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There is no quick fix to California’s drought, but there is a much quicker fix than forcing the state’s non-agribusiness sector and residents to bear the full conservation burden as food- and fiber-producing companies continue to use almost 80% of the state’s water while only producing only 2% of our economic value. Agribusiness has numerous water conservation options, ranging from better irrigation to switching to crops and animal food that require less water. If it were required to cut its water use by a small percentage, California could avoid a serious economic slowdown that would affect everyone. Soon, a lack of water may discourage business formation and expansion, resulting in unemployment and reduced state and local revenues needed for vital services. Agribusiness interests have pledged they will voluntarily cut water use, thereby warding off government mandatory actions for a time. Will state and local governments need to impose restrictions on agribusiness’ water use? The food and fiber lobby is one of the most influential in California politics, so its power continues to be felt in Sacramento. Other economic interests must also be heard—particularly commercial real estate and all the other many industries that support it and depend upon its health. Want to be part of the solution? It’s a mostly political problem that must have a mostly political solution. That means you have to contact your public officials and make your views known: • Governor Jerry Brown: https://govnews.ca.gov/gov39mail/mail.php • Your state senator and assembly member: http://www.legislature. ca.gov/legislators_and_districts/legislators/your_legislator.html • California Department of Water Resources: http://www.water.ca.gov/
Liberals Push for Tax Hikes on Commercial Real Estate Public employee unions, allied with other liberal and welfare groups, just launched a campaign to increase taxes on commercial property. Groups like the California Teachers Association and the Service Employees International Union will invest millions to gain billions as they stump for a 2016 ballot initiative that would remove Proposition 13’s limits on what the organization considers to be commercial property. It covers all industrial, retail and office complexes. The “Make It Fair” lobby group’s main argument: A lot of companies in California are getting rich, so they must be forced to share their earnings with the special interests that the tax-hike group represents. The tax increase is estimated by some to cost California companies more than $9 billion and could have the unintended consequence of cutting hundreds of thousands of workers’ jobs in sectors not represented by the special interests groups promoting the proposition. A group called “Californians to Stop Higher Property Taxes” has been organized to oppose the so-called split-roll tax and is appealing to affected companies to fund opposition to the proposal. For more info: http:// stophigherpropertytaxes.org Henry Eason, Editor (firstname.lastname@example.org)
Workplace Design Revolution
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Cover Photos - Workplace Design: photos courtesy of Genentech. Lower left photo: courtesy of EdgeCore Real Estate Group. Center photo courtesy of Gensler. CM
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Traditional CRE Leaders Embrace “Disruptive” Officing Trends …At IREM Orange County’s Southern California Real Estate Conference With as many as one-third of American workers many locations, particularly the Millennial generation. He employed in non-traditional office settings, brick-andsaid traditional realtors must learn to embrace change. Baby mortar realtors who are more accustomed to long-term Boomer Mike Kent of Goodman Birtcher says he already leases and 20th century works in an open officing enviofficing styles must find ronment where he has no assigned new ways to accommodate desk. Some days he said he might alternative ways to work. be seated next to the company’s So a standing-room-only CEO, then next beside someone audience at the 25th annual with very different duties. “It took IREM OC conference was a couple of months to adapt, but told in May in Garden Grove I love it. It’s very collaborative,” by a panel of senior commerKent said. cial real estate managers. “Despite the fact that we’re Cushman & Wakefield’s brick-and-mortar, it all comes Maria Sicola observed that down to people,” said panel modher company already works erator Holly McManus of Irvine with firms like Regus and Company Office Properties. Executive Think Tank speakers: (left to right) Holly McManus, WeWork, two global multiIn other topics covered during Mike Kent, Steve Mensinger, Cheryl Todd and Maria Sicola. billion companies that IREM OC’s popular “Executive provide occasional and drop-in office space and amenities Think Tank” session, Kent and others aired concerns that for free-lancers, sole proprietors and others who require serious workforce challenges lie ahead for commercial real alternative officing arrangements. estate as Baby Boomers retire and positions may not be filled New technologies, said Mesa Management’s Steve by trained professionals. “We need to go outside our indusMensinger, have made it possible for people to work from try to recruit people,” said Kent. He and others said they (Continued on page 21)
IFMA Inland Empire Promotes HVAC Education Pressures on California’s HVAC employers are high as the cost of noncompliance with state energy mandates increases. A very large percentage of the state’s 58,000 HVACR workers are not trained in energy efficiency code compliance. Many of those trained have difficulty keeping up with advances in technology. Further, more than 2,000 will leave the HVAC workforce annually, presenting significant gaps in a growing market. Joining the California Community Colleges network of HVACR employers gives a company a competitive advantage in meeting these challenges. As a significant number of HVACR workers begin to retire or leave the workforce, employers are finding it more and more difficult to hire qualified replacements. This program simply gives participating employers priority access to qualified workers. It’s a way to keep the shrinking labor pool from shrinking their business. IFMA Inland Empire is teaming up with community colleges in Southern California to promote education of HVAC workers. An innovative workforce program gives participating employers priority access to HVACR-qualified people. It’s a way to keep the shrinking labor pool from shrinking. The idea is to offer options to employers for making their workforce a competitive advantage. It’s an integral part of the California Community Colleges and it’s Doing What Matters for Jobs and the Economy framework, investing funding and resources in industry sectors that are key to California’s economic growth. Its industry-specific workforce services are coordinated through a system of sector specialists that align community college and other workforce development resources with the needs of industry sectors and occupational clusters through a regional focus. Learn more by visiting www.cccewd.net.
7 California Buildings News • May/June 2015
AIA San Francisco Celebrates 2015 Design Awards Recognizing achievement in a broad range of architectural work by members and non-members, AIA San Francisco’s Design Awards program celebrates the best in architecture, design and sustainability in the Bay Area. These firms were honored at the recent 2015 AIA SF Design Awards for their innovative projects.
David and Lucile Packard Foundation Architect: EHDD Photography: Jeremy Bittermann
140 New Montgomery Architect: Perkins+Will Historic Preservation: Page and Turnbull Photography: AT&T Archives, Blake Marvin, Henrik Kam, John Sutton, Perkins+Will, Plant Construction, Rienvan Rijthoven, SF Public Library Historical Photograph Collection, Stephen Schafer/HABS, Steven Poe, Tim Griffith
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California Buildings News • May/June 2015
Multifamily Industry is Robust Throughout State Leaders Tell CAA That Growth is Transformative, Brings New Challenges Robust growth in the multifamily sector will continue into next year, leading industry executives told attendees of the California Apartment Association’s CAA-Connect conference in Santa Clara in April, but record-level expansion also brings concerns. For one thing, the industry leaders say that there still aren’t enough units available or in the pipeline to accommodate a seismic demographic and economic shift from houses to apartments. Senior empty-nesters are flocking to smaller dwellings, and younger people prefer apartments to single-family homes — which in any case are far fewer and more costly than most Californians can afford. Overall, the pressure to construct more multifamily housing is greater than any can recall. “There is a classic imbalance in the market right now,” Jeff Bosshard, president of multifamily operations at Woodmont Real Estate Services, told the audience. He said that throughout the state the real estate industry has been producing thousands of new apartment units in major metro areas; meanwhile the economy has been producing tens of
thousands of new jobs for people without adequate housing. “It’s a staggering imbalance,” he said. Michael Bissell, president of multifamily management at Sares Regis Group, said the disparity is much greater in Northern California than in the Los Angeles, Orange County and San Diego markets, though it is pressing throughout the state as the result of job growth. Rent increases are greater in the north than in the south, he added. The high cost and difficulty in getting government approval to build new apartment complexes has spurred interest in renovating older properties, the execs reported. They and manufacturers at the conference also reported a surge in upgrading kitchens and bathrooms in older buildings, justifying rent hikes. Cambridge Management Company President Tom Scott said apartment owners throughout the state who own older complexes without distinguishing features are “bringing them up a notch” by just making lighter renovations such as new countertops, glazing and other upgraded features. (Continued on page 30)
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California USGBC Leaders Advance Agenda in Meetings with State Officials PolicyPalooza is U.S. Green Building Council of California’s annual two-day Sacramento Rite of Spring extravaganza devoted to state policy and innovative ideas. Held in conjunction with activities at the Green California Summit, PolicyPalooza 2015 at the Capitol included more than 35 USGBC members from around the state and more than 50 of their local legislators and staff members to discuss how to make its shared transformative vision the new normal. In between meetings, advocates visited the USGBC Green Summit exhibit booth, shared experiences with special guests Dan Burgoyne (DGS) and Elizabeth Baca (BHI) at an Advocates’ Luncheon and toasted policy champions at the Green Hard Hat Awards reception. Its featured legislation for this year’s “speed advocacy” event was USGBC California’s sponsored AB 1463 [Mike Gatto], promoting onsite water reuse, the followup to last year’s successful “Purple Pipe” bill, Ken Alex accepts the Green Hard Hat award. Photo: John Decker Photography. AB 2282. Other topics for discussion ranged from the package of Climate Change legislation, especially SB 350 [Kevin de León], which seeks to raise building efficiency 50% by 2030, AB 32 successor SB 32 [Fran Pavley] and clean energy jobs and growth bill AB 189 [Ben Hueso] to AB 1094 [Das Williams] on plug loads and SB 602 [William Monning] on seismic PACE. This year’s Green Hard Hat Winners featured four USGBC California heroes: longtime water efficiency leader Sen. Lois Wolk, the outstanding Director of the Governor’s OPR, Ken Alex, technical committee member extraordinaire Erik Emblem of the Western States Council-Sheet Metal Workers, and flame retardant-free material champion Sen. Mark Leno. PolicyPalooza Day Deux shifted to the USGBC California track of panel sessions at the Green Summit, all of which were standing room only. StopWaste’s Wes Sullens and USGBC’s Jeremy Sigmon debuted their paper at Green Codes for California: A Progress Report; SF Environment’s Barry Hooper did the math at Dividing by Net Zero: Buildings & GHGs; and USGBC California Research Lead Paul Wermer ran Respectable Potability: On Site Water Reuse. Stay tuned for updates on our legislative progress. – By Dennis Murphy, Chair, USGBC-California
Brenden McEneaney: New Executive Director at USGBC-Northern California Joining the U.S. Green Building Council-Northern California in July as executive director will be Brendan McEneaney. Most recently he directed the resilience program at the Urban Land Institute in Washington, DC, helping communities around the country to be prepared for impacts from climate change. Before moving to Washington, Brenden ran the green building program at the City of Santa Monica for six years, implementing green building codes and incentive programs, as well as overseeing education and outreach in the community on sustainable building practices.
10 California Buildings News • May/June 2015
Workplace Design Revolution Liberating Employees from Cube Farms and Silos Genentech is one of the world’s most amazing companies. Its biopharmaceutical products have helped untold millions of patients. It’s a renowned people-oriented company, frequently listed as one of the best companies to work for in the country. So when Genentech planned a new facility in South San Francisco, it took special pains to ensure that it would be designed to be as productive as possible. So its facilities team turned to its employees. They surveyed them, intensively studied their best work habits and designed accordingly. The result is Genentech Building 35 or “B35” as it is known on the sprawling campus. It’s a facility so unique that it attracted California Governor Jerry Brown who proudly appeared to cut its ribbon on opening day May 21. It is designed to inspire interaction, innovation, collaboration and seamless community. It’s destined to be known as one of the world’s most work-facilitating environments, surely to be emulated by organizations that want their architectural design to add value to the work they do. “For us, employee wellbeing can be directly influenced by a building’s architecture,” Carla Boragno, vice president of site services at Genentech, told California Buildings News. “We designed Building 35 with architectural components that encourage discovery and make positive connections between employees and their workspace. B35 represents the intersection of sustainability, wellbeing, collaboration and choice. It provides our employees with a variety of spaces to spark their best thinking, while delivering on our commitment to the environment.” B35 employees do not have designated offices, but can work in diverse “neighborhoods” that are equipped with personal storage areas, flexible meeting spaces of various sizes and casual seating options. As teams and work assignments change and become more comfortable with new collaborative technologies, the teaming zones can be adapted to provide workspaces to fit the work. Each floor features a community atrium bridge and pantry. Light floods in from every direction, stimulating imaginations, saving energy costs, giving the facility transparencies designed to promote collaboration. The interiors give you a sense of both greatness and intimacy. “It isn’t about a building. It’s about the way we work…The very same things that inspire creativity — community, interaction, flexibility, greater use of technology, sustainability and natural light— also make good business sense,” according to Genentech.
11 California Buildings News • May/June 2015
B35 will accommodate about 1,500 employees in its seven-story 255,000 square-feet area on a hill overlooking the San Francisco Bay and mountains to the west. In addition to its employee productivity values, B35 was designed to be highly sustainable. A LEED Gold-pursuing structure, it uses 29% less energy than the national energy standard for new office buildings. The architectural firm was Perkins+Will, and it was engineered by Arup and built by Webcor Builders. As Genentech facilities researchers recently told a raptly attentive audience of the International Facility Management Association of Silicon Valley, the B35 design principle answered the question: Where is work best done? Planners began thinking of B35 by using terms
like towns, hubs and neighborhoods —with collaboration a paramount objective. Research was conducted in other settings on the 61-building campus, then used to develop B35. Genentech commissioned studies of its employees and found there were five generations whose style of work needed to be accommodated. Rather than forcing the five to adapt to a single work style, they quickly learned that they needed to create flexible environments to suit varied styles. In their survey they learned that collaboration was extremely important, so they designed B35 to permit different types of meetings, from corporate boardrooms with interactive monitors that permitted distance conferencing on a global scale to a living-room setting with lounge furniture. Mobility was also seen to be important, so workers are given mobile technology and are able to plug into communications outlets throughout the building. An important result of the B35 planning process was the realization that, since employees are often away from assigned desks in traditional work settings, buildings often waste space. That means companies often pay dearly for real estate that they don’t need. With its new design, B35 can accommodate 58% more people than a traditional structure of the same dimensions. This fact alone could have a major impact on commercial estate. (Continued on page 26) Opposite page: Open atrium: many of the buildings features were designed with employee well-being mind, including healthy café choices, air quality meters and healthy construction materials. This page: Center photo: The B35 Neighborhoods provide employees with flexible workspaces that enable collaboration and inspire innovation. Lower photo: building’s atrium brings in lots of natural light and a view of the bay. Photo credit: Genentech. Top photo: interior view of the building.
12 California Buildings News • May/June 2015
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Buildings People TEECOM organized an Earth Day clean-up at Lafayette Square Park in Oakland, bringing together employees and partners to help clean, plant, seed and fertilize the park and to produce a more drought-friendly landscape. Other industry firms that participated in the clean-up included: Shaw Kawasaki Architects, Integral Group, Boiled Architecture, Sandis, KPW Structural Engineers, HTNB , ESA, Ratcliff, BKF, O’Connor Construction, Ewing Foley, Inc., WBE Inc., Commscope, West Cal Technology Group, Inc. and Crestron. Earth Day volunteers rally. Photo: Jan Faye Cones, courtesy of TEECOM.
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15 California Buildings News • May/June 2015
Building Operators Can Reap LED Lighting Rebate Rewards Association Buying Power Adds Value to Utility Rebate Program
ith lighting costs hogging much of a building’s energy bill, it makes sense to invest in the most cost-effective illumination possible. Now— thanks to programs like the Building Owners and Managers Association’s LED Rebate Program— the investment is much less painful. “The Trade Association LED Rebate Advantage Program is the only program in the country that has aggregated the purchasing power of commercial buildings and major property management companies nationally to secure extra rebates from LED manufacturers for virtually all lighting in a building. These rebates are in addition to utility incentives, resulting in 100% rebate for many of the LEDs and compelling paybacks for others, while cutting energy cost up to 80% and providing up to 50,000 hour rated life lighting,” says Sid Pelston with the Energy Innovation Group in Marina del Rey, which manages the program. The program is available to commercial buildings, hotels and other types of facilities. Major commercial real estate firms are embracing the program, and it is being implemented in major buildings across California. “With 100% rebates, long life lamp to reduce staff time to replace burned out lighting and 80% energy savings, we’re looking at all opportunities,” says Zachary Brown, CBRE Sustainability Manager and a leader on BOMA San Francisco’s Energy and Environment Committee. “We see nothing comparable to the benefits of the BOMA LED program, in addition to the simplicity of the process,” adds Steve Ring, Director, Client Solutions at Cushman & Wakefield. The BOMA LED program comes on top of what is being offered by California major utilities, such as PG&E, Southern California Edison, LA Department of Water and Power, and San Diego Gas & Electric. For info offered by various utilities: http://bomaenergy.com/
PG&E Senior Product Manager Dave Alexander says, “LED lighting uses significantly less energy, lasts longer, turns on and off instantly, and can be equipped with dimmers and motion controls for more energy savings. LED also generates less heat, which helps reduce cooling costs for businesses. PG&E and other California utility companies have developed rebate programs for pre-qualified LED lamps and fixtures that meet performance specifications validated by ENERGY STAR®, DesignLights Consortium testing and other third parties. The list of qualified products is available at http://www.lightingfacts.com/ca. “Our goal is to help everyone become more knowledgeable about these options so that we can work together to maximize the cost and energy efficiency of any lighting upgrade project—from business owners to facility managers to licensed lighting contractors,” Alexander explains. PG&E provides many options for businesses looking to move to LED lighting: • Dedicated LED luminaires (light fixtures) and integrated Retrofit Kits – easily replaces and updates existing linear fluorescent luminaires • Linear LED retrofit kits – designed to replace existing fluorescent lamps and require some form of rewiring; the kit includes all required components, which makes installation easy • Linear LED replacement lamps – easy to install and fit most existing fluorescent lamp sockets/fixtures right out of the box • Exterior LED Lighting for Parking lots, Gas Station Canopies, Outdoor Parking Structures, Pathways and Security Businesses have a couple options for applying for LED lighting rebates. They can apply online at www.pge.com/mybusiness/ erebates or download an application at www.pge.com/ businessrebates.
16 California Buildings News • May/June 2015
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17 California Buildings News • May/June 2015
Building Trades Union Leader Takes Bipartisan Approach to Issues Q&A with Sean McGarvey, President of the North America’s Building Trades Union You said recently that buildings trades unions are most successful when they are bipartisan and partner with companies. Is that the case in California? Could you describe that effort here, as well as what is happening nationally? We have long had a history of being thoughtful and strategic in how we approach our participation in the political arena. And through a bi-partisan approach to politics that involves our contractor partners, our focus is on cultivating and constructing what we call “Building Trades Majorities” at all levels of government. We do this because, as labor leaders, we all took an oath of office to represent our members; not an oath of allegiance to either the Democratic or Republican Party. California currently has strong Democratic majorities at the state level. But, our building trades councils at both the state and local level are endeavoring to work with Republicans to foster economic development that produces jobs. In Fresno, for example, we have a positive and productive working relationship with GOP Mayor Ashley Swearengin. What’s the business case to be made for “prevailing-wage laws?” Government construction is completely different than private-sector construction. In the private sector, contractors are often selected based upon factors such as quality and reputation. However, government construction contracts are awarded on a “low bid” basis. This institutionalizes pressure on contractors to exclude training costs, health insurance, pension contributions and premium wages in their bids. This “low bid” system encourages contractors to embrace a “race to the bottom” approach that sacrifices quality, efficiency and performance. When contractors reduce their training costs, apprenticeship training declines. And when training declines, the productivity and workmanship of the construction labor force declines. And that’s a bad business model for local communities, which prevailing wage laws were designed to protect. California’s construction boom is exhausting the number of people qualified to construct and renovate buildings. What’s the solution, and how can your organization help?
The solution is two-fold: Number one, we have to protect and enhance the wage and benefit standards that have historically made the construction industry a viable career pathway to the middle class. The adoption of a “lowroad” business model— which is predicated upon the assembly of a low-wage, low-skill, easily exploitable workforce coupled with unscrupulous business practices such as the illegal misclassification of workers (all of which was covered in dramatic fashion through the compelling series “Contract to Cheat” by the Charlotte Observer) has severely eroded that pathway to the middle class. Secondly, the solution lies in workforce development and training. The low road strategy that permeates our industry has done more than simply drive down wages and benefits in construction, it has also downgraded the value of the skilled crafts. In recent years, leaders of the nation’s largest construction users group have repeatedly expressed great concern over the lack of training by the so-called “open shop” sector of the construction industry. In a June 2004 report, the Construction Users Roundtable (CURT) expressed concern over “a growing gap between demand and supply of skilled construction labor.” Calling this shortage “a major problem facing the construction industry,” the CURT report found that “demographics and (Continued on page 20)
18 California Buildings News • May/June 2015
America’s Leading Architect’s Business Principles Says “Always Looking for New Products”…Stresses Functionality Q&A with Arthur Gensler, Jr., Founder, Gensler, San Francisco Art, as he is very well known globally, founded what is often listed as America’s largest architectural firm, headquartered in San Francisco, with offices in 46 locations around the world, staffed by more than 4,600 design professionals, currently serving more than 2,390 clients, including 55 of 100 of Fortune magazine’s top Global 500 companies. California Buildings News asked Gensler to share some of the insights he made in his new book, as well as insights into the way his firm selects products. In your new book, “Art’s Principles,” you outline ways design professionals can do a better job of running their businesses. What are three of your best tips? 1. Hire the best 2. Storytelling 3. No project is too small for a great client Hire the best people. They may cost more but the return will be much greater and you can trust the results in their contribution. Give them the support they need and then get out of their way. Learn to be a storyteller. Potential and current clients can relate to a relevant story. Don’t use industry gobbledygook. Learn to speak in their industry’s language. Your stories should convey real and relevant experiences, and don’t need to be given directly to an audience if you aren’t comfortable with public speaking. You can share your stories using social media. Architecture is design, but architects are also very concerned with products used to fulfill building design: wall systems, paint, flooring, roofing, solar, windows, restroom fixtures, etc. What guides Gensler in recommending such products? We are lucky that we have excellent and experienced librarians at Gensler, working with us to research products. We use the U.S. Green Building Council (USGBC) evaluation system, as well as the aesthetic and functional
properties of a product to guide and select products. For U.S. testing we rely on the recommendation of BIFMA, ASTM or UL. Does Gensler default in product selection to companies with established reputations or give new manufacturers a chance? We are always looking for new products. We are careful not be to be the first to try products. We want to make sure they really meet the performance criteria presented by the manufacturer. Some firms are more concerned with design over functionality. How does Gensler reconcile these requirements? We clearly first focus on function. If it doesn’t respond to our clients’ needs and requirements, then no matter how wonderful or unique the design we create is, it will not be a successful solution. Do manufacturers respond well to architects’ needs to meet codes or design requirements by innovating products or altering them to meet your needs? If not, how can they improve? I believe the majority of manufacturers have recognized the need to provide functional and appropriate products that are sustainable, innovative and responsive to our
19 California Buildings News • May/June 2015
needs. And most of them will work with us to modify their standard solutions if we feel it is necessary. To what extent are architects involved in stimulating product development? Being in a large metropolitan area and a large firm we get manufacturers reps through our door constantly. They meet with the librarian, technical and design people, always searching out new opportunities for their current products or products they could provide to meet our needs. I believe suppliers are a very important part of the building team. Why are bigger architectural firms superior to smaller ones? Or are they? I don’t believe size creates a superior firm. There is a need in our profession for all sizes of organizations. The superior firm is made up of people who are professional in their approach, respond to the client and community needs, add value through their projects, and enhance the environment.
Gensler with San Francisco’s Bay Bridge in the background. Photo courtesy of Gensler.
20 California Buildings News • May/June 2015
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McGarvey (Continued from page 17) a poor industry image” were hurting the industry’s efforts to recruit new workers. The report attributed part of this demographic trend to the decline in union density. The majority of open shop contractors are simply not committed to training their employees. “The open shop sector as a whole,” the report concluded, “has not supported formal craft training and assessment to the extent necessary to effect real, meaningful, and lasting change.” “Owner companies,” the report concluded, should “only do business with contractors who invest in training and maintain the skills of their workforce. Today, it is readily apparent that the “low road” business model has led to lower wages and benefits, and has degraded the profession of construction work in general; all of which has contributed to a lack of skilled crafts people in construction and to the growing inequality in American society. By contrast, North America’s Building Trades Unions and its signatory contractors invest over $1 billion annually on the world’s most admired apprenticeship training system. Our nationwide apprenticeship training and education infrastructure today consists of over 1,600 training centers across the United States. Further, we are working with policymakers and Community Based Organizations (CBOs) to establish apprenticeship-readiness programs that are designed to provide opportunities for candidates from diverse backgrounds to enter Building Trades apprenticeship programs. Today, we have established such programs in over 75 metropolitan areas across the United States, including 20 pre-apprenticeship training programs in California.
21 California Buildings News • May/June 2015
Disrupting Officing Trends (Continued from page 6) must mount an energetic campaign to go into the colleges and describe how rewarding careers can be in their field. Most people in commercial real estate, it was observed, don’t come to the industry with formal CRE training in a higher education format. Coreland Companies’ Cheryl Todd’s remark resonated with the others when she said she prefers job candidates who have a good attitude over specific training, “because you can’t teach it. You can teach skills.” Trends To Watch: Micro Apartments, Meeting In Nature During IREM-OC’s “What’s Trending Now?” session, TCA Architects’ Eric Olsen said that multifamily tenants are developing much higher expectations from their apartment home than in the past. For one thing, many expect better accommodations for their canine and feline roommates — now that more than 60% of tenants have pets. Architecture, said Olsen, must play a bigger role in designing apartment complexes that meet new and higher standards, such as rooftop environments and better fitness centers. If I am going to rent for one-to-10 years, I deserve a higher, better experience,” he said. “It’s all about outdoor amenities, a public park, areas to enjoy.” Trends are showing that people of all generations are choosing to rent their homes. He added that some companies, like AvalonBay, are experimenting with smaller units, some no more than 450 square feet, because of the discovery that Millennials don’t require a spacious apartment and prefer a complex with amenities. Gensler’s Anne Bretana says she is witnessing an architectural interior trend in which law firms, financial services companies and other non-tech firms are opting for the “creative spaces” usually associated with computer and Internet companies. Panelists observed that since companies average spending 80% on human assets and only 8% on real estate, corporate strategists are coming to see enhanced work environments as adding significant value to the productivity and well-being of their employees. Their goal is to make the workplace more a factor in the race to attract good talent. In addition to providing recreational space, they say firms are providing free or low-cost food on site. Developing a “third place” for employees to conduct business (outdoors areas adjacent to facilities) is also becoming an important new design feature, particularly in California where the weather is usually pleasant, and people can work or conduct meetings on rooftops or in gardens, if they have Wi-Fi. IREM-OC plans to post much of the conference content on its website: www.iremoc.org n
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22 California Buildings News • May/June 2015
Ten California Buildings Rated “Outstanding”
LA, Orange County and San Diego Buildings Lead the Pack
ow do you know if a building is really well managed? There are a number of measurements, but none as well accepted in the commercial real estate industry as a TOBY, which stands for The Outstanding Building of the Year. TOBYs are granted to buildings all over the world by local Building Owners and Managers Associations. Local TOBY award winners are then judged on the regional level—and finally by BOMA International. The entry process is rigorous, the aspirants judged by savvy peers, so winning even at the local level is impressive. Winning at the regional level is an even bigger deal. This year, 10 California properties won in various categories in the Pacific Southwest Division (see box on page 25). They will go on to compete for the BOMA International Award to be announced in Los Angeles in June 30. The awards are important because they reflect upon not only a building’s entire management team, but also on the many vendors who supply services and products that help buildings achieve operational excellence. Judging by TOBY officials includes a review of policies and procedures, preventive maintenance, building quality and condition, renovations, tenants, amenities, staff, training, energy conservation, community involvement and emergency preparedness. Local BOMA contests create a lot of excitement in the industry. For instance, in the San Diego region, Kilroy Top left: San Diego Tech Center, courtesy of EdgeCore Real Estate Group. Right: Kilroy Centre Del Mar, courtesy of Kilroy Realty Corporation.
Centre Del Mar and San Diego Tech Center won regional awards and will advance to the next level. “Bernadette Blanco and the entire Kilroy Realty Corporation team as well as Amy Lane and the entire team at EdgeCore Real Estate did a great job in presenting their respective buildings and their hard work paid off!” said BOMA San Diego President Kristin Howell of Meissner Jacquet Investment Management Services. “We are so proud to have them represent San Diego at the BOMA International TOBY Awards in June. Our fingers are crossed for the win!” Kilroy Centre Del Mar is an intimate 19-acre, Class “A” campus built in 1999-2002 and is prominently located in the heart of the highly desired Del Mar Heights area, San Diego’s major employment center. The distinctive steel-frame, five-building campus is situated amid large courtyards adorned with exceptional water features, premium drought-tolerant/ low-water landscaping, manicured grasses, beautiful palms and immaculately maintained grounds. Surrounded by an abundant mix of dining, shopping, hotels, canyon trails and business services, both on-site and within walking distance, Kilroy Centre Del Mar provides an unparalleled work environment to tenants that value green, efficient workspaces to attract and retain top talent. The campus affords employment for approximately 1,400 people, 50 physicians, and medical care for 700-800 patients daily, all of whom help sustain the surrounding businesses and contribute to the greater local economy. “Receiving this award for the second year in a row at the regional TOBY level is an unbelievable honor and I couldn’t (Continued on page 24)
23 California Buildings News • May/June 2015
BOMA International’s LA Conference Features Major California Thought Leaders BOMA International’s Every Building Show in Los Angeles is great for showcasing your products and services and networking, but it is also the industry’s leading educational conference. It’s a great opportunity to up your property management game. And a number of Californians are in the forefront of thought leadership during the June 28-30 event at the LA Convention Center. For instance, renowned facilities leader George Denise of Oracle is presenting during a program called “No and Low Cost Energy Efficiency Strategies from BOMA BEEP” along with Craig Sheehy of Folsom’s Envision Realty Services and Brenna Walraven of Corporate Sustainability Strategies, based in Huntington Beach. Patrick Copps in Orkin Commercial Services’ Riverside office will address the issue of pest control on the increasingly popular green roofs. Doug Walker of Trane’s City of Industry office will describe how you can use data to reduce
building energy and improve cooling. Optimizing energy is a popular topic this year, one that Everliance’s Chris Morris of Irvine will also discuss in his presentation. From BOMA San Francisco, President Blake Peterson will be on a panel describing how people can take their real estate career to the next level. Akiba Davis, who heads widely recognized educational programs at BOMA SF, will also participate in a BOMI panel discussion for local BOMA leaders on how to improve their educational efforts. Michael Hummel of San Franciscobased Environmental Building Strategies will offer advice on retrofitting for zero net energy goals, as will Drew Radachy of San Francisco’s Novo Construction and Danville architect Galen Grant of FCGA Architects. If deal-making is part of your job, you can get some useful tips from the veteran duo Nancy and Tom Gille, principals of San Francisco’s Real Systems and industry leaders (shown in photo above).
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24 California Buildings News • May/June 2015
BOMA Leaders Advance CRE Interests in Sacramento Commercial real estate leaders from across California converged recently on the State Capitol to address vital industry issues with lawmakers. The meetings, arranged by the Building Owners and Managers Association of California, focused on keeping commercial real estate thriving. The annual California Commercial Real Estate Summit (CCRES) was attended by over 80 real estate leaders. They were divided in 17 “teams” of advocates who met with almost half of the Legislature. The focus of this year’s CCRES was support for a number of bills that reform Caifornia’s ADA laws as well as support for a measure that would fund energy efficiency PACE programs and a measure to reform the AED statutes, according to a statement issued by BOMA California. The groups also pressed hard to support Proposition 13 and oppose a recent call by public employee unions to move forward with a proposal to create a split-roll property tax. They also presented their 2015 Legislators of the Year awards to Assembly member Ken Cooley (D-Sacramento) and Senator Jean Fuller (R-Bakersfield). And delegates heard from two statewide constitutional officers (State Treasurer John Chiang and Insurance Commissioner Dave Jones, as well as Governor Brown's Secretary for Natural Resources John Laird.) See the following summary of key legislative issues that BOMA California is tracking, with recommendations.
For more information about how you can support the efforts of BOMA California, visit: www.bomacal.org
SB 251 (Roth; D-Riverside) Civil Rights; Disability Access – SUPPORT Enacts a tax credit for businesses that make accessibility improvements and requires certain state and local agencies to help businesses make accessibility improvements. Location: Passed the Senate. AB 450 (McArty; D-Sacramento) Energy Efficiency PACE Program Financing - SUPPORT Would authorize the use of the moneys in the Greenhouse Gas Reduction Fund to provide funding for the implementation of the PACE Reserve program. This bill contains other existing laws. Location: Passed the Assembly. AB 1342 (Steinorth; R-Rancho Cucamonga) Commission on Disability Access - SUPPORT This bill appropriates funds to the California Commission on disability Access (CCDA) and seeks to promote compliance with disability access requirements. Location: Passed the Assembly. SB 658 (Hill; D-San Mateo) AED “Defibrillator” Statute Reform – SUPPORT This bill repeals or reduces various requirements relating to persons or entities who acquire automated external defibrillators (AEDs), including scaling back requirements that employees complete training, and reducing the inspection requirements from once every 30 days to once every 90 days. Location: Passed the Senate. SB 287 (Hueso; D-San Diego) “Defibrillator” Installation Mandate – OPPOSE Mandates new commercial buildings with a max occupancy of 200 (300 for Group A Assembly occupancies) or more install AEDs. Location: Passed the Senate.
TOBY Winners (Continued from page 22) be more proud of the Kilroy Centre Del Mar team,” said Bernadette Blanco, senior property manager for Kilroy Realty Corporation at Kilroy Centre Del Mar. “This recognition demonstrates the dedication to quality operations and management that continues to improve each day at Kilroy Centre Del Mar, and we look forward to representing San Diego in the International TOBY Awards competition this summer.” San Diego Tech Center is an impressive 11-building campus including an eight-story office building, three two-story buildings, and five one-story buildings spanning across approximately 655,000 square feet. The 38-acre campus serves as a landmark of San Diego’s cutting edge technological capabilities surrounding amenities, environment,
telecommunications and tenant employee satisfaction. The newly improved campus features an abundance of amenities including a breathtaking five-acre Japanese garden, Karl Strauss Brewery, a private fitness center with separate aerobic studio, on-site fitness director and massage therapist, halfmile walking trail, swimming pool, tennis courts, basketball courts, volleyball courts and racquetball court. “We are incredibly proud of the tremendous teamwork demonstrated during this competition, leading to wins on both the local and regional levels” said General Manager Amy Lane. n See more TOBY winners on next page.
25 California Buildings News • May/June 2015
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California Buildings Win TOBYs in Pacific Southwest Division Under 100,000 SF • Tustin Centre, Orange County Managed by CBRE, Inc. 100,000 - 249,999 SF • Orange City Square, Orange County Managed by CBRE, Inc. 250,000 - 499,999 SF • 400 & 450 N. Brand, Greater LA Managed by Cushman & Wakefield of California 500,000 -1 Million SF • 10100 Santa Monica, Greater LA Managed by Hines Over 1 Million SF • AON Center, Greater LA Managed by Shorenstein Realty Services Corporate Facility • CalSTRS HQ, Sacramento Managed by JLL Industrial Office Building • Towne Centre, Orange County Managed by LBA Medical Office Building • 450 Sutter Street, San Francisco Managed by Harsch Investment Properties Suburban Office Park (Low-Rise) • Kilroy Centre del Mar, San Diego, Managed by Kilroy Realty Corporation Suburban Office Park (Mid-Rise) • San Diego Tech Center, San Diego, Managed by EdgeCore Real Estate Group
26 California Buildings News • May/June 2015
Workplace Design Revolution (Continued from page 11) A Workforce Design Revolution Has Begun The authors of Change Your Space, Change Your Culture report on what is becoming a “revolution in the workplace.” Their efforts draw wisdom from a multidisciplinary coalition called Change4Space, comprised of some of the world’s leading companies and organizations in the greater buildings sector. These include firms like Haworth, Balfour Beatty, Google, the U.S. General Services Administration, Autodesk and the Bill & Melinda Gates Foundation. Contributing research were executives at IBM, General Dynamics, Jones Lange LaSalle, Cushman & Wakefield, CBRE and many others.
“The workplace becomes the catalyst, the stage, and the enhancer for new values to emerge and grow,” say Change Your Space authors.
“The walls are coming down,” says MindSHIFT thought leader Rex Miller, Haworth’s Mabel Casey and Balfour Beatty’s Mark Konchar, who wrote Change Your Space. It is a manifesto with a mission: “Topple institutional disengagement and, thereby, liberate people to discover their best way to work.” As this primer for more efficient workplace design proclaims, “When you change your space, you change your culture.” The authors explain, “The workplace becomes the catalyst, the stage, and the enhancer for new values to emerge and grow.” A more engaging workplace, they say, can have a $1 trillion positive impact on the economy. They say that by not realizing that a person’s life is integrated, American business loses that sum of money each year. “Personal health, safety, marriage, family, commuting, finances, and other burdens are integrally related to our ability to achieve and produce.” The whole person is negatively affected by traditional structures, they maintain, saying, “For decades we have been building the structures of our lives as silos, cubicles, bubbles, and other isolating pods, cultures of disconnection.” The result is costly absenteeism and employees who show up for work but don’t perform well. The toxic bottom 20 percent of employees costs U.S. businesses $550 billion a year, stress drains another $300 billion, chronic health conditions balloon to over $1 trillion, and working in sick buildings adds another $60 billion.
That totals 13 percent of the U.S. Gross Domestic Product,” they say. They define “toxic” people as those sociologists say impose a drag on good work in many ways. Buildings that stimulate engagement, they maintain, will reduce toxic behavior and boost the number of people who get excited about achieving workplace goals. The authors suggest that buildings not be viewed as “sunk costs,” but rather as assets. “If we could see (buildings) as the way to shape culture, we might begin to understand that (they) grant a great return on investment,” by spurring productivity. “The new office,” they say, “is a place of revolution — the deposing of the exhausted forms and structures born in the industrial age. That crumbling age is being replaced by a new workplace and new ways to organize, create and collaborate.” n
Like the spaces shown on these pages, buildings that stimulate engagement will reduce toxic behavior and get people excited about achieving workplace goals. Photos courtesy of Steelcase.
27 California Buildings News â€˘ May/June 2015
28 California Buildings News • May/June 2015
Furniture Makers Accommodate Modern Office Strategies With Fresh Designs
rogressive workplace furniture makers like Steelcase and Haworth believe people should have more control over where and how they work. They believe a variety of privacy and posture options allow employees to do their best work and make workplaces more collaborative. “Humans are distractible. We shouldn’t see this in the pejorative sense, though—it’s simply a human biological response to a stimulus. We designed the Brody (work station) for the brain and the body, to help workers and students manage distractions. Brody isn’t meant to replace traditional desks, but provides a destination that someone can escape to for a short time where they can get into “Flow” and get work done,” says Steelcase designer Markus McKenna. Right photo: the Brody WorkLounge gives workers choice and control over where and how they work and eliminates distractions. Photo courtesy of Steelcase.
Haworth is a global leader in modern office design. “From our research, Haworth knows that people desire autonomy and choice in workspaces,” says spokesperson Julie Smith. “Sometimes, open plan doesn’t provide either. Our furniture is designed to address that by providing a variety of settings: individual, group, highly interactive with connection to social activities, comfortable to recharge, focused heads-down work or quiet reflection.”
Left photo: furniture is designed to fit a variety of settings for individual, group and interactive work. Photo courtesy of Haworth.
29 California Buildings News • May/June 2015
AIA Names California’s Ehrlich Architects Best U.S. Firm Culver City Firm Recognized for Multicultural Influences, Natural Designs Little did Steven Ehrlich realize when he volunteered years ago to work for the Peace Corps in Africa that he would come away with visions of architecture that would one day contribute to his LA Area firm’s recognition as America’s best architectural team of 2015 at AIA’s national conference in Atlanta. In announcing the award, the American Institute of Architects noted that while in Africa “Ehrlich gained an appreciation for simple, natural materials and vernacular solutions to energy, sustainability, and building performance challenges. Ehrlich found opportunities to renovate properties designed by architects high up in the California Modernist canon (like Richard Neutra, FAIA), which helped him to develop a confident, loose-limbed, but still traditional Modernist aesthetic. But his experiences in Africa, with building traditions created years before Modernism demanded a total rupture with the past, pushed him to develop an architecture that was more inclusive, responsible, and responsive than pure Modernism.” The firm’s “Multicultural Modernism” style derives from a philosophy stemming “from the realization that there is value in looking outside of one’s familiar circle and observing another’s as closely as possible,” the firm says. “We don’t impose what is the correct way to practice architecture, but we listen and observe people and place,” said partner Takashi Yanai, AIA. The firm conducts in-house pecha kuchas (rapid slide shows), where staff shares ideas and experiences. They range in ages from just out of college to experienced and sage
mentors whose careers span decades. The firm is comprised of 50% women. AIA says “Ehrlich Architects see themselves as “architectural anthropologists”— exploring ancient, developing-world building traditions and situating them in contemporary buildings to solve contemporary problems. Japanese-style courtyards, Middle Eastern lattice screens, and vernacular mud construction have all been ways they enrich contemporary architecture with ageold multicultural building elements.
Rendering at left: Ehrlich is teaming with executive architect Ware Malcomb on The Elevon at Campus El Segundo, which integrates retail, dining and social environments that will facilitate the natural extensions of employees’ work and social lives-. Rendering by Bezier CG. Photo at right: Partners Mathew Chaney, AIA, DBIA, LEED AP; Takashi Yanai, AIA; Steven Ehrlich, FAIA, RIBA and Patricia Rhee, AIA, DBIA, LEED AP. Photo by Miranda Brackett.
30 California Buildings News • May/June 2015
Multifamily Innovations Attract Active Millennials
Multifamily firms like AvalonBay Communities in San Francisco, seeking to accommodate growing Millennial residents, are innovating lifestyle amenities. Maintenance Manager Vladimir Rybakov (right) designed and built a bike maintenance station in the garage at Sunset Towers, so bikers could keep their rides in good condition. Community Supervisor Richard Brautigam (left) says the bike repair stand was built for less than $100 in materials.
Robust Multifamily Industry (Continued from page 8) Owners of older properties are making renovations and adding features that keep their apartment experience competitive with that of newer products on the market. (See the Avalon bike-repair item on left.) “The renter nation is very strong today,” said Bosshard. “We’re seeing more renting by choice, people willing to pay more for luxury products.” Yet another challenge the execs noted was the impact of California’s drought on tenants’ water use habits and landscaping, where thirsty lawns must give way to more drought-resistant plants and the greater use of stone. They also said more gray water will likely be used in landscaping, as well as smarter irrigation techniques and the use of technology to forecast when sprinkler systems should be triggered. The attraction of California’s high-paying jobs, such as in the tech sector, has put pressure on the multifamily industry to maintain enough employees to serve properties. Scott said that in this tight job market, personnel costs will rise and it will be more difficult to retain employees. Some manufacturers say labor shortages will result in the use of more labor-saving products like automatic package-acceptance areas that relieve workers from having to manage the increase in packages flowing into apartment offices as people purchase more on the Internet. Such new devices electronically alert tenants that a package has arrived in a storage area that they can access using a code—without having to take a leasing or management office staffer away from other duties. Bissell and others said that technology is also improving apartment living by leveraging mobility devices to send alerts, either safety messages or routine memos. Bosshard said modern apartment managers need to “make sure everything you do is smartphone optimized.” He also said that social media has become an essential marketing tool, since prospective tenants place more credibility on tenant comments made on websites than on a company’s marketing messages. Landlords should engage online reputation management services to ensure accurate portrayals of their properties, he said. n
AIA SF Design Awards (Continued from page 7)
Additional Award Winners: 888 Brannan Architect: Gensler
Rene Cazenave Apartments Architect: Leddy Maytum Stacy Architects Associated Architect: Saida + Sullivan Design Partners
SHED Store and Cafe Architect: Jensen Architects Photography: Mariko Reed
San Bernardino Justice Architect: Skidmore, Owings & Merrill LLP
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29 California Architects Named National AIA Fellows That California is home to a significant amount of architectural talent was celebrated at the American Institute of Architects annual conference in Atlanta. The AIA elevated 29 Golden State architects out of 147 from throughout the nation to the College of Fellows â€”almost 20 percent. The Fellowship program was developed to elevate those architects who have made a significant contribution to architecture and society and who have achieved a standard of excellence in the profession. Election to fellowship not only recognizes the achievements of architects as individuals, but also their significant contribution to architecture and society on a national level.
The Fellows named were: Mr. David D. Alpert, FAIA, LEED AP, MBA; Ms. Pamela Anderson-Brule, FAIA; Mr. Glenn E. Bauer, FAIA; Mr. Gail Peter Borden, FAIA, NCARB; Mr. Clifford B. Curry, FAIA; Mr. Kevin J. deFreitas, FAIA; Mr. Neil M. Denari, FAIA; David M. Diamond, FAIA; Stuart Eckblad, FAIA; Ms. Julie Eizenberg, FAIA;Margaret P. Griffin, FAIA; Ms. Sharon Johnston, FAIA; Christ J. Kamages, FAIA; Janis Kent, FAIA; Mr. Arnold Lee Lerner, FAIA; Ms. Jeanne E. MacLeamy, FAIA; Mr. Kapil Malik, FAIA; Ms. Diane E. McLean, FAIA; Mr. Gregory R. Mottola, FAIA; Mr. Robert L. Ooley, FAIA; Ms. Joyce K. Polhamus, FAIA; Mr. Richard R. Pugh, FAIA; Mr. William B. Roger, FAIA; Mr. William J. Schmalz, FAIA; Mr. Adam M. Shalleck, FAIA; Mr. Cory M. Ticktin, FAIA; Mr. Joel A. Tomei, FAIA; Mr. Alyosha G. Verzhbinsky, FAIA and Mr. Jonathan R. Ward, FAIA.
Congratulations New AIA Fellows! A group of new AIA fellows from California gathered at a party sponsored by AIA California after the awards recognition at the AIA conference.
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