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BOMA Oakland/East Bay Members Get Glimpse of the Future Technology Said to Disrupt CRE, Requiring New Perspectives BOMA International Conference Recap

Commercial real estate has been “historically slow to adapt to technology, but technology is coming our way,” Mike Meyer, president of BOMA OEB, told his audience recently. The changes that are coming will mean that the role of a property manager “will change dramatically,” he predicted as part of his introduction to BOMA’s August luncheon entitled “Technology Disruption.” The “Technology Disruption” and “Internet of Things” are areas the BOMA OEB Board has been exploring as it embarks on strategic shaping for 2018 and beyond. Shelly Alcorn, the speaker for the day, facilitated 2 ½ days of strategic thinking with the Board since January. The BOMA OEB Board is working with the committee leadership on the

(Above: Line dancing at ABM booth at the Expo. See conference news on page 4.)

BOMA Member Profiles Get to know principal member, Cortney Shadel, Cushman & Wakefield, and associate member, Ryan Rusler, HARBRO Emergency Services & Restoration. (See pages 6 and 7.)

Members Network at Mixer and Luncheon

(See page 11.)

key areas and questions from these sessions that will affect the future of BOMA OEB and its members. The luncheon topic was planned to share the learnings with the membership. There are currently more than 2,000 new companies focusing technology products and services on how commercial buildings are designed and operated, Meyer said he learned at last summer’s BOMA International Conference & Expo. The event speaker, futurist Shelly Alcorn, acknowledging the enormous growth in the tech sector, opened her presentation by saying that the problem is not any lack of innovation, but the way the human brain is wired to accept and utilize it. People and companies will face exponentially massive tech-induced change throughout the economy, she said, causing enormous displacement of entire occupations. Whole categories of people, such as attorneys and accountants, will soon be replaced with technology. (Continued on page 9)

2 President’s Corner with Mike Meyer

BOMA Membership: A Valuable Asset in Your Budget Summer is coming to an end, and kids have returned to school. Fall is nearly upon us. As the shadows grow longer and the days become shorter, we adults also return from our summer vacations and head straight into budget season. While we prepare our budgets for the year ahead, now is the perfect time to reflect on the value of BOMA membership. With such a tremendous suite of benefits, BOMA membership can mean different things to different people. What do YOU see as the greatest benefit of BOMA? For me, the answer is simple: It’s the power of the BOMA network. Early in my career, I was given some good advice: “You’re only as good as your Rolodex.” The Rolodex may be obsolete, but the concept still applies. Participating in BOMA at the local level helps us forge new relationships and enhance existing ones with peers, service providers, potential clients, and community members. But remember, as a member of BOMA Oakland/East Bay you are also automatically a member of BOMA International, which expands your professional network across the globe. Having attended the BOMA International Conference and Expo in Nashville in June, along with Executive Director Julie Taylor and a large contingent of BOMA members from across the Bay Area, I was amazed by the depth and breadth of the International membership and the range of products and services that were showcased on the trade show floor. Nowhere else will you see such a vast array of people and resources that can help you solve your most challenging problems. But that’s just my opinion. Others might argue that BOMA’s Experience Exchange Report is the most valuable member benefit, because it allows for benchmarking of expenses against competitive properties and can help justify additional spending where needed. Or perhaps it’s the recognition for implementing industry best practices and achieving BOMA 360 designation, or the tremendously rewarding team-building experience of preparing a submittal for the industry’s highest recognition: The Outstanding Building of the Year (TOBY) award. Building owners might see the greatest benefit from the BOMA floor measurement standards, which have been updated this year to capture amenity areas that directly benefit occupants but have not been measured under prior standards, such as roof terraces and balconies. The BOMA Office Standard not only has the potential to yield additional revenue for owners, it also establishes the recognized “rules of the road,” minimizing risk for brokers, owners, and occupants. On the other hand, building owners might just see the greatest benefit from BOMA’s advocacy efforts, which are estimated to have saved $6 per

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Bishop Ranch CBRE, Inc. CIM Cushman & Wakefield Nearon Enterprises Next Play Consulting PJMB Commercial RiverRock Real Estate Group square foot for existing buildings by defeating proposals that require unnecessary retrofits to building systems. Whatever benefit you value the most, one thing is clear: BOMA is the industry’s premier source for education, networking, advocacy, and best practices—all of which help propel our professional success and provide a tremendous return for our clients. Meyer is President of BOMA OEB and Executive Managing Director, RiverRock Real Estate Group.


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Report from Nashville... BOMA International Conference By Julie Taylor, CAE, BOMA OEB Executive Director After a year as your Executive Director, I had the opportunity to attend the 2017 BOMA International Annual Conference in Nashville. I was so impressed with the depth and breadth of BOMA members and exhibitors. The international presence was a great surprise. I was aware that BOMA had a lot of presence in Canada, but other international participants came from far and wide—Russia, Japan, Europe and Australia. There was even a Russian TOBY nominee. I was honored to be with our BOMA OEB and SF nominees for the TOBY Awards banquet. While the Bay Area did not bring home a TOBY, I was proud of all our entrants and their buildings. We’ll get them in 2018! The community that surrounds BOMA OEB at the national and international levels is a wealth of opportunity for you to learn from, so I’d encourage you attend the BOMA International Conference and Expo in 2018 in San Antonio. If you can put it in your budget for next year, please do (more info on prices for 2018 on page 5). BOMA OEB was well represented with many of your Board & Committee Leaders attending. In true OEB, fashion we had some fun, too! I was exposed to the educational offerings and resources that BOMA International offers. There’s something for everyone, and I’ll be working with our Board and Committee Leaders to tap into them for our members. As your BOMA Association Executive (BAE), I attend sessions on association management and BOMA. This year the overall discussions centered on membership retention, marketing and leadership. From the membership side, we shared success stories and challenges. This is very informative, as there

are more than 95 BOMA Locals (that’s what they call us) that vary in size, type of membership and offerings to members. The peer-to-peer learning is critical, just like you find at our education offerings. The leadership session was right on point for us. The BOMA OEB Board started strategic shaping for 2018 and beyond in January of this year. Bob Nelson presented on “Transitioning Board to Strategic Thinking Entity.” Mike Meyer, your 2017 President, attended with me and we got some great tools to use at home as we work on the OEB strategic shaping. I was proud to see that many of the things Nelson recommended are things we’ve started in 2017, such as generative governance (having the Board be involved in the gathering and analysis of needs and issues from members), knowledge-based decision making and strategic thinking. One area that was discussed at length and an area that we’ve also discussed at the Board level is diversity of Board Members. By diversity, Nelson focused beyond race, gender, sexual orientation and religion. Instead, he recommended a diversity of experiences that could include some of the following; the job title, expertise in sub-areas (finance, marketing, engineering and operations), openness to new ideas and desire to advance the industry. He recommended all associations start looking for those diverse viewpoints as we prepare for the future. The Board will be sharing the work on strategy throughout the fall and into 2018. It’s your association, so I’d urge you to be sure to give feedback on the ideas. Having diverse viewpoints will give us the greatest success.

Shown above are BOMA OEB attendees at the conference: Mike Meyer, RiverRock Real Estate Group and BOMA OEB President; Liz Despins, CBRE; Marc Barkdull, PJMB Commercial, Inc.; Julie Taylor, BOMA OEB Executive Director; Willard Lund, Sierra Pacific Properties, Inc.; Don Rogers, CIM Group; and Manny Moreno, Next Play Consulting.


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Budget for BOMA International 2018

Conference Schedule & Fees Winter Business Meeting & National Issues Conference January 28-31, 2018, Washington, D.C. www.boma.org/wbm • $625 Registration Fee • Hotel is $299/night + 14.5% taxes Medical Office Buildings & Healthcare Real Estate Conference May 9-11, 2018, Houston, TX www.mob.boma.org • $795 Registration Fee • Hotel is $239/night + 17% taxes BOMA International Annual Conference & Expo June 23-26, 2018, San Antonio, TX www.bomaconvention.org • $695 Member Registration Fee • $795 Non-Member Registration Fee • $155 TOBY Ticket • Hotel is $255/night + 17% taxes

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Members Share Conference Reflections “There were two main topics that resonated with me from the conference: (1) the impact technology advancements have on the future of commercial real estate and (2) BOMA International’s commitment to diversity. These topics were discussed at our recent BOMA OEB board of directors’ retreat, and it is encouraging that BOMA International and BOMA OEB are in lock-step. Finally, on a more personal note, I am happy to report that at our Pacific Southwest Region Board of Directors’ meeting and breakfast, I was elected President of the region. My term will begin in January 2018 at the Winter Business Meeting. I will serve a twoyear term. I look forward to strengthening our region and moving our industry and initiatives forward.”

— Manny Moreno, Next Play Consulting “Nashville, my kind of town…Besides the fun honky-tonk clubs, great music, outstanding barbecue and oh those fabulous fried pickles, the annual BOMA International Conference & Expo in Nashville served up some great educational sessions. The opening keynote featuring Captains Mark and Scott Kelly set the tone of the conference with an out-of-this-world peek into their leadership and teamwork in space. With Nashville now in the rearview mirror, looking forward to seeing everyone in San Antonino, Texas next year, y’all.”

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Principal Profile

Cortney Shadel, Senior Property Manager Cushman & Wakefield

Cortney Shadel recently assumed a new role as Senior Property Manager at Cushman & Wakefield, where she will be managing three properties — two in San Mateo and one in Palo Alto. “I’ll be responsible for the management, daily operations, financial reporting, lease administration, and vendor relationships for the portfolio — and look forward to working on the Peninsula closer to home,” Shadel says. If you’ve attended the BOMA Bay Area Annual Awards Gala, you’ve also seen some of her accomplishments. She has been a key player on the BOMA Bay Area TOBY Awards program team, serving on the Awards Committee since its inception in 2014. “I’ve worked closely with founder and former chair, Karen Cowan, to increase awareness and participation among the BOMA Oakland/East Bay and BOMA San Francisco membership. This year we are shaking things up by updating the judging format, providing more Cortney Shadel enjoys family time. one-on-one attention for our local entrants, and tweaking the Awards Gala,” Shadel adds. “We are also working to promote the BOMA 360 Performance Program as a great tool to aid in TOBY success.” When Shadel is not working or participating in BOMA, she enjoys spending time with her husband, three year-old daughter, and one year-old son: “I try to spend as much time with my kids as possible. And I try to balance my work, wife, and mom time, with wine-tasting whenever possible!” She adds: “BOMA Oakland/East Bay has been such a welcoming community, enriching my life, both professionally and personally. I wish that more BOMA members would take advantage of all that being an active member has to offer. The benefits far outweigh the effort put forth.”

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Associate Profile

Ryan Rusler, Vice President of Business Development HARBRO Emergency Services & Restoration

“I love to walk new disasters with clients,” says HARBRO Vice President of Business Development Ryan Rusler. “They put the faith in our team to respond, and it is very fulfilling to show up (no matter the hour) and shake their hand and tell them that everything will be okay.” His guiding principle: “Asking the right questions to resolve client situations can develop more trust and genuine confidence.” After nearly 60 years of success, HARBRO recently went through a rebranding. Rusler explains that “the colors in our logo are our story: from black to blue, from shadow to light. From your darkest hour to restored.” Rusler and his wife, Courtney, For its customers in BOMA and other property professionals, HARBRO’s mission is hiking Half Dome in Yosemite. “to provide victims of disaster with immediate restoration services with the utmost integrity, dedication to quality, and outstanding customer service.” Rusler notes that the restoration industry has been highly commoditized in the Bay Area. “We have been able to distinguish ourselves through hiring and retaining employees who take pride in their work at every level of the organization.” At BOMA OEB, Rusler serves as vice chair of the Emergency Preparedness Committee and will chair the committee in 2018. He says of his committee work: “One of the many highlights was the well-attended social event that we just hosted. The event engaged our BOMA members and introduced them to local and state public sector partners who can help with communication and connections before, during and after any emergency.” His advice for other BOMA members on building their networks in BOMA: “Be authentic and patient when building a relationship.” During his downtime, Rusler enjoys traveling and cooking, as well as hiking with his wife and dog. He recently hit the trails while vacationing in Zion National Park in Utah.


9 Technology (Continued from front page) She quoted a McKinsey & Company study that says 50% of the world’s workplace will be affected in some way by changes in the coming years. “What will we do with all these office buildings with no one working in them?” she asked, exaggerating to make her point that many fewer jobs done now will be needed throughout the economy, affecting workplace configurations. “Every service you offer is on a declining curve,” she said. On the plus side, the futurist observed that new tech always brings new jobs, like tech support. Many of the new technologies that will disrupt current business practices arise from the application of artificial intelligence technology to everyday tasks. We are already seeing this with robots in buildings’ lobbies and parking lots that produce information and surveil perimeters. Alcorn said there have been impressive technology breakthroughs in memory, attention, concepts, planning, navigation and even imagination that will transform the way we work, using machines. These developments are outrunning our expectations, she said, noting that “Google’s AI is creating its own AI, because programmers cannot do a good enough job.” IBM Watson, she noted, is getting better at medical diagnosis than physicians.

Major New Technology Impacts on CRE In an interview following her BOMA presentation, Alcorn listed the following future tech trends that building operators can anticipate: n “The biggest impacts will have to do with ‘how work is done’ and what resources tenants will be expecting. It will focus much less on “furniture” and much more on technological capability within the building itself. n Working environments will be much more sterile and interchangeable. n Artificial intelligence agents will become an integral part of your customer service strategies. They will be able to handle customer inquiries, requests, billing, etc. n 3-D printed buildings that are environmentally sound. Coming impacts of climate change mean people should re-evaluate where their real estate is, and whether or not they are implementing solar/wind, urban gardening resources within the buildings, etc. Office spaces will need to change to accommodate concerns of incoming genera tions who believe space should be relationship based. n Last but not least, ‘blockchain’ will be revolutionizing contracts, payments and the entire system of commercial real estate finance. It has the potential to impact every single aspect of finance including sales, contracts, payments, escrow, title, etc. China just recently announced they are prototyping blockchain to collect taxes, etc., and that is a

huge sea change that can’t help but accelerate adoption around the world.” BOMA OEB will be continuing its work on how technology will change our workforce and buildings. They’ll be asking their members more about how they see it will impact themselves, their organizations and their community. If you’d like more information, please contact Julie Taylor, CAE, Executive Director, at julie@bomaoeb.org.

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BOMA Members Network at Recent Events At the August Membership Luncheon

Chat ‘Em Up Mixer for the Emergency Preparedness Committee

From the top: Paul Hess, Alameda County Sheriff’s Office. Ryan Gaughan, RiverRock Real Estate Group, Manny Moreno, Next Play Consulting; and Leigh Renard, Cushman & Wakefield. Mike Meyer, RiverRock Real Estate Group, addresses the crowd.

About BOMA Horizons From the top: Lynn Linhares, CBRE; Cortney Shadel, Cushman & Wakefield; Scott Kirkpatrick, Cushman & Wakefield; and Anne Hinz, RiverRock Real Estate Group. Guest speaker Shelly Alcorn, Alcorn Associates; and Mike Meyer, RiverRock Real Estate Group. Linda Miller, interior motions; Ruth Bennett, CBRE; Liz Marigold, CBRE; and Caroline Grafft; RiverRock Real Estate Group. Photo credit: Kent Goetz

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Profile for BOMA Oakland/East Bay

Horizonsq3 2017  

News from BOMA Oakland/East Bay about commercial real estate and association activities

Horizonsq3 2017  

News from BOMA Oakland/East Bay about commercial real estate and association activities

Profile for bomaoeb