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BOMA SF Foundation to Help Solve Building Workforce Shortage... See Page 12

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Summer 2012

Office Buildings Create Major Economic Impact Developing and operating the office buildings in San Francisco requires more than 70,725 employees and generates almost $2 billion in economic activity, according to a recent study by George Mason University, commissioned by the Building Owners and Managers Association International. Says study author Professor Stephen Fuller, “Office buildings represent a continuing and accumulating stream of expenditures to support their operations, with ongoing expenditures for management, maintenance and repair, building services and utilities. Combined, these continuing expenditures have a huge, positive effect on the many local businesses that provide contract-building services and, in turn, generate demand for a wide range of workers.” Fuller says offices are becoming ever more important in the American economy, as we “shift away from goods-producing jobs (steel, lumber, electronics) and into services-producing jobs (professional and business services such as healthcare, education, financial, and legal). Inventory and expenditures also grow with the economy’s general expansion.” The study also shows that for each dollar spent on office building operations, the economy gains $2.57. For the $79.7 billion spent on office

building operations nationwide in 2011, that economic multiplier contributed more than $200 billion to the country’s gross domestic product. The commercial real estate sector also produces 19.6 jobs for each $1 million spent on operations and 1,561,517 in direct jobs across all sectors of the national economy in 2011, in addition to an estimated 2.2 million more jobs directly related to the on-site management and operations of office buildings. “As the study shows, when even a single building is constructed and filled with workers, the economic impact of that activity, multiplied over the lifetime of that building, makes a enormous contribution to the value of a community,” says Meade Boutwell, president of BOMA San Francisco. Says Executive Vice President Marc Intermaggio, “We only hope that when government officials devise legislation and regulations affecting the commercial real estate sector, they take into consideration the vital role our industry plays in creating the right work environment for the many industries that keep San Francisco prosperous and growing.” The 93 local BOMAs represent members that operate 9.9 billion square feet of commercial and government-owned office space, providing workspace for 44.3 million office workers.

What’s Inside Views...     

Leadership Perspective • Page 2 City Hall Status Report • Page 3 Members on the Move • Page 5 Meet BOMA Members • Page 7 State & National Issues • Page 9

Mixing & Mingling... Page 13


2 Q&A

With Meade Boutwell, BOMA San Francisco President November. We'll share a booth with BOMA International on the trade show floor, and we were invited to help review and select proposed presentations for its educational sessions. Do you also oversee the new BOMA San Francisco Foundation?

Meade Boutwell in the cockpit of an historic plane at the Museum of Flight event during the BOMA conference.

You’re president of the BOMA San Francisco board of directors. What does the board actually do?

The short answer is that we set organizational strategy, measure the performance of our organization and work to advance BOMA San Francisco’s mission and achieve its long-term objectives. How do you go about this?

We share observations about economic and business trends that impact leasing, vendor sales activity and federal, state and local public policies that impact our industry. We invite a wide range of experts to give us their views on many topics affecting our business. This helps us calculate strategic direction, achieve consensus on key issues, and effectively allocate our resources. What do you do to boost BOMA’s impact within the overall business community?

BOMA is an active member of the Bay Area Council, the San Francisco Business Federation, the Alliance for Jobs and a Sustainable Economy, the SF Chamber of Commerce, SPUR, the Power Association of Northern California, and the SF Small Business Network. Also, we are a Greenbuild 2012 Bioregional Partner, helping to promote the US Green Building Council’s major conference at Moscone Center in

While we created and support the Foundation, it is a legally separate 501(c)3 charitable entity that is governed by a different board of directors, a few of which also sit on BOMA’s 501(c)6 trade association board. We’re very enthusiastic about how the work of the Foundation is progressing, and I am confident that the Foundation will enable us to expand and diversify our workforce. This is a perfect example of the board identifying a challenge, setting a long-term objective, devising a strategy to accomplish that objective (in this case, creating a whole new organization), and getting down to business! How do board members make time for all this work?

It is very much worth the time spent. What you learn from your involvement enriches your performance at work and deepens your understanding of the industry we work in. You also gain access to people and networks that are of immense value to your career—and your company’s objectives. What is the best way I can get my thoughts to the BOMA board?

We try to put a least one board member on each committee. So if you’re involved on the committee level, you should see them there and can talk to them one-on-one. Otherwise we try to attend events and are always open to a phone call or email.

Thanks to BOMA San Francisco’s 2012 Corporate Sponsors Platinum Sponsor

Able Services Gold Sponsor

ABM Family of Services Pacific Gas and Electric Company Recology Golden Gate

Silver Sponsors Alliance Roofing Company, Inc. CAC Real Estate Management Co., Inc. Cypress Security Equity Office Properties Hines Kilroy Realty Corporation McMillan Electric Companies Metropolitan Electrical Construction, Inc. Paramount Group, Inc. ProTech Security Services, Inc.

Bronze Sponsors Biagini Waste Reduction Systems, Inc. CTC-California Technical Contracting, Inc. Georgia-Pacific Hanson Bridgett LLP Hathaway Dinwiddie Construction Co. Hudson Pacific Properties, LLC Imperial Parking (US) LLC – Impark Marble West NRG Energy Center San Francisco RREEF Real Estate San Francisco Electrical Contractors Assn., Inc. Securitas Security Services USA, Inc. Shorenstein Realty Services The Swig Company, LLC ThyssenKrupp Elevator Corporation Unique Elevator Interiors Inc. Universal Protection Service

Friends of BOMA Boston Properties CBRE C & C RiverRock Charles Pankow Builders, Ltd. Cole Supply Cushman & Wakefield GCI Inc. ISS Facility Services Inc. LAZ Parking MJM Management Group Nor-Cal Moving Services Richlen Construction R.N. Field Construction, Inc. Sky Rider Equipment Co., Inc. The Lawson Roofing Co. Inc. The Mohawk Group Waxie Sanitary Supply Young Electric Company. For sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com


3

Status Report A summary of San Francisco government actions affecting the operations of the commercial buildings and The City’s economic well being.

Major Change in SF Business Taxes Proposed The Mayor and the Board of Supervisors have reached an accord on converting the current business tax program from one based on payroll to one based on gross receipts. BOMA has been very involved in the discussions on a fair rate for the real estate industry, and, as part of a total package that also raises the annual business licensing fees, funds an affordable housing trust fund, and does not increase the real estate transfer tax rates, has agreed to a gross receipts rate that will gradually, over five years, replace the payroll tax for all businesses in San Francisco – including real estate. This new tax structure will be submitted to the city’s voters in November and would

need a 50% + 1 to pass. Gross receipts are less any real estate or parking taxes paid by the property. BOMA is neither supportive or opposed to this tax measure. Here are additional details: The current payroll tax is 1.5% on payrolls that exceed $250,000/year. The proposed gross receipts tax rate for real estate is .285% on the first $5 million in revenues and .30% on revenues above $5 million. The gross receipts tax applies only to revenues collected on properties located in the City and County of San Francisco. If passed in November, the gross receipts tax will be phased in over five years, starting in 2014, gradually replacing the payroll tax. The rate for real estate revenues above $25 million will increase to .325% in 2020. The new annual business licensing fees will climb from $25– $500/year to $90 – $35,000/year. Firms with less than $1M in annual revenues will not pay a gross receipts tax, but will pay a slightly higher annual business licensing fee. BOMA San Francisco urges its members with properties in the City to review their leases to ensure the above tax increases, if passed by the voters, can be fairly apportioned under the terms of the building’s leases.

For further updates, visit www.bomasf.org/advocate and www.bomasanfrancisco.blogspot.com

The World is Going Mobile – What About Your Building? You probably own a “smart phone” and a laptop that has a wireless function that can connect to your company’s network. You probably bring one or both to the office. Now multiply that by 50% of the employees of every tenant in your building. If this is too abstract, focus on the chief executive of a tenant that is rushing from his office to the elevator to the ground floor lobby or garage in the building and loses reception on his smart phone multiple times along the way. What does that do to enhance the tenant experience and branding of the building as a first-class office building? At its most basic, a DAS is a targeted wireless system that distributes the signals of licensed carriers as well as unlicensed “wi-fi” signals–if enabled–within a building through a design that increases coverage areas and boosts bandwidth capacity. And while we refer to a DAS as “wireless,” as with everything in a building, a significant amount of equipment, cabling, and antennas are required to create a “wireless” experience. There are two types of systems–dedicated carrier and multicarrier systems, with the multi-carrier most often being “hosted” either by a third party integrator or a carrier. Dedicated systems are often found in single tenant buildings where a

company has a preferred provider; multi-tenant office buildings should go the route of “neutral host” multi-carrier systems. Most providers need a minimum of 10 years to get a return on their capital investment (which can be in excess of $2MM), and ask for multiple extension options. In certain circumstances, the owner may agree to assume ownership and management responsibility. “Future proofing” upgrades are an important consideration, as is exclusivity, coordination with other building systems, and antenna placement issues. One thing is clear– the demand for more bandwidth and coverage within commercial buildings for wireless devices is on a significant and irreversible growth trajectory. The outdoor “macro” network is overloaded and buildings need to think “inside out” not “outside in.” For certain larger tenants, a leasing decision includes, as an RFP item, the availability or right to install a DAS. Building management should consider whether and how a DAS system can enhance a building’s value. – Report by Manuel Fishman, Partner, Buchalter Nemer. He may be reached at 415.227.3504 or mfishman@buchalter.com


4 Careful Planning Required for Major HVAC Retrofits Upgrading or replacing HVAC systems can present major logistical challenges. Planning and proper execution are essential to ensure a successful project that minimizes the impact on the building. Western Allied Mechanical specializes in major retrofit services. Our Special Project division manages major mechanical system modifications such as equipment replacement (chillers, boilers, cooling towers, air handlers), central plant upgrades, and energy management systems. As HVAC systems in buildings reach the end of their life cycle, it becomes important to proactively investigate all options, weighing benefits versus cost. Complete retrofit services include surveys, assessment, budgeting, engineering design, scheduling, permitting, turnkey construction, and commissioning. Western Allied Mechanical (WAM) provides complete retrofit services.

Hoisting for boiler replacement at Levi’s Plaza.

Western Allied Mechanical provides high-performance, design-build HVAC solutions and impeccable service. We perform energy benchmarking and audits, and can adjust or retrofit your facility for maximum efficiency. Our advanced precision controls, coupled with an experienced engineering staff, are able to troubleshoot and quickly solve comfort and consumption issues. Recently celebrating our 50th anniversary, Western Allied continues to be a leader in providing customer satisfaction.

One recent WAM retrofit project with demanding logistics was the replaceWells Fargo project required the removal of an old flue from the adjacent I. Magnin building. ment of the boiler plant at Wells Fargo Bank Union Trust branch at 2 Grant Street. Central utility steam provided by NRG was installed to replace the gas-fired boilers. The old steel flue, which was supported from the adjacent building, was removed to the delight of that building’s owner. Another recent project was the replacement of the chiller and cooling tower at the Parnassus Heights Medical Building, where mechanical space was tight and the busy hillside streets required the development of careful rigging plans. As compliance with Bay Area Air Quality Management District emissions standards is driving the need to retrofit or replace boilers, WAM has completed many successful boiler upgrade projects. These projects usually require the work be completed with minimal or no down time to the building.

www.westernallied.com

For more information: Special Projects: Pete Kelly Service: Rob Monaghan Phone: 650.326.0750 Email: info@westernallied.com


5 Members on the Move Skyline Construction has hired former Skanska USA executive Rick Millitello as its new President. Millitello is a 31-year veteran who has overseen the construction of campus-size projects for companies like HewlettPackard, Sun Microsystems, Johnson & Johnson, Genentech, IBM , Kaiser Permanente, Verizon and Sutter Health. He ran Skanska USA building construction as general manager and executive vice president and was responsible for all California building projects. David Ford has joined Transwestern as Senior Vice President on its San Francisco Bay Area team. David will be primarily responsible for leading and overseeing the operations and expansion of Transwestern’s management services platform in Northern California. Joe Braucher has been promoted to Branch Manager of San Francisco for Ampco System Parking. He most recently managed the parking at Embarcadero Center for Boston Properties. A long-time San Francisco resident, Joe attended Sacred Heart High School and obtained his undergrad degree and MBA at USF (University of San Francisco). Kara Braun has returned to the Bay Area to assume the role of AlliedBarton’s San Francisco District Manager. Kara has been with AlliedBarton for more than 10 years, serving numerous roles including Business Development Manager, Director of Business Development, Vice President of Business Development and Vertical Market Director. She will have overall responsibility for service delivery to clients and employees. Greg Kiskinen has joined Hudson Pacific Properties as the Assistant Property Manager at 901 Market Street. He will be a part of the significant redevelopment of the California Historic Landmark and help manage day-to-day operations. Previously, Greg was with Shorenstein Realty Services. Greg also serves as sponsorship chair of the BOMA Young Professionals Steering Committee.

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Congratulations to Boston Properties’ Amber Miller who received her FMA (Facilities Management Administrator) designation. She now holds the dual RPA/FMA designation. Amber is Assistant Property Manager of Embarcadero Three and Four and is currently Chair of the BOMA Young Professionals Steering Committee.

In Memoriam...BOMA San Francisco mourns the loss of long-time BOMA member Fredric S. Freund, of Hanford Freund & Company. Fred was the principal owner of the firm until 1994, when he sold the business. He remained as Senior Vice President, actively involved in the company and commercial real estate . Fred was a tireless advocate for our industry and participated in various iterations of BOMA’s government and public affairs committee and the codes and regulations committee. He became a Certified Property Manager (CPM) in 1959 and was a very early pioneer in the professionalization of the industry.


6 Skyline Construction Installs New Ventilation System in Transamerica Pyramid New fan system is quieter, easily maintained, uses less energy and is much less disruptive to implement than traditional air-handling equipment.

San Francisco’s iconic Transamerica Pyramid (above), the newly installed FANWALL® system (center), detail of pipes (inset).

Operators of San Francisco’s iconic Transamerica Pyramid recently avoided the costly disruption of replacing an aging ventilation system by installing a new-tech Huntair® modular FANWALL® system, thanks to the efforts of general contractor Skyline Construction. The retrofit process, says Skyline Construction Senior Vice President Randy Scott, avoided weeks of tenant disruption, noise and unnecessary expense and resulted in a new system that requires much less energy than the older technology. He adds that the FANWALL TECHNOLOGY produces minimal noise and vibration, alleviating irritation for tenants above and below the ventilation equipment. Confronted with the major disruption associated with replacing the old air-handling fans, Transamerica Pyramid construction and engineering personnel and Skyline’s construction and subcontractor team came up with a logistical solution that will be an attractive alternative for other buildings that need to replace their antiquated ventilation systems. The FANWALL system had the added benefit of operational redundancy. Should a fan failure occur, the multiple fans of the FANWALL system would ensure operational continuity until the fan could be changed out through a simple maintenance effort. By implementing the FANWALL system, the owner avoided having to incur the cost and disruption of demolishing walls and a costly rigging operation that would have been incurred with a conventional like-for-like fan replacement.

Ranked among the top 25 general contractors in the Bay Area, Skyline Construction is a 100% employee-owned company with offices in Santa Clara and San Francisco. Specializing in building infrastructure, data centers, tenant improvements, and technical life science projects, Skyline Construction has been a leader in Bay Area building for over 15 years and is committed to saving clients time and money.

For more information: Randy Scott Phone: 415.908.2513 Email: rscott@skylineconst.com Website: www.skylineconst.com


7 Principal Member Profile

Kathy Mattes, Director of Asset Services CBRE, Inc.

When Kathy Mattes speaks at committee meetings, heads turn toward her out of respect, because she’s exerted leadership in so many areas of BOMA San Francisco. She’s been president, served on the board for six years, and served on the Government & Public Affairs Committee, the Political Action Committee, the Member Services Committee and the Life Sciences Task Force. She says, “I cannot imagine working in an industry without knowing what is going on around me, and there is no better way to meet others in this industry than to get involved with BOMA. I have met wonderful people, made good friends, and had the pleasure of counseling many people wanting to get into or move up in our industry.” Biggest industry challenge today? “Finding new talent to replace those who will be retiring over the next decade.” That’s why she’s advocating for the new Careers Committee. She says through that panel and the Young Professionals Committee, BOMA’s educational Kathy Mattes likes to create unusual pieces of jewelry. programs and committee service, BOMA can replenish retiring building professionals. (She’s wearing a necklace Committee service, she emphasizes, is the best way BOMA members can get the most benefits she made.) from the organization. “Where else can you gain leading-edge information that makes you smarter and more prepared for the changing environment in which we work? My advice is — do yourself a favor, get more involved with BOMA and take valuable knowledge back to your workplace,” she says. But Mattes is not all business. She likes to hang out in places like Oslo, Shanghai or some other travel destination with her husband, or tend to the garden at her weekend home in Sonoma County. And she gives full reign to her artistic side by making her own jewelry. If you like what’s she’s wearing the next time you see her, she just might sell it to you. (Make sure you ask for a BOMA discount.)

Associate Member Profile

Jeff Palmer, Vice President Able Engineering Services

Though known primarily for expertly supporting BOMA San Francisco’s labor relations policies, Jeff Palmer has also co-chaired the Codes and Regulations Committee. Active BOMA volunteerism is just one of the ways that Able Engineering Services achieves prominence within the industry. Says Palmer, “I have ensured that each of my team participates in at least one BOMA committee. Both the activities and committee work at BOMA have allowed us to understand and support the needs of the real estate industry. In addition, it has allowed us to help influence and shape policies affecting the region.” Palmer has served on a steering committee that helps improve labor relations. In doing do, he says, “I have been given the opportunity to work with government officials, private leadership groups and all levels of the real estate industry which has allowed me to grow professionally. My involvement helps me understand the priorities of building owners and influence and communicate the priorities of the industry.” His success as a communicator arises from his very personal style. “Telephone calls, e-mails, text messages are all great ways to communicate, but they are communication tools which do not replace a conversation. As the pace of business increases, it becomes more difficult to complete a thorough job instead of just reacting. It is often better to have a face-to-face conversation,” says Palmer. To get away from the downtown hubbub, Palmer is known to pick up a golf club, but you may also encounter him on a hiking trail in the High Sierras.

Jeff Palmer enjoys hiking and spending time in the Sierras.


8 Why Should You Attend a BOMA International Conference? Why would you lay out two or three grand and take out three or four days from your busy schedule to attend BOMA International’s annual Every Building & Expo? I learned more than a few reasons when I attended my first BOMA International BOMA SF attendees conference in Seattle in June. Henry Eason and  You’re probably going Marc Intermaggio to learn how to do your job enjoying the Museum of Flight party. better by attending some of the dozens of educational sessions like how to run your building or company more profitably, communicate more effectively, gain an edge over your competitors, improve your negotiating skills, make your building more sustainable and less costly or improve your working relations with tenants, vendors and coworkers. (All that’s worth at least the cost of the trip.)  Through networking at luncheons, hotel lobbies, programs, expo aisles and evening events, you will rub

shoulders with the top people in your field. (Plus you’re going to have a lot of fun because conference hosts and exhibitors knock themselves out arranging enjoyable experiences with delicious food and drink.)  You will develop stronger personal and professional bonds with the people you work with back home. (And they will be among the best people, because they were shrewd enough to attend the conference.)  By visiting the exhibit hall, you will get demos and descriptions of the latest products and services that will improve the way you run your business. (And you will get tons of fun free items that exhibitors give you–and maybe win some fabulous prizes.)  And you’re going to be inspired by many leaders like new BOMA International Chair Joe Markling (CBRE out of southern California), whose examples of service to their industry and high standards will make you want to go home and be a better professional. (And next year’s conference is in San Diego, June 22-25, 2013. Put it in your budget!) – Henry Eason

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9 National Issues Energy Tax Incentives, sponsored by a broad buildings industry coalition, gain support on Capitol Hill. The bill would make improvements to the Energy Efficient Commercial Buildings Deduction (Section 179D of the Internal Revenue Code). Building owners may now qualify for a tax deduction of up to $1.80/sf for energy efficient upgrades that achieve a 50 percent reduction in annual energy cost to the user. Partial credit is also available for the three major subsystems of the building (lighting, envelope, and HVAC and hot water systems). Says BOMA International, “In practice the bar has been set so high that it is extremely difficult to achieve, especially for existing buildings.” President Obama’s “Better Buildings Initiative” calls on Congress to modify the law, including ideas for restructuring the deduction to make it more useful and beneficial to the commercial real estate industry, and in turn, promote energy efficiency retrofits.” FIRPTA legislation moves forward in Congress that would increase from 5% to 10% the ownership stake of a foreign investor in a publicly traded REIT, without its being subjected to exhaustive foreign investment in real estate regulations. The proposed law would also ease IRS regs.

State Issues ADA Reform moves forward in the California legislature, holding forth the hope of an end to costly frivolous lawsuits by disabled people who are trying to game the system for personal profit. Tax hike proposals on the November ballot still concern Californians who are struggling to keep the state from losing employers wary of the high cost of doing business here. Governor Brown proposes raising income and sales taxes, and another proposal would increase taxes for “green” building projects for five years. Energy efficiency loan program moves forward in the legislature. It would use the state’s bonding authority to let property owners obtain low-cost loans for energy efficiency construction and projects.

For more information, visit www.bomacal.org.

For more information, visit www.BOMA.org.

BOMA San Francisco Hosts Japanese Building Executives

NGXGNG

Top Japanese corporate real estate executives visited BOMA San Francisco recently to learn about the BOMA 360 Performance Program and to hear about local and state disaster preparedness initiatives.

LEVELe Elevator Interiors pair a highly configurable format with eco-friendly materials & finishes. Energy efficient, easy on the budget

and built to last, LEVELe suits green buildings of all kinds. www.forms-surfaces.com


10 Capital Building Maintenance’s Diverse and Expanding Service Offering Gives One-Stop Shopping Capability to Property Managers At its founding over 25 years ago, Capital specialized in high-rise window washing for complex San Francisco properties. Now Capital offers more than 10 different specialty services, meeting the requirements of premier properties across the SF Bay Area.

Capital’s many services include high-rise window washing and sidewalk cleaning.

“CBM has been our service partner for many years, performing façade cleaning, as well as interior and exterior window washing. We also recommended their services to general contractors for TI final cleanup projects and have always received positive feedback. Our relationship continues because we can count on their office staff and field crews to provide the service we need, with the results we expect. They are an A+ vendor for our property.” Randy Valdez, Operations Manager, McCarthy Cook & Company

“We make a concerted effort to look for ways to make a property manager’s job easier,” says President Eric Huber. “That not only includes personalized customer service, but also developing a robust service offering that takes into account the many different and often random requirements facing property managers of premier buildings.” With this in mind, Capital has developed service expertise over the years in areas beyond its core competency of high-rise window washing. For example, many of the buildings that Capital services need a periodic façade cleaning that goes beyond a normal window washing cycle. Capital crews can rinse, pressure wash, or chemical clean your façade depending on the current state of your building’s exterior. Buildings with parking garages have used CBM’s parking lot cleaning service to wipe away years of automobile exhaust and odors. CBM customers have also used its graffiti removal service, sidewalk cleaning and pigeon abatement service to tackle unforeseen problems at a moment’s notice.

Final Cleaning Services For more than five years, Capital has greatly expanded its final cleaning services for contractors and property managers. Services include prepping tenant improvement projects after construction has finished, prepping areas for brokers’ tours, and providing move-in/move-out services that include trash hauling and general cleanup to ready your space for potential or new tenants. These services are typically required right away, and Capital crews take pride in meeting customers’ schedules.

To learn more, contact: Capital Building Maintenance Eric Huber 650.588.9808 eric@capitalbldg.com www.capitalbldg.com


11 Supervisor Campos Pledges Open Mind on Office Issues Promising to keep his door open to representatives of the office buildings community, San Francisco Supervisor David Campos told BOMA SF’s Government & Public Affairs Committee (GAPAC) recently that he will engage BOMA members early and often to avoid unnecessary conflict. Campos cosponsored legislation with Supervisor Mark Farrell that allows any business with a payroll under $500,000 to expand its payroll by $250,000 without having to pay the city's 1.5 percent payroll tax. And he said he will work to prohibit unnecessary overtime among public employees and will support reforms on systemic inflationary budget problems. Attorney Campos represents District 9. A native of Guatemala, he earned scholarships to both Stanford and Harvard University before entering government service. Says John Bozeman, BOMA SF’s manager of public affairs, “GAPAC members enjoyed a healthy and free exchange of ideas with Supervisor Campos and were very pleased with his evident interest in helping San Francisco continue to attract jobs.”

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12 Quite a Fellow... When he isn’t delighting audiences with his wit and erudition or providing industry wisdom to many BOMA San Francisco committees on which he has served, Tom Gille is the Chief Operating Officer of CAC Real Estate Management Co., Inc. in San Francisco. And now Gille has a new title to place behind his already distinguished name: BOMA Fellow. This is thanks to a BOMA Fellow Tom Gille. newly launched program by BOMA International honoring a very few national figures for “exemplary and sustained contributions” in their field. Gille says, “My goal is to leverage my 30 years of experience creating course content and teaching commercial real estate. My plan is to focus on reviewing upcoming educational offerings that will enhance the skills of the next generation of property managers.”

Warning: Buildings Face Severe Shortage of Workers Demographers and commercial real estate leaders worry that there won’t be enough trained executives to properly operate office buildings in America in just a few years. Half of senior CRE executives will soon be retiring, according to research firm RHR International. According to the U.S. Census, 2.3 million of the 4 million employees in the real estate industry were born before 1962. “That’s one of the main reasons we created the BOMA San Francisco Foundation,” says Executive Vice President Marc Intermaggio. “If we act now to expand our workforce, we will ensure that our area will not see the talent shortage that other cities face. Having competent building professionals makes San Francisco a powerful venue for companies to locate their offices.” The new foundation is seeking donations from real estate operating companies, service firms, individual industry leaders and philanthropic organizations in order to provide innovative programs to meet the workforce challenges of the future.

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13 Mixing & Mingling

Spring Golf Tournament and Wine Tasting The weather was gorgeous for the 2012 BOMA Associates Spring Golf Tournament on May 14 at the Marin Country Club. Non-golfers enjoyed a day of touring and tasting in the wine country, and everyone reunited for dinner.

PAC at the Park BOMA members and their guests gathered for the annual PAC at the Park on April 18 for a fabulous evening of socializing and Giants baseball. Thanks to our generous sponsors, who delighted us with their tasty culinary creations and beverages!

Top photo: Dennis Rosario, Jeff Spicker, Kathy McKenna and Ken Cleaveland. Middle left photo: David Hayes and Gordon L’Estrange. Middle right photo: Ken Resinger and Michelle Donnelly. Bottom photo (front row): Devin Mastripolito, Sean Kelly, Michael Wynkoop and Greg Blanford.

Top photo: scene from the country club. Second photo: Paul Richards and Brad Collins. Third photo: Amber Miller and Norm Ditto. Fourth photo: Chris Baker and Bill Whitfield. Bottom photo: members and guests on the wine tour.


14 . Site Surveys & As-Built Services

BOMA SF Membership Luncheons

. Area Calculations

Sept. 27 Oct. 25

. Computer-Aided Drafting Services . Drawing Conversions

Nov. 29

Membership Luncheon Annual Membership Meeting & Member Recognition Luncheon Membership Luncheon

. Presentation Plans . Programming . Tenant Tracking Reports

Luncheons will be held at The City Club , 155 Sansome Street, 11th Floor, San Francisco.. For a complete calendar of BOMA events, visit www.bomasf.org/calendar

. Leasing Exhibits . File Management & Archiving . Drawing Inventory

CTC

. Egress Plans

CALIFORNIA TECHNICAL CONTRACTING Technical Support & Design Solutions 48 Second Street, Suite 300, San Francisco, CA 94105 Tel: 415.495.6220 Fax: 415.495.6266 Web: www.ctc-sf.com

Member

BOMA AIA

Certified

WBE LBE

Save the Date! BOMA-SF-PAC 25th Anniversary honoring co-founders Tom Gille, CAC Real Estate Management Co., Inc. Jerry Cahill, Calfox, Inc. for their unparalleled support and dedicated leadership of BOMA’s political activities in the creation of our association’s Political Action Committee

September 18, 2012 • 5:30 – 7:30 p.m. Shorenstein Executive Offices Russ Building, 235 Montgomery Street, 16th Floor (more details to follow)

About BOMA VIEWS BOMA VIEWS is published by BOMA San Francisco. Associate Publisher: Tory Brubaker Editor: Henry Eason Ad and Art Director: Ellen Eason Eason Communications LLC San Francisco

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The Last Word: Marc Intermaggio Buildings ’R Us It’s high time to correct some of the myths that are perpetrated about commercial real estate, myths that can cause bad public policy. Myth: Commercial buildings are owned by old fat cats who limo around town stuffing their pin-striped silk suits with gobs of rent money. Reality: We the People actually own most of the skyscrapers, the millions of us who have an interest in pension funds and other financial instruments that invest in REITs and various types of partnerships. Your retired mother or your kid’s school teacher or the worker who is repairing your cable TV or collecting your trash owns commercial real estate. Actions that damage the financial interests of building owners directly affect such people. Myth: Big buildings are full of nothing but large corporations that can afford to pay plenty of taxes. Reality: The 187 million square feet of office space in the four counties represented by BOMA San Francisco contain tens of thousands of small companies, branch offices, numerous sole proprietors, nonprofits, medical offices, educational institutions and government agencies. There aren’t that many large corporations that occupy an entire commercial building or even multiple floors. When legislators think of tall buildings as cash boxes, they should know that implementing any additional property taxes or other costly regulatory burdens on commercial building owners, those increased operating costs will largely fall on their tenants, most of whom are small businesses. Public officials should also realize that these small firms that are, incidentally, the largest driver of employment growth, are agile enough to escape the harm of overburdensome costs by moving across the county line…or over the Bay or Golden Gate bridges…and even into neighboring

states, taking their tax revenues and their jobs with them to a more business-friendly area. Myth: Buildings irresponsibly consume vast quantities of energy. Reality: Buildings, per se, consume almost no energy, standing empty. It’s the occupant firms that consume the energy. Property operators and their staffs foster many programs that help tenants use energy wisely and efficiently. One example is BOMA San Francisco’s popular EARTH Awards program that encourages buildings to compete to attain higher levels of energy efficiency and overall sustainability. But, ultimately, it is the tenants who must agree to practice sustainability. Myth: Big cities are nothing but inefficient energy hogs that cause pollution. Reality: Wrong again. Cities are actually much more energy efficient than suburbs. New York City, for example, uses fewer resources per person to operate than any other city in America. Why? Because big cities aggregate and share resources. And they are vertical, so they maximize the benefits of smaller real estate footprints. This is particularly true of cities where people can walk to work or ride mass transit or bike, as opposed to the suburbs, where most workers need to commute by car. Tall buildings symbolize different things to different people. But they are not merely monolithic, self-serving structures – either in terms of ownership, operation or occupancy. Our buildings house many small businesses banding together under the same roof to produce goods and services, provide jobs for our local citizenry, and support the communities in which our properties are located. In San Francisco alone, our industry supports nearly 15,000 jobs and contributes more than $2.5 billion to the local economy. Legislators and regulators would do well to remember the human faces and jobs behind the brick and mortar, steel and glass. Human beings and their need for safe, clean, secure, well-maintained workspace in which to create and produce goods and services are why our buildings are here in the first place. Marc Intermaggio, CAE, is the Executive Vice President of BOMA San Francisco.

BOMA SF Views 2012 Summer Edition  

BOMA San Francisco's quarterly newsletter.

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