BOMA SF Foundation to Help Solve Building Workforce Shortage... See Page 12
Route to:
Summer 2012
Office Buildings Create Major Economic Impact Developing and operating the office buildings in San Francisco requires more than 70,725 employees and generates almost $2 billion in economic activity, according to a recent study by George Mason University, commissioned by the Building Owners and Managers Association International. Says study author Professor Stephen Fuller, “Office buildings represent a continuing and accumulating stream of expenditures to support their operations, with ongoing expenditures for management, maintenance and repair, building services and utilities. Combined, these continuing expenditures have a huge, positive effect on the many local businesses that provide contract-building services and, in turn, generate demand for a wide range of workers.” Fuller says offices are becoming ever more important in the American economy, as we “shift away from goods-producing jobs (steel, lumber, electronics) and into services-producing jobs (professional and business services such as healthcare, education, financial, and legal). Inventory and expenditures also grow with the economy’s general expansion.” The study also shows that for each dollar spent on office building operations, the economy gains $2.57. For the $79.7 billion spent on office
building operations nationwide in 2011, that economic multiplier contributed more than $200 billion to the country’s gross domestic product. The commercial real estate sector also produces 19.6 jobs for each $1 million spent on operations and 1,561,517 in direct jobs across all sectors of the national economy in 2011, in addition to an estimated 2.2 million more jobs directly related to the on-site management and operations of office buildings. “As the study shows, when even a single building is constructed and filled with workers, the economic impact of that activity, multiplied over the lifetime of that building, makes a enormous contribution to the value of a community,” says Meade Boutwell, president of BOMA San Francisco. Says Executive Vice President Marc Intermaggio, “We only hope that when government officials devise legislation and regulations affecting the commercial real estate sector, they take into consideration the vital role our industry plays in creating the right work environment for the many industries that keep San Francisco prosperous and growing.” The 93 local BOMAs represent members that operate 9.9 billion square feet of commercial and government-owned office space, providing workspace for 44.3 million office workers.
What’s Inside Views...
Leadership Perspective • Page 2 City Hall Status Report • Page 3 Members on the Move • Page 5 Meet BOMA Members • Page 7 State & National Issues • Page 9
Mixing & Mingling... Page 13