BOMA Views Fall 2011 by BOMA San Francisco

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BOMA SF Creates Educational Foundation

Fall 2011

Goal: Attracting, Training Top Work Force Marc Intermaggio. “In fact, educaDeepening its commitment to tion in commercial real estate is producing the nation’s best-trained continuous. We also intend to commercial real estate work force, spread the word that our industry BOMA SF has created a foundation offers a variety of stimulating and dedicated to training those who well-paid jobs operate buildings in the nation’s and becoming a most cutting-edge magnet for young urban area.” professionals and The foundaothers entering the tion will blend its field. extensive seminars, The BOMA BOMI RPA/FMA/ San Francisco SMA classes, Foundation will BOMA seminars explore key issues. Foundations of integrate all existReal Estate Management classes, ing educational programs, career outreach and similar activiinnovate new ones, offer scholarties with an internship outreach ships and set the industry’s highest program. standards for training in the “Creating the foundation will numerous fields associated with be a grand way for us to continue running state-of-the-art, sustainBOMA San Francisco’s reputation able and safe 21st-century for innovation into our second commercial buildings. century of service,” says BOMA “Careers in our industry San Francisco President Anne today require a much higher level Stephens. “Stay tuned for details of education,” says BOMA San as we organize it.” Francisco Executive Vice President

Developments to Watch Leadership Perspective • Page 2 Status Report on San Francisco City Hall Issues • Page 3 Members Sound Off • Page 5 Associate and Principal Member Profiles • Page 6 Mixing & Mingling at BOMA • Page 7 State & National Issues Affecting You • Page 9 Careers Committee Launched • Page 11

2 Leadership Perspective: Anne Stephens

BOMA Debuts New Publication he BOMA Bulletin is no more. And in its place, BOMA SF President Anne Stephens, CPM. as you can see, is BOMA VIEWS, our new publication Since social activities are a designed to reflect our continubig part of our organization, ous effort to remain relevant we’ll bring you highlights of and committed to our memmuch of the fun we share, bers’ interests and the industry. along with a calendar of events I am personally very excited for which you need to save the about our new publication date. We’ll recognize as many with its updated career and life look and “BOMA VIEWS offers a lot more passages as we content. With for advertisers, too: full-color have room to all of the opportunities to display your print. And electronic messages that ads and even a chance to we’ll ask your we receive publish articles about your opinion about these days, I hot-topic own products and services.” am glad that issues, then we still produce a hard copy give you the results in the next print version for our members! edition of the publication. We hope you like the new BOMA VIEWS offers a graphics and editorial tone of lot more for advertisers, too: BOMA VIEWS. We’ll have a full-color opportunities to number of standing features in display your ads and even a each issue, such as profiles of chance to publish articles BOMA members who have about your own products and distinguished themselves in services, showing how they service to our industry. We’ll benefit building operators and provide you with a Status tenants. Report on government So enjoy this issue and activities that affect us in San don’t forget to fill out the Francisco, Sacramento and Route Box on Page 1 and pass Washington, D.C. Our front it along to others in your page will always feature someorganization. Your next issue thing we consider newsworthy will arrive in early January. and important.

Thanks to BOMA San Francisco’s 2011 Corporate Sponsors Platinum Sponsor Able Services Gold Sponsors ABM Janitorial Services NRG Energy Center San Francisco Pacific Gas & Electric Recology Golden Gate

Silver Sponsors Alliance Roofing BCCI Construction Company CAC Real Estate Management Co., Inc. CleanSource Cypress Security LLC Equity Office Hines Metropolitan Electrical Construction, Inc. Otis Elevator Company ProTech Security Services, Inc. SF Electrical Contractors Assn., Inc.

Bronze Sponsors Biagini Waste Reduction Systems, Inc. Boston Properties Hanson Bridgett LLP Hathaway Dinwiddie Construction Co. Marble West McMillan Electric Co. Paramount Group, Inc. Richlen Construction RREEF Securitas Security Services USA, Inc. Shorenstein Realty Services The Swig Company, LLC Turner Interiors Universal Protection Service

Friends of BOMA ACC Environmental Consultants, Inc. American Asphalt Arborwell, Inc. CB Richard Ellis Charles Pankow Builders, Ltd. Coit Cleaning & Restoration Cole Supply Co., Inc. Cushman & Wakefield Farella Braun + Martel LLP GCI General Contractors ISS Facility Services LAZ Parking Nor-Cal Moving Services R.N. Field Construction, Inc. Sky Rider Equipment Co., Inc. The Lawson Roofing Company Waxie Sanitary Supply Young Electric Co., Inc.

Status Report A summary of San Francisco government actions affecting the operations of the commercial buildings and The City’s economic well being.

and trash service; (2) have the appropriate number, color and size containers placed close together in convenient locations at your site; (3) educate and train tenants and employees about the program; (4) work with the hired janitorial staff or contractors to create an effective program; and (5) make sure your building is participating in separating materials.

No Smoking!

Recycling: It’s mandatory!

Smoking of any tobacco products, plants, or other weeds in all restaurants, bars, lounges, and outdoor dining areas is prohibited in San Francisco, even when food is no longer served in the dining areas. Exceptions: for some exempted bars and businesses that operate only as a bar or tavern at all times, smoking is allowed in the side or rear outdoor patio portion of the bar except within 10 feet of doors, windows or vents of the bar. Outdoor dining areas of restaurants, including sidewalk dining tables, are not considered outdoor patios even if food is no longer being served or if a bar is located outside. Smoking is not permitted in all outdoor dining areas.

San Francisco’s mandatory recycling and composting requires that property managers: (1) sign-up and pay for adequate recycling, composting

For further updates, visit www.bomasf.org/advocate and www.bomasanfrancisco.blogspot.com

Due 2012-14: Commercial Energy Audits Under a new law, San Francisco will begin auditing existing commercial buildings in July 2012 and will complete its audits by April 2014. The ordinance aims to cut hundreds of millions of dollars in energy use and reduce air pollution. The ordinance affects more than 630 commercial buildings of more than 50,000 square feet and over 2,500 structures between 10,000-50,000 square feet.

Mayor Praises BOMA for Environmental Leadership OMA San Francisco “greatly contributed to our city being named the greenest city in North America,” San Francisco Mayor Ed Lee told a packed BOMA luncheon audience July 21, referring to BOMA’s leadership in passage of a new energy conservation ordinance to reduce greenhouse gases. The mayor also drew

applause when he said, “The city’s economy is the No.1 thing.” And he pledged to work to attract more technology firms and said, “We don’t want jobpunishing programs” in city government. Ken Cleaveland, BOMA SF’s director of government and public affairs, and Mayor Ed Lee discuss municipal issues at lunch.

4 Assess Damage Within Minutes of an Earthquake For building owners and facilities managers — particularly those with responsibilities for structures with critical needs — the ability to detect and assess building damage is invaluable.

New REFLEXX technology shows detailed damage reporting for a region or an entire campus (above) and down to the floor level (right inset).

“Imagine the value of knowing the actual health of your building just minutes after an earthquake,” says Dr. Farzad Naeim.

For more information: Angela Miller Digitexx Data Systems P: 480.339.0472 E: reflexx@digitexx.com www.digitexx.com/REFLEXX

Dr. Farzad Naeim, President of the L.A. Tall Buildings Council and past President of EERI, explains that while we often associate earthquakes with the visual spectacle of a fallen building, in reality most buildings today remain standing. However, it is often difficult to visually confirm the structural integrity of a building following an earthquake, and it is equally challenging to achieve this assessment quickly. Typically, a qualified structural engineer is required to do modeling and conduct a visual examination, prior to making an assessment. And even then, the assessment can be wrong. As Dr. Mustafa Erdik, Professor of Earthquake Engineering, stated in a recent New York Times report, “To say that a building is in bad condition is easy. To say that one is safe is hard.”

A New Approach to an Age-Old Problem Now, a new smart technology, known as REFLEXX, is providing a turnkey solution for real-time monitoring and damage detection reporting. In less than 15 minutes following a triggered event, the system produces detailed, damage reporting at the global, floor-by-floor and component level. “To address affordability and make a userfriendly solution,” explains Mark Sereci, CEO of Digitexx Data Systems. “Reflexx is a subscription-based tool that incorporates everything from product and installation to engineering support—at a low monthly fee. There is no upfront capital expense.”

5 What’s Your Opinion?

Members Sound Off

Issue: San Francisco Payroll Tax Moratorium for Certain Industries (Biotech, Internet) Pro: A city-wide moratorium on the payroll tax for businesses would level the playing field and provide a much needed tax relief for all business operators in San Francisco. The extra money saved could be used to invest in the business through infrastructure and/or employee growth. Con: The City and County of San Francisco may see diminished revenues for City services that would impact the day-to-day operation of businesses in San Francisco.

Issue: The recent proliferation of food trucks on the streets of San Francisco We Asked: How often are mobile food trucks parked in front of or adjacent to your building?

You Said:

Do you think it’s fair for San Francisco to allow a payroll tax moratorium for certain industries? ❑ Yes, they help locate those industries in the City. ❑ Yes, but it would be helpful for my industry to see a relief from the payroll tax, given the current economy. ❑ No, but I understand that we need to attract and retain businesses in San Francisco. ❑ No, the moratorium should be applied to all businesses, citywide.

To reply, visit www.bomasf.org and click the survey link in “What’s New” section.

Thanks for your response on this issue that BOMA San Francisco is following on behalf of its members.

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6 Principal Member Profile

Blake Peterson, Langley Investment Properties (formerly Ashforth Pacific)

When Blake Peterson managed property in Portland OR, she “drank the green Kool-Aid,” a major reason why when she took over management of the Orrick Building in San Francisco she joined BOMA’s Energy & Environment Committee and soon led it to new heights. She’s also dedicated to a healthier ecosystem to help create a better world for a cute little guy named Caleb to whom she recently gave birth. BOMA’s Marc Intermaggio says Blake “walks the talk” as she has led the Orrick Building to LEED Platinum certification and, through her committee work, challenges the industry to share her passion for “raising the bar on resource conservation as high as practically possible.” She also applies quality control lessons learned in grad school to the smallest details of building operation. She says, “I’m fascinated by glamorous topics such as static pressure, financial modeling and coreless toilet tissue. What can I say?” BOMA has become her go-to professional network, since she’s the only San Francisco-based property manager for Principal Member Blake Peterson is a driving force on Langley Investment Properties (formerly Ashforth Pacific). BOMA’s Energy & Environment Committee. But don’t look for the Tennessee native downtown when the powder’s deep at Tahoe. Her advice to young industry professionals: “Being humble will get you everywhere; become a student of the industry by learning everything you can from your vendors, contractors and co-workers.”

Associate Member Profile What Skip Soskin likes best about doing tenant-improvement architecture is “seeing the fruits of your labor in months, rather than years” and working on projects where he can interact with all parties involved and see them satisfied. The Huntsman Architectural Group architect recently did a project for a government agency whose employees had been crammed into space that made their lives miserable. He was delighted to see how much more motivated and efficiently they worked in their newly designed office. BOMA Member Services Director Tory Brubaker says Skip is popular because “he is approachable, receptive, generous

Skip Soskin, Huntsman Architectural Group

with his time and his breadth of knowledge. He embodies the BOMA spirit of members helping other members for the greater good of the industry and association.” Off-hours, Skip is teaching at the Academy of Art University, enjoying his model trains, hanging out with his family, watching baseball and listening to bluegrass. His advice to BOMA newcomers: “Talk to everyone and about everything to learn as much as you can all the time. Every project and every opportunity will allow you to learn something new.” Skip Soskin enjoys many leisure activities, including cooking and canning, model trains, bluegrass and baseball.

Mixing & Mingling

Young Professionals Summer Mixer

Elmer Johnson Golf Tournament BOMA members and their guests enjoyed a day of golf and socializing at the 57th Annual Elmer Johnson Golf Tournament on September 12 at the Peninsula Golf & Country Club. BOMA SF Young Professionals gathered on July 14 at Sens Restaurant for a lively Summer Mixer sponsored by Peacock Construction. BOMA YP Steering Committee encourages members with 0-7 years of industry experience to attend its educational and networking events to expand their industry knowledge and relationships. See the BOMA SF website to learn about upcoming events.

Members on the Move Kevin FitzPatrick, RPA, has joined Boston Properties as Regional Property Manager. Kevin was formerly a senior property manger with CAC Real Estate Management Co., Inc.

Top photo: Mark Kelly and Derek Schulze of Able Services. Middle photo: Frank Nagle of Nagle Energy Solutions and Dwain Bothelo of NRG Energy Center. Bottom photo: Ben Fish of ABM Security and Heather Hassler of Hudson Pacific Properties; Norm Dito of CB Richard Ellis in the background.

Zach Brown, LEED AP O&M, has joined CB Richard Ellis as Manager of Environmental Services for a large industrial portfolio. Most recently, Zach worked at the Ferry Building as an Assistant Property Manager for Equity Office.

8 Langley Investment Properties Makes its Debut There’s a new name in town, but one with familiar faces to the those in the BOMA community locally, regionally and nationally. With its purchase of the West Coast portfolio of Class A high-rises owned by Ashforth Pacific, Langley Investment Properties has launched its new regionally focused brand.

“Real estate is a local business. But we realize that BOMA gives us national and regional opportunities that provide synergy between markets,” says Scott Langley, CEO, Langley Investment Properties.

Langley Investment Properties’ portfolio includes the BOMA EARTH Award-winning Orrick Building at 405 Howard Street in San Francisco (top and lower photos). Center photo: Scott Langley.

“Our name change will be very seamless, with the same excellent team, partners and vendors,” says Scott Langley, CEO of Langley Investment Properties. “We have a great beachhead with the Orrick Building in San Francisco and would like to expand in San Francisco and be more of a part of the fabric of the community.” Langley’s strategy calls for increasing its investments, development and management. The company is the largest Class A owner in Portland’s central city and is growing in Seattle. Its Vice President of Property Management, Wade Lange, serves on the Executive Committee of BOMA International and on the board of BOMA Portland.

Local, Sustainable Focus “We have a local focus and realize that real estate is a neighborhood business,” says Blake Peterson, who is the Senior Property Manager of the Orrick Building and an active BOMA San Francisco member. “Neighborhoods are made up of people, and people enjoy working with us because we’re friendly and professional. We are 100% leased right now.” “We will also build on our sustainable accomplishments, waving the green flag in a cost-effective way,” she adds. “We are known for being on the cutting edge of the sustainability movement, with creative engineering and other methods.” As both owner and manager of its properties, Langley brings a unique and caring perspective to management.

To learn more, contact: Anna Langley Langley Investment Properties 825 NE Multnomah St., Ste. 1275 Portland, OR 97232 alangley@langleyinvestment.com www.langleyinvestmentproperties.com

9 State Issues

National Issues

From BOMA California...

From BOMA International...

“Split-Roll” isn’t a weird new dance, but if enacted it would surely contort commercial real estate in unpleasant ways, thanks to San Francisco’s own Assembly Member Tom Ammiano. AB 448 would change Proposition 13 to make it easier to raise property taxes on corporations. It would impose a complex, burdensome property tax by triggering reassessment of property owned by publicly traded corporations once every three years. It would also expand the definition of change of ownership for property tax reassessment purposes by stating that a change in ownership occurs when 100% of the ownership interests are sold or transferred in a single transaction. Bottom line: higher taxes on an already over-taxed sector. For more information, visit www.bomacal.org

Let your Members of Congress know that they can help strengthen their commercial real estate communities by co-signing important bipartisan legislation that would permanently reduce the timeline for depreciating leasehold improvements on commercial property to 15 years. Specifically, you should ask them to support H.R. 1265 and S. 687. Without congressional action before year’s end, the current 15-year depreciation schedule will automatically revert to 39 years on Jan. 1, 2012. Visit the Legislative Action Center at www.boma.org for more specific information. (Remember: Your BOMA dues include valuable industry representation in Washington.)

For more information, visit www.boma.org

Performance MATTERS Is Your Office Building Up to Par? Share Data. Improve Performance. Achieve Excellence.

The just-released 2011 EER® will help you measure and manage asset performance like a pro reads the greens. Subscribe today at www.bomaeer.com

10 Social Events & Luncheons Oct. 13

Annual Membership Meeting & Member Recognition Luncheon The City Club, Main Dining Room

Nov. 2

Un-Oktoberfest Schroeder’s Restaurant

Nov. 17

November Membership Luncheon The City Club, Main Dining Room

BOMA San Francisco Thanks 2011 Gold Corporate Sponsor...

BOMA YP Networking Mixer Otis Lounge Dec. 7

Annual Holiday Party, Julia Morgan Ballroom, Merchants Exchange Building NRG’s sponsorship helps our efforts in advocacy, professional development and programs for the commercial real estate industry in San Francisco.

BOMA San Francisco Salutes... BOMA members and guests enjoy celebrating at the BOMA San Francisco Centennial Gala at the Palace Hotel.

For online registration and a complete calendar of BOMA social events, luncheons, workshops, seminars and committee meetings, visit www.bomasf.org/calendar

BOMA Views is published by BOMA San Francisco. Editor: Henry Eason Art Director: Ellen Eason Eason Communications LLC, San Francisco Advertising Director: Tory Brubaker

To advertise, contact: Tory Brubaker at 415.362.2662 x115 or toryb@boma.com

2011 Gold Corporate Sponsor PG&E’s support demonstrates its belief in the value of BOMA’s advocacy, professional development and information services for commercial real estate professionals. PG&E has also been a key sponsor of BOMA’s annual EARTH Awards.

11 Careers in Real Estate Committee Launches Outreach Efforts information sessions, developing promotional materials romoting career opportunities in the commercial real estate industry to emerging professionals is and launching a social media effort. the mission of BOMA San Francisco’s new The Careers Committee, with help from members of Careers in Real Estate Committee. the BOMA San Francisco Young “We’re a stealth industry,” says Professionals, will reach out to Marc Intermaggio. “There is a whole universities and identify which infrastructure in an office building that industry sectors are a best fit for people are unaware of – and there are their courses of study. “Many lots of great opportunities.” BOMA YPs are recent graduates Committee Chair Warren Mead of Bay Area colleges, so we’ll tap of Cushman & Wakefield and Vice Committee members set goals and action items. into that active network,” says Left to right: Michael Hahn, Vice Chair Chair Michael Shum of the Paramount Liz Henderson, a co-leader of the Michael Shum, Chair Warren Mead. Group, Inc. are leading the effort to Young Professionals. make students, career changers and young professionals In addition to reaching out to recent college outside the BOMA membership aware of career paths graduates, the committee will raise awareness for career open to them. opportunities among employed professionals changing “Our first goal is to promote careers in property careers and unemployed professionals who are interested management,” says Mead. “Beyond that, we want to in the industry. Working with the new BOMA San raise awareness for positions in leasing, construction Francisco Foundation, the committee will also help management, engineering, security and service areas.” develop a viable internship program. To learn more, Outreach efforts will likely include: organizing contact Francine Anderson at francinea@boma.com a speakers bureau, participating in career fairs and or 415.362.2662 x112.

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The Last Word: Marc Intermaggio

Three for the price of one; now that’s real value! e’re sometimes asked to help explain to owners and investors the importance of participating in BOMA. It’s a fair question which we welcome! As you’re preparing budgets for 2012, we’d like to remind you that simply put, BOMA provides: • Training and professional development that enhances effective operations and profitability • Political advocacy that protects private property rights, preserves asset values, and supports a strong and dynamic business environment • Access to a rich network of local, state, national (and worldwide!) industry contacts that can help you achieve your business and your personal goals Did you know that joining your local BOMA not only secures local marketplace benefits, but also rewards you with programs, products and services from BOMA California and BOMA International? A portion of the dues you pay funds our state and national associations, so you should explore ways to maximize your membership by visiting www.boma.org for BOMA International, and www.bomacal.org for information about our statewide association.

Members active in our association understand how BOMA enhances both personal performance and corporate success. We also foster greater public awareness for the immense value our industry creates in the communities in which our members operate. From housing the workforce to strengthening the local tax base and supporting community services, our members and our industry deserve the respect and credibility that BOMA works hard to foster. BOMA San Francisco enjoys a high level of active engagement from its volunteers. We truly appreciate your dedication, and we strongly encourage you to leverage your membership by participating in BOMA California and BOMA International as well. Together, let’s strengthen our state and national associations! Marc Intermaggio, CAE, is the Executive Vice President of BOMA San Francisco.

Reasons to Renew Your BOMA Membership ✓ ✓ ✓ ✓ ✓ ✓ ✓

Relevant education and training Valuable networking opportunities Global network of professionals Recruitment, job-finding and professional development support Shared knowledge and expertise from other members Advocacy on important issues Many fun events!