Commercial Real Estate Salaries Rising Up to 25,000 Jobs to Open Soon, as Baby Boomers Retire Government Affairs Committee Launched Deanna Drake-Copelan, Chair of BOMA OEB’s Government Affairs Committee, discusses some legislative challenges facing East Bay cities. (See page 4 for details)
BOMA Members Enjoy Spring Golf Tournament Our Golf Tournament offered fun opportunities to socialize and further business relationships with fellow BOMA members and their guests. (Photos on page 5 )
BOMA Member Profiles Anne Sparks and Liz Allio-Thomas exemplify the best traits of BOMA principals and members. (See pages 6 and 7)
Many commercial property and facility managers throughout the Bay Area are earning good salaries and bonuses, an upward trend that has been recorded in recent years by CEL & Associates Inc.’s latest National Real Estate Compensation Survey. For example, the median base salary for a top asset management executive, nationwide, was $184,400, with an annual bonus of 44.5%. East Bay executives might expect even more, since a Robert Half survey shows that employees in the Oakland metropolitan area average earning up to 25% more than the national average. At the lower end of the scale, an assistant property manager’s median income was $52,800, with an average bonus of 7%, according to CEL. In the East Bay, one might expect up to an additional 25%. Property managers of office buildings CRE professionals are climbing to from 250,000 sq. ft. to 1,000,000 sq. ft. positions with higher salaries. nationwide earned median-level salaries that ranged from $72,200-to-$94,200, with bonuses of 9.6%-to-11.9%. Those figures would be inflated by 25% for East Bay executives, applying Robert Half ’s survey. This favorable compensation report is good news for those considering a career in commercial real estate. CEL’s CEO Chris Lee said in an interview with HORIZONS, “There are incredible opportunities for young people who are qualified.” He emphasized that entry-level staffers with some education in commercial real estate are preferred. Lee pointed out that as Baby Boomers retire, sometimes suddenly, companies in the industry will need knowledgeable people to fill their positions. “Based upon the expected surge of Baby Boomer retirees, once their retirement future is secure, a potential shortage of 15,000-to-25,000 ‘qualified’ workers per year will be created within the real estate industry,” Lee predicted. There are also good jobs open for building engineers, whose median salary earnings, according to the CEL study, were $60,900 on a national level, with a 5.9% annual bonus. East Bay engineers might expect 25% more, given the Robert Half estimates of generally higher wages paid in this area. Union scale engineers are also higher. For more details on CEL surveys visit, www.celassociates.com.
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President’s Corner
Thanks to Our 2013 Partners
With commercial rental rates at historic highs in San Francisco, do you expect more tenants to lease offices in the East Bay? A combination of continued strong employment growth and a tightening of the San Francisco office Universal Protection Service market will result in the Oakland market vacancy trending downward over the next few years. Which regions of the East Bay do you expect Able Services to be the primary beneficiaries of moves from ABM San Francisco? Alliance Roofing It would appear that the Emeryville and Oakland Melody Thebeau PG&E CBD markets will benefit mostly with vacancy rates currently hovering 12% and 13% respectively end of Q1. The job market in the East Bay continues to improve, with the unemployment rate dropping to 8.0% in Arborwell February, 150 basis points lower than in February 2012, and better than the statewide Biagini Waste rate of 9.7%, according to the California Employment Development Department. I Cagwin & Dorward suspect the immediate spillover may look to these markets initially and work their Heathorn Mechanical Services way into the suburban markets shortly thereafter. Horner & Singer, LLP Does Oakland’s high crime rate and police department troubles deter Perfection Sweeping prospective tenants? Securitas Crime is prevalent in all major cities. Certainly Oakland’s crime rate is ranked in Unisource the top tier of cities in the country. As an Oakland resident and being native to the City of Oakland, I will say that the greatest misconception is that crime is everywhere in Oakland. Oakland’s greatest crime issues are concentrated in the areas of the largest Bramasole Properties LLC disadvantaged residential population and not the immediate downtown sector. That Brandywine Realty Trust said, crime will remain a barrier to some firms, as it is hard to have a conversation CBRE about the benefits of Oakland without the issue of public safety coming up. CIM Nonetheless, there remains significant interest in the City of Oakland because of our LBA Realty rents compared to San Francisco. The strategic location from a commute perspective with BART, public transit and the ease of access to our major highway infrastructure is hard not to find appealing. What sort of economic advantage can tenants expect in the East Bay over San Francisco? Business tax structures can vary significantly between municipalities. A booming urban city, such as San Francisco, might have a great deal of city/county-provided services which require an added revenue source such as increased business taxes. Subsidized transit such as MUNI, subsidized housing, health, education and other government-mandated programs in San Francisco might be many times higher than neighboring communities such as Oakland or Emeryville. Unionism and entrenched wage policies may also cause a boost to the cost of ownership in the City of San Francisco as compared to areas of Oakland and the East Bay, which is then passed through to tenants. Oakland and the East Bay also foster a less expensive employment structure with greater benefits such as parking and ease of transportation access. Other factors contributing to an East Bay advantage for tenants? There are also several tax incentive programs offered by the City of Oakland, such as a Business Tax Incentive Program which applies to businesses with 20 or more employees relocating from outside of Oakland into the Oakland city limits. Under the program, eligible new Oakland businesses can receive full or partial waivers on their business tax payments for up to three years. Additionally, the Enterprise Zone program offers businesses that reside within its borders the opportunity to reduce their State business income tax through a variety of tax benefits.
Platinum Partner Gold Partners
Silver Partners
Principal Partners
Thebeau is President of BOMA Oakland-East Bay and Director of Operations - Northern California LBA Realty.
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Interview with Deanna Drake-Copelan CBRE | Asset Services, Chair of BOMA OEB Government Affairs Committee What are the primary local government issues facing commercial property owners in East Bay communities like Oakland, Walnut Creek, Fremont? East Bay commercial property owners are faced with many issues ranging from tax reform to climate change and from property rights to green building standards. The California legislature recently introduced over 400 new bills of which approximately 100 are tagged by BOMA California as impacting commercial real estate. Perhaps the greatest threat during this legislative session is the potential adoption of a revision to the Prop 13 tax structure. Many lawmakers are introducing bills with some form of split-roll tax assessment where commercial real estate is taxed differently than residential real estate. This aggressive tax reform would increase property taxes and damage property owners and tenants alike. How do you intend to organize your new committee to make known BOMA’s concerns about local government actions? Through the resources provided by BOMA California and BOMA International, the committee meets monthly to review pending local and statewide issues. As a committee, we discuss and monitor the progress of each of these issues and, if deemed needed, reach out to the area legislative representatives, elected officials and regulators to voice the commercial real estate industry’s concerns. On June 11, 2013, a group of us will be converging on the State Capital to meet with our legislative representatives and advocate for commercial real estate interests. Most of us know that actions by constituents have the greatest impact on elected officials.
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BOMA Spring Golf Tournament Our Spring Golf Tournament featured American landmarks, including tee and food holes inspired by the Alamo, the White House and Disneyland.
Top photo: the winning foursome – John Gary Marsh, HMS (Heathorn Mechanical Services), Brian Raymond, McCarthy Cook – UC San Francisco, Christopher A. Merino, HMS (Heathorn Mechanical Services and Robert Rodriguez, Able Engineering – Pacific Plaza. Lower left photo: The winning Alamo and Texas Taco theme food hole sponsored by Universal Protection Service with Elizabeth Trowbridge, LBA Realty and Liz Allio-Thomas, Universal Protection Service. Lower right photo: LBA Realty’s Disneyland-inspired display won best tee hole. With LBA Realty team members Melody Thebeau, Angie Kang (aka Pocahontas), Ebony Pickettay (aka Tiana) and Elizabeth Trowbridge.
Special Thanks to Our Tournament Sponsors Main Event Sponsor Alliance Roofing Bar Sponsor Restoration Management Ball Sponsor Valley Crest Longest Drive (Men’s & Women’s) LBA Realty Winner Best Tee Hole for Disneyland Theme Closest to Pin (Men’s) Har-Bro Closest to Pin (Women’s) Perfection Sweeping Highest Score American Asphalt Putting Contest P.D. Larson Construction
Food Holes Universal Protection Service Winner Best Food Hole for Alamo Theme & Texas Tacos ABM Cole Supply Paul Davis Tecta America/The Growing Company Bingham Taylor Roofing Waxie Arborwell Tee Holes Otis Elevator Valley Crest Rescue Rooter Bauer’s Parking Concepts Horner & Singer, LLP Universal Site Services Clean Source Candy Cart McNevin
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Principal Profile
Anne Sparks, Asset Manager Nevada Pacific Consulting
When Anne Sparks entered the field of commercial real estate a decade ago as a receptionist, becoming an asset manager seemed like a distant goal. But mentoring by CRE eminence Margot Crosman, cultivating dozens of friendships with principal and associate members of BOMA, plus BOMI educational attainments, resulted in Sparks’ climb up the ladder of her profession. Says Sparks, “BOMA should be seen as a mentor. It educates you, introduces you to others in the industry, shows you different career paths, introduces you to new ideas, helps you determine who has integrity and provides casual interaction opportunities. Relationships are the greatest way to build business, but you cannot expect overnight success. Just like personal relationships, business relationships require nurturing.” BOMA OEB Board Member Anne Sparks Sparks has served BOMA Oakland/East Bay in many capacities: Environment likes to travel the world in her downtime. Committee chair, TOBY (The Outstanding Building of the Year) Awards Committee member and judge (2011-present), TOBY Local, Regional & International award winner 2010-2011, BOMA International Conference attendee (2011 and 2012) and member of the Board of Directors, BOMA-OEB (2012-present). She’s a big believer in the benefits of BOMA’s educational programs. That, along with learning experiences from other principals and associates, she believes is the key to career success. And now she’s ready to give back. “I want to help mentor the next generations through committee work and education. I also look at BOMA to form business relationships with associates and principals for collaboration and to stay abreast of new products and ideas that may help my properties stand out in the market.” When she’s not doing CRE, she’s chasing her two little girls around, playing golf and traveling the world.
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Associate Profile Liz Allio-Thomas, Regional VP Sales, Universal Protection Service Not too many people can say that BOMA is actually in their DNA, but it’s a claim Liz Allio-Thomas can surely make—and more. She also grew up as a child in BOMA, because her father was president of BOMA-Greater Los Angeles in the 1980s, and she has fond childhood memories of attending BOMA national conventions with him. So when she graduated from St. Mary’s College, she went into commercial property management in LA, then moved to the Bay Area, where she was with R&B Commercial before becoming a vendor, first with OneSource then at Universal Protection Service Liz Allio-Thomas enjoys attending in 2001. musical and sporting events. Like many others, she has found throughout her membership in BOMAs that the organization can be a career “safety net” for people working both in property management and as service or product providers to buildings by creating many opportunities for people to network and serve with others on committees. “BOMA has been a constant network for me and was pivotal in my move to the vendor side of the business. BOMA allowed me the opportunity to get involved, network and develop lifelong friendships,” she says. In her 23 years in BOMA she has gained a more total perspective on building issues, since she been both a principal and an associate member. She has been a member of the Allied Steering Committee for more than a decade and has taught building security classes for RPA candidates. She encourages companies to invest in their employees’ continuing education. When she’s not at work, she loves spending time with her family and particularly her dynamic eight-year-old son and visiting Lake Tahoe. She’s a golfer and an avid NFL and NBA fan.
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In & Around Your BOMA By Stephen Shepard, Executive Director BOMA Oakland/East Bay
Building a More Robust BOMA Benefits Everyone My professional association, American Society of Association Executives, did research based on a survey of about 17,000 individuals who are, were or could be but never chose to become members of an association. Seventy-eight percent of those surveyed first heard about the organization through personal professional contact. That means organizations like BOMA Oakland/East Bay rely on their members to help spread the word about the great things going on. Recruiting a new member is easy! Start with those close to you and expand to your larger network. Just share with them the benefits of BOMA Oakland/East Bay membership and how it has helped you professionally and personally. Both Associates and Principals can bring guests to member events at member pricing. This is great way to show the value of networking. Associate Members are the best resource for discovering which commercial properties are not part of BOMA Oakland/East Bay. If you do not feel comfortable suggesting membership to a client, reach out to the Membership Committee and let them know whom to contact. The same goes for Principal Members. As a BOMA Member Building, we hope that vendors who are competing for your business
are asked if they belong to BOMA. We are not suggesting that just because a vendor is a member that it should be the deciding factor on doing business, but we encourage you to invite members to bid first. Fifty percent of those under the age of 30 stated that professional development was their reason for participating in a professional association. Is your organization looking for those with designations to advance to higher-level
“Seventy-eight percent of those surveyed first heard about the organization through personal professional contact.” positions? Designations, such as the RPA, show that you have the competency required to perform and be successful in the profession. Ninety-four percent of those who receive a BOMI Designation, such as the RPA and FMA, agree that it helped better position their corporation or organization for success. BOMA Oakland/East Bay is the resource to help you achieve! There are also designations for engineers, such as the SMA and SMT. Prospective members can visit bomaoeb.org/join to sign up. Just remind them to add your name in the “Who referred you?” line on the application for recruitment recognition.
About BOMA Horizons BOMA HORIZONS is published by Eason Communications LLC for BOMA Oakland/East Bay
Editor: Henry Eason Ad and Art Director: Ellen Eason Eason Communications LLC
To advertise, contact: Ellen Eason at 415.596.9466 or ellen@easoncom.com