Zero Net Energy Advocates Address BOMA Audience Increasingly green California codes and financial incentives are driving the push toward Zero Net Energy (ZNE) buildings in California, a panel of sustainability experts told a BOMA San Francisco audience in July. ZNE facilities are ones that produce at least as much power as they use. (Some use the term NZE—Net Zero Energy.) They cited a recent study by McGraw Hill Construction saying
green building retrofits will decrease building operational costs 13%, boost a building’s asset value 4% and produce a payback for the retrofit in seven years. Ted van der Linden, DPR Construction’s director of sustainability, PG&E Principal Peter Turnbull and Environmental Buildings Strategies Principal Matt Macko made the joint presentation. Noting that 75% of buildings are not high-rise, Turnbull said lower buildings can achieve ZNE goals more (Continued on page 12)
Top photo: DPR Construction office uses daylighting and energy-saving Big Ass Fans (photo courtesy of Big Ass Fans). Lower photo: panelists Peter Turnbull, PG&E; Matt Macko, Environmental Buildings Strategies; Ted van der Linden, DPR Construction.
What’s Inside Views...
Meet BOMA Members • Page 6 Members on the Move • Page 7 Title 24: Costs & Opportunities • Page 11 Win a TOBY! • Page 13
BOMA’s Workforce Development Update... Page 15
2 Thanks to BOMA San Francisco’s 2014 Corporate Sponsors*
Face-to-Face Meetings Are Best
With Sarah MacIntyre, BOMA San Francisco President
Able Services Gold Sponsors
How do you know that property management is officially part of your DNA? While attending the 2014 BOMA International Every Building Conference and Expo in Orlando, I went for a run around the hotel, about a mile loop. The air was stiflingly thick as I made my way through the hotel’s parking lot and then I saw them—the four extra-sized cooling towers that were keeping the interior oasis as cool as a movie set from “The Truman Show.” I stopped, took pictures and instantly emailed them to the engineering crews back in San Francisco. How could I not share such an impressive grouping of equipment! PM geek alert...I was definitely at the right convention. A couple of notable items from this year’s conference. The strength of our local chapter was ever present— from a staffing and membership standpoint. Overall, we are more progressive and appropriately aggressive in our political involvement. Our member and community engagement is great. Environmentally, our requirements and independent actions are setting the bar higher than the rest of the nation. As most members are in our large and very concentrated central business district, we have a geographic advantage, which allows our members to network, attend luncheons, engage in committee work and attend educational programs regularly. Many BOMAs are in farflung areas, where members have to drive an hour or more to attend the variety of events needed to make for an effective organization. Adding two or three hours of commute time to a one-hour panel meeting or lunch is daunting, even for the most dedicated BOMA member. Face-to-face synergy, learning and relationship-development are much easier for members of our BOMA. One chapter shared with me that they have three luncheons a year, compared with our nine luncheons. I can’t imagine only having a handful of those opportunities a year to mingle with my colleagues and service providers. What else happened at BOMA International’s annual meet? Committee meetings, networking, classes, case studies and, of course, checking out all the new products plus candy, popcorn and gadgets on the convention hall floor. The committee meetings are always worthwhile to learn about national issues and get collective member feedback.
ABM NRG Energy Center San Francisco ProTech Security Services, Inc. Recology Golden Gate Universal Protection Service
Silver Sponsors Alliance Roofing Company, Inc. AT&T BNBuilders CBRE Hines Kilroy Realty Corporation Metropolitan Electrical Construction, Inc. Pacific Gas and Electric Company Paramount Group, Inc. San Francisco Electrical Contractors Assn., Inc. Unique Elevator Interiors, Inc. Waxie Sanitary Supply
Bronze Sponsors Biagini Waste-Always Green Cassidy Turley Deutsche Asset & Wealth Management Equity Office Georgia-Pacific, LLC Hathaway Dinwiddie Construction Co. Hudson Pacific Properties Impark Marble West McMillan Electric Co. RiverRock Real Estate Group Securitas Security Services USA Shorenstein Realty Services, L.P. The Swig Company, LLC Township Building Services, Inc.
Friends of BOMA American Asphalt Boston Properties Capital Building Maintenance CBF Electric &Tel/Data Cole Supply CTC-California Technical Contracting, Inc. Cushman & Wakefield of CA GCI General Contractors LAZ Parking R.N. Field Construction, Inc. Rossi Builders, Inc. The Lawson Roofing Co. Inc. ThyssenKrupp Elevator Corporation Transwestern Wilson Meany Young Communications
(Continued on page 14) *For sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com
4 Allegion Debuts AX Device Von Duprin AX: The first UL certified exit device to meet the new California Building Code Operating Force requirement hrough innovative engineering and testing, Allegion’s premier exit device brand, Von Duprin, has developed a new Accessible (AX) option that is UL certified to meet the recently introduced 5 pound maximum operating force requirements according to California Building Code section 11B-309.4. The 2013 California Building Code contains a change to section 11B that specifically impacts door hardware. This change, set forth by the Division of State Architects, aims to increase building accessibility by limiting the force required to activate operable parts. The Von Duprin AX exit device meets new codes. If you refer to Section 11B-404.27 it reads: “Handles, pulls, latches, locks, and other operable parts on doors and gates shall comply with Section 11B-309.4.” Section 11B-309.4 reads: “Operable parts shall be operable with one hand and shall not require tight grasping, pinching, or twisting of the wrist. The force required to activate operable parts shall be 5 pounds (22.2N) maximum.”
Code Change Impacts Exit Devices This change uniquely impacts exit devices. Previously, the maximum operating force for exit devices was 15 pounds. In order to comply with the changes in California’s Building Code, Von Duprin had to engineer a solution that would provide the desired level of accessibility without compromising quality, security, or safety. Through engineering and testing, Von Duprin has developed a new Accessible (AX) option that is UL certified to meet the maximum 5-pound operating force requirements according to California Building Code section 11B-309.4. UL Certification was achieved through testing the force required to operate the AX product in three different locations on the push pad. The testing was done both before and after 100,000 cycles to ensure the AX product repeatedly met the less than 5-pound requirements. This certification allows Von Duprin to specifically state on the UL label that the product “Meets California Building Code (2013) Sec. 11B-309.4.” In addition to the UL testing, the AX devices were held to the same ANSI/BHMA standards, security testing, and impact tests that every Von Duprin device is subject to. This AX option is available for the Von Duprin 98/99, 22, and 33A/35A series in a variety of device types and functions.
To learn more about the change to California’s Building Code and Von Duprin’s AX devices please contact your local Allegion representative, visit ax.allegion.com or call 1-888-925-4359.
6 Principal Member Profile
Preston Richards, RPA, FMA, LEED GA Property Manager, Cushman & Wakefield
Property Manager Preston Richards oversees many sustainable innovations and introduces features that cater to tech-savvy tenants in the two SOMA buildings he manages. “I notice that tech tenants gravitate toward an environmentally sustainable way of life,” says Richards. “As part of the best building challenge, we are striving to reduce our waste, water, and power usage by 20 percent in 2014. 650 Townsend achieved LEED EBOM Gold certification in 2013. We installed a water-cooled magnetic centrifugal pony chiller in 2014 while phasing in direct digital control building automation system upgrades. 2 Bryant Street is undergoing a LEED CI Platinum build-out with plans to incorporate a rooftop photovoltaic system.” He observes that tenant build-outs are unique and promote a collaborative work environment. Some of the buildings’ new amenities include indoor wall-mounted bicycle parking, electric car charging stations, video games, and provisions for tenants to bring their dogs to work. “However, aside from a more business-casual attire, I’ve experienced more similarities than differences between tech tenants and more traditional businesses,” he adds. Richards has been active in BOMA San Francisco since his days with the Young Professionals, and now chairs the Codes Committee. “The experience and expertise I gain at each Richards enjoys sports, and every meeting is undeniable. It’s my way to stay informed and assist BOMA in taking a especially snowboarding. stance.” His advice to young professionals? “Take advantage of all the educational offerings BOMA has to offer, network, earn your stripes, and have fun doing it.” During his leisure time, Richards enjoys wakeboarding, snowboarding and dirt biking.
Associate Member Profile
Stefanie Medious Regional Sales Manager, Recology
As the Regional Sales Manager for Recology, San Francisco’s recycling company, Stefanie Medious helps implement the Zero Waste Program, which aims to recycle and compost most discards and send almost nothing to landfill. “Recology provides direct assistance in helping BOMA members implement their recycling programs. We help property managers determine their options and get the tools they need to set up zero waste programs,” says Medious. “Our team offers free recycling audits and has helped numerous BOMA members significantly improve their recycling rates.” During her eight years as a BOMA member, she notices that the perception of “green” has evolved in the commercial real estate community. “Commercial property managers in San Francisco really embrace recycling. Property managers Medious enjoys traveling and attending are more environmentally conscious, and they are now recycling most of their events with her husband, Will. waste. One of the best examples of progress is the compost collection program. In 2006, there were still a lot of compostable materials in the garbage at skyscrapers. Now all properties participate in the compost program.” Recology has been a strong ally of BOMA San Francisco, supporting all BOMA functions and participating on multiple committees. “We also help coordinate award programs that recognize BOMA members for implementing environmental initiatives including improved recycling and compost programs,” says Medious. As chair of the BOMA San Francisco Member Services Committee, she works closely with new members: “I enjoy networking and helping people learn about and connect with services and programs that help meet their business needs.” What does she do during her downtime? “I love to travel with my husband, Will, and take long walks. And I also enjoy cooking and hosting dinner parties and chilling out with our two dogs Cookie and Bella.”
7 Members on the Move Kilroy Realty’s Brooke Barnecut has been promoted to Property Manager of 201 Third Street. She joined Kilroy Realty Corporation in 2011 as a Property Coordinator and was promoted to Assistant Property Manager in 2012. In that role she assisted with transitioning the property from a Class B office building to a Class A office building. Brooke serves on BOMA’s Young Professionals Steering Committee. Jose Guevara joined American Assets Trust as a Senior Property Manager, assuming responsibility for the historic Landmark @ One Market building, which will celebrate its 100th anniversary in 2017. He was formerly Property Manager at Cushman & Wakefield’s Post Montgomery Center. Dennis Rosario has joined The Swig Company as Vice President, Asset Management assuming responsibility for asset management, property operations, acquisition due diligence and transitions. Dennis was formerly a Director of Asset Services in Northern California with CBRE. Michael Shum recently joined Jones Lang LaSalle as Property Manager for Post Montgomery Center. Previously he was part of the property management team at One Market Plaza. Michael is active with BOMA’s Careers in Real Estate Committee and currently serves as the committee’s Vice Chair. Dale Tate joined Jones Lang LaSalle as General Manager, assuming responsibility for Pacific Place at 22 Fourth Street (Fourth and Market). Dale was formerly General Manager at the San Rafael Corporate Center for Seagate Properties. He is responsible for the operations of the 16-story, 435,000 square foot mixed-use property, which contains the Palomar Hotel, flagship stores for Old Navy, Levi’s and the Container Store, as well as 200,000 square feet of office space and a large public parking garage.
Send your personnel changes for Members on the Move to Tory Brubaker at toryb@BOMA.com.
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8 7 Reasons Why It’s Lucky To Use Union Carpenters 1 Training. Union carpenters receive four years of classroom and on-the-job training in the latest
technologies and work methods ― from apprenticeships through advanced skills training. And they work systematically with other highly skilled professionals.
2 Quality. Union carpenters’ quality education ensures
that they perform eﬃciently and understand how to complete projects as designed...and on time. Hiring trained carpenters is a wise investment that results in cost savings on your projects.
Union carpenters help contractors meet on-time schedules because they use state-of-the-art techniques and have the experience needed to be true partners in achieving project satisfaction.
Union carpenters are trained to work safely, reducing accidents that can cause injuries or death, create delays, cause property damage and increase insurance costs.
5 Eﬃciency. Union carpenters can save
money and time for contractors when they are properly trained to complete jobs without time-consuming supervision or costly remedial activity.
Sustainability. Union carpenters are trained to practice sustainability. Because they perform eﬃciently, they generate less waste on the job.
7 Values. Union carpenters have great community values. They are committed to
supporting the construction of necessary infrastructure, aﬀordable housing and transportation that keeps local economies prosperous and adds value to people’s lives.
Are union carpenters working in your building or on your projects? In addition to work normally associated with carpentry, carpenters perform many tasks such as drywall installation, lathing, millwright, pile driving, hardwood floor and furniture installation, trim, door and hardware installation, garage and overhead door work, panel installation, signage and wall hangings and the installation of window treatments. To learn more about union carpenters, call 510.568.4788 or visit www.NCCRC.org
BOMAYP Annual Leadership Roundtable: “Cultivating Creativity” BOMA San Francisco’s Young Professionals Steering Committee invites members with 0-7 years of commercial real estate industry experience. Tuesday, September 16 • 4:00 –7:00 PM The City Club of San Francisco • The Grand Salon, 9th Floor 155 Sansome Street, San Francisco
For more information, visit www.bomasf.org (calendar page)
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To partner with us, contact our local Energy Center at 415.644.9666.
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11 Title 24: Higher Costs, Headaches…and Opportunities buildings smarter, healthier, and provide greater long-term In its efforts to keep members up to date with value to owners and tenants alike.” changes in laws and regulations, BOMA San Francisco has sponsored several educational sessions about the Lyn Gomes, P.E., LEED AP, commissioning agent, impact of California kW Engineering: “Acceptance Title 24. Here are testing may be implemented some comments unevenly by building departfrom programs ments. Choosing not to perform and interviews: acceptance testing puts the owner and general contractor Ken Cleaveland, at risk of delays at a move-in, Vice President, Public a critical time. When performed Policy, BOMA San correctly, acceptance testing can Francisco: “Title 24 pay for itself in as little as two energy efficiency code years.” changes will dramatically increase potential costs to all tenants For more information on and owners who build the impact of Title 24, or renovate commervisit www.bomasf.org cial properties and interior tenant spaces. State regulations now in effect with Title 24 are dramatically Of course, the intent is changing codes that affect buildings operations. to reduce energy consumption, which should theoretically reduce your energy bills but that remains to be seen. California is again leading the nation in cutting consumption of energy through new regulations and …mandates.” Kimberly A. Huangfu, attorney, BuchalterNemer: “As California strives to achieve net-zero energy consumption, these energy efficiency driven regulations will continue to ramp up with subsequent updates to the latest round of Title 24 updates. In consideration of potentially significant Title 24 compliance costs, these non-voluntary regulations should prompt commercial building owners, brokers, property managers, and tenants alike to take a deeper look at how to effectively negotiate and allocate compliance costs in purchase and sale agreements, letters SFECA electrical contractors continually of intent, and leases.” raise the standards of craftsmanship, safety, Jé Kepler-Korn, Senior Account Executive–San productivity, innovation and value. Francisco Commercial Properties, Energy Management Energy Efficiency Property Maintenance and Service | SIEMENS Industry, Inc: “New Title 24 State-of-the-Art Installations Energy Storage requirements will change the way we deliver our improve Project Design Renewable Energy ments, run our buildings, and the way tenants interact with their environment. With communication, education, and well thought out standards Title 24 will make our
12 Zero Net Energy (Continued from page 1)
Macko, noting the challenges faced by taller buildings, easily than skyscrapers. Lower-rise buildings can produce said the largest ZNE building so far is six stories high. much more energy with solar arrays than high-rise Macko and others listed buildings which have much less numerous strategies than roof space and many more floors Features the panel said can reduce buildings can use to move operate. toward ZNE. Turnbull, for Van der Linden said, “Today a building’s energy use: buildinstance, said, “We know you people hold property longer, so can have great lighting that ing dashboards showing energy the payback is better than selling people like at 75% less ener(buildings) after three years.” consumption, operable windows, gy.” About 25% of a buildTurnbull said “Occupants “vampire switch” (powering down ing’s energy is devoted to prefer ZNE spaces. People really lighting, so significant savings like high-performing buildings.” facility), BMS controls, daylight can be achieved by daylightDPR has been a leader in the ing and other methods. drive toward ZNE in 2030. Its controls, LED lighting, electroFeatures the panel said own offices have become showchromic glass and solar chimneys. can reduce a building’s enercases for sustainability, with solar gy use: building dashboards roofs, ceiling fans and daylighting showing energy consumption, designs that illuminate workoperable windows, “vampire switch” (powering down spaces with natural sunlight through windows. facility), BMS controls, daylight controls, LED lighting, “Our Big Ass Fans on one floor use less energy than electrochromic glass and solar chimneys. our ice machines,” said van der Linden. (The full slide show is available at www.bomasf.org)
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13 Why You Should Try For A TOBY There are at least three big reasons why you should enter your building in The Outstanding Building of the Year contest. 1) If your building wins a TOBY, it could get recognition as an “outstanding” building for tenants — on the local, regional or even national level. 2) The whole building team involved with helping your building win a TOBY will achieve career recognition that will personally benefit each person involved. 3) Even if you don’t win anything, the entry process alone will improve the way you run your building— and that will yield downstream economic rewards. In fact, there is no downside to entering the TOBY— unless you don’t enter. Then you wouldn’t achieve any of the benefits described above. The Bay Area TOBY Awards bring together members of BOMA San Francisco and BOMA Oakland/ East Bay to celebrate our great properties here in Northern California. Karen Cowan, Chair –Awards Committee, BOMA Oakland/East Bay, says, “Winning TOBY is the pinnacle of achievement in commercial real estate. It exemplifies strong management team collaboration, a sound sense of community, a vital commitment to sustainability and educational development of building management personnel which ultimately creates greater value of the asset.” Marc Intermaggio, Executive Vice President, BOMA San Francisco, adds, “The TOBY recognizes excellence in building management, so it isn’t a beauty contest! Winning a TOBY is a great testament to the
The Last Word
management team and a great marketing tool for prospective tenants.” The Outstanding Building of the Year (TOBY) Awards are the most prestigious and comprehensive programs of their kind in the commercial real estate industry, recognizing quality in buildings and rewarding excellence in building management. The Bay Area TOBYs Gala is Feb. 12, 2015. After a win at the local level, buildings move on to the Pacific Southwest Region to compete against other buildings for the coveted honor of moving on to International. There are 15 categories, so every building has a place to compete. Please visit www.bomaoeb.org/bayareatoby for more information.
TOBY Workshop • September 4 Lean about the TOBY contest and the ways your property can win at this soup-to-nuts workshop. Presenters will answer your questions so that you have a chance to win at the local level. 9:30 – 11 a.m. The Landmark @ One Market One Market Street, San Francisco RSVP: 415.362.2662 x110 or email@example.com
(Continued from back page)
The above quantification of economic activity, property and transfer taxes that office buildings generate for local municipalities is not exhaustive. If you’re building in San Francisco, you’ll pay a Transit Impact Development Fee of $13.30 psf; a Jobs Housing Linkage Fee of $24.03 psf; a Public Art fee of at least 1% of your construction cost; and an Open Space fee that has created a total of 82 privately owned public open spaces—known in Planning Department parlance as POPOS. Peter Linneman of Linneman Associates once stated that “Commercial real estate exists to service the economy and society. That’s all we do.” Perhaps if legislators, regulators, planning officials and community activists better understood this principle, more rational policies would be put into place to facilitate commercial building, and our communities would benefit even more. Marc Intermaggio, CAE, is the Executive Vice President of BOMA San Francisco.
14 Reach Your Targets with BOMA Views BOMA Views offers a unique opportunity for you to reach decision-makers who buy or influence purchases of products and services like yours. There are two ways you can tell your story to this targeted audience. A display ad showcases the benefits of your products or services. In addition, you may demonstrate the value you deliver through a sponsored report. Presented in an article format, these are very persuasive. And you can use them in your own marketing and promotion—both print and online. Telling prospects how your company’s services or products benefit them—using statistics, photos, graphics, charts and testimonials—is the most effective way to increase sales. BOMA Views is mailed to BOMA members and distributed at events. In addition, the digital version is emailed and hosted on the BOMA website. As you plan your marketing for 2015, consider advertising in BOMA Views. To learn more, contact Ellen Eason at 415.596.9466 or firstname.lastname@example.org
Upcoming Events Don’t miss these BOMA events. Visit www.bomasf.org and click on the Calendar tab for the complete calendar.
Membership Luncheons Sept. 18
Oct. 23* Nov. 20
* Annual Meeting/ Member Awards Luncheon
General Membership Networking Events Sept. 22 – 60th Annual Elmer Johnson Golf Tournament Nov. 6 – un-Oktoberfest Dec. 4 – Annual Holiday Party
Young Professionals Networking Events Oct. 9 – Annual Boat Cruise
(Continued from page 2)
This year, the BOMA International political action committee recognized BOMA SF as a top contributor. (Thanks to way too many members to mention, but shout-outs are in order for Ken Cleaveland and John Bozeman for great staff service.) Congratulations to everyone who supported us! And remember, without PAC contributions, our impact is limited. Other things to know about attending the conference next year is that you can earn continuing education credits for your RPA and LEED AP. There are also lots of
About BOMA VIEWS Views is published quarterly by BOMA San Francisco. Associate Publisher: Tory Brubaker Editor: Henry Eason Ad and Art Director: Ellen Eason Eason Communications LLC
To advertise, contact: Ellen Eason at 415.596.9466 or email@example.com
opportunities to meet your colleagues from out of state and learn how others handle common challenges. Since next year’s conference is in L.A and budget season is just starting, I think Ken Cleaveland, BOMA SF Vice President, with BOMA SF President Sarah MacIntyre that we can all at the conference. agree that you can’t miss this one. Did I mention that I won $1,000 on the convention hall this year? Maybe you should go for a run and have an “ah ha” moment between classes, committee meetings and conference hall events. See you in L.A.!
15 BOMA’s Workforce Development Initiative Is Producing Impressive Results: Program with SFSU Benefits Students, Employers Delivering on a promise made at BOMA’s Centennial event in 2011, the Association launched an exciting new program by the fall of 2012 to attract and train new commercial real estate industry employees. Designed to provide career opportunities to young people while ensuring industry sustainability as our “boomer” workforce retires, BOMA teamed up with San Francisco State University to produce new curricula that is preparing students for their first jobs within our industry’s many
disciplines. If your company has ever been challenged with finding and keeping top-quality talent, this program merits your support! BOMA’s program enables students to achieve a B.S. in Business Administration with a Concentration in Finance and a Certificate in Commercial Real Estate. To date, 21 students have earned the Certificate, with another 45 students completing at least half of the required classes by the end of spring semester. All Certificate classes are at capacity each semester, with 40 students enrolled in each relevant class and a waitlist for each. Interest is growing, with more students expressing interest in the Commercial Real Estate Certificate program each semester.
Interns Provide Value to Employers A dozen students participated in BOMA’s first summer internship series, with member companies already hiring six students out of the program! “It was easy to access the pool of qualified candidates, and SFSU went out of their way to find someone that was a good fit for us” said
Jeff Eichenfield with The Presidio Trust. “It was a very simple process to initiate, interview, and make a selection; both candidates were engaged and eager to learn,” said John Updike, director of real estate for The City and County of San Francisco. Student interns uniformly expressed appreciation for the “real life” industry experience away from the classroom. Said one: “The learning experience has been phenomenal. They have thrown a lot at me but I enjoy the challenge and appreciate their trust in my skills. I help out with all activities related to our property management department such as lease abstraction. I am also meeting with vendors and gathering bids for projects. I find myself doing a little bit of everything—whatever my team needs, which I truly enjoy. I look forward to when my schooling is done so I can really dig in and continue to expand on everything related to property management.”
Please Get Involved If yours is not one of the dozen companies that availed itself of our intern program this summer, please consider giving it a try. It’s a proven pipeline for new employees. Furthermore, while you’re drafting your 2015 budget or planning your own year-end 2014 charitable giving, please consider making a meaningful tax deductible donation to the BOMA San Francisco Foundation. We’re a registered 501-c-3 charitable institution (Tax Identification #80-0757877). We fund professors teaching our Certificate classes, a career advisor for students enrolled in our program, and student scholarships. Invest in our future success! Photo at left: Kilroy Team with intern Marina Ayad (at right). Photo at right: Blake Peterson and intern Rochelle Viencio. Cover photo: intern Nhu Tran with John Updike, City and County of San Francisco.
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The Last Word: Marc Intermaggio
Commercial Property Development Strengthens Our Communities The numbers are impressive! Commercial office buildings in our region comprise more than 238 million square feet of rentable space. Consider the number of jobs housed and the volume of economic activity generated within that space. Our industry is a very significant contributor to the area’s economic engine. In 2013, the office building industry generated $5.3 billion within San Mateo, San Francisco, Marin, Sonoma, Napa, Alameda, Contra Costa and Santa Clara counties. That’s the total annual expenditure for S.F. Bay regional office building operations. We’re also supporting more than 40,000 jobs. This is reflective of the indirect employment impact of total office building operating expenditures. Jobs supported by these expenditures for building operations include those in businesses benefiting from payroll spending which tend to be local and focus on consumer goods and services, as well as jobs involved in producing and transporting materials used to clean and repair office buildings. These jobs generated are in addition to the direct, on-site employment that operates and services office buildings. And what do we spend to maintain our office properties? Nearly $2 ½ billion—annually. These operating expenditures produce new personal earnings (wages and salaries) for workers of more than $1.7 billion according to 2013 data. Talk about cash flow!
The data come from BOMA International’s recently updated report, “Where America Goes to Work: The Contribution of Office Building Operations to the Economy.” Stephen S. Fuller, PhD, Dwight Schar Faculty Chair, Professor, and Director, George Mason University Center for Regional Analysis, performed the research. In San Francisco alone, secured commercial parcels account for an assessed value of $46.3 billion. More than half of that value, $25 billion, comes from office buildings. In FY 2013-14, local property taxes paid by the commercial office sector will amount to $1.17 billion.
Bay Area Office Building Industry... Comprises >$238 million s.f. rentable space Generates $5.3 billion in buildings operations Produces >$1.7 billion in wages Supports >40,000 jobs
Now, add in revenues generated for a municipality when a property sells. In San Francisco alone, property transfer taxes will generate $225 million in FY 2013-14. Since FY 1999-2000, property sales have generated more than $1.3 billion in revenue for the City! (Continued on page 13)
News from BOMA San Francisco