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BOMA Holiday Toy Drive ...See page 9
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BOMA Helps Provide Safer Workplaces
Fall 2013
In an increasingly threatening world, BOMA San Francisco members continue to produce educational training programs to better assure their office tenants of a safe working
environment. For instance, the fifth Annual Emergency Preparedness Seminar in September highlighted the best practices and lessons learned from a day-long, full-scale fire drill with the San Francisco Fire Department on the 29th and 30th floors of One Montgomery Tower. Since 2007 BOMA has produced emergency preparedness drills in member high-rise buildings to address a number of possible emergencies. The success of these events is directly related to the leadership of the Emergency Preparedness Committee staffed by BOMA’s Manager of Government and Public Affairs, John Bozeman. “To have over 120 firefighters traveling up 29 stories for a fire drill
is a rare opportunity, and I’m grateful to the team at Post Montgomery Center and the San Francisco Fire Department for allowing it to occur,” said Bozeman. “An efficacious BOMA drill requires planning a year in advance with the key leaders of the San Francisco Fire Department and BOMA members. It’s important that the scope and outcome of the drill are understood by all parties so that the
information collected is useful to everyone involved.” Emergency Preparedness Committee Vice Chair Ryan Rusler explains, “BOMA plays a vital role in emergency preparedness because it is the conduit of communication and information before, during and after large-scale events. BOMA also promotes the partnerships with local emergency vendors before a disaster.” For more information about BOMA preparedness programs, visit www.bomasf.org or attend a monthly meeting of the Emergency Preparedness Committee.
Above left: scene from fire drill. Right: BOMA SF Emergency Preparedness Seminar.
What’s Inside Views...
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Jump-Start Your Career • Page 2 Members on the Move • Page 5 Meet BOMA Members • Page 7 BOMA Education • Page 8 Mixing & Mingling... Page 11
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2 Jump-Start Your Career Through BOMA With Sarah MacIntyre, BOMA San Francisco President Looking back over my career, one of my biggest regrets was not being a more active member in BOMA San Francisco for my first entire decade in commercial real estate. Talk about being a late bloomer! My earliest BOMA memory is of being brought to a monthly luncheon by my then-boss (Todd Robinette) and wondering who all the people were and how they seemed to know each other well. It was a little daunting until I realized that I better “get with the program.” It was one of my better decisions. As with most things, reward comes from being engaged and putting a little bit of yourself into whatever you are spending time doing. I started attending meetings and began service on the Energy and Environment Committee. It was an eye-opening experience that kept me coming back for learning relevant data, current law education, friendly competition (through the Earth Awards program) and a true sense of dedication to the environment. Soon after I joined the Energy and Environment Committee, I became the Vice-Chair and found that putting the extra work into the committee opened many new doors for me. Have you noticed the “buzz” in the room during a BOMA luncheon or committee meeting? That energy comes from the tremendous sense of community that we enjoy at BOMA SF. Our membership understands that together we are stronger, especially when it comes to advocacy. This is possible because the existing volunteers are dedicated, but we always like to get different points of view from newly engaged members. It keeps the ideas fresh, reinvigorates the existing volunteers and allows new networking opportunities. Each BOMA committee is accomplishing impactful goals in different sectors of our industry. What areas are you attracted to—or better yet—what is outside of your comfort zone? There is something for everyone, and there is no better place—from a career, knowledgebase and growth perspective—to nurture your career than a BOMA committee or board position. What are you waiting for? Check out www.bomasf.org and don’t be a late bloomer. (Shown above: Sarah and daughter Nora.)
Thanks to BOMA San Francisco’s 2013 Corporate Sponsors* Platinum Sponsor
Able Services Gold Sponsors ABM Family of Services NRG Energy Center San Francisco Pacific Gas & Electric Company Recology Golden Gate
Silver Sponsors Alliance Roofing Company, Inc. BCCI Construction Company BWRS-Always Green CAC Real Estate Management Co., Inc. Cypress Private Security LLC Hines Kilroy Realty Corporation Metropolitan Electrical Construction, Inc. Paramount Group, Inc. San Francisco Electrical Contractors Assn., Inc. Universal Protection Service
Bronze Sponsors California Technical Contracting, Inc. CodeGreen Solutions Equity Office Georgia Pacific Hathaway Dinwiddie Construction Co. Hudson Pacific Properties Imperial Parking US LLC - Impark Marble West McMillan Electric Co. RREEF Securitas Security Services USA Shorenstein Realty Services The Swig Company, LLC ThyssenKrupp Elevator Corporation Unique Elevator Interiors Inc.
Friends of BOMA American Asphalt & Concrete Boston Properties C & C RiverRock Newmark Capital Building Maintenance CBRE Cole Supply Cushman & Wakefield of CA GCI General Contractors LAZ Parking ProTech Security Services, Inc. R.N. Field Construction, Inc. Rossi Builders The Lawson Roofing Co. Inc. Waxie Sanitary Supply Young Communications Wilson Meany *For 2014 sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com
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4 Prepare Your Building for the Future of Telecom Building owners and managers know that telecommunication infrastructure is one of the most critical features potential tenants look for. Tenant access to ultra high-speed, secure, scalable networks that support cloud computing, Internet and Business Ethernet is not a luxury, it’s a necessity! And end to end fiber is a must— copper can’t satisfy the growing appetite for bandwidth. tw telecom is a leader in “future fitting” buildings, providing next generation network connectivity that meets all those needs and anticipates tenant growth and technology advances. With our fiber optic network, we connect to nearly 20,000 buildings in the U.S. And our fiber doesn’t stop at the building telecom common area space (MPOE). We coordinate with your building engineer and riser management company to vertically pre-position fiber optic cable to all floors. Our unique, proactive approach conserves riser space, minimizes disruption and facilitates fiber connectivity directly to the tenant’s suite for optimum network performance and reliability. The result is a “close the deal” selling point that sets your building apart from other properties. Please contact tw telecom to upgrade and “future-proof” your property. Make your building’s telecom network accessibility a defining element of your value proposition!
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For more information, contact: Dave Ellebrecht, Vice President/ General Manager 925.953.7027 Dave.Ellebrecht@twtelecom.com
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5 Members on the Move Cole Supply has promoted Sandy Baxter to Commercial Office Building Segment Regional Manager, serving the Bay Area. Sandy brings a professional level of experience developed over more than 20 years as an active participant in the BOMA and commercial real estate communities. Universal Protection Service is pleased to announce that Kimberley Davis has joined its Northern California Team as Business Development Manager serving the Peninsula and the greater San Francisco area. With more than eight years in the security industry out of Universal’s San Diego office and an active BOMA member, Kim looks forward to building new relationships and providing potential clients solutions to their security needs. John Hancock Real Estate recently promoted Aaron Killen to Property Manager for the Market Center facility at 555 and 575 Market Street, San Francisco. Aaron has been in the property management field since 2005, served on the BOMA YP committee for five years and is now involved in the BOMA Careers in Real Estate committee. Amber Miller has been promoted to Property Manager of Three and Four Embarcadero Center. Amber was previously Assistant Property Manager of the buildings and brings more than seven years of experience to the job. She is a former BOMA YP Chair and graduate of University of California, Davis in which she majored in both Mathematics and Political Science.
Be sure to let us know about personnel changes at your company for Members on the Move. Send your news to Tory Brubaker at toryb@BOMA.com
Since 1976, businesses in the real estate industry have turned to us for the resources and expertise that help them grow. Our real estate group provides a wide range of services including financial statement audits, income tax planning and compliance, lease and construction cost audits and CAM reviews. For a complimentary consultation, please contact: Dan Sillin at (415) 796-6650, dsillin@oumcpa.com Scott Miller at (415) 796-6540, smiller@oumcpa.com
www.oumcpa.com
(415) 434-3744
Your commercial IPM/Green/LEED specialists
Crane welcomes fellow BOMA members Serving commercial property managers throughout Northern California...since 1930 NPMA GreenPro Certified
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7 Principal Member Profile
Liz Henderson, Property Manager CAC Real Estate Management
Liz Henderson is not only one of the driving forces behind recruiting a more robust CRE workforce in the Bay Area, she is one of BOMA San Francisco’s best examples of how a young professional can achieve a rewarding career in commercial real estate. Her advice to young people considering property management? “There are many details and minutiae that take up our time on a daily basis, but if you are able to look at some of the challenging moments as opportunities, then you can really enjoy it. There are so many aspects of our jobs that are extremely rewarding and satisfying, and we wear a lot of different hats. We are often given autonomy to make important decisions that affect a lot of people and cost a lot of money, so these decisions can be stressful yet empowering. Every day is different, which keeps the life of a real estate manager exciting. There are a lot of opportunities for growth if you push yourself. You definitely get out what you put in,” she says. Henderson also puts in quite a bit of work at BOMA, where she has been a leader in forming what is now the BOMA Young Professionals and serves on the BOMA San Francisco Foundation board, where her counsel is particularly useful, since she is an example of the type of person the industry wants. When she not juggling tasks downtown, you might run into her hiking nearby mountains, paddleboarding, patronizing trendy restaurants or walking her pug, Chloe. Liz enjoys hiking mountain trails in her spare time.
Associate Member Profile
Horace W. Green, Partner Buchman Provine Brothers Smith LLP
Attorney Horace Green is one of BOMA San Francisco’s foremost advocates at City Hall — and that’s not an easy job. “Commercial real estate’s most pressing challenge is a political climate that at best undervalues the contribution that commercial real estate makes to the SF economy, and at worse is frequently antagonistic to the needs and concerns of the commercial real estate industry,” says Green, former vice chair of BOMA’s Government Affairs Policy Advisory Committee. Green has also served as BOMA’s liaison to the San Francisco Chamber of Commerce’s Public Policy Committee and was on the Mayor’s 2030 Transportation Committee. How does San Francisco’s government act against the interests of commercial real estate? “The Board of Supervisors’ strategy over the past few years has involved placing increasing financial and policing requirements on commercial building owners and managers. Recent measures include a number of tax and transfer increases, as well as new requirements involving policing smoking and paying for healthcare. At the same Horace plays golf and likes time, the Board has made it easier for the industry’s competitors, such as mobile food watching a variety of sports. truck operators and on-line retailers, to do business here,” says Green. It irked Green that during our recent recession, the Board of Supervisors placed Proposition N on the ballot “in the name of tax reform,” which increased the real property transfer tax rate to 2% for sales and long-term leases of real property valued at $5 million to $10 million, and to 2.5% on such transactions involving real property valued at or over $10 million. “This measure was aimed squarely at the commercial real estate industry. The voters approved the measure, not recognizing that at a time when real estate values were dropping that increasing the disincentive to buy commercial property was a bad idea; and/or that measures that would result in commercial rent increases would lead to fewer jobs in the City,” says Green. What does Green do when he’s not fighting City Hall? Golf, softball, basketball and enjoying the Giants and the 49ers.
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8 Meet Akiba Davis, BOMA SF Education Coordinator Q:
As education is such an important BOMA Q: How do BOMA’s education programs help train function, what are your recommendations for beginning the workforce of the future, as more Boomers retire? an education program? A: In addition to membership A: I recommend Foundations seminars and workshops, we offer of Real Estate Management, which training that leads to a Real is an elective, as a first course Property Administrator (RPA) toward a RPA Designation. and Facility Management Foundations is an entry-level Administrator (FMA) Designation course that covers the fundamentals through BOMi Institute. The RPA of commercial real estate adminisDesignation trains students who tration, management, building manage a single building or a systems, accounting and reporting, portfolio of real estate assets with contract management and more. emphasis on building systems, risk It is perfect for those considering management, brokerage, and jobs as property managers, those enhancing overall financial perwho interface with property formance of the asset. The FMA managers, industry newcomers Designation trains students who Akiba Davis stays busy coordinating the many and anyone who may have learned manage a facility from the corpoeducational offerings at BOMA SF. on the job. rate perspective, either as a tenant or an owner of the facility, where they are responsible for Foundations is a five module 28-hour course taught the care, comfort, and productivity of their employees by by five seasoned industry professionals. The classroom maintaining building systems, technology, furniture systems, setting allows students to network, participate in team and daily maintenance. activities and take building tours. Foundations is a must To learn more about BOMA’s educational programs, for new employees because it gives a complete overview visit the education & training page at www.bomasf.org. of the commercial real estate industry.
BOMA SF 2013 President, Steven Ring, BOMA SF PAC Chair Kathy Mattes and BOMA SF's Vice President of Public Policy, Ken Cleaveland, met with Rep. Jared Huffman (CA Congressional District 2-North Bay) on November 5 to discuss federal issues currently affecting commercial real estate. These included a need for tax reform that would also give owners a permanent 15-year depreciation allowance for leasehold improvements, relax restrictions on foreign ownership of real estate, incent the installation of automatic sprinkler systems in existing buildings, and re-authorize and improve the federal law providing re-insurance for acts of terrorism that destroy buildings. The Congressman was not optimistic that any of these issues would come up for a vote in the current session. BOMA reps also suggested that the Congressman introduce legislation at the federal level to allow owners of commercial properties to correct ADA deficiencies — once identified — prior to being sued for a civil rights violation, similar to legislation that was passed in California last year. BOMA SF members will meet again with Huffman during the BOMA International Winter Business Meeting and National Issues Conference in D.C. in February.
National Issues
Steven Ring, Kathy Mattes, Rep. Huffman and Ken Cleaveland meet to discuss issues pertaining to BOMA.
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BOMA Young Professionals Give Back BOMA Young Professionals visited SFFD’s Toy Headquarters on October 29 to paint and decorate toy barrels for distribution to member buildings in midNovember. Since 1986 BOMA San Francisco has partnered with the SFFD Toy Program to collect toys for underprivileged youth and those displaced by fire or other catastrophes. BOMA memberbuilding lobbies provide a convenient toy collection point. Over the past 27 years, BOMA member buildings have collected over 1.2 million toys for the program which is the largest program of its kind in the nation. If your company is interested in volunteer opportunities, please contact SFFD Toy Program Chairperson Sally Cassaza at reno2150@pacbell.net, 415-777- 0440.
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10 Share the Clean Energy Experience NRG Energy Center San Francisco delivers environmentally sound, energy-efficient heating to downtown buildings. The benefits include:
Environmentally safer buildings with no on-site fuels or chemicals
Lower operating costs with no capital expense for NOx boiler retrofits Reliable 24-hour staffing by district energy professionals
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www.nrgthermal.com Chinese Visit: Continued from back page The good news is that some Chinese building industry leaders understand and appreciate the need for, and benefit of training in this regard, even though to date, they’ve been very slow to move in this direction. During the conference, BOMA China unveiled the Mandarin translation of BOMA International’s Guide to Developing a Standard Operating Procedures Manual. It’s an important first step toward educating commercial real estate professionals there about fundamental best practices. But while some understand that they need to do a better job of maintaining their buildings, the Chinese don’t have the culture of sharing data and benchmarking operating practices that we enjoy in North America.
Mega-Development We toured the impressive economic development zone of Tianjin. While we make a big deal out of a single new major office tower being constructed in our city, in Tianjin we saw 160 high-rise office buildings presently under construction at once! The Chinese are confident that global companies will locate there. It’s a port city with an airport where much of the traffic to date is cargo. Local economic development officials believe international companies will manufacture their products in Tianjin and fill the office towers and apartment buildings with support staff. Seeing
the magnitude of development there, I have my doubts… it will certainly take quite a while for the area to become fully occupied. And note: Tianjin is just one of literally hundreds of similar economic development zones! The Chinese are building entire cities everywhere. Once you see that, you begin to understand the impact on global markets for concrete, steel, etc.
Opportunities and Challenges There may be business opportunities for commercial real estate firms and vendors wishing to conduct business in China, but you must have patience, a long time horizon to secure business and get a deal done, and an understanding of major cultural differences and business practices. It seems like everyone wants to do business in China since it’s such a huge market. But my impression is that the best way to open the door to potential opportunities is to take the time to build personal relationships with senior corporate and government officials and, if possible, partner with a local firm in a joint venture. BOMA China can be very helpful with pointers on business meeting etiquette and business negotiation and decision-making practices. The “Wild Wild East” is a different world, with an unmistakable impact on ours. Marc Intermaggio, CAE, is the Executive Vice President of BOMA San Francisco.
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11 Mixing & Mingling
And the Winners are...
Elmer Johnson Golf Tournament Scenes from the Elmer Johnson Golf Tournament.
Above: Boston Properties’ Kevin FitzPatrick (center) won the Deck of Cards Raffle/Half Moon Bay Golf Package courtesy of NRG Energy Center’s Gordon Judd (left) and Dwain Botelho (right). Left: Courtney Conrad, Hines, and John Toppin, SCA North America, won Able's Best Dressed Contest.
YP Boat Cruise A special thanks to the sponsors of the annual YP Boat Cruise: Able, Impark, RN Field Construction Inc. and Universal Protection Service.
Top photo: Ryan Rusler, Associate Member of the Year, Steven Ring, BOMA SF President, and Phil Rapoport, Principal Member of the Year. Second: BOMA SF EVP Marc Intermaggio with Kathy Mattes, winner of the Raymond C. Nann Distinguished Service Award, and Ring. Third photo: Ring with Public Official of the Year Scott Wiener and BOMA VP Ken Cleaveland. Fourth photo: Ring and Anne Hinz, retiring from the board after six years of service.
About BOMA VIEWS Views is published by BOMA San Francisco. Associate Publisher: Tory Brubaker Editor: Henry Eason Ad and Art Director: Ellen Eason Eason Communications LLC Mai Sese and Sha Brown, Ace Parking Management; Alexandra Rowe, CBF Electrical; and Chris McKenzie, Kastle Systems.
To advertise, contact: Ellen Eason at 415.596.9466 or ellen@easoncom.com
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PRSRT STD US Postage PAID Oakland CA Permit No. 3729
BOMA San Francisco 233 Sansome Street, 8th Floor San Francisco, CA 94104-2134
415.362.8634 www.bomasf.org
Printed on recycled paper.
The Last Word Marc Intermaggio
What’s China Got to Do with Us? Plenty! BOMA China is the latest of 14 BOMAs from other nations to join the BOMA International Federation. Recently, BOMA San Francisco President Steve Ring and I participated in BOMA China’s first annual conference in Beijing. China is a significant trader, foreign investor and lender. Whether purchasing U.S. Treasury Bonds and global companies, or exploiting natural resources, China’s worldwide economic impact is staggering. China is the top trading partner with nine nations and is the second largest trader with at least eight others. By some estimates, real estate development and construction accounts for 30% of China’s economic growth. More and more Chinese capital is flowing into U.S. real estate. It behooves us to develop a greater understanding of how Chinese real estate investors and developers operate and what they’re after.
San Francisco is a gateway city to all of Asia, and we have more than 150 years of linkage to China. Our deep cultural and economic ties with China include having a Sister City relationship with Shanghai since 1979. According to the San Francisco Center for Economic Development, more than 25 percent of the City’s population is of Chinese ancestry, and many San Francisco companies, including our leading legal, financial, architecture, engineering and technology firms, are already doing business in China. As China’s economy continues to mature, more and more Chinese companies are looking to establish North American headquarters and business operations, and equally important, San Francisco Bay Area companies are looking to benefit by participating in one of the fastestgrowing economies in the world. Many local, state and private initiatives focus on boosting business between China and San Francisco, the greater Bay Area and California. Given this history and context, participating in BOMA China’s conference was an opportunity to learn in particular about the state of China’s high rise office building industry, and to explore whether there are opportunities for BOMA San Francisco and BOMA China to work together.
Immature Industry = Serious Need for Training, Standards, Benchmarking China’s real estate industry is still in its infancy, relatively speaking. Much of its high-rise development has transpired over just the past 25 years. Chinese commercial property owners/investors are not used to benchmarking operational procedures, and they don’t invest very much in preventative or ongoing maintenance. They’re only just beginning to be sensitive to energy efficiency and environmental sustainability. China’s office buildings appear much older than they are because of this. Continued on page 10 (Photo above: Intermaggio with Ring.)