BOMA Award Winners Recognized for Their Outstanding Talents
Photo credit: Kent Goetz
Panel Predicts Bright Future for East Bay CRE
(See page 3.)
BOMA Member Profiles Get to know principal member, Kelly Jauregui, Cushman & Wakefield, and associate member, Jeannie Nyberg, American Asphalt. (See pages 8 and 9.)
Award Gala Scenes
(See page 11.)
Gathering at Oakland’s opulent Scottish Rite Temple on February 9, the Bay Area’s commercial real estate community celebrated the winners of the TOBY (The Outstanding Building of the Year) Awards and other honorees at the 2017 BOMA Bay Area Annual Awards Gala. The event, a joint endeavor of BOMA San Francisco and BOMA Oakland/ East Bay, recognizes prestigious BOMA member buildings. In addition to Best Office Building 250,000–499,000 SF the TOBYs, Treat Towers, Walnut Creek awards were CBRE announced Best Office Building 500,000 –1 million SF for the The Ordway, Oakland OMYs (Outstanding Members of the Year) for both CIM Group BOMAs. (See page 4 for coverage of the OMYs.) BOMA East Bay buildings performed well in this year’s awards competition. The Ordway in Oakland, managed by the CIM Group, won the TOBY in the largest category (500,000–1 million square foot). Other East Bay awardees: Treat Towers in Walnut Creek won in the 250,000–499,000 square foot space, which is managed by CBRE. RiverRock Real Estate Group won in the suburban office park/lowrise category for the Dublin Corporate Center in Dublin. On the San Francisco side of the Bay, the TOBY in the historical building category went to 140 New Montgomery, managed by Best Office Building (Continued on page 5)
Suburban Office Park/Low-Rise Dublin Corporate Center, Dublin RiverRock Real Estate Group
2 President’s Corner
Q&A with Mike Meyer Tell us a little about your CRE career and how your career path led you to the profession. Also, how did you first learn about BOMA and what prompted you to get involved in the leadership? After earning my bachelor’s degree in mass communication from UC Berkeley (Go Bears!), I landed an entry-level position in the management office of a high-rise office building in the East Bay, which proved to be an ideal training ground. In this role I gained invaluable hands-on experience in operations, accounting, and construction and prepared myself for the next step as an assistant property manager supporting a portfolio in excess of 1 million square feet of office and industrial properties across Northern California. The exposure to different ownership structures and product types helped to round out my skill set and prepared me for success at the property manager level. After several years managing Class A high-rise properties, I was fortunate to grow into a regional role directing and supporting property management teams and assisting clients in the development of their asset strategies. In my current role with RiverRock Real Estate Group, I support business development and oversee a large and diverse portfolio consisting of office, retail, and industrial properties as well as several large-scale development projects on behalf of institutional, municipal and entrepreneurial clients. I find this role hugely rewarding, because it allows me to leverage my 20 years of industry experience and be a resource to our teams, offering guidance and support to our incredibly talented and hard-working RockStars. My career growth would definitely not have been possible without the support of a number of leaders and mentors along the way as well as the power of the BOMA network. During my first month in the industry, I worked for Tim Ballas, who told me, “Mike, you’re going to the BOMA luncheon today.” To this I replied, “What’s BOMA?” Within a few short years, I was amazed by the strength of the relationships that I had built through BOMA and the knowledge that I had gained through the educational programming. Six years ago, I decided that it was my turn to give back to the association by serving on the board of directors. Like most things in life and business, I’ve found that the more energy and focus I invest in BOMA, the more I have gained from it. I am so grateful for the opportunity to serve as president this year. With a half-dozen offices in the East Bay, RiverRock is a market leader with regional expertise. What unique qualities does the RiverRock brand bring to the CRE market? RiverRock Real Estate Group was founded on the simple principle that happy people provide better service. Our business is all about people, and we at RiverRock know that our success rests on the shoulders of our remarkable, highly trained RockStars, who pursue excellence in every detail of our assignments. With this in mind, our key performance indicators are
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Bishop Ranch CBRE, Inc. CIM Cushman & Wakefield Nearon Enterprises Next Play Consulting PJMB Commercial RiverRock Real Estate Group not based on our EBITDA or NOI, but rather on our employee feedback and client satisfaction ratings. The firm is incredibly proud to have been named one of the “Best Places to Work” for eight years running, and now we’re shooting for year nine! As a regional provider of superior property management, specialty accounting, and construction management services, we are exclusively focused on our core competencies and not distracted by (Continued on page 7)
3 Bright Future Seen for Commercial Real Estate in the East Bay What’s on the horizon for commercial real estate in the East Bay? The future looks bright, with strong demand and rent growth, robust logistics activity, and competition for available medical offices, according to CoStar Marketing Analyst Katerina Cheok. Lots of companies are looking to move from San Francisco, and “companies like Uber are inspiring people to look at the East Bay differently.” Cheok presented at a the January BOMA Oakland/East Bay luncheon program, “State of the East Bay Market.” Steve Ring, Fulcrum Development, followed her presentation with an informative panel discussion with brokers about trends in commercial, industrial, retail and medical office buildings. Here are some key take-aways from the program: w CoStar’s data shows lots of demand for office space with not much increase in supply. Demand is expected to continue. Submarkets with the most construction are Pleasanton and Emeryville, with most space pre-leased. w Rent growth continues, with the East Bay being one of the top markets in the nation (12.6% growth last year). w Logistics providers have been leasing up space, so there are not a lot of available blocks, especially large ones. Oakland Port activity is strong. w There is a softening of supply for city versus suburban markets. Suburban markets are expected to out-perform urban markets. w Projections are for higher rents in the Tri-Valley, with a decline in vacancy. However, Concord is weak. w Labor trends are key. Back office jobs can move anywhere, and many companies are moving such jobs to Texas or Arizona rather than expand or relocate within the expensive Bay Area. w Cannibas tenants are locating to Oakland and Richmond and are a good fit for industrial buildings. w Landlords and tenants struggle with “last-mile” commute. w Mall sales are down due to e-commerce. However, retail
centers are retooling by incorporating food and entertainment venues like Dave and Busters, which Millennials desire. Restaurants are leasing smaller spaces. Retail is expected to perk up in Oakland and in other select areas. It helps to have residents living nearby. w Medical office buildings are evolving due to the Affordable Care Act. There is more decentralization — and more uncertainty in the space. Hospitals are opening clinics for non-urgent care, as it is less expensive.
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Congratulations to BOMA OEB OMY (Outstanding Members of the Year) Winners
2016 Engineer Member of the Year John Eckmann CBRE
2016 Principal Outstanding Member of the Year Manny Moreno Next Play Consulting
2016 Associate Outstanding Member of the Year Eric Brown BSM Facility Services Group
Mike Meyer, BOMA OEB President (left) with Manny Moreno (right).
Mike Meyer, BOMA OEB President (left) with Eric Brown (center) and Wes Powell, BOMA SF President.
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Awards Gala (Continued from front page) Cushman & Wakefield. The rejuvenation of this Art their peers in this dynamic commercial real estate market.” Moderne gem honors its masterful design while also BOMA OEB revealed at the Gala an exciting addition to transforming the building into a the TOBY awards recognition: a technologically advanced space. decal similar to the BOMA 360, CBRE was victorious in the EnergyStar and LEED decals will 100,000–249,000 square foot be given to winners to be displayed category (500 Washington) and at their buildings’ front doors for in the government building tenants, prospective tenants and category (180 Howard), both others to see. One decal will be in San Francisco. awarded to each winner for the Kilroy Realty’s teams scored two highest level they achieved: local, TOBYs. 301 Brannan won in the regional or international level. 2017 BOMA OEB Local Winner under 100,000 square foot category, After bringing home a TOBY, and 201 Third Street was honored teams advance to the Pacific New TOBY decal revealed at this year’s Gala. in the renovated building category. Southwest Region to compete against “This year we had a record number of entries for the other buildings for the honor of moving on to international awards, now in the third year of the joint effort between the competition. The Outstanding Building of the Year “TOBY” Awards were developed in 1985 by BOMA International to two area BOMAs,” said Cortney Shadel, who played a key honor and recognize the quality in office building operations role on the committee that organized the awards competition. and award excellence in buildings management. The TOBY “Not only were there more competitors than ever, there mission is: “recognizing operational efficiency, tenant retenwere also creative innovations undertaken by the building tion, emergency planning and committee impact.” teams. Bay Area buildings continue to raise the bar and inspire ®
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President’s Corner (Continued from page 2) other service lines. This approach breeds a culture of excellence, personal growth, and client service that we believe is unmatched in the industry. Congratulations on RiverRock’s selection by the City of Alameda to provide property management services at Alameda Point. What excites you about this historic project? Alameda Point is an exciting and dynamic development project involving a partnership with the City of Alameda. The chance to participate in the revitalization of what may be one of the last development sites of this size and scale in the Bay Area is a once-in-a-lifetime opportunity. The project aligns perfectly with our growth strategy and is our third assignment involving the development of former military bases— RiverRock also manages the non-residential portion of The Presidio in San Francisco and Liberty Station in San Diego. What are some of your goals as President of BOMA Oakland/East Bay? We have come so far in just the past five years in the areas of membership growth and government affairs. I have big shoes to fill! I have three goals for the year: First, I’d like to increase member engagement. I will judge my success as president not by how many members we gained but by the level of member participation in committee work, task force efforts and partnerships. Second, I think we have a huge
opportunity to develop a Bid BOMA program that leads the way and that other local BOMAs can use as their model. To this end, we have convened a Bid BOMA task force and will be implementing some of its recommended improvements in the near term, so stay tuned! Finally, I’d like to increase the link and “stickiness” between our local association and the work that BOMA International is doing. BOMA International offers some exceptional tools in the areas of member education, advocacy and research, and there’s so much we can leverage at the local level that will offer value for our members. Connecting our committees and membership at large to the larger association is key to member engagement and retention. What activities do you enjoy during your downtime? I’m a family guy, and I value every minute that I spend with my wife, Heather, and 7-year-old son, Zachary. I also enjoy SCUBA diving, distance running, coaching my son’s baseball team, traveling, hiking, and camping—all of which are so much more rewarding when shared with family and great friends.
Meyer is President of BOMA OEB and Executive Managing Director, RiverRock Real Estate Group.
Kelly Jauregui Senior Property Manager, Cushman & Wakefield
Managing a portfolio of 19 properties from Novato to San Jose keeps Cushman & Wakefield Senior Property Manager Kelly Jauregui on the go. She oversees a team of six that helps run the day-to-day operations of her portfolio, which consists of 19 Bay Area properties including office, retail and industrial properties. “I thrive on the spontaneity and challenges that each new day offers and seek to find a balance while juggling a portfolio of this size,” Jauregui says. Her responsibilities include project management, financial reporting and mitigating any property related issues that may arise. Jauregui was one of the original founding members and past chair of the Emergency Preparedness Committee at BOMA Oakland/East Bay. In addition to continuing to serve on the Emergency Preparedness Committee, she is also the vice-chair of the Awards Committee, which orchestrated the recent TOBY Awards Gala (see coverage in this issue). She is also a contributing member of the task force for Bid BOMA, which encourages BOMA members to do business with the more than 100 associate members who provide products Kelly Jauregui’s hobbies include and services. fishing, especially with her dad. “I am a dedicated member of BOMA and understand the importance and value of being an active participant in the organization,” she adds. During her down time, Jauregui enjoys fishing with her dad, relaxing at home with her daughter and cat, and dining out, hiking and having a good time with her friends and family.
Mark Your Calendar for These Upcoming BOMA Events March 21 – 2016 Building Codes Seminar March 22 – Bowling Night with Industrial SIG April 13 – Luncheon April 19 – Bay Area Medical Office Real Estate Summit April 24 – Walter Finch Golf Classic May 11 – Luncheon May 17 – Industrial SIG Tour: Port of Oakland May 18 – CREATE: Industry-Wide Gala June 8 – Luncheon August 10 – Luncheon September 7 – BOMA Oktoberfest Trade Show and Beer Tasting October 12 – Luncheon November 8 – Fall Membership Mixer
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Jeannie Nyberg, Director of Marketing American Asphalt
There is no typical day for Jeannie Nyberg, American Asphalt’s Director of Marketing, “Some days are spent in the office with the operations and sales teams. Other days are spent on job sites with the crews documenting our work. I like to describe the guys working as a ‘Symphony of Asphalt.’ And some days are spent at events or volunteering on committees,” says Nyberg. American Asphalt has specialized in complete asphalt and concrete pavement solutions for more than 30 years. For BOMA property professionals, a well-maintained parking lot is important for their building’s image, as well as the safety of tenants. “A parking lot is the first and last thing you see when you visit a property. If your parking lot has failed asphalt and concrete, pot holes, alligator cracks and is fading, your tenants and visitors will notice. In fact, those problem areas can become a liability if ignored. New asphalt is a costly investment. Not maintaining your asphalt will cost you even more in the long run,” Nyberg advises. “The recent rains are adding to problems. Water can travel between the cracks, underneath the asphalt or concrete, softening the ground and cause the product to break apart Jeannie Nyberg enjoys hitting the and crack. Problem areas in your parking lot can become worse in this weather. Now is a slopes with her family. good time to meet with our estimating team on the property to identify these problem areas and come up with a maintenance plan. As a trusted advisor to our clients, we want to protect your investment, reduce costs and maintain your pavement for years to come,” she adds. At BOMA OEB, Nyberg has served on the Emerging Professionals Committee and now chairs the committee. During her off hours, she enjoys “time spent with my family, including my 10 year-old daughter and 5 year-old son. We love hiking, biking, swimming, camping and trips to Tahoe. We only get one pass in this life, make it count!” she exclaims.
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Top photo: Lucinda Alipio, CBRE; Warren Mead, Cushman & Wakefield; and Kelly Jauregui, CBRE. Lower photo: Deanna DrakeCopelan and Myra Wright, CBRE.
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Scenes from the Annual Awards Gala
TOBY Winning Teams from the East Bay Clockwise from top left: Treat Towers/CBRE team. Dublin Corporate Center/RiverRock Real Estate Group team. The Ordway/CIM Group team. At left: Karen Cowan, Restoration Management Company; Warren Mead and Kelly Jauregui, Cushman & Wakefield.
Photo credit: Olivia Smartt Photography
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Save the Date for the CREATE Industry-Wide Gala....
And see page 8 for our Calendar of Events.