Page 1

November/December 2016 • $5

Tenant Improvements Evolve...

A tenant just signed a lease. Now...how do you make the space work? World’s Best Property Manager?

California CRE: What’s in Future?

Building Software Drives Efficiency


Features 4

1st Lesson from Oakland Fire: Better Inspections

Top Futurist Sees CRE Changes

TI’s Evolve for Next-Gen Offices and Work Styles

Horrible tragedies like the Oakland Warehouse Fire that cost several dozen lives can become a cautionary tale for municipalities that learn the bitter lessons. That cluttered, unregulated firetrap warehouse is very far from being like the modern, safer commercial buildings that our magazine covers, but a good many working people still live and labor in buildings that are unsafe. Also, people work in a number of urban buildings that are far from optimal and are adjacent to well-regulated facilities. There will be much fault found as investigators and courts study the Oakland warehouse fire, but one remedial problem has already emerged: the City of Oakland does a poor job of inspecting buildings. “Budget constraints” are the excuse, but failure to fund inspections could cost the city immensely more in lost crippling lawsuits and business reputation—in addition to loss of citizens it must protect. Two years ago, the Alameda County civil grand jury found deficiencies in the Oakland Fire Department’s inspection bureau, saying the city wasn’t even trying to check a third of the 12,000 commercial properties that were supposed to be examined every year, according to an investigative report in the San Francisco Chronicle. This penny-wise, dollar-foolish budget policy is a lesson for other cities.

Election Impact on Buildings Sector? Mixed Reviews Some sectors of the greater commercial buildings community see the election of CRE developer Donald Trump as a boon to commercial real estate and the groups that design, construct and operate commercial buildings. Others are recoiling inasmuch as the Republican is objectionable to their ideology on many grounds. Even the building trade unions, which are usually Democratic, appear to benefit from Trump’s intention to launch a vast infrastructure and buildings program, fulfilling his jobs promises. Says Brian Turmail, senior executive director, public affairs, of the Associated General Contractors of America, “We look forward to working with President-elect Trump and the new Congress to roll back costly and unnecessary regulatory burdens that have undermined economic growth. We look forward to working with them to enact pro-growth tax reforms. And we are eager to work with the executive and legislative branch to advance new infrastructure investments” and finding the best ways to pay for them. Many architects were not happy, particularly in California. Many objected to the American Institute of Architects’ praise of the outcome right after the election. So strong were the protests that the AIA national office had to walk back its initial approval and offer a much more qualified endorsement. AIA San Francisco said: “The post-election statement issued by Robert Ivy, FAIA, of AIA National, (was) made without our input or knowledge, that purported to speak on behalf of its 89,000 members. As many of you have expressed to us over the past week, this message does not represent the view of our members, nor did it communicate the ethics or core values of the Institute. AIA National has since issued a video apology.”

— Henry Eason

10

World’s Best Property Manager Named by IREM

Building Controls Solutions

18

20

Multifamily Investments: Creative Ways to Add Revenue

Fixing CA’s Housing Gap

34

12

Building Associations News

Security Solutions Improve

22

6

26

Industry News

Cover images: Getty Images.

California Buildings News Team Henry Eason, Editor and Publisher henry@easoncom.com Ellen Eason, Co-Publisher ellen@easoncom.com Contributing Editors Zachary Brown, CBRE Bob Eaton, Eaton Hotel Investments Jessica Handy, CodeGreen Solutions Rich Lerner, Construction Consultant Katherine A. Mattes, Real Estate Consultant Larry Morgan, Facilities, SAP Steven Ring, Fulcrum Real Estate Development Carlos Santamaria, CEES-Advisors

Advertising Information Ellen Eason, ellen@easoncom.com 415.596.9466 © Copyright 2016 Eason Communications LLC PO Box 225234 San Francisco, CA 94122-5234

www.cabuildingsnews.com Copyright © 2016 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.


VARIDESK® IS THE HEIGHT-ADJUSTABLE STANDING DESK SOLUTION FOR ANY OFFICE SPACE. • Solutions for desktops, cubicles, or full-desk replacements • Special pricing for bulk orders available • Usually ships within 24 hours • All products require little or no assembly

Pricing and product availability are subjected to change. Taxes will be added for delivery into California, Texas, and Nevada. For patent and trademark information, visit VARIDESK.com/patents. ©2016 VARIDESK®. All Rights Reserved.

Order online or call 877-732-4530.


4 California Buildings News • November/December 2016

Top California Futurist Sees Dramatic Changes Affecting CRE “By 2025 “25%-to-30% of real estate firms in existence in 2015 will be gone via merger, acquisition, bankruptcy, retirement or inability to compete. This ‘exiting’ transformation will result in the emergence of the ‘Big Three’ within each asset class and service sector,” says Los Angeles-based renowned crystal ball gazer Chris Lee, president and CEO of CEL & Associates. “In the services sector, for example, CBRE and JLL have locked up two of the three spots. The battle over the next decade for the third spot will be among Cushman & Wakefield, Colliers International and, depending upon the strategies deployed, Newmark Grubb Knight Frank. Watch for Internet firms such as Google or Amazon to explore and perhaps acquire an ownership position in one or more major real estate services providers…changing the competitive landscape dramatically. Furthermore, the battle for who controls big data in the real estate industry will intensify over the next decade,” Lee continues. Further predictions from CEL & Associates “Strategic Advantage” e-newsletter: w “The real estate industry will enter a new growth cycle between 2023–2028 (the ‘Age of Globalization & Knowledge’) after the downturn preceding 2020. This new cycle will flourish and peak around 2028 (assuming the federal government or Federal Reserve doesn’t tinker with the inevitable). The primary drivers of this new growth cycle will be activities directly and indirectly related to life sciences, bioand nano-technology, generational shifts, relocation to urban and urbanadjacent markets, growth in artificial intelligence, robotics, micro-farming, alternative energy, STEM research, global unrest, cyber security and technology innovations. Not all markets will benefit from these transformative trends. The unfolding ‘Game of Gigabits’ will change many MSAs, creating distinct winners and losers.” w “Artificial intelligence, multi-sensory communication and robotics will render many jobs obsolete, creating a new wave of employment opportunities and requiring the commercial real estate sector to reinvest in progressive building designs, operating systems and tenant interface. By 2025, 10 million or more jobs will be lost to robotics. Over the next decade, many jobs will be ‘taskified,’ as the U.S. economy shifts to an uberization of human capital thus changing the nature and role of real estate service providers. Real estate companies must prepare today for a tomorrow when a ‘Property Manager’s’ role shifts to ‘Relationship,’ ‘Business’ or ‘Enterprise’ Director or Above: future trends. Adobe Stock. Inset: Chris Lee. perhaps ‘Asset Navigator’ and away from the current asset-centric titles such as Property or Facilities Manager. It would not be surprising to see many office buildings less than 250,000 sf in size being managed remotely. The first of many self-cleaning buildings will be a reality.” w “The U.S. will shift to a renter-based society as homeownership shifts to ‘homerentership.’ Watch for overall homeownership percentage to drop to the high 50s (currently around 63%). This will be great for the apartment sector, and bad for Boomers hoping to retire on proceeds from selling their home. (What Gen Xers or Millennials have the financial resources to buy those homes?) Watch for an increasing number of Baby Boomers, however, to downsize, move to walkable and transit-friendly communities, relocate to vibrant urban markets, incorporate ancillary income opportunities such as Airbnb, HomeAway and Onefinestay into their financial planning, and move to areas near college/university campuses, healthcare facilities and transit centers. Today, only 10% of Baby Boomers want to move to a retirement or age-restricted

Los Angeles Seer’s Predictions Will Impact Buildings’ Design and Operation

(Continued on page 32)


NEW

Connectrac 2.7 Under-Carpet Wireway

It’s so good at hiding cables you won’t believe your eyes. Introducing Our New Under-Carpet Wireway Available 2017 Connectrac ® wireways provide a proven power and IT alternative to expensive and disruptive core drilling, trenching and unsightly power poles. Our ultra-low profile wireway is so discreet it’s barely noticeable as it elegantly blends in to any environment while accommodating power and data.

Delivers Power + Data Patent Pending ®

Connect without core drilling 1.877.480.5637

connectrac.com/NeverCoreDrillAgain


6 California Buildings News • November/December 2016

Tenant Improvements Evolve A tenant just signed a new lease. Now…how do you make the space work best?

w

hen a tenant prepares to occupy a new space today, its facilities planning team faces many more decisions than it probably did when it signed its last lease years ago. In California, we’re living in a new workforce culture and a digital one, with greater sustainability requirements, IoT opportunities and challenges and— above all — the use of a working environment as a recruitment tool for best and brightest employees. Beyond pleasant amenities and ones that enhance productivity, everything from restroom facilities to indoor air quality matters. It’s no longer good enough to crowd in a bunch of folding tables and cheap chairs and put a coffee machine in the corner — though that is still done in some cases. The workplace of the future is multi-tasked with a number of objectives. Numerous companies are stepping up to help employers achieve these multiple goals. To make matters more complicated, there is no one model that works for every space. Jim Morgensen is vice president of global workplace services at LinkedIn, a company with workplaces that are innovative, creative and designed to harness the best from today’s workforce. Speaking recently at the Building Owners and Managers of San Francisco’s annual meeting, Morgensen said that no one office design is appropriate for LinkedIn’s many offices around the world. He said offices are open or contain more private “heads-down” spaces in configurations that suit various team functions: programmers, sales teams or management and finance workers. Further, he said employees seem to enjoy being able to work in offices that “celebrate” the local flavor of cities like Chicago, London, New York City or Mountain View. He said any type of a cookie-cutter design would likely reduce productivity if applied across the world. Tenant improvements (TI, as it is known Top photo: Comcast Silicon Valley Innovation Center in Sunnyvale in the business) are so important and more provides spaces where people can isolate themselves for deep thinking. complicated to design and implement these Architect: Blitz Architecture + Interiors. Photographer: Jasper Sanidad. days as costs are rising. Lower photo: The Pirch Headquarters Lounge provides casual meeting space. Photo courtesy of Hollander Design Group. Photographer: John Durant.


7 California Buildings News • November/December 2016

“The biggest impediment to the leasing market is the cost of construction of tenant improvements. It’s the single biggest issue on most of the transactions I am presently working on. Title 24 upgrades can add $10 to $20 to even 2nd generation remodels,” says CBRE broker Pirch Headquarters’ lobby provides gathering spaces. Photo courtesy of Hollander Design Group. Photographer: John Durant. Meade Boutwell, who has negotiatthe tenant improvement contractor is your partner in your ed some of the biggest deals in the Bay Area. “Solutions project. You should expect a team consisting of a project vary from work scope reduction to owners amortizing the manager, a project coordinator and a superintendent. You improvements at higher rents. We have seen an increase in should expect your contractor to be up to date on current demand for move in ready suites and subleases. The open codes. You should expect your project site to be clean and a plan layout is extremely adaptable to today’s occupier base. safe work environment. Both tech and traditional users are looking for more open “You should expect weekly meetings followed by detailed work environments, which brings a very high turn value meeting minutes with action items for every team player. You to these types of layouts. should expect a professional approach when problems arise “As with all open plans, the balance between productivand for them to be resolved quickly to everyone’s satisfaction. ity, density and privacy is still being sorted out based upon You should expect a short punch list and the completion of the task at hand needed by the work force on any given the list within a week. Finally, you should expect a detailed day. Look for innovation to continue to impact the work close out package with all the required releases and warranplace and how to balance collaboration vs. head down ties. You should expect no less!” work,” Boutwell continued. New Office Tech Some practical considerations from Lisa Vogel, vice What makes a modern office most effective is, of course, president of Rialto Capital in San Francisco, “What size its embedded technology, ranging from lighting to commuspace do you really need? Proper programming is critinications and controls. But one of the least glamorous but cal, ensuring you are leasing only the space you need. For most essential ingredients to a higher-tech office is its example, does the tenant need a coat closet, storage room, connectivity. Where do you put all those wires and cables? large huddle room, large reception or IT room? That’s where a company like Connectrac comes in. With “What type of space do you want? Open ceiling, conthe growing needs of technology, access to power and data crete floors, large open kitchen and an all-hands-on-deck is paramount in the modern office. Today’s workspace area (this costs more than traditional build out). Do you needs to provide those capabilities while maintaining an need a traditional build-out—possibly cheaper if former elegant and comfortable atmosphere. Connectrac Wireways tenant improvements are already in place, and you can allows tenants to have all of the access they need and the avoid Title 24 costs. For HVAC/sustainability, know in aesthetic they desire in their workspace. The In-Carpet and advance if supplemental cooling for IT room is needed. On-Floor wireways come with a quick and simple installaCan the building support a LEED build-out and is the tion, and do not require any sawing or cutting into a floor’s building LEED Certified?” foundation like core drilling and trenching. Additionally, Choosing the right contractor is crucial. Says San Diego’s the wireways are reusable, enabling tenants to move or Jim Dowling of Dowling Construction, Inc., “From the reconfigure any cabling they need as their workspace grows design stage— working with the space planner to value and evolves. engineer your project to a detailed close out package — (Continued on page 38)


8

Sponsored Report

California Buildings News

New Year’s Resolution: Manage a Profitable Building Does your business have a new year’s resolution? With 2017 coming, resolve to make your building more profitable with tenant improvements (TI) that are time and cost efficient. Here are 5 tips for a more profitable building: 1

Demountable walls

Thanks to their ease of installation and configurability, demountable walls—like those by Maars Living Walls—speed up TI, saving time in the schedule, thereby saving money. Offering more design flexibility, they can be easily re-used when reconfiguring space for a new tenant. It’s more affordable to move demountable walls than to tear down and rebuild drywall. 2

Modular power

Fast and cost effective, a modular plug and play power solution like that offered by Communications Integrators Inc. (Cii) can save up to 75% on labor. Because Cii’s power comes pre-configured and pre-provisioned, it’s a quick installation, meaning less rent lost (due to electrical TI improvements). 3

Under floor air distribution (UFAD)

Using UFAD systems like Airfixture’s will improve TI by maximizing value and flexibility. You’ll see a reduction of materials, time and expense—not to mention improved ventilation efficiency and air quality. If using modular power with this HVAC, both are easier to move when installed under a raised floor (if space is limited, install both above ceiling).

Electricity-saving lighting controls

4

Deploy modular lighting controls that flex with your walls and modular power. The Cii ReVolt Control combines power and lighting control into one easy, configurable system, saving up to 25% on energy costs. Its modularity allows you to snap it together, saving on initial labor and TI labor. Optimize energy usage by dimming lights as sun intensity increases, darkening spaces when vacant and cutting outlet power to reduce phantom power draw. 5

Hot air hand dryers in restrooms

This isn’t TI-related, but it’s a money-saver: $18,000 a year on materials and labor in a 10-floor building. Hot air hand dryers eliminate paper, trash bags and labor—believe it or not, each towel is “touched” six times by staff: 1) Order towel, 2) Put into inventory, 3) Move onto cart, 4) Move from cart to dispenser, 5) Restroom trash to main trash, and 6) Main trash to dumpster (see illustration to the right). Here’s to a money- and time-saving 2017! For more info, please visit www.ciinet.com/revolt-control


Touch-Free Systems Automated Washroom Solutions Reliable, touch-free solutions that help reduce cross-contamination and the spread of germs.

Microburst® Programmable Air Care System

AutoFoam Available 2017

Touch-Free Skin Care System

AutoJanitor AutoClean Surface Care Systems

AutoFaucet Touch-Free Faucet System

AutoFlush

Touch-Free Flushing System

PROMOTE HEALTH & WELLNESS

OneShot

Touch-Free Skin Care System

©2016 Rubbermaid Commercial Products LLC | 3124 Valley Avenue, Winchester, VA 22601

rubbermaidcommercial.com


10 California Buildings News • November/December 2016

Is Rita Hernandez the World’s Best Property Manager? The Institute for Real Estate Management Thinks So

Q&A with Rita Hernandez IREM’s “Certified Property Manager® of the Year” and Brickman General Manager, San Francisco Rita Hernandez in her building’s lounge. The space’s comfortable seating, free Wi-Fi and large operable bay windows create a great getaway for tenants.

“Events that I attend help me gain new sources of talent, vendors and management innovations.”

Q

The many challenges of being a commercial property manager today seem overwhelming, with buildings becoming more complicated than ever to operate, greater numbers of tenants crowding into spaces putting pressure on finite resources, concerns about security, talent shortages, services outsourcing, etc. How do you meet these challenges and continue to receive such high marks doing so?

A

A strong team is crucial. When directly hiring or speaking with a service vendor, I will interview the person and let them know my supportive management style, but I’m clear on the expectations from Day One. We have monthly luncheon staff meetings and discuss everything and anything they want to talk about — they are listened to. They are empowered with the information and support they need from me to do their job and I expect them to perform proactively. My team is the best, and

they are treated as such, with respect and bonuses. There are certainly very limited resources in this market. When necessary, I will utilize contractors/vendors outside my typical sphere. In addition, I network for my needs. My PM Neighborhood group (email list of PMs in FIDI), events that I attend, etc. also help me gain new sources of talent, vendors and management innovations. Talent shortage for sure! I have a part-time position in my office that’s turned into a training center for future PMs, and it is quite rewarding. I will be participating in the upcoming CCSF real estate career panel and will use that opportunity to seek out my new assistant!

Q

You are very involved in helping recruit, mentor and train young professionals. What are you telling young people to induce them to become property managers?


11 California Buildings News • November/December 2016

A

I tell them my story, how IREM reached out to me. My story is about working for a small company that allows me to make decisions, make mistakes, and be innovative. My work is diverse in its description so it’s interesting, not mundane. I wear many hats as I adapt to the needs of my owners, tenants and vendors. I made thoughtful career choices to be able to be with my young children and participate in IREM local and national committees where I get to learn from and befriend people that are smarter than me.

Q

How do you keep up with all the complexities of operating smarter buildings?

A

I go to all the events I can, some at my cost. We are in a technology revolution and it’s fascinating to hear what the next big thing is—I love change. Recently I met a security vendor at the IREM national conference that provides a comprehensive security system which includes access control, alarm monitoring, video management, remote concierge and emergency management services. The ability to use the smartphone for access and control is of interest to tenants and property managers. They are sending me a proposal.

Q

Describe some of the creative ways your building is using common areas to provide amenities to tenants?

A

I hold events in the lounge—Earth Day, Wellness, Health and Fitness. All events are tied to a non-profit partner. I honed my event planning skills when managing Ghirardelli Square. I also schedule monthly mandatory tenant meetings and provide an update on building activities and invite a guest speaker that focuses on a non-business topic. We are also close to signing on an operator for the lounge café, another amenity for tenants and their guests. The lounge has comfortable seating, free Wi-Fi, and large operable bay windows that create a great get-away for tenants.

Q What are some of the property management innova-

tions you see in California that might benefit other markets?

A

I think property management firms will start utilizing autonomous data machines (ADMs). ADMs are robots that gather data, provide video and audio feedback to augment your security program. But more than that, the data retrieved from these ADMs can be very valuable to property managers and assist with solving problems with less time, trouble and cost. Allied Universal Security is a service vendor of mine, who will be speaking at the next IREM

luncheon about this innovative and surprisingly inexpensive security service. Knightscope, the manufacturer, will bring a robot for a demonstration. Beta testing for ADMs is already in progress, and supply is not meeting the demand. Maybe there will be one at my building! Another innovation is drones, an issue discussed at an IREM luncheon this past February. Regulations for the utilization of unmanned aerial vehicles (UAVs) is working its way through legislation — the possibilities for managing expenses and possibly capturing revenue will be available to property owners.

Q

Congratulations on having recently been named this year’s “Certified Property Manager® of the Year” by the Institute for Real Estate Management. What goes into becoming recognized as the world’s best CPM?

A

REME stands for “Real Estate Management Excellence.” It is a quantitative review of the elements below: 1) Advancing the Industry — I created the IREM-SF Annual Diversity Luncheon Program which ran for (Continued on page 40)


12 California Buildings News • November/December 2016

Building Controls in the Palm of Your Hand Pull Out Your Smartphone, Make Changes to Your Space…or an Entire Building An ever-increasingly array of software is available to building occupants, often as easily accessible as thumbing your smartphone. For instance, myControl is a free smartphone app that embraces occupant-centric control in commercial buildings. Configured by a Reliable Controls authorized dealer, the myControl mobile app offers fully customized mobile interfaces to any Reliable Controls MACH-System. The myControl user interface provides individual personal control for occupants through accessible settings for occupancy, temperature, lighting, ventilation and more. Having personal access offers occupant-centric empowerment and accountability, as well as the potential for additional energy savings. It is available on both the Google Play Store and the Apple App Store, the myControl mobile app and comes in three different and convenient “views” and six different themes. Another approach is offered by California-headquartered engineering firm Glumac that lets tenants control fundamental occupancy features with a device called “G cloud,” including radiant cooling, HEPA filtered and ventilation air control, a white noise generator and circadian lighting. “When you sit down below the G cloud it automatically connects via Bluetooth with your phone and sets everything to your personal preferences. From an app on your phone you can revise the settings for temperature airflow Wyden level and white noise level. When you leave the workstation everything sets to minimum position after a predetermined time. G cloud is the first system of its kind to optimize performance in the open workstation environment and for individual offices and conference rooms,” says Glumac CEO Steve Straus. At left: The myControl user interface provides individual personal control for occupants through accessible settings for occupancy, temperature, lighting, ventilation and more. Image courtesy of Reliable Controls.


13 California Buildings News • November/December 2016

Indoor air quality is a major occupant concern, since bad air can not only reduce levels of productivity but also spread disease. Sensing bad air is one of the functions of a British company new to California that has devised an easy to install and monitor hand-held system. “Aura is an end-to-end IoT sensor network that enables businesses to conduct sophisticated measurement, monitoring and management of indoor environmental conditions and air quality,” says Drayton Technologies CEO Lord Drayson. “The mobile sensors (not hardwired), developed by Drayson Technologies, make it simple and easy to deploy in spaces of all sizes, with minimal or no hardware setup costs. Via a near real-time dashboard, Aura collects data and provides insights that drive efficiencies in utility costs, as well as the health, productivity and service levels of staff. Its data logs help meet compliance requirements by constantly monitoring an environment, saving staff time.”

Smartphones Transform Hotel Operations and Services Perhaps the greatest promise for how smartphones can transform a buildings’ operations is in the hotel field by placing check-in, check-out, room assignment, features and services in a guest’s hands. Software is aiding management in a number of ways. Spending for hotel IT has hit an all-time high in 2016, and experts are predicting that many of the systems that already have high adoption rates are also on schedule for an upgrade in the coming year. While much of the focus lies on new CRM and mobile solutions, it is easy to forget how a perfectly customized hotel stay can be easily spoiled. Be it due to category overbooking or last minute inventory changes, a hotel can quickly find itself unable to assign the best room for each guest.

A new technology on hoteliers’ radar is one that takes the guesswork out of room assignment. An automated room-allocation solution optimizes the room assignment for every guest — every time —with consistent efficiency.

to solve one of the most complex and multi-dimensional problems facing hotels, optimal room assignment. roomPulse reduces cost, increases guest satisfaction and revenue…. and makes a hospitality team’s life

Aura™ dashboard showing near real-time air quality or temperature mapped on the building’s floor plan (air quality measurement is CO in ppm). Image courtesy of Drayson Technologies.

Guests are assured of getting the most possible room features and preferences they requested during booking, while the hotel avoids inventory fragmentation, costly downgrades and unnecessary complimentary upgrades. “Often, more than half of a hotel’s guests are not checked in to their pre-assigned rooms,” said Pierre Boettner, hospitalityPulse CEO. “This may be due to overbooking situations, room’s housekeeping statuses, or competing last minute guest requests. Apart from the negative impact on repeat business and fidelity from guests who are unsatisfied with the rooms they receive, hotels with non-optimal room allocation face true costs of downgrades and of unnecessary and expensive complimentary upgrades. All of this should draw hoteliers’ attentions to the need for room allocation software and improved optimization in 2017.” The company also offers roomPulse, a solution, designed and engineered by hospitality technologists,

a little easier. Its companion product is PulseLink, an extension of roomPulse, is designed specifically to reduce the amount of time spent searching for rooms during check in. With over 50% of reservations not checked in to their pre-assigned rooms due to housekeeping status or last minute guest request, PulseLink provides the most optimal room available at the moment of check in directly within the PMS reservation screen.

Other New Automation and Software-Driven Products The recently passed California SB 7 bill mandates that all new construction, multifamily properties submeter their tenants for water. H2O Degree manufactures two-way wireless mesh submetering systems for tenant billing, leak detection utility conservation and building automation system integration in multifamily facilities. The company’s president, Don Millstein, says, “Our system’s monitoring and leak-detection reporting capabilities (Continued on page 14)


14 California Buildings News • November/December 2016

Building Controls (Continued from page 13) will allow owners to comply with California’s SB 7 for billing tenants, and to meet its unique requirements around leak detection.” The company’s monitoring results demonstrate how facilities are effectively cutting their water usage in half. (Read more about the new legislation on page 35.) Brain Corp’s EMMA (Enabling Mobile Machine Automation) is an intelligent A.I. technology that automates commercial-grade equipment, such as industrial floor care machines, or forklift trucks. Once the equipment is outfitted with our Brain Module, it turns the manually operated equipment into a self-driving robotic cleaner that can perform complex tasks, without direct operator control. NSS Enterprises is a manufacturer of industrial and

commercial cleaning solutions, which include automatic scrubbers, battery burnishers, carpet extractors, vacuums and floor machines. NSS introduced Brain Corp’s vision-based technology, called EMMA, to its customers, which range from cleaning contractors to facility management teams. “We are on the cusp of an automation revolution,” said Mark Bevington, president and owner of NSS Enterprises. “NSS Enterprises’ knowledge of commercial cleaning combined with Brain Corporation’s expertise in robotics will allow us to build an effective, affordable automation solution.” A global company headquartered in China, ICE develops specialized equipment for the industrial and commercial cleaning industry, with

distribution across the United States, Europe, and Asia. ICE USA is based in Holland, MI. This partnership will allow both Brain Corp and ICE to provide a pooling of breakthrough technologies including lithium ion batteries, and automated driverless technology, which includes selfdriving vehicles, to each of their respective customer bases. “We are excited to work with Brain Corp to incorporate their innovative technology, into our next generation product platform,” said Rob Glassmeyer, president of ICE USA. “We know that successful businesses demand high-performing systems and with our strategic partnership, we can offer a high-value, differentiating service seamlessly to our customers.”n

C

M

Y

CM

MY

CY

Specify H2O Degree Products to Help Your Multi-Family Properties Control Utility Costs Utility Submetering

Water Leak Detection

• Tenant Billing • Water & Energy Conservation • Water-Point of Use or Point of Entry • Electric, Gas, BTU • Compatible with Billing Companies

• Proactive Response to Water Leaks • Toilets, Showers, Sinks • Monitors Gallons, Events, Time • Daily Leak Reports Sent to Property Manager & Maintenance Staff • Identify Leaks in Vacant Apartments

Thermostat Control

Heat/Air-Conditioning BTU Monitoring

• Thermostat Controls for Heat & A.C Systems • Electric/Gas Heat • Hydronic Heat • Fan Coils • Owner Controls Set Points • Empower Tenant Control • Control Vacant Utility Costs

• Fan Coils-Hot Water/Chilled Water • Hydronic Base Board Fin Tube Heating • BTU Metering for Energy Conservation • BTU Metering for Tenant Billing

For details contact our local representative: (215) 788-8485 info@h2odegree.com

Northern California - Osborne Company • (925) 449-1700 Southern California- Keyline Sales • (562) 904-3911

Visit H2O Degree at www.H2ODegree.com

CMY

K


MACH-ProView

STATview

people and technology you can rely on. ™

SPACEview

LISTview

Celebrating thirty years of building automation excellence, Reliable Controls unveils the new MACH-ProView ™ controller. This freely programmable, combination BACnet® building controller (B-BC) and BACnet operator display (B-OD) resides on Ethernet, Power over Ethernet, Wi-Fi or EIA-485 networks. Backed by an industry-recognized 5 year warranty and a nation-wide network of certified Authorized Dealers, the new MACH-ProView will empower you to stay in touch with your building's performance.

www.reliablecontrols.com/MPV


16 California Buildings News • November/December 2016

IoT-Linked Buildings Software Wonderful…and Dangerous The benefits of using technology to improve commercial w Devices are “in the wild” and now part of the attack and industrial buildings’ performance is mind boggling, with surface. new products, processes and services coming online daily w Devices that were isolated before are now connected, as attempts are made to try to increase efficiency, reduce which considerably broadens the potential significance energy and generally of any security breach. improve the workplace w Fail-safe modes of experience. One statistic operation must be alone is dramatic: the assured for devices, Department of Energy even if they become estimated $400 billion isolated from communispent annually on cation with other parts energy in America’s of the environment. 6 million nonresidential The report, “IBM buildings—if reduced POINT OF VIEW: by only 10%—would INTERNET OF THINGS generate a saving of SECURITY,” is obtain$40 billion. There are able on the Web. It says billions of sensoring in part, “As the capabildevices—from simple ities of devices increase LED bulbs to sophistiand the information that cated analytical equipthese devices generate, ment—in commercial transmit, receive, buildings today, and process, and consume Devices that were isolated before are now connected. Image: Adobe Stock. that number is comalso increases, the pounding geometrically. importance of having But…and it’s a very big but…your building security systems, secure processing capabilities embedded in the devices also its tenants’ vital secrets and its vulnerability to terrorism increases. There is a need for devices to be able to prove can be heightened by the very global Internet connectivity their unique identity and use that identity in setting up that empowers it and makes buildings run better. Even the secure communications with partners, whether those are peer smallest Internet of Things device or sensor can be weapondevices or services running elsewhere in the environment.” ized to cause immense damage to your building and everything in it because of its connectivity to almost everything Types of connected devices that are else in the building that runs on the Internet. No one is suggesting that we rip out and refuse to install vulnerable to hacking include: the many miraculous benefits of software and IoT devices w IP-connected security systems that better regulate building operations. But awareness of w IP-connected infrastructure (HVAC systems and their potential downsides is growing…and the need to better smart meters) secure them. w Smart video conference technology (conference In its groundbreaking report last year on IoT security calls, online meetings, etc.) threats, IBM made the following suggestions: w Net-connected printers w Apply secure engineering principles to the design of w VOIP phones connected devices and the environments in which they operate. w LED lightbulbs with sensor devices on w Defense in depth—have multiple layers of defense in networks the solution.


17 California Buildings News • November/December 2016

Putting the power in your hands. Starline Plug-In Raceway gives you the power to meet the ever-changing needs of your facility by allowing you to easily expand, reconfigure or relocate power. The pre-assembled plug-in modules simply snap into place along the backplane of the raceway wherever a connection to power is required. With easy installation and reduced future maintenance costs, Plug-In Raceway is the perfect power solution for healthcare, education, industrial and retail facilities—or any building that requires power. To learn more, visit starlinepower.com/raceway.

Need a Generator Maintenance Company That Will Do it YOUR Way? Electro-Motion provides comprehensive emergency generator maintenance programs tailored to your exact needs as well as superior ongoing support for your operations. It’s what we’re known for. • Comprehensive Maintenance Programs based on NFPA 110 Standards • EGSA-certified Technicians • All Genset & ATS Makes and Models • Authorized Dealer/Service Center for GE/Zenith Transfer Switches • 2-Hour Maximum Emergency Response Time

For a no-obligation review of your emergency generator’s current program, call us now at 650-321-6169 or email us at contactus@electromotion.com

1001 O’Brien Drive, Menlo Park, CA • 650-321-6169 contactus@electromotion.com • www.electromotion.com


18 California Buildings News • November/December 2016

Association News

Southern California Recognizes Top Commercial Real Estate Leaders CoreNet’s 10th Annual REmmy Awards Event Rewards Excellence More than 300 top commercial real estate industry professionals came together Nov. 3 at the Beverly Hills Hotel to recognize leadership and innovation at the Southern California chapter of CoreNet Global’s REmmy Awards annual celebration — marking the 10th anniversary for the CRE industry’s awards program. The 2016 REmmy Award winners included: u Corporate Real Estate Executive/Team of the Year: First American Corporate Real Estate Team led by Elise Luckham, vice president, director of corporate real estate, First American, along with Cushman & Wakefield. u Young Leader of the Year: Anya Ostry, associate director, Cushman & Wakefield.

IFMA Credentials

The Silicon Valley Chapter of IFMA is offering exceptional local credential classes led by seasoned facility professionals

Facility Management Professional (FMP) March 9-10 Leadership & Strategy April 13-14 Finance and Business May 4-5 Operations & Maintenance June 8-9 Project Management Certified Facility Manager (CFM) September 6-8 Exam Preparation Sustainability Facility Professional (SFP) September 20-22 Part 1 October 11-13 Part 2

Register today! For more information or to register: www.ifmasv.org admin@ifmasv.org 408-226-0190

u Innovative Workplace (Less Than 50,000 SF)— Tangram Headquarters Renovation, Downtown Los Angeles team including: Tangram Interiors, MOZU and Holwick Constructors. The organization was tasked with updating its existing headquarters into a workspace that both provided a showroom for its numerous product and service offerings as well as a functional space. u Innovative Workplace (Greater Than 50,000 SF)— Edmunds.com Headquarters in Santa Monica, designed by M + M Creative Studio. The new 145,000-squarefoot space features highly collaborative, branded space for 600+ employees. Other team members recognized were lewis | schoeplein architects, Corporate Contractors and Travers Cresa. Frances Pawlak, business development manager, West Region, Allsteel, was also given a special award that recognized her contribution to REmmys as its founder 10 years ago. “This was an outstanding year, with 35 entries across all categories. The winners are all industry leaders who raise the bar for excellence. We are honored to be able to recognize their contributions to the corporate real estate community in Southern California,” said Scott Steuber, president, CoreNet Southern California, and principal, Avison Young. John Clement, president, VenturePoint Property, REmmys co-chair stated, “As this was the 10-year anniversary of the REmmys, it was especially rewarding to see this event exceed all past attendance and participation records.” The Southern California chapter of CoreNet Global is focused on advancing real estate knowledge, connecting people, and promoting personal excellence through programs focused on the needs of its 400 local members. For information about members, programs or sponsorship, contact www.sccorenet.org. Photo above, from left to right: Dennis Potts, DPPM; Elise Luckham, First American; Mike Nuby, Southern California Edison; John Clement, VenturePoint Property; Frances Pawlak, Allsteel; Jennifer Dryden Hess, Northern Trust; Todd Anderson, Newmark Grubb Knight Frank; Kathleen Neary, Herman Miller. Photo credit: Shani Barel-Desser.


19 California Buildings News • November/December 2016

USGBC’s Greenbuild Celebrates Banner Conference in LA Here are the highlights of the U.S. Green Building Council’s annual conference and expo at the Los Angeles Convention Center: w The formation of a new technology organization, arc, led by Scot Horst, incoming chief executive office of arc and current chief product officer of USGBC. Arc is a stateof-the-art platform that will allow any building to participate and immediately start measuring performance, make improvements and benchmark against itself. w Updates to the GRESB Green Bond Guidelines for the Real Estate Sector, which focuses specifically on real estate market participants originating or investing in green property bonds. The 2016 version of the GRESB Guidelines adds specific guidance for issuers and investors in green property bonds. w Green Business Certification Inc. (GBCI) and the Environmental Defense Fund (EDF) announced a strategic vision to work together to develop, deliver and promote the Investor Confidence Project (ICP) as the premier global underwriting standard for energy-efficiency projects. w Impact Infrastructure and Autodesk unveiled Autocase,

a new groundbreaking technology that quantifies the triple bottom line impacts of infrastructure projects. Autocase is a web-based tool that uses empirical evidence to inform strategic design decisions and potential impact on the finances and sustainability of LEED design strategies through a real-time cost-benefit analysis. w GBCI and the U.S. Zero Waste Business Council (USZWBC) are formally joining forces to advance zero waste business practices. USZWBC will be integrated into the global GBCI community that drives sustainability across all sectors. w USGBC and Bank of America Charitable Foundation also announced the five projects selected for the 2016 Affordable Green Neighborhoods (AGN) grant program. The AGN grant program provides funding and educational resources to developers of affordable housing who are pursuing LEED for Neighborhood Development certification. The projects selected are committed to creating affordable and sustainable communities.

IFMA-Silicon Valley Wins “Excellence” Award Embracing the mantra of “Learn, Connect, Advance,” the International Facility Management Association of Silicon Valley was awarded the Award of Excellence for Professional Development at the Annual World Workplace conference in San Diego in October. It was the third time in the past seven years that the chapter took this award for providing excellent educational and strategic opportunities to members to expand knowledge and develop their careers. The Professional Development Committee provided two monthly programs including evening chapter meetings and a mix of deep-dive breakfasts and lunch roundtables, recognized because Leaders of the award-winning FMA Silicon Valley Chapter. of a mix of topics in featuring best practices in facilities management (FM) as well as local and national trends that affect its members and their companies. In addition, the Education Committee provided local certification classes as well as scholarships for FMP, CFM and SFP designations to our members. Additional programs were also provided through our Young Facilities Professional and Mentoring programs. Chapter President Jim Zuiderhoek, said, “I couldn’t be more proud of the dedication and commitment of our many SV committee volunteers that allowed us to earn this prestigious award. Our chapter has also been focused on the future of FM to ensure there will be people who are trained to fill FM positions as baby boomer FMers retire. One of the outstanding accomplishments this past year was to help create a local pilot program offering of IFMA’s “Essentials of Facility Management” at De Anza Community College in Cupertino, a program that other colleges are interested in emulating.” The IFMA Silicon Valley Chapter has 540 members and is among 132 chapters globally.


20 California Buildings News • November/December 2016

Innovations Offer Better Building Violence Cannot Be Stopped‌ But Its Impact Can Be Reduced

From California to Florida and all in between, Americans have experienced violence in buildings, from terrorism to workplace violence. There is, of course, no way we can be assured it will never happen in our own building. So what can we do to lessen the chance or the impact of violence? Many companies are stepping up to provide countermeasure products and develop processes to better secure tenants. Robots offer a physical presence as a strong crime deterrent, real-time video and audio, and a user interface. Photo courtesy of Allied Universal.


21 California Buildings News • November/December 2016

Among those being introduced are better screening for those who enter buildings with video and sophisticated access control. Gunshot detection alarms that go off in police offices are appearing. Security assessments and training are important, too, coupled with lockdown and sheltering procedures and mass notifications. We are learning from tragedies, as well. Allied Universal is using “Machine as Service” robots. Steve Claton, Allied Universal’s southwest regional president, says these robots “offer a physical presence as a strong crime deterrent, real-time video and audio, and a user interface. Available through an agreement with Knightscope, the robots include the K5 model for outdoor use in such areas as parking lots and campuses, and the K3 design for indoor security at office towers, warehouses, distribution centers and data centers. “This is the next step in developing comprehensive security. Integrated security solutions should be designed to meet the needs of the specific location and can include a robust managed guarding solution, systems including cameras and access control, best practices and training, and robots. With the blending of technology and personnel, security programs are well positioned to help deter crime and create safer and more secure environments.” Pinkerton Vice President James McCain, says “Alerting system apps are gaining traction in workplaces as a way to directly notify employees if there is a situation like an active aggressor. Many employers and facilities management professionals are also utilizing panic buttons more frequently. These are usually set up at key locations, like a reception desk, break room, and primary entry and access points, so that employees can easily notify the proper channels if a situation occurs with the push of a button. “The key to successful protection of employees and tenants is partnership and collaboration. Building managers want to ensure they are providing a safe environment for their tenants, and tenants and their employees want to be reassured that potential issues will be investigated and dealt with quickly — sometimes in a confidential manner if needed. For facilities management professionals, bring all of the key stakeholders together — including HR, legal, building security, and tenants— to learn about potential concerns so they can be addressed in a comprehensive workplace violence protection program. “Training of the workforce is also key. Employees are the eyes and ears, and the old adage of “if you see something, say something” applies to the workplace as well. Train employees to be part of any robust safety and security program. Teach them what to be on the lookout for, and then how to escalate a potential issue should they see it occurring. Every organization’s culture is different. Some want issues brought to HR, others to management. Regardless of how an issue is escalated, employees need to be aware of the proper steps to take when a threatening or potentially dangerous issue arises.” One of the increasing number of innovative security product providers is Genetec, Inc. Its “Security Center is our unified security platform that blends IP security systems within a single intuitive interface to simplify security operations. From access control, video surveillance, and automatic license plate recognition to communications, intrusion, and analytics, Security Center empowers building developers, property managers and their tenants through enhanced situational awareness, unified command and control, and connectivity to the cloud,” says Jimmy Palatsoukas, the company’s product marketing manager. n

Security

(See page 42 for a building security tips checklist.)


22 California Buildings News • November/December 2016

Multifamily News

Creative Ways to Add Revenue to Multifamily Investments By Kathy Mattes the rent on a daily As it appears that the bubble we have been working in basis for every unit, for the past five-to-seven years may be losing steam, it is a based on the current good time to focus on “Strategies and Programs that Add supply and demand Revenue, Value and Drive Web Traffic,” which was the of similar units in topic of a recent conference in San Francisco, featuring the market. They Jaja Jackson with Airbnb and Darryl Glass with Advent also enable owners Properties. to understand the differences between comparable units to The Third Annual Northern California Apartment enable leasing agents to support their asking rents. Summit’s agenda included speakers from BayRock Advent Properties General Manager Darryl Glass Multifamily, AGI Avant, the Bascom Group, Emerald emphasized the Fund, AvalonBay and importance of hiring San Francisco Housing a professional with Development Corp., expertise in buildwho all detailed changing management and es in the industry, tenant relations. including an increase At Advent, Darryl has in tenant concessions, a been involved with possibly over-aggressive establishing new response to demand pricing models for for class A housing and units that distinguish whether an oversupply basic amenities from of housing is in our the more “optional” near future. amenities. For You would think example, in certain that with rents as high markets parking as they are right now, spaces are considered owners of multifamily Owners of multifamily housing are getting on the creative bandwagon to increase revenue in competitive times. Image: Adobe Stock. an essential amenity. housing should be celeHowever, in more urban brating. However, with markets, where public transit is readily available, fewer pressure in many cities to establish rent controls and the tenants own cars. As a result, apartments can be rented need to keep housing affordable in order to retain tenants without the parking, making parking optional at an and reduce turnover, landlords are looking for ways to additional cost. establish rent schedules that work for as many people While this approach is not surprising, think about using as possible. it for amenities such as laundry, food garden space, and One way is to stay more in touch with the changes access to pools and fitness centers. Creating a “basket of in rents in your market. YieldStar was mentioned as one amenities” with opt in/opt out alternatives can meet the of several software packages that enable owners to know needs of tenants in terms of keeping rents low, as well as exactly which properties in the local market are competproviding the amenities that some tenants demand and are itors and what rents are being achieved in comparable willing to pay for. units. Even small increases in total revenue are meaningful. Glass asked the question “How can I improve the YieldStar anticipates that use of their program can increase tenant experience to my benefit?” How about creating a revenue by 3-7%. They do that by enabling owners to set (Continued on next page)


23 California Buildings News • November/December 2016

We build these too...

www.NCCRC.org

Facebook.com/NCCRC

Twitter.com/NCCRC

(Continued from previous page)

workspace at the property to enable tenants to operate a small business from home? It could be within the unit, or it could be somewhere else in the project with a small usage fee. This helps to create the “stickiness” that landlords are seeking. Jaja Jackson, who is Airbnb’s global multifamily housing partnerships director, is currently working with building owners to expand its “Friendly Buildings Program.” To take words from the Airbnb website, this program “authorizes residents to home share in a way that is transparent, suits your terms, and provides extra income.” Based on information from NMHC.org, roughly 99% of tenant leases prohibit short-term rentals. When building owners sign up for this Friendly Buildings Program, Airbnb works with management to create the necessary lease amendments to allow tenants to home share under specific terms and conditions. Owners can select which units are

approved and set the rules for participation in the program. They modify insurance requirements, add safety and neighborly rules, address the use of parking and clarify the responsibilities of the tenant. It also provides for revenue sharing with the building owner. The revenue due to the building owner is distributed by Airbnb, just as it is to the tenant. Creativity is the source of success for many businesses. While real estate is not always considered a “creative” business, owners of multifamily housing are getting on the creative bandwagon to increase revenue in competitive times. Whether it is finding ways to share revenue with your tenant, or to create a menu of options for tenants to select from, the ultimate goal is to not just maximize rental revenue, but to retain tenants for longer periods of time, keeping up with their changing needs. n

Mattes is a real estate consultant and can be reached at www.kathymattes.com


24

Sponsored Report

California Buildings News

The Leader in Temporary Cooling/Heating Solutions

T

otal Environmental Management, Inc. is a HVAC rental company and an industry leader in temporary cooling and heating solutions. Since 1985, we have kept our clients happy by turning their temporary HVAC challenges into workable, affordable, solutions. TEM is fully staffed with experienced technicians for turnkey installation. We can respond quickly, whether it’s a pre-planned project or an emergency at 2 o’clock in the morning. Our full-time welding and fabrication shop can design, build, and implement for all temperature control opportunities. TEM can customize anything for your specific application. For example, our five full-time welders can design any customized headers, manifolds, and even build our own skids. We’ll work around the clock to meet your lead times and provide versatility that no one can beat. As a rental company that puts service first, we treat every job as a top priority, whether it requires a 1-ton spot cooler or 2,000 tons of chilled water. We’re serious about great customer service and work closely with you at every stage of your job.

Contact us to learn more about our services: 1415 N. Burton Place z Anaheim, CA 92806 z Phone: 800.876.0096 z www.temcool.com

Buildings People... Let’s Keep the Conversation Going! Join our LinkedIn Group: California Buildings News. We appreciate your feedback, as it gives us good story ideas and members of the group appreciate your thoughts.


25 California Buildings News • November/December 2016

Don’t miss this opportunity to discover new products and technologies, gain knowledge from industry experts, and share ideas with local facilities professionals who face the same challenges that you do – all for FREE!

March 15 & 16, 2017 Modesto Centre Plaza Modesto, CA

FACILITY SOLUTIONS TO HELP YOU SUCCEED For more information or to register, visit FacilitiesExpo.com To exhibit, contact Lisa Nagle, 800-827-8009 x4402, Lnagle@Facilitiesexpo.com

POWER SOLUTIONS TO KEEP YOUR SITE PRODUCTIVE AND PROFITABLE. With Peterson Power’s industry experts and factory trained technicians, we are your one-stop shop for all your power needs in Northern California, Oregon and Southern Washington. RENTAL Generators Air Compressors Temperature Control SERVICE & PARTS All Makes and Models NEW & USED ENGINES Tier 4 Efficient Cat Engines 24 HOUR EMERGENCY SERVICE

For more information or to speak with a representative call now: (888) 265-4114 or visit petersonpower.com

Keep Energy Costs Low When the Weather Gets Hot Reduce operating costs w Improve building controls w Get up to 100% of project costs paid w Earn LEED credits w

Act now to take advantage of 2016 incentive rates!

(855) 866-2205 • www.pge.com/autodr


26 California Buildings News • November/December 2016

Industry News

California’s Chronic Housing Gap Is Fixable, Says McKinsey McKinsey Global Institute Says 3.5 Million New Homes Possible by 2025 Remedies can be applied to California’s endemic housing shortage, one that McKinsey Global Institute’s economic model says is sapping $140 billion a year from a state which constitutes the world’s sixth largest economy and is costing residents more than $50 billion than they can afford. “Access to decent, affordable housing is so fundamental to the health and well-being of people and the smooth functioning of economies that it is embedded in the United Nations Universal Declaration of Human Rights. Yet in developing and advanced economies alike, cities struggle with the dual challenges of housing their poorest citizens and providing housing at a reasonable cost for middle-income households,” says the report. The report, called A tool kit to fix California’s housing gap: 3.5 million homes by 2025, looks at California and offers remedies for fixing its chronic housing shortage, using rigorous, fact-based analysis and presents a practical blueprint for how cities, state authorities, the private sector, and citizens can work together to unlock housing supply and ensure housing access. To understand the nature of the problem, McKinsey built a quantitative model to identify California’s housing affordability gap by household and location. It segmented the state’s more than 12 million households into 34 housing markets and 16 income bands and assessed each household’s ability to afford housing in its local market. It learned that 50 percent of California’s households cannot afford the cost of housing in their local market. (See graphic below.) Virtually

none of California’s low-income and very-low-income households can afford the local cost of housing. Its model also allowed it to generate detailed, local insights into who can and can’t afford housing, where they live, and how much they pay. For instance, the study revealed that the problem is both rural and urban: while metropolises such as Los Angeles and San Francisco suffer from high housing prices, so do rural communities such as Watsonville and Salinas, where 50 to 60 percent of households are unable to afford the cost of housing. The report also showed that high housing costs not only impact lowincome households, but also squeeze California’s middle class. In Anaheim, Long Beach, and Los Angeles, households earning up to 115 percent of area median income, or $69,800 per year, are unable to afford local housing costs. In the city of San Francisco, a household earning $140,000 per year, or 179 percent of area median income, is squeezed. In dollar terms, the study indicated that each year Californians pay $50 billion more for housing than they are able to afford. In total, California’s housing shortage costs the state more than $140 billion per year in lost economic output, including lost construction investment as well as foregone consumption of goods and services because Californians spend so much of their income on housing. After quantifying California’s affordability gap to understand the size and distribution of the problem, McKinsey analyzed land across the state, parcel by parcel,


27 California Buildings News • November/December 2016

to identify “housing hot spots” where large amounts of housing could be developed with attractive returns. McKinsey’s geospatial analytics team mapped cities such as Fresno, Los Angeles, San Francisco and counties such as Contra Costa, Sacramento, and San Bernardino to identify opportunities to build housing. The researchers identified physical capacity to add more than five million units in “housing hot spots.” (See graphic

above.) This is more than enough to close the state’s housing gap. More than a quarter million of these units could be built on urban land that is already zoned for multifamily development and is sitting vacant. Up to 3 million units could be built within a half-mile of high-frequency public-transit stations. More than 600,000 could be added by homeowners to existing single-family homes. n Graphics courtesy of McKinsey & Company.


28 California Buildings News • November/December 2016

Association News

No Surprise…Male Architects Get the Best Jobs and More Money But New AIASF Study Shows How the Income Gap May Be Closed Architects are still primarily white and male, are compensated better than women and minorities in the field and have more access to the people who can advance their careers. Those are some of the results of the American Institute of Architects, San Francisco’s (AIASF) Equity by Design Committee’s recently published survey that shows how careers in architecture differ by gender and race and the potential career dynamics that affect talent retention. The survey offers constructive insights into ways individual practitioners, employers and the industry can make changes that promote satisfying careers in architecture for women and men alike, improve employee retention, and, ultimately, improve companies’ bottom lines. “AIASF’s 2016 Equity in Architecture Survey early findings highlight the income disparities between men and women in architecture, and point to the work-life flexibility that the industry and its professionals need,” said Jennifer Jones, executive director of AIASF. “The results of the survey have generated significant conversation around the

satisfaction of architects and I look forward to the architectural community championing institutional change.” “I am proud to have AIASF leading the conversation on equity in architecture,” states Aaron Hyland, AIA, principal of CannonDesign and president of AIASF. “This year’s results add to an ongoing conversation for how we can improve the workplace for both women and men, ensuring retention and quality of life for those who shape our built environment.” The 2016 Survey, conducted between February 29 and April 1, 2016, resulted in the analysis of 8,664 completed responses to over 80 questions posed to architecture school graduates in the United States. The survey shows that women and people of color continue to lag behind white men in concrete measures of career success such as annual salary and likelihood of leading a firm. Male respondents’ perspectives on their careers were also more positive on average than those of their female counterparts. Female respondents were less likely to feel energized by their (Continued on page 40)

Join BOMA! Your passion, our purpose Our global community shares a passion for design, a conviction it matters and a commitment to improving lives through the built environment.

Your Opportunity to advance

Your Career and

Your Industry

Wherever you live, wherever you practice and wherever you are in your career, an AIA membership is a necessity.

Join us.

www.aiasandiego.org/membership

The Building Owners and Managers Association Silicon Valley 63 Metrowww.boma-sv.org Drive ▪ San Jose, CA 95110 408.453.7222 www.boma-sv.org


29 California Buildings News • November/December 2016

Outstanding LA Buildings Celebrated by BOMA

s

BOMA Greater Los Angeles recently bestowed TOBY (The Outstanding Building of the Year) awards to area buildings at its 31st Annual TOBY Awards Gala. Here are some of the award-winning properties. Over 1 Million Square Feet Award 1Cal Plaza • 300 South Grand Ave., Los Angeles Owner: Beacon Capitol Partners Management Co.: Jones Lang LaSalle Corporate Facility Award 151 El Camino • 151 S. El Camino Dr., Beverly Hills Owner: Kennedy Wilson Management Co.: Kennedy Wilson Partners

s s

s 250,000–499,999 Square Feet Award Maple Plaza • 364 N. Maple Dr., Beverly Hills Owner: Maple Plaza L.P. Management Co.: Tishman Speyer Properties L.P.

500,000– 1 Million Square Feet Award Fox Plaza • 2121 Ave. of the Stars, Los Angeles Owner: Irvine Company Management Co.: Irvine Company Photos provided by BOMA GLA on behalf of its member buildings.

Steinberg Architects Charrisse Johnston of LA Chairs ASID The American Society of Interior Designers (ASID) is pleased to announce the 2016-2017 ASID National Board of Directors. The 11-member volunteer board will be chaired by Charrisse Johnston, principal, Steinberg Architects with offices throughout California. The ASID National Board of Directors serves as the governing authority for the society and is responsible for advising and assisting ASID leadership, setting policy, and acting as representatives of the society’s 26,000+ membership. She is the firm-wide interior design practice leader at Steinberg Architects, with offices in Los Angeles, San Francisco, San Jose, California, and Shanghai. Johnston was previously senior associate and studio operations leader at Gensler where she managed and designed K-12, higher education, and workplace projects. Johnston is transforming Steinberg Architects’ approach to architectural interior design. Leveraging both her prior career in corporate strategic planning, and her creativity as a designer, she has helped shape numerous innovative interiors for corporate clients. Her two-prong methodology focuses on delivering elevated design solutions that truly address clients’ business goals, with the highest level of client service. Through this lens, Johnston has grown her team intentionally, taking on projects systematically and strategically in order to scale organically. The result of this focus is an interiors team designing both stand-alone projects, as well as the interiors for core-and-shell projects being produced in every office of the firm.


30 California Buildings News • November/December 2016

Association News

HR Crisis in Commercial Real Estate: A Triple Threat One California BOMA Develops a Solution to the Industry-Wide Problem By Marc Intermaggio It’s difficult to stay in business—let along grow your business when you can’t acquire the top-notch people you need to compete. Industry leaders from all quarters continue to experience difficulty finding new employees to fill open positions, from entry level to senior management, across all real estate disciplines. It’s a triple threat. We have more buildings being added to our communities, increased competition for employees from other industries, and many “boomers” retiring all at the same time. Commercial real estate’s talent drought is acute. The cost of attracting new employees is driven higher, and some new hires get handed responsibilities for which they are not yet adequately prepared. The Commercial Real Estate Alliance for Tomorrow’s Employees (CREATE) is working to solve this problem. An alliance of real estate associations has teamed up with San Francisco State University to promote career opportunities to motivated youth.

Students at SFSU’s College of Business are taught practical curriculum to train our industry’s future workforce. With seasoned industry leaders as instructors, students learn real estate fundamentals, business accounting and the core skills to succeed in various capacities within our industry. Please see www.createworkforce.org for details. Our unique public-private partnership includes job shadowing, building tours, mentoring, and paid internships at CRE companies. Please consider hosting a student intern to augment their classes with realworld experience, and please consider a donation. Your personal philanthropy, along with your company’s match, can help us to achieve our program expansion goals. Intermaggio is executive vice president of the Building Owners and Managers Association of San Francisco.

IREM Proudly Announces 2016 REME Awards Winners at Fall Conference in San Diego The cherry on top of the IREM® Fall Conference sundae was the announcement of the 2016 REME Awards for Real Estate Management Excellence at the Inaugural Gala Dinner. The IREM® REME Awards celebrate excellence in real estate management through recognizing real estate management companies and individual practitioners for innovative, leading-edge, business practices and initiatives and sharing successful initiatives and fostering further innovation within the real estate management industry, locally and globally. The 2016 REME Awards Winners from California: ARM® OF THE YEAR—Nicole Helton, Alliance Residential LLC, Riverside; CPM® OF THE YEAR—Rita Hernandez, Brickman, San Francisco; WORKPLACE ENVIRONMENT: EMPLOYEE & LEADERSHIP DEVELOPMENT: Veritas Investments, San Francisco. (See interview with Hernandez on page 10.) The winning individuals and companies have established exceptional practices and initiatives that not only stand out in a field of their peers, but improve the quality of their work environment, their client experiences, and their communities at large. The talent, ingenuity and, above all, the passion demonstrated by the 2016 REME Awards winners speaks volumes about the quality of real estate management professionals in the industry today. “We are really pleased at how the REME Awards program has grown, and these accomplished and exceptional winners showcase just how outstanding our community of professionals is. I truly believe the REME Awards are proving to be a legacy program that will foster continued innovation and excellence in our industry,” said Christopher Mellen, IREM® president, The Simon Companies, Braintree, Mass.


31 California Buildings News • November/December 2016

Better Workplace Strategies Aired at BABC Event British-American Business Group Networks, Shares Ideas Speakers at “Workplace Innovations: Happiness, Productivity and Profitability,” a program sponsored by the British American Business Council of Northern California and engineering giant Turner & Townsend Trestle, made clear to the audience that the quality of where we work and how we work depends greatly not just on how our buildings are run but on the environmental policies of our cities—and ultimately — our regions. The speakers, in fact, represented companies whose services and products are already improving workplace design and operations in a variety of ways, like Brandon Tinianov’s company VIEW Inc., which makes intelligent, electrochromic windows that automatically tint to maximize natural light, reduce heat and glare. Tinianov and Kevin Hydes, president & CEO of Integral Group and the former Chair USGBC and World Green Building Council, stressed that improved workplace wellness drives productivity to such an extent that companies become more profitable and better attract talent. Hydes noted that workplace wellness is fast becoming a major new focus within the sustainability movement. He said the “democratizing of knowledge” via Google and other information platforms transcends the need for experts to achieve healthier workplaces. “It’s flattened everything so users can know more about health and space than exerts or designers.” The leader of one of Silicon Valley’s biggest companies, he said, uses his own handheld devices to measure indoor air quality and other building wellness features. The event, held at the Herman Miller furniture showroom in San Francisco, also featured architect Russ Drinker of M Moser Associates whose building designs all over the world have emphasized sustainability. “People want to work for companies with values,” he said, acknowledging the trend toward greener workplaces. He stressed that building and urban designs be more flexible to accommodate cities’ evolution away from autocentric transportation and more toward mass transit needed for better planned cities to handle population and workforce growth. Bigger cities, he emphasized, can also be cleaner and healthier if properly planned. He said people are flocking to cities “because they desire to be a part of vibrant communities, to be a part of the community, to be engaged.” The evolutionary nature of commercial real estate was also illustrated by the appearance of RocketSpace CEO Karl Knight on the panel. Providing flexible office space for startups, RocketSpace offers accelerator-like services to its members including programming, consulting, events and office-asa-service, which together create an ecosystem and community for innovation to thrive. RocketSpace has fueled the success of more than 800 startups, including 16 unicorns who have

raised more than $20 billion, such as Uber, Spotify and Leap Motion. RocketSpace’s Corporate Innovation Services team has helped more than 100 brands worldwide transform into modern corporations. Knight told the audience that startup companies are “recruiting companies by nature,” and so talent prospects respond to workplaces that offer the most accommodating environments, such as pleasing amenities, temperature and light controlled by apps and fast and secure digital pipes for interaction with cloud-based programs. The BABC offers its members in Northern California practical business expansion opportunities by delivering high-caliber networking and marketing opportunities, top-quality business intelligence, regulatory advice, and the opportunity to get business from the personal relationships they develop through their membership.

3RD ANNUAL AWARDS GALA Featuring: THE OUTSTANDING BUILDING OF THE YEAR

February y 9th, 2017 att

6:00 PM

Oakland Scottish Rite Ce

Register online at www.bomaoeb.org

nter

Lorem


32 California Buildings News • November/December 2016

California Futurist

(Continued from page 4)

community. By 2025, that percentage could double. In addition, in 2014 only 14% of children under the age of 18 were living with parents in their first marriage, with a father who worked and a stay-at-home mother. In the 1960s, 50% of children lived in that family environment, according to Pew Research Center. Pew also noted that children ‘living with cohabitating parents or single-parent families were 2-3 times more likely to be living in poverty than children in married

parent homes.’ First-time marriages are being delayed and the age of a woman having her first child is now two years later than in the past. Did you know that one-third of today’s marriages (35%) start online and that over 42 million adults have been married more than once? This has significant long-term impacts on rental and affordable rental housing over the next decade. Furthermore, the marriage apocalypse appears to be accelerating. ‘Second Career’ Boomers will be attracted to dynamic markets and affordability and rent control will be a front and center issue.” w “Advancements in lighting, genetic crop modification, energy and water recycling will make year-round growing of food within commercial buildings commonplace. Watch for the proliferation of high-rise farms in and around CBDs and alternative ‘growing’ uses for large warehouse space. Adaptive reuse of commercial buildings into ‘farms’ will accelerate. These high-rise farms could reach up to 60 stories, but a 12-story mixed-use farm with residences would be a more popular option by 2025. In Japan, a former Sony semiconductor factory now harvests 10,000 heads of lettuce per day. In New Jersey, a run-down steel factory (69,000 sf) soon will be producing 2 million pounds of produce per year using 95% less water than a field farm. MIT’s City Farm claims to be 70%- 90% more efficient than traditional watering. Do not be surprised to see several biophilic cites emerge over the next ten years. Chicago’s O’Hare aeroponic garden is another example of urban indoor farming. Today every calorie Americans consume costs approximately 10 fuel calories to produce and ship. Watch for 5%–7% or more of existing urban aging, non-competitive and inefficient office and industrial space to be converted to urban farms. In Pueblo, Colorado, today there are 3 million sf of indoor marijuana cultivation and another 2 million –3 million sf of indoor farms area slated to be constructed. Freight Farms may be a precursor of urban farming. Indoor farming will increase dramatically over the next decade. There are 700,000 unused shipping containers in the U.S. Start-ups like Growtainer or CropBox may be the norm within a decade. Do not be surprised to see a Commercial Farm REIT by 2025, or sooner.” n For more of CEL & Associates’ 100 predictions, visit: http://celassociates.com/


33 California Buildings News • November/December 2016

Who Reads CALIFORNIA BUILDINGS News? More than 23,000 people who design, construct, operate or provide services and products to office buildings, apartment complexes, hotels, hospitals and other types of commercial facilities in the sixth largest and one of the fastest growing economies in the world ­— California. Reach decision-makers like those shown below.

Building Engineer

Asset Manager

Architect

General Contractor

Facility Manager

Property Manager

Buildings Services Provider

Boost your sales by including California Buildings in your ad budget. To learn more about how you can reach our targeted audience, contact our co-publisher, Ellen Eason, at ellen@easoncom.com or 415.596.9466.


34 California Buildings News • November/December 2016

Industry News

Property Management Industry Continues Record Growth 89 Percent of Property Managers Expect Portfolio Expansion Over Next Two Years Property management is booming as an industry, but with that comes a host of issues, such as finding the right people and vendors to help manage their increasingly complex properties. Buildium, the property management solution for real estate professionals, and The National Association of Residential Property Managers (NARPM), a leading trade organization for the residential property management industry, today released the findings from their joint survey, “The 2016 State of the Property Management Industry Report: Focusing on Growth in a Thriving Industry.” The report, which surveyed nearly 1,500 property managers across the United States in June, explores the most common and most effective practices in the property management industry. Despite property managers having a positive outlook for growth through 2018, many still struggle with finding and keeping reliable contractors and vendors, generating new leads and growing their portfolios, and effectively managing their time, processes and employees. The report aims to highlight the attitudes, behaviors and beliefs that are

Your commercial IPM/Green/LEED specialists

Count on Crane for Pest Management Expertise Serving commercial property managers throughout the Greater Bay Area...since 1930 NPMA GreenPro Certified

415-922-1666 • 510-536-1222 408-295-3333 • 800-592-7777

www.cranepestcontrol.com

most likely to combat these challenges and help property managers achieve business success. “There has arguably never been a better time to be in the property management industry, but successfully expanding portfolios and growing their businesses remains a critical concern for property managers,” said Michael Monteiro, co-founder and CEO of Buildium. “The Buildium and NARPM State of the Property Management Industry Report aims to deliver clear insight, from and for property managers, so they can more effectively manage day-to-day tasks, better service tenants and clients, and adopt solutions and processes — like property management software— that deliver direct value-add benefits to their businesses.” Key findings from the report include: Property managers have a range of portfolio types, but mixed portfolios were most likely to report high profitability (54 percent), compared to self-managed portfolios (50 percent) and third party portfolios (48 percent). Further, self-owned portfolios experienced 70 percent growth in the last two years, with mixed portfolios growing 83 percent and third party portfolios growing 77 percent in the same time period. 2016 has emerged as a high-growth cycle for the property management industry, with 77 percent of respondents indicating they’ve grown their portfolios over the last two years, and 89 percent expecting their portfolios to continue to grow over the next two years. Property managers continue to face day-to-day challenges, despite record growth, with the majority of respondents (38 percent) citing finding and keeping reliable contractors and vendors as their top challenge. Finding new leads (37 percent), managing time and employees (29 percent), attracting and managing great tenants (23 percent), and handing inspections and maintenance calls (22 percent) round out the top five property management business challenges. Business challenges are also often dictated by what services property managers provide— tenant screening (90 percent), maintenance (85 percent), leasing (85 percent), listing services (85 percent) and financial reporting (80 percent) were all included in the top five offered services in 2016. When asked what has had the greatest impact on business success, an overwhelming number of (Continued on next page)


35 California Buildings News • November/December 2016

Governor Jerry Brown signed Senate Bill 7 on September 26th, bringing to a close more than a decade of legislative work to address water and sewer billing in the multifamily sector. RealPage Utility Management was heavily involved in these efforts over the years, particularly regarding existing properties that utilize an allocated or “RUBS” billing methodology, and submeter installation issues. The law requires multifamily owner/operators that request a connection to a water utility after January 1, 2018 to install submeters in each unit or have the providing utility install meters in the units, in order to bill residents for water and sewer charges. Properties that requested a connection prior to this date do not need to install submeters in order to bill residents. The law will not affect existing properties without submeters where tenants are billed separately through ratioallocation (RUBS) utility billing systems. Additionally, this law provides clarity for multifamily owner/operators and residents. Previously, the practice of billing residents for water and sewer charges was

Image: Adobe Stock.

New Multifamily Water, Sewer Submeter Law Enacted

not comprehensively regulated on the state level and was regulated on the local level by just a handful of entities. Some important provisions of the law are: n Allows a monthly billing fee up to $4.75 (with increases allowed over time) for water and sewer billing n Specifies rates and methods to be used n Requires specific lease disclosures n Requires specific bill content and formatting n Requires that owners provide residents with specific information to facilitate an understanding of how bills are calculated n Requires repairs to inoperable submeters within a specific timeframe and limitations on charges if meters are not repaired in a timely manner

(Continued from previous page)

respondents (60 percent) cited excellent communication skills and following up. Organizational skills (35 percent), hiring the right employees (32 percent), and embracing technology and innovation (30 percent) came closely behind. In addition to those property managers who identified technology as a key differentiator, 88 percent of survey respondents revealed they are already using a dedicated cloud-based technology solution to help them run their business. Of the four percent of respondents who are not already using property management software, half said they would like to be. In addition to healthy business growth projections, property managers are also very happy with their jobs. More than 25 percent of respondents said they have no frustrations with their portfolio owners and 95 percent said they always or sometimes love their line of work. “Growth emerged as an overwhelming theme in this year’s State of the Property Management Industry Report,

but with that exceptional growth comes a new set of pains in preparing for and managing increased expectations for property managers,” said Gail Phillips, CAE, executive director of NARPM. “By offering a benchmark for how a select number of property managers are taking advantage and succeeding in this up-market, this year’s report serves as a guide for our industry’s best practices.” The National Association of Residential Property Managers (NARPM), founded in October 1988, provides a permanent trade organization for the residential property management industry. NARPM continues to be the premier professional association of residential property managers, currently representing more than 4,000 members comprised of real estate agents, brokers, managers and their employees. Los Angeles fell far below with a 50% rating and Seattle even lower with 41.5%. San Francisco was an early adopter of sustainability practices and has been stimulated by California law. It jumped from 7.2% green building certifications in 2005 to a national best of 73.7% in 2015. n


36 California Buildings News • November/December 2016

Industry News

Trump’s Election Could Boost Construction Industry, Says Dodge The election of Donald J. Trump appears to be a welcome development for the U.S. construction industry, according to forecasters at Dodge Data & Analytics. With his background and experience in construction and real estate development, Presidentelect Trump understands the important role that construction plays in the growth of our economy and the vitality of our cities. During the course of their campaigns, both Donald Trump and Hillary Clinton highlighted the need for increased federal investment in infrastructure. Under President-elect Trump’s latest proposal, up to $550 billion in federal funds could be invested, presumably over a five-year period, in infrastructure and publics works projects. “The broad proposal for increased federal funding should support the public works sector, either directly or indirectly, by keeping attention focused on the need to upgrade infrastructure,”said Robert Murray, Chief Economist, Dodge Data & Analytics. “The ways in which the Trump proposals will affect construction will become clearer as more details come forth, including how these proposals make their way through Congress. For the moment, it’s still believed that total construction starts in 2017 will increase 5%, with some dampening for healthcare-related projects accompanied by improvement for public works construction.”

President-elect Trump’s emphasis on upgrading and developing public infrastructure, including roads, bridges, airports, transit systems and ports will, with the approval of the 115th Congress, bring much needed revitalization to U.S. infrastructure and create favorable business conditions across the design and construction industries. While the specifics of federal infrastructure investment in 2017 and beyond will become clearer in the months ahead, the ideas already proposed should help spur Congressional action on two existing legislative items, including the Water Resources Development Act and the 2017 Federal Appropriations Bill, which make provisions for infrastructure spending on water management, transportation and energy infrastructure. The election has also already provided some clarity on likely construction at the state and local level. Voters have given their approval for several major construction-related measures in California, Colorado, Texas and North Carolina with a combined value upwards of $136 billion for education and transportation sector construction. Dodge Data & Analytics will continue to closely monitor legislative developments and industry trends, watching for a possible upside to our forecast, to ensure that design and construction businesses are equipped to capitalize on the opportunities that lie ahead. We are encouraged by the tone of the latest developments. About Dodge Data & Analytics: Dodge Data & Analytics is a technology-driven construction project data, analytics and insights provider. (See page 2 for other views on the Trump election.) Image: Adobe Stock.

Statewide Water Conservation Drops Below 18 Percent in August The State Water Resources Control Board recently announced that urban Californians’ monthly water conservation declined to 17.7% in August, down from 27% savings in August 2015, raising concerns that some water suppliers are abandoning their focus on conservation as California heads into a possible sixth drought year. Californians continue to conserve water in significant amounts even in the absence of state-mandated conservation targets. The cumulative average savings from June 2015 through August 2016 was 23.3 percent, compared with the same months in 2013. Since June 2015, two million acre-feet of water has been saved—enough water to supply 10 million people, more than one-quarter the state’s 38 million population, for a year. However, water conservation has dropped steeply among

some local water suppliers. These declines highlight the need for continued education and dialogue with customers on the importance of conserving and using water as efficiently as possible. As the State Water Board continues to monitor conservation levels, a return to state-mandated conservation may be necessary beginning next year. “The statewide August conservation results raise questions, and we are examining the data to understand why some areas slipped more than others,” said State Water Board Chair Felicia Marcus. “Are we seeing relaxation of conservation messaging and programs, or are we seeing abandonment of programs? One may be appropriate, the other is not. It’s a mixed picture. Many communities who certified that they didn’t ‘need’ to conserve are still conserving up a storm, while others have slipped more than seems prudent.”


37 California Buildings News • November/December 2016

Six California Cities Rank Among Top 10 Green in the Land With October being National Energy Awareness Month and 74 percent of Americans today supporting efforts to protect the environment, the personal-finance website WalletHub conducted an in-depth analysis of 2016’s Greenest Cities in America. To determine which cities promote an environmentally friendly lifestyle, WalletHub’s analysts compared the 100 largest cities across 20 key indicators of sustainability, ranging from “greenhouse-gas emissions per capita” to “number of smart-energy policies and initiatives.” (See lists below.)

Greenest Cities in America

Least Green Cities in America

1 2 3 4 5 6 7 8 9 10

91 92 93 94 95 96 97 98 99 100

San Francisco, CA Honolulu, HI San Jose, CA Fremont, CA San Diego, CA Washington, DC Oakland, CA Portland, OR Sacramento, CA Minneapolis, MN

Houston, TX Lexington, KY Cleveland, OH Tampa, FL Louisville, KY Corpus Christi, TX Toledo, OH Tulsa, OK Oklahoma City, OK Baton Rouge, LA

San Francisco Ranked #1 Green City…Chicago Close Behind The City by the Bay ranked first with 73.7% of its commercial buildings having being LEED or ENERGY STAR certified. Followed closely behind is Chicago, with a 73.2% rating, according to a CBRE joint-commissioned study with Maastrict University. Image: Getty Images

Energy–Efficient Building & Construction a Priority in San Mateo Ordinance Requires Solar and Cool Roof Installation on New Construction Projects Energy efficiency and reducing greenhouse gas emissions is a priority for the city of San Mateo. Starting January 1, 2017, San Mateo will require the installation of solar systems in all new construction projects. The city also requires cool roof installation on all new multi-family and commercial developments with low-sloped roofs. Approved by the City Council on May 16, 2016, the energy reach code ordinance will impact new single-family, multi-family, and non-residential construction. Following approval by the San Mateo City Council, the California Energy Commission (CEC), approved the ordinance and commended San Mateo for its leadership and commitment to environmental stewardship and sustainability. The ordinance aligns with the City’s Climate Action Plan (CAP). San Mateo City Council adopted the CAP in 2015. San Mateo’s climate action plan directs the city to develop policies to reduce its greenhouse gas (GHG) emissions and includes energy efficiency measures to require new buildings to incorporate renewable energy readiness. “Requiring solar and cool roofs on new construction reflects San Mateo’s vision for energy efficiency and greenhouse gas reduction,” said Mayor Joe Goethals. “This ordinance is an important milestone in realizing the objectives of the Climate Action Plan.”

Image: Getty Images


38 California Buildings News • November/December 2016

Tenant Improvements

(Continued from page 7)

benefits information. San Diego’s Hollander Design Group likes to make the meal areas double as a function space. “The traditional pantry/kitchen has evolved into a front and center gathering space…a multipurpose area used for meeting, socializing and working. Often large enough to accommodate all-hands meetings with the ability to be used as an event space, the challenge with these large community spaces is to make sure they remain active throughout the day. An organizational culture that supports internal mobility is key in making these spaces successful,” says Viveca Bissonnette. Making tenant improvements usually requires knowledge of a complex variety of government regulations. Hafsa Burt of HB+A Architects in Castro Valley says, “We often run into issues, where tenants just don’t realize that any improvements over a certain threshold can trigger compliance with additional codes and standards. For instance, in California the threshold for full ADA (Americans with Disability Act) compliance is $150,244 (2016), up to that construction cost amount you are only required to bring your project up to 20% compliance. Also, construction cost over $200,000, (in most jurisdictions) will trigger the California Green Building Code. “I also advise folks to carefully work with their architects to understand an ‘alteration’ where lighting improvements are concerned and space triggers for ‘building commissioning’ because that could lead to significant cost implications for compliance with Title 24 Energy Code. My advice would be for tenants to work their way down from an established construction budget, so there aren’t any surprises.” Managing space to fit optimal working condiRIM Architects’ project for United Airlines Inflight Services Facility at SFO required a tions is always a challenge. “The transition towards design to accommodate over 350 inflight employees daily with a central workspace activity-based work environments has made a signifisurrounded by private offices. Photo courtesy of RIM Architects. cant impact on how we design the workplaces of today. Spaces supported by mobile technology allow people to With current tenant improvement trends toward flexible work anyplace, anytime. That freedom and flexibility means open workspace, RIM Architects’ design challenge is how that people are changing where and when they work based to provide varied levels of privacy to achieve an effective on their specific activities and work functions. One great work environment. For example, RIM Architects’ project for example of this is the return of private spaces within the United Airlines Inflight Services Facility at SFO required a open office. We see companies who have adopted the comdesign to accommodate over 350 inflight employees daily. pletely open office struggling with the deficit of quiet focus By designing a central workspace surrounded by private spaces. Even if it isn’t the traditional ‘private office’ model, offices, flight attendants and management are able to work, having spaces where people can isolate themselves for deep refresh and prepare for their next assignment in the same thinking and intense focus work is essential, Melissa Hanley, facility. This facility was so well-received by United employprincipal, Blitz Architecture + Interiors of San Francisco. ees that RIM was hired to develop United’s Inflight Facility San Diego’s Pete Bussett, vice president of Smith Design Standards to be implemented nationally. Consulting Architects, says many tenants are turning to Good food and service space have emerged as a requireless conventional space for their offices. “We are finding ment for modern workplaces, with employees comparing that, in addition to considering a building or property’s such amenities with friends more readily than salary and New products that have been coming online recently have created dramatic financial efficiencies. “By rethinking your electrical, HVAC and walls, you can easily and significantly reduce TI costs,” said Jon Dumbault, president of Communications Integrators Inc. (Cii). “Consider solutions that are flexible and easily reconfigurable as these will reduce labor. Plug-and-play modular power like the Cii ReVolt Control solution will save up to 50% on TI costs, while demountable walls such as Maars Living Walls will take 25-50% off your construction timeline.” (For more information, see our companion article on page 12 on office technology.)


39 California Buildings News • November/December 2016

rental rate and how their requirements fit, “a tenant also evaluates the opportunity for their new ‘home’ to reinforce their company culture, or effect/promote a desired change in their company culture. “We are seeing a willingness by traditional office tenants to relocate to ‘flex industrial’ or ‘creative industrial’ properties. The attraction often includes the aesthetic of high ceilings and large space volumes, or no ceilings with exposed infrastructure for a less formal vibe. (See rendering to the right.) “And as tenants follow this trend, landlords are strategizing to incorporate features and amenities typically provided in office buildings, into their industrial projects. These items include expansive use of windows, providing recreation amenities like bocce and sport courts, passive outdoor common areas with fire pits, BBQs and shade structures.” In regions that experience high temperatures at times, back-to-the-future cooling technologies such as fans are emerging to both provide comfort and achieve green goals. “Fans can be used as part of a passive ventilation strategy, as well as to distribute heated air and supplement cooled air. In any case, they massively reduce reliance on HVAC, which accounts for 30 to 40 percent of a typical North American building’s energy use. Of course, the climate in much of California lends itself to more passive comfort management, so the use of Big Ass Fans almost completely eliminates the need for HVAC for some of our clients there,” says Big Ass Fans R&D Manager Thomas Lesser. “Additionally, our Big Ass Light brand offers primarily LED lighting. LEDs use about half the energy of halogen and high-intensity discharge lighting that’s still common, especially in industrial and commercial facilities. A number of our fixtures offer occupancy sensing and ambient-light dimming features, which provide additional energy savings.”

Health Concerns Are a Major TI Issue Shrewd employers realize that keeping employees healthy pays off in less absenteeism and higher levels of productivity and creativity. Practicing workplace wellness has the added benefit of helping attract good employees as well as enhancing the company’s brand. “Improving human health and wellbeing is the new

The Dis-Trib-Ute Lot 15 project in Carlsbad, CA. Developer: RAF Pacifica Group. Architect: Smith Consulting Architects (design/rendering).

green!” says Adhamina Rodriguez, CEO of AR Green Consulting. “There are a number of rating systems hitting the market that focus on making people healthier and happier in the built environment, including WELL (wellcertified. com), RESET (reset.build), and FitWell (fitwel.org). “Since the launch of WELLv1.0 Pilot in October 2014, the International WELL Building Institute (IWBI) has registered more than 270 projects in 24 countries, and has accredited 761 WELL professionals worldwide. Tenant improvements are, not surprisingly, a fantastic niche for wellness as they can improve air quality, lighting, acoustics, ergonomics, and reduce off-gas of dangerous toxins through the selection of safer finished products. A healthy built environment will target our innate connection with nature, will allow a variety of work positions, will sync with our internal clock to prevent sleeping disorders through circadian lighting controls, and provide a selection of healthy veggies and fruits should your treadmill desk makes you hungry. Mind, body, and built environment, are converging for a healthier and happier sustainable life.” Many surveys indicate that bathroom spaces rate highly among employee concerns and, if not properly equipped and managed, can become healthcare hazards. Rubbermaid Commercial Products “has developed a collection of sustainable, green technologies that provide advanced washroom solutions to commercial spaces,” says Samir Jhaveri, director, washroom solutions/technical concepts for RCP. “Our programmable dispensers and fragrance options keep high-traffic areas — especially bathroom s— (Continued on page 40)


40 California Buildings News • November/December 2016

Q&A (Continued from page 11) 14 years. In 2015, I opened a YouTube and Twitter account called CPMz Rule which include short video clips of interviews, and IREM event experiences. I write “The Face of IREM” profiles of IREM members and make business cards with IREM scholarship information to hand out as needed. 2) Superior Service— I provide the best teamwork on asset repositioning, tenant retention, tenant recruiting, employee satisfaction, tenant satisfaction and watch costs. My extensive network plays a crucial role in achieving the above. 3) Community Service — Every event at the building is tied to a non-profit; i.e., The Bay Institute, SF Bicycle Coalition, Safe Bikes, Cooking Matters, One Warm Coat; SFFD Toy Drive. I chaired a partnership between IREMSF and Casa de las Madres to implement an IREM residential management training program for women recovering from domestic violence, called REstart. I supported Helper’s Homes Bazaar located in Ghirardelli Square. 4) Leadership Through Innovation — The tenant mix is diverse, so tenant retention strategies like building

AIA Study

(Continued from page 28)

work, less likely to feel that their opinions were valued, and, ultimately, less likely to say that they planned to stay at their current job. While there were stark differences between men’s and women’s salaries, career advancement, and perspectives, gender wasn’t the driving predictor of success within the profession. Factors like transparency in the promotion process, having access to a senior leader in one’s firm, receiving ongoing feedback about one’s work, sharing values with one’s firm, and having meaningful relationships at work were much more strongly correlated with all of these measures of success. Male respondents were more likely to report having access to each of these ingredients for a satisfying career in architecture. Early findings show that pay equity is the most consistent stratification between men and women, with men’s salaries consistently higher than women with similar experience levels, regardless of caregiver roles, project roles, firm size, or negotiating ability. Results from the survey demonstrated that men averaged $94,212/year and women averaged $71,319/year; a difference of $22,893/year. When controlled for years of experience, men averaged higher salary ranges 100% of the time. n

events designed to meet the needs and interests of all the tenants are injected into the life of the building. Program and event topics are cutting-edge, informative and fun. 5) Mentoring — Summer internships and job shadows through the United Way of the Bay Area’s Business Pathways Program, IREM, and CREATE; CCSF Real Estate Career Panel; member of CCSF Real Estate Advisory Council; coordinated “Meet a CPM Mentor” speed networking event. I invite guests to IREM events, at my cost, to help them make valuable connections. 6) Ethics — IREM is known for the high standard of ethics it teaches and upholds. 7) Involvement in IREM — 1992 Candidate of the Year; 1999 Chapter President; CPM of the Year in 1999 and 2013; 2004 Franklyn D. Lyons Award for Career Service; 2016 REME CPM of the Year. 2016 & 2017 member of the IREM National Diversity Advisory Council. 8) Promoting the CPM —I wear my CPM pin every day. There are only 19,000 CPMS and I’m proud to be one of them. n

Tenant Improvements

(Continued from page 39)

clean and fresh, and our sleek and modern fixtures perfectly complement any new space.” The company works to combine cleanliness with aesthetics. Its Enhance collection was developed with a group of top-end professional designers to create a line of trash cans that can be tailored to complement a property’s upscale décor. The contrasting frame and panels offer a modern appearance that creates visual versatility. With more than 200 different color options, panels can easily be replaced and offer an affordable option to refresh the look of any property. Enhance blends aesthetics and functionality. Floating lids give the appearance of lightness, designed to reduce the chance of pinching, and a flare on the receptacle rim that provides visual appeal while also allowing room for users’ hands to easily grip the plastic liner during removal. The premium trash receptacles also include a fingerprint resistant coating that helps prevent smudges and makes it easier to maintain a high-quality look over time. n


COMMERCIAL | INDUSTRIAL

TRADE PROFESSIONAL DIRECTORY YOUR RESOURCE FOR MONEY & ENERGY SAVINGS

Search the Trade Pro Directory for professionals when upgrading your natural gas equipment. • Find professionals who sell, service or install energy-efficient natural gas equipment including boilers, pool covers, pool heaters, pipe insulation and more. • Lower your upfront equipment costs with rebates or incentives. • Get support from professionals who can help identify additional energy-efficient options to save money and energy. Visit socalgas.com (search “TRADE PRO”) to start now.

socalgas.com The Trade Pro Directory is provided for informational purposes only. SoCalGas does not recommend, endorse, qualify, guarantee or make any representations or warranties regarding the services, work, quality, financial stability or performance of any vendor listed in the Trade Pro Directory, or the goods and services they offer. Vendors are listed in this directory because they elected to provide their name and contact information and not because they hold any particular license or certification. The information in this directory is made available simply as a convenience to customers who wish assistance in locating vendors, and SoCalGas is not, and shall not deemed to be, a party or guarantor to any agreement between a customer and a vendor. Customers are strongly encouraged to perform their own research and due diligence, and to obtain multiple bids or quotes when seeking a vendor to perform any type of work. © 2015 Southern California Gas Company. Trademarks are property of their respective owners. All rights reserved. N15J0139A 1115


42 California Buildings News • November/December 2016

Security Innovations (Continued from page 21)

Building Security Tips: A Checklist When it comes to security issues, government building managers have more challenges than most. Government offices can be targets for theft, unlawful entry, kidnapping, bombings, mass murder, forcible occupation and sabotage. Here are some tips offered by the U.S. General Services Administration, which probably manages more buildings than any other organization in the country. w Install key-card access systems at main entrances and on other appropriate doors.

lock, only office personnel should open the lock for visitors.

w Issue access control badges, with recent photo graphs, to all employees and authorized contractors.

w

w Upgrade perimeter control systems with intercoms and closed circuit monitoring devices. w Keep master and extra keys locked in a security office. w Develop crisis communication among key personnel and security office involving intercoms, telephones, duress alarms or other concealed communications. w Have a back-up communication system, like two way radio, in case of phone failure. w Locate executive offices near the inner core of the building to afford maximum protection and avoid surveillance from the outside. w Arrange office space so unescorted visitors can be easily noticed. w Have staff follow strict access control procedures; don’ t allow exceptions. w Keep important papers locked in secure cabinets.

Post a security guard at the main building entrance or at entrances to specific offices. Officers (or guards) should have a clear view of the controlled area at all times.

w Issue all employees photo identification cards and assign temporary passes to visitors—who should be required to sign in and out of the building. w

Rearrange office furniture and partitions so that front-line employees in daily contact with the public are surrounded by “natural” barriers—desks, countertops, partitions—to separate employees from customers and visitors.

w Brief employees on steps to take if a threatening or violent incident occurs. w Establish code words to alert coworkers and supervi sors that immediate help is needed. w Provide an under-the-counter duress alarm system to signal a supervisor or security officer if a customer becomes threatening or violent.

w Keep offices neat and orderly to identify strange objects or unauthorized people more easily.

w Establish an area in the office for employees and/ or customers to escape to if they are confronted with violent or threatening people.

w Empty trash receptacles often.

w Reception desk immediately inside public entrance.

w Open packages and large envelopes in executive offices only if the source or sender is positively identified.

w Silent, concealed alarms at reception desk and on Federal employee side of service counter.

w

Keep closets, service openings, telephone and electrical closets locked at all times. Protect crucial communications equipment and utility areas with an alarm system.

w Keep publicly accessible restroom doors locked and set up a key control system. If there is a combination

w Window in supervisor’s office from which supervisor can view customer service. w Access-control combination locks on access doors. w Closed circuit television camera mounted for monitoring customer service activity from a central security office for the building.


Are You Advertising in America’s Biggest Market? Boost Your Sales to California Building and Facility Managers, Architects and Contractors California is the world’s sixth largest economy (even big-

Ask About Lower Regional Rates for NorCal & SoCal Editions

ger than France), and our buildings industry is expected to continue booming…creating opportunities for product and service sales to all types of buildings. You can best reach this unique market by promoting your services and products in California Buildings News. Next issue will focus on HVAC, MEP and retail innovations.

n Statewide coverage of the California buildings industry— the sixth largest in the world

Our next issue...

n News about commercial buildings, multifamily complexes, hotels, hospitals,factories, institutional facilities

Winter 2017 • $5

HVAC Innovations

n Regional news focus on Northern and Southern California

Smarter Systems are Coming Online That Offer Energy Savings and Greater Tenant Comfort

n Ad opportunities allow you to choose either statewide or regional market pricing

MEP Advances Drive Efficiency

Rooftop Visions of Future

Retail Centers vs. Cyber-Shopping

n

More than 23,000 readers of our print edition, including building and facility managers, architects, contractors, engineers, developers and companies providing goods and services

n

Direct-mailed and distributed through more than 50 organizations like BOMA, IFMA, IREM, AIA, SMPS, CoreNet, AFE, CREW, USGBC, CAA and many others

n Digital version distributed extensively online, through social media and online

To learn more about how you can reach our targeted buildings industry audience, contact our co-publisher, Ellen Eason, at ellen@easoncom.com or 415.596.9466. Check us out at www.cabuildingsnews.com


California Buildings News PO Box 225234 San Francisco, CA 94122

www.cabuildingsnews.com Return Service Requested

Printed on recycled paper.

The Only Association Dedicated to the Success of the Corporate Real Estate Professional Our success is due to our members and industry-leading chapter sponsors.

P L AT I N U M :

GOLD:

HOK

I

I

Knoll

Avison Young

I

City of Santa Ana

Clune Construction

Avery Dennison

I

Experian

I

I

SILVER: Snyder Langston

I

I

Tekworks

I

Turelk

BRONZE: Gensler

First American

I

I

Jacobs

I

I

Shaw Contract Inc.

C O R P O R AT E : Irvine Company Office Properties

I

DIRECTV

I

I

Ware Malcomb

Southern California Edison

Microsoft

I

Sempra Energy

THANK YOU! For information on being part of CoreNet or attending one of our business events, visit http://socal.corenetglobal.org/home. Or find us at

Californiabuildingsnd2016  

News about building and facilities management, commercial real estate, sustainability, architecture and construction.

Read more
Read more
Similar to
Popular now
Just for you