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Houston Building Owners & Managers Association May/June 2013

2013 Houston BOMA Building Expo 2013 Houston BOMA Building Expo Thursday, May 9, 2013 2 – 7 pm Westin Galleria Houston 5060 West Alabama The 2013 Houston BOMA Building Expo is back and better than ever…with exciting prizes, more vendors and great products, this is one event you don’t want to miss! Ask anybody who’s been to the Expo before— this event provides a fantastic opportunity to network with both vendors and peers, conduct some business, and have some fun! It is sure to be an educational and entertaining day for everyone in commercial real estate to build relationships and enjoy our industry. You could win tons of great prizes; make plans to attend today! To register, simply go to www.houstonboma.org and click on the Building Expo link under the Events tab. From there you can click on the registration link. We look forward to seeing you there! All facility managers, property managers, building engineers, developers, owners, asset managers and their assistants are invited. Any vendor not exhibiting will not be permitted to attend. Thanks to our sponsors:

2013 Energy Star Winners

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Southwest TOBY Winners

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Sporting Clays Recap 6-7 Legislative Briefs

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MARY STANTON, RPA, LEED AP JONES LANG LASALLE AMERICAS, INC.

President’s Message

The year is moving along at record speed and so is Houston BOMA. It is exciting to watch the flurry of membership involvement as we kick into high gear with awards, advocacy and activities. February was full of activity highlighted by the local TOBY Awards and Texas BOMA Advocacy Day in Austin. March was just as busy with the Southwest Conference and the regional TOBY Awards held in San Antonio. In April, we started the second quarter with a big bang (literally!) hosting a very successful BAC PAC Sporting Clays Tournament. This year’s local TOBY Awards banquet was at the Westin Memorial City and featured Len Cannon, local news anchor with KHOU Local 11 News, as our Master of Ceremonies. We had five local winners and started a new tradition of producing a video highlighting the building entrant, and the management and engineering teams who work behind the scenes to make a winning TOBY building. It was a huge success and really gave a personal touch to the whole process. Our five local winners moved on to the Southwest Conference Regional competition held in March in San Antonio. We are pleased to announce that Houston had two winners who will be moving on to the BOMA International Conference in San Diego, California in June! I know you will represent Houston well and make us proud. I want to

thank the TOBY committee, judges, regional judge and entrants for working so hard to make this year’s competition so successful. Houston has been consistently well represented at the International TOBYs and has produced many International winners over the years. I’m confident that this year will be no exception. Congratulations again to our winners! A strong contingency of 20 Houston and 100 Texas BOMA members descended on Austin for the 2013 Texas BOMA Advocacy Day in March. It is a testament to our team of lobbyists led by Robert Miller that Texas BOMA members are well received by our legislators and they are willing to take the time to hear our concerns. We held over 130 appointments with legislators who heard our thoughts on the issues we opposed and supported. We opposed proposed bills requiring mandatory sales price disclosure, which we believe will result in appraisal districts chasing sales pricing verses using income valuation method for commercial properties. We opposed appraisal caps on real property, because caps distort the market values of property, and result in commercial real estate paying a disproportionate share of property taxes. We also opposed legislation which would require owners to create a retainage trust fund account for the benefit of contractors and subcontractors. Since property owners frequently use contractual

retainage on construction projects, holding 10% retainage, and do not pay that 10% until after the project is completed, requiring a retainage trust fund account would increase construction costs, causing lenders to charge a higher interest rate, and likely require additional equity for construction loans. This legislation would unfairly protect one interest group at the expense of the other. Texas BOMA supported PACE legislation. This legislation provides another financing vehicle for property owners to finance energy efficient improvements on their properties. The public will bear no cost of this legislation but will reap the benefits of the environmentally-friendly improvements. Thank you to the Legislative committee and all the Houston members that attended this important event. We are also very proud of being recognized on the House floor and being presented with a House proclamation by Representative Dan Huberty. Our Third Annual BAC PAC Sporting Clay’s Tournament at American Shooting Center was a huge success. What a great turnout of more than 300 members participating to raise money for our PAC. The event was attended by a diversified cross section of our membership, many of which have not attended previous events. The day was full of networking and camaraderie, and wrapped up with a dinner and awards ceremony. I want to thank our continued on page 4

BOMA MISSION & VISION Mission The mission of the Houston Building Owners and Managers Association is to support and advance the interests of the commercial real estate industry. Houston BOMA will be an organization of advocacy and sustainable building practices that utilizes the strengths, talents and leadership of its members and industry associates to build value and lasting relationships with our community through professional development, networking and sharing of information.

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Vision To be the recognized industry leader in both legislative advocacy and professional development for a broad spectrum of commercial real estate professionals in the Houston market.

Houston Building Owners & Managers Association May/June 2013


Member Spotlight Congratulations to the 2013 ENERGY STAR Award Winners! On March 26, EPA and DOE honored businesses and organizations for their outstanding contribution to reducing greenhouse gas emissions through energy efficiency at the 2013 ENERGY STAR Awards ceremony. The following Houston companies were among those recognized: ENERGY STAR Partner of the Year - Sustained Excellence • CenterPoint Energy • Hines • Transwestern ENERGY STAR Partner of the Year • Memorial Hermann Healthcare System ■

Crescent Earns “A List” Award of Excellence for Superior Customer Service

Customers tab Crescent for 9th prestigious CEL customer service award Satisfied customers in Crescent Real Estate’s 25 premier commercial office buildings responded to a national survey with positive comments that helped Crescent earn the prestigious 2012 National Commercial Real Estate Customer Service Award for Excellence. Also known as the “A List” award recognizing commercial real estate’s Best in the Industry customer service, the award is judged through direct customer satisfaction surveys. Crescent Real Estate Holdings LLC has earned top honors from CEL every year Crescent has participated in the survey of its customers. Crescent won six consecutive Awards for

Houston Building Owners & Managers Association May/June 2013

Excellence from 2001 through 2006, and garnered top honors again in 2010, 2011 and now 2012. While 2012 marks Crescent’s ninth overall company Award for Excellence, it marks the second time each of Crescent’s premier office building properties achieved individual “A List” status. Additionally, Crescent improved 2012 overall property and service satisfaction scores over prior year winning scores. “Customer service is a core value, the heart of our company culture. Crescent is honored to be recognized directly by our customers for providing distinctive, high quality properties, along with exceptional dedication to overall customer satisfaction,” said John Goff, Chairman and CEO of Crescent Real Estate Holdings LLC. “When we provide superior service, it means we retain our customers.” ■

United Protective Celebrates 10 Years in Houston United Protective Services is celebrating their ten year anniversary in the Houston market. “Our BOMA membership has offered United Protective the avenue to brand our company and introduce us to potential clients. As an Allied Professional member for several years, I always try to seek out new AP’s and let them know that involvement equals success,” remarked Andy Allen, Houston Director. Andy currently serves as the Allied Professional Representative on the Houston BOMA Board of Directors. “I take my role seriously and I am hopeful that the other AP’s know that they can depend on me to be their advocate,” stated Andy. “The opportunities have been very rewarding.” Any Allied Members with questions on how to make the most of their membership are encouraged to contact Andy at (281) 935-1689. ■

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Join Now FOR HOT SUMMER MEMBERSHIP PRICES!! Now’s the time to become a part of BOMA, because we’ve discounted dues for the summer! * Our dues specials are below: Property Management Members – 30% Discounts!!! • Principal Member – $723 • Additional Manager – $436 • Additional Assistant Manager – $325 • Chief Engineer – $307 • Additional Chief Engineer – $239 • Government Member – $515 • Additional Government Member – $325 Additionally – for a limited time we will waive the $250 application fee! Go to our web site at www.houstonboma.org to download the membership application and email/fax/mail it in. For additional information, contact Liz at lsorsby@houstonboma.org. If you’re already a member, keep your association active and growing by recruiting your co-workers or employees to join us. ■

*This special only applies to new members – those who have not been members in the past 12 months.

President’s Message

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committee members and staff who worked tirelessly to make this event so successful and memorable. I also want to thank our underwriting sponsor ABM for standing by the BAC PAC year after year, along with all of our other sponsors. Thanks to all of you, we raised over $34,000 to go towards our PAC! I hope to see you all at the BOMA Expo, May 9 at the Westin Galleria. It should be another record year. All the booths sold out within two weeks, and attendance is projected to be at an all-time high. It’s always a great opportunity to network with your colleagues, meet our allied members and see what new trends there are in the building management industry. Also, do not forget about our June luncheon, which will feature our annual Broker Panel. This high-powered panel discussion will provide insights about the state of commercial real estate here in Houston and Texas. In closing, I want to thank again all our members, and especially our active volunteers, that make up the heart of this organization. I am proud to serve you as President, and I continue to be humbled by all of your efforts in making this such a great association. ■

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Houston Building Owners & Managers Association May/June 2013


Congratulations TO HOUSTON’S 2012-2013

TOBY

SOUTHWESTERN REGION TOBY AWARD WINNERS! Houston was well-represented at this year’s Southwest Regional TOBY Awards Banquet in San Antonio. We are excited to announce that two of our entrants won at the Southwest Regional level and will be going on to compete at BOMA International this June in San Diego! Congratulations to our winners! ■

Memorial Hermann Southwest Medical Plaza II Category: Medical Office Building Owner: Memorial Hermann Health System Management Company: CBRE Group, Inc. Manager: Elizabeth Stockstill

Houston Building Owners & Managers Association May/June 2013

World Houston 23 Category: Industrial Building Owner: EastGroup Properties, L.P. Management Company: EastGroup Properties, L.P. Manager: Sofia Rodriguez

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The Third Annual BAC PAC Sporting Clays Tournament was a booming success! We had over 220 shooters out on the course enjoying the gorgeous weather and camaraderie. We shattered the bar set last by last year’s event, and raised over $34,000 for our political action committee! Thanks so much to all who participated and made the event such an overwhelming success! Big thanks to our committee members— Jon Cogdill, Hines, Brett Williams, Transwestern, Mark Janssen, Hines, James Froelich, CBRE, Joseph Hebert, Cameron Management, Mark Johnson, ABM, and Chair Chuck Moore with CBRE for putting on an outstanding fundraiser and networking event. We couldn’t have had this event without our underwriter ABM Janitorial Services.

We’d also like to send a shout out to the other sponsors who made this event successful: Cart & Shoot-Out Sponsors:

INNOVATIVE CLEANING SOLUTIONS

Station Sponsors: Able Engineering ABM AEG Affiliated Energy Group Air Performance Service, Inc. Always In Season Blackmon Mooring BMS Management CBRE Cotton Crescent Real Estate Equities Cushman & Wakefield Granite Properties ISS Facility Services JOBS/AMST Millsap Waterproofing

Moody Rambin PM Realty Pyramid Waterproofing Reliant Energy an NRG Company Schindler Elevator Corporation Schneider Electric Standard Parking Structure Tone Southwest Thomas Properties Group ThyssenKrupp Trademark Construction Transwestern UBM Enterprise United Protective Services xpedx

Thank you to AMPCO System Parking for their assistance with parking attendants.

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Houston Building Owners & Managers Association May/June 2013


We shattered the bar set last by last year’s event, and raised over $34,000 for our political action committee!

Houston Building Owners & Managers Association May/June 2013

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TEXAS BOMA

Advocacy Day

On February 20-21, members from Houston BOMA joined forces with other Texas BOMA members for Texas BOMA Advocacy day in Austin. After being briefed on the issues, 26 teams of BOMA members held 130 meetings with our State Representatives and Senators! The exciting day was made even more special when the Texas House of Representatives passed a resolution recognizing February 21, 2013 as Texas BOMA Advocacy Day at the State Capitol! Houston’s own Mary Stanton, Brett Williams, Tammy Betancourt, Steve Ash and John Kelley were invited to the dais for the proclamation. Thank you to all who attended this very important event – your efforts truly make a difference to the commercial real estate industry. ■

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Houston Building Owners & Managers Association May/June 2013


Legislative Briefs THERE’S A LOT GOING ON – WE’RE KEEPING TRACK FOR YOU! At City Hall Houston BOMA scored a major win for members on water bill appeals! At their meeting on April 10th, Houston City Council approved an addition to the water appeals process to allow for “exceptional circumstances” consideration. When this revision to the ordinance was initially introduced, commercial users were not included in this appeals process: only single family, multifamily, and non-profit users were eligible for relief under this circumstance. Thanks to Houston BOMA’s intervention and successful communications with council members and the Mayor’s office, we were able to secure the inclusion of commercial users in the appeals process. Houston BOMA would like to thank Councilmember Oliver Pennington for introducing the amendment on our behalf. At the State On March 25, the House Ways & Means Committee met to take up, among other bills, HB 2775 by Rep. Dan Branch (R-Dallas). This bill would exclude from

Houston Building Owners & Managers Association May/June 2013

gross revenue, for purposes of the Margin Tax, amounts commercial landlords collect from tenants for pass-through expenses, such as taxes and contracted services. Importantly, several members of the Committee, including Chairman Hilderbran (R-Fredericksburg), are involved in the commercial real estate industry, giving a general understanding of the issue. Texas BOMA members attended the hearing and provided testimony. Our members shared with Rep. Branch information on fairness and fiscal impact of the current tax structure. At press time, the bill is pending in the Committee, meaning no action has been taken, yet. Rep. Branch is working on a committee substitute to lower the fiscal note on the legislation, which is currently around $36 million for the biennium. Chairman Hilderbran said his intention was to compile a matrix of tax issues, showing the various types of Margin Tax fixes that are intended for fairness, such as this bill and others that would make entities engaged in similar businesses taxed similarly, as well as their cost to the state. Because of the bill’s fiscal note, we remain concerned about its likelihood of passage. We will continue to work with Rep. Branch and the Committee on the legislation, and will keep you informed as things progress. ■

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Houston Building Owners & Managers Association May/June 2013


NEW HOUSTON BOMA

MEMBErS

Bill Burke Director of Sales US LED, Ltd. 6807 Portwest Dr. Houston, TX 77024

Fran Youngstrom Asset Manager Unilev Management Corp. One Riverway, Suite 100 Houston, TX 77056

Jeffrey L. Megow Vice President Floor Zone LLC 10200 Hempstead #1G Houston, TX 77092

Beto Cardenas Chief Engineer Lincoln Property Company 16666 Northchase Dr. Houston, TX 77060

Angelia B. Helfrich Executive Assistant Highland Resources, Inc. 1001 Fannin St., Ste. 4700 Houston, TX 77002

Velma Marin Assistant Property Manager Crocker Partners 3050 Post Oak Blvd., Ste. 120 Houston, TX 77056

Stephen Lloyd Senior Chief Engineer Transwestern 1000 Main Houston, TX 77002

Shane Cawood Senior Property Manager Parkway Realty Services 3200 Southwest Freeway, Ste. 1290 Houston, TX 77070

Gloria F. Catalani Operations Manager Highland Resources, Inc. 1001 Fannin, Ste. 4700 Houston, TX 77002

Michael B. Goza, RPA Assistant Chief Engineer CBRE 1120 Medical Plaza Dr. Spring, TX 77380

Jack L. Gregoire, CPM Director of Operations Boxer Property Management Corporation 720 North Post Oak, Ste. 500 Houston, TX 77024

Felix R. Rodriguez Chief Engineer Cameron Management 1001 McKinney, Ste. 580 Houston, TX 77002

Christophe Merriam Vice President Econocuts 15716 S. Brentwood Channelview, TX 77530

Michael Kasmiersky, CPM Senior Property Manager Cassidy Turley 1990 Post Oak Blvd., Ste. 710 Houston, TX 77056

Jason A. Tillman Director of Business Development HarvardClean 333 Clay St., Ste. 3620 Houston, TX 77002

Christina A. Gay Leasing & Property Manager Navisys Group 3000 Weslayan St., Ste. 125 Houston, TX 77027

Leon G. Miura, CPM Property Manager Rosemont Realty 13105 Northwest Freeway, Ste. 1060 Houston, TX 77040 Skye Thompson Property Manager Lillibridge Healthcare Services 13111 East Freeway, Ste. 203 Houston, TX 77015

If you would like to join Houston BOMA or know of someone who should join, please contact Liz at Houston BOMA at lsorsby@houstonboma.org. Houston Building Owners & Managers Association May/June 2013

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BOARD OF DIRECTORS President Mary Stanton, RPA, LEED AP – Jones Lang LaSalle Americas, Inc. Executive Vice President Tammy K. Betancourt, CAE – Houston BOMA President-Elect Brett D. Williams, CPM – Transwestern Vice President Marshall B. Heins, CPM – Memorial Hermann Healthcare System Vice President of Finance Gregory J. Jones – Cushman & Wakefield Immediate Past President Mark R. Nicholson – CBRE Group Directors Joseph Hebert – Cameron Management Mark Janssen – Hines Kirk O’Neal, CPM – Crescent Real Estate Equities, LLC Greg Pell, CPM – Stream Realty Partners AP Representative Andy Allen – United Protective Services

COMMITTEE CHAIRS A/P Business Exchange Committee Peggy Viers – Always in Season BAC PAC Sporting Clays Shooting Tournament Chuck Moore – CBRE Group Building Expo Committee Russell Griffin – Air Performance Service, Inc. Construction Industry Council Billy Sams, RPA – Crescent Real Estate Equities, LLC Generation BOMA Adam Rose – Hines Golf Classic Jim Roll – ISS Facility Services Legislative Advisory Committee/BAC PAC Jon Cogdill, CPM – Hines Media/Social Networking/Public Relations Task Force Mike Mrozek, CPM – CBRE Group Meeters/Greeters Georgette French – American Anchor Professional Development & Education Meredith Cress – Hines Research Advisor Chad Nusbaum – Piedmont Office Realty Trust Special Events Committee Brandy Vargas – Behringer Harvard TOBY Awards Committee Amy Wagner – Hines

Save the Date ANNUAL BROKER PANEL LUNCHEON June 18 The Junior League of Houston Every year we host a panel of tenant and landlord brokers to help us predict development and growth in the upcoming year in the commercial real estate market. And each year, it’s one of our highest attended luncheons. We all need their predictions to help us make critical decisions. Don’t miss this electric and informative event that’ll help shape decisions for the industry all year long. If you have a question you’d like to see answered by the brokers, simply email Liz at lsorsby@houstonboma.org with your burning query! We can’t wait to see the follow-up to last year’s lively discussion. Find out the answers to your questions and more on June 18. Register yourself and a colleague online at www.houstonboma.org and save the date for a stimulating networking lunch. ■

Calendar of Events May 2

June Professional Development & Education Committee – 11:30 am

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Tammy’s BOMAversary

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RPA Course – Real Estate Investment & Finance (BOMA Office)

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Special Events Committee – 10:30 am

4

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Building Expo Exhibitor Set-Up (Westin Galleria) – 3-8 pm

Special Events Committee – 10:30 am

11

LAC/BAC PAC – 7:30 am

9

Building Expo (Westin Galleria) – 2 pm

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Expo Committee – 3:30 pm

18

14

LAC/BAC PAC – 7:30 am

Broker Panel Luncheon (The Junior League) – 11:30 am

15

Golf Committee – 3:30 pm

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Golf Committee – 3:30 pm

23

Board Meeting – 7:30 am

27

Memorial Day (BOMA Office Closed)

23-24 BOMA International Conference (San Diego, CA) 27

Board Meeting – 7:30 am

Newsletter Editor: Liz Sorsby – Director of Membership & Professional Development

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Houston Building Owners & Managers Association May/June 2013


May/June 2013 Newsletter