BOMA OEB Audience Applauds Assemblywoman Baker Committees Showcase Their Activities

Prior to the September luncheon, committees participated in a tabletop trade show to recruit volunteers. (See page 11 for more photos.)

BOMA Member Profiles Get to know principal member, Jenna Hattersley, Harvest Properties, and associate member, Jim Poyer, Legacy Mechanical & Energy Services, Inc. (See pages 6 and 7).

Members Network at Events & Luncheons

(See pages 10 and 11.)

Bipartisan Lawmaker Expressed Concerns About a “Split-Roll” Tax California Assemblywoman Catharine Baker earned an appreciative reaction from the luncheon attendees of the Building Owners and Managers Association of Oakland/East Bay in November when she said that proposals to impose a “split-roll” tax on commercial real estate could have damaging consequences, especially to small property owners. Baker, a Republican who represents the sprawling and mostly affluent Walnut Creekto-Livermore 16th District, also expressed Baker addresses BOMA OEB. pride in her rating as the most bipartisan member of the California legislature and cited many instances when she has worked with both parties to achieve goals that support economic development. “We will see more debates on finances and taxation next year,” Baker predicted. She said some members of the legislature “say commercial real estate is not paying (Continued on page 9)

After the Boom... Panel Explores Post-Earthquake Issues for CRE By Alexandra Leever, Chair, BOMA OEB Emergency Preparedness Committee

At the BOMA OEB October membership luncheon, Dale Cox, Project Manager for USGS Science Application for Risk Reduction, walked listeners through the very real logistics of a hypothetical every Californian fears: a magnitude 7.05 earthquake hits the San Francisco Bay Area. With an epicenter in Oakland, the earthquake travels 52 miles along the fault at speeds of 7,000 miles per hour. The ground shifts three to five feet in (Continued on page 10)

2 President’s Corner with Mike Meyer

Propelling BOMA OEB Into the Future How quickly a year goes by! It feels like just yesterday that I accepted the honor of serving as your president, and here I am drafting my final column and passing the baton to your president-elect, Warren Mead. Entering the year, I had three main goals for BOMA Oakland/East Bay: first, create a strategic plan that boldly propels us into the future and delivers on all of our members’ needs; second, revitalize our Bid BOMA program; and finally and most importantly, further enhance the culture of volunteerism, collaboration, and cooperation that my predecessors so brilliantly created. With the tireless efforts of our volunteer leaders, partners, and committees, I am pleased to report that we have made significant progress in all three areas. The 2018–2020 Strategic Shaping Work Plan, which is flexible and nimble, has been adopted by the board of directors and plots the course for the next three years. Through the leadership of the board, we have created an environment where BOMA can be more immediately responsive to the rapidly changing needs of the industry and our members. I want to extend a hearty thank you to the board of directors, who worked tirelessly on the Strategic Shaping Work Plan. But the work has only just begun— we have several years’ worth of efforts ahead to implement the plan, and I am looking forward to the challenges ahead. In 2016, the Bid BOMA Task Force convened with a goal of fostering a mindset among the membership that encouraged principal members to bid their work to associate members and facilitated meaningful dialogue between the two groups. In January of this year, the task force delivered a comprehensive set of recommendations to the board, ranging from marketing ideas to a refreshed trade show concept. Many of the task force’s recommendations have already been implemented. One of the fruits of the task force’s efforts was our first-ever Bid BOMA–themed luncheon. The roundtable discussion format was wildly successful and set the stage for additional Bid BOMA offerings to be delivered in the future. Thank you to all who participated actively in this effort! In recent years, you may have noticed an increased emphasis on collaboration among committees and members. This shift is intended to better leverage all of our volunteer efforts and allow each of us to benefit from each other’s hard work. The concept is simple: Work together to achieve more with less effort. This is a theme that will continue to take shape in the year ahead, and I am proud to have had the opportunity to work with our committee leaders this year to further define our collaborative approach. Serving as your president has been a highlight of my career. In this role I have learned so much about our business and the fascinating people who drive innovation. I had the opportunity to meet with leaders

Thanks to Our 2017 Partners Platinum Partners

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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 from across the country, elected officials, peers, and service providers —none of whom I would have met without the power of the BOMA network. Without a doubt, the most rewarding part of the year was working with all of our members and leaders here at BOMA OEB. I am forever grateful for the opportunity. Onward! Meyer is President of BOMA OEB and Executive Managing Director, RiverRock Real Estate Group.

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BOMA OEB Events in the New Year January 11 – Luncheon February 15 – BOMA Bay Area Annual Awards Gala March 8 – Luncheon

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ReportFuture from Nashville... Bright for Your BOMA in 2018 By Julie Taylor, CAE, BOMA OEB Executive Director BOMA International Conference The year has flown by, 2018 is upon us and we’re ready. In the past year, we’ve tried a lot of new things, including; making our luncheons interactive and more engaging, pushing our brains to learn about the future disruptions coming our way and partnering among our committees to provide you with the best education and events possible. As I mentioned, 2018 is almost here and we’ve been planning a great year for you. Your Board has been actively working on BOMA Oakland/East Bay’s strategic goals for the future. The four key areas are: • Governance & Finance — how we operate • Education & Careers — how we educate our members • Stakeholder Engagement — how we ensure we’re meeting our members’ needs • Marketing & Communications — how we communicate and share information Each of these four areas has a workgroup of Board Members and members, and they have developed plans for 2018. Marketing and Communications has developed a new website. Be sure to attend the January luncheon for the debut! Governance has been working with committees to facilitate partnering. Education is working with committees to ensure our members’ needs are being met. Engagement is connecting and facilitating discussions with members about 2018 and beyond. In October I participated in the BOMA BAE Conference in Washington, DC. It was a great two days connecting and learning from my peers. BOMA International staff

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shared a competitive analysis that they had done comparing industry associations and the benefits of membership in BOMA, IREM, NAIOP, CREW and IFMA. This is something that the Board will be evaluating for BOMA OEB. We had a great presentation from Sarah Sladek, author of “The End of Membership as We Know it.” Sarah gave us some great perspective on the changing workforce and the emergence of Millennials into leadership positions and how associations like ours can thrive in the new workforce. As with any BOMA event, the connections with peers was excellent. Though we may be thousands of miles away from BOMA International and our fellow locals, we all are experiencing similar things. Be sure to connect with your BOMA OEB colleagues. They have a wealth of knowledge and experiences that you can’t find anywhere else. Have a wonderful holiday season. I look forward to seeing you all at the Holiday Party on December 14 at the Rotunda in downtown Oakland!

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CREATE Programs Combine Coursework and Real-World Experiences As new buildings rise on the Bay Area skyline, students A cornerstone of the CREATE programs is the real-world at SF State are preparing for careers in commercial buildings, lessons that students gain beyond the classroom through thanks to the CREATE (Commercial Real Estate Alliance internships, building tours and other activities. Instructor for Tomorrow’s Employees) Nancy Gille recently CRE Certificate Program that arranged a behind-thewas launched in 2012 — and scenes tour for students. a new program launched this (Thanks to Tishman Speyer fall. Building on the success for hosting!) of the wait-listed certificate Groups supporting program, the new Commercial CREATE’s mission include Real Estate Fellows Program is BOMA Oakland/East Bay, open to all 6,000 students in BOMA San Francisco, the College of Business. NAIOP San Francisco Bay In the Fellows program, Area Chapter and IREM. seasoned CRE professionals, To learn more, or to volSF State commercial real estate students tour 333 Bush Street. many of whom are BOMA unteer your time or funding members, teach segments on in support of both the CRE Fellows Program and the CRE communications, property management, leasing and marketCertificate Program, contact Marc Intermaggio (mli@boma. ing, problem-solving and teamwork, asset management and com) or visit www.createworkforce.org. construction management.

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Principal Profile

Jenna Hattersley, Associate Operations Director Harvest Properties

In her role at Harvest Properties, Associate Operations Director Jenna Hattersley is responsible for the overall operations and financial performance of a 3.5 million square foot office and industrial portfolio in the East Bay. “I oversee several property managers and work with them to ensure that we are meeting our client reporting requirements and maintaining the buildings at a Class A level,” says Hattersley. “I also manage tenant improvements and capital projects at each of the properties.” An exciting project in the portfolio was the repositioning of the Leamington Building on Franklin Street in Oakland, an 89-year-old former hotel that had not been renovated since 1982. “The building image has been upgraded in such a way that it has become a downtown Oakland destination and an attractive option for creative office tenants,” remarks Hattersley. The project includes a redesigned lobby with collaboration areas, new retail access, new restrooms and shower facilities, secure bike storage, an updated exterior with new storefronts, a seismic retrofit, and an elevator modernization with updated elevator finishes. The lobby Hattersley and her husband enjoy was transformed into an interactive space that is used as collaboration space by both building wine tasting in Paso Robles. tenants and patrons from Modern Coffee. Hattersley has served as chair of the BOMA OEB Environmental Committee for several years and next year will be on the BOMA OEB Board of Directors. “Prior to being involved with BOMA OEB, I was a member of BOMA San Francisco and chaired the Energy & Environment Committee,” she says. “Through BOMA I have made a lot of friends, developed a great professional network, and gained a great deal of knowledge about commercial real estate. BOMA has played a huge role in advancing my leadership skills and developing relationships with vendors and other property managers that have enabled me to be a successful property manager.” When the weekend rolls around, Hattersley likes to head outdoors. “I enjoy working in our yard, hiking with my husband and black lab and spending time at our family lake house in Paso Robles. I also enjoy food and wine, trying new restaurants in Oakland and San Francisco and wine tasting at the many wineries in Paso Robles.”

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7 Commercial Buildings Can Boost Performance with BOMA 360 More than 65,000 commercial buildings in the U.S. have been LEED certified by the U.S. Green Building Council to become more sustainable and energy efficient, and yet only 1,700 buildings worldwide have earned the Building Owners and Managers Association’s BOMA 360 seal. BOMA 360 Director Joel Corley (shown at left) told a BOMA Oakland/East Bay audience recently that this program complements LEED and ENERGY STAR certifications, but goes far beyond sustainability practices to better educate building managers in operational efficiency and improved tenant relations. Just 10 East Bay facilities are 360-certified, 15 in San Francisco, 15 in Silicon Valley and 25 in Los Angeles. Greater adoption of BOMA 360 could significantly increase California buildings’ performance in many operational categories. “BOMA 360 takes a more holistic view,” said Corley. It includes operational efficiency features but makes major strides toward every other aspect of commercial building operation, such as training managers to better serve their tenants, handle disasters and achieve better business management practices. A recent Kingsley Analysis shows that buildings with the BOMA 360 designation average $7.51 more revenue per square foot than non-designated facilities, and $6.25 more per square feet in net operating income than non-360 buildings. And, if LEED certified buildings added BOMA 360, they would up their rental income by $3.85 per square foot. BOMA 360 buildings also achieved higher rating in tenant satisfaction than facilities without that designation. BOMA 360 can also be implemented without needing costly consultant fees to go through a certification process. The registration procedure can be done online and for a smaller fee than other groups charge for various certifications. For instance, buildings of 600,000 square feet or more pay only $1,800 and ones of 100,000 square feet or smaller pay only $900. And a new feature of the program even allows for building service providers to attain a BOMA 360 credential to improve their performance.

Associate Profile

Jim Poyer, Director of Maintenance Services Legacy Mechanical & Energy Services, Inc.

As director of maintenance services for Legacy Mechanical & Energy Services, Jim Poyer helps grow the company’s base of scheduled HVAC service agreement customers. “Our first touch with a new client is not always based on the need for a planned service agreement. It is my job to understand and recognize the needs of the customer, make sure that they are assigned to the proper departmental team at Legacy and expedite their request,” says Poyer. “I get excited when our team collectively solves an urgent need for a customer. Our field technicians are ‘rock stars,’ and many of them are close friends with property managers and owners. If a property manager moves to a new company, it is very common for us to be called in to assist them at the new assignment. This is based on past performance and complete trust of our team.” Legacy offers DBMO (Design, Build, Maintain & Optimize). “Our solutions are custom designed. Not all customers have the same goals, and we need to keenly listen to their needs. A ‘short-hold’ building owner may Poyer on a jobsite. be interested only in putting some ‘lipstick’ on the HVAC — while a ‘long-hold’ owner looks to improve system performance and maximize energy efficiency,” Poyer explains. Advanced technology is a huge driver of energy efficiency in HVAC. Legacy is working with a major high-tech start-up in testing and developing a cutting-edge motor modification that has already proven to reduce energy consumption by more than 35%. The company also offers energy-control window film installation, which has a direct correlation to building solar load and how much HVAC cooling capacity is required to overcome that load. By knocking down the solar heat load with window film, ultimately less mechanical capacity is needed, and energy savings are realized immediately. Poyer is a member of the BOMA OEB Environment Committee and finds it to be an exciting group of professionals. “Legacy looks at our involvement with BOMA OEB as a resource. We feel that it is the primary organization for principal members, and we’re happy to offer our support as Silver Level Partners and as sponsors of events throughout the year.” On the weekends, Poyer and his wife, Peggy, like to venture out to estates sales around the East Bay and dig for hidden treasures. “You never know what you will find! It can be a fun experience looking for unique items and playing the negotiating game. We’ve found a few furniture pieces over the years, but now have scaled it down to looking for ‘smalls’ as the pickers call it, since we don’t want to end up on the TV show, Hoarders!”

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9 Assemblywoman Baker (Continued from front page) its fair share” and will attempt to increase property taxes. “If Proposition 13 protections are removed,” she warned, “it will affect business’ ability to hire and expand.” “The Proposition 13 debate will come up because of an appetite for dollars and (government) pensions costs that are severe,” she said, observing that California faces an underfunded liability in government employee pensions funds that could well exceed “a half trillion dollars.” She added that there is “no appetite” in the legislature to enact pension reforms that would address the looming retirement deficits and predicted that a remedy is likelier to be addressed in a ballot initiative. Baker urged more bipartisanship in the legislature to achieve better policy and reduce partisan rancor. She also noted in her wide-ranging address that a number of bills were passed in the last session intended to address the state’s severe housing shortage, but added that she does not see major new legislation in this area in 2018. She expressed frustration that over-regulation in the environment laws “makes everything we do cost more,” but did not predict major changes in the California Environmental Quality Act. CEQA is seen by many as a means to stall real estate development indefinitely by allowing frivolous complaints to prevail. Baker predicted more debates in the legislature on health insurance, but noted that calls for California to provide free

healthcare for all carries a staggering $400 billion price tag. That amount is more than twice the approximately $183 billion the state will spend to cover the entire budget in the coming year. No fan of the state’s over-budget High Speed Rail project, the transportation committee member said public money would be better spent solving area transportation problems, such as those faced by East Bay residents. Baker says she “would re-direct High Speed Rail funds to better transportation investments in roads and transit and to water infrastructure. I authored legislation to connect BART to ACE (Altamont Corridor Express) to remove 30,000 cars from I-580 every day. I also continue to support enhanced BART parking and commuter options, streamlining burdensome regulatory review of transportation projects, and reforming Caltrans so money goes to transportation, not bureaucracy.” Baker has represented California’s 16th Assembly District since 2014. Before joining the Assembly, she worked as an attorney, advising small businesses, individuals, and non-profits. Catharine earned her bachelor’s degree from the University of Chicago and a law degree from UC Berkeley. Catharine is married to her college sweetheart Dan. The two live in Dublin with their two children.

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10 Scenes from the October Luncheon

Above: Tanya Williams, Kaiser Permantente; and James Spence and Jane Fordham, aia Design. Right: Joseph Dudley, CIM Group – Jack London Square; and Rebecca Clevenger, First Security Services.

Above: Celine Scott, Jensen Landscaping; Linda Miller, interior motions; Alex Efros, U.S. National Guard; Karen Cowen, Restoration Management Company; and Jim Lampkin, Iron Construction. Photo credit: Kent Goetz

After the Boom (Continued from front page) nearby cities, Berkeley and Hayward, ripping through buried utilities and underground wires. Violent shaking lasts for more than thirty seconds. Hazards are everywhere—from personal injuries to landslides to fires. Who is hurt? What damage is done? What is the potential for more loss? During a panel discussion titled “After the Boom,” Dale Cox set the scene and talked about the project, HayWired. The study underway by the United States Geological Survey weighs the above scenario’s impact on our community. An earthquake of this magnitude along the Hayward Fault in today’s urban, connected world will mean recovery for months, maybe years. And it’s coming. With homes and jobs in the Bay Area, most of us are aware of the real risk of a significant earthquake in our backyard. We may have gone so far as to hold preparedness tabletops with our teams in the office or compile our emergency kits for our home, workplace and car. While this is an important step, what we also need to consider aligns with the goal of this project. As commercial property owners, managers, and service providers, what challenges will we face in the immediate hours following such an event? What resources will we share? What efforts can we make now to minimize risk? Stepping in were the speakers, experts in their field. Derek Krause, deputy chief of emergency medical and logistics from the San Ramon Valley Fire Protection District, talked about his first 24 hours. Priorities are communicating with partners, minimizing loss of life, identifying areas that need emergency services, and surveying our neighborhoods. Lower priorities are personal injuries, such as broken bones, and our first responders urge the public to educate themselves on temporary treatment until medical services are available.

In an event this serious, city and emergency services will be exhausted. The general rule of thumb is to be able to take care of yourself and neighbors for 72 hours before help arrives. Len Horewitz, president of Western Machinery Electric, discussed the complexities of commercial electrical distribution and the potential for a loss of power for days, longer than most people imagine. Evaluating back-up power generation and alternatives can make the difference between getting your business back up and running, or permanent consequences. With over 26 years in property management and engineering, Chief Engineer John Eckmann, speaks from his experience on multiple projects, including one which was recently subject to smoke and heat damage from a neighboring fire. He expressed concerns about elevator entrapments and loss of utilities and urges building managers to nurture relationships with vendors. Everyone will need help and resources will be limited. Making sure you have the contract and relationship in place before the disaster means a successful, quicker response in the aftermath. Assessing vulnerabilities in an earthquake of this magnitude is a big job, especially with large aftershocks expected, requiring repeated repair and restoration in the months following. The good news is the risk in our region has reduced as a direct result of tens of billions of dollars in infrastructure investment, motivated by both historical events and scientific findings. The sharing of information will only improve our response. On April 28, 2018, the anniversary of the Great Earthquake of 1906, the HayWired results will be released to the public. For more information, visit haywired.us. Let’s do our part.

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BOMA Members Gain Industry Knowledge and Build Their Networks at Luncheon Programs Committees Shared Information at September Tabletop Trade Show

Above: members learn about committee volunteer opportunities. Left: Caroline Grafft, RiverRock Real Estate Group; and Jeannie Nyberg, American Asphalt. Below: Emergency Preparedness Committee members: Leigh Renard, Cushman &Wakefield; Alex Leever, Harvest Properties; Kelly Jauregui, Cushman & Wakefield; and Ryan Rusler, HARBRO Emergency Services & Restoration.

November Luncheon at The Lake Chalet From the top: Liz Thomas, Allied Universal; David Henry, ABM; Samantha Stires, CBRE; and Noelle Blanchard, BOMA OEB. Warren Mead, Cushman & Wakefield and incoming BOMA OEB president; and Mike Meyer, RiverRock Real Estate Group and outgoing BOMA OEB president.

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

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