Page 1

Q3 2018

BOMA Conference: Sharing Ideas Helps Members and Local BOMAs Prosper The BOMA International (2) Connect. The committee offered Conference is the go-to event for resources for students to connect BOMA members to exchange with professionals, providing building ideas on best practices for building tours, workshops, informational management, interviews and view exhibitors’ job shadowing. latest products (3) Achieve. at the Expo, and “The committee learn about how does a mentorship to create effecmatch-up where tive programs each student and for their local mentor are handBOMAs. picked to be part BOMA San of a 12-week Francisco memprogram,” DuBee bers were at the said. forefront at the It was a conference in San standing-roomAntonio in June. only crowd for In the session “Recruiting the “Mentorship: Next Generation Attracting the of Building Next Generation Engineers,” a Anne Hill, Bently Holdings; Daisy Delmar, of Talent,” panel moderated Boston Properties; Lee Miller, Cushman & Wakefield; and Nicole DuBee, Columbia Nicole DuBee, by Able Services Property Trust; at the BOMA Conference. property managPresident Mark er at Columbia Kelly. The panel Property Trust; Anne Hill, real estate included Gabriel Eckert, executive portfolio manager at Bently Holdings; director of BOMA Georgia; Lubie and Lee Miller, senior property Martin, regional director of operamanager at Cushman & Wakefield; tions at Columbia Property Trust; gave BOMA colleagues an overview and Dawn R. Short, senior HR of BOMA San Francisco’s Careers business partner at Able Services. Committee’s successful strategies for Kelly noted that commercial and attracting the next generation of corporate real estate professionals property managers. need to focus on how we are going to The committee focuses on three recruit. Some strategies: “Brand your strategies: 1) Explore. The group company as a great place to work,” teamed up with SF State to work he added. “Your brand will attract the with business students and created a next generation. Make your company relationship with the career advisor. more of a family, more of a home.” (Continued on page 8)

What’s Inside Views... n n n n

Conference Impressions • Page 2 Meet BOMA Members • Pages 4 & 5 SF Election Results & CRE • Page 9 Members on the Move • Page 11 Left: Scene from the YP Summer Solstice Mixer. See more photos on page 15.


2 Thanks to Our 2018 Corporate Sponsors*

BOMA International Convention in San Antonio, Debunked

Platinum Sponsor

Able Services Gold Sponsors

By Marc Gille BOMA San Francisco President In June, BOMA International held its annual convention in San Antonio, Texas. First, I want to point out how extremely lucky we are to live in a temperate climate. Between the temperature and humidity in San Antonio, I needed to change shirts walking from the convention center to the hotel. Second, I am still not sure what an “Extreme Heat Index” is, and how it differed from it being just plain old HOT! When I tell colleagues that I am going to the convention, usually the comment is: “How can you spend that much time talking about floor measurements?” While learning from the many programs and services that BOMA International offers is a never-ending mission, in this particular case, I let them know that while there will indeed be education on the new floor measurement standard, the International Convention provides much more. Prior to the actual convention commencing, there are two days of meetings with the various national committees and roundtables. This gives all local BOMAs the opportunity to share ideas on topical educational offerings, discuss local legislative and regulatory challenges, present best local BOMA operational practices, as well as learn about topics that might be occurring on the Federal level. For example, in the Government Affairs Committee, John Bozeman provided an informative recap of the recent Prop. C/D campaign to the horror of the other local BOMAs. One other piece of business that occurs during this part of the convention is that we elect new executive committee members, new officers and other national representatives. San Francisco BOMA had the great privilege of seeing three BOMA San Francisco members confirmed to national positions: Sarah MacIntyre (Wilson Meany) was re-elected to represent the Pacific Southwest Region on the BOMA International Nominating Committee; Scott Jones (Jacobs Engineering) was elected Chair-Elect of BOMA International; and Mark Kelly (Able Services) was elected to fill the Associate Member seat on the BOMA International Executive Committee. Congratulations to Sarah, Scott and Mark. (Continued on page 10)

ABM CenturyLink NRG Energy Center San Francisco Pacific Gas & Electric Paramount Group, Inc. ProGuard Security Services, Inc. ProTech Security Services, Inc. Recology Golden Gate San Francisco Electrical Contractors Assn., Inc.

Silver Sponsors Allied Universal CBRE Columbia Property Trust Comcast Business GSH Group Hines Hudson Pacific Properties Kastle Systems McMillan Electric Metro Electric Service by Medallion SP+ Unique Elevator Interiors, Inc.

Bronze Sponsors Boston Properties CBF Electric & Data. Cushman & Wakefield GPPro Hathaway Dinwiddie Construction Impark JLL Kilroy Realty Corporation LAZ Parking Perfection Services Inc. RiverRock Real Estate Group Securitas Security Services USA, Inc. Shorenstein Realty Services The Swig Company

Friends of BOMA Alliance Roofing Company Inc. CB2 Builders Incorporated eWaste Direct Field Construction McNevin – Bay Area Cleaning Specialists Rossi Builders, Inc. Swinerton The Lawson Roofing Co. Inc. Township Building Services, Inc. Wilson Meany Young Electric + Communications

Media Sponsors California Buildings News San Francisco Business Times The Registry *For sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com


3

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4 Principal Member Profile

Shayna Eskew, Senior Real Estate Manager CBRE | Asset Services

CBRE Senior Real Estate Manager Shayna Eskew oversees a diverse portfolio of assets for different clients in various submarkets of San Francisco, including the Financial District, SOMA, Jackson Square and the Mid-Market area. “Interacting with clients, tenants and vendors and having a real impact on asset values for our owners is satisfying. When I get the opportunity to completely reposition and transform an asset, whether through leasing or capital projects, it feels like a great accomplishment,” Eskew says. “My portfolio has expanded and contracted over the years given the intense leasing and sales activity that has taken place in the Bay Area in the last decade.” What was her CRE career path? “I grew up in Southern California and went to USC. One day I decided to pack up and drive north in my old convertible with $100 cash and a gas credit card. I immediately found a job working for a developer and ended up managing all of their assets very soon thereafter. Since then, I’ve been fortunate to work on many Eskew enjoys surfing and different property types including office, medical office, retail, industrial, and adaptive reuse other sports. for companies like Catellus Development, Jones Lang LaSalle, Equity Office and now CBRE. All of those assignments have included a ton of leasing and project management.” Eskew has served on the Historic Buildings, Energy and Environment, and Emergency Preparedness committees at BOMA San Francisco. “Last year, I was asked to serve as the Vice Chair of the Government Affairs Policy Advisory Committee and I love it! I’ve thoroughly enjoyed watching ‘how the sausage is made’ and like to think I have some small role in impacting policy along the way.” The Marin resident is “fortunate to be steps away from so many amazing hiking trails. I take advantage of the trails for running and biking on a regular basis. But my first love is sailing on the San Francisco Bay. I owned a sailboat for many years, but these days I just hitch a ride with others whenever I have the opportunity.”

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Jamie Gentner, Chief Operating Officer Center Hardware & Supply Co., Inc.

A fourth-generation San Francisco family business, Center Hardware has served discerning customers since 1880 for needs large and small. Its motto: “Whether you need a single light bulb, or bulbs for the entire Bay Bridge, we have your back. Call us.” Chief Operating Officer Jamie Gentner started working at the store with her dad when she was in middle school and returned to the family business after earning a journalism degree from the University of Nevada. Her team focuses on building relationships with chief engineers and facility managers and offering concierge-level service. “We give any chief our cell numbers, and they can call us at 2 a.m.,” she says. “When customers move to new properties, we move along with them.” Center Hardware’s bright store in the bustling Dogpatch neighborhood has an in-stock inventory of more than 90,000 products, including the high-performance Festool line, as well as Milwaukee Tools’ largest selection in San Francisco. The store is the City’s exclusive dealer for STIHL. “The store is B2B full-service including an experienced special orders Gentner in the store’s aisles. department, so it’s an efficient way for all properties to shop in one place for everything from tools to safety gear, hardware, fasteners and paint,” Gentner explains. The store carries contractor-grade Valspar paint and keeps buildings’ paint profiles on file for easy reordering and an exact match. Gentner says she listened to BOMA members’ desire for printed catalogs, and Center Hardware just issued four extensive catalogs (Maintenance Repair & Operations, Building Materials, Commercial Supply, and Tools and Equipment). They will also be available online. Delivery service extends throughout the City, to the East Bay and as far south as San Jose. At BOMA, Gentner is active on the Emergency Preparedness Committee and enthusiastically supports the CREATE program. Center Hardware also supports training for the building trades. In her leisure time, Gentner enjoys visiting cities with architectural significance and antiquing for early American glass, estate jewelry and American oak furniture.


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ood floors and decks are desirable design features in a commercial building, adding warmth and character to a space. However, they require maintenance to keep looking good. “Some may only require a simple cleaning and polishing, while others might need a customized restoration solution,” says Baker’s Floor and Surface President Chris Baker. “We have the resources and experience to provide everything from simple to complex restoration services for wood floors inside and out.” In addition to needing to have the floors in a San Francisco office building sanded and cleaned, a customer wanted to change the color of the wood. This is a case in which expertise is needed. If done correctly, the results can be stunning — and also economical. Baker explains: “Staining and sealing existing wood floors is much more cost-effective than replacing the floors.” The Baker team consulted with the customer to determine the desired look. “The final product was exactly what the customer requested and took only about two days to complete,” Baker said. Yet another customer hired Baker to refurbish its exterior deck in order to enhance the color and protect it from the elements. The end result was an inviting space for tenants to use during lunch, breaks or outdoor meetings. Businesses throughout the Bay Area turn to Baker’s for wood refinishing projects, as well as maintaining and enhancing metal, epoxy, concrete and EPOXY ~ CONCRETE ~ METAL ~ STONE ~ WOOD stone surfaces. Have an upcoming project? We’d be happy to visit your property to discuss solutions. 650.652.9440 u chris@bakersfloorandsurface.com Top photo: floor after cleaning, staining & sealing. Lower photo: before treatment.

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BOMA Conference (Continued from front page)

Being present shows that you care! Be Also, encourage your staff to tap into aware of your employees and take the their networks and reward them. Create time to understand them as individuals. competitive compensation packages. (2) I’m all ears represents listening and Eckart stressed the importance of communications. During meetings, sit succession planning to reduce risk associback and relax... it’s okay to put devices ated with a loss of experienced professionaway for 20 minutes. We listen with our als to run complex buildings with complex eyes, not only our ears. Showing empathy systems. It is estimated by some BOMA and caring can make someone feel really sources that 55% of building engineers important and acknowledged. will retire within the next 10 years. (3) The “Magic Touch” represents “Talkin’ Bout My Generation!” gratitude and appreciation. Show your was the subject of a lively presentation employees that you care. Hand-written by Peter Merrett, international speaker Peter Merrett & Samantha Hoyle. cards show appreciation. Welcome new from The House of Wonderful, and BOMA employees in the lobby on their first day or leave SF member Samantha Hoyle, assistant property something fun on their desks. manager at Columbia Property Trust. The session “I appreciate that my boss is also my mentor who focused on the modern workplace’s multiple generations, includes me on leasing and construction-related discuswith dynamics that are vibrantly different. The team sions. The exposure is amazing,” Hoyle said. “Personal noted many trends that transcend all generations. touches like a one-year anniversary certificate and Merrett and Hoyle shared their three “Golden Starbucks gift cards on birthdays make a difference.” Keys:” (1) Eye-to-eye represents sight and presence.


9 June SF Election Recap by John Bozeman

The June election in San Francisco was contentious and complicated by the unexpected passing of Mayor Ed Lee six months prior to the election. The special election for Mayor, two massive tax measures on the ballot targeting our industry, and a decisive supervisorial race in District 8 made things interesting! Thanks to the leadership of BOMA San Francisco’s Political Action Committee (BOMA–SF–PAC), your concerns were well represented during what can only be described as a chaotic period in San Francisco.

The money will be mostly used for child care and early childhood development in the City. BOMA is not against funding programs that are important to the City and County of San Francisco. We are opposed to tax measures that target one industry— especially ours— and which do not consider the long-term economic realities that prudent municipal financial planning requires. Taxes should be sustainable, broad based, and have the approval of the affected parties that will pay the bill. The District 8 Supervisorial race was in the shadow of the tax measures and certainly the Mayor’s race, but was, nonetheless, important. BOMA–SF–PAC supported the appointed incumbent, Jeff Sheehy, a political neophyte, who was up against a well-seasoned candidate, Rafael Mandelman, who was victorious. Supervisor Mandelman is no stranger to BOMA San Francisco and our members have already reached out to his office for an introductory meeting in his new role as the District 8 representative.

What’s Next? What’s on the horizon for commercial real estate and business interests in the November election?

Our industry supported then candidate Stay tuned as BOMA staff and the BOMA– and now Mayor London Breed in an SF–PAC evaluate candidates’ positions and intense contest with Supervisor Jane Kim measures that affect your properties and and former California State Senator Mark tenants. Leno. We are pleased that Mayor Breed These resources from BOMA will keep Mayor London Breed. won her race. Breed is a San Francisco you updated as the fall election goes native and has been on the Board of into full swing — the weekly BOMA Supervisors—most recently as Acting Mayor California reports about developments in Sacramento and Board of Supervisors President—since 2012. and beyond, which is emailed to BOMA SF members, as well as the monthly BOMA Advocate. Props: One Defeated, One Passed BOMA San Francisco led a campaign to defeat Propositions C and D, both measures that targeted our industry with massive new gross receipts taxes. Proposition D was soundly defeated. Additional funding would have gone to affordable housing. While Proposition D lost, unfortunately, the largest tax in San Francisco history, Proposition C, passed by a slim margin (approximately 4,100 votes). Proposition C had a lower threshold for passage (50% +1) than Proposition D (67%). Proposition C adds another 3.5% tax on commercial rents, on top of the .03% gross receipts tax paid now.

Here’s how you can lend your voice and support: w Make a donation to the BOMA–SF–PAC. Learn more at

https://www.bomasf.org/boma-sf-pac w Learn about the activities of the BOMA SF Government

Affairs Policy Advisory Committee (GAPAC). Contact Chair Marty Smith at msmith@alhousedeaton.com if you’d like to attend a committee meeting. John Bozeman is BOMA San Francisc0’s Director, Government and Industry Affairs. He may be reached at johnb@boma.com


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1

President’s Column (Continued from page 2)

Once the convention commences, a wide variety of educational sessions are offered. Depending on your interest, you can choose among nearly 100 different sessions. These programs ranged from certificates of insurance to the importance of mentorship to interpreting the new floor measurement standards. It was impressive to see so many BOMA San Francisco members share their experience and knowledge. The speakers/panelists included Deborah Boyer (Swig Co.), George Denise (Oracle), Nicole DuBee (Columbia Property Trust), Thomas Gille (Real Systems), Anne Hill (Bently Holdings), Samantha Hoyle (Columbia Property Trust), Mark Kelly (Able Services), and Lee Miller (Cushman & Wakefield).

The convention is also a great opportunity to meet with other Bay Area members and discuss challenges affecting the industry. This discourse usually occurs after-hours and San Antonio offered numerous venues for this to happen. One of the most memorable was a Bay Area welcome dinner hosted by Howard Fish (Skyline Construction). After a whirlwind of four days, it was time to return to San Francisco to implement what we learned and new ideas to try out. As it turned out — my flight was delayed due to fog — I couldn’t wait!

Gille is President of BOMA San Francisco and Senior Vice President of Rockhill Management.


11 BOMA San Francisco Members on the Move Donna Farrugia has joined Atrium as the Executive Vice President for the west coast. She has worked in the staffing industry for 20 years, spending 12 years with Robert Half as North American Executive Director of one of their divisions. She was also CEO for Nelson, one of the largest privately held staffing firms in Northern California. Prior to running staffing businesses, she spent over 15 years with 3M and Kodak managing sales and operations for several areas of the U.S. Originally from the east coast, she now lives in Sonoma and has lived in California for 30 years.

Brad Lauer has joined Able Services as Vice President of Operations and Process Management for the Northern California Region. Lauer comes to Able from U.S. Security Associates, where he was Vice President of Northwest Operations. He oversaw operations for the greater Northwest territory, including Northern California, Oregon, Washington, Idaho, Montana, Wyoming and Utah. His successful career in operations and process management makes him ideal for the Able team and this role. Active in BOMA and other trade associations, Lauer complements the outreach for which Able is known. He has assisted clients in commercial real estate by delivering value with better organizational processes. Lauer served as a First Sergeant in the U.S. Marine Corps for 22 years and has an MBA from Northern Illinois University.

Your BOMA San Francisco leaders are on the move at the international level... .At the BOMA International Convention in June, Mark Kelly, President of Able Services (shown right), was named to the BOMA International Executive Committee.

Sarah MacIntyre, Director of Asset Management at Wilson Meany (shown left), was re-elected to represent the Pacific Southwest Region on the BOMA International Nominating Committee.

Scott Jones (shown right), was elected Chair-Elect of BOMA International. Jones is Vice President, Jacobs Engineering.

Join us in congratulating these BOMA SF leaders who are representing us at the International level!

Send personnel changes or news for Members on the Move to Tory Brubaker at toryb@BOMA.com.


12 Interns Gain Skills & Mentors A select group of students from SF State’s School in having a more in-depth experience at a location and of Business put their CRE classroom knowledge to having more time in the internship sites to really gain work this summer, interning for BOMA member an understanding of what goes on in a property or companies that particidepartment.” pated in a program called ABM, Able, JLL, CREATExperience. One of Cushman & Wakefield, several offerings provided HFF, Harsch Properties, by Commercial Real Estate Port of SF, Skywalker Alliance for Tomorrow’s Properties, Detection Employees (CREATE), Group, City and County CREATExperience is of San Francisco, and designed to educate and Citiscape PM were among train college students in the companies that hostcommercial real estateed interns. Students in related fields and prepare the CRE and Fellows Interns, hosts, and SF State and CREATE staff at the August wrap-up event. them to enter the local Programs at SF State are workforce upon graduation. given priority for consideration as interns. Most interns “We are happy with the program’s success and the spent three days a week working for the host companies. value it provides to both the students and companies that “The program is open not only to BOMA SF members, participate,” said Michelle Funkhouser, General Property but to our CREATE Alliance members: BOMA OEB, Manager for Hines, who serves on the CREATE committee. IREM and NAIOP. We are hoping to expand it to include “Students were able to connect with diverse profesmore of the alliance members in the coming years,” added sionals and even have a mentor,” said Heidi Yu, Director, Funkhouser. Career Services and Professional Development for the SF For more information on CREATE, send an email to State College of Business. “Students expressed an interest info@createworkforce.org. Last Word (Continued from back page) San Francisco officials should use the normal budget process to set citywide priorities and decide how to pay for them. And while we’re at it, can we get a thorough accounting for how the multitude of taxes and fees paid by business have been deployed over the last decade, and what value was delivered in return? To what degree was the intent of each tax or fee actually met, and, how much was siphoned or squandered? Ultimately, the question is, how efficient is San Francisco with its $11.05 billion city budget? BOMA’s job is to advocate for member interests, which includes fair tax treatment. Through our

About BOMA VIEWS Published quarterly by BOMA SF Associate Publisher: Tory Brubaker Editor: Henry Eason Managing Editor/Ad Director: Ellen Eason Eason Communications LLC Contact Ellen Eason at 415.596.9466 or ellen@easoncom.com

advocacy (and via our classes and other educational programming), we help you to operate efficiently so that you can achieve the ROI your investors want, and so that you can deliver cost-efficient space and service to your tenants. The recent passage of Prop. C just made that a lot more difficult. Our job is not done. We can expect additional, well-meaning but ill-conceived tax measures targeting our industry specifically and business in general. I hope you’ll join with us to communicate with policy makers and voters alike the folly of a one-off taxation approach. City officials seem to think businesses are cows they can milk without consequence, when in fact they are golden geese that can fly away. Marc Intermaggio, CAE, is Executive Vice President of BOMA San Francisco and Executive Director/CEO, of the BOMA San Francisco Foundation whose mission is to recruit and train the industry’s next-generation workforce.


13

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Mark Your Calendar These Upcoming BOMA Events! Sept. 17 64th Annual Elmer Johnson Golf Tournament Wine Tour at 64th Annual Elmer Johnson Golf Tournament Sept. 20 Emergency Preparedness Seminar Oct. 2 Member Benefits Review Oct. 10 BOMA YP Annual Boat Cruise Oct. 24 Annual Meeting & Directors’ Election Nov. 8 Annual Codes Seminar Dec. 5 Holiday Party Visit the Events page at www.bomasf.org for complete listing of events, seminars & committee meetings.


15 Mixing & Mingling Scenes from the YP Summer Solstice Mixer.

Clockwise from above: Michelle Reyes, The CRE Group; and Erik Carlsen, Able Services. Matt Montanez, Katie Fraher, Natasha Pineda, and Michael Stricklan, all with Able Services. Scene from the Summer Solstice Mixer. Thank you to Columbia Property Trust for providing the rooftop venue at 221 Main Street. Lauren Albientz, ThyssenKrupp; Isabella Risucci, Hudson Pacific Properties; and Courtney Cranston, CBRE. Julie Venegas, Cushman & Wakefield; Samantha Hoyle, Columbia Property Trust; Kenzie Kolves, Cushman & Wakefield; and Ana Duffy, Shorenstein Realty Services.


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margin. Rather, the tax proposal, designated as Measure C, received a scant 50.87% vote. Those supporting our campaign to defeat the two commercial rent taxes felt that the way these two measures were placed before the voters was a terrible mistake, deliberately sidestepping the very important duty to fully examine where this city is headed —financially and otherwise. This, by the way, is not solely the duty of elected officials, but indeed, of anyone who cares about San Francisco. Did you know that the Controller’s & Mayor’s recent report on San Francisco’s mounting budget woes Besides harming commercial office tenants, undercutprojects that the City’s deficit will reach approximately ting your ability to deliver the ROI your investors expect, $700 million by FY 2021-22? and devaluing asset values, the Add to this dark picture recently passed commercial rent tax “Instead of targeting one industry or the fact that San Francisco’s known as Prop. C, designed to fund a limited class of business to fund Gross Receipts Tax has not early education and child-care, is a fulfilled the intention of policy terrible way to fund any program. pet projects...San Francisco officials makers to completely replace BOMA fought against this should use the normal budget process the payroll tax, nor has it measure and also opposed the other to set citywide priorities and decide met revenue projections. commercial rent tax known as Prop. These concerns have not D that was designed to provide how to pay for them.” been openly and vigorously additional funding for housing and discussed, and they should be. homeless services. We prevailed When’s the last time we looked at the whole tax in defeating Prop. D, but narrowly lost the battle to kill picture? Rather than imposing special, one-off taxes on Prop. C. If allowed to stand, this initiative will extract one group to fund specific programs, we must examine $146+ million from our industry each and every year! the City’s needs in a more global sense. Elected officials The Howard Jarvis Taxpayers Association (HJTA) should engage all stakeholders in a thoughtful, comprehas filed suit in the Superior Court in San Francisco hensive conversation about the City’s challenges and how challenging this special tax on commercial property to address them. owners, claiming that it’s an illegal, punitive gross receipts Instead of targeting one industry or a limited class levy. Because the tax is expressly for a special purpose, of business to fund pet projects (with added gravy to it required a 2/3 vote of the City’s electorate under both the general fund to be spent in an unspecified manner), Propositions 13 and 218. But it did not pass by that

The Last Word: Marc Intermaggio

Proposition C is BAD Tax Policy and Bad for San Francisco!

(Continued on page 12)

Profile for BOMA San Francisco

Views Q3 2018  

News from the Building Owners and Managers Association (BOMA) San Francisco

Views Q3 2018  

News from the Building Owners and Managers Association (BOMA) San Francisco