PRESIDENT’S MESSAGE Greater Phoenix
Marion Donaldson Quintessential BOMA Member and banquets due to cost and availability, Marion brought the current venue and a contact to our attention. As you can see, this has turned out to be a marriage made in heaven as we continue to experience all the benefits of this great relationship with the Wyndham. In this economy, this relationship has proven to be a huge benefit for BOMA because we are experiencing savings without losing any quality. Thank you, Marion.
BOMA of Greater Phoenix 3200 N. Central Ave., Suite 1230 Phoenix, AZ 85012 602-200-3898 phone 602-200-3899 fax www.bomaphoenix.org Info@bomaphoenix.org Executive Director Mark Covington
BOMA GREATER PHOENIX 2011 OFFICERS AND BOARD OF DIRECTORS President Mark Stromgren, RPA®, LEED AP®, NorthMarq Real Estate Services Vice President Sandra Bryce, RPA®, Crown West Realty, LLC Past President/Governor Mary Anne Lanoue, RPA®, Transwestern Secretary/Treasurer Sheryl C. Brisbin, RPA®, Pacific Office Properties Trust, Inc. Associate Chair Meg McCabe, Otis Elevator Board of Directors Angela Carey, A.R.K. Pressure Washing Marii Covington-Jones, RPA®, LEED AP®, CB Richard Ellis (2nd Year) Shelly Cramer, GPE Commercial Advisors Susan Engstrom, RPA®, FMA, ACP Property Services, LLC Monica Greenman, RPA®, Hines GS (2nd Year) Darwyn Harp, Hines (2nd Year) Colleen LeBlanc, Universal Protection Service Donna Ong, Esq., Buchalter Nemer (2nd Year) Greg Pender, RRO, Highland Commercial Roofing (2nd Year)
ON THE COVER BOMA Bingo & Derby Dash Bylines is published by JENGO MEDIA. For advertising information, contact Brian Andersen at email@example.com or 801.796.5503. www.jengomedia.com
2 I BYLINES AUGUST 2011
As many of you know, this is my second time around as president of our local BOMA, and it is proving to be quite a different experience than the first. I have had a good deal of time to observe the organization from more of a global perspective rather than from in the trenches. The Strategic Long Range Plan was the main focus of my last presidency. This year, I have been able to observe the overall workings of our group, and I have to say, I am incredibly pleased with what I see. There are very dedicated committee members, both regular members and associate members, working side by side to achieve results far above my expectations. They hit the ground running this year, and it’s just half over. I can’t wait to see what is yet to come. Our BOMA office is staffed with two phenomenal people, Mark and Sarah, and we have a board of directors filled with talented, intelligent and motivated people. It is clear BOMA is in good hands, and we have a wonderful and bright future ahead of us. The YPG Committee (and all of the committees) is grooming many strong young BOMA players for the future. They have one thing in common – they all want to see the best for BOMA and our real estate community. In this newsletter, I would like to highlight one individual who consistently shows this devotion to BOMA – Marion Donaldson. Over a year ago, when we were struggling with our venues for lunch
One of our great challenges is providing engaging speakers for our monthly luncheon meeting. The Speakers Committee has done a phenomenal job filling these spots. One reason is due to people like Marion. Most times, and probably for good reason, we don’t see our friends as potential BOMA speakers. But Marion has a personal friend, Kimber Lanning, who Marion thought would make a good speaker. Marion passed her name on to the Speakers Committee. If you were fortunate enough to be at that lunch, you were able to hear Kimber speak about supporting local business first and by doing so, stimulating our downtown revitalization. She was one of the most compelling and memorable speakers we have ever had. This was from thinking a little outside the box. Thank you, again, Marion. I also want to thank all of the committee members who work tirelessly, and many times without recognition, behind the scenes to make BOMA the great organization we are. Thank you. Thank you all. Mark Stromgren, RPA®, LEED-AP® NorthMarq BOMA President 2011
DEVELOPING PROFESSIONAL SPOTLIGHT Janice Santiesteban
CB Richard Ellis
Hope/concern for commercial real estate market in 2011:
Ambition/challenges in the commercial real estate market:
One of my biggest challenges is working with our recession-weary retail tenants to monitor the financial health of their business to avoid potential vacancies.
First job: Telemarketer as a teenager
During high school I was an assistant at an advertising agency.
To be a chef
Favorite place in the valley to unwind:
To be a veterinarian
Favorite place in the valley to unwind:
At home with my husband and dog
Cooking, taking the dogs to the park
I enjoy golfing, reading, shopping, hiking and traveling.
A place you would like to visit someday:
Glass of wine
A place you would like to visit someday:
BOMA member since:
BOMA member since:
Why is BOMA important to you?
BOMA gives me an opportunity to learn from others in our industry.
Why is BOMA important to you?
Favorite BOMA memory/event? My favorite event is the annual visit to the State Capitol with the Government Affairs Committee for Advocacy Day.
I’m new to the management industry and look to BOMA as a great resource for education and networking opportunities.
Favorite BOMA memory/event? I’m a bit new to have a great favorite memory, but hope to have many soon.
New Associate Members Chad Benham Veterans Security
Danny Esparza DMS Facility Services
Michael Quattrocchi APG Security
Sun Valley Sealants, LLC
Jones Lang La Salle
Commercial Air Inc.
Bruce Lengyel Jeff Magann
New Developing Professional Member
DMS Facility Services
C&D Crystal Cleaning, Inc.
New Regular Members
Sarah Searight Cassidy Turley Commercial Real Estate Services
AUGUST 2011 BYLINES I 3
Derby Dash Kick-Off Event at Turf Paradise By Nicole Applegate, Western States Fire Protection Formerly known as Social Butterfly, this year’s Derby Dash started off with a bang. A steady mix of associate members and regular members gathered at Turf Paradise in Phoenix for the second annual kick-off event this past May. The purpose of the kick-off event was to encourage contestants and participants to plan out their schedules and to further facilitate everyone’s active participation throughout the duration of the contest. In light of the Kentucky Derby, participants were able to socialize with fellow Derby Dash contestants while scheduling appointments for the year and placing their bets on the horse races. “This year’s event was very successful,” said Chris Vetter with Securitas Security Services. “I had a great time mingling with other BOMA members, watching the horse races and setting up my appointments with property managers.” With about 50 people in attendance, participants had the opportunity to meet with new BOMA members and continue to build relationships with veteran members. Tiffany Lauchlan, with The Muller Company, has begun to see a successful outcome from the kick-off event. “Already this year I have met some new associate members, learned more about associate members who I already knew and
4 I BYLINES AUGUST 2011
reduced some of my expenses due to these new relationships,” said Lauchlan. “I encourage all property managers in BOMA to participate in Derby Dash, and I assure you it will not be a waste of your time.” For more information on the 2011 Derby Dash, please visit www.bomaphoenix.com to see how you can become a participant in this year’s contest.
AUGUST 2011 BYLINES I 5
Beach Blanket B-I-N-G-O for Charity By Betsy Ewbank, RPA, FMA, CPM, Inverness, LLC As part of the Special Events Committee, I find it is always fun to plan an event, especially when we try something new to BOMA. It was entertaining, crazy and sometimes frustrating to plan our inaugural Beach Blanket Bingo Charity Event that was held on May 19. We wanted it to be fun and relaxing, with snacks to eat and a great vibe for people to come out and have fun while networking and raising money for a great charity, “Foundation for Education.” We were nervous about the turn out, as it was something new and different. We were wonderfully surprised when people started to arrive and really get into the spirit of B-I-N-G-O. More than 75 people attended. Our lovely host Moondoggie (a.k.a. RJ Radobenko of Roofing Southwest) did a great job. We had lots of good food and drinks. The most fun was watching everyone really get into it. There was some name calling, some yelling and of course, winning of really great prizes. Believe it or not, at some points during the game, the room was even silent. We had a blast. Special thanks to all of our sponsors: Roofing Southwest, Harvard Clean, Enviro-Light Energy Solutions & Maintenance, Care-Takers Building Maintenance, Waste Management and Hernandez Company. Thanks also to our committee chair, RJ Radobenko, all of our committee members and most especially Sarah at the BOMA office. We couldn’t have done it without her. Thanks everyone, and here’s to planning the second annual BOMA Bingo event next year.
6 I BYLINES AUGUST 2011
One and Two Renaissance Square ByLines Interview with Monica Greenman and William Femer On June 9, 2011, Toni Covington of the BOMA Greater Phoenix Communications Committee met with Monica Greenman and William Femer of Hines to talk about the sustainability efforts Hines used to bring One and Two Renaissance Square to LEED Gold status.
Q: Hines appears to have a specific company focus on sustainability. How is that communicated to those of you in property management positions?
Q: How does your LEED certification affect leasing? A: In this climate, the major tenants are focused on sustainability and require LEED Certification in order to lease space from you. The more sustainable you are the more likely you are to secure a lease with a potential tenant.
Q: You list 20 percent alternative commuting in your project profile. Can you explain how that was achieved?
A: It is a way of life with Hines, a part of our company culture that has developed over 30 years. When we went for our LEED Certification, we found we already met or exceeded many of the requirements.
A: We worked with our tenants in this effort. Many of them have more than 50 employees and already subject to the Maricopa County trip reduction program.
Q: Which is more important to your company, profitability or sustainability?
A: It was difficult to set up our recycling program due to very limited space and the costs involved. However, we worked through that with our vendors and found a way to make it profitable.
A: We believe they go hand in hand. Our sustainability efforts are profitable.
Q: What do you use to benchmark and quantify your savings in your sustainability efforts and the profitability of your changes? A: We compare our manufacturer’s specification to our design specifications and use LEED data for comparisons.
Q: What was one of the challenges you met while setting up your program?
Q: What do you think is the single most important thing you have accomplished with your sustainability efforts? A: An enhanced relationship with our tenants. We offer our “Go Green Program,” which is an award from Hines recognizing our tenants’ efforts to support our building programs. They love getting the award and are willing to work to achieve it.
AUGUST 2011 BYLINES I 7
8 I BYLINES AUGUST 2011
AUGUST 2011 BYLINES I 9
Contractor Selection: Look for the Best Solution, not the Lowest Bid By Tom Pritscher, TEPCON Construction Inc. As companies grow, most will have to expand their present facilities or build new to meet their particular needs. In the process, they will need to hire a general contractor. Historically, using the guidance of an architect to pre-qualify and then select a contractor based solely upon price was the way to go. Fortunately, things have changed. The contractor is entering the building cycle much earlier, bringing a wealth of pre-construction services. This is not only a great help to the owner, but also the architect, in terms of scope and costs. For example, contractors, not architects, purchase construction materials and contract with subcontractors so they can provide real cost information and new approaches to the “build-ability” of the project during the development phase. What owners are realizing is that the low price is not necessarily the best price. A contractor, who provides value engineering and project life cycle cost analysis as part of their pre-construction services, is in a position to offer alternate products and methods of construction during the conceptual phase of the project, rather than after the finalization of the drawings. Changes after the finalization of drawings almost always equal more dollars spent. So, what’s the solution? The owner needs to take a look at the big picture, and then from that perspective, find out which contractor offers the services specifically needed. In the past, contractor selection has more often than not led to adversarial relationships during the course of construction. A lot of this has to do with the ability to predict the cost and to properly manage and bring the project in at that cost. This is in regard to private work where the selection can be of the most qualified bidder. In private work, think in terms of assembling the best team at the onset or as the project develops. Some might refer to this as a partnering approach. A team works together for the benefit of the owner; this way, everyone wins.
10 I BYLINES AUGUST 2011
Without question, a project will cost a specific sum of money. But this sum is unknown at the beginning of the project. Let’s say a project is projected to cost $1 million dollars. First, not all contractors have the same management skills, human resource pools or relationships with subcontractors, vendors and suppliers, not to mention capitalization. Second, there are unknowns in a project, such as impact of weather, hidden soil conditions, etc. Given these variables, the project that is projected to cost $1 million may come in for more or less depending upon what happens during any phase of the construction process. From this perspective, owners assembling a team might consider a “cost-plus” approach. In other words, select the best qualified contractor that can assist you and the architect in making the most cost-effective and appropriate decisions. Contract with them based upon a fixed fee for doing the work. With an open book process where all bids can be reviewed, you have a good chance of eliminating a lot of the issues described above and could potentially save a substantial sum of money while getting a building better fitting your needs. The traditional strategy of selecting the lowest bidder fosters an atmosphere of developing the best legal posture while looking for ways to maximize profits. When this happens, the owner losses and projects tend to have major cost overruns. In a team approach, YOUR problem becomes OUR problem. Everyone is looking for the best solution for the project, not themselves and their company’s bottom line. Established in 2003, TEPCON Construction Inc. is a General Contracting and Construction Management Firm, offering a full range of services including design/build, tenant improvements, renovations and facility construction services for such markets as office, hi-tech, industrial, health care, hospitality and retail. Visit www.TEPCON.com.
AUGUST 2011 BYLINES I 11
2011 Education Schedule Instructors Shelly Carley Cramer Clifton L. Jones, CDF, RPA, FMA, SMA, CAM Dan Skiles, SMA, CEM Pricing Regular classroom course: $850 for members, $900 for non-members Accelerated course: $1,000 for members, $1,050 for non-members Foundations of Real Estate Management: $450 for all students Registration Please check the event calendar on the BOMAPhoenix.org website for the latest information on classes. You can register by clicking on the class entry, then entering your information. You may pay by credit card online at registration or print out an invoice to submit a check request. Testing All BOMI class testing is now computer based. Your test fee is included in your class payment. However, you are responsible for contacting the testing company and setting up an appointment to take your test. You have a six-month window from the first day of a class in order to take the test.
Regular Schedule Boilers, Heating Systems and Applied Mathematics (SMA, SMT) Instructor: Dan Skiles Class is held from 5:30 to 7:30 p.m. beginning Sept. 7, and continues each Wednesday through Dec. 7.
12 I BYLINES AUGUST 2011
Foundations of Real Estate Management Class is held from 9 a.m. to 4 p.m. beginning on Oct. 7, and continues for five Fridays through Nov. 4.
Accelerated Schedule The Design, Operation, and Maintenance of Building Systems, Part I (RPA, FMA) Instructor: Cliff Jones Classes will be held from 8 a.m. to 5 p.m. Wednesday, Sept. 28, through Saturday Oct. 1. Asset Management (RPA & FMA elective) Instructor: Shelly Cramer Class will be from 8 a.m. to 5 p.m. Wednesday, Nov. 30, through Saturday, Dec. 3. Completion of Budgeting & Accounting, Real Estate Investment & Finance, and Asset Management earns the Property Management Financial Proficiency Certificate (PMFP) from BOMI, in addition to providing two of the required classes and an elective class toward your RPA designation.
Seminars Tenant Improvement for Commercial Real Estate: A one-day course from 8 a.m. to 5 p.m. on Oct. 20 on the management of TI projects and how to manage contractors and your tenantâ€™s expectations. Instructor: Cliff Jones Fee: $300 Blueprints: A one-day course from 8 a.m. to 5 p.m. on Oct. 27 on reading, interpreting and making the best use of blueprints. Instructor: Cliff Jones Fee: $300
September is National Preparedness Month National Preparedness Month is held each September and is a nationwide initiative to encourage Americans to prepare for emergencies in their homes, businesses and communities. September 2011 is the eighth annual NPM, and this year’s slogan is “This September: A Time to Remember. A Time to Prepare.” This year’s goal is to turn awareness into action by encouraging all Americans to take the necessary steps to ensure their homes, businesses and communities are prepared for disasters and emergencies. Do you have an emergency preparedness plan for your building? For today’s property managers, it is important to understand that current and prospective tenants will consider a building’s emergency preparedness plan as a key element in their leasing decision. For this reason, emergency planning is not only about protection of assets and minimizing liability, it is also about protecting, attracting and retaining tenants. Also, as each municipality has different rules and procedures, property managers should review or consult with the specific city in which their building is located for any specific requirements. Phoenix: www.phoenix.gov/fire Tempe: www.tempe.gov/fire Scottsdale: www.scottsdaleaz.gov Glendale: www.glendaleaz.com Chandler: www.chandleraz.gov Mesa: www.mesaaz.gov/fire Consider having an emergency contact person outside your area. Also consider participating in our fifth Annual Fire Drill Week. Commercial buildings in Phoenix need to host a fire drill twice a year, so why not join us with yours? Sign up on our Events Calendar at BOMAPhoenix.org and pick a day of that week (Oct. 24-28). Watch for more information on the event and on our pre-event prep meetings coming soon.
The Property Professional’s Guide to Emergency Preparedness is also a resource available from BOMA International to help property professionals develop emergency, evacuation and recovery plans. An emergency plan is a set of policies and procedures intended to reduce or mitigate any number of threats that may affect a facility. A comprehensive plan reduces the threat of emergencies through prevention, early detection, notification, effective evacuation or relocation measures, control/mitigation, communication and recovery operations.To determine how comprehensive your plan is, consider the following questions about the content of your current emergency plan: • Does your plan contain procedures for reporting an emergency? • Does your plan contain instructions for tenants to follow when an alarm sounds? • Does your plan contain illustrations of floor layout, emphasizing the location of emergency exits, manual fire pull stations, fire extinguishers and emergency phone numbers?
Creating a Plan BOMA International previously released some guidelines to help property managers start a plan or modify an existing plan. • Review your building’s emergency preparedness plan. Do you have a preparedness team to deal with emergencies when they arise? • Have your preparedness team take part in “what if ” exercises in which team members propose responses to a number of emergency scenarios. • Develop a multi-layered crisis communication plan that creates a fast and effective line of communication with tenants, local authorities and agencies and the media. • Determine how your company’s leave and salary policies will apply in emergency situations, such as a pandemic flu outbreak, when a significant portion of your workforce may not be able to come to work. • Identify essential personnel and consider cross training personnel to provide those critical services. • Identify building elements that may warrant special attention in the event of a natural disaster, such as roofing materials, flashing and coping materials, roof vents and air intakes, awnings, gutters and downspouts, roof-mounted, post-mounted or suspended signage, free-standing equipment and siding materials. • Review local evacuation procedures and identify the agency that will issue evacuation orders. • Determine how the evacuation order will be communicated and where evacuation routes and shelters are located. • Make certain all of your tenants are aware of the building evacuation procedures and encourage tenants to participate in evacuation drills. • Appoint a re-entry team to access building damage after the disaster. • Include a list of primary, secondary, and out-of-region suppliers to ensure an organization’s ability to rebound from a catastrophe is not hindered by a lack of resources. • Consider identifying off-site work facilities or telecommuting capabilities to ensure business continuity in the event of a disaster. • Does your plan contain a section highlighting the responsibility of tenants to select a fire marshal for their floor and the responsibilities of the designated fire marshal? • Does your plan contain a section on how to conduct fire/evacuation drills? • Does your plan contain a section on emergency prevention? • Does your plan contain a section on how to handle bomb threats, biological attacks or other threats to the building? • Does your plan contain a section on how to deal with natural disasters such as floods, power outages, hurricanes, tornadoes and earthquakes? • Does your plan contain means for communication with/to your tenants and include considerations for breaks in traditional means of communication?
AUGUST 2011 BYLINES I 13
BOMA Marketplace Asphalt
Disaster Recovery & Restoration
14 I BYLINES AUGUST 2011
BOMA Marketplace Security Services
AUGUST 2011 BYLINES I 15
16 I BYLINES AUGUST 2011