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CREATE Gala Celebrates CRE Education Milestones Walter Finch Golf Classic:

A Day of Networking & Fun

The third annual CREATE Gala at the Bently Reserve on May 18 was an occasion for celebrating the

(See page 10.)

BOMA Member Profiles Get to know principal member, John Eckmann, CBRE, and associate member, Eric Brown, BSM Facility Services Group. (See pages 8 and 9.)

CREATE Gala Scenes

(See page 15.)

Glenn Shannon, Shorenstein, addresses attendees.

industry-wide alliance’s efforts to attract students to commercial real estate

careers… but not a time to rest on the program’s laurels. It was revealed that CREATE (Commercial Real Estate Alliance for Tomorrow’s Employees) is expanding to reach more than 6,000 SF students. That’s big news! CREATE is a collaboration of BOMA San Francisco, BOMA Oakland/ East Bay, IREM San Francisco Bay Area, and NAIOP San Francisco Bay Area Chapter, operating through the BOMA San Francisco Foundation. Funds raised at the gala support the Commercial Real Estate Certificate Program at SF State. The event’s theme was “The Key to Your Success,” and emcee Stan Bunger, KCBS Morning Anchor, lauded the CREATE program as a key to both employee and employer success. “The program gives students a direct (Continued on page 12)

Medical Office Building Summit Highlights Trends The convergence of demographic and technology trends, along with public policy, are shaping the future of medical office buildings, panelists shared at a recent Medical Office Building (MOB) Summit given by BOMA Oakland/ East Bay. Focus on the user experience is emerging at the same time that the Affordable Care Act is creating opportunities for new outpatient and urgent care facilities and the adaptive reuse of buildings. (Continued on page 4) Above: Meridian was hired to develop this San Rafael outpatient clinic in the dense downtown area. Photo credit: Michael Polk, Majestic Captures.


2 President’s Corner with Mike Meyer

The Future Is Here – Are You Prepared? “Office buildings in the future will look like a concierge hotel, operate like a spaceship, function as a teleport and be secured like the Pentagon.” (Christopher Lee, The Real Estate Industry In 2025—100 Bankable Predictions You Need To Know) I’ve been thinking about technology quite a bit recently, and I admit that I have more questions than answers. How will technology affect our industry? Are we all prepared? While technology advances at an exponential rate, why has our industry been notoriously slow to adapt? Will robots replace property managers? The most compelling part about Lee’s vision is that he isn’t referring to a 50-year time horizon. Within 10 years, innovation in security technology, building automation, temperature control, and energy management will transform our tenants’ expectations and experiences. On a grander scale, advances in robotics, artificial intelligence, and driverless-vehicle technology are already changing the way business is done across the globe. Your Board of Directors is evaluating these trends as we set the strategic direction of BOMA Oakland/East Bay for 2018 and beyond. In the coming weeks, the Board will be seeking input from committee members and leaders as part of the ongoing effort to optimize committee work. There is a big opportunity for committees to work more closely together, and we need your ideas in order to make it happen. So, put those thinking caps on! As the role of the property manager evolves, it becomes more critical than ever to develop a pipeline of highly trained, educated entrants into our workforce. This underscores the importance of the Commercial Real Estate Alliance for Tomorrow’s Employees (CREATE). CREATE provides funding and support for college-level instruction, job shadowing, and internships to support the hiring needs of our industry. Through the work

Thanks to Our 2017 Partners Platinum Partners

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ProTech

Gold Partners

Able Services Alliance Roofing All Seasons Roofing & Waterproofing, Inc. Kastle Systems Metcon TI, Inc.

Silver Partners

American Asphalt Arborwell BSM BrightView Landscape Services First Security Legacy Mechanical & Energy Rossi Builders Inc. Securitas

Principal Partners

Bishop Ranch CBRE, Inc. CIM Cushman & Wakefield Nearon Enterprises Next Play Consulting PJMB Commercial RiverRock Real Estate Group of CREATE, we can ensure that talented, educated workers seek out careers in real estate and that they are well prepared once they arrive (unlike me, when I fell backward into my first job in property management!). Advances in technology also highlight the importance of our Associate members. While property managers are generalists, our Associate members are truly specialists in their fields. Remember to lean on the BOMA (Continued on page 7)


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Bay Area TOBY Winners’ Regional Victories Kudos to six Bay Area TOBY winning buildings that also won TOBY awards in the Pacific Southwest Region in their prospective categories. These buildings now advance to compete in the International TOBY Awards contest, with winners announced at the BOMA 2017 International Conference & Expo on June 27.

TOBY Regional Winners

Under 100K SF—301 Brannan, San Francisco Kilroy Realty Corporation 100-240K SF—475 14th Street, Oakland, CBRE Government Building—180 Howard Street San Francisco, CBRE

Historical Building—140 New Montgomery, San Francisco, Cushman & Wakefield Renovated Building—201 Third Street, San Francisco Kilroy Realty Corporation Suburban Office Park/Low-Rise—Dublin Corporate Center, Dublin, RiverRock Real Estate Group

201 Third Street

Dublin Corporate Center

475 14th Street


4 MOB Summit (Continued from front page) “Healthcare has become more consumer-oriented. Experience is important,” said Bill Graham, Dignity Health Sequoia Hospital, which looks at “where we have opportunities to be patient-centered.” Other trends: convenience, location and branding are influencing the current and future wave of medical buildings. Cool amenities like food courts and hip neighborhoods add to the experience, and more clinics are cropping up in financial districts and nice neighborhoods, rather than large medical complexes. In addition, disruptive technologies like driverless cars could change the look of MOBs, as less parking may be needed. Finally, retiring Boomer doctors and dentists mean that many tired buildings are ripe for repositioning.

Creative Development Strategies Mike Conn, Senior Vice President, Meridian, shared a case study of a project on Broadway in Oakland that his firm developed. He noted increased opportunities like this are increasing since the ACA was passed. The development is a dialysis facility near Kaiser and Sutter Health. Entitlement challenges included working with a multifamily facility behind the structure. His firm conducted multiple community outreach meetings. “You want the community to be your friend,” he said. Also, sometimes neighbors have good ideas. Medical/health care is seen as a safe and steady investment. Key takeaways from Conn: Get creative in dense, urban infill markets. Speed to market and branding are important. “Relationships are key to counteracting cost escalations and labor costs. Be good to your vendors.” Finally, he added that “site control is everything: you have to be able to add value by handling entitlements and developing on schedule.”

Real Estate as Strategy Trask Leonard, President/CEO of Bayside Realty Partners, moderated a panel discussion of MOB experts. He asked: How do you view real estate as part of strategy? Some remarks: w Andy Grover, One Medical’s Senior Director, Head of Real Estate, said that “real estate has been a real differentiator” for the company. One Medical, which last year opened its first Oakland location near the border of Piedmont at the site of a former video store, had to convince the landlords to allow a medical facility there. It is now one of the company’s fastest growing units and “feels like an important part of the neighborhood. We are proud of the design.”

w Anni Chapman, Project Manager, Sutter Health System, said, “Use what you have, but look at what’s happening in the market.” Sutter is looking at retail locations for traditional care, as well as for walk-in. She shared an “unfortunate” experience in Watsonville, where a moratorium was put on establishing medical in retail locations. She noted that it can be hard to get city and community support for projects. w Patty Craig, Practice Manager, Allergy and Asthma Medical Group, said her group likes locations near primary care, but that parking can be a challenge. It recently took over a practice in Vallejo and is looking for space in Berkeley.

Investor Panel Shares Insights For many investors in the MOB sector, the goal is to improve properties that are older and under-utilized. However, concerns include profound regulatory and construction costs. John Pollock, Meridian Chief Operating Officer, noted that in the early 2000s secondary and tertiary markets began to fill in. He believes that a lot of institutional players are overpaying for assets. Catherine House, Managing Director, SVN|QAV Associates, said that investors want MOBs with a consumer focus. She added that investors need to be aware of the age of a building and take into account Title 24, seismic and ADA issues. Also important is the age of the physicians who occupy a MOB. What are their practice plans? In addition, medical condos have been popular because of attractive SBA loans. Disruptive technologies and the desire for a retail-type facility mean that buyers may want to scrape and build new. Pollock said there has been a dearth in the past few years in available properties. Investors weigh the cost of old vs. new. Though tough now, other panelists observed that there are assets out there, but many are multi-tenant and can be problematic.

Reach Your BOMA Prospects Promote your products or services in BOMA Horizons. Contact: Ellen Eason at 415.596.9466 or ellen@easoncom.com


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Dedicated to quality craftsmanship, the Tile & Stone Council of Northern California is a resource for BOMA members who wish to feature distinctive and lasting tile and stone installations in their projects.

Key Changes in BOMA Measurement Standards Will Increase Revenue for Building Owners

With the recognition of current measurement trends in the new 2017 BOMA Office Standard, building owners and financial institutions will be able to realize income from services and amenities (balconies, covered galleries and roof top terraces) that have been provided to occupants and not measured under prior measurement standards, according to Stevenson Systems President Peter Stevenson, who spoke at a BOMA OEB luncheon. “To the real estate broker and occupant, a reduced uncertainty and minimization of risk will result from the new standard,� he noted. In addition, through the use of the new measurement standard, global occupiers will have greater consistency of measurements. Some Other Trends Identified by Stevenson: Building measurement standards do not set the trends in the measuring of a building, they follow them. In reality, measurement standards trends are a reflection of common practices used by real estate brokers, asset managers, financial institutions and mostly building occupants in a real estate transaction to identify space. Measurement standards as a whole are reactive to a need to identify issues and solve them with respect to the unit of measurement (the square foot or square

meter) used to help determine the value, rents or operational expense during a negotiation. Building designs and construction techniques have changed significantly over the years. The expanded requirements of occupants have resulted in building designs that are much different than they were 50 or 75 years ago. Occupants in buildings are setting the trends with ever-increasing lists of required amenities and additional services. For measurement standards to be relevant and purposeful today, like the BOMA Standards, they must be updated regularly to keep up with these trends. Governmental regulations in upgraded life safety requirements have also had a great influence in measurement trends over the years. A trend in recent years to mitigate litigation risks and the requirements of global occupiers to have consistent, understandable and repeatable standards of measurement has also had a major influence on building measurement standards. As transformations are made to where we work and where we live, a greater requisite of building measurement standards will be demanded of the space that is bought, sold, leased or managed. To learn more about Stevenson Systems and measurement standards, visit www.stevensonsystems.com.


6


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President’s Corner (Continued from page 2) Associate member community for information on the latest advances in our industry. And of course, remember to Bid BOMA! While technology will certainly drive massive changes in the role of the property manager, there will always be a need to develop the soft skills that are necessary to build relationships. In speaking with the membership, I’m hearing more and more that you value the personal connections made through committee participation and social events. It was in this spirit that the Signature Event was reintroduced this year—as a venue to foster strong, meaningful relationships among BOMA members. Perhaps it is no coincidence that while technology is at the forefront of the business world, a huge value is being placed on human interaction and relationships. The educational and networking programs available through BOMA can help all of us position ourselves for success by developing both our IQ and EQ (Emotional Intelligence). Be sure to take advantage! Meyer is President of BOMA OEB and Executive Managing Director, RiverRock Real Estate Group.

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Principal Profile

John Eckmann, Chief Engineer 180 Grand (CBRE/now Harvest Properties)

For close to 20 years John Eckmann has been Chief Engineer at 180 Grand Ave in Oakland, a multi-story Class A high rise. He has been working for CBRE for the last 12 years, but is in the process of transitioning to Harvest Properties with the sale of the building. “I’ve enjoyed many challenges and successes in my time at 180 Grand: Taking 180 Grand from a troubled asset, suffering from deferred maintenance, to a LEED Platinum Building; participating in the building being awarded a BOMA Toby Award for renovated office building and several other awards,” says Eckmann, who was named BOMA OEB Engineer of the Year for 2016 at the Annual Awards Gala this past February. “One of the most gratifying things is working with the tenants, helping them solve problems and providing them with a healthy and comfortable place to work,” Eckmann adds. “Every day is busy with a variety of different challenges. With around 700 tenants, there is plenty to do—from small personal touches to large and complex system upgrades and tenant improvements. Plus, all those multitude of things that tenants never think about but that need to be done for their comfort and safety.” Eckmann serves as vice chair of the BOMA OEB Codes & Standards committee, providing education and support to BOMA members. He is also a member of the Government John Eckmann, shown in Affairs Committee, tracking legislation and potential regulations. “I enjoy sharing knowledge Amsterdam, enjoys traveling. and experience with my peers. Even after a long career, I still learn something new every day!” In his leisure time, Eckmann loves to travel both internationally and around the U.S. “Married to a Kiwi (New Zealander), we have far-flung family and friends. Maintaining those connections provides us the opportunity to experience a variety of cultures and viewpoints. Just in the last few years, this has meant trips to Europe, Asia and Down Under.” y u, passport

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Associate Profile

Eric Brown, Account Manager BSM Facility Services Group

Putting together proposals with customized service plans, looking at job sites and interacting with clients by email and sometimes over lunch are all a part of Eric Brown’s busy days as Account Manager for BSM Facility Services Group. “BSM bundles many services, including janitorial, landscape and general maintenance/repairs,” Brown says. “By being a single point of contact for many solutions, we save time for busy property managers and owners. We will do what we need to in order to fit the client’s needs.” “I also enjoy being a part of groups such as BOMA OEB, CREATE and IFMA,” adds Brown, who was recently named BOMA OEB Associate Member of the Year. He serves as chair of the Community Outreach Committee, which works together with the Emerging Professionals and the Events Committee. He also represented BOMA OEB on the CREATE (Commercial Real Estate Alliance for Tomorrow’s Employees) Eric Brown enjoys spending time committee and assisted with planning the third annual gala in May. with his English bulldogs. His advice for other members is to get involved. When Brown joined the Emerging Professionals Committee, he “started to build relationships that will last a lifetime. I’m proud to be a part of BOMA OEB. Not only has it done a lot for my career, but it’s helped shape me into the person I am today. I look forward to watching BOMA progress and grow. It seems like every year it just gets stronger and more creative.” Brown’s free time is filled with his passions: cooking, fishing, golf and watching sports with friends. “I spend a lot of time cooking for my family and friends. I have a garden, so I can grow my own vegetables and spices to make pasta sauces and simply to use fresh ingredients. Being so into cooking, I wanted to catch my own fish instead of buying them in the store. That’s why I fell in love with fishing.” Brown also loves “to spend time with my English bulldogs, Tank and Bubba. They bring a huge enjoyment to my life.”


10 Scenes from the Walter Finch Golf Classic

Thank you to Our Sponsors Food Hole Sponsors

Tee Sponsors

Bigham Taylor Roof BrightView Horner Law Group, PC Metcon

ABM Air Systems Service and Construction Arborwell BSM Most Accurate Calvac Paving Shot Sponsor Cole Supply American Asphalt DRYCO Gachina Landscape Waxie Sanitary Supply

Photo credit: Kent Goetz

Team Prize Highest and Lowest Sponsor

Putting Contest Sponsor

Matrix HG

Coast Landscape Management

Reception Bar Sponsor

HARBRO Emergency Services & Restoration Longest Drive Sponsor

Allied Universal Services

Closest to Pin Sponsor

IES

Clockwise from top right: Kelly Jauregui, Cushman & Wakefield; Melissa Wood, All Seasons Roofing & Waterproofing; Rebecca Pandelis, Whit’s Painting; and Warren Mead, Cushman & Wakefield. Tim Murphy, Able Services; Manny Moreno, Next Play Consulting; and Mark Kelly, Able Services. Robert Dawes, Lance Graville, Sue Rinetti and Antonio Partida (all with ABM); Colleen Jones, Kimberly-Clark; and Gary Haslam, ABM. Bill Whitfield, Shorenstein; Erik Carlson, Able Services; Brooke Barnecut, Kilroy Realty; and Eric McConn, Able Services.


11 California Building Code Changes: What You Need to Know By Hafsa Burt, AIA, Chair, BOMA OEB Codes & Standards Committee BOMA OEB held a recent seminar to alert members to key code changes. The new California Building Code went into effect on January 1, 2017. Any building renovation or tenant improvement project will have to follow 2016 Codes, including CalGreen and Title 24 Part 6 Energy Code. Some other changes are below: 1) Smoke Control is now required in atriums in Group 1-2 occupancies. The same is also required for Group 1-1 Occupancies, Condition 2 (Residential Care Facilities serving more than 16 people). 2) Percentage of construction waste recycling has been increased to 65%, consistent with CalGreen. 3) Small food processing establishments and commercial kitchens, traditionally considered an F1 occupancy (moderate hazard occupancy) are now considered a B Occupancy (Business Group). 4) Some of the changes to Chapter 11 (accessibility requirements) of the building code have been made to bring the code into alignment with the 2010 Americans with Disability Act. a. Clarification has been added that doors to accessible toilet compartments are allowed to encroach over required turning space without limitation. b. Clarification has been added that accessible parking spaces should be outlined in blue or painted in blue.

c. ISA (International Symbol of Access) sign at passenger loading zones requirement has been removed. d. Clean air sign is no longer required. e. Employee work stations need to be designed for the work surface required for a specific task. f. Scoping requirements for electric vehicle charging stations has been added. 5) Infrastructure for electric vehicle charging stations are now required for new construction of R2 (more than 2 dwelling units) and R3 buildings (adult/child care facilities serving six or fewer people). This requirement is consistent with CalGreen. If you are doing a tenant improvement, there is no requirement to add electric vehicle charging spaces as part of the required upgrades to the path of travel. However, Exception 10 has been added, which limits the costs of path of travel upgrades to 20% of the adjusted construction cost when electric vehicle charging stations are added to facilities where vehicle fueling, recharging, etc. is a primary function. 6) Effective March 1, 2017, per AB1732, single-user restrooms must have non-gender signage. A unisex toilet is to be made available to all genders; this can be one single-user or family toilet room. To learn more, attend the Codes & Standards Committee meetings on the fourth Tuesday of the month or contact Chair Hafsa Burt at hburt@hbaarchitects.com.

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12 Thanks to CREATE Gala Sponsors! Signature Sponsor Hathaway Dinwiddie Legacy Sponsor Kilroy Realty Champion Sponsors

Able Services Allen Matkins Pacific Gas and Electric Company Paramount Group, Inc. Skyline Construction Inc.

Contributing Sponsors

Bently Reserve BCCI Builders The Empire Group/ The City Club Field Construction HansonBridgett Shorenstein

Supporting Sponsors

ABM Allbay Landscaping, Inc. Allied Universal Anderson, Rowe & Buckley Baker’s Floor & Surface Bayline Mechanical, Inc. Boston Properties Calfox, Inc. CBF Electric CBRE Clinton Reilly Holdings Coast Counties Property Management Columbia Property Trust Comcast Business Cushman & Wakefield HARBRO Emergency Services & Restoration Hines Hoem & Associates, Inc. HPA Hudson Pacific Properties Innovative Mechanical Inc. Jerry Thompson & Sons Painting, Inc. JLL LAZ Parking LBA Realty Charitable Foundation Fund McMillan Electric Metro Electric Montgomery Technologies Monticelli Painting & Decorating Next Play Consulting, LLC Nichols Booth Architects Perfection Services Prologis Recology Reuben, Junius & Rose LLP RiverRock Real Estate Group RMR Construction The Seligman Family Foundation Stockham Construction Swift Real Estate Partners The Swig Company Vanbarton Group VCB Acoustics, Inc. W. Bradley Electric, Inc.

Media Sponsor

San Francisco Business Times Graphics donated by BSM Facility Services Group

CREATE Awards Gala (Continued from front page) connection to your industry,” he noted, with financial assistance and transitions to real jobs. “It affects every person in the room.” Greg Cosko, President & CEO of Hathaway Dinwiddie, Signature Sponsor of the gala, said that his company is “proud to support efforts to develop a job-ready network and make an impact on the industry. Engaging students to enter the real estate industry is great work.” Hathaway Dinwiddie constructed some of San Francisco’s most iconic buildings, including the Transamerica Pyramid, the Bank of America Building, the San Francisco Jazz Center—and now the rapidly rising Salesforce Tower.

Shorenstein Company Honored for Its Pioneering Ventures Shorenstein Company was honored at the gala, and Cosko welcomed to the stage Glenn Shannon, Vice Chairman, Shorenstein. “Not just breaking ground, but breaking with convention,” is the guiding principle of Shorenstein, noted Shannon. Shorenstein is known in the industry for its pioneering ventures taken with measured and sometimes high risk. The firm sees CREATE as a way to create pathways between students and the industry. Shannon noted that founder Walter Shorenstein, who was discharged from the military with no college degree, had mentors like the Swigs and others who reached out to him. “We as a company have always valued finding people with perseverance and integrity. We can then train people with those attributes. We also hire for chutzpah,” Shannon said. He observed that we are in an old-economy business, noting that people are captivated by the new tech economy. Attracting talent is not just a problem for real estate, but for other traditional industries. Programs like CREATE will help develop talent to run our buildings. “Partnerships between industry and educational institutions are important. Shorenstein has hired people from the program. We need to support it... We are honored to be a part of the program. Now we need to scale it,” he concluded.

Scholarship Continues Hysinger’s Legacy A highlight of the evening was the presentation of the David G. Hysinger Exemplary Student Scholarship, given Hysinger Exemplary Student Scholarship awarded. by the BOMA SF Foundation to a student from the SF State program. The scholarship is named for the late David Hysinger, an instructor at SF State who was instrumental in the certificate (Continued next page)


13

at a Glance... CREATE connects students and prospective employees to local commercial real estate industry employers.

Formed as a solution to the challenges resulting from a retiring workforce coupled with increasing staffing demands driven by new development, CREATE ensures a smooth transition to the next generation of commercial real estate professionals and maintains a competitive edge for local firms. CREATE is an alliance of BOMA San Francisco, BOMA Oakland/East Bay, IREM San Francisco Bay Area, and NAIOP San Francisco Bay Area Chapter. CREATE collaborates with SF State. To date, more than 1,000 students have taken classes in San Francisco State University’s Commercial Real Estate (CRE) Certificate program underwritten by CREATE. (Continued from previous page)

program’s launch. The award was presented to Cameron Hunter Sardi by Rick Buziak, Kilroy, the event’s Legacy Sponsor; Tawni Sullivan, Chair of the BOMA San Francisco Foundation and Hysinger’s father, Vaughn Hysinger. “I know how energized and excited Dave was about the program and that he was able to develop CRE classes,” Hysinger said. “He would be humbled and proud to see how far the program has come.”

BOMA SF Foundation’s Vision Realized and Expanded Sullivan announced an important new development: “We’d be remiss if we didn’t think about what we need to do to expand the program.” She revealed a new CRE Fellows Program which will start in September at SF State. The program will reach 6,000 students in the business school who are interested in CRE. As early as sophomore year, students will be exposed to the CRE industry. “We want to create a buzz about CRE,” she added. “That’s how we’re going to fill the deficit. …Thank you to Sandra Boyle for her vision,” said Sullivan. “And thank you to our donors and partners!” Learn more about CREATE’s impact in the President’s Corner on page 2. Gala photos on page 15.

You can help...and you can benefit! The best way for employers to benefit from the CREATE program is to host an intern. Give one of our program enrollees the opportunity to get some practical experience while putting their training to work for you. Almost 100% of the students who have participated in our internship programs are full-time employees in CRE. Otherwise, make a tax-deductible donation to the BOMA San Francisco Foundation, tax ID is 80-0757877. Learn more at www.createworkforce.org


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Scenes from the 3rd Annual CREATE Gala

About BOMA Horizons BOMA HORIZONS is published by Eason Communications LLC for BOMA OEB.

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

From top right: Karen Cowan, Restoration Management Company, tries her key to the wine vault. Jason Storm; Ruby Petargue, Michelle Quan and Richard Chan, Shorenstein. Kim Davis, Allied Universal. Antonio Partida, ABM; Blake Peterson, Cushman & Wakefield; Liz Thomas, Allied Universal; Sue Rinetti, ABM; Gail Ringer, Kilroy Realty; and Whitney Jorgensen, Kilroy Realty. Gala crowd scene at the Bently Reserve.

Photo credit: Gustavo Hernandez


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