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Bay Area

BUILDINGS NEWS March/April 2014

How Green is Your Building? ...and How Green Does It Need to Be?

BOMA’s New Innovative EARTH Award Winners

Flooring Trends: Greener, More Stylish

Tech Enhances Your Hotel Experience

Bay Area

BUILDINGS NEWS

Features

7

Major Contractor Says Cost to Build Green Can Be Recouped

We Are Not Yet Green It may be argued that San Francisco’s commercial buildings are the most sustainably built and operated in the country, but that certainly doesn’t mean that The City has achieved optimal green goals. All you have to do is walk down streets in San Francisco, Oakland, San Jose or any city in the Bay Area to notice that the majority of buildings do not proudly display LEED or BOMA 360 plaques.

In spite of federal, state and local governments’ sustainability leadership — as well as that of all buildings major industry associations — we still have a tremendous amount of work to do to reduce buildings’ energy and waste. Check out some of the statistics in this issue’s cover story “How Green Is Your Building?” The answer is, in most cases, not very green.

Many seem weary of sustainability campaigns and unwilling to invest in future savings. One top industry executive told me recently, “I’m really tired of green.” It’s understandable, since it seems like every company advertises that its products and services are somehow “green.” And yet we cannot reduce our efforts to achieve a more sustainable world. We must applaud the continuing efforts of such programs as the Bay Area Building Owners and Managers Associations’ “Innovative EARTH Awards” and other groups’ initiatives.

We’ve got more than a century of Earth-unfriendly behavior to correct. Let’s just hope it doesn’t take that long to make amends.

How Green is Your Building?

10

Greener Parking Garages Can Slash Energy Costs

Bay Area Buildings Recognized for Innovations

15

12

How Building Managers Can Plan for Title 24

Being Green Advocates Enhances Managers’ Careers

19

8

17

Antiterrorism Engineer Says No Region is Safe, But All Areas Can Be Safer

Hotels Chase Tech to Pursue Better Guest Experiences

21

Green…Sustainable…What’s Next?

Anyone who was made to read Chaucer’s Canterbury Tales has a pretty good idea of how language constantly evolves. Often the same thing goes through many naming fads. When I first started covering such topics as a Washington newspaper correspondent back in the 1970s, the word “ecology” was much in vogue as a word to rally folks against pollution. But ecology was way too broad, so we narrowed it down to “environment,” but after a while that became too encompassing and could mean bad environment as well as good. Then we got more poetic and began referring to activities that would result in a less polluted world as “green.” A few years ago we got more philosophical—perhaps even sociological— and started using the word “sustainability,” in spite of its vague and multi-syllabic tone. Later “clean” emerged in our lexicon. That made sense too—short, sweet, opposite of dirty. “Earth” is often used in various ways, usually as an adjective.

The use of any of these words gets traction, of course, but there are semantic problems with all of them if you debate them over a few beers, and some folks get passionate in their advocacy of one or the other. To me, a nature lover who bemoans the passage of a more pastoral era and the rise of a brown industrial age, I like the enduring word “green.” It’s good enough for the U.S. Green Building Council, and it’s also my favorite color. But I’m open to next year’s word, whatever that may be.

— Henry Eason, Editor

Bay Area Buildings News Team Henry Eason, Editor henry@easoncom.com Ellen Eason, Associate Publisher & Art Director ellen@easoncom.com Editorial Board Zachary Brown, CBRE Bob Eaton, Eaton Hospitality Investments Nancy Gille, REAL Systems David Hysinger, San Francisco State University College of Business Rich Lerner, Construction Consultant Katherine A. Mattes, Real Estate Consultant Carlos Santamaria, Glenborough LLC

Advertising Information Ellen Eason, ellen@easoncom.com 415.596.9466 © Copyright 2014 Eason Communications LLC 425 Market Street, Suite 2200 San Francisco, CA 94105 • 415.242.5244

www.baybuildingsnews.com Members of: BOMA, IFMA, IREM, SMPS, SPUR.

Flooring Trends: Greener, Sturdier and More Stylish The increasingly bike-to-work ethos of downtown San Francisco is great for the environment and accommodates the lifestyle of the city’s droves of new tech workers, but black rubber tires can be rough on floors. Knowing that, the renovation team at 799 Market Street decided on polished concrete flooring in the remodeled office lobby, but they also wanted flooring that was attractive and in sync with the industrial chic that appeals to young techies. So Baker’s Floor Care and GCI General Contractors chose Ardex PC-T topping to implement architect Gensler’s design vision. (Continued on page 4) Background photo: floor in 799 Market Street lobby using Ardex PC-T topping.

(Photo credit: Alyssa Tomfohrde.)

4 Bay Area Buildings News • March/April 2014

Flooring

(Continued from page 3)

“This durable (Ardex) flooring finish is a smart choice for the tenants who often ride their bicycles to work. The lobby also includes a gallery-like bike wall installation which represents these tenants well. When an existing concrete flooring or structure cannot be finished as desired due to issues such as the floor leveling, flatness, or composition, the addition of a topping surface is another great option and it can provide a more consistent finish. This lobby and its flooring represent the popular design aesthetic of expressing raw materials being used and contrasting them against other more modern finishes,” says GCI Project Manager Kyle Larson.

“Ardex PC-T produces a very high-end decorative, industrial look, and the maintenance cost is much lower,” says Chris Baker, whose floor care company installed the product.

Sustainability is also a major theme in flooring product news, particularly with the introduction by Mats Inc. to North America this year of a new class of products made according to a German-invented formula called PURLINE under the wineo® umbrella brand of flooring — comprised almost entirely of organic materials.

Using a combination of natural ingredients and science, inventor Matthias Windmöller did not start with a base flooring product and then adjust or replace ingredients. He went back to the drawing board to test plants, formulations and processes. With advanced technology and precision engineering, Windmöller produced a new class of flooring with nearly 90% renewable and natural raw materials, after more than six years of research and development.

Made from of rapaseed, castor oil and the natural filler material chalk, PURLINE is extremely durable with a molecular surface structure that is tenaciously stain- and wear-resistant and therefore easy to clean and maintain. Its simple maintenance requirements do not involve finishing, waxing, buffing or stripping and allow for time and cost savings in even the most demanding healthcare environments and public buildings. And it’s said to be easy to install and requires much less water and care products.

The PURLINE commercial flooring collection features a broad range of dramatic color and a wide variety of neutral tones and patterns that are ideal for mixing and matching to define spaces or create unique effects within high-traffic environments.

Fred West of Marble West says that, in spite of material innovations, natural stone continues to be popular.

“To this day Terrazzo enjoys a wide variety of uses not only because of its infinite variety of patterns and colors, but its durability makes it a popular choice for public spaces like airports, convention centers,” says West. “It is even being utilized as an art form in the San Francisco Transbay

PURLINE Timber Missouri Oak flooring. (Photo courtesy of Mats Inc.)

Terminal currently under construction in which a number of artists have designed artwork that will be part of the floor construction.”

West adds, “Present day usage of natural stone is still prominent in commercial construction. Marble, granite, travertine, limestone, slate and sandstone are available and used in a much greater variety of colors, patterns and finishes than before.”

While tradition and breakthroughs abound in hard surface flooring, McNevin Cleaning Specialists Vice Presidents Nate Osgood and Bill Nicolay say other innovations with great impact are in carpeting. Specifically, they say carpet tiles made of recycled materials are becoming very common.

“And luxury tile with custom designs and colors that look great and are sustainable,” are popular, says Nicolay.

Carpet modules or tiles dominate in new flooring projects, says Tom Jennings, vice president of the World Floor Covering Association — for many reasons — much more than the older broadloom carpeting methods. Many carpet tiles are recyclable, easily replaced, installed without much difficulty and can be used in a myriad of designs, says Jennings.

“If you have a serious accident, you can restock stained ones with a minimum of downtime.”

“Carpet tile continues to be popular in commercial design with its increased functionality and ease-of-maintenance benefits,” says Milliken’s Stacy Walker, director of customer experience for Milliken’s global floor covering division. “Designers are even taking the flexibility of modular carpet one-step further and creating large patterns, in addition to the original carpet design, by using color and strategically placing carpet tile in a space. Gradations of color with an ombré effect are very popular, as well as expansive patterns,” says Walker. “An additional benefit of carpet tile

5 Bay Area Buildings News • March/April 2014

is that it can be easily switched for a different pattern or color. This allows designers and end users to have greater flexibility and easily update office spaces over time.”

Other Sustainable Innovations in Flooring

white oak, gunstock, colonial gray, midnight, maple mist, hickory toast and hickory saddle.

Another marked trend in flooring is bolder and more dramatic design — even in offices. “Commercial flooring is taking on the design characteristics of what would tradi-

Wood continues to maintain its place in commercial markets and is used in interesting new ways.

“Today, wood floor trends include featuring multi-directional installations, non-linear patterns, multiple wood species, mixed media, darker species or finishes, wider planks, and distressed flooring,” says Michael Martin, president of the National Wood Flooring Association.

“Using gray stains or finishes that range from subtle to dark, even black, is an emerging trend.

Mixed media combines wood with other flooring options like stone, tile, carpet, or even metal, further defining functional areas within the large, open-space floor plans. Installing wood floors in a non-linear format is increasingly popular. Custom parquet patterns are one way to accomplish this look, but installing the floor on a curved line, or following the lines of other architecture in the room, also achieves the non-linear appearance,” Milliken’s carpet products incorporate bold colors and patterns that designers like to use in today’s offices. (Photo courtesy of Milliken.) says Martin.

Wood, also sustainable, can be obtained in tionally be categorized as hospitality flooring,” says many new and popular wide designs, such as those Milliken’s Walker. “Designers are expanding their use of produced by Somerset. Its Wide Plank Collection is a new bold colors in office interiors and exploring alternate scales selection of flooring that includes Appalachian oak in 7” with creative use large of patterns, which infuses an enerwide widths, and maple and hickory in 6” wide widths. getic and innovative environment.”

All flooring in this collection is SolidPlus™ engineered conSustainable materials have gone beyond ethics to become struction, which features a 3mm thick solid dry sawn wear a necessity, in many cases. Mats Inc.’s Vice President JoAnn layer, and is packaged in random lengths up to 6-1/2’’— so Durette says, “Over the last several years, product sustainwhen installed, the appearance is the same as a traditional ability has taken on a whole new, all-inclusive meaning and 3/4” solid floor. The dimensional stability provided by product transparency has been added to building industry’s engineered construction is the perfect choice for wider vernacular thanks to Pharos, USGBC, HPD Collaborative width plank, and the eco-sensible use of raw materials is an and other organizations. Now, with the launch of LEED v4 added plus. It’s also available in a range of colors created to during this past November, it is no longer enough to comply be appealing to designers, such as natural red oak, natural with low VOC emissions, include recycled content, exclude chemicals of concern or be FloorScore certified. Product manufacturers must now reveal all material ingredients and Flooring Trends sources, detail production and distribution processes and • Carpet tiles: flexible and decorative authenticate the facts with 3rd party verification.”

Specialized market-focused flooring solutions are also • High-gloss floors, polished concrete emerging, such as Mannington’s award-winning new product • Larger format natural stone, colored aimed at the healthcare industry. The product is called • Materials engineered from organic sources Enlighten, a development in resilient sheet — in a PVC-free • Reclaimed wood, wider floorboards formulation. Its polyolefin/rubber composite formulation • Recycled parquet flooring provides a vinyl alternative in a homogeneous sheet ideally • Rustic, textured wood finishes suited to the demands of healthcare spaces. Enlighten • Chic black slate combines a strong aesthetic in the right gloss level with high performance, low maintenance, comfort underfoot and enhanced acoustical properties.

6 Bay Area Buildings News • March/April 2014

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7 Bay Area Buildings News • March/April 2014

Major Contractor Says the Cost to Build Green Spaces is Usually Recouped Q&A with Sean Truesdale, Principal of BNBuilders Since this issue focuses on green buildings, we should ask you to estimate the percentage of your clients that require some or all sustainable features in projects?

Nearly all of our clients want sustainability integrated into their projects — certainly more than 80%. Our developer clients want to see it so their buildings are easier to market. Our corporate clients want to see it because it aligns with their corporate philosophy, can save money on operating costs, and generally is the right thing to do.

Are your clients willing to accept higher costs to achieve green status? Given project features, how much more can a client expect to pay for a LEED designated office or building?

Most clients are willing to pay more for LEED, but the reality is most of our projects are achieving LEED without any kind of noticeable cost increase. Projects that are simply targeting a goal of certified or Silver frequently don’t have additional construction cost, merely the cost of certification through the USGBC. When projects target a higher Gold or Platinum certification, we may start seeing a 1-5% premium on the construction costs. But even these additional first costs frequently reduce the operating and life cycle costs of the facility, and many clients are willing to make this investment.

Do you ever encounter clients who say that attaining higher levels of LEED, like Gold or Platinum is too costly?

Sean Truesdale of BNBuilders.

Absolutely. I have run into many clients who associate LEED and sustainable construction as synonymous with expensive. I also find that when we educate clients with the real cost drivers of a project, many are surprised that the cost of a LEED Gold or Platinum facility is far lower than it was 10 years ago.

Your firm provides services to many sectors in the buildings industry. What are hottest: multifamily, offices, etc.?

The corporate office and developer building rehabilitation projects seem to be the hottest markets. There are certainly a lot of multi-family projects going, and we are seeing more activity in both the healthcare and biotech markets. We are fortunate to be in the hottest market in the country.

In a recent issue of our magazine, a major architectural firm’s principal suggested that the open-office trend is actually counter-productive for workers, because it can distract them from focusing on their duties. What’s your take?

I’ve heard the criticism of the open office trend, and we believe the ideal workspace leverages both open and enclosed areas — creating spaces within the space. As someone who came from a closed office environment, I can attest that it takes a bit of getting used to an open office plan. But our firm embraces the open office environment. It certainly allows more interaction and helps break down the barriers between departments. I also like seeing our senior leaders more accessible to the entire staff. A balance of open and private spaces works well for our team.

What future plans do you foresee for BNBuilders?

We will continue on our vision to be recognized as a premier builder in the Bay Area for our key market segments — commercial office, developer campuses, healthcare, biotech, mission critical and education. We strive to be the most advanced in utilizing smart technology in ways that allow us to deliver higher quality buildings to our clients at a lower cost. And we will continue to expand in the San Francisco and Silicon Valley markets.

Sean Truesdale is a principal of BNBuilders, a West Coast general contractor that specializes in highly technical commercial construction projects.

8 Bay Area Buildings News • March/April 2014

Green Building Focus

How Green is Your How green is your building? The short answer is—in spite of all the ad nauseam green-washing noise—very few buildings are said to be as sustainable by any respectable group. Of the nearly 5 million commercial facilities in the United States, only 18,000 of them contain areas that are LEED Certified by the U.S. Green Building Council, and there are only slightly more than 700 BOMA 360-certified buildings nationwide. Of the tens of thousands of commercial buildings in the San Francisco Metropolitan Statistical Area, the USGBC says fewer than 700 contain LEED or ENERGY STAR projects.

A great deal more work must be done to reduce energy use and waste produced in the buildings where we work and live. We have just begun an effort that has the potential of significantly reducing building operating costs and improving our environment, since buildings use more than 40% of energy.

The World Business Council for Sustainable Development says that the global building sector needs to cut energy consumption in buildings by 60% by 2050 to help meet global climate change targets. It says the building sector must achieve greater energy efficiency through a combination of public policies, technological innovation, informed customer choices and smart business decisions.

So the question naturally follows: How green does your building need to be? It’s an important business question — and a legal one now too — thanks not only to strong tenant demands but also because of The Cushman & Wakefield-managed Transamerica Pyramid California’s comprehensive new Title 24 regulations recently attained the coveted U.S. Green Building Council’s that take effect in July. It’s a touchy subject, with a lot Platinum certification for practicing the highest level of sustainof folks posturing and others being very candid, ability in energy use and environmental design. Its green features because being “green,” depending on how you calculate include an onsite cogeneration plant, a program of reduced gas, it, can be expensive for building owners and tenants or electricity and water cost of $2.5 million over four years, 70% waste a great way to save money. diversion, numerous LED lighting retrofits, enhanced building In candid interviews with well-placed sources automation and 12 EV charging stations. throughout the buildings industry, the picture emerges of efforts to achieve sustainable buildings operations that are complex and driven by many motivations.

Do You Need a Green Plaque?

An executive with a firm that provides services to numerous and varied buildings says, “Not all tenants really care about operating in green buildings. You might lose some trendy venture capital tenants or tech tenants, but by and large they just want to see you went for LEED and achieved it. However, you will see some nice cost savings over the life of your building between LEED Certified and LEED Silver. Even between LEED Gold versus LEED Silver, you will see some increased savings over the life of the building. Savings start to dissipate when you go from Gold to Platinum. Getting Platinum is really just to brag about it, as most people don’t have it. The initial cost of achieving Platinum is so large the ROI is not worth it to some clients — unless you are aiming for a Google or Facebook.”

“However,” the source continued, “to ensure occupant health is being properly looked after, it does help to get equipment in the building that utilizes HEPA filters to increase indoor air quality. It also helps to get low

9 Bay Area Buildings News • March/April 2014

Building?...Not Very Green, In Most Cases VOC items placed in the buildings (saves money on outgassing) and increase IAQ. Proper ventilation seems to be the new trend and it can save you loads of money on HVAC systems use. A green building is a high initial cost, but achieves long-term savings over the life of the building. Also you can most likely avoid lawsuits against your building with fewer toxins in the space. If a tenant gets sick due to off-gassing of some chemical, they will sue the folks with the money. More often than not, the building owner has more money than the janitorial company.”

In some cases, clients are intent on operating in greencertified buildings. CBRE broker Meade Boutwell says he often gets client directions to only show them LEED Platinum spaces. “We recently did two deals specifically because they were LEED Platinum,” Boutwell said and added that tenants often ask him if a building has ever won an EARTH Award conferred by the Building Owners and Managers Association.

The USGBC’s LEED certifications and BOMA’s 360 programs — along with EPA’s ENERGY Star — are leaders in authenticating levels of buildings’ sustainability. USGBC is focused primarily on sustainable practices, and BOMA 360 encompasses both sustainability and high building operational standards.

Nevada Pacific Consulting’s Anne Sparks says, “Except for the General Services Administration or large corporations that specify a particular USGBC certification in its lease, the typical, smaller tenants do not know LEED or care about the level of certification.” “‘Green’ is assumed in Class-A California buildings,” says Sparks. “However, it is not always delivered. A Class-A building has to provide, at a minimum, a clear recycling program, water-efficient fixtures and low/no VOC cleaning. Tenants want clean building, but do not want to smell the ‘clean’ (bleach, lemon, etc) that we used to associate with clean.

They don’t understand HVAC and energy management, nor do they really want to participate.”

Many say there is a lot of confusion about ratings.

“Ratings are not advertised and explained enough for tenants to understand them,” continues East Bay-based Sparks. “They do not know that BOMA 360 rates the management company versus the level of ‘greenness’. Very few of us research the different certifications that are out there in the world.”

“Here’s what it boils down to: You understand NASCAR. Winning cars have LOTS of sponsoring decals. Buildings with LOTS of decals on the front doors look more important that those that do not. Our tenants probably do not know what the decals mean, but it makes the building look really good and noteworthy,” she concluded.

Sustainability Imparts HR and Cost Benefits Most in the industry interviewed — like Facilities First CEO Lois Steiner — seem to strive for higher levels of sustainability. “Whether we voluntarily provide buildings that are green, or follow prescriptions provided by BOMA 360, the latest energy codes, the USGBC or even what level of green to me is not the issue. I believe we as facilities and real estate professionals should be proactive leaders in providing, U.S. Commercial Sector Primary Energy End Use, 2011

Source: Center for Sustainable Systems, University of Michigan.

rebuilding and initiating the absolute best in green technology, materials and practices that are available for our collective portfolios. Not only is it a ‘good consciousness’ response, it is good business, promotes healthy environments, and, incidentally is saving precious resources for our children and our children’s children.”

Many say that being green is fast becoming a huge human resources benefit. Increasingly people — particularly younger workers — want to be proud of their green workspace, and they don’t want to work in unclean conditions. This is a major issue in a talent-driven economy.

Larry Morgan is regional operational excellence and sustainability expert for North and Latin America for global software solutions firm SAP. Does Morgan think sustainability certifications matter?

“I would say not to the extent that it is a game changer when it comes to leasing. What is a game changer is if the building is as efficient as possible considering the infrastructure requirements and related operational components.

ENERGY STAR-rated building are sought after. The net for (Continued on page 18)

10 Bay Area Buildings News • March/April 2014

Greener Parking Garages Can Slash Energy Costs Having a cleaner planet is a great motive for greening parking garages, but there are dramatic savings to be had as well. An Acuity Brands study showed that a 420,000-sf garage cut annual energy use from $216,800 to $32,000 by instituting green best practices in lighting and ventilation. That got the attention of attendees at a Green Parking Council event held recently in San Francisco and moderated by Cushman & Wakefield executive Steven Ring.

The council, organized by Propark CEO John Schmid, brought together the many players whose efforts are focused on making parking more efficient. Mass transit, walking and biking are sure ways to make for a more sustainable world, but most people still use vehicles. And they have to be parked. So improvements in parking — from metered spaces to garages — have immense promise.

Companies like Acuity offer sustainable lighting solutions, making use of advanced wireless technology. Nagle Energy Solutions can vastly improve and lower garage ventilation costs. Nissan is fostering the spread of electric charging stations in garages. The event drew in an impressive array of firms and consultants dedicated to making “mobility” more environmentally responsible.

San Francisco Municipal Transportation Authority’s “SFPark” program alerts drivers to available street parking

by installing sensors and partnering with companies that create apps.

SFMTA has also improved meters and engineered them to accept credit cards with “demand-responsive” parking fees that vary prices according to use patterns according to Jay Primus.

BMW is rethinking the whole urban automotive experience, calling it “mobility,” a term that’s gathering more adherence in the industry as players try to think more broadly about better ways people move about.

Its DriveNow service offers a package of parking solutions that range from finding, booking, using and dropping off vehiEV charging stations are one solution cles in a more that makes parking facilities more convenient fashion sustainable. (Top photo courtesy of than some of its Propark America © 2014.) competitors to EV services offered by ParkNow. The Green Parking Council is an affiliate of the International Parking Institute. Its certification program covers an array of topics on the management, technology and structure design of parking garages. The council promotes sustainable power consumption, recycling programs, electric vehicle charging stations, more efficient lighting systems, alternative fuel vehicles, water conservation, carpooling, vanpooling, hybrid vehicles, motorcycles and scooters, automated payment systems and bicycle incentives.

11 Bay Area Buildings News • March/April 2014

12

Bay Area Buildings Recognized

Innovative EARTH Awards Given By Two Ar

T

he new Bay Area BOMA Innovative EARTH Awards contest stirred up a lot of excitement this year, as the staffs of more than two dozen commercial buildings in San Francisco and the East Bay sought recognition for their unique approaches to making their facilities more sustainable. The program is orchestrated by BOMA San Francisco’s Energy and Environment Committee, and applications are open to members of both BOMA San Francisco and BOMA Oakland/East Bay. Five buildings were named winners (see box below.) The innovations were surely innovative. For instance, Levi Strauss used its recycled jeans to insulate.

Kilroy Realty Corporation’s 201 Third Street building sponsored an Earth Week Twitter contest for its tenants to tweet their earth-friendly activities.

Shorenstein Realty Services’ Russ Building at 235 Montgomery Street uses Modlets for tenant plug load monitoring. Langley Investment Properties’ Orrick Building at 405 Howard Street minimizes solar loads by having their janitorial staffs close window shades during weekends. Hines’ Pleasanton Corporate Commons installed EV charging stations and developed an online tenant cooperation program.

Energy and Environment Committee Chair Jenna Hattersley said, “We are excited about the new BOMA

Innovative EARTH Award program and the number of applications we received. The Bay Area is on the cutting edge of sustainability, and this program really highlights all of the creative and inspiring practices that Bay Area building owners and managers have implemented.”

Committee Co-Chair Jessica Handy said, “The Innovative EARTH Award gives those who innovate the opportunity to inspire others, and we hope to encourage all those innovators out there to take the time to inspire!”

“Building owners and property management groups showcased their efforts to bring environmental stewardship to a new level of excellence,” says Energy and Environment Committee Co-Chair Laurie Rummelhart.

The unique awards were created by the Buildings Owners and Managers Associations of San Francisco and Oakland/East Bay. The program recognizes and rewards buildings whose owners and managers have implemented innovative measures in pursuit of environmental sustainability.

Innovations should address, at the building level, at least one of the following topics: waste diversion, energy conservation, water conservation, hazardous materials management, purchasing, transportation, tenant education or any other applicable sustainable category.

Innovative EARTH Award Winners Five buildings were named winners:

• Levi Strauss & Co., World Headquarters, San Francisco

• 201 Third Street, San Francisco • Russ Building (235 Montgomery Street), San Francisco

• Orrick Building (405 Howard Street), San Francisco

• Pleasanton Corporate Commons, Pleasanton

Orrick Building (405 Howard Street) Langley Investment Properties, Inc. Innovation: Minimized solar loads by having window shades closed during the weekends

for Innovations in Sustainability

13

rea BOMAs for a Variety of Green Practices

201 Third Street Kilroy Realty Corporation Innovation: Sponsored a Twitter contest during Earth Week for its tenants to tweet about their sustainable activities and practices

Russ Building (235 Montgomery Street) Shorenstein Realty Services Innovation: Provided tenants Modlets to monitor and help reduce energy use (Modlet photo courtesy of ThinkEco.)

Levi Strauss & Co. World Headquarters Interland-Jalson

Pleasanton Corporate Commons Hines

Innovation: Used recycled denim in walls and ceilings for

Innovation: Created EV charging stations and an online

thermal insulation

etiquette group for tenants

14 Bay Area Buildings News • March/April 2014

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15 Bay Area Buildings News • March 2014

How Building Managers Can Plan for New Title 24 Requirements

By Kathy Mattes The new Title 24 requirements scheduled to go into effect July 1 represent a major step towards the state’s goal of achieving Zero Net Energy (ZNE) for new commercial buildings by 2030 and enabling existing buildings to move quickly towards that same goal. While Title 24 contains changes that impact both residential and commercial property, this article will focus only on the commercial property impacts.

The origins of Title 24 go back to 1978 when the Energy Efficiency Standards for Residential and Nonresidential Buildings were created by the California Building Standards Commission. These requirements fall into Part 6 of the California Building Standards Code, which is Title 24 of the California Code of Regulations, therefore the reference to Title 24. The standards are updated periodically by the California Energy Commission to allow possible incorporation of new energy technologies and methods.

The 2014 updates take the original intention to the next level with two significant objectives: • It moves the design of new buildings toward “comprehensive building solutions,” by first reducing energy consumption through the integration of the newest technologies and then towards the installation of renewable energy generation like solar panels.

• It intends to strengthen demand for the newest technologies that will reduce or replace energy consumption in order to drive the cost down for those products. This will be coupled with new financial incentives offered through utilities to encourage energy efficiency investments by building owners.

Current thresholds for code upgrades in existing buildings, especially for mechanical and electrical systems, have been lowered. This will trigger compliance with the new Title 24 provisions on the majority of a building’s capital and tenant improvement projects. In addition, Governor Jerry Brown has directed that state agencies take measures towards achieving ZNE for 50 percent of the square footage of existing state-owned buildings by 2025.

Here are some examples of the changes in Title 24: • Plug loads, like those generated by computers, refrigerators and copiers, represent at least a third of the electric consumption in a commercial building. Title 24 strives to reduce “phantom power consumption” by requiring that 120-volt receptacles be enabled to turn off at the receptacle.

This results in a new requirement to install a controllable outlet within six feet of most existing outlets.

(Continued on page 16)

LEADERS IN SUSTAINABILITY

The Pyramid Center San Francisco LEED EB PLATINUM

Zynga Headquarters San Francisco LEED EB GOLD

345 California St San Francisco LEED EB GOLD

425 Market St San Francisco LEED EB GOLD

Adobe Systems San Jose FIRST LEED EB PLATINUM WORLDWIDE

525 Market St San Francisco LEED EB PLATINUM

Post Montgomery Center San Francisco LEED EB GOLD

455 Market St San Francisco LEED EB SILVER

71 Stevenson St San Francisco LEED EB GOLD

Congratulations to all of our BOMA Earth Award Nominees 6XSSRUWLQJ RYHU 0 VTXDUH IHHW RI /((' FHUWLÀFDWLRQV LQ 1RUWKHUQ &DOLIRUQLD

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16 Bay Area Buildings News • March/April 2014

Title 24 (Continued from page 15) • Through the use of new technology, energy control systems in the smarter buildings will be able to respond directly and immediately to demand reduction actions during critical-peak supply time periods.

• Title 24 accelerates the installation of more efficient lighting technologies by mandating automated daylighting (using sensors to measure the amount of natural light) and adjusting the light fixtures accordingly. Most building projects will trigger the requirement to utilize daylight harvesting within 10 feet of the window line.

• Independent air conditioning units (five tons+) for conference rooms and other gathering places will be required to have a dedicated source of outside air rather than use circulated, conditioned air.

These changes were originally scheduled to go into effect on January 1, and that date was pushed back to allow the State to complete the necessary software for processing forms for permitting, as well as to provide training to all municipalities in the implementation of these new code requirements. That date could change again if the State needs more time.

It is still difficult to estimate the additional cost for these new requirements. John Grcina, with RN Field Construction, has made a point of becoming an expert on the new Title 24. Without actual projects to go by, Grcina is estimating that the additional cost could be $10-12 per square foot for new buildings over a warm shell. The cost for existing buildings will vary greatly, based on existing conditions and the scope of new work. Jose Guevara with Cushman & Wakefield at Post Montgomery Unisource Worldwide Center, has been advised to expect additional costs 800-UNISOURCE of $4-7 per square foot. But Post Montgomery www.unisourceworldwide.com/green-gauge Center is way ahead of the curve on LEED compliance and, according to Guevara, has already installed some of the systems that will be required

by Title 24.

Besides the obvious cost for additional outlets, BMS and other equipment, as well as new commissioning requirements, there will be costs associated with design and plan preparation. There will be more paperwork to complete, and more complications in plan check, depending on how the cities choose to interpret these new requirements. Plan for more confusion in plan preparation and permitting, and definitely allow more time to obtain permits and final sign off.

Advice — meet with your general contractor and your mechanical and electrical contractors and begin to get an understanding of what will be required for your building. Then share the information with your owners so that they will be informed before you present a new construction budget to them.

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Mattes is an Independent Real Estate Consultant. She can be reached at kamattes@sbcglobal.net

17 Bay Area Buildings News • March/April 2014

Being Green Advocates Enhances Managers’ Careers Facility managers, engineers and property managers “In a survey of more than 1,000 CEOs from 43 countries, who develop and advocate sustainability programs can gain 79% agreed that sustainability is vital to the success of their greater career status within their organizations. Senior manorganization,” says Morgan. Becoming a sustainability agement appreciates man“champion” requires that managers who lower energy and agers learn more about the beneHere are questions Morgan says managers should ask: water costs, reduce waste fits of sustainability, understand • What are we doing that is climate-neutral or increase expenses, reduce emission how to become better advocates our use of renewable energy? impacts, lower operational and focus intently on their goals, • How are we influencing others in our supply chain? costs, boost occupant prosays Morgan. There are benefits • How is our product or service benign or sustainable? ductivity, improve occupants and risks involved.

• What are we doing that is water-neutral or reduces our health conditions and “Without (management) water use? improve community impact. buy-in and support, sustainabili• What materials are we using from renewable sources?

Larry Morgan, who is ty initiatives are difficult to • What do we contribute to solve community problems? regional operational excelimpossible to achieve,” says • What are we doing to get closer to zero waste? lence and sustainability Morgan. That means managers • What are we doing to reduce our impact on environment? expert for North and Latin must become strong advocates America for global software armed with compelling statistics. solutions firm SAP, recently Understanding an organization’s comprehensive goals is outlined how facility and other building managers can essential to this effort. become more valuable to their firms in an address to Morgan advises managers to build a business case for susthe International Facility Management Association of tainability. “A business case is a tool to support planning and Silicon Valley. decision-making for a change within an organization. It proThe Institute of Building Efficiency says green buildings vides the reasoning for initiating the project. It demonstrates experience an average net operating income that’s 5.9% highhow the project supports the organization’s strategy and er than a traditional building and attain greater market value. goals. It demonstrates how the project will drive results.”

18 Bay Area Buildings News • March/April 2014

Green Buildings (Continued from page 9)

Gordon Prill assisted Equinix obtain a LEED Certified rating for the LA4 Data Center Retrofit project. GP exceeded the client’s expectations and the project was certified LEED Silver Commercial Interiors. The two-story, tilt-up building was originally built in 2002 and retrofitted in 2009 to house an IBX data center and offices on both floors. The project challenge was to achieve a prudent balance of energy efficiencies within the infrastructure while maintaining a robust functionality of equipment in a world-class data center environment.

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certifications and maintaining the certifications when the ROI or IRR doesn’t pencil out. Example: If I am tenant so and so and I am in a building that has a fair market CAM expense would I pay x amount extra to be in a LEED building on a five year lease? Maybe not. It’s also a strategic decision. Some companies or tenants will pay extra to show corporate responsibility and have marketing plans driven off that. That’s an alignment decision.”

Judith Sayler with the architectural-engineering firm Gordon-Prill says, “I think in Silicon Valley there are many tenants who do care a great deal about working in a green environment. The role of the facility manager in some companies has morphed from providing standard tenant services into providing a workplace that appeals to a younger generation more focused on sustainability than previous generations. The FM’s roles may even overlap with that of talent recruitment and involve working more closely with HR and social responsibility managers to define work place strategies. I believe that tenants do care about green elements, i.e., daylighting which promotes better health, energy-efficient lighting and controls that don’t waste energy when a room is empty, access to charging stations, recycling programs, etc.

These types of things are becoming the ‘standard’ in providing great tenant services to a generation who cares about being green.”

Awareness of the need to make facilities more sustainable is widespread, but the tasks ahead are enormous and we have only just begun.

Industry Profile

19 Bay Area Buildings News • March/April 2014

Antiterrorism Engineer Says No Region Is Safe, But All Areas Can Be Made Safer Q&A with Eve Hinman, President of Hinman Consulting Engineers You and your firm are well known for developing engineering strategies to protect buildings that might be targeted by terrorists. Does the threat persist, and has it changed much since 9/11?

The interest in antiterrorism has declined in recent years, which is typical for extreme events that have not happened in a while. The human brain is wired to act in response to immediate danger, not intermittent dangers. The events of 9/11 were more than 12 years ago and the sense of urgency around terrorism has waned. The focus has shifted to natural hazards due to events like Hurricane Sandy. Nature has become more unpredictable with climate change, giving us the same uncomfortable feeling that terrorism does. Of course, much of our crumbling infrastructure is reaching the end of its useful life, which has added an element of Russian roulette to the situation. The professionals involved with disasters are promoting ‘resiliency’ as the antidote to this issue. Resiliency refers to mitigation and preparation before a disaster, taking action during a disaster, and recovering quickly after a disaster. What is compelling to me as an engineer about resiliency is that it is for all hazards not just one.

How do you achieve resiliency when you don’t know what the hazard is? That is a challenge that we are taking on as a research project as a firm right now.

Recently, you have spoken out about our need to protect our energy grid from Engineering expert Eve Hinman. terrorist attacks. How can terrorists damage our energy infrastructure, and what might be done to thwart their efforts?

I was at a conference a couple of years ago where I sat next to an electrical power engineer. I asked him whether it was true that the grid was as fragile as the media portrayed it. He told me that it was not an exaggerated claim. He told me that 12 well placed bullets shot at a ‘substation’ could take down the grid regionally. Recently when it was made public that 13 out of 27 transformers were disabled by military style weapons in Silicon Valley, it was eerie to remember this conversation. Fortunately, there are physical security measures that can be taken which can make substations less vulnerable. Not all substations are critical, so not everyone needs to be protected like Fort Knox. The level of protection and associated cost can be tailored to its respective risk. In this case risk would be expressed as a function of the level of redundancy of power supply at that location, the number of people affected, proximity to a road and other such factors. Making it more difficult to reach the site using multiple layers of barriers, hiding the transformers behind an opaque fence (with cameras to detect activity behind the fence), shorter response times, and providing hardening for the transformers are some ideas. It is totally doable.

Much of your firm’s work has been protecting government buildings, such as the new Federal Building in San Francisco.

Do you think companies should also better protect themselves from attack on buildings where they do business?

If the company has reason to believe it is a target for terrorists, than it should consider having a risk assessment of its building inventory performed. Terrorism is very rare, so I would only recommend it only for those who are truly at risk. One threat that is real for major corporations is coastal flooding. The majority of the U.S. population is in coastal areas. Right here in the Bay Area for instance there is a major risk in Silicon Valley, which is only a few feet above sea level and is apparently not taking this situation seriously. Given how much this area contributes to the economy of California it seems this should be taken more seriously. Given the attack on a substation in Silicon Valley that I mentioned before, I would recommend a terrorist risk assessment as well.

Are cities in the Bay Area as likely to be targeted as New York, Washington, Chicago and LA? If so, why?

The federal building in Oklahoma City was bombed in 1995 and no one anticipated that they were a target. When only big cities are protected, smaller cities become attractive because no one is expecting terrorists to attack there. Living in the Bay Area myself, I understand how easy it is to be lulled into believing that nothing bad can happen here. It is so beautiful here and terrorism seems so far away. We are deceiving ourselves by believing this. The truth is that we need to be realists about terrorism. Thomas Jefferson is credited with saying that “The price of freedom is eternal vigilance.” If we don’t protect what we have in the Bay Area, it will be taken away.

Eve Hinman is president of Hinman Consulting Engineers, whose offices in San Francisco, Washington, DC and New York City offer services to stateside and global projects.

20 Bay Area Buildings News • March/April 2014

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21 Bay Area Buildings News • March/April 2014

Hotels Chase Technology to Pursue Better Guest Experiences

By Bob Eaton

T

raveling people have a relationship with their hotels end, and all hotels really need to provide is a great TV, lots of and guest rooms. The hotel industry has been, at power strips and super big bandwidth. times, a harbinger of consumer wishes and aspiraThe effort currently consuming hotels is how to “monetions and at other times a follower. tize” those guest services’ capital related expenses. On the one Consider the “color” TV. In the 60’s, hotels and motels hand, the guests are rapidly rejecting the idea of paying for proudly announced on their neon signs and billboards the Wi-Fi in their rooms. Most brands are attempting to tie their availability of color TV and air-condirewards and frequent user programs tioning. Many who sought those properto getting the service free, others ties had neither of these “upscale ameniare experimenting with a “tieredties” in their own homes. The same service” approach, that provides could be said for “king-size” beds, basic Wi-Fi for each guest. But if touch-tone phones and whirlpool baths. guests require access for more Over time these “amenities” became bandwidth, they pay à la carte. By commonplace for many homes in the the time the industry figures it out, western world. Hotels in that era got there will be more evolution of our reservations through “ports” like: tolltech needs, and we’ll be stuck with free telephone lines, yellow pages, billa bag of beepers. boards, U.S. Mail, and travel agents.

Here are some examples of techSince the computer age and the nological and lifestyle changes Internet has become so dominant in all being made in and around the hotel our lives, hotels rarely lead the technobusiness. It appears hotels will at logical parade. Hotels are now aspiring best staying even, but seldom will to keep up with this faster world we they be a leader. Technology is now now inhabit. There are good reasons the leader, and the hotels and their for this lagging role. In the capital management are only trying to stay expense part of the hotel business, current. owners typically plan to renovate guest Consider where we’ve come: Hotel industry veteran Bob Eaton says hospitality rooms every four or five years. As tech• In place of billboards and tolltechnology is revolutionizing the industry. nology is now a great part of travelers’ free numbers, hotels receive the lives, their changing needs and wants can’t wait for five years. majority of their business over the Internet. According to There was a hotel group that hoped to “leap” ahead in the Alexa.com, in 2013 Internet booking revenue has grown tech world in 1982. Their idea was to rent “pagers” to guests more than 73% over the past five years and over 65% of and provide a toll-free phone number the guest could give same day hotel reservations were made from a smartphone. their family and company and a “mailbox” to receive and • The Internet and smart phones help most hotel guests make recorded messages, all toll-free! The device could even locate the right room at the right price instantly. notify you when it got a message. If you were close to a pay • Smart phones are soon becoming an “everything” phone, you could call and retrieve the messages. This was device, including confirming individual pre-arrival preferStar Wars stuff at the time, but shortly cell phones became ences, the guest room key itself, a concierge-type app or affordable for travelers, and who knows what happened to all connection to all hotel services, the in-room thermostat, and those pagers. text messaging for ordering room service, asking housekeepSo today, hotel guest rooms are changing to meet the ing for some clean towels and checking out. needs of a steeper demand curve for the hotel experience.

It’s hard to see where these things will end with impact The hotel industry’s target has become providing the guest on hotels, their guests and the experience they provide, but the same access, and communication options as they have don’t be surprised to someday find a box of “smart phones” residentially. The guests will bring their own content for in the corner that aren’t needed anymore. entertainment or get it while staying in the hotel using hotel Wi-Fi. The good news for hoteliers is that the guests’ smart Eaton is president of Eaton Hospitality Investments. phones will soon control their guest room from beginning to

22 Bay Area Buildings News • March/April 2014

90 Years Ago...

Calvin Coolidge was president Gershwin’s Rhapsody in Blue was a hit MGM Studio was founded in LA Prohibition “speakeasies” cropped up Flappers danced the Charleston

…and the Building Owners and Managers Association Oakland/East Bay was founded

Let’ s Celebrate!

Signature Event 6.19.14 Visit www.bomaoeb.org for event details

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Vanir Builds Out Chic Urban Space for WeWork A privately held company that builds communities made up of entrepreneurs and small businesses, WeWork empowers its members by providing functional workspace, collaborative environments, connective technology and meaningful services.

WeWork currently has offices in New York, Los Angeles, San Francisco, Seattle, Washington D.C. and Boston.

WeWork contracted with Vanir in October 2012 to build out its space at 25 Taylor Street in San Francisco. The CM/GC cost-plus-fee contract enabled WeWork to start construction before the design documents were 100% complete.

Much like WeWork’s philosophy, the design and construction team worked collaboratively to create an exciting and chic workspace. Adjacent to the Golden Gate Theater, the seven-story office building is 90 years old and had been unoccupied for 10 years.

IFMAs • BOMAs • AIAs • IREM CREW • SMPS • CoreNET Apartment Associations • NCCAR SPUR • Hotel Associations... and many other industry players

The inviting WeWork space at 25 Taylor Street, San Francisco.

The project team was tasked with bringing life back to this historical building that had been boarded up and abandoned.

After the initial abatement and demolition, Vanir moved forward with the new infrastructure requirements and finishes. A major part of the improvement work was installing new utility systems including electrical, fire sprinklers, fire alarm and heat into the building.

The substantially complete first phase of the project allows WeWork members to enjoy the 45,000 square feet of space.

Vanir and WeWork recently finalized a contract for the next phase of the project, which will be Design-Build services for the remaining three floors of the building. Anyone interested in leasing space from WeWork may schedule a tour by visiting www.wework.com.

Since 1980 Vanir has provided construction services for nearly $16 billion dollars in construction throughout the nation. During each phase of planning, design, construction and close-out, Vanir continuously focuses on achieving the owner’s goals for success. Owners throughout the private, education, healthcare, justice and civil market segments appreciate the level of quality and personal service received by Vanir’s team. As your construction expert, Vanir can provide many services including project scheduling, equipment and material procurement, general contracting, quality assurance/quality planning, and commissioning. In addition, Vanir offers construction management, design-assist, design-build, and integrated project delivery services.

For more information: Dan Ferst • 415.284.9050 • dan.ferst@vanir.com • www.vanir.com

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Exec Says New Technologies Improve Service Industry Profile

Q&A with Jeff Bosshard, President of Multifamily Operations, Woodmont Real Estate Services

To what extent are managers of large apartment complexes like small-city mayors?

To a very large extent especially since our resident profile in the Bay Area is extremely diverse. Furthermore, we are dealing with people's homes which can be a very emotional experience at times.

With shortages of available apartments in the Bay Area, do apartment managers still need to devote many resources to marketing?

Yes, as we endeavor to maximize building value and NOI (net operating income), well-placed marketing dollars are vital to securing top rents. Given the same closing ratio, increased prospective rental traffic will lead to a higher number of new rentals, less availability and the ability to test even higher asking rents.

All of these types of automations allow site personnel more time to lease apartments and better service residents, thus building relationships in lieu of completing paperwork and administrative tasks.

Jeff Bosshard at one of Woodmont’s Bay Area communities, which serves an extremely diverse group of residents.

How much of your job is spent on maintenance and repair supervision? Which issues are the most challenging?

A significant amount of time is devoted to R&M supervision as we strive to exceed our existing residents' expectations which will ideally lead to reduced turnover. Environmental issues such as units with mold tend to be the most challenging as they are difficult to correct and often require the temporary relocation of the resident(s).

Are you seeing new technologies coming online that make operations more efficient?

Yes, such as automated revenue management systems which re-price available units daily based on a variety of factors.

Do you foresee a demographic shift to rentals, given the recent costs and upheavals in home ownership?

Only in the near term as owning a home remains the American dream. The demand for rentals in the Bay Area remains strong as fundamentals for the rental market remain strong: steady job growth, low availability in the for-sale market, and somewhat rising interest rates.

To what extent are state or local government ordinances and regulations a problem managing a property? Are there troublesome issues managers face now in your area?

Fortunately our industry is represented by the California Apartment Association which plays a vital role in monitoring proposed new legislation and working with government officials to craft policies which are palatable. The threat of rent control remains an age-old issue which ultimately results in the lack of reinvestment and deterioration of rental property.

Belmont CA-based Woodmont is one of the most prominent real estate management firms in Northern California, managing a diverse portfolio of office, retail, industrial and multifamily properties valued at over $3 billion.