Q2 2017 â&#x20AC;˘ $5
...Healthier and cleaner workplaces make for more productive employees and are a major HR asset
Over-Regulating Design Costs Time & Money
Beverly Center Innovations
Rooftop Visions of the Future
Contents Buildings Are Getting Healthier Our cover story package this edition explores ways that buildings can be healthier for occupants — and their surrounding community: buildings wellness and cleanliness. These important activities reinforce each other and constitute much of the overall effort to make structures more sustainable for people beyond just reducing energy consumption. More than two decades ago, building owners and operators began to focus intently on the more tangible goals of limiting the use of energy. The “green” movement is growing to enlarge the overall sustainable effort to not only reduce energy but actually convert buildings into places that foster greater productivity for tenants and happier multifamily residents. Wellness is becoming an investment with big financial paybacks in the overall health of organizations and better homes.
“Get Back to the Office!” Says IBM Reversing decades of offsite working, tech giant IBM has ordered most of its workforce that now telecommutes to get back to the office, the Wall Street Journal reports. Why have Big Blue and other major companies reversed their former telework strategy? Slashing commercial real estate costs — a widely touted benefit — has not paid off in employee productivity. And since real estate spending is just a fraction of a company’s human resources costs, many companies’ managers believe they will get better value from greater on-site collaboration and closer management. Bank of America, Aetna and Yahoo are other prominent examples of companies calling people back to the office. If the trend continues, it will be a boom to the commercial real estate industry, but the country will need to invest much more in mass transit to avoid the many perils of even heavier rush-hour traffic.
Cough…Cough…Cough With buildings using 40% of energy, we need to continue reducing pollution. Recently, the American Lung Association’s State of the Air 2017 report found California is home to the majority of the Top 10 cities with ozone and particle pollution in the United States. More than 90 percent of Californians live in areas with unhealthy air at some point during the year, a serious public health concern at a time when the federal government is considering rolling back clean air protections. “Our state’s air quality continues to hit unhealthy levels each year, putting Californians at risk for premature death and other serious health effects such as asthma, COPD, and lung cancer,” said Olivia Diaz-Lapham, President and CEO of the American Lung Association in California. “We are seeing continued improvement in parts of the state, but there are too many areas where residents are breathing dirty air and we must work to reduce the sources of air pollution.” That said, there is significant progress in the fight against ozone (also known as smog). Eight cities: Los Angeles, Bakersfield, Visalia, ModestoMerced, Sacramento, El Centro, San Jose-San Francisco and San Luis Obispo, had the fewest average unhealthy days for ozone pollution in the 18-year history of the report. — Henry Eason
Salesforce Obelisk Rises
U.S. Top Architecture Firm
Healthy Buildings Key to Productivity
Cleaner Buildings Are Healthier
Centenarian Hotels Shine
AIA SF Award Winners
Modern Workplaces Evolve
Medical Office Trends
Rooftops: Profitable Amenity
Training Green Electricians
Building Regs Drive Costs
Cover images: Getty Images. Hotel image: courtesy of the Palace Hotel.
California Buildings News Team Ellen Eason, Publisher firstname.lastname@example.org Henry Eason, Editor email@example.com Contributing Editors Zachary Brown, CBRE Bob Eaton, Eaton Hotel Investments Jessica Handy, CodeGreen Solutions Rich Lerner, Construction Consultant Michael F. Malinowski, AIA, President, Applied Architecture Inc. Katherine A. Mattes, Real Estate Consultant Larry Morgan, Facilities, SAP Steven Ring, Fulcrum Real Estate Development Carlos Santamaria, CEES-Advisors
Advertising Information Ellen Eason, firstname.lastname@example.org 415.596.9466 © Copyright 2017 Eason Communications LLC PO Box 225234 San Francisco, CA 94122-5234
www.cabuildingsnews.com Copyright © 2017 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.
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4 California Buildings News • Q2 2017
Salesforce Obelisk: New Inflection Point for Downtown San Francisco Tenants Will Occupy Highest Space West of Chicago in the LEED Platinum Tower Developers, architects and builders rarely describe their deeds with literary flair— nor do they need to do so. What they achieve speaks for itself in the structures they create. Their business tenacity, design artistry and the brute heroism of thousands that are required to build something grand is expressed in the thing itself. The new Salesforce Tower in San Francisco is its own eloquence, a thick, gleaming steel 61-floor obelisk rising above all other buildings west of Chicago. There were few eloquent expressions uttered April 6 at 415 Mission Street as hundreds gathered for the “topping off” ceremony, but there was natural drama in that day of enormous achievement and universally cheery faces from the many hard-hat workers to pin-striped-suited execs. During the event people eagerly signed their names to the final steel beam that was hoisted to applause up and up into the sky until it came to rest on the roof 1,070 feet above. Architect Fred Clarke of Pelli Clark Pelli— whose firm designed the building—came closest to inspired prose when he said, “This tower is more than an office building. It is fundamentally an act of optimism, comparable to a pyramid or an obelisk, marking a new place on Earth reaching for the heavens.” (The under-construction Wilshire Tower in Los Angeles aspires to a slightly taller height but will be shorter in occupiable space. Salesforce Tower surpasses the Transamerica Pyramid by 217 feet.) (Continued on page 48) Salesforce Tower rises. Photo credit: Boston Properties.
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6 California Buildings News • Q2 2017
Architecture Must Address Big Issues Beyond Property Lines Says California-based Winner of 2017 National AIA Architecture Firm Award
with Bill Leddy, Principal Leddy Maytum Stacy Architects Q: First, congratulations on winning this year’s AIA’s Architecture Firm Award, only the third San Francisco firm to achieve this national honor. The award is given for a firm’s “cumulative effect on the profession.” What would you say your firm’s effect has been? A: Our effect has been in two areas that we see as interrelated: advancing best practices around sustainable design integration and addressing social equity through design excellence. We think these two areas are inextricably linked because environmental and social justice are two of our society’s greatest challenges. They also happen to be areas in which the architectural profession can have a lasting impact.
Q: We understand that you have championed the use of metrics as part of design awards’ processes. Can you explain why this is important? A: A major challenge of our generation is to build a resilient, low-carbon future for our communities and our nation. Architects and the construction industry in general are in a unique position to help lead this historic effort, and to do this we need to have reliable metrics to gauge our progress. This is why we have championed the inclusion of building performance metrics within the AIA’s design awards programs at the national and state levels. We need to expand our conception of architectural excellence to include the seamless integration of resilient strategies — we need to marry poetry and performance. Good design IS “green” design. Q: Design how your firm “shifts the landscape” in its designs. A: In a profession where the majority of firms are less than 30 people, we hope to offer proof that small firms can become engaged in our national dialogue around important issues, like social equity, sustainability, and universal design. Even though we’re a small firm, our work has been internationally recognized for its creative, comprehensive response to the unique characteristics of each site and circumstance. Each of our buildings is anchored to its specific time and place through the integration of innovative environmental strategies, a respect for tradition without imitation, and careful attention to the craft of construction. The other thing I would say is that making architecture that is attuned with natural Photo above: Leddy Maytum Stacy partners: Marsha Maytum, Bill Leddy and Richard Stacy. Photo credit: Colin Lenton.
7 California Buildings News • Q2 2017
systems and reduces its impact on global climate change, and the environment in general, has been a central passion of ours since the 1970’s. It is the fundamental responsibility of architects to design buildings that reduce the impacts of climate change. This is something that we see as an epic challenge for our generation. It’s been gratifying to see the rest of the architecture and construction industry become more and more focused on this. Q: Your partner Marsha Maytum was quoted as saying, “Everybody deserves good design.” But, realistically, how can everybody afford good design? A: Too often, the general public mistakenly assumes that good design is just a luxury amenity for the wealthy. But good design, by our definition, is “making the most with the least.” This is why one focus of our practice is affordable housing and other projects that serve disadvantaged populations. We’ve shown that this can be done. Architecture has a role in everyone’s life, every day. It’s not just a “special” thing. Certainly we have museums, churches, and other buildings that have their own requirements and may need to stand out in the urban fabric. But at the same time, there are many other spaces where architecture’s role is to frame our everyday experience and make it both more effective and more meaningful. Architecture is about more than “style.” If made well, architecture is far more profound and useful than the latest fashion statement imposed upon our landscapes. It has a bigger story to tell. It reaches beyond the property line, having an effect on real issues like climate change and social justice in the lives of people every day. If you asked a group of architects why they chose their career, some might say, “because I’m an artist.” But I think most of us would say something like, “I want to make really great places for people. I want to build a better world.” What time is better than now? Q: How would you say that your firm advances social consciousness in its designs? A: Through our work with nonprofit affordable housing developers, we provide inviting, sustainable housing for the formerly homeless, disabled veterans, foster youth at risk of homelessness, and low-income seniors suffering from HIV/AIDS, among other groups. At the Ed Roberts Campus we created a community and service center for the disabled rights/independent living movement in Berkeley, California, that serves as an international model of universal design applied at a civic scale. The Sweetwater Spectrum
Located at Fremont’s historic Five Corners area, the firm’s Laguna Commons project is a step forward in the city’s plan for higher density, transit-oriented development. Photo by Bruce Damonte.
Community provides a new housing model for adults on the autism spectrum, addressing a growing national public health crisis. These projects and others all have a ripple effect within the communities they serve, helping to revitalize their neighborhoods, embrace disadvantaged populations, and celebrate the rich diversity of the human condition. Q: How can architects achieve sustainable goals in design, and to what extent do energy savings and the higher productivity and health of occupants argue for greener projects? A: Objective research studies provide overwhelming evidence that healthy environments deeply connected to the natural world deliver enormous benefits in occupant satisfaction, wellbeing, and productivity. At the same time, we also know that the built environment is the planet’s largest contributor to carbon dioxide emissions, and thus to climate change. Designing and building toward a healthy, lowenergy/low-carbon world is not only good for the planet, for our children and grandchildren, and for all living things, it’s simply good business. This is why architects and the construction industry should continue to resist the efforts of the current federal administration to debunk science and turn back the clock on environmental regulation. We need to keep pushing forward, advocating for nationwide green building codes, promoting advanced sustainable technologies, and designing exemplary, high-performance buildings that inspire our communities. One key aspect of our work is the creation of innovative (Continued on page 8)
8 California Buildings News
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(Continued from page 7)
educational environments that allow students and teachers to live a low-carbon life every day. These projects are particularly important because they reach beyond the student body and the faculty, speaking to parents and the wider community about living in this way. This is one of the main reasons we’ve been drawn to educational work. They are billboards for a sustainable future. Q: What else would you like to say that has not been elicited by our questions? A: We live in a complicated, accelerating world. Young architects in particular come out of school and are barraged by a whole variety of complicated software and tools. So we have increasingly felt the responsibility to create a practice that helps create an environment where those young architects can thrive. It’s in our interest—and theirs—to have well-rounded, accomplished professionals who are not just great designers, but also great technicians; not just great technicians, but
great communicators. And also global citizens. That’s why we have a mentoring program in our firm, and it’s why we strive to create an open, transparent work environment. We take great pride and great care in helping young architects develop fully. Q: What’s ahead for your firm? A: We hope to continue to have opportunities to address those big issues beyond the property lines of the project. This includes designing more net-zero energy projects and finding new and better ways to serve diverse populations through architecture. I really do believe that there’s never been a more exciting time in the history of architecture to be an architect. I tell students this all the time with varying degrees of incredulity on their part. But it’s true, because we have unprecedented environmental and social challenges to meet, and through new technologies, the powerful tools that will help us meet them. n
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10 California Buildings News • Q2 2017
Healthier Buildings Key to Greater Productivity Firms, Organizations Gain Strategic Advantages from Better Environments
etter buildings can make us better at all we do. More specifically, the way buildings are designed and the products and services that go into them and the operational procedures that are followed can make people healthier, more productive and happier. That’s the message that’s resonating more and more throughout the buildings world. And since we spend 93% of our time in buildings, it only makes sense that we follow the “well” building standards that are evolving. That was the overall message of the Municipal Green Building Conference & Expo produced recently by the U.S. Green Building Council of Los Angeles at the SoCalGas conference center. Here are some facts that can impact an organization’s effectiveness, presented by USGBC-LA Executive Director Dominique Hargreaves: z Optimum air quality can boost productivity from 8-11%. z Not having enough clean drinking water avail able (being hydrated) impairs productivity by 2%...a condition that affects 80% of us. z Lack of natural light is considered the number one workplace health hazard by 36% of psychologists and psychiatrists. z Performance drops 66% when people are exposed to distracting noise. z Temperatures cooler than desired cut perfor mance 6%, and 4% when room conditions are too warm. Numbers crunchers at companies and organizations can quickly estimate how investing in solutions to these problems could improve their profitability and effectiveness. Others at the Los Angeles conference— like sustainability consultants Jennifer Berthelot-Jelovic and Melissa Gutierrez-Sullivan— said even greater wellness attainments are possible when organizations encourage fitness and make facilities and programs available to their employees. The onsite or nearby availability of healthy food (instead of vending machine junk) contributes to overall health and well-being. Discouraging long-term sitting is another wellness goal. They also stress the need for building features, furniture and programs that encourage a better state of mind.
What’s the Wellness ROI?
Exact calculations of the benefits of well-designed spaces, of course, will vary by organization. But Southern California Gas Company’s Sustainability Program Manager Carlo Gavina provides an outline that should get the attention of any C-Suite or organizational leaders: z Improved employee attraction and retention z Better health, meaning lower healthcare costs and less absenteeism z Improved energy and better sleep z Increased productivity z Higher property value z Greater industry leadership profile z Improved environment for greater community When an organization spends 9% on building rental, 1% on energy and 90% on its employees (an average estimated by the World Building Council), then making any changes that improve employee or occupant performance will have a huge bottom-line benefit. What happens when an organization redesigns its workspaces according to “well” principles? Gavina cited Gensler architectural study results that revealed 83% of workers felt more productive, 92% said the new space had a positive effect on their health and well-being, and 93% said they are better able to collaborate with others.
CBRE’s and Delos’ Leadership
CBRE, the world’s largest commercial real estate company, is taking a lead in promoting well standards. It has formed an alliance with Delos, a wellness real estate and technology firm. The alliance is dedicated to transforming indoor environments into spaces that help nurture, sustain and promote human health and well-being. In 2013 CBRE became the first company in the world to achieve WELL Certification for a commercial office space through the WELL Building Standard™ (WELL) pilot program with the opening of its Global Corporate Headquarters in Los Angeles. As a continuation of its leadership in the wellness space, CBRE will pursue WELL Certification for at least 100 buildings, sites or offices managed by or associated with CBRE worldwide. (Continued on page 16)
11 California Buildings News â&#x20AC;˘ Q2 2017
The downtown Los Angeles headquarters of CBRE feature a Circadian Lighting System plus large windows for abundant natural light. Photo credit: Robert Downs Photography.
California Buildings News
Striving to Be the Best for More Than 91 Years At Able Services we pride ourselves on being the best in the industry. Do you know of another privately-held and family-owned organization that services more than one billion square feet? Stretching from the sands of Silicon Beach to our state’s capital, we’ve been very fortunate to share in the success of our clients. California is our home base and will always be our first priority. It was in California that we started our business in 1926 and it was in California that we started offering our GreenAble cleaning and sustainable engineering services. Today these solutions are present in CBDs all throughout the country and save our clients millions of dollars in operating costs every year. It all started here in California, the state where innovation thrives. Able Services has been a member of BOMA for over 40 years and through this association we’ve watched evolving
skylines, lobby renovations, industry trends, and the latest wave of young professionals entering the workforce. What hasn’t changed is our entrepreneurial California spirit—striving to be the best and to deliver satisfaction to our customers. We deliver solutions using modern technologies mixed with skilled human hands. Able’s technologies keep buildings in the LEED and create transparency for our clients. With verifiable work orders, energy dashboards, and digital preventive maintenance programs, our clients experience the delivery of excellent operations and have the data to support transparency. You can’t manage what you don’t measure, and our technologies provide actionable insights to your building’s operations. Having the best technology doesn’t make our solutions the best in the business. 91 years ago, we learned that it wasn’t the best squeegee or wrench that made our customers happy, it was our employees that make the difference. The best people make us the best at providing solutions for facility operations. Alongside our clients and employees, we work together to deliver valuAble work-life experiences. Able Services has gradually built up enough trust and loyalty to serve over one billion square feet of real estate, including 45k residential units, major sports stadiums, hospitals, data centers, universities and hotels. Interested in learning more about Able? Visit our blog: ableserve.com/news and follow us on Twitter, Instagram, Facebook, and LinkedIn @ableserve.
Above left: Members of Able’s Los Angeles janitorial team tabling for Earth Day. Center: Able President Mark Kelly and Bruce Manning at the largest multifamily development west of the Mississippi.
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14 California Buildings News • Q2 2017
Cleaner Buildings Are Healthier Buildings Product Innovations and Better Practices Can Reduce Exposure to Disease The next time you take a long-distance flight, you overlooked area. Handwashing,” says SCA spokesperson may well be a bit nervous about the air quality within Carrie Schuster. your closed cabin, with air constantly recycling and at “In the Tork Office Trend Report launched in 2016, least some of the other passengers showing signs of being open office spaces and shared desk spaces are a growing ill. Well, according to a recent study by Europe’s equivatrend, and with that comes growing hygiene needs like the lent of the Federal Aviation Administration (the European frequency that desks and keyboards are cleaned. Over half Aviation Safety Agency), the air you breathe in an office of workers globally, that were surveyed for the report, often building is more contaminated. We already know that worry about getting infected by colleagues going to work surfaces within offices quite efficiently transmit a raft of diseases, from elevator buttons to bathrooms to tabletops to shared kitchens. One of the most important aspects of wellness in a buildings environment is cleanliness. And cleaner buildings certainly make for healthier inhabitants. Each year, poor health costs the U.S. economy $227 billion from “lost productivity” due to employee absenteeism because of illness, or “presenteeism,” when employees report to work but illness keeps them from performing at their best. Many companies are producing products and providing services that ensure fewer germs and toxins. “Viruses can survive on hard surfaces for several days and if you aren’t cleaning those surfaces on a regular basis then you risk the consequence of infecting more people. Often workers don’t stay home when they are sick and when you multiply the amount of people that have a virus in The XLERATOR® Hand Dryer uses a focused, high-velocity, heated stream of air to dry hands an office then you can easily visualize and is the fastest and most hygienic hand dryer on the market. Photo courtesy of Excel Dryer. the spread of illnesses. Door knobs and countertops made of non-porous materials like stainless steel and plastic are great for the when they are sick. Yet many still don’t wash their hands survival of viruses if they are not regularly cleaned,” says properly, frequently enough…or at all. For those who do, San Francisco-based Able Services President Mark Kelly. many aren’t cognizant of the fact that their hands can still come into contact with illness-causing bacteria on surfaces Products That Help such as faucets and door handles. The simple act of using Keep Buildings Cleaner hand towels to turn off the faucet or opening a door can “Wellness in the office environment is a hot topic, help prevent the spread of germs. and holistically includes many things such as providing “Hand washing education programs and clear signage healthy air quality and natural lighting, programs to reduce can be critical to tackling these expanding concerns and stress, locally sourced organic foods, and exercise facilities. reduce the cost of sick time.” Yet few are addressing a simple and inexpensive, yet
15 California Buildings News • Q2 2017
Range of Workplace Health Challenges Respiratory ailments: According to the National Institute of Occupational Safety and Health (NIOSH), “Millions of people suffer from allergies caused by everyday exposures to agents such as dust mites, cat dander and pollens. Agents encountered by workers can also cause allergic problems such as asthma, nasal and sinus allergies, hives, and even severe anaphylactic reactions. Examples of these work-related agents include animal proteins, enzymes, flour, natural rubber latex, and certain reactive chemicals. Asthma is one of the more serious problems that can be caused by work-related allergy. It can cause recurrent attacks of symptoms such as wheezing, chest tightness, shortness of breath, and coughing. In severe cases, these symptoms can be disabling. Fortunately, when potential hazards are recognized, work-relate allergies and asthma can often be prevented or their effects minimized.” Ergonomics issues: “The goal of ergonomics is to reduce stress and eliminate injuries and disorders associated with the overuse of soft tissues e.g., muscles or tendons, awkward posture, and repeated tasks. This is accomplished by designing tasks, work spaces, controls, displays, tools, lighting, and equipment to fit the employee´s physical capabilities and limitations,” says NIOSH. Viruses: Since influenza and other viruses cause thousands of deaths and billions of dollars in lost work, NIOSH urges that encouraging people to get flu shots is the first line of defense—even is companies have to conduct flu clinics in the workplace to achieve a higher level of protection. Only a slight majority of people ever get flu shots. Contaminated surfaces and airborne particles are the primary means of transmitting viruses. Stress: What workplace doesn’t have stress? And it can degrade productivity and, frankly, make people sick. One of the primary objectives of wellness strategies is to alleviate stress by creating environments that permit people to relieve tension in a variety of ways. Solutions range from providing exercise opportunities, pleasant environments, counseling, mentoring and generally fostering a nurturing culture.
William Gagnon, vice president of marketing at Excel Dryer says, “The XLERATOR® Hand Dryer uses a focused, high-velocity, heated stream of air to dry hands and is the fastest and most hygienic hand dryer on the market. Excel Dryer offers a line of optional accessories, including the new HEPA Filtration System, the only system to include a washable pre-filter for reliable performance and extended filter life.
“Damp, used paper towels also can pile up in and around restroom trash receptacles on the floor, creating an environment in which bacteria can thrive, and, when improperly disposed of, can clog toilets and urinals. Hands-under, high-speed, energy-efficient hand drying is the most efficient and sanitary method for drying hands after washing,” says Gagnon. (See box above: “Range of Workplace Health Challenges.”) (Continued on page 19)
16 California Buildings News • Q2 2017
(Continued from page 10)
Additionally, CBRE plans to professionally accredit 50 CBRE employees through the WELL Accredited Professional (WELL AP) program. The WELL AP credential signifies knowledge of human health and wellness in the built environment, and specialization in the principles, practices and applications of WELL. CBRE employees will serve as the world's largest network of WELL APs, providing clients with professional qualified support to realize the potential positive health impacts of WELL Certification. CBRE will become a founding member of the Well Living Lab™, which is the world’s first human-centered research lab designed to study the interaction between human health and well-beBCCI Construction Company’s headquarters in San Francisco has an open office layout that maximizes ing and the indoor environment. natural light and an acoustic ceiling treatment that ensures that light travels throughout the space A collaboration between Delos and while also mitigating sound. Photo credit: Blake Marvin. Mayo Clinic, the Well Living Lab began launching studies in April 2016. It is located near Mayo Clinic in Rochester, Minnesota. CBRE’s Global Director of Corporate Responsibility David Pogue will become a member of the Delos Advisory Board. “Delos is excited to work with CBRE to help grow the healthy building movement,” said Delos Founder and CEO Paul Scialla. “Two years ago, CBRE took a bold step in bringing health and wellness into their Global Corporate Headquarters. Since then, they have become a thought leader for healthy design, advocating its benefits to clients worldwide. This new alliance will allow CBRE and Delos to further advance the WELL Building Standard to CBRE’s clients around the world.” w Reduce operating costs Wellness is a core component of CBRE’s global w Improve building controls “Workplace360” workplace strategy initiative, which has w Get up to 100% of project costs paid now been implemented in more than 30 offices around the w Earn LEED credits world. Each office features a balance of private and collaborative workspaces designed to support the way employees Act now to take advantage of 2016 incentive rates! work through enhanced flexibility, mobility, technology, (855) 866-2205 • www.pge.com/autodr productivity and wellness. In 2013 CBRE headquarters office in downtown Los Angeles set a new standard for the healthy office space and serves as an example for organizations interested in becoming WELL Certified™. One year after moving into that office, 92 percent of CBRE employees said the space had a positive effect on their health and well-being and
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17 California Buildings News • Q2 2017
90% said they would not choose to go back to a traditional way of working. “More and more occupiers are recognizing the role the physical and environmental characteristics of their offices can play on the recruitment, retention, health, and even performance of their employees. Space matters. And Delos, as creator of the WELL Building Standard, developed a comprehensive way to measure and recognize the efforts taken in this area,” said Dave Pogue, Global Director of Corporate Responsibility for CBRE. “This is an important new way of assisting our clients in a growing area of priority and focus, and we are pleased to play an active role in both the development and advancement of the standard.” Pioneered by Delos, the WELL Building Standard is the first building standard to focus on enhancing people’s health and well-being through the built environment. WELL is an evidence and performance-based system for measuring, certifying and monitoring features that impact human health and well-being in the built environment, through air, water, nourishment, light, fitness, comfort and mind. Green Business Certification Inc. (GBCI) provides third-party certification for WELL. To date, the program has enrolled nearly 30 million square feet of building projects in 14 countries.
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“Research increasingly demonstrates that building owners have a unique opportunity to positively influence the health and productivity of their tenants. While some health-focused upgrades and programs can be expensive, there are many low-cost measures available, such as opening up stairwells for exercise or implementing a high-performance green cleaning program. In particular, a high-performance green cleaning program ensures that building occupants are not exposed to poor indoor air quality that results from unhealthy cleaning chemicals or the use of outdated cleaning equipment,” says LA-based Kilroy Realty Corporation SVP Sara Neff, whose is also a USGBC-Los Angeles leader. “Commercial building owners increasingly find themselves trying to balance attracting top tier tenants with managing risk and liability,” says Simon Turner, CEO, Healthy Buildings in Orange County. “There are a few major developments that owners and managers should be aware of for 2017. First, BREEAM Certification has migrated to the U.S. With lower barriers to entry than other sustainability certifications, BREEAM USA allows any building to begin their journey towards sustainability with lower barriers to entry of other certifications. Second, the landscape for liability (Continued on page 53)
18 California Buildings News • Q2 2017
USGBC Evolving With New ARC Digital Platform — By Brenden McEneaney, Pacific Regional Director, U.S. Green Building Council The U.S. Green Building Council (USGBC) is best known for the LEED (Leadership in Energy and Environmental Design) rating system. The LEED approach has transformed sustainability in the built environment by giving building owners a menu of strategies to pursue, all drawn from industry best practices. This approach has helped thousands of professionals understand environmental impacts of buildings and how to mitigate them. Just as building technology evolves, so have USGBC and its resources. Arc is a new digital platform that uses real-time data to benchmark and track building performance across energy, water, waste, transportation and human experience. After entering your data, Arc generates a score that shows how your building or portfolio is performing and can compare it to similar projects locally or globally. This score can be used as an internal management tool to improve sustainability performance, as well as an entry point for LEED certification. Beyond the building scale, cities and communities use Arc to track sustainability and help guide policy and investment decisions. Early versions of LEED tracked the best practices a building could pursue, while Arc represents a strategic shift
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towards measuring outcomes and performance. Ultimately, Arc helps lower the barrier to entry for all buildings to take steps towards improving sustainability. Arc also is designed to streamline the documentation for projects that pursue LEED Existing Building certification. To learn more about the future of green buildings, join USGBC for the GreenerBuilder conference on July 13 (greenerbuilder.org). USGBC has partnered with NECA and IBEW to host Greenbuilder at the Zero Net Energy training center in San Leandro. USGBC President and CEO Mahesh Ramanujam will discuss Arc and highlight the importance of data and transparency. Other session topics include: measuring human productivity and performance; triple bottom line ROI analysis; innovations in tall wood buildings; and zero net energy school retrofits. If California is to meet its aggressive sustainability goals, we must chart a path towards a sustainable future through a data-driven performance, “all buildings in” approach. Together we can continue to transform the way we think about how buildings and communities are designed, constructed, maintained and operated.
19 California Buildings News
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(Continued from page 15)
Some years ago, the National Institute for Occupational Safety and Health (NIOSH) established an interdisciplinary team of researchers and practitioners from industry, labor, and academia to develop a national research agenda on the “organization of work.” Work organization refers to management and supervisory practices, to production processes, and to their influence on the way work is performed. (In this sense, the study of work organization and health subsumes the field of job stress.) This initiative is part of a broader, collaborative effort by NIOSH external partners to spearhead a “National Occupational Research Agenda” (NORA) to guide occupational safety and health research into the future, not only for NIOSH, but for the
entire U.S. occupational safety and health community. During its tenure, the organization of work team has conferred with academic, industry, and labor stakeholders to identify essential research and other requirements to better understand how work organization is changing, the safety and health implications of these changes, and prevention measures. This effort culminated in the NIOSH report The Changing Organization of Work and the Safety and Health of Working People. Commercial real estate, architectural and facility management associations are becoming increasingly aware of healthcare issues that challenge workplaces and are fostering education leading to initiatives. n
20 California Buildings News
Allura Expands Line of Plycem Fiber Cement Trim, Extends Warranty
llura, the nation’s fastest-growing supplier of fiber cement home building products, has announced two significant enhancements to its popular line of Plycem fiber cement trim— the addition of an 8/4 product for deeper, more natural shadow lines and the extension of Plycem’s warranty to 50 years. The 8/4 trim joins Plycem’s 4/4 (3/4” thickness) and 5/4 (1” thickness) products available in 12-foot lengths. Plycem fiber cement trim is available in 22 colors and six stains, pre-primed and sealed for painting after installation. With a reversible, smooth or textured surface, Plycem’s machined square edges are ideal for exterior corners, windows, columns and doors while adding grace and elegance to any style architecture. With Allura products, sustainability is always built in for good measure. The company promises to remain flexible, efficient and dedicated to making the world more beautiful. z
Allura fiber cement products can be incorporated into commercial, residential, mixed-use and multifamily designs. Allura also boasts a “one formulation” siding that is warranted from Alaska to Florida. It is impact-, fire- and rot-resistant and includes a 50-year warranty.
To learn more about Plycem fiber cement trim: Visit: www.AlluraUSA.com Follow Allura: www.facebook.com/allurausa and Twitter @AlluraUSA
21 California Buildings News • Q2 2017
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22 California Buildings News • Q2 2017
alifornia, perhaps more than any other state, has the climate that permits more year-round enjoyment of the outdoors. Buildings of all sorts are increasingly featuring roof space as ideal places for tenants, hotel guests and apartment residents to gather to enjoy the views and the pleasant ambiance of getting outdoors—without leaving the building. There is a boomlet of rooftop space particularly in Southern California. In Orange County, for instance, a number of buildings with views of Disneyland’s frequent fireworks shows have created beautiful rooftop venues. Numerous other properties have viewing platforms of coastal scenes, other natural settings and dramatic cityscapes. And with space at a premium and competition keen among commercial properties, a rooftop amenity can seal the deal for a lease and an event contract. For instance, guests of the Grand Legacy At The Park in Anaheim and other patrons can enjoy the popular rooftop restaurant The FIFTH to view the Disneyland fireworks and music on select nights conveniently located on the hotel’s property, says Director of Marketing Jennifer McVey. Some buildings are using their rooftops to support various functions within buildings, such as the Fairmont Hotel atop San Francisco’s Nob Hill. The hotel has a chef’s garden that features a variety of herbs and fruit, including a pollinator “hotel” for wild bees. In June 2010, the hotel, in partnership with Marshall’s Farm, installed honey beehives in the hotel’s culinary garden in order to help support the bee population, which has decreased in number by 90 percent since the 1980s. Beekeepers established four nascent beehives, each containing approximately 20,000 bees, in the culinary garden that is located outdoors on the hotel’s lobby level. The four hives now contain nearly 250,000 honey bees. The beehive installation was just a first step in cultivating the culinary garden, which measures 1,000 square feet. The garden contains rosemary, thyme, oregano, basil, chives and cilantro along with lavender.
When a Roof is Much M
Converting Roof Space into and Profitable — Amenity
More Than a Roof
o a Delightful —
Photos clockwise from top: The FIFTH is a popular rooftop restaurant in Anaheim. (Photo courtesy of the Grand Legacy at Park.) BrightView landscaper planting new vegetables/herbs at 488 Almaden Blvd. in San Jose. (Photo courtesy of Embarcadero Realty Services. Twitter HQ roofdeck. (Photo ©Twitter.)
23 California Buildings News • Q2 2017
Guests can view the culinary garden through floor to ceiling windows in the foyer leading to the hotel’s Pavilion Room. Annually, the beehives typically produce up to an impressive 1,000 pounds of honey, which has been served to hotel guests as part of Fairmont’s commitment to offering local, organic, sustainable cuisine. This home-harvested honey is used in soups, salad dressings, pastries and as an accompaniment to the hotel’s time-honored afternoon tea service. It is also used in Fairmont San Francisco’s own Honey Beer series, created in partnership with Local Brewing Co., which is offered on draught in Laurel Court Restaurant & Bar. The Fairmont was the first hotel in San Francisco to raise honey bees. Apiaries can also be found at more than 22 Fairmont hotels worldwide. Rooftop beehives have become popular with San Francisco hotels in the past few years, which is a great trend to have started. In May 2016, the hotel installed a pollinator bee hotel on the chef’s garden and moved its honeybees over to another area on the main roof garden (not accessible to the public, but tours are offered based on availability—most recently the staff did one with a preschool class that was learning about honey bees. These are dishes that incorporate the roof garden herbs/honey in the hotel’s Laurel Court: honey beer (Fairmont San Francisco Honey Beer Series; Nob Hill Honeycomb, a Belgian Wit style honey); Honey Madeleines; cheese boards; steak tartar; lemons for zest and juice; lavender for sauces; and rosemary garnish for drinks and the presentation of plates. (See photos on page 50.) (Continued on page 50)
24 California Buildings News • Q2 2017
Bay Area Electricians Training for Smart—and Green— Buildings
Q&A with Byron Benton Training Director Zero Net Energy Center (ZNE Center), San Leandro Q: Do the many new technologies going into buildings— such as the internet of things products—pose challenges for electricians? A: The single greatest challenge for electricians in the green economy of 2017 is staying abreast of the various technologies going into today’s buildings. A great example of this is the IBEW-NECA Electrical Apprenticeship program, which began in San Leandro in 1946. At the time of its inception, it was determined it took two years to become a journey level electrician. Apprenticeship training in the 1940’s through the 1970’s was primarily focused on basic electrical installations in residential, commercial and industrial buildings. In the 1980’s, changes in the apprenticeship model began to keep up with the advances in technology that were finding their way into many of our buildings. Today IBEW-NECA apprenticeship programs in the occupation of inside wireman/electrician last for five years with individuals attending over 1,000 hours of college credit related classroom instruction while also obtaining 8,000 hours or more of on-the-job training assignments. As a result of the ever-expanding technology we are experiencing, electricians in the 21st century will be required to continual-
ly upgrade their skills and knowledge in order to remain relevant and employable. Q: How are you keeping up with these new systems? A: IBEW-NECA electrical apprenticeship programs are keeping up with the demands of new and emerging technologies by continually upgrading the curriculum apprentices and journey-level electricians find in the classroom, along with related hands-on applications. A perfect example of this lecture and lab approach is the recent upgrade of our Building Automations Systems (BAS) lab. Where once BAS protocols (languages) of BACnet and LonWorks were the sole focus of this classroom lab; the master controller of Niagara Tridium, which allows various BAS systems to communicate and effectively work together, has been added, along with upgraded BacNet and LonWorks controllers. New curriculum has also been developed and employed to support this state-of-the-art training module where various electrical and mechanical systems are controlled by a common computer. It is critical today’s electricians are able to properly install these advanced energy efficient systems while also being able to make modifications and repairs as needed to maintain the intended building performance.
25 California Buildings News • Q2 2017
Q: IBEW-NECA’s efforts to train electricians to achieve greater energy savings are quite impressive, particularly your training center in San Leandro. Can you update us on what you are doing in this area? A: IBEW-NECA is taking a comprehensive approach when it comes to preparing electricians for the implementation of energy-efficient systems and products in existing and new buildings. Along with the building automation systems training previously mentioned, efforts at the ZNE Center also include working labs and training modules, with updated curriculum, in energy-efficient areas such as lighting control, variable frequency drives, programmable logic controls and plug load management. All of our classrooms and labs remain a work in progress in order to meet the demands of new and emerging technologies. For example, the advance lighting control lab will be undergoing an upgrade with new equipment and related curriculum in the summer of 2017. The programmable logics controls (PLC) lab, which is the controls standard in industrial buildings, was recently updated with new equipment and curriculum in 2016. In addition, the variable frequency drive (VFD) lab, which provides training on the installation and programming of variable speed motor drives that reduce the amount of energy used by adjusting the electrical frequency, will be upgraded in the near future. Another recent addition in training opportunities for IBEW-NECA electricians at the ZNE Center has been the installation of the computer animated drawings (CAD) lab, first offered to journey level electricians in 2015. With CAD being the standard in today’s electrical construction industry, properly trained electricians in this field have shown to be effective and productive on demanding jobsites.
Q: What is the forecast for electrical contracting in the coming year or so? A: As you may well know, the greater San Francisco Bay Area is currently in the midst of a construction boom. Companies such as Apple, Facebook and Google, have taken on significant building expansions. In Alameda County, we are particularly excited by large construction projects that will employ countless electricians on job sites such as the new UBER corporate office in Oakland, the Brooklyn Basin project across from Laney College, as well as a soon to be announced new ballpark for the Oakland Athletics. In addition, the former Alameda Naval Air Base is undergoing a significant redevelopment along with continued hospital work and various commercial buildings rising-up throughout the county.
Q: With all the baby boomers retiring, will there be enough electricians to take their place and serve an ever-growing demand for smarter buildings? A: The concern with retiring baby boomers in our industry has been discussed and considered for several years. What we are now finding is the attrition rate is not as great as originally predicted. However, this finding does not change the fact that highly skilled electricians trained in the most current electrical construction technologies found in today’s smart buildings will need to be replaced in the near future. A great example of how IBEW-NECA is preparing for this challenge is with our Building Automation Systems lab. Several controls contractors have recently toured the classroom/lab to see what current training is being done in the area of building automation controls and to see firsthand the recent product and curriculum upgrades that have been made. The feedback we have received from these contractors has been extremely positive. After touring the ZNE Center, each decision-maker left stating they will be looking to hire graduates from our program to not only replace future retirees but help them expand their business.
Q: 2017 and beyond? A: As energy-efficient buildings become the norm in this country and net zero buildings become more common, the next challenge will be storing electrical energy that can then be used to offset the demand on a tired and over-taxed electrical grid. IBEW-NECA and the ZNE Center are working with the City of San Leandro on an electrical smart grid system. This arrangement will allow for storage in a way that not only places less demands on the grid, but will also make electrical energy available to the public in times of an emergency. This system’s approach ultimately completes the loop between energy efficiency, renewable energy and electrical energy storage. The IBEW-NECA Zero Net Energy Center is a 21st century example of a true triple bottom line. A bottom line that leads to a cleaner environment for the planet, provides needed training and skills that lead to living wage jobs for local citizens, and strengthens our national security by reducing our dependence on foreign oil. IBEW-NECA is doing more than talking the talk, they are walking the walk. n
Q: Why did IBEW-NECA invest in the ZNE Center? A: The design, construction, and implementation of the IBEW-NECA ZNE Center was undertaken for a variety of reasons. The primary goal was to create the optimum learning environment for our students, allowing us to meet the demands of an ever-changing industry. The significant investment in the ZNE Center is also a reflection of IBEWNECA’s values. After completing the design of a highly energy efficiency retrofit of an existing 1981 commercial building, clean renewable energy sources of solar and wind were added into the equation to achieve a net zero building. IBEW-NECA are proud to announce the completion of our third year of being a true net zero building. The ZNE Center generates onsite an equal amount or more of clean renewable energy in a calendar year than is taken off the utilities grid. It is important to note net zero operations are accomplished with no onsite combustion, meaning no use of natural gas.
Photos courtesy of ZNE Center.
26 California Buildings News • Q2 2017
Modern Workplaces Evolving...Yet Unpredictable Some Analytical Tools and Greater Understanding Will Help Meet the Challenges “The office space is cyclical and is therefore hard to Creating highly functional workplaces today means you predict, we have seen open floorplans before. For instance, have to be part sociologist, part architect, part HR director, in the the 1950s and 1960s, socio-democratic principles part psychologist and part epidemiologist. And even of Northern Europe created then you might have to call in a type of egalitarian mansome consultants practicing agement approach which disciplines that just got invented formed an open floorplan last month. concept that intended to A program sponsored in recognize a wide variety of May by the International different office work, and in Facility Management doing so encourage staff to Association of Silicon Valley work together,” she said. dramatized how important it is “Like today the open now to take a multidisciplinary floorplan was supposed and technological approach to to allow for an increase in operating buildings that maxicollaboration and commumize tenant value. nication. As the economic San Francisco-based Knoll market shifted in the late Project Manager Angelica 1970s and 1980s, the U.S. Smedberg opened the discussion saw a significant change in with a perspective resulting from Knoll manager Angelica Smedberg presented her company’s research. the workplace. her company’s research. A super-economical mindset tied with a rise in analytical workers along with the fast pace nature of the 80s, created a large sector of middle management workers who were too junior for a private office, but preferred more privacy, and hence the cubicle farm was created,” she continued. So is there anything new about the emerging open floorThe Silicon Valley Chapter of IFMA is offering plan we see trending today? exceptional local credential classes led by seasoned “The world is more globalized and connected than ever facility professionals before. Employment opportunities increasingly lie in jobs Facility Management Professional (FMP) requiring higher-level social or analytical skills, or both, March 9-10 Leadership & Strategy which is why Millennials are the most educated generation to date, with 34% having a bachelor degree. This is comApril 13-14 Finance and Business pared to 24% of baby boomers (as young adults). Knoll has May 4-5 Operations & Maintenance seen an emerge of an experience-based planning approach. June 8-9 Project Management “Today’s clients are looking to build memorable and positive experiences for their workers. And workers now Certified Facility Manager (CFM) expect the office to not only provide them a place to work, but also a place to meet, socialize, connect and otherwise September 6-8 Exam Preparation continue their daily activities. Offering them mobility in where they want to work and allowing them to adapt the Sustainability Facility Professional (SFP) space they need as they see fit increases communication September 20-22 Part 1 and productivity. Knoll calls this an immersive planning October 11-13 Part 2 approach in which the experience-based workplace supports workers by giving them choice and control. Register today! “Why is this important? Studies have shown that For more information or to register: (Continued on page 38) www.ifmasv.org email@example.com 408-226-0190
27 California Buildings News • Q2 2017
California Buildings Associations …Get Involved! California Buildings News recommends the following associations to people who design or operate buildings or provide services and products to them. They all offer useful educational and networking programs and represent the industry in government forums. Check out their websites to find local chapters near you. Association for Facilities Engineering: http://www.afe.org/ Associated General Contractors: https://www.agc.org/ American Institute of Architects: https://www.aia.org/
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28 California Buildings News • Q2 2017
Medical Office Building Summit Highlights Trends
The convergence of demographic and technology trends, along with public policy, are shaping the future of medical office buildings, panelists shared at a recent Medical Office Building (MOB) Summit given by BOMA Oakland/East Bay. Focus on the user experience is emerging at the same time that the Affordable Care Act is creating opportunities for new outpatient and urgent care facilities and the adaptive reuse of buildings. “Healthcare has become more consumer-oriented. Experience is important,” said Bill Graham, Dignity Health Sequoia Hospital, which looks at “where we have opportunities to be patient-centered.” Other trends: convenience, location and branding are influencing the current and future wave of medical buildings. Cool amenities like food courts and hip neighborhoods add to the experience, and more clinics are cropping up in financial districts and nice neighborhoods, rather than large medical complexes. In addition, disruptive technologies like driverless cars could change the look of MOBs, as less parking may be needed. Finally, retiring Boomer doctors and dentists mean that many tired buildings are ripe for repositioning.
Creative Development Strategies Mike Conn, Senior Vice President, Meridian, shared a case study of a project on Broadway in Oakland that his firm developed. He noted increased opportunities like this are increasing since the ACA was passed. The development is a dialysis facility near Kaiser and Sutter Health. Entitlement challenges included working with a multifamily facility behind the structure. His firm conducted multiple community outreach meetings. “You want the community to be your friend,” he said. Also, sometimes neighbors have good ideas. Medical/health care is seen as a safe and steady investment. Key takeaways from Conn: Get creative in dense, urban infill markets. Speed to market and branding are important. “Relationships are key to counteracting cost escalations and labor costs. Be good to your vendors.” Finally, he added that “site control is everything: you have to be able to add value by handling entitlements and developing on schedule. (Continued on page 40)
Above: Meridian was hired to develop this San Rafael outpatient clinic in the dense downtown area. Photo: Michael Polk, Majestic Captures.
29 California Buildings News • Q2 2017
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30 California Buildings News â&#x20AC;˘ Q2 2017
Centenarian Hotels Combine Tradition and
Guests have gathered for more than a century around the stone fireplace in the Hyatt Highlands Innâ&#x20AC;&#x2122;s lobby. Photo courtesy of Hyatt Highlands Inn.
31 California Buildings News • Q2 2017
Old-Style Elegance and High-Tech Features Make for Alluring Hospitality
here are plenty of examples in California of moldy old hotels with lumpy, frayed furniture, sagging beds, non-existent WiFi or weak signals, indifferent service and in-property cafés best avoided. In contrast, there are a number of 100-year-old-plus hotels around the state that have been dramatically upgraded to the latest tech standards, while preserving beloved traditions, linking generations and fostering fond memories and enriched new experiences. One of the most dramatic of these is the newly renovated Hyatt Highlands Inn perched on the craggy ocean cliffs just south of Carmel and north of Big Sur, where multiple generations have been wed, feted and returned again and again for many of their most cherished experiences. Its 48 cottage-style guest and 94 time-share rooms boast 4G connectivity and every amenity you’d expect from a downtown LA luxury hotel. The Highlands Inn is introducing LED lights, composting its food and has upgraded its TVs to the latest highdefinition standards. Don’t fear that the food at older hotels necessarily means you’ll have to settle for a slab of over-cooked prime rib, chicken baked dry and squishy green beans, finished off with an oozing chunk of apple pie. The culinary stylings of Executive Chef Chad Minton, Executive Sous Chef Alvaro Dalmau and Sous Chef Francisco “Pancho” Castellon rival anything you’d expect from the food capitals of the world. The Pacific’s Edge restaurant’s views alone would be enough to draw a crowd, but the locally sourced ingredients of its South Pacific bouillabaisse or its salmon with local wild mushrooms, smoked carrot purée, winter vegetables and sunchoke crumble would bring you back. You might start with roasted octopus served with black (Continued on page 32)
32 California Buildings News • Q2 2017
Centenarian Hotels (Continued from page 31)
garlic emulsion and sorrel or abalone with smoked king trumpet mushroom and charred scallion sour cream. The Pacific Rim-inspired menu can be
paired with a world-class wine cellar, of course, drawing extensively from the fastdeveloping Monterey County wineries. The inn and cabins’ design, which might be called rustic luxury, harkens back to its origin at the turn of the 20th century as an artists’ and writers’ colony situated in the inspirational landscape where a forest meets the sea. Its capacious event-capable lobby (that can host up to 175 people) with
ocean vistas still features the enormous stone fireplaces around which people have gathered for more than a century. It might have been back in the 1940s one recent night when the band played swing music and dancers whirled about the floor. And, as it is often an executive retreat, it has kept up with the latest hospitality technology for conferences or events of as many as 100 people or as few as 12. Just 126 miles up the coast in the tech-bustle of San Francisco, the grand and proud old Palace Hotel stands in regal splendor midst gleaming new glass and steel towers of Market Street and super-chic new hotels where telephone operators at one new hotel answer the phone with the greeting, “Whatever…whatever.” For a combination of tradition and
Top photo: Hyatt Highlands Inn bar offers sweeping vistas. Photo credit: Scott Campbell. Lower photo: seafood delicacy from the Pacific’s Edge restaurant.
33 California Buildings News • Q2 2017
full modern amenities, the Palace sets the standard. Says General Manager Jon Kimball, “At the Palace, keeping the right balance is always at the forefront as we advance and modernize the hotel. This holds true for everything at our hotel including structural and interior elements, technology upgrades, and food and beverage offerings. Careful consideration is given throughout the process to ensure that we maintain these standards. For example, our recent renovation incorporates classically inspired, contemporary décor that
complements original architecture. “The Pied Piper bar with its century-old handsome oak paneled walls and mosaic tile floor, has been transformed into a cool lounge with modern elements that create a perfect contrast between past and present. With technology upgrades, we conceal as much equipment as possible. What is seen is thoughtfully selected so that objects do not impose and compromise the beauty of the space. This enables us to be relevant and give us an edge that is unique to an iconic property. Our guests truly appreciate our commitment to
preserving the integrity of our historic hotel while giving them the finest luxury services and amenities. The Palace is proud to offer our guests the best of both worlds.” The Palace’s culinary offerings at the glittering Garden Court hold their own with any of the legendary San Francisco restaurants down the street. For instance, you can start with the tuna tartare with three caviar tarragon buttermilk, mimosa and taro chips, then move on to a basil crusted halibut and finish with a pistachio chocolate tart. (Continued on page 49)
Above: Elegant Garden Court at the Palace Hotel in San Francisco. Photo courtesy of the Garden Court.
34 California Buildings News • Q2 2017
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35 California Buildings News • Q2 2017
Overwhelmed with Parcels…
Multifamily Managers Turn to New Solutions Last year, shoppers passed an historic benchmark when they made 51% of their retail purchases online, versus in stores, according to a study commissioned by United Parcel Service. One of the massive unintended consequences of this market phenomenon is the time-consuming impact on apartment complex managers. Hills of boxes are suddenly appearing in their offices and lobbies, straining their management resources and causing many to cry out for a solution. Apartment managers were trained to lease and manage apartments and now find they are in the logistics business, as well, a business that can be fraught with handling issues. A number of companies that have leapt into the nascent yet growing package management market, bringing interesting solutions as they learn more about the need for their services —and make adjustments. “In the past, apartment property managers would happily sign for and accept the packages on behalf of residents at the leasing office, since the frequency was low and it was an easy gesture of courtesy. But today, with overwhelming the popularity of online shopping, the rate of package deliveries is increasing by 20% year over year. A typical 200-unit community can receive 75 packages a day for their residents. Property managers are now spending up to four hours daily on package management, a manual process that can easily be automated,” says Melody Akhtari, director of marketing & communications and San Francisco-headquartered, Luxer One. “Luxer One develops package management solutions for multifamily communities to solve this very issue. The company’s suite of smart package lockers and automated package rooms are all designed to accept 100% of deliveries, regardless of size, weight, and even delivery volume. The solution takes the burden of package acceptance, storage, and organization off the plate of property managers,” she says.
Mark Calvo, a sales executive at Irvine’s Parcel Pending, says most multi-family complex managers are still accepting packages, storing them and notifying their residents— which means there is still a huge market for more automated management systems. “We’re still in the early adoption stage,” he said. There is a rising tide of innovation in the new industry, he said, pointing out that his company will even construct facilities outside the apartment buildings, in cases when there isn’t enough space to house a modern locker
room in the management office. He says his company can construct an outside modular tower of any configuration that works for an apartment complex’s layout. There can be several such facilities located in various areas of the complex, a particularly desirable feature in widespread apartment communities. And it makes it easier for a carrier to make deliveries.
Top photo: Package management solution from Luxer One, courtesy of Luxer One. Lower photo: Package Concierge solution at AVA Little Tokyo in Los Angeles. Courtesy of Package Concierge.
(Continued on page 51)
36 California Buildings News • Q2 2017
SF Architectural Awards Feature Openness, Green & Sleek Style The use of natural light and open spaces were prevalent in the awards given this year by the American Institute of Architects San Francisco chapter. Among the standouts were Bohlin Cywinski Jackson’s design of the Manetti Shrem Museum of Art on the campus of the University of California at Davis. That Merit Award winning structure features a trellised ceiling in which the shadows and light give the feeling of being inside of work of modern art. One of the most iconic structures honored was the new U.S. Courthouse in Los Angeles whose gleaming exterior mirrors the surrounding community and has interiors that the awards jury described as “heroic modernism and natural lighting,” and said it was “rare to see sustainability expressed so powerfully.” Skidmore Owings & Merrill received the Merit Award for that project. United States Courthouse in Los Angeles, designed by Skidmore Owings & Merrill, features a “floating” mass of glass. Photo credit: John Gaylord.
Bohlin Cywinski Jackson’s design of the Manetti Shrem Museum of Art features a trellised ceiling structure that breaks down the barrier of entry to the building; the result is not overbearing but very welcoming. Photo credit: Iwan Baan.
37 California Buildings News â&#x20AC;˘ Q2 2017
Chico State building. Photo credit: Bitterman Photography.
Pinterest Headquarters. Photo credit: Bruce Damonte Photography.
Other awards to commercial and institutional California buildings were: Merit: Chico State Arts & Humanities Building by WRNS Studio
Merit: Diane B. Wilsey Center for Opera by Mark Cavagnero Associates
Merit: Minnesota Street Project by Jensen Architects
Merit: Technology Innovation Training Center by Mithun
Citation: U.S. Coast Guard Waste Water Treatment Plant by Marcy Wong Donn Logan Architects Honor: Pinterest HQ by Iwamatoscott Architecture Merit: Redpoint Ventures by Iwamatoscott Architecture
Tile & Stone Council of Northern California 415.989.1175 z www.tscnc.org
Art+Furniture: 301 Howard Street Lobby by Huntsman Architecture Social Responsibility: 826 Valencia Tenderloin Center by Interstice Architects
Dedicated to quality craftsmanship, the Tile & Stone Council of Northern California is a resource for building professionals who wish to feature distinctive and lasting tile and stone installations in their projects.
California Buildings News • Q2 2017
(Continued from page 26)
employees who have the power of choice and autonomy are likely to drive not only employee happiness, but also motivation and performance. For instance, knowledge workers whose companies allow them to help decide when, where, and how they work were more likely to be satisfied with their jobs, performed better, and viewed their company as more innovative than competitors that didn’t offer such choices.” Does your age really matter? “If we can’t predict for the office of the future,” says Smedberg, “we can at least review the changes in demographics in the office. Since last year Knoll have been conducting an extensive study on generations in the workplace in hopes of understanding how change can promote a better work environment for all generations. Today’s workforce is composed of five different generations: Traditionalists, Baby Boomers, Generation X, Millennials and Generation Z, who are just entering the workforce. This great age diversity is causing both confusion and skepticism amongst organizations and employees. In turn, stereotypes have been created as an outlet for people to categorize the age diversity in the workplace. “So far our data reveals that most people, regardless of generation, are influenced by recreation and play. Although work is important, most participants surveyed resonates with play rather than work. This isn’t surprising considering that
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we have entered a conceptual age, where the creative class is growing the economy. Hence the importance of recreation and play is linked to peoples’ ability to be creative. “Further our research contradicts the notion that baby boomers are workaholics, like the other generations, they similarly value leisure. What we are also seeing is how in a diverse age population, Millennials seems to be the ‘shared generation’. They have more characteristics and experiences with Generation Xers and Baby Boomers, than does Baby Boomers and Generation Xers.” Some Other Knoll Findings: w Employees currently spend 40% of their day in unstruc tured or informal group activities, and in five years it will encompass more than half their work day. w Changing workstyles and the influence of startup culture have reshaped the role of the workplace from a static building to a highly interactive experience. w The workplace moved from being a location to get work done to an environment to foster, culture brand and community. From a place where architecture pre scribes space to a setting where the actions of people define the space. In effect, it moved from the office as a building to the workplace as an experience. w Comfortable furnishings and fluid boundaries charac terize this group-based workplace where the actions of the people themselves define the space. The result is an environment that can transform at a moment’s notice and evolve with use. Better Utilizing Space Will Be Imperative Deirdre Celotto, San Francisco-based director of marketing at the space-planning tech firm Optimaze, made five predictions and recommendations that will be relevant to space planning: w Robots are taking over. That means we should create spaces that support knowledge transfer, problem solving, expansion of networks, exposure to diverse information and avoid knowledge silos. w One size does not fit all. Get instant specifics from one data-set with multiple data points. Cut through the clutter with real-time, customized analytics. w Age matters. Space utilization considerations differ depending on the age of a company, the age of the talent, and the business sector. w Team members are living for the weekend. According to Gallup, 51 % of team members are not engaged at work and unlikely to make an extra effort to support work initiatives w Predictive technology is the new thing. Space utilization data analytics help you understand current space usage and model future scenarios. Multiple data points are synthesized into clear, actionable themes. n
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Architects Oppose Trump Withdrawal From Paris Climate Pact California Gov. Brown Asserts Continued Support of Pact The American Institute of Architects (AIA) has reaffirmed its commitment to climate change mitigation and announced it was opposing the Administration’s decision to withdraw the United States as a signatory to the Paris Agreement. That accord, signed in late 2015 within the United Nations Framework Convention on Climate Change (UNFCCC), commits the international community to fighting harmful greenhouse gas emissions. “The United States must remain a leader in the battle to cease harmful and needless practices that damage the planet and its climate, acting out of both environ mental concerns and national economic interests.
Instead of helping our economy, as the Administration contends, withdrawing from the Paris Agreement will put us behind our major global competitors,” said AIA President Thomas Vonier. “The AIA will not retreat from its long-established efforts to conserve energy and to deploy renewable resources in buildings. We will continue to lead in efforts to curb the use of fuels and technologies that needlessly pollute our atmosphere and harm our environment. This makes good sense economically, and it is in the best interests of those we serve: our clients and the public.”
Who Really Approves Leases & Capital Improvements? IREM Says It Depends On the Deal The Institute for Real Estate Management ‘s research report, Real Estate Asset Management: A Process and A Profession, helps to demystify asset management by summarizing the results of over 90 interviews conducted with real estate practitioners familiar with asset management as both a process and as a profession. Approving leases and capital improvement projects are two asset management functions closely related to budgeting because they have a direct impact on a property’s cash flow. And while these responsibilities do not fall to asset managers in all real estate companies, it is relatively common for individuals working in this capacity to have authority to autonomously approve leases and capital spends that are included in a budget or within defined dollar limits. Asset managers approach these tasks in different ways across firms. A quantitative approach, oversight approach and deal-making approach were identified in the research. Asset managers employing a purely quantitative
approach tended to have somewhat limited authority to engage in lease negotiations or approve capital investments. They described their role in the process as that of helping transactions teams or senior executives make these decisions through comprehensive financial analysis. Alternatively, those reporting an oversight approach had more autonomy to make leasing and capital investment decisions after turning to leasing agents, property managers and analysts for assistance. The asset manager’s responsibility was described as that of interpreting the analytical work of their team to ensure alternative courses of action were presented for review in concert with educated recommendations before making a final decision. Finally, those reporting a deal-making approach inserted themselves into lease negotiations and capital improvement projects early on and remained involved through completion. Asset managers in this group analyzed and approved these transactions independently for the most part. To learn more about what companies expect from their asset managers, check out Real Estate Asset Management: A Process and A Profession.
40 California Buildings News • Q2 2017
Medical Office Buildings (Continued from page 28)
Real Estate as Strategy Trask Leonard, President/CEO of Bayside Realty Partners, moderated a panel discussion of MOB experts. He asked: How do you view real estate as part of strategy? Some remarks: w Andy Grover, One Medical’s Senior Director, Head of Real Estate, said that “real estate has been a real differentiator” for the company. One Medical, which last year opened its first Oakland location near the border of Piedmont at the site of a former video store, had to convince the landlords to allow a medical facility there. It is now one of the company’s fastest growing units and “feels like an important part of the neighborhood. We are proud of the design.” w Anni Chapman, Project Manager, Sutter Health System, said, “Use what you have, but look at what’s happening in the market.” Sutter is looking at retail locations for traditional care, as well as for walk-in. She shared an “unfortunate” experience in Watsonville, where a moratorium was put on establishing medical in retail locations. She noted that it can be hard to get city and community support for projects. w Patty Craig, Practice Manager, Allergy and Asthma Medical Group, said her group likes locations near primary care, but that parking can be a challenge. It recently took over a practice in Vallejo and is looking for space in Berkeley.
Investor Panel Shares Insights For many investors in the MOB sector, the goal is to improve properties that are older and under-utilized. However, concerns include profound regulatory and construction costs. John Pollock, Meridian Chief Operating Officer, noted that in the early 2000s secondary and tertiary markets began to fill in. He believes that a lot of institutional players are overpaying for assets. Catherine House, Managing Director, SVN|QAV Associates, said that investors want MOBs with a consumer focus. She added that investors need to be aware of the age of a building and take into account Title 24, seismic and ADA issues. Also important is the age of the physicians who occupy a MOB. What are their practice plans? In addition, medical condos have been popular because of attractive SBA loans. Disruptive technologies and the desire for a retail-type facility mean that buyers may want to scrape and build new. Pollock said there has been a dearth in the past few years in available properties. Investors weigh the cost of old vs. new. Though tough now, other panelists observed that there are assets out there, but many are multi-tenant and can be problematic. n
BOMA Silicon Valley’s recent trade show attracted many property managers and other buildings professionals who were eager to learn about vendors’ products and services.
San Diego Buildings Groups Hold Successful Expo On March 14 the San Diego BOMA and IFMA held an expo for property and facility managers with more 100 vendors showcasing their expertise. The “superheroes” theme of the Expo set the stage for the year on the latest trends in services and products as well as the best practices in the commercial real estate and facility industries. Attendees were able to discover solutions to manage and maintain their properties more efficiently, reduce operating expenses, save energy and implement green practices and more! All while networking and benefiting from leading experts and industry resources. The serious side of business was softened with raffles every hour and most booths having games, candy and helpful giveaways, such as the amazing level/screw driver I picked up at one booth. Seeing vendors dressed up as superheroes may have shed them in a new light for some managers but it sure helped them get the attention they were hoping for. The industry relies on successful business relationships, and the Expo provided a perfect place to meet new and old vendors, as well as learn of new ways to get projects completed. Says BOMA San Diego President, Lynn Hulber, “Huge well done, congratulations and thank you to everyone that participated in the BOMA/IFMA Expo, including sponsors, organizing committee and BOMA office. I know you all worked tirelessly to put this together and the end result was brilliant. I heard nothing but positive comments and feedback as I went around the Expo, it was such a great mix of education, fun and excitement with all the wonderful giveaways.”
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California Apartment Owners’ Legislative Agenda The California Apartment Association notes that a bill proposed in the Assembly this year would help protect rental housing owners against baseless litigation filed under the Americans with Disabilities Act. Under AB 913 by Assemblyman Adam Gray, D-Merced, a court may prohibit extremely high-frequency litigants from filing ADA lawsuits without first determining that the litigation has merit and is not intended to harass the defendant. Frivolous ADA lawsuits are common in California, with the rental housing industry routinely being targeted. It is estimated that more than 42 percent of all ADA lawsuits in the United States are filed in California. The bill defines “extremely high-frequency litigants” as plaintiffs who have filed 15 or more ADA lawsuits in the prior 12 months. The California Apartment Association supports this legislation. Also, CAA seeks relief from the “on-site” landlord requirement. A bill working its way through the state Assembly would reform a century-old California law that requires an apartment manager or other key employee to live at rental properties with 16 units or more. Under current law, this employee can be a manager, janitor, housekeeper or other responsible person. The requirement traces back to the early 1900s, before the advent of 911 emergency services and cell phones. The bill, AB 1242 by Assemblyman Tim Grayson, D-Concord, would allow a manager to live on site within a five-mile radius of the apartment community, although that distance could change as the bill evolves. Alternatively, instead of distance, Grayson may consider basing the proximity requirement on response time to the property. To ensure reachability, the bill also would require that tenants be provided the employee’s name, phone number and email address. The California Apartment Association is working with Grayson to finalize the specifics. The bill emerges as communication between apartment managers and tenants has become predominantly electronic, such as via email and text messaging. Moreover, managers often tap contractors or repair personnel to fix problems and perform general maintenance. AB 1242 provides new opportunities for employment for managers who do not currently live on the premises or have no desire to live on the premises. It makes it possible for managers with families to live in their homes without having to uproot their households and move into what is potentially a smaller space.
Balcony Inspections Refinements A California Senate bill that would require inspections for apartment balconies should exempt structures that have already been officially verified as safe, the California Apartment Association has concluded. SB 721 by Sen. Jerry Hill, D-San Mateo, would require the inspection of decks, balconies, and elevated walkways, as specified, in buildings containing three or more multifamily units. “We agree with you that the ongoing maintenance and safety of balconies is extremely important,” CAA says in a letter to Hill. “The California Apartment Association requests amendments to the bill that take into consideration the local inspection ordinances already in place as well as the requirements of mortgage and insurance companies that also now require inspections.” Unless the bill is changed, property owners in some areas will be required to have their balconies inspected twice or more in a short time frame. CAA’s requested amendments would retain the safety goals of SB 721 while removing costly, time-consuming redundancies. The bill also should also should allow for exemptions based on building materials. CAA’s letter adds, “Obviously, steel construction will have little to no water or pest damage like we see with wood balconies. n
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42 California Buildings News • Q2 2017
California’s Building Regulations Can Drive Costs, Confusion Real Streamlining Is Essential for California’s Future
By Michael F. Malinowski
Images of paperwork and light bulb: Getty Images.
In a small California community, a building official keeps a stack of nearly 1,000 pages on his desk as a reminder to consider the big picture. This stack was required by the California Energy Code for a small project: replacement of 24 apartment HVAC units. Looking past those 1,000 pages, you’d find some unhappy people: An unhappy property owner: He knew updating the old equipment to high efficiency and environmentally responsible new systems would be expensive, but he thought the permit would be easy and simple. After all, this big investment would not only be great for his tenants — lowering their energy bills, but it would also be good for the state since it hit on a number of political hot buttons, such as reducing carbon footprint, need for power plants, ozone damaging legacy refrigerant and more. Easy and simple? Nope: expensive and time consuming. An unhappy subcontractor: He had long ago given up trying to keep up with the arcane regs, so he had to hire a specialist to prepare them... and then had to face a customer unhappy about the time and cost involved. The architect on the project also wasn’t happy. This part of the process annoyed everyone, didn’t put a dime into his own thin budget for design, and saddled him with the legal liability of signing off on this massive tome. Even the building official wasn’t happy. He didn’t have the staff or budget to process all this paper, review it, or file it. Everyone was behind the intent and ready to put the ideas into action. But the paperwork! So, what was the driver behind this massive tower of papers? In California, we have what is widely considered the most advanced energy code in the country. The 146 pages of the code itself were crafted by an army of state engineers, consultants, academics, and bureaucrats under the guidance of our California Energy Commission. Along the way, there were drafts and submittals, many hearings open to the public, and each one officially noticed in all the legally required places. But how many of the real stakeholders in this process were really engaged: individual small businesses,
43 California Buildings News • Q2 2017
Real Streamlining can’t be “patched on” after the fact. A few specific examples: 1. Unduly complex regulations and documentation requirements There is a tendency today to assume that the increasing complexity of moving toward our energy and sustainability goals is inherently so complex that arcane codes and massive bodies of manuals and forms are unavoidable, even for simple projects. To counter that perspective, consider consumers’ interaction with computers. It was not that long ago that ANY interaction with a computer was also accompanied by a need to dig into arcane documentation and consult with experts. Today, computers are more complex than ever, yet most citizens carry one in their pocket without so much as a glance at an operation manual. The key: the customer experience is given a lot of consideration during engineering. We need a similar mindset in California’s regulatory environment. It has to be someone’s responsibility to weigh the cost and benefits for every piece of paper involved. We need to rediscover some of the approaches that California had not long ago, such as short and simple forms designed for customers to use directly, point systems for evaluating options, and simple scripts for simple tasks. Replacing a water heater should be a “one pager,” not a “book” that requires an expert consultant to interpret.
2. Lack of products to meet requirements at all project scales When the last cycle of commercial California energy regulations first went into effect, for some small projects there were no cost-effective products available in the marketplace to meet requirements such as lighting, dimming and panel segregation. An example of the result: electrical bids for a 1,500-square-foot wine tasting room were over quadruple the budget. Manufacturers were aware of the products needed, but they logically waited for the market to materialize first. So, in the interim, products designed for 10,000-square-foot projects had to be jammed into small TI’s at very high cost. This marketplace “gap” extended for nearly a year. During this time, unreasonable costs hurt small businesses, contractors, and property owners without corresponding public benefit. If products are not there to serve customers, there needs to be flexibility granted to local officials where the issues arise to use common sense.
contractors, property owners, or architects, for example? Precious few based on the evidence. Those 146 pages of code are so arcane. They are backed up by over 2,000 additional pages of supporting documentation, compliance manuals, and reference appendices. Many of those thousands of pages require forms — so many that replacement of a single HVAC unit might trigger over 40 pages of paperwork! Replace a simple residential single family water heater? To do that requires someone to puzzle their way through at
3. Failure to consider “single dimensional” retrofit projects. Our regulatory environment is based on a “typical” multi-dimensional project that includes many changes that happen concurrently. This typical situation affords the potential to “trade off” higher performance in one area against lower performance in another area. What about projects that are “one dimensional?” Our current regulations don’t address these scenarios. Example: A tenant and building owner would like to replace existing, single glazed storefront windows with a new double glazed system which will provide both significant energy savings, as well as a quieter interior. Today, it is difficult or impossible to navigate the code to success as it limits glass transparency without considering that, in some cases, it would be a disaster for a retail business, not to mention also violating design review mandates that specify clear glazing for retail storefronts. The inflexibility of mandated “minimum standards” in examples like this can create a “Catch 22” that either stops some potential upgrades in their tracks or drives them “underground,” to be executed without permits at all.
least seven different sections of the code, with the process ultimately leading to a pile of 47 pages of paper—just for the energy code part of the permit. That’s to ask permission to install the kind of high-performance water heater that California wants you to have. And what happens to all the paper which costs so much to prepare? It turns out, not much. In many jurisdictions, they simply don’t have the time or resources to dig into it, so it’s simply filed — sometimes into the round bin. YIKES! (Continued on page 52)
44 California Buildings News • Q2 2017
Working Conditions Key to Sustainability, Says Study Consumers Reject Greenwashing, Want Firms to Walk the Talk Recent surveys show most consumers value corporate sustainability and are willing to pay more for products made by companies committed to making a positive social and environmental impact. Yet little scholarship exists about what consumers think about corporate sustainability in terms of companies’ moral duty. New research from the University of Missouri reveals specific aspects of corporate sustainability
Photo: Adobe Stock.
consumers believe are companies’ moral responsibility to fulfill—findings that could shape business strategies for companies that want to appeal to these consumers. The study identified four key areas of corporate sustainability that consumers believe to be part of companies’ moral responsibility: working conditions, environmental support activities, community development and transparency. To develop the survey, researchers reviewed corporate sustainability reports from consumer product companies considered to be sustainable. From those reports, they identified 44 unique sustainable business activities reported by companies, which
were tested in a national survey for consumers’ perceptions within the corporate moral responsibility spectrum. “Many companies see touting their corporate responsibility as a marketing tool, but this work shows that if such marketing is going to be effective, companies must be able to deliver in some key areas that consumers believe are fundamental responsibilities for companies to fulfill,” said Jung Ha-Brookshire, an associate professor of textile and apparel management and associate dean of research and graduate studies in the MU College of Human Environmental Sciences. Ha-Brookshire said the key expectations build upon one another, with working conditions forming the base. For example, even if a company had an exceptional program supporting the local community, consumers may not consider it sustainable if the company also maintains a factory with poor working conditions, she said. That is because offering proper working conditions is perceived to be a more important duty for companies to fulfill than the other. An even less important perceived moral duty was transparency. “No matter how much information corporations share about the good deeds they are doing, if the company has terrible working conditions or damages the environment, consumers may not accept or believe the company’s transparency efforts because of the different moral responsibility values they place on these different activities,” Ha-Brookshire said. The study, “Perfect or Imperfect Duties? Developing a Moral Responsibility Framework for Corporate Sustainability from the Consumer Perspective,” was published in the journal Corporate, Social Responsibility and Environmental Management.
45 California Buildings News • Q2 2017
Multifamily Market to Continue Growth, Says PCBC Capital markets experts are optimistic, the multifamily sector is in a period of sustained growth and a pro-business federal government all promise continued prosperity, says the Pacific Coast Builders Conference, headquartered in Sacramento. PCBC — the largest annual homebuilding trade show in the Western United States—has, in conjunction with Meyers Research LLC, released its comprehensive, nationwide 2017 Trends Report focused on capital markets, land planning and development, multifamily, business management, technology, design, and marketing and consumer insights for homebuilding. Among the selected highlights: • After a strong 2016, capital market experts remain optimistic — with 91 percent of investors bullish on access to equity capital — and expect the investment volume to continue at a solid pace in 2017; gateway coastal markets will be the biggest targets for capital deployment. • Multifamily is facing numerous opportunities, including increased apartment demand from Gen Z and Baby Boomers, allowing for a healthy and balanced market for the foreseeable future. Developers are also taking heed to the disruptive elements in marketplace by installing package lockers and rooms to accommodate online grocery deliveries, dedicated ride share waiting rooms and functional smart home technology. • With a new presidential administration and a focus on stimulating job growth, forecasters predict a positive impact on housing demand. Reduced levels of single-family home
supply, coupled with favorable demographic groups looking to purchase, all point to growth for residential construction in the years ahead, even if interest rates remain in the range of 4.5 percent. • The on-demand business model (think Amazon Prime and Uber) continues to transform options and expectations for consumers and extends to home design, green spaces, retail planning and more. They want more immersive involvement with places and spaces and that is how value will be created and realized in the re-defined landscape of economics, technology and demographics. “Delivering these forward-looking benchmarks for the housing industry is something we take very seriously,” says Linda Baysari, senior vice president of PCBC. “We’re excited to take a deep dive into these topics during the education sessions at PCBC in San Diego.” Each year, PCBC draws more than 10,000 attendees and exhibitors, serving as the nexus for the homebuilding industry. In 2017, PCBC will provide a full-spectrum experience, uniting top housing professionals for three days of active learning, high-powered collaboration and discovery in San Diego. Combining thoughtfully curated education sessions, unparalleled networking opportunities and a bustling exhibit floor, among many other features, PCBC is a true forum for productive engagement. For more information, or to request a free copy of the full report: www.pcbc.com/trends-2017. Image: Getty Images.
California Multifamily Firms Rank High, Says NMHC Seven of the country’s top 50 multifamily companies are headquartered in California, according to the National Multifamily Housing Council’s (NMHC) newly released 2017 NMHC 50 – the authoritative ranking of the nation’s largest apartment owners, manager, developers, general contractors, and, new this year, syndicators. They are: s Equity Property Trust of San Mateo
(59,260 apartment units) s The Irvine Company of Newport Beach (58,732 units) s Fairfield Residential of San Diego (41,864 units) s Steadfast Companies of Irvine (36,500 units)
s JRK Holding Properties of Los Angeles(27,514 units) s TruAmerica Multifamily of Los Angeles (22,400 units) s Highridge Costa Companies of Gardena (21,115 units)
46 California Buildings News • Q2 2017
The Institute for Real Estate Management reports that total actual collections for office properties were the highest in the following five metro-areas: San Francisco, New York City, Washington, DC, Austin, TX and San Diego. Absorption of office space was supported by a more intense pace of employment growth within the traditional office-using employment sectors. Vacancy rates in the office sector continued to trend downward, putting upward pressure on asking rents. However, a number of unknowns could have a significant impact on future growth, including: Space utilization— Will trends continue in terms of telecommuting, virtual and shared offices, and other office design efforts to reduce the square foot per employee? IREM Highlights Hottest Economic and job growth— Job growth has fueled occupancy Office Property Markets growth, but will that continue or will recessionary clouds form in the next 12 months? Includes Two California Development pipeline— Supply constraints have helped reduce Metro Areas in Top Five vacancy rates and put upward pressure on rents. Will new development outpace or lag behind growth in occupancy demands? While these megatrends are important, what’s happening in a property’s local market has a greater impact on the property’s performance. The best business decisions are based on a thorough understanding of the facts, including the ability to compare your property’s performance against similar properties in your market. Image: Getty Images.
Sideways Elevators Broaden the Design for Future Skyscrapers The National Electrical Contractors Association reports that ThyssenKrupp, a German elevator company, is working on an elevator without cables. Their new design will ultimately use magnetic levitation technology. This will allow the elevator to travel vertically and horizontally. In taller buildings this will allow several elevator cars per shaft. Wait times will be cut drastically by the possibilities. ThyssenKrupp is past the research and development stage, already testing the new technology in their MULTI elevator design. The new vertical city structures of Dubai (the world’s tallest and largest buildings) will incorporate such technology. This new elevator design will impact construction. Architectural design of buildings will no longer be limited to straight vertical structures. Buildings by design will now go even taller, taking on different shapes than historical vertical or cylindrical designs have required. For contractors this means larger projects with more capacity for all sorts of components. There will be more mega skyscrapers like those being constructed in Dubai, dubbed as “stand-alone cities.” These super tall structures will feature commercial, retail, residential, and recreational centers in one building stretching a mile into the sky and hosting 25,000 inhabitants. This evolving elevator technology is definitely changing skyscraper construction as we have known it.
Architectural Billings Up, Though Commercial Slows The first quarter of the year ended on a positive note for the Architecture Billings Index (ABI). As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the March ABI score was 54.3, up from a score of 50.7 in the previous month. This score reflects a sizable increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 59.8, down from a reading of 61.5 the previous month, while the new design contracts index dipped from 54.7 to 52.3. “The first quarter started out on uneasy footing, but fortunately ended on an upswing entering the traditionally busy spring season,” said AIA Chief Economist, Kermit Baker. “All sectors showed growth except for the commercial/industrial market, which, for the first time in over a year displayed a decrease in design services.” Image: Getty Images.
47 California Buildings News • Q2 2017
California Woman Makes History with SMACNA As the newest member of the elected board — and vice president — for the Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA), Angela Simon is tackling her new position through job shadowing and mentorship, just as she did when she became a project engineer for Menlo Park, California-based Western Allied Mechanical in 1987. “Although I had a degree in engineering, I immediately attached myself to my sheet metal foreman and sheet metal superintendent,” Simon said. “I understood that I still had a lot to learn, and these guys had been doing their jobs a long time.” She is currently the president of Western Allied Mechanical and was awarded SMACNA’s 2016 Contractor of the Year Award, in part for her work as a mentor for young workers. Simon was the first woman to serve on SMACNA’s board of directors, from 2007 to 2011. She will become SMACNA president in October 2019. “I just did the job I liked,” she said. But she’s starting to look at things differently now, as she approaches retirement. “They say women aren’t strong enough, and they can’t handle the work. That is so wrong, in most cases. We need to get more women out in front. “The culture of the construction industry has changed a lot in 30 years, but it’s changing slower for sheet metal than it should. We have to get it out front. We have to promote the opportunities for women. We have to talk about it, or it won’t happen.”
Angela Simon, center, president of Western Allied Mechanical, and Cyrus Patel, piping superintendent, give Sen. Jerry Hill a tour of the Menlo Park facility on April 7. Photo credit: Kevin Lee, Bay Area Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA).
NECA Launches New Career Center for Future Employees The National Electrical Contractors Association has launched its own career-focused initiative, creating an innovative service that will help connect contractors with quality workers in the electrical construction industry. The NECA Career Center is for members, their employees and chapters, and will feature resumes from members of NECA Student Chapters and any outside students who want to participate. “NECA decided to customize the job-seeking process for our members with a free, all-encompassing experience,” says Wanessa Alves, NECA’s Director of Members Relations. “NECA’s Career Center is the perfect place to post jobs and view resumes.” The NECA Career Center can be accessed at NECA’s website at http://www.necanet.org/careers. The site is navigable by students, employees and job-seekers. You will need to use your NECA userID and password for access, please contact Wanessa Alves at email@example.com for assistance. There is an option for students who are not in NECA Student Chapters to submit their resumes for review and inclusion. Other recruiting events will take place this year. NECA member employers and job-hunters interested in hiring students will be able to attend the 2017 NECA Student Chapters Job Fair at NECA’s annual convention and trade show, October 7 in Seattle.
48 California Buildings News • Q2 2017
(Continued from page 4)
Hundreds gathered on April 6 for the Salesforce Tower’s “topping off” ceremony, at which the last beam was lifted.
Boston Properties—which owns 95% of the building (Hines the other 5%) “is honored to lead a project that is bringing so much attention and new energy to San Francisco” commented Bob Pester, executive vice president, San Francisco Region for Boston Properties. “Designing and developing a building that is a beacon to our city and will be the first thing you see coming into the City has been very rewarding.” “It’s tremendously gratifying to see nearly a decade of design and planning finally approach the finish line,” said Paul Paradis, Hines senior managing director, a development partner. “And at this point, the building is exceeding even our most optimistic expectations. The building will be unlike anything in the market and it has been designed to provide maximum efficiency and flexibility to suit today’s workforce.” Each floor will have tall ceiling and complete open space, unimpeded by internal support columns, permitting designers freedom to create any sort of interior tenants’ desire. Nearby Millennium Towers has been plagued with foundation problems that have caused that 58-story building to lean. The Salesforce Tower used a different foundation strategy, one anchored in solid bedrock. “So the mantra everyone should leave with today is ‘bedrock baby’,” said Pester, adding, “It’s not going anywhere.” The structure is called Salesforce Tower after its namesake anchor tenant, which will occupy 32 floors. Salesforce CEO Marc Benioff, on hand for the ceremony, said, “My hope
for this building is that its meaning goes beyond its beautiful glass and steel structure. May the meaning of Salesforce Tower be the people within it who are deeply committed to making this city a better place for all of its citizens.” Benioff backed up this aspiration by promising to permit citizens and groups to use the top floor free of charge during weekends. Salesforce plans to begin occupying its new space in the tower early 2018. More than 60% of the remaining space has been leased to other entities. The completion of the project is scheduled for July 2017 with plans for tenants to take occupancy in October of 2017. Salesforce will occupy floors 1-30 of the building and the 60th and 61st floor. The other floors will be leased out to other tenants including Accenture, CBRE and Bain & Company. Construction for the Salesforce Tower began in 2013. It boasts 1.4 million square feet with approximately 7,000 square feet of rentable retail space on both the ground and fifth floors. The fifth floor space opens onto the Transbay Transit Center’s 5.4 acre rooftop park. The underground garage is approximately 200,000 square feet which makes the total square footage of the building close to 1.6 million. The project is being co-developed by Boston Properties and Hines, with Boston Properties owning a 95% interest in the project and Hines owning a 5% interest. The architectural team is led by design architect, Pelli Clarke Pelli and Kendall Heaton as the architect of record. The tower is engineered with enhanced seismic safety and high-performance design features in mind. Its 42 5-foot by 10-foot steel reinforced concrete load bearing elements extend from the foundation down all the way into bedrock. The 14-foot by 9-inch slab to slab heights allow for approximately 13-foot high unfinished ceilings, 10-foot high drop ceilings and soaring 10-foot high continuous clear glass windows. This frames a column-free interior providing maximum natural light to the work space. The top 150 feet of the tower will feature the highest public art light installation in the United States. Boston Properties and Hines live up to their environmental commitment by seeking LEED® Platinum certification by the U.S. Green Building Council. The building features an HVAC system that will distribute outdoor air to each floor. The unique, under floor air delivery system circulates air directly to tenants’ spaces and features individual control capability. This system provides enhanced indoor air quality and operates an HVAC system that is designed to be up to 40 percent more energy efficient than those used in standard office buildings. n
49 California Buildings News • Q2 2017
Centenarian Hotels (Continued from page 33)
Farther down south, the Hollywood Roosevelt Hotel has built a reputation on history and fame over nearly a century. Begun in 1929, the hotel hosted the inaugural Academy Awards, and over the decades it has welcomed illustrious icons through its doors, from Clark Gable, Carol Lombard, Shirley Temple, Charlie Chaplin and Marilyn Monroe who resided there, to Prince, Brad Pitt and Angelina Jolie. Today, the hotel is still buzzing with industry executives and talent, and stands as a landmark attraction and popular destination for locals and tourists from around the world. With 300 guest rooms and suites, hotel guests can choose from a variety of accommodations ranging from poolside cabanas to the modern Tower Rooms, designed by renowned interior designers Yabu Pushelberg with stunning views of the city and Hollywood Hills. To top it off, the hotel’s heated outdoor swimming pool provides guests the only locale in the world where they can swim in a million-dollar work of art painted by acclaimed artist David Hockney. The Hollywood Roosevelt Hotel is located at 7000 Hollywood Boulevard, bordered by the world’s most famous sidewalk, the Hollywood Walk of Fame, across from the world famous Chinese Theatre is home to the historic Hollywood forecourt, featuring handprints of iconic celebrities. n
Top photo: the Gable and Lombard private rooftop deck at the Hollywood Roosevelt Hotel. Lower photo: the David Hockney-painted pool. Photos courtesy of the Hollywood Roosevelt Hotel.
50 California Buildings News • Q2 2017
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The rooftop at the Fairmont Hotel is San Francisco was the first hotel in San Francisco to raise honey bees. Dishes served in the hotel’s Laurel Court restaurant incorporate herbs/honey from the garden. Honey is also an ingredient in the restaurant’s honey beers. Photos courtesy of the Fairmont San Francisco.
Commercial office buildings such as those occupied by tech firms like Twitter in San Francisco often take an enlightened approach to their roofs. A San Jose building at 488 Almaden Blvd., managed by Embarcadero Realty Services, boasts a rooftop garden and a beehive. Building Manager Brandi Rodgers says, “Our roof not only houses mechanical pumps, a communication well and water towers but also has a rooftop garden and bee hives. Two locally rescued bee hives were relocated to our rooftop where we hired a beekeeper, Bee Friendly, whom maintains the hives and harvest the honey for use and sell in our onsite café. Continuing our efforts to provide locally, we built a roof garden which contains seasonal herbs and vegetables for our café’s daily use and to sell during the monthly Farmers Market which is held in the main lobby of the building. Both are easy to maintain and our occupants love just how local the product is.” n
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51 California Buildings News • Q2 2017
(Continued from page 35)
“Parcel Pending successfully removes the crazy chaos of package management by assuming all the customer service responsibilities for package delivery, notification and retrieval,” says Calvo. Competitor Southwest Solutions Group “is seeing a massive trend of people electing to go to smart parcel lockers in both the multifamily and office markets. Regarding multifamily, the tenants are driving these changes as people more and more use online shopping, which means more packages. People are busier than ever and getting a package between 9-5 simply isn’t possible for most now days. In the offices, companies see the ROI in having a centralized package pick up location where they don’t have to have employees ‘searching’ for other employees to deliver and get packages signed for. In both markets, it is also a perk that people are growing to expect. I believe this solution is just scratching the surface and that the runway is very far ahead,” says Collin Sanders of Southwest Solutions. Akhtari says package management must envision the whole ecosystem. Her company’s philosophy is to “design a solution that addresses the needs of not only property managers, but the needs of everyone interacting with the system; that is, delivery carriers and residents, as well. Carriers need assurance that they can do fast, efficient deliveries that eliminate the dreaded second or third
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delivery attempt. Residents want round-the-clock access to their packages, and a helpful, easy-to-access support team if they need to reach out. The Luxer One solution is designed with all three users in mind. Features include multiple touchscreen stations for concurrent use, a ‘house’ account for deliveries where the name on the package doesn’t match the resident name in the system, and video surveillance monitored by Luxer One—not the property staff.” “Ecommerce is growing exponentially and more retailers are closing traditional brick and mortar stores. The impact of this trend has been profound in California, which has experienced a 10 percent year-over-year increase in package deliveries,” said Georgianna W. Oliver, founder and CEO of Package Concierge. “Our package delivery numbers are doubling monthly, and California is one of the most active markets. As online shopping grows, resident-focused multifamily operators understand the importance of package management for both their residents and onsite leasing teams.” A company spokesperson said further that California is one of the first markets to embrace package lockers, with approximately 500 properties using some type of electronic package locker, with the Los Angeles area leading the way. Industry officials say the next big package-management markets are higher education and multi-tenant office buildings. n
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52 California Buildings News • Q2 2017
(Continued from page 43)
This is but one example of the growing divide between our aspiration to be at the cutting edge of energy and environmental performance and the realities of our businesses, consultants, regulators and citizens. How did we get here? And more importantly, how can we get to a more sustainable course? Across the country, California is considered a leader in the drive toward high performance. With that often comes the assumption that “we’ve got it figured out.” From our perspective at the Streamline Institute, the reality is more nuanced. We do have a system that can produce great results, but it’s also one that imposes unnecessary burdens on all the stakeholders and unanticipated disincentives. Looking forward, California’s state-level mandates for high-performance buildings are on course for mandating Net Zero Net Energy for all new low-rise residential buildings statewide by 2020 and all new commercial buildings by 2030. Today, some California communities are even ahead of that—Santa Monica’s Reach Net Zero Code is live as of May 1. It’s time to take a fresh look at our California regulatory environment. It is clear that achieving these goals will require significant changes in building design, products, systems, and construction practices. One aspect not so often considered: we need a new approach to the regulatory environment itself. There are already many examples of confusion about what is required, wasted and duplicative efforts, unintentional disincentives, plan review and enforcement disconnects, and conundrums that may unduly impact certain kinds of projects and customers. Considering how these might be addressed provides some insight into how we might avoid greater issues in the near future. The bottom line: we need to put as much attention on streamlining as we do on the science, engineering, policy ßand codes. Real streamlining does NOT mean regulatory abandonment. Real streamlining means integrating the customer perspective, customer and project personas, and the cold hard realities of our economic and cultural disconnects into the process from the beginning. Real streamlining can’t be “patched on” after the fact. (For an examination of a few specific examples, see box on page 43.) Streamlining Needs to be Part of the Process, Not Something “Applied” at the End We need streamlining to be a part of regulatory development from the beginning, not something “patched on” after the fact. There is currently a working group, driven by statewide building officials attempting to fix some of the energy code regulatory disconnect cited here. While this has promise—to shift the needle as we move forward —it requires a new paradigm. Streamlining must be a core responsibility from the beginning to the end.
Full Engagement of the Marketplace Must Occur: Design Professionals, Vendors, Code Officials and Building Owners Old-school methods of public engagement involve posting official notices of hearings. We need new models of engagement going directly to the customers. Stakeholder engagement must include proactive outreach, high bandwidth technology-enabled communication channels tuned to customer and stakeholder preferences, and funded participation as necessary. In the absence of full stakeholder engagement, even streamlining efforts can become ironic examples of the challenge. One recent example: a large California jurisdiction mandated “electronic plan submittals” for all large projects with promised savings in time and money for everyone. This sounded appealing, but a red flag soon surfaced: the 73-page manual that covered detailed formatting and submittal requirements for simply getting plans into the system. What about the cost of reading, understanding, and implementing 73 pages of requirements? Then multiply that as jurisdictions adopt different requirements... pretty soon this good idea can become part of the problem. Enforcement officials must be empowered to achieve intended outcomes using alternative approaches Modern uniform building codes recognize that there is no way to craft a set of regulations that can anticipate every possibility. Not only are there complexities and variables that cannot all be addressed, but there are also innovations and new approaches that are constantly emerging. To most reasonably deal with the messy complexity of the “real world,” at some point judgment must be brought to the table. In the Uniform Codes, this is accommodated with the provisions that permit Alternative Materials and Methods Requests (AMMR’s). This same approach should be incorporated into Energy Codes and other regulations. In this manner, we can consider those inevitable situations where the intended result can be achieved by approaches that were not anticipated when the regulations were created. Closing The Streamline Institute welcomes opportunities to be engaged in the movement toward more effective and efficient regulatory environment. The Streamline Institute believes that real streamlining results in high-performance regulatory systems that are an integral part of our progress forward. Streamlining does NOT mean regulatory abandonment.
Malinowski is a Sacramento-based architect, former president of the American Institute of Architects California Council and president of the Streamline Institute: www.StreamlineInstitute. org. He was honored this year as an AIA Fellow.
53 California Buildings News • Q2 2017
(Continued from page 17)
surrounding legionella has changed dramatically with the release of ASHRAE Standard 188. Owners not compliant with this standard are now at much higher risk of liability should an outbreak occur. Lastly, the relationship between indoor air quality and productivity has been recognized and acted on by C-level executives across the U.S.” Ed Novy of Fitwel, a sustainability certification organization, predicts there will be a tenant demand for healthier spaces. “The importance of improving health, productivity, and quality of life has never been more important for the built environment. An essential role of workplace design should incorporate providing occupants enhanced health, comfort, and productivity. The concept of a healthy building includes products that improve indoor air quality, thermal comfort, lighting quality and acoustics. Healthy building design is capable of fostering health and recognizes that Sit/stand desks at CBRE’s LA office. Photo credit: Robert Downs Photography. human health needs, and comfort, are priorities. These workplace design elements are not a fad, if you Building wellness is a new phenomenon, one that is seen can offer commercial space that demonstrably improves the in only a relatively few number of structures, but we can quality of life and productivity of employees, just imagine how our entire world could achieve greater tenants will demand that.” goals across the board if more companies adopted healthier Examples of “well” buildings are becoming more standards. (See article on page 44 about a national study on evident throughout California, such as the main office how healthy working conditions are valued.) n of San Francisco general contractor BCCI Construction Company. Your commercial BCCI saw the benefit of designing and building to supIPM/Green/LEED specialists port employee health and wellness and decided to pursue WELL Certification for its new San Francisco headquarters. “I think WELL really is the future of sustainability,” says Kena David, BCCI’s sustainability manager. The open office layout maximizes natural light from large perimeter windows, and an acoustic ceiling treatment Serving commercial property applied to the open deck ensures that light travels throughmanagers throughout the out the space while also mitigating sound. Workstations Greater Bay Area...since 1930 are equipped with sit/stand desks for ergonomic comfort; focus rooms provide quiet work places to work; and for NPMA GreenPro Certified relaxation, a combined kitchen and lounge is equipped with ample seating, televisions, a pool table and even guitars. In addition to fitness incentives, BCCI eliminated sodas and sugary snacks and replaced them with water filtration stations and healthy snacks. Michael Scribner, president and CEO of BCCI, says employees are more connected than they were before. “The atmosphere is more conducive to how we work and how we want to operate into the future. Not only 415-922-1666 • 510-536-1222 because the environment is more pleasurable to work 408-295-3333 • 800-592-7777 in, but because of the collaboration that is happening,” says Scribner. www.cranepestcontrol.com
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