Viewsspring2016

CREATE Gala Raises Funds and Awareness for CRE Education is a collaboration of BOMA San Francisco, BOMA Oakland/East Bay, IREM San Francisco Bay Area and NAIOP San Francisco Bay Area Chapter, operating through the BOMA San Francisco Foundation.

Funds raised at the gala support the Commercial Real Estate Certificate Program at San Francisco State University.

The event honored real estate visionary John Kilroy, CEO of Kilroy Realty, whose company is developing and managing innovative properties in the region.

KCBS Morning News Anchor Stan Bunger emceed the event which included a live interview with two graduates of the SF State

Spring 2016

The Bay Area’s commercial real estate associations joined forces to raise funds for educating job-ready graduates at the Second Annual

(See page 12)

CREATE Gala on May 19 at the Bently Reserve in San Francisco.

CREATE­— Commercial Real Estate Alliance for Tomorrow’s Employees­— Above: John Kilroy of Kilroy Realty.

Center: gala event. Right: Jes Pedersen of Webcor Builders, the signature sponsor.

What’s Inside Views... n n n n

Ensuring Success • Page 2 Meet BOMA Members • Pages 4 & 5 Members on the Move • Page 6 Join a BOMA Committee • Page 11

CREATE Awards Gala photo gallery... Page 15

2 Grow or Die: What We Must Do to Ensure Lasting Success...

And How You Can Help With John Combs BOMA San Francisco President These days when one hears the term “sustainability,” one tends to think about the environment… or, when it comes to building operations, the use of environmentally friendly products. But sustainability can be just as easily associated with social systems or models of economic production.

As far as the sustainability of our particular industry goes, BOMA works very hard to support the long-term economic viability of commercial real estate. How? We help our members to limit their liability and manage costs via our legislative and regulatory advocacy.

And, by training our workforce and sharing best-practice knowledge, we help real estate operating companies and their suppliers to run efficiently and cost-effectively.

I’m sure you’re well aware of how we train people who are already in our workforce. BOMA’s many topical seminars, classes, and coursework for the multiple professional designations we confer (Real Property Administrator, Facilities Management Administrator, Systems Maintenance Administrator, and Systems Maintenance Technician), all support the ongoing training needs of commercial real estate employers. Keeping employees sharp ensures a workforce ready and able to tackle everyday and emerging challenges.

But if that’s all we did, eventually, it would not be enough. To ensure continued success (and industry sustainability), we need to bring many more people into our workforce, so we can replace those moving on. Just as the Golden State Warriors are so successful in part because they have a talented bench of “extra” players to fill in, so too must real estate companies and our industry as a whole develop a deeper bench of talent.

Until recently, we hadn’t done enough to strengthen our workforce.

Taking the example of a third-party management company going out to bid on a new project, how many such firms already employ the person(s) they envision staffing the building on which they’re bidding? Most don’t, and if their management bid is successful, they wind up poaching talent from a competitor (or cannibalizing their own operation) to do the job they promised. Enter the workforce expansion initiative begun by the BOMA San Francisco Foundation.

(Continued on page 8)

Thanks to Our 2016 Corporate Sponsors* Platinum Sponsor

Able Services

Gold Sponsors ABM NRG Energy Center San Francisco Pacific Gas and Electric Company ProTech Security Services, Inc. Recology Golden Gate San Francisco Electrical Contractors Assn., Inc. Universal Protection Service Silver Sponsors Alliance Roofing Company, Inc. CBRE Hines Hudson Pacific Properties Kilroy Realty Corporation Marble West Metro Electric.

Paramount Group, Inc. Unique Elevator Interiors, Inc. Vornado Bronze Sponsors AT&T Boston Properties Deutsche Asset & Wealth Management Georgia-Pacific, LLC GSH GROUP Hathaway Dinwiddie Construction Co. Impark JLL McMillan Electric Co. RiverRock Real Estate Group Securitas Security Services USA, Inc. Shorenstein Realty Services, L.P. The Swig Company, LLC Friends of BOMA Bauer’s Intelligent Transportation CB2 Builders Cole Supply Co., Inc. CTC-California Technical Contracting, Inc. Cushman & Wakefield D Zelinsky & Sons, Inc. (an FDT Company) GCI General Contractors Perfection Services R.N. Field Construction, Inc. Rossi Builders, Inc. Swinerton Builders The Lawson Roofing Co. Inc. Transwestern Wilson Meany Young Electric + Communications *For sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com

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4 Principal Member Profile

Tawni Sullivan, RPA Associate Managing Director, CBRE

CBRE Asset Services’ business is to create value for its clients. “My role starts as a leader, creating a culture within our market that fosters collaboration, engaging and inspiring people to do their best work, then making sure they have the tools to do their jobs,” says Associate Managing Director Tawni Sullivan. “Responsibilities to the organization include mitigating risk and ensuring a monetary return.”

A passion for preparing the next generation of leaders motivated Sullivan to get involved in the BOMA San Francisco Foundation Board, which she now chairs. She notes that “in the commercial real estate industry, we all recognize the increasing deficit of experienced talent, combined with the retirement of seasoned professionals.

Given that many tenured people in our industry landed there by chance, it seemed an opportunity to educate college students about the field. Partnering with San Francisco State University provided a path to teach students about the industry and Tawni Sullivan enjoys family to create a certificate program.” time at the beach.

“When I started in property management nearly 25 years ago, the opportunity to learn about commercial real estate careers did not exist. There were no classes or schooling to get you into the field of property management. The accredited program at SF State gives students an automatic connection to jobs in the field,” she adds.

What changes does she see since first entering the profession? “You have to be much more specialized in many aspects of the business. Technology has created wonderful efficiencies in the work, but also has created an expectation of immediacy in response and completion. The work doesn’t shut down, as it used to. Work hasn’t changed as much as how we do the work.”

On her own time, you can find Sullivan at the beach or exploring with her husband and two kids: “We are an outdoor and highly active family. When I need time to myself, I paint or create artwork — which a lot of people don’t know.”

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To partner with us, contact our local Energy Center at 415.644.9666.

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Associate Member Profile Howard Fish, Vice President, Skyline Construction, Inc. Have you enjoyed cheering the Giants at BOMA at the BALLPARK or celebrating at the festive holiday party? These successful events are organized by the BOMA Associates Committee, and associate member Howard Fish has been active on this committee for more than a dozen years and has served as chair.

As an associate member, he advises members to join a committee and “push yourself to contribute in as many ways as possible. The benefits of your time and effort will certainly pay off. Of all the trade associations that I’ve been associated with in my 42-year career, BOMA San Francisco is #1.”

His company, Skyline Construction, “is a one-stop Bay Area solution for BOMA Howard Fish represents Skyline members, with key subcontractor relationships in each market,” says Fish. Skyline at a BOMA golf tournament. has emerged over the last 11 years as an ESOP with revenue over $250 million and new offices popping up throughout the Bay Area including Oakland, Pleasanton, Walnut Creek, Santa Clara and San Francisco. This allows the firm to match skills and pricing in each marketplace.

“Skyline was founded as a landlord building contractor, evolved into tenant work, followed by building infrastructure upgrades, so working with owners is still a core business,” Fish notes. “We strive to be a trusted advisor and builder for BOMA members. While providing competitive pricing is important, building managers and owners hire us to manage the subs and work in their buildings without anyone knowing we are there. We aim to provide a reliable, dust-free, safe project, with no headaches for the building management team and their tenants. While Skyline has built award-winning projects for venture capital, investment bank, law firm and tech companies, we also enjoy doing base building value-add work such as lobby remodels, cooling tower replacements, building repositioning and upgraded amenities.”

During his time off, Fish enjoys travel, golfing and spending time with his wife, adult children and baby granddaughter, Violet. Look for him at the next BOMA golf tournament!

6 Members on the Move

Award-Winning Services for Interior and Capital Improvement Projects Jeff Hutson 925.674.8850 jhutson@richlen.com www.richlen.com

Construction Clean-Up Pressure Washing High-Rise Window Washing

650-588-9808

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Fulcrum Development has been formed by two San Francisco– based real estate executives: Steve Ring, formerly of Cushman & Wakefield and past BOMA San Francisco President, and David Ford, formerly of Transwestern and current IREM San Francisco Bay Area President. Focused on Assisted Living/Memory Care developments for the aging population in the Western United States, Fulcrum is partnered with the top Assisted Living/Memory Care management company in the industry, a global think tank on aging, and one of the largest sources for capital in the senior housing market in an effort to deliver the best product available to the marketplace.

David Ford

Steve Ring

Marsha Ramsey, RPA, has been promoted from Portfolio Manager to a Director of Asset Services for Cushman & Wakefield.

Ramsey is also an officer of the BOMA San Francisco Foundation Board. She was the Co-Chair of the CREATE Gala which raised funds for CRE education.

Skyline Construction has appointed John R. Selby (Jack) to its Board of Directors. In this role, Jack will be responsible for providing insight into private funding markets and its potential impact to the Bay Area real estate and construction industry. Selby is a technology and finance executive, who brings more than 14 years of experience to the board. Currently, he serves as a Managing Director at Thiel Capital, an investment firm founded and managed by Peter Thiel.

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

7 Bay Area TOBY Winners Advance to International Four Bay Area TOBY Award winners have advanced to win awards in the Southwest region and are in the running for awards in the BOMA International competition, which will be announced at the international convention in late June. Congratulations and good luck to these building teams!

TOBY winners clockwise from top left: One Market Plaza, Paramount Group, Inc. (Best Office Building over 1 million SF); 450 Sutter Street, Harsch Investment Properties (Best Medical Office Building); 201 Spear Street, Cushman & Wakefield (Best Office Building 250,000–499,000 SF); Stoneridge Corporate Plaza, Next Play Consulting (Best Suburban Office Park).

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

Contribute (via your company, and personally) to the BOMA San Francisco Foundation Hire a summer intern to add “real world” experience to students in the CRE Certificate program

s

About BOMA VIEWS

Expanding our pool of qualified employees is crucial for our industry to sustain its value. Here’s where you can assist!

s

Contact Akiba Davis (akibad@boma.com) for information or visit www.bomasf.org (Education & Training).

Member fee is $1,250. Includes course materials and continental breakfast each day.

The Commercial Real Estate Certificate program we started at SF State is bringing many young people with relevant education into our exciting industry. We’re growing our talent pool so that all of us have more choices of potential future employees.

s

BOMA’s Real Property Administrator (RPA) designation is for those who manage commercial property assets. One important component of your responsibilities is protecting the environment and promoting worker health and safety. This course addresses environmental health and safety considerations in building operations. You’ll learn to develop and manage proactive environmental/occupational health and safety programs, comply with regulatory standards governing facility health and safety, and assess when to obtain technical assistance.

President’s Message (Continued from page 2)

Mentor new talent, and/or volunteer to be shadowed by students curious about our industry

So that your company has the widest array of talent to choose from in the future, and so that no building or real estate-related business is without competent employees to maintain asset value when we baby boomers retire, I urge you to contact the BOMA office and commit to taking at least one of the above actions. Sustainability for our industry requires it!

9

From bridges to buildings and everything in between

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10

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BOMA San Francisco Upcoming Events Membership Luncheons July 28 September 15

October 27 November 17

Seminars October 18 – Annual Emergency Preparedness Seminar November 10 – Annual Codes Seminar

General Membership Networking Events September 19 – Annual Elmer Johnson Golf Tournament December 1 – Holiday Party

Visit www.bomasf.org to learn more.

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11 Join a Committee to Get the Most Out of BOMA Education: It arranges speakers for luncheons and plans educational seminars to provide timely, quality and useful information to members.

Emergency Preparedness: It identifies exemplary safety, security, emergency preparedness and incident prevention practices in the commercial property field and educates members about security and life safety assessment and planning tools and the range of preparedness options available to them.

Energy and Environment: It helps commercial buildings become more energy efficient, promotes environmentally sustainable business practices, facilitates best practices in Here are the committees: the management of solid Associates: It plans waste and hazardous waste major networking events recycling and disposal, and including the annual Elmer educates building ownJohnson Golf Classic, ers and managers about the annual holiday party, upcoming issues of compliBOMA at the BALLPARK ance, municipal ordinances, and other social and netand industry benchmarks. working opportunities.

Government Affairs Young Professionals: Policy Advisory: It meets It facilitates association with those who propose awareness and particior decide public policy, pation opportunities for analyzes existing or promembers in the early posed legislation and/or stages (0-7 years) of indusregulations to determine try experience. The steering Committee activities include the annual emergency preparedness drill the impact on BOMA and seminar organized by the Emergency Preparedness Committee. committee plans and members, and recommends executes networking, social for BOMA Board approval what position the associaand/or educational offerings. tion should take on such matters. GAPAC educates and Political Action: It promotes good government, informs BOMA members, elected and administrative offisupports fair-minded candidates for public office, and cials, and the public about issues of significance to comballot measures advancing the sustainable economic mercial real estate and BOMA’s positions on those issues. health of San Francisco Historic Buildings: It supports member information Real Estate Careers: It promotes awareness of the needs regarding building codes, building permit proceopportunities within the commercial real estate industry dures, and policies applicable to historic buildings. to students and emerging professionals.

Membership Services: It recruits new Principal Codes & Regulations: It provides technical support (Building) and Associate (Vendor) members to the organion code-related issues to the Government Affairs Policy zation, with emphasis placed on identifying non-member Advisory Committee (GAPAC); educates BOMA members buildings and planned developments in San Francisco, about construction industry codes, standards, ordinances San Mateo, Sonoma and Marin counties. The commitand regulations and their impact on the commercial tee renews existing members to ensure the organization real estate industry; and provides input into the coderetains the current number of members and communicates making process at the state and local levels consistent the exclusive benefits available through membership. with BOMA’s policy positions.

Being a part of a committee, veteran BOMA San Francisco members advise newcomers, is the most effective way to develop a valuable network of business friends, gain deeper insights into commercial real estate and make a genuine contribution to your company and industry.

There is a wide variety of committees that members can join, depending on their objectives and interests. And, since everyone in a BOMA member’s company is eligible to participate in BOMA activities, your company can be represented on a number of committees.

To learn more about committee activities, visit www.bomasf.org and click on the “Get Involved” tab.

12 CREATE Gala (Continued from front page)

program who now work in the field. (See page 13.)

In his welcoming remarks, Jes Pedersen, CEO of the gala’s signature sponsor Webcor Builders, noted the need to have “students arrive ready to work,” and commended the participating associations for their efforts.

“Real estate is no better than the people who work in it,” said Kilroy. “Surround yourself with people of good character.”

Kilroy Realty has expanded dramatically since its entry into the Bay Area six years ago, and its many projects include the ground-up LEED platinum Salesforce tower. “Creating exciting workplace environLinda Oubre, Dean of SF State College of Business, ments is what we do,” Kilroy thanks Derek Schulze of Able for its support. said. He added that Millennials are the most sustainable-minded generation and that amenities like rooftop decks are expensive, but help attract and retain talent. The company is also committed to art and culture at its properties.

Kilroy’s growing company has supported BOMA’s educational efforts by hosting interns and has hired two graduates of the SF State CRE program, including Marina Ayad, a former intern, who is now a project coordinator.

At the gala, Kilroy announced that his company would donate $25,000 a year for four years toward the CRE educational program.

Addressing Industry-Wide Talent Shortage Through the CRE certificate program at the SF State College of Business, economically disadvantaged students from San Francisco and Alameda counties receive scholarships (underwritten by Bay Area firms) to learn the practical skills they need to operate and manage a commercial building. The program includes wrap-around support services such as academic/career advising, tenweek paid internships and placement into jobs at starting salaries of $40,000 to $50,000, with benefits.

The BOMA San Francisco Foundation established a collaborate partnership with SF State in 2012. Realizing that this is an industry-wide issue, BOMA San Francisco Foundation leaders invited IREM, NAIOP and BOMA

Oakland/East Bay to join in supporting the effort and formed the CREATE collaboration.

Gala guests donated through pledge cards placed on the tables and by bidding on silent auction items which were arrayed in a Monopoly game-type display.

Auction items included Hawaiian vacation accommodations, golf outings at the Olympic Club and the Mayacama Golf Resort, a Lake Tahoe getaway, Giants tickets, gift baskets and fine wine selections.

Thank you to the generous CREATE event sponsors (listed at right) and to members of the commercial real estate community who gathered to celebrate and support future commercial real estate leaders.

You can help...and you can benefit!

The best way for employers to benefit from the CREATE program is to host an intern. Give one of our program enrollees the opportunity to get some practical experience while putting their training to work for you. Almost 100% of the students who have participated in our summer internship programs are full-time employees in CRE. Otherwise, make a tax-deductible donation to the BOMA San Francisco Foundation, tax ID is 80-0757877.

13 Thanks to CREATE Gala Sponsors!

CRE Grads Share Their Stories....

Signature Sponsor Champion Sponsors Allen Matkins Pacific Gas and Electric Company Skyline Construction Inc.

Contributing Sponsors

Able Bently Reserve LP Field Construction Kilroy Realty LBA Realty Charitable Foundation Fund Shorenstein

Supporting Sponsors ABM Anderson, Rowe & Buckley, Inc. Baker’s Floor & Surface Bayline Mechanical & Plumbing BCCI CBRE Cushman & Wakefield Devcon Construction Hanson Bridgett LLP Hathaway Dinwiddie Hoem & Associates, Inc. Innovative Mechanical Inc. Jerry Thompson Painting JLL McMillan Electric Co. Metropolitan Electrical Construction, Inc. Monticelli Painting Nichols Booth Architects Reuben, Junius & Rose LLP RiverRock Real Estate Group RMR Construction Sterling Bank & Trust/Seligman Family Fdn. Stockham Construction Swinerton Builders The City Club The Empire Group Universal Protection Service Urban Waterproofing VCB Acoustics, Inc.

Donors Anderson, Rowe & Buckley, Inc. Cupertino Electric Gerson Bakar W. Bradley Electric, Inc.

Media Sponsor

California Buildings News

Master of Ceremonies Stan Bunger asked Samantha Hoyle and Marina Ayad, SF State CRE certificate holders, about their experiences with the program. Both are now working in the field: Samantha with Cushman & Wakefield and Marina with Kilroy.

“

I liked the real-world experience. With the paid internships, I put what we learned in class to work...

[Learning about] different roles and directions was inspiring.

”

­— Marina Ayad

“

I liked that the classes were taught by industry professionals...People in the industry are supportive.

I got a scholarship to attend the BOMA International convention.

”

­— Samantha Hoyle

14

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BOMA at the BALLPARK BOMA members and guests enjoyed the pre-game party at China Basin on April 20.

Clockwise from top left: Jose Guevara, American Assets Trust; and Michael Oddo, Metro Services Group. Jim Cadorin, Adele Vigorito, Ken Cadorin, and Joe Donnelly, GSH Group.

Kimberley Davis, Don Meeks and Liz Thomas, Universal Protection Service. Dwain Botelho, NRG; and Bob Briones, Able. Garth Phillips, and Craig Rossi, Rossi Builders.

15 Mixing & Mingling Scenes from the Second Annual CREATE Gala, a fundraiser for commercial real estate education, at the Bently Reserve.

Clockwise from top right: CREATE event signage. Morgan Ward, RETS Associates. Anne Hinz, RiverRock Real Estate Group; and Michael Murphy, Cushman & Wakefield. Marc Intermaggio, BOMA San Francisco; and family of the late David Hysinger, SF State CRE instructor. Overview of Gala and silent auction tables. Ardalan Alizadeh, JLL; Ryan Rusler, Har-Bro; and John Combs, RiverRock Real Estate Group. Alex Day and Anne Hill, Bently Holdings; and Tory Brubaker, BOMA San Francisco.

BOMA San Francisco 233 Sansome Street, 8th Floor San Francisco, CA 94104-2134

415.362.2662 www.bomasf.org

Printed on recycled paper.

The Last Word: Marc Intermaggio Is Your Company a Game Changer? Are YOU? Real estate is a fairly staid profession, with a few notable exceptions (consider how Trulia and Zillow empowered consumers; examine how WeWork and Liquid Space are changing the way commercial space is leased). On the whole, however, most people in real estate are only playing the game, rather than changing it.

Yet here in the Bay Area, we are absolutely surrounded by innovation.

And changing the game is the “big play.”

It’s what PayPal co-founder Peter Thiel would characterize as going from “zero to one” (the title of his book). Thiel says “competition is for losers,” advocating instead for changing the game and dominating the new business you create. Peter Drucker might agree.

He said that “Business has only two functions: marketing and innovation.”

We should be inspired, and motivated to bring innovation into our own profession. You don’t have to look very far at all for any number of major game changers.

Apple changed the personal computer, music, media, and mobile phone industries.

Starbucks changed our coffee experience.

Netflix changed how we watch television shows and movies.

Uber changed vehicle transportation and the taxicab industry.

Grub Hub changed how food is ordered and delivered.

Square changed how people pay small business.

Twitter changed how we communicate online.

Kickstarter changed how we fund projects through crowdsourcing.

Spotify (and Pandora) changed how we discover and listen to music.

Amazon changed how we buy products online and how quickly they are delivered.

Google changed how we search.

Rent the Runway changed online dress retail by allowing customers to rent apparel instead of buy it.

Facebook changed how we connect and share online.

Snapchat changed how we share and send pictures.

Fitbit changed how we track our exercise.

PayPal changed how we pay.

Tesla changed how we drive.

Box.com changed how companies store their data.

And even after achieving supremacy with their 2015 championship season, the Warriors took excellence even further, beyond beyond, changing how the game of basketball is played.

Are you just playing the game? Rather than thinking simply about incrementally improving your existing business, and instead of going from something you have now to a “slightly better something,” can you go from nothing to something — and change the game completely?

It’s the big play!

Marc Intermaggio, CAE, is Executive Vice President of BOMA San Francisco and Executive Director/CEO, BOMA San Francisco Foundation.