can involve replacing a broken latch and adjusting hinges or could require closer repair or replacement. 6. Ensure designated fire exits are clearly marked. If not, lives could be threatened, particularly in smoke-filled hallways. 7. Conduct regular audits and inspections. The smallest infraction can endanger the safety of your occupants. An annual fire door and means of egress door inspection schedule is recommended. About the Authors: Kurt Roeper, director of Codes, Standards & Building Regulations at Ingersoll Rand Security Technologies, is the company’s representative on numerous code and standardwriting bodies and is an active speaker and advocate on issues pertaining to life safety in the built environment. April Dalton-Noblitt is director, Commercial Real Estate Vertical Market, for Ingersoll Rand Security Technologies. For more information, visit www.securitytechnologies. ingersollrand.com.

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EDUCATIONAL COURSE SCHEDULE 2011 Location: Las Vegas, Hilton DATE

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Technologies for Facilities Management

September 12-14

Asset Management

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Managing the Organization

December 5-7

Design, Operations and Maintenance I

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The BOMA Magazine July/August 2011

MIXED-USE PROPERTIES : S TA N D A R D M E T H O D S O F M E A S U R E M E N T

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KEY FEATURES ALLOWS USERS TO: ent sUreM of Mea thods e M M d r a stand (2011) Use ixed-

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Classify the ﬂoor areas of a mixed–use property onto use components, parking components and mixed–use common areas.

•

Measure the exterior gross areas of use components for ofﬁce, industrial, retail and multi–unit residential use components.

•

Measure the exterior gross area of use components, including theaters, institutional and civic uses, and parking components.

•

Measure the exterior gross areas of mixed–use common areas and fairly allocate those areas among all use components and parking components within a mixed–use property.

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Order the complete BOMA Suite of Standards today and receive all 6 for the price of 5! BOMA Sets the Standard. Order from the BOMA Suite of Standards, including: – Office Buildings: Standard Methods of Measurement (ANSI/BOMA Z65.1-2010) – Industrial Buildings: Standard Methods of Measurement (ANSI/BOMA Z65.2-2009) – Gross Areas of a Building: Standard Methods of Measurement (ANSI/BOMA Z65.3-2009) – Multi-Use Residential Buildings: Standard Methods of Measurement (ANSI/BOMA Z65.4-2010) – Retail Buildings: Standard Methods of Measurement (ANSI/BOMA Z65.5-2010) – Mixed-Use Properties: Standard Methods of Measurement (2011) MUSE–072011

buyers’ guide

Buyers’ Guide to Building Products and Services The Every Building Show® at the 2011 BOMA International Conference featured hundreds of vendors and suppliers with innovative solutions to solve the operational challenges property professionals are facing today. Here are just a few of the offerings that were on hand.

PRODUCT

DETAILS Waste Management’s Bagster Bag Takes on Jobsite Debris Waste Management’s new Bagster Dumpster in a Bag® service can take on up to 3,300 pounds of waste and debris, making it a quick and easy solution for disposing of jobsite debris. The Bagster Bag is ideal for renovations and remodeling, roofing, landscaping and more. You can buy the bag whenever you need it and schedule and pay for pick up at your convenience.

For more information, visit www.thebagster.com

Improve Indoor Air Quality with Rubbermaid’s HEPA Backpack Vacuum Rubbermaid’s 10-Quart Capacity HEPA Backpack Vacuum improves indoor air quality and makes cleaning easy. Equipped with a lightweight, harness design, its narrow profile allows the wearer unrestricted mobility. It has a four-stage filtration system with an integrated HEPA filter and closed bag design for cleaner air. It also includes a flexible hose, crevice tool, floor tool, aluminum wands, dusting brush and upholstery tool.

For more information, visit www.rubbermaidcommercial.com

AlliedBarton Security Services Launches Strategic Partnership Program AlliedBarton Security Services, a premier provider of highly trained security personnel, has launched a strategic partnership program that offers clients access to best-in-class security-related products and services. Through its national support network, the company has identified, researched and vetted security-related companies that can add value to a company’s overall physical security program. Members of the program encompass a broad range of supplemental security solutions, such as guard tour systems, canine services, international security and more.

For more information, visit www.alliedbarton.com

RPA/FMA/SMA/SMT ACCELERATED COURSES Aug 24, 2011 Real Estate Investment & Finance Sep 14, 2011 Technologies for Facilities Management

The BOMA Magazine July/August 2011

Oct 5, 2011

Leasing and Marketing

Oct 26, 2011

Facilities Planning & Proj Mgmt

Nov 2, 2011

Environmental Health & Safety Issues

Performance MATTERS

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DETAILS ValleyCrest Hosts New Blog on Water Management Best Practices ValleyCrest is leading the way in water sustainability by launching ValleyCrest Takes On: Water Management, a blog focused on water management best practices, innovations and trends. The blog aims to create awareness about the importance of water management on real estate properties, as well as teach customers how to set and achieve their water management goals. In addition to information on new solutions, technology and trends, the site allows industry experts to share ideas and ask questions.

For more information, visit www.ValleyCrestTakesOn.com

Prevent Flies and Falls with Orkin Actizyme Floor and Drain Cleaner Made for use in commercial establishments, Orkin Actizyme™ Floor and Drain Cleaner is a professional cleaning solution that uses naturally occurring enzymes and beneficial bacteria to break down even the toughest grease and grime. As these bacteria and enzymes safely dissolve greasy buildup in pipes, cracks and crevices, Orkin Actizyme cleans deeply and helps prevent pests. It even works on odors around trash cans, garbage disposals and other areas.

For more information, visit www.orkin.com

Acuity Brands Debuts acculamp Brand of LED Lamps Acuity Brands, Inc., a market leader in innovative energy-efficient lighting and control solutions, has announced the introduction of the acculamp™ product line, its first-ever offering of LED lamps. The new product line consists of a broad range of LED lamps for commercial and institutional applications. While providing the long service life and overall energy efficiency of LED light sources, each product in the specification-grade acculamp S-Series provides excellent high center beam candela power, high-color rendering index and overall quality of light.

For more information, visit www.acculamp.com

ADVERTISING INDEX Company

Page No.

AAON.............................................................Cov 4 Alpolic.................................................................... 23 American Anchor.........................................Cov 2 Ameristar Fence Products................................ 46 Angus Systems ................................................... 12 AP&G Co. Inc.-Catchmaster........................... 36 Aquatherm Inc..................................................... 46 ARKEMA Inc. (Kynar 500).............................. 46 Baltimore Aircoil Co. Inc.-Cooling Tower World................................................... 46 Bartlett Tree Experts........................................... 41 Bird Barrier America Inc................................... 46 BOMA Atlanta..................................................... 52 BOMA International.................................. 51, 53 BOMA Nevada.................................................... 50 BOMI Institute..................................................... 27 Ciralight Global Inc............................................. 46 Cleaning Services Group................................... 46 Coast to Coast Direct....................................... 46 COIT Restoration Services............................... 41 Concept Development Associates Inc. Safety Chairs.................................................... 49 Cooper Notification.......................................... 13 Digitexx.................................................................... 4 Directory Solutions Inc.-TouchSource......... 47 Easy Lobby............................................................ 16 Electrodyn Systems Ltd..................................... 47

The BOMA Magazine July/August 2011

Company

Page No.

Energetic Lighting................................................ 21 Flexim..................................................................... 11 FLIR Systems-InfraMation........................ 10, 47 Garlock Equipment Co..................................... 47 Garvin Industries................................................. 40 Gee Asphalt Systems Inc.................................. 47 General Elevator Parts Inc................................ 47 Georgia-Pacific North American Commercial Business.................................... 47 Grainger.................................................................... 3 Griswold Controls............................................... 18 Huguenot Laboratories..................................... 47 IFMA....................................................................... 19 Institute of Real Estate Management (IREM)................................................................ 45 Jessup-GloBrite Photoluminescent Systems.............................................................. 48 Johnson Controls Inc............................................ 9 Kemna Restoration & Construction.............. 48 Keyscan Access Control Systems................... 31 LEDtronics Inc..................................................... 48 Magnetek............................................................... 48 Maxton Manufacturing..................................... 48 Meltdown Glass Art & Design........................ 48 Nexus Valve.......................................................... 48 Nixalite of America............................................ 48 Oasis Brands Inc..................................................... 7

Company

Page No.

Pro-Bel................................................................... 24 Quadlogic Controls Corp................................. 49 R2 Hinge LLC...................................................... 49 Redi Controls Inc................................................ 49 Safety Technology International Inc. STI....................................................................... 43 SageWater....................................................... Cov 3 Salsbury Industries............................................... 37 SERVPRO Industries Inc.................................... 15 Sheffield Metals................................................... 40 Shortridge Instruments Inc............................... 52 SIGNARAMA....................................................... 25 SignValue................................................................ 49 SimonsVoss Technologies................................. 42 Spot Coolers........................................................ 17 T2 Site Amenities................................................ 49 Tate Access Floors.............................................. 49 Telgian..................................................................... 49 Total Door............................................................ 49 Trane Company................................................... 14 Watco Manufacturing Co................................ 20 Zeag Canada Ltd................................................. 50

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We asked customers what they looked for in commercial heating and cooling equipment. They told us:

Reliability, Quality, Durability, Serviceability So, we made sure we had all of these covered... and added one more:

lfC Un ont its ain ed

up to 16 EER

up to 14 IPLV (AC) / 24 IPLV (EC)

rs lle Ch i

up to 13 EER / 4 COP

up to 19 EER / 6 COP

G W eot SH he P rm Un a its l/ Ai r Pu -So m urc p e Un H its eat

up to 14 EER

La Sy rge st Sp em l s it

up to 17 SEER

Sm Sy all st Sp em l s it

p rg e Un Ro its oft o

al l Un Ro its oft op

Energy Efficiency

up to 14 EER

up to 19 SEER

High Efficiency

Contact your local AAON representative to learn more about AAON products and discover the many heating and cooling solutions AAON can provide.

R89580

Locate AAON representative

www.aaon.com

(AC) = Air Cooled (EC) = Evaporative Cooled

Rooftop Units • split systems • GeotheRmal heat pUmps • aiR-soURce heat pUmps • chilleRs • self contained Units