California Buildings Q3 2022

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Design & Operation of Office, Multifamily, Hospitality, Medical and Government Facilities

Q3 2022 • $5

Working in the Open Healthy Spaces Encourage Productivity & Engagement

SPECIAL FEATURES... n IFMA Addresses

Staffing Challenges n Smart Watering Tips n Political Violence and

Preparing Your Property n California CRE Future

Looks Better


Contents 6 Renters Are Voting With Their Feet Housing Californians is probably easiest to do by constructing multifamily complexes—rentals and condos. Where that is likeliest to occur may well follow the patterns of rent inflation, as people increasingly move from much pricier, highly concentrated areas like San Francisco and Los Angeles to more affordable regions. And inflation is already affecting these suburban counties. For instance, according to a recent CoStar report on rent inflation, the average San Francisco apartment cost was actually down 1.8% since 2019, probably because of the exodus of value-hunting employees allowed to work remotely. During the pandemic, the average San Francisco rent had dropped to $2,860, but a move to Sacramento County, for instance, at $1,569, is a considerable monthly savings. Los Angeles County rent inflation since 2019 was only 6.7%, compared with more bargain locales like Riverside County, whose popularity resulted in a 21.9% rent inflation. San Diego and Sacramento counties both showed rent hikes of almost 17%, and Ventura was almost 19%. These areas are seeing growth and probable demands for new construction. Given the numerous governmental challenges to building multifamily homes in cities like San Francisco, areas likely to welcome new housing will certainly see growth. After experiencing a huge flight from cities in the 1950s, America’s second “suburban exodus” is well under way, with investors noticing the trend. Whether the big cities will respond with fewer regulatory hurdles and public-private building initiatives to fill their emptying downtowns with residential housing is an open question. Dobbs Anti-Abortion Decision Could Boost State’s Economy Some states—like California, New York and Massachusetts—will add to their economic development appeal by announcing that women employees’ reproductive rights will be protected for companies that operate here. In contrast, states like Texas will have to tell prospective employers that their women employees will likely be forced to have children they don’t want—or become criminals if they seek abortions or even fly to other states for a procedure. This new Supreme Court decision could have a transformative impact on where companies do business and further drain the economies of states that strictly regulate women’s reproductive rights. Governor Gavin Newsom’s administration is already offering incentives to companies that want to relocate from states where women’s and LGBTQ people’s rights are abridged from current or likely Supreme Court and state legislative actions. His policies could reverse the recent outward population move from California to cheaper states. California Cities Still Shine Brightly Four of America’s top 10 “best” cities are in California, in spite of all the challenges the state has faced, according to a study by Resonance Consultancy. LA, San Francisco, San Diego and San Jose metro areas shine brightly for all the reasons that have traditionally attracted settlers and visitors. Other big metros that made the U.S. list include New York, Washington, Chicago, Miami, Houston and Las Vegas. Resonance, which studies 400 cities across the world, says, “The ranking evaluates each qualifying city across the six pillars of place equity: Place, Product, Programming, People, Prosperity, and Promotion.” For more data, visit www.bestcities.org/get-the-scorecard/. — Henry Eason

Working in the Open: Safer and More Desirable

10

IFMA Chair Addresses Staffing

14

Getting Smarter About Watering

Preparing for Political Violence

20

Decarbonizing Construction Makes Huge Green Impact

New California Projects Debut

26

16

22

California CRE: Future Looks Better

TO EDITOR Comments on articles? Suggestions? Contact henry@easoncom.com

California Buildings Team Henry Eason, Editor henry@easoncom.com Ellen Eason, Publisher & Associate Editor ellen@easoncom.com Contributing Editors Ken Cleaveland, Public Affairs Advocate Bob Eaton, Roberts Hospitality Jessica Handy, CodeGreen Solutions Rich Lerner, Construction Consultant Michael F. Malinowski, AIA, President, Applied Architecture Inc. Katherine A. Mattes, Real Estate Consultant Steven Ring, Fulcrum Real Estate Development Carlos Santamaria, CEES-Advisors

Advertising Information Ellen Eason, ellen@easoncom.com 415.596.9466 © Copyright 2022 Eason Communications LLC PO Box 225234 San Francisco, CA 94122-5234

www.cabuildingsnews.com Copyright © 2022 by Eason Communications LLC, publisher of California Buildings News. The publisher assumes no liability for opinions expressed in editorial contributions to the magazine or third-party quotations within articles. The publication is not responsible for claims in advertisements. Printed in the U.S.A. Cover image credit: Adobe Stock.


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Electricity Savings & Earnings for California Buildings The industrial building boom of California is being driven by Southern California’s geographic benefit from being the nation’s largest U.S. gateway for international trade at Los Angeles and Long Beach ports. With the increased demand of e-commerce, cold storage, and last-mile distribution, it is no wonder that Los Angeles, Inland Empire, and Orange County accounted for over 15% of the entire country’s industrial real estate transactions by dollar volume according to Commercial Observer.

Why are buildings’ electricity usage hours important? The main reason is due to the 24/7 balancing of electricity supply and demand as it's being transported for use to buildings to ensure safety and reliability of the electric grid so buildings can stay energized when power switches are turned on. Since California has an abundance of solar energy during sun hours, they are often either generated when demand of electricity from buildings is low such as residential roof tops or they are far away from the source of demand. Thus, this causes an oversupply and electricity pricing downward curve during day hours. In the case of California, it has been referred to as the "Duck Curve." Have you ever wondered why as solar energy is now affordable our electricity rates continue to increase? When solar energy is abundant, but demand is less than its supply, often that energy is dissipated or wasted. And as soon as the sun sets, the solar energy reduces to almost zero electricity production while buildings’ electricity usage continues to increase as more electric devices begin its power consumption beyond MicroNOC Inc. turns California While this is great the day hours such as elecbuildings into Clean Virtual Power news for industrial tric lights, stoves, heaters, Stations to receive electricity CRE investors, TV, computers, and Electric usage & trade earnings during builders, owners, Vehicle charging. To cure the California peak hours, 4pm–9pm. and tenants, there is sudden demand spike during one caveat: electrici4pm-9pm when solar energy ty consumption challenges. The total non-residential is out, CAISO and utilities turn to expensive power buildings’ electricity usage for Los Angeles County is reserves or CO2 emissive thermal generators such as gas 43GWh, Inland Empire is 19GWh, Orange County and and coal as they are readily available and can be disSanta Clara County each at 12GWh according to patchable whenever needed. As a result, every time they California Energy Commission 2020 energy reports. are ‘ON’ they are about three times more expensive than Stabilizing the growth of these consumption numbers is normal power and emit CO2. Is there a better, cleaner, necessary for California buildings to keep the lights on and less expensive alternative solution for buildings? for all. Specifically, California’s peak hours of 4pm-9pm, Yes, there is. When buildings are capable of shiftare such a serious matter that California grid operator, ing electricity time of use, buildings can replace CO2 CAISO, and all California utility companies are asking emissive generators for California’s electric grid with everyone to reduce energy consumption during those MicroNOC’s Clean Virtual Power Stations (CVP). Buildings hours. It is also important to note that 4pm-9pm conwith CVP can receive electricity savings and trade sumption accounts for approximately 30% of total elecearnings. To learn how CVP works and if your building tricity spending for businesses due to increased rates qualifies for a CVP upgrade or to register for a Lunch caused by uncontrollable demand as the sun sets. and Learn, visit our website. Balancing Your Rate, Balancing the Grid!

To learn more about Clean Virtual Power Stations, visit www.Micronocinc.com.


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6 California Buildings • Q3 2022

Working in the Open: Safer and More Desirable Designers and Realtors Create More Open Outdoor & Indoor Spaces The concept of being “open” has so many positive meanings in our culture, so it is appropriate that openness is now being used in workplace and living architectural contexts to mean greater health and community. And no place in the country has a better climate for year-round outside openness than California, with mostly mild temperatures and plenty of sunshine. As people return to offices and hotels and better enjoy multifamily and communal settings, designers and commercial realtors are creating more open surroundings where employees, guests and residents can gather safely and receive the biophilic benefits of the outdoors. (Continued on next page)

Above: Rendering of rooftop at 415 Natoma in San Francisco. Image courtesy of Brookfield Properties.

Right: University of San Diego North Torrey Pines Living and Learning Neighborhood includes ample outdoor spaces. Image courtesy of HKS/Tom Harris Photography.


7 California Buildings • Q3 2022

415 Natoma in San Francisco One dramatic example of this is the facility at 415 Natoma within the 5M mixedused development in downtown San Francisco. It is the 25-story, 650,000 square-foot Class A office component of the 5M Project. The building includes ground-floor retail, an expansive open-air lobby with direct access to Mary Court, and numerous outdoor terrace opportunities for office tenants. “When it comes to office design, landlords like Brookfield Properties are laser focused on creating spaces that empower our tenants and spur collaboration, creativity, and innovation. The needs of the modern workforce have evolved significantly since the days of the office cubicle and a one-sizefits-all approach. At 415 Natoma, Brookfield is working hand-in-hand with each tenant to curate a wide variety of dynamic spaces, such as breakout rooms, open concept floors, outdoor workstations, and more, with a focus on elevated interior design and the seamless incorporation of technology, to ultimately create environments that inspire employees and drive productivity,” says David Sternberg, executive vice president for Brookfield Properties. 5M is a recently completed mixed-use development in downtown San Francisco. The project incorporates innovative ways to redevelop large-scale urban sites by bringing together diverse uses and programming influenced by the SoMa neighborhood and community. In a partnership with the Hearst Corporation, Brookfield Properties has transformed empty parking lots and underutilized warehouses into a vibrant pedestrian experience with new public open spaces, housing, offices, retail and restored historic buildings. (Continued on page 8)

From top: Expansive lobby opens to the outdoors. Dynamic spaces feature open-concept floors. Development features park settings. Images courtesy of Brookfield Properties.


8 California Buildings • Q3 2022

Left: University of San Diego North Torrey Pines Living and Learning Neighborhood offers meeting rooms that incorporate the outdoors. Image: Courtesy of HKS/Tom Harris Photography.

Working in the Open (Continued from page 7) Openness Is a California Phenomenon Openness is being embraced all over the state, in all sorts of commercial settings, like the campus of the University of San Diego, where the Delawie architectural firm designed the Knauss Center for Business Education. It includes a natural ventilation system so that when the conditions are right, the mechanical system can shut down and the windows open for natural ventilation. The design also incorOperable exterior wall at BioLegend. porates an Photo courtesy of Delawie. exterior courtyard designed for informational study and classes to spill outside. There are outdoor tables and work areas on the balconies of the building that face the courtyard and on the west side of the building. In 2019 Delawie also designed BioLegend including its main campus building with a now iconic 70-foot tall

atrium. The main campus is LEED Certified. There is a 4,380 SF green roof with landscape designed by Schmidt Design Groups that incorporates drought-resistant, native species. It provides the BioLegend team the opportunity to relax or meet outside. This is part of 250,000 SF of outdoor amenities integrated into BioLegend’s campus. It features operable exterior walls in a variety of projects.

UC San Diego North Torrey Pines With arguably the world’s best weather, the San Diego area showcases openness. HKS Inc.’s San Diego Office Director Jeff Larsen says, “The workplaces at UC San Diego’s North Torrey Pines Living and Learning Neighborhood NTPLLN prioritize equitable access to evidence-based design strategies employed to improve mental, physical, and social health. Designed to support individual respite and collaborative gathering in a garden-like setting, interior workspaces and conference rooms connect seamlessly to exterior terraces with folding glass doors to engage scenic coastal views and direct access to the region’s breezy, restorative climate. These blended interior/exterior spaces are also accessible to students and the greater campus community for the added benefit of social engagement and belonging due to the increased opportunity for chance interactions and meaningful conversations among the diverse groups of campus community.” (Continued on the next page)


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San Diego Market “San Diego is a coastal market that has always embraced and created attractive outdoor spaces for commercial properties due to its idyllic year-round moderate temperatures and abundance of sunny days,” says Derek Hulse, managing director, Cushman & Wakefield. “The pandemic has further fueled the desire of tenants/companies wanting fresh air and outdoor amenities in an attempt to provide their employees with a safer and healthier work environment. “In the past, an outdoor area may have consisted simply of a small seating area in a breezeway or open 550 West project in San Diego. Photo credit: Gensler. patio, but today’s modern outdoor experience is being rethought and significantly enhanced. lounge areas, as well as recreational activities and sports When possible and outdoor space is ample, landlords courts like pickle ball, bocce ball, basketball, volleyball, etc. are looking to provide outdoor areas for company work They are also incorporating outdoor fitness, yoga and other functions such as conferencing and events — some health and wellness activities. with cutting-edge video screens. “They also envision “We will continue to see this trend with an opportunity to elevate amenity packages by adding or improving features such as outdoor dining options, no expectation that demand for outdoor

space will change in the future,” says Cushman & Wakefield’s Derek Hulse. “In existing projects and certainly for new developments, landlords are also creating balcony space adjacent to tenants’ indoor space designated for their exclusive use or utilizing roll-up doors to connect indoor/outdoor space. We will continue to see this trend with no expectation that demand for outdoor space will change in the future,” he concludes. n

Above: 1420 Kettner project in San Diego. Photo credit: Haley Hill Photography.

Right: Sunroad Centrum project in San Diego. Photo credit: Sudenim (www.sudenim.com).


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IFMA Meets Challenges With Facility Management Staffing With Laurie Gilmer, Chair International Facility Management Association Q: What are the major challenges of a facility manager today? A: There are several current challenges facing the FM community: One is staffing for trades. It has become increasingly more difficult to fill and keep tradespeople, such as HVAC, maintenance techs, stationary engineers, etc., in those positions. And due to a competitive hiring marketplace, many FMs are losing their tradespeople to other companies offering better employment packages. Another is adapting to a hybrid working model while controlling costs. There is a worldwide desire to determine the ideal work model, but as the workplace continues to change and evolve, and new terms emerge for hybrid work – defining what those mean is proving difficult. Due to the fluid nature of hybrid work and the changing expectations of use and purpose, space planning is also heavily affected. And lastly, while sustainability continues to be a perpetual topic for FMs, ESG reporting is a whole a new challenge for the profession. Organizations are increasingly adopting carbon reporting and reduction requirements. As that occurs, the span of reporting is reaching beyond facility energy use to other activities beyond the facility manager’s control. Requiring carbon footprint for every

item and activity – manufactured or produced, with standardized rating, is likely to become a part of the FM domain. IFMA’s FMJ Magazine recently published an interesting article on this: http://fmj.ifma.org/publication/?i=752294&p=20&view=issueViewer Q: Is staffing facilities becoming a major problem, and how is IFMA helping to meet it? A: IFMA is committed to helping grow interest in careers in the FM profession and feeding the pipeline of emerging professionals. With $99.8K as the average base salary for an FM, there is no better time to join the industry. One way we are working to grow the pipeline is through the creation of an all-new awareness video campaign, anticipated to rollout in early 2023. The series will spotlight a variety of facilities and highlight opportunities available uniquely through a career in FM. To support existing FMs in advancing in their careers, IFMA provides members with access to Knowledge Library which hosts a wealth of resources vetted by industry leaders. They also can turn to one another for peer-to-peer discussions through Engage, IFMA's online forum, and through local chapters, industry councils and communities of practice. To support FMs in advancing in

their careers, IFMA provides unparalleled training and is the provider of the industry’s globally-recognized professional credentials—FMP, SFP and CFM. For those unsure of what training would be best for them, IFMA has developed a new SelfAssessment Tool to help individuals recognize their possible FM knowledge deficiencies while identifying the training to best fill those gaps. Following recommended training, the dashboard score will automatically adjust to reflect the user’s new level of expertise. Recognizing certain beneficial expertise is available from adjacent industries whose work often touches an FM’s, IFMA has developed strategic partnerships with other highly respected associations, to provide an entry point to training for members on both sides of the partnerships. While our partner courses and alliances continue to expand, they currently include ISSA, ASIS, ASHRAE, CEI, OSCRE, BIFMA, NEBB, NEEC and AVIXA. IFMA’s Foundation is also instrumental in building interest in FM as a career through its Global Workforce Initiative (GWI). Working in partnership with community colleges and economic development authorities, the Foundation continuously creates pathways for opportunity. (Continued on page 25)


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FCC Order Contributes to Rising Telephony Costs and Deteriorating Service Rising costs and a deteriorating network, particularly emergency phone), you’re told someone could be there on in California, have accelerated the desire to eliminate Friday. Meanwhile, the telecom company is also charging dependency on analog phone lines. But why? What’s you $1 per minute ($1440 a day) for each of those autochanged? Let’s start with a quick history lesson. In August mated calls. of 2019, the FCC issued Order 10-72a1. This order (which The bad news? That’s a true story. When the property many in the industry have incorrectly called a mandate) manager reached out to his elevator company, they congave carriers a three-year window to remove support from firmed the problem was with the phone line and beyond traditional landlines. We’re now at the end of that optional their scope. Then, the calls stopped. Problem solved, right? grace period. As a part of their troubleshooting efforts, the Let’s be clear, as copper networks aged, support for elevator company discovered the phone line had been this “old technology” waned. With improved options completely disconnected. The phone company had termialready available, official nated the phone line, but acknowledgment from did it without talking to Telecom the FCC really just gave anyone on site. Instead Provider carriers permission to of being relieved the continue status quo— automated calls had Phone Line Expense $980.00 $0.00 driving their customers stopped, the building Monitoring Expense $0.00 $96.58 to alternative solutions manager was now even via increased connectivity more concerned because Total Monthly Charge $980.00 $96.58 issues and higher prices. the elevator communicaKings III Monthly Savings $883.42 The real issue is that tion system was out of Kings III Annual Savings $10,601.04 analog phone lines are code compliance. expensive to maintain, The good news? The and carriers are more than elevator company recomhappy to pass those costs along to you. Check your phone mended that property reach out to us here at Kings III. bill lately? Knowing just how much your elevator phone is Our cellular solution completely eliminates the need to costing you is now more important than ever. I’ll explain. rely on traditional landlines. We were able to eliminate the Imagine it’s Monday morning. You are sitting at your phone line in question, another line, and $900 in monthly desk in San Diego opening your phone bill (for a single expenses; all while keeping the building’s elevator commuline) which totals $468.93. No, that’s not a typo, almost nication system code compliant. (See chart above.) $500 per month for just one phone line connected to a Think this is an anomaly? Think again. We have single emergency elevator phone. Now think about what customers in San Diego and Los Angeles who are now you’d do if that really expensive elevator phone line seeing phone bills as high as $1,200 per line! started experiencing connection issues, making continuous We encourage you to take a closer look at your telemechanized calls. And when you call the phone company phone bills — and don’t hesitate to reach out to Kings III to request immediate service (because this is an elevator for help in doing so.

To learn more, check out the full story complete with the phone bills mentioned above at https://go.kingsiii.com/ san-diego. Email: sales@kingsiii.com w Call: 855.760.4900



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Getting Smarter About Watering California Landscapes By Mahalakshmi Balachandran and Adam Crowell

W

hen someone hears that California is entering a drought, the news gets less shocking each time. The hard truth is that California’s climate is changing so rapidly that seasons without much rainfall have become ordinary. California’s current drought continues into another year, making water more of a focal point for sustainability. Global warming and changing climate urge more permanent changes to utilize water more efficiently. This probes a critical question—can you have landscapes that look lush and colorful and still use less water?

Adapting to Seasonal Change One myth that has made its way around California is that we should plant our plants in the fall after the summer heat has worn off. This fear stems from the idea that plants planted in the winter or summer would be too weak to make it through the entire season, and planting in the fall was best for the plants to become established by spring. The reality is that California’s climate is mild enough to plant at almost any time throughout the year. Las Pilitas Nursery writes, “Early fall can be a problem in areas where the pressure from deer and rabbits and other critters is at its highest point then when Photo credit: David McCullough, McCullough Landscape Architecture.

the end of the dry season is near, the animals have run out of food, and your newly planted, juicy plants look tasty!”

Creating a Microclimate Microclimates in landscapes can be naturally occurring or intentionally designed depending on the site. For example, topography can redirect water flow efficiently and influence runoff and temperature. With more than one microclimate, plant material should be thoughtfully selected and grouped for the type of soil, sun, and shade requirements. An important thing to remember is that you also do not want to combine plants that hold a drastic difference in water needs. One of the key resources for selecting plants is the WUCOLS database, which lists plants for the region based on plant water needs. This database can help determine what plants’ water needs complement the ones you already have or proposing for the site.

Rethinking Turf It is difficult to have an open lawn area in California and maintain its health throughout a drought. What makes it more difficult is that some cities have even placed ordinances that ban artificial turf but still expect you to maintain the grass area (Continued on page 24)


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How California Businesses Can Help Save Water By Margaret Mohr, California Department of Water Resources California is in the midst of a third year of extreme drought driven by our changing climate. With water supply conditions critical in many parts of the state, we are preparing for the possibility of a fourth dry year. But it’s not just about what’s happening right now. Climate change is shifting California’s landscape permanently. Scientists and water experts warn that we are moving to a hotter, drier future, forcing all Californians to rethink the way we use water.

Climate change is a collective problem that impacts everyone—from California’s families and farms to the government, businesses and industries that shape our state and local economies. The solution requires us all to do our part by taking actions now that can help alleviate the consequences of extreme drought. To help prepare and adapt to California’s changing climate, Governor Newsom recently announced “California’s Water Supply Strategy – Adapting to a Hotter, Drier Future,” which (Continued on page 24)

Photo: Adobe Stock.

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16 California Buildings • Q3 2022

Association News

Preparing Your Facility for Political Violence If the U.S. Capitol Can Get Attacked, Any Building Can On Jan. 5, 2021 almost no one imagined a scenario in which a sitting president would encourage a violent armed mob to actually attack the Capitol building in hopes of overturning his election defeat, so what are the chances that your facility could experience civil violence? Probably none, but the possibility is realistic enough for the world’s leading commercial real estate organization to issue a detailed guide to its members on how to prepare for violence. The Building Owners and Managers Association International recently distributed to its members a “Civil Unrest Preparedness Guide.” BOMA says in its introduction to the guide, “Given current economic uncertainty and political tensions, preparedness should remain a top concern. This guide has some commonsense precautions and a checklist that building managers can take to protect the building and its tenant base.” The full guide is available at www.boma.org. It is chillingly realistic in its advice. (See preparedness tips below.) u Activate precautionary steps

by increasing security measures and personnel; visible security can also act as a deterrent. u Ensure that all recording devices, closed-circuit televisions and cameras are operational. u Remove, repair or replace any loose items on or around the building that could be used as projectiles. u Secure construction sites, trash dumpsters and outdoor property (e.g., tables, chairs, planters). u Consider covering all ground-floor glass windows and doors. u Secure the perimeter by implementing any access control procedures, such as closing selected entrances, manually checking IDs and posting additional signage. u Alter the building’s routine as appropriate, including shifting opening and closing times, encouraging telecommuting and coordinating with tenants on possible curfews. u Consider parking alternatives; for instance, employees could park off-site, shuttle to the building and have security personnel escort them inside. u Circulate security’s phone number so tenants and employees can call for any assistance. Photo: Adobe Stock.

Develop a Plan: Work with property management and security personnel to develop policies and procedures to prepare and respond to an incident. Determine when and how to implement additional protections and security, and when and how to initiate lockdown procedures. Specify a clear chain of command, including who within building management or ownership will make key decisions if necessary. Review Your Property: Perform an inventory of possible problems, including property and building access points, glass windows and any potential projectiles. Review all fencing and lighting. Also confirm the exact locations of the property line and any easements, as trespassing may end up being an important consideration. Work with Public Safety Authorities: Coordinate in advance with your local police department and other law enforcement groups. Increased interaction will lead to better communication, better planning and, ideally, better results. Involve law enforcement officials in your planning and drills. Offer your assistance; for instance, space can be offered to law enforcement to assist with their operations in the event of an incident. As is always a best practice, get to know public safety leaders now — an emergency is not the time to be making introductions. Prepare for a Possible Lockdown: Have emergency kits and supplies available should a situation occur where it’s not safe for employees to leave the property. Identify a safe refuge area away from windows that has a landline phone and cell phone coverage. Be Ready to Communicate: Develop a communications plan and confirm your list of employees, tenants and vendors so you can communicate to the right individuals. Test your system for communicating, which must be operable at any time of day. And discuss how any press inquiries will be handled. Practice the Plan: No matter how good your plans are, they won’t work if they’re not practiced. Hold tabletop exercises and physical rehearsals if possible, including building evacuations, with all employees, tenants and vendors; these can be held virtually for those who have not returned to work in the building. Review Insurance Policy: Some policies contain potentially relevant exclusions — including those relating to strikes, riots, and civil commotion. Policyholders and their advisors should review their policies to assess the extent to which this type of exclusion might apply.


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Architects Still In Demand As Economy Improves For the eighteenth consecutive month architecture firms reported increasing demand for design services in July, according to a new report today from The American Institute of Architects (AIA). The AIA Architecture Billings Index (ABI) score for July was 51.0. While this score is down from June’s score of 53.2, it still indicates stable business conditions for architecture firms (any score above 50 indicates an increase in billings from the prior month). Also in July, both the new project inquiries and design contracts indexes moderated from June but remained strong with scores of 56.1 and 52.9 respectively. “Despite architecture services employment recently surpassing pre-pandemic levels, the ABI score this month reflects the slowest growth since January, and marks the fourth straight month with a lower score than the previous month, indicating a slow-

ing trajectory in billings activity,” said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. “With a variety of economic storm clouds continuing to gather, we are likely looking at a period of slower growth going forward.” Key ABI highlights for July include: Regional averages: South (53.6); Midwest (52.2); West (51.7); Northeast (48.4) Sector index breakdown: multi-family residential (52.8); commercial/industrial (52.2); mixed practice (52.1); institutional (49.6) The regional and sector categories are calculated as a three-month moving average, whereas the national index, design contracts and inquiries are monthly numbers. Visit AIA’s website (www.aia.org) for more ABI information. Photo: Adobe Stock.


18 California Buildings • Q3 2022

Association News

Californians Win CMAA’s Industry Excellence Awards and whose consistent actions have made meaningful and The Construction Management Association of America extraordinary contributions to the advancement of the (CMAA) has given 2022 Industry Excellence Awards to six construction management profession. Californians. The program recognizes excellence in conMichael Courtney, Cypress Construction Management, struction management practice and honors companies and received the 2022 CMAA Distinguished Service Provider individuals each year based on merit. Award. This honor recognizes a Carla Collins, United service provider member whose Engineering Resources, Inc., consistent actions have made has received the 2022 CMAA meaningful/extraordinary Award for Diversity, Equity, and contributions to the advancement Inclusion. This award recognizes of the construction management a CMAA member with a demonprofession, such as mentoring, strated commitment to equity, advocating, promoting, and inclusion, social justice, commuselecting construction managenity, and social responsibility, ment professionals. and a record of acting on that Smita Yamgar, Capital Project commitment. Management, Inc., and Ashish Darrin Lambrigger, Port Rajmane, have both received the of Long Beach, has been hon2022 CMAA Distinguished Young ored with the 2022 CMAA Carla Collins, United Engineering Resources, Inc. won Professional Award. This award Distinguished Owner Award. This the CMAA Award for Diversity, Equity and Inclusion. recognizes and celebrates a fullaward recognizes an owner memtime professional for outstanding ber who understands the value of professional accomplishments and a commitment to the a professional construction manager on the job construction management industry early in their career. Dr. Farzad Shahbodaghlou, California State University Your commercial East Bay, has been awarded the 2022 CMAA Mark Hasso IPM/Green/LEED specialists Educator of the Year honor. This recognition emphasizes excellence in teaching and recognizes a full-time educator for outstanding professional accomplishments and a commitment to construction management education. Ida A. Clair, California State Architect, has received the 2022 CMAA Leader in Environmental Stewardship Serving commercial property Award. This honor recognizes individuals, teams, or orgamanagers throughout the nizations, for outstanding leadership in innovation or best Greater Bay Area...since 1930 practices in guiding and aiding owners as they seek to NPMA GreenPro Certified define and meet their objectives for environmental stewardship throughout a project’s life cycle. “Each of our award winners work hard to make a difference, and we commend each of them for their achievements and contributions to the construction industry,” states CMAA President and CEO Andrea S. Rutledge. CMAA will honor its award winners during the organization’s in-person conference, CMAA2022, October 9-11, 2022, in San Diego, Calif. Visit www.cmaanet.org/ cmaa2022 for more information. 415-922-1666 • 510-536-1222 CMAA provides professional development, certifica408-295-3333 • 800-592-7777 tion, advocacy, and business opportunities to its members and the entire construction management industry. For www.cranepestcontrol.com more information, visit www.cmaanet.org.

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20 California Buildings • Q3 2022

Decarbonizing Construction Makes Huge Green Impact By Kathleen Hetrick

T

here are many pieces in the news about the perils and promises of remote working. Sometimes they seem interchangeable. The same is true for predicting the demise of the commercial building sector, or its new dawn. Regardless of the volatility of the market, one thing is true. The post-pandemic construction sector is absolutely essential in our collective hope to meet the greatest challenge of our time: climate change. The Inflation Reduction Act (IRA) caught all but the most savvy political insiders by surprise. For climate advocates, it’s mostly good news, unless you are stringent environmental justice fan nervous about some of the concessions to the fossil fuel industry. Regardless of how optimistic it makes you feel, it predominantly focused on the power and transportation sector. But America can walk and chew bubble gum at the same time. If renewed public investment will push for innovation in our cleaning our grid and our commutes, we need the creativity, design ethos and tenacity of the construction sector to rise up and address the remaining 20% carbon reduction we lost in the shuffle between the final language

of the IRA and Build Back Better Act (BBB). That represents an investment of $186 billion. Just Los Angeles, Houston, NYC and Chicago alone will see $500 billion in construction by 2030. Predicting how much of that will be Class A office space, versus affordable residential (please), new schools, accessible, green open space (pretty please), crucial infrastructure improvements, fast food restaurants, immersive Tiktok installations or something new altogether should be left to the fancy degrees of the Big 5 consultancies.

Consultants, builders, designers and engineers have not yet come to terms with the public health and environmental consequences of the supply chains we rely on, and we continue to overlook the dual threat of public health and climate change on environmental justice communities. The buildings that form our city (and rural) fabrics on cannot be considered truly sustainable until public health and environmental outcomes are improved across a project’s entire life cycle. We can and we must innovate for bio-based materials to replace our reliance on petrochemical

"As an engineer I can tell you that the decarbonization of our supply chain and attacking embodied carbon allows every building, no matter the program, to make an outsized impact on communities and our climate commitments."

As an engineer I can tell you that the decarbonization of our supply chain and attacking embodied carbon allows every building, no matter the program, to make an outsized impact on communities and our climate commitments. By advocating for more regional supply chains and investing in lower carbon steel, concrete, glass, aluminium and insulation, we unlock improved air quality, reduced cancer rates, cleaner ports, better jobs, and stronger communities. We need California to drive this innovation, just as we did with the Buy Clean Act. But we most go beyond our municipal buildings, no matter how green. To get to the 50% or more carbon reduction we need by 2030, we need everyone in.

products. We can and we must electrify our construction equipment, utilize sustainable aviation fuel (SAF) and require renewable diesel to lower our A4 and A5 emissions. We can and we must fight for industrial decarbonization processes that invest in environmental justice communities first and foremost. We can and we must procure materials from manufacturers committed making occupational cancer and forced labour a relic of the past. We can and we must cease building solely for unchecked growth and focus on building for best-use: investing heavily in zero-waste construction and adaptive reuse. This is a fight that will take everyone from our corporate clients, (Continued on page 30)


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22 California Buildings • Q3 2022

New Projects Old Westside LA Macy’s Converted to Mixed-Use Facility HLW, on behalf of GPI Companies and in partnership with Del Amo Construction, just completed a $180 million total adaptive reuse project of the former Westside Pavilion Macy's department store in West Los Angeles. Located at the intersection of West Pico Boulevard and Overland Avenue, the mixed-use development repurposes approximately 240,000 square feet of shuttered retail space into an open, creative office campus with a host of new commercial leasing opportunities. The project serves as an exemplary adaptation of old retail assets to meet the evolving needs of today. “Adaptive reuse of the former Westside Pavilion Macy's preserves an urban fabric that a generation of Angelenos associate with the memories of time spent with family and friends at the mall,” said Sejal Sonani, principal and managing director at HLW, which provided architecture, interior design, and landscape architecture services for the project. She continues, “West End is also an impressive case study on repurposing underperforming and abandoned malls throughout the country. HLW is elated to have provided this new space to the thriving urban community of West LA.” Photo credit: ©Fotoworks/Benny Chan.

The transformative redevelopment of West End began in late 2016—in conjunction with the site's purchase by GPI Companies — and became the catalyst for the repositioning of the balance of the former Westside Pavilion into a 584,000-square-foot Google office campus. Together with West End, the development creates a new transit-oriented job center near the Westwood/ Rancho Park Expo light rail station. HLW worked closely with GPI and Del Amo Construction to convert the former department store into a modern creative office campus.

New San Diego Classrooms Better Guide Students “We believe that physical environment has a huge impact on students, says Ramiro Losada-Amor, who worked with Architects Mosher Drew to build news classrooms and a music building for Mira Mesa High School in San Diego. The American Institute of Architects-award winning project “provides a multi-environment and dynamic learning setting to reinforce flexibility, dynamic learning, team collaboration, and ‘learn by doing’,” he says. “Teachers assume a role of ‘advisor’ or ‘guide’ to facilitate students’ efforts to research information and create their own knowledge base. Beyond the buildings already built, right now we are working on the Phase II with the San Diego Unified District to create more outdoor learning “pods” and other outdoor area to create spontaneous socialization for the students and faculty. This is important and even more now navigating COVID dynamics.” He says, “Traditional K-12 education buildings have created partitioned structures that promote a single lecturer instruction style, resulting in primarily isolated classrooms with isolated students and stationary teaching. However, current teaching pedagogy is the opposite. The new classrooms for Mira Mesa High School will extend the classroom walls by combining three distinct instructional spaces to create a Photo credit: Costea Photography Inc.

diverse ‘collaborative nucleus’ for flexible teaching. The design offers standardized interior classrooms for traditional needs, and merges with shared patios and outdoor teaching clusters to promote physical and visual connections to create unique learning experiences. This model allows interior classrooms to be fluidly interactive with an adjacent classroom, patio, and outdoor teaching cluster; or each can be partitioned into separate break-out type spaces. The ‘collaborative nucleus’ structure is aligned with other similar structures, enclosing a central landscaped area where the teaching clusters are located. This flexible architectural model reinforces diversity in learning while promoting the physiological and psychological benefits of connectivity to nature.”


23 California Buildings • Q3 2022

New Senior Living Facility Opens in SF Designed to exceed its residents’ expectations with customized services created to elevate everyday life, Coterie is now open on Cathedral Hill in San Francisco, followed by Hudson Yards, NYC, and major metropolitan cities across the country. Through these properties, Coterie expects to create more than 350 jobs within the next year as part of the brand’s debut. (For more information visit CoterieSeniorLiving.com.) Coterie is a modern luxury senior living brand that offers residents world-class amenities and care in prime cities across the country. A visionary collaboration between two industry leaders, Atria Senior Living and Related Companies, Coterie believes that aging is worth celebrating. As a forward-thinking brand, Coterie strives to reshape and recast an entire

industry with stunning architecture, thoughtful interior design, elevated culinary experiences, and tailored wellness programs that allow residents to thrive.

Photo courtesy of Coterie.

Duke Realty Industry’s First Smart Building in Southern California Company Invests in Energy Efficiency, Automation and Data Tracking Features Duke Realty Corporation, a leading domestic only, pureplay logistics property REIT (Real Estate Investment Trust), announced the completion of the industry’s first Smart Building. The Smart Building program allows tenants to incorporate intelligent and sustainable features in the development design process. The completed building, a 529,866-square-foot at 13131 Los Angeles Street in Irwindale, California, has a building automation system (BAS), smart metering system, solar panels and high-efficiency air conditioning units. This new Smart Building will reduce greenhouse gas emissions by 800,000 kg CO2e (carbon dioxide equivalent) per year when compared to an air-conditioned warehouse powered by traditional electrical energy sources. “Duke Realty has been an industry leader in sustainable building practices and our pledge to achieving carbon neutrality,” said Megan Basore, Duke Realty’s vice president of Corporate Responsibility. “This first of its kind facility proves our commitment and allows us to work closely with our customers to limit our impact on the communities we serve.” Smart Building features include: w BAS allows tenants to access and operate the temperature controls in the office and lighting throughout the building remotely. Photo courtesy of Duke Realty, ©AirViews.com

w The smart metering system helps collect energy consump-

tion and power quality information from the lighting and mechanical systems. w Dock sensing devices collect data on dock operations including loading and unloading times, truck positioning, dock locking safety and weight of loads going in and out of the facility. w LED lighting monitoring sensors not only monitor building lighting use but can determine when daylight can supplement internal lighting, adjusting for brightness and helping to limit and optimize energy use. w Solar panels allow for the reuse of solar energy at optimal times to reduce peak energy demand charges and operational expenses. w Warehouse insulation and air flow solutions such as industrial fans and gravity vents minimize the need for external cooling and heating and improve the air quality. w Employee focused amenities such as food truck outlets and a garden were incorporated to provide healthy and safe work environments. Duke Realty’s Smart Building was designed by an in-house committee comprised of Duke Realty associates from various departments including construction, leasing and development, property management and financial services.


24 California Buildings • Q3 2022

Watering California Landscapes (Continued from page 14) if you have one. Minimizing turf, replacing them with native grasses or low water groundcovers, and finding different ways of providing a functional space embracing the beauty of large campuses strike a balance between how the space is utilized and the ongoing drought.

Irrigation Metropolitan Water District of Southern California has declared a water shortage emergency, cutting outdoor watering to one day a week. Balancing soil moisture content sensors, using graywater, and integrating with the efficient automatic irrigation system are ways to act sustainably and effectively reduce water use. Manually irrigated systems should be monitored and adjusted according to the needs to avoid overwatering. Surface runoffs can be avoided by decreasing the overspray into the hardscape. Using recycled graywater to irrigate landscapes will reduce the cost of potable water.

Moving Forward With many urban infill-type projects quickly underway throughout California, there is an

added layer of adaptability. Whatever the design of the building, the landscape must reflect it—or juxtapose it— depending on the design intent. The more we implement drought tolerant and California native plant species, the more significant the impact we can have in reducing water consumption. Working with what California has to offer us, we can not only fight the drought but create landscapes that will thrive. n Balachandran is a senior associate and Crowell is a junior associate at McCullough Landscape Architecture, Inc. in San Diego.

California Businesses Save Water (Continued from page 15) outlines priority actions for transforming water management, stretching existing water supplies and developing new sources to replenish water supplies lost to an era of rising temperatures. With California bracing for another dry year, state and local water agencies are working together with Tribes, non-governmental organizations and leaders in the commercial, industrial and institutional sectors to advance water smart projects and improve water use efficiency in all of our communities. Collaboration among all sectors is key to adapt in order to help save enough water supply that meets current and future needs. Save Our Water, the state’s public education campaign under the California Department of Water Resources (DWR), is spreading the word about water conservation and providing tips and resources to cut back on water usage. Building managers and owners are encouraged to examine existing systems and incorporate water saving actions that will have a direct impact on the extreme drought conditions throughout our state: Replace conventional and non-functional turf. Change non-functional turf to drought tolerant landscaping. Landscape with water-wise plants. Incorporating water wise and native plants into landscaping designs can save a lot of water and are often low maintenance. Check with your local water agency to learn which plants are drought tolerant and native to your area.

Install water efficient fixtures in restrooms, kitchens and showering areas. Replacing commercial and industrial toilets, urinals, faucets and showerheads with high water efficient models is a great way to save water. Educate clients, customers and employees about the importance of conserving water. Using your communication networks to spread the word about water conservation is an easy and simple way to raise awareness around the extreme drought in California. Check with your local water agency for information on available rebates, incentives and other programs to support water efficient upgrades, and keep an eye out for upcoming programs and financial assistance to help with turf replacement and other conservation efforts. The state has allocated funding to the Department of Water Resources to support local efforts that enable Californians to act now on water savings retrofits at your buildings and businesses. More information about state drought response and assistance resources can be found at water.ca.gov. Significant water savings depend on more than one source contributing. Together, we can change how we use and value water to help make a big impact toward conservation. Through collective action we can shape what water conservation means for our state and our communities in order to have a reliable water supply for our future. n


25 California Buildings • Q3 2022

IFMA Q&A (Continued from page 10) For anyone looking for the ideal FM position or candidate, we also offer the IFMA JobNet, which is the best place to find or post current opportunities in facility management. Q: Given the massive impact of the ongoing pandemic, do you perceive the need for altered workplace design? New types of products? A: For some industries, the workplace changed very little. But for the knowledge workers, workplace has been a focus area. After two years of remote work, they have shared that they want their office to be as comfortable and safe as their homes... which means workplaces are undergoing an important redesign. And while there are many ideas of what “Space planning, sensors/people counters, leveraging technology to have better impact can or should be done, it is FMs who on facilities; hybrid work schedules, collaborative spaces vs. private offices, appropriare playing a vital role in rethinking ate-sized real estate footprint—are all part of the conversation leading to decisions how to best use the workspace. that need to be made—and FMs will actively participate in making a reality.” Space planning, sensors/people counters, leveraging technology to tenants. But there is a bigger picture at (i.e. buses, office buildings, etc.). So, have better impact on facilities; hybrid work: rather than look at IAQ while elevators present a risk factor work schedules, collaborative spaces measures strictly as an expense, for exposure, the short time of the vs. private offices, appropriate-sized building owners and occupants should average ride combined with mitigation real estate footprint—are all part of instead view them as an investment techniques such as proper airflow in the conversation leading to decisions in long term health and safety where elevators and exercising good hygiene that need to be made— and FMs will the investment pays off in improved practices, the risk of exposure is lower actively participate in making a reality. health and productivity. than many other daily activities. We are working to balance the Elevators are continuing to evolve What are your major goals for IFMA needs of the worker with those of the and will likely continue to incorpogoing forward? organization to achieve the best overrate anti-viral features such as coated A: I believe success flows along lines all outcome. touchpoints and improved ventilation of relationships. My goal as IFMA Q: Do you think that building owners systems. The elevator industry is also Chair is to continue to develop and will incur the expense of higher advancing digital sensors and coordideepen the FM community and performing indoor air quality (IAQ) to nating apps to make riding on an eleconnectivity. This is to not only make buildings safer for occupants? vator a seamless no touch experience. bolster the profession but to enable Are elevators likely to need anti-viral IFMA corporate sustaining partner individuals to forge connections and features in the future? OTIS found in a three-month study leverage relationships globally to A: Owners will incur the expense and that the relative exposure risk in modultimately help creatively solve may look to offset the costs through ern elevators is lower compared with problems, providing more long-term more prudent FM measures, passing many other common spaces viable solutions in our connected along additional costs allowable to community. n Gilmer is also vice president and chief operating officer of Santa Rosa, CA-based Facility Engineering Associates. P.C. Photo: Adobe Stock.


26 California Buildings • Q3 2022

Industry News

California Commercial Real Estate Slowing, But Future Looks Better California commercial real estate executives are future, particularly among younger workers. Multi-family “cautious” about the next 12 months but are “more optihousing close to employment centers and transportation mistic on all fronts about the coming three years,” accordcorridors is also attractive for many whose alternative ing to the Summer 2022 Allen Matkins / UCLA Anderson would be long commutes from the outlying suburbs even Forecast California Commercial Real Estate Survey. if such a commute were to be only a few times per week.” A report of the survey says, “Industrial markets, which Pessimism Continues for the Office Sector have perennially experienced very low vacancy rates, “Optimism about the office market through 2024 has remain poised...for a good run of new building and superinow turned to pessimism about the same market through or returns. Multifamily housing has rapidly bounced back 2025 in Southern from a ‘falling-rent’ hiatus California and a more and is also in for a run of neutral view in Northern “The pandemic continues new project development. California,” the report to affect each market sector Retail markets are showsays. “What is clear is in different ways. While some ing signs of a new growth that the increased uncercontinue to thrive, such as cycle. The only negative tainty about near term industrial and multi-family, others, news in the latest survey economic prospects has like office and retail, will need more is that a turn in both retail led to a more cautious time to determine their trajectories.” and office markets may view of summer 2022 take longer than previousinvestment in office space. ly predicted. This would Is this a temporary hiatus be a direct consequence in activity for some? That of continued waves of the is the open question raised pandemic and a much by the survey. In Northern more uncertain economic California, 3/4 of the and geopolitical environment than six months ago.” panelists are now forecasting that by 2025 demand will Allen Matkins Partner John Tipton adds, “The pandemic have grown at least as fast as supply. continues to affect each market sector in different ways. “The sole exception is the Sacramento market where While some continue to thrive, such as industrial and there is a high dependence on the demand for space by multi-family, others, like office and retail, will need more state government. Even though the state general fund is time to determine their trajectories.” in surplus, cost saving measures and tele-work by a signif-

Multifamily Prospects Bullish

The report says, “Despite the pandemic-induced demand for homes in the suburbs and a continued work-from-home culture, our multi-family panels remain bullish about the coming three years. In every market, including the pandemic work-from-home hit San Francisco market, there are forecasts for both rental rates increasing faster than the rate of inflation and vacancy rates falling between today and 2025. “Although the continued arrival of waves of the pandemic delayed some return to the office, the reopening of city amenities and the creative and social value derived from urban experiences are attractors that are expected to induce increased density in multi-family living in the near Photo: Adobe Stock.

icant number of state employees has resulted in more than 20 government office leases not being renewed. For the Bay Area, the panels are forecasting rental rates to remain soft, if not deteriorate, but occupancy rates to continue to improve. For the three Bay Area markets, the composite measure of sentiment has remained slightly optimistic though there are not yet plans in place to increase the rate of office development. “The office market may not be back in Northern California just yet, but office development is projected to be increasing by the end of 2025. In Southern California, the panelists’ views are less pessimistic, the report continued and adds, The sentiment index moved from positive to negative territory for each of the four markets surveyed.” (Continued on the next page)


27 California Buildings • Q3 2022

JLL Offers Hybrid Workplace Advice In its “Better Hybrid Workplace” guide Jones Lang LaSalle says, “New expectations are transforming the purpose of the office.” “As the hybrid workplace becomes the norm, your role will move away from traditional CRE duties, as will the metrics you monitor and use. Distributed workforces and ebbs and flows in occupancy—hallmarks of the hybrid workplace—will require digitization and automation tools that support them. "Remote work will intensify the need for human connection, and you’ll be part of creating engaging spaces and improving the employee experience when workers are in the office. In a recent JLL survey, employees around the world revealed they now prioritize “soft benefits” like work-life balance, feeling engaged and connected to others, and having a sense of purpose in their jobs.

Reconfiguring office space

“As the hybrid workplace takes root, the purpose of the office will evolve. Workers won’t be in the office every workday; thus, the need for the office to boost productivity, stimulate innovation, and facilitate collaboration intensifies. People will expect the office experience to center around health and well-being, especially in light of the pandemic, which resulted in standards and protocols that may be permanent. “Working from home lacks essential elements of working in the office— elements we all took for granted before the pandemic, even in the least sophisticated of offices. Things like shared desks and densely populated individual workspaces are untenable now. The inherent benefits of in-office work, integral to the employee experience, will need to be amplified to make up for less time spent each week in the office, as well as the new purpose it serves.”

For a fuller explanation, visit: JLL Technologies | Real estate, facilities, and property tech.

California Commercial Real Estate (Continued from page 26) “Though this turn of events has slowed the return to the office there are signs that it is temporary. Some large public companies are putting into place plans to return their workforce to the office. Increasingly companies are seeing the value of officecentric work for establishing culture, creating loyalty, inducing creativity and the mentoring of young employees. Likely, the tools learned during the strict work-from-home episode of 2020 will

allow for more flexibility and less than full time in the office for many people. And the configuration of the office will surely be different post-pandemic. The implication of these factors is that there will ultimately be a need for new office development consisting of the remodeling of existing offices, the building of satellite offices to reduce employee commute times, and the creation of new mixeduse office complexes.” n


28 California Buildings • Q2 2022

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29 California Buildings • Q3 2022

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30 California Buildings • Q3 2022

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Decarbonizing Construction (Continued from page 20) academic collaborators, municipal leaders, design teams, contractors, marketing directors, manufacturers, truck drivers, construction workers, and everyone and anyone in between. Whether it’s your part of your Scope 1,2, or 3 carbon, your ILFI Zero Carbon Certification, your ESG goals, or your corporate mission statement, we all have the responsibility and we must all act now. With the passing of the Inflation Reduction Act (IRA), we can no longer blame political inertia and look the other way. As a sustainability engineer at Buro Happold, a Johns Hopkins University Bloomberg MPH Fellow, a USGBC-LA Board Member, and one of the found-

ing co-instigators of Carbon Leadership Forum – Los Angeles, I aim to do everything in my power to leverage the California construction industry’s access to capital, clout, innovation and talent to reengineer the way we build, not just for profit, but for people. We must capitalize on this to push for zero carbon buildings that tackle operational carbon, embodied carbon, environmental justice and public health. Now is the time for the construction industry and real estate sector, and maybe all of corporate America to stop setting goals and start achieving them. n Hetrick is a sustainability engineer at Buro Happold and a USGBC–LA Board Member.


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