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BOMA Membership: Excellent ROI Education…Networking…Advocacy Mean Greater Profitability

2012-13 TOBY Winners 555 12th Street (above left) and Century 21 2100 Franklin2101 Webster Streets (above right) (See back page for details)

BOMA Beats ADA Lawsuit Abuses ADA reform legislation, supported by BOMA California, will curb lawsuit abuses arising from the Americans With Disabilities Act, while promoting increased compliance with disabled accessibility building codes.

BOMA 360 Buildings Get Higher Tenant Scores A recent CoStar survey shows that buildings that attain BOMA 360 status are likelier to retain tenants. And a Kingsley & Associates study detailed the reasons in recent survey. (See Page 8 for details)

Why do companies join BOMA? For more than a century the Building Owners and Managers Association has been delivering tangible benefits to commercial real estate and allied companies to a network that has grown to more than 100 BOMAs in metro areas like the East Bay. BOMA collectively represents 16,500-plus members who own or manage more than nine billion square feet of commercial properties. “BOMA delivers,” says Manny Moreno, chair of BOMA Oakland/East Bay’s Membership and Member Services Committee and a commercial real estate professional. “That’s why people in our industry who want to operate the most profitable facilities join BOMA, take advantage of its educational and networking programs and support its government advocacy goals.” “There is a definite payback to membership,” says BOMA Oakland/East Bay Executive Director Stephen Shepard. “BOMA provides training for BOMA advocates for members’ employees in the latest methodology, keeps indusinterests before local, state try professionals up to date on the latest code, and federal governments. regulatory and statutory developments — and brings allied service professionals much closer together with property and asset managers to achieve industry-wide goals—like sustainability.”

Serving Oakland...Bayside Cities...and Along the 680 Corridor BOMA serves every type of commercial facility throughout Alameda and Contra Costa Counties: office buildings, industrial and retail. And we provide membership opportunities for firms that sell every type of product and service needed for building operations. Numerous firms that serve buildings reportedly generate much of their business through active membership in BOMA. Their representatives serve on committees, help create events and provide financial and intellectual resources to BOMA. Many BOMA members report enjoying the camaraderie of being with people at social events like golf outings, theme parties, luncheons and serving on committees with others who understand the unique nature of commercial real estate. “Mixing business with pleasure can also deliver some ROI, because people tend to share insights and knowledge when they are relaxed sometimes more than sitting across from each other in a conference room,” says Shepard. Photo by Marlo Lao, Courtesy of Visit Oakland.


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President’s Corner What are 2013’s greatest challenges for commercial real estate in the East Bay… in California? Overall, CRE transaction activity is likely to grow at a slower pace due to continued economic uncertainty. Given easier access to capital, REITs have a greater opportunity to dominate the transaction activity in the near term. While some may argue this isn’t ideal for the smaller private real estate sector, which is a large composition of East Bay CRE, growing Melody Thebeau competition from investors such as institutions and private equity funds are not far behind. One of the larger issues is that conduit lending, which investors depend on to finance non-trophy assets in tertiary markets, has not experienced a meaningful recovery trend.

How can our industry best meet these challenges? In the East Bay market, distressed assets will continue to be a key transaction catalyst, as lenders seek to permanently resolve troubled mortgages. The good news is that economic indicators point to a better outlook for the East Bay as the region continues down the path of recovery. Industries supporting long-term strength of the East Bay, like health care, science, and technical services, are growing by some of the largest margins. As the cost of residential real estate in parts of the East Bay remains at historic lows, coupled with the lower cost of commercial real estate in the East Bay as the most affordable in the Bay Area, we will likely attract the attention of the new and growing businesses that benefit from the continuing economic growth of the region. Not surprising, as rental rates increase in San Francisco and San Jose disproportionately to the East Bay, some companies vacate the former and move to the East Bay. A good example of this trend occurred in 2007, as rates increased in San Francisco and San Jose but remained flat in the East Bay, net absorption turned negative in the dominant markets but spiked up briefly in Oakland. Finally, with rates rising in San Francisco and San Jose once again, the East Bay may benefit from a windfall of new occupancies from companies moving from other regions of the Bay.

What are your own goals for BOMA as this year’s president? In 2013 my plan is to continue to guide the strategic leadership goals and objectives established through our Board of Directors. Our focus will include greater integration of committee leadership and board objectives. Providing for increased membership involvement of both associate and principal members will also be an important goal, as well as alignment of our educational and monthly program events. It is also true that we will partner with other BOMAs and local industry affiliates to broaden our community interest in common initiatives such as the Bay Area TOBY and EARTH Awards.

Thebeau is President of BOMA Oakland-East Bay and Director of Operations - Northern California LBA Realty.

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Gold Partners Able Services ABM Alliance Roofing PG&E

Silver Partners Arborwell Biagini Waste Cagwin & Dorward Heathorn Mechanical Services Horner & Singer Perfection Sweeping Securitas Unisource

Principal Partners Bramasole Properties LLC Brandywine Realty Trust CBRE CIM LBA Realty

BOMA To-Do List ✔ Participate in the BOMA Experience Exchange Report. Benchmark your operating income and expense. ✔ Become a BOMA 360 building and show your leadership in bestpractices building operations. ✔ Register for BOMA International's Every Building Conference & Expo, June 23-26, San Diego.

Learn more at www.boma.org


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Principal Profile

Scott Kirkpatrick, Director of Corporate Occupier and Investor Services, Cushman & Wakefield

Musician Scott Kirkpatrick is a perfect example of how someone can migrate from a career far afield of commercial real estate into successful property management. He’s still composing and performing music, but Kirkpatrick has climbed the CRE and BOMA ladders. The Cushman & Wakefield Corporate Occupier & Investor Services Director in Walnut Creek has served as president of BOMA Oakland/East Bay and has also been a guiding force on several committees. Kirkpatrick has also taken full advantage of BOMA’s educational and networking programs. “From an educational standpoint, BOMI’s offerings are excellent collegelevel courses that cover a myriad of disciplines within the field of property management. Receiving my RPA was crucial for my integration from the music industry into commercial real estate. From a networking perspective, I am indebted to the organization for providing the basis for meeting some lifelong friends and acquaintances not only in the Bay Area but in many major markets in the U.S.,” he says. After hours, Scott enjoys playing the drums and composing music. Joining BOMA Oakland/East Bay in 1987, he began serving on the Programs and Educational Committees, but has since shifted his focus to government relations. “Today I am more interested in seeing how we can leverage our advocacy efforts to the extent that building owners take notice and offer more support. Our legislative victories at the local, state and national level have really saved owners a tremendous amount of money, yet we still have a difficult time convincing some of them that there is value in their assets being member buildings,” says Kirkpatrick. When Kirkpatrick isn’t managing properties, he’s making music, skiing, surfing, enjoying time with his 10-year-old daughter Caroline and mixing a little business and pleasure with his property manager wife Andrea.

Associate Profile

Sue Rinetti, Account Executive ABM Janitorial Services

If you’re a member of BOMA and it isn’t paying off for you, chances are you probably haven’t met Sue Rinetti and heeded her advice. She’ll tell you quickly that if you don’t feel you’re getting a return on your investment in BOMA, it is probably because you aren’t taking advantage of its many opportunities to network, learn the industry and gain career advantages. In her many years of BOMA membership, spanning two careers, she’s learned that getting involved in committee work is the key to success. As a new member, she first joined the Membership Committee. “What a great way to start!,” she says. “I was talking to people I never would have met. I spent time with the ‘decisionmakers,’ people I never would have gotten close to only attending the luncheons.” Since then, she’s moved on to the Associates Committee, which she chairs this year. It’s the primary event-planning committee and, as such, the panel that generates the most appreciation within the organization for the many enjoyable Sue is an avid San Francisco Giants fan. parties they create. Rinetti says: “BOMA Oakland/East Bay has helped me so much in business. If you make a five-minute impression on a decision-maker, your membership is worth it! My pet peeve is when people tell me they aren’t renewing their membership because they don’t think it paid off. I ask them if they had gotten involved at all. The response — I went to the lunches and no one talked to me. Well, if you don’t get involved, no one is going to get to know you.” She’s taking her enthusiasm to the board this year, where her leadership will pay off for the whole organization.


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Prepare Your Building for the Future of Telecom Building owners and managers know that telecommunication infrastructure is one of the most critical features potential tenants look for. Tenant access to ultra high-speed, secure, scalable networks that support cloud computing, Internet and Business Ethernet is not a luxury, it’s a necessity! And end to end fiber is a must— copper can’t satisfy the growing appetite for bandwidth. tw telecom is a leader in “future fitting” buildings, providing next generation network connectivity that meets all those needs and anticipates tenant growth and technology advances. With our fiber optic network, we connect to nearly 17,000 buildings in the U.S. And our fiber doesn’t stop at the building telecom common area space (MPOE). We coordinate with your building engineer and riser management company to vertically pre-position fiber optic cable to all floors. Our unique, proactive approach conserves riser space, minimizes disruption and facilitates fiber connectivity directly to the tenant’s suite for optimum network performance and reliability. The result is a “close the deal” selling point that sets your building apart from other properties. Please contact tw telecom to upgrade and “future-proof” your property. Make your building’s telecom network accessibility a defining element of your value proposition!

Make your building’s telecom network accessibility a defining element of your value proposition!

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For more information, contact: Dave Ellebrecht, Vice President/ General Manager 925.953.7027 Dave.Ellebrecht@twtelecom.com


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BOMA Events Mix Networking & Fun Backpack to Briefcase Seminar: Etiquette

Fall Golf Tournament

Thanks to Our Sponsors: Universal Protection Service CBRE 5 Star Conference Center Left: seminar class learns valuable tips on business etiquette.

The winning foursome: Eric Brown, Brad Meyer, Brian Curl and Steve Nahm.

Texas Hold ‘em Fun was had by all at our Texas Hold ‘em night that benefited Camp Wonder.

Event Sponsors Main Event Sponsor Township Building Services, Inc. Bar Sponsors ABM, Able Services, Calvac Paving Table Sponsors BSM, MCC Realty, Marble West, Miller Star Regalia, Peacock Construction, Perfection Sweeping, Service Master Restoration Services, Universal Protection Service, Waxie Sanitary Supply Card Sponsor Varsity Painting Wine Sponsors Arborwell, Cole Supply, Paul Davis Restoration DJ Sponsor Century Lighting

Top left: first and second place winners Tyler Morley, PD Larson Construction and Chuck Gaskin, ABM. Top right: big winner Ebony Pickatay, LBA Realty. Lower left: volunteers Kathleen Taylor, Paul Davis Restoration; Becky Law, MCC Realty; and PK Green. Lower right: Singers: Denise Yee, PM Realty Group; Janet Burlinson, Customized Custodial; Mandy Newton, Varsity Painting. DJ Michael Ybarra, Century Lighting.


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State Issues Report Californians Organize Against Higher Taxes Last year’s election produced a two-third’s “supermajority” of Democrats in the California legislature that have broad taxing authority, in spite of any Republican opposition. Some Bay Area legislators are leading tax-hike efforts. The California Against Higher Property Taxes (CAHPT) coalition of business organizations is renewing its efforts this year to oppose new tax-hike proposals — especially “Split-Roll” legislation offered by Senator Mark Leno (D-San Francisco) that would allow local parcel taxes for schools to pass with 55 percent of the vote, instead of the two-thirds currently required. “Increasing property taxes will only hurt California’s small businesses, workers, consumers, seniors and taxpayers and further damage our state’s struggling economy. We don’t need more new taxes placed on California taxpayers,” says CAHPT.

Meantime, BOMA California reports that Assembly member Rob Bonta (D-Oakland) has also introduced a parcel tax measure that may even be of more concern for owners of non-residential property, as its effect will be to create a de facto split roll property tax at the local level. The bill, AB 59, (Bonta) would specify that the provisions requiring uniform application of taxes shall not be construed as limiting a school district from assessing taxes in accordance with rational classifications among taxpayers or types of property, thereby abrogating the holding in Borikas v. Alameda Unified School District. Advocates of this policy would like to be able to charge a much higher property tax to commercial properties versus residential properties making it easier to pass such taxes with the voters in the district by keeping the rate low on actual voters while hiking them on businesses who are unable to vote. Concerned? Let your legislators know your position.

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8 BOMA 360 Buildings Increase Tenant Satisfaction Tenants and brokers are increasingly looking for the “BOMA 360” logo in building lobbies. And there’s a reason why. Studies have shown that buildings with this distinction have higher tenant satisfaction scores. To become a BOMA 360 building, a building must have attained the highest industry standards in building management and operations, safety and security, training and education, energy conservation, sustainability and tenant and community relations. "In this competitive marketplace, commercial property professionals need to find ways to differentiate their assets," said BOMA International former Chair Ray H. Mackey, Jr., partner and chief operating officer, Stream Realty Partners, L.P. BOMA 360-designated buildings in the East Bay include: 180 Grand Ave. (Oakland), 2100 Powell (Emeryville), 555 City Center (Oakland), Pacific Plaza (Walnut Creek), Pleasanton Corporate Commons (Pleasanton) and 1300 Clay Street (Oakland). For more information about BOMA 360, visit www.boma.org.

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National Issues Report: News from Washington Make Sure BOMA’s Voice is Heard President Obama’s reelection, coupled with a Democratic majority in the U.S. Senate and a larger Democratic minority in the U.S. House, means renewed focus on issues ranging from energy use to climate change (both mentioned in Obama’s inaugural address), higher taxes and legislation supported by labor unions, such as “card check.” BOMA members who want to influence federal legislation and regulations must make their views known through their members of Congress as well as directly to the White House and relevant federal agencies. One of the best ways to track government actions that influence the way you do business is to regularly visit www.boma.org and click on the Advocacy tab. BOMA’s trained government relations team keeps its fingers on the Washington pulse. Checking out BOMA International’s website also keeps you abreast of developments within your industry on a national level and in cities around the country. NOTE: East Bay area congressional leaders are Senators Dianne Feinstein and Barbara Boxer (who represent everyone in the State of California). U.S. Reps. George Miller, Mike Thompson, Barbara Lee, Jerry McNerney and Eric Swalwell represent various East Bay districts in the House of Representatives. You can learn more about their positions on the issues and obtain contact information by visiting the website www.house.gov. For Senators Feinstein and Boxer, visit www.senate.gov. FYI: For an in-depth report on issues facing commercial real estate this year, order BOMA International’s 2013 Issues Reports, an essential BOMA publication that highlights BOMA’s advocacy agenda for the 2013 year on legisla-

tive, regulatory and codes issues. It covers issues such as energy efficiency tax incentives, catastrophe insurance and leasehold depreciation. Visit www.boma.org.


10 Holiday Party at The Claremont BOMA Oakland East Bay’s annual Holiday Party was a festive occasion at The Claremont.

With Gratitude to Our Sponsors Main Event: Alliance Roofing and LBA Realty Drink Sponsors: Able, Bauer’s Intelligent Transportation, BWRS, Waxie Sanitary Supply Food Sponsors: Cole Supply, Marble West, PD Larson Construction, ThyssenKrupp DJ Sponsors: Coast Landscape, Otis Elevator Photo Sponsor: Universal Protection Service Napkin Sponsors: ABM, Georgia Pacific Party Favor: McNevin Cleaning Top photo: BOMA friends celebrate Lower left: Ed Ma, Able; and Jeneane Jennings, CAC Real Estate Management Lower right: Sue Rinetti, ABM; Marilyn Banks, Crosspoint Realty; Karen Cowan, Restoration Management; Lynn Linhares, California Plaza


11 Faleschini Leaves Great BOMA Legacy All people die, but a few special people live on in the hearts and minds of those they influenced. Who they were and what they represented endures in those of us who knew them. Such a man was Gary Faleschini, as evidenced by the many eulogies that followed his death last year and as seen by the tears and numerous stories told about him by those in his many business circles. Gary Faleschini was a loyal What did Gary leave BOMA member and friend. behind that is profitable for the rest of us? Beyond the natural warmth that he projected to all, Gary left some very practical business strategies for success that we can all use. His three decades of success in the janitorialsanitary industry were built to some extent on his personal commitment to learn all he could about the buildings industry.

He did this by participating in commercial real estate activities far beyond his responsibilities as a vendor of products. He knew he could more effectively provide for his clients if he understood their greater business challenges. He did this primarily through leadership positions at BOMA Oakland/ East Bay and BOMA San Francisco. Gary’s second major contribution was taking a long-term perspective in cultivating relationships. Instead of narrowly focusing only on people who could purchase the line of products he represented, he tried to be a useful friend to almost everyone he met in the greater CRE industry. He freely shared his knowledge and extensive network with anyone—never expecting an immediate payback. Simply put, he became the sort of person everyone wanted to know and was treasured by all who experienced his friendship. BOMA Oakland/East Bay Executive Director Stephen Shepard says, “Gary had a personal passion for BOMA Oakland/East Bay and our mission to serve the CRE community and profession. This passion was contagious, and it motivated many. This loss has created large shoes to fill.”

What’s The Best Way to Reach Your Target Audiences? Telling customer prospects how your company’s services or products benefit them—using statistics, photos, graphics, charts and testimonials—is the most effective way to increase sales. How much money did your product save building operators? Were tenants more productive in their space after your tenant-improvement project? Can you improve service delivery? Are your innovations producing healthier buildings? You can describe benefits like this in

display ads. You can also demonstrate the value you deliver by purchasing a special sponsored report in a BOMA publication that your target audiences are likely to read. Sponsored reports in BOMA Horizons are very persuasive. To Feature Your Company And you can use Contact Ellen Eason them in your own 415.596.9466 marketing and ellen@easoncom.com promotion—both print and online.

Green product or service providers: Reach your prospects in a special Sustainability Report that will be presented at the BOMA Bay Area EARTH Awards event on May 16. As a bonus, the report will also be included in the Spring issue of BOMA San Francisco Views. There are opportunities for both display ads and sponsored reports. Email ellen@easoncom.com to learn more.


BOMA Oakland/East Bay

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In & Around Your BOMA By Stephen Shepard, Executive Director BOMA Oakland/East Bay

Celebrating TOBY Winners hen a building wins a TOBY award it conveys several very tangible benefits that translate into a more profitable operation. Being an “Outstanding Building of the Year” in a particular category sends multiple messages to owners, brokers, tenants and prospects and

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Just getting ramped up for the contest renews a building team’s commitment to the very best practices in many categories: tenant relations, energy management, environmental compliance, emergency preparedness, personnel training and community relations. This effort improves a building’s performance, which translates into value for all concerned. For these reasons, I applaud the Center 21 Team at 2100 Franklin-2101 Webster Streets and the 555 12th Street Team for an incredible showing in winning the 2013 TOBY Awards in their categories: the first for buildings of 500,000 to 1 million square feet and the second for buildings of 250,000 to 499,999 square feet. Earning an award will also allow regional winners to automatically achieve the minimum required points in as many as four of the six sections of the BOMA 360 application. In addition, BOMA International approved a $300 discount off the BOMA 360 application fees for all regional TOBY winners. The TOBY Awards Committee will be hosting a TOBY 101 Workshop in March in conjunction with the luncheon. I hope you will come and see what is required to submit for the TOBY. Let’s not only have a showing locally in every category but regionally—and nationally. I guarantee that participating in the process will improve your building’s performance.

About BOMA Horizons The victorious Century 21 team celebrates its hard work and recognition at the annual TOBY awards event.

others. Judged by a jury of peers, the winners can legitimately claim they are doing the best job of any other building in their area in a particular category. Even entering the TOBYs contest means everyone involved in operating the building is proud of their accomplishments.

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


BOMA Horizons Winter