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Summer 2015

BOMA SF Members Gain Insights, Grow Networks at Annual Conference San Francisco CRE movers and shakers traveled south for a week in June for the BOMA International Every Building Conference & Expo at the Los Angeles Convention Center. Building professionals were able to enhance their knowledge through more than 50 educational sessions, learn about product and service innovations at the Expo, and network with old and new industry connections. But the gathering wasn’t all work. Jay Leno headlined the opening session

with a humorous presentation to an enthusiastic crowd. And at the welcome party hosted by BOMA Greater Los Angeles at Los Angeles Center Studios, party-goers cheered BOMA/GLA as it celebrated its 100th anniversary L.A. style. Downtown Los Angeles also played a starring role, as attendees marveled at the revitalization of downtown, with its soaring new office, residential and mixed-use towers; restaurants; hotels and entertainment venues. (Continued on page 6)

Photos at top: Blake Peterson, BOMA SF President, presented at the conference; welcome sign at Expo; Kimberley Davis and Liz Thomas, Universal Protection Service, at their booth.

CRE Interns Learn Real-Life Lessons Commercial real estate pros welcomed some young talent to their busy workplaces this summer through the BOMA San Francisco Foundation’s internship program. Students participating in the San Francisco State University CRE program learned real-life lessons by interning with BOMA member companies. Student interns were paired with companies whose services matched their interests and skills. Former intern and current tenant services “As the internships wind down, some coordinator Max Hinz on the job. interns have been offered full-time permanent positions— a tribute to the program’s success in preparing job-ready candidates,” says BOMA San Francisco Executive Vice President Marc Intermaggio. (Continued on page 8)


2 The Gift of Time With Blake Peterson, BOMA San Francisco President

Thanks to Our 2015 Corporate Sponsors* Platinum Sponsor

Able Services Gold Sponsors

So, how are you? The most frequent answer that I get when asking colleagues this question is one simple word: “busy.” Our vibrant, booming economy brings us more deals to negotiate, more projects to manage, and more people to satisfy, yet does not provide any additional time in the day to make this all happen. The key to being a well-rounded and efficient professional is to master your most valuable resource—your time. Careful time management isn’t just about milestones and deadlines, it is also the key to a fulfilling career made up of relationships and projects that reflect your personal best due to the time that you invest. If busy is the new normal, then we must find a way to operate more efficiently. I care deeply about dedicating time to my work projects, family, clients, peer-group and employees. Each group has specific needs that I am committed to understanding and giving undivided attention. None comes without some sacrifice — mainly because I’m sometimes asked to be two places at the same time. But that sacrifice can be mitigated by making the most out of your limited time. Thinking about how you spend your days and applying a mental productivity score to each task or event may help you identify critical vs. inessential activities. Considering the value of your meetings is a minefield of opportunity. Consolidating redundant meetings or restructuring agendas to allow certain parties to attend only portions of the meeting relevant to them lets teams focus on more pressing items. Disclaimer: I’m about to say something that sounds awful! When I get really busy, I often find the hour-plus long business lunch a waste of time for me and my lunch date. I can have a meaningful conversation with most people over a 20-minute coffee or 5 pm beverage meeting. My interest in making efficient and effective connections is part of the reason why I attend as many BOMA events as possible. Face time nurtures relationships, and BOMA events provide one-stop-shopping for seeing multiple colleagues and meeting new people. I find it interesting to attend different types of BOMA events — from committee meetings, to educational offerings to social events and luncheons. Each event has a different vibe and draws its own unique mix of professionals. I encourage all BOMA members to branch out beyond their usual events to expand and nurture their BOMA network. When I see you at a BOMA event, I’m going to ask you how you are. I will already assume that you are busy. When I ask how you are, it is because I truly want to know what is going on in your world. Let’s discuss something memorable or interesting… just not over a long extended lunch… we’re busy! (Be sure to follow @BlakeCRE.)

ABM NRG Energy Center San Francisco Pacific Gas and Electric Company Recology Golden Gate San Francisco Electrical Contractors Assn., Inc.

Silver Sponsors Alliance Roofing Company, Inc. AT&T CBRE Hines Hudson Pacific Properties Kilroy Realty Metropolitan Electrical Construction, Inc. Paramount Group, Inc. ProTech Security Services, Inc. Trinity Building Services Unique Elevator Interiors, Inc. Universal Protection Service Waxie Sanitary Supply

Bronze Sponsors Boston Properties Deutsche Asset & Wealth Management DTZ Georgia-Pacific Hathaway Dinwiddie Construction Co. Impark JLL Marble West McMillan Electric RiverRock Real Estate Group Securitas Security Services USA Shorenstein Realty Services, L.P. The Swig Company

Friends of BOMA Allied Restoration Company Bauer’s Intelligent Transportation Bay City Electric Works BNBuilders BUILDGROUP, Inc. CBF Electric & Tel/Data CB2 Builders Cole Supply Co., Inc. CTC-California Technical Contracting, Inc. Cushman & Wakefield GCI General Contractors Perfection Services R.N. Field Construction, Inc. Rossi Builders, Inc. Stationary Engineers, Local 39 Swinerton Builders The Lawson Roofing Co. Inc. Township Building Services Transwestern Veritiv Wilson Meany Young Electric Company *For sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com


3

What Can Property Managers Teach Lawyers About Leases? — by Manuel Fishman, Buchalter Nemer Often, the question is stated the other way. But, on August 27, 2015, BOMA San Francisco conducted a sold-out program for property managers to help them take control over various parts of the lease documentation and enforcement process. And, in the end, I walked away with an appreciation of what property managers can teach lawyers. The most important take-away is that a property manager knows (and is charged with implementing) the operational and policy directives of his or her ownership, and the lawyer needs to spend some time to make sure he or she is drafting and negotiating leases consistent with these practices. A lease form that lays out contractual obligations that do not match an ownership’s operational and policy goals leads to longer lease negotiations, delays in construction and build out, mismatches (and lost recoveries) on pass throughs of operating expenses, gaps in insurance coverages, loss of control over who is in occupancy of a tenant’s space and delays in enforcement of the lease following a tenant default (often times with unwanted litigation). Our August program focused on the role of the property manager in lease reviews, from making sure the letter of intent states readily achievable deliverables by the ownership, to reviewing the lease form, and to establishing uniform procedures for recoupment of capital expenses as part of operating expenses. We examined basic concepts of allocation of risk between landlord and tenant and the procedures for obtaining certificates of insurance that confirm that a risk has been insured. We discussed the steps involved in reviewing requests for, and the documentation for approval of, allowing new parties to occupy a tenant’s space. Finally, we drilled down into the details governing contractor qualification, supervision, and conduct when work is performed in a building. With construction costs and the expenditures incurred in building out of space, including the code compliance costs, being as high as they are, the consequences of missing projected occupancy dates due to construction delays and cost overruns are extremely important. What lawyers learn from property managers is that the lease form they draft has important consequences for operational efficiency, tenant communication and ownership return on investment, and there should be frequent and regular communication between the property manager and the lawyer. Just as property managers go through a budget process each year, there should be a formalized annual lease review process. Having a lease form that is consistent with the way building management operates and implements ownership expectations is only as good as the communication between the people on the ground—the lawyer and the property manager being two key players (let’s not forget comptrollers, construction mangers, riser managers, risk managers and building engineers). Manuel (Manny) Fishman is a real estate lawyer and partner at the Buchalter Nemer law firm in San Francisco. He is the chair of BOMA San Francisco Government Affairs Policy Advisory Committee, and has served as one of BOMA San Francisco’s members on the BOMA California board of directors. He may be reached at 415.227.0900 or mfishman@buchalter.com. Visit www.buchalter.com.

Does Your Building Have Winning Qualities? Enter BOMA’s The Outstanding Building of the Year (TOBY) Awards Contest! December 11 – Deadline to Submit Your E-Binder

BOMA’s TOBY Awards recognize prestigious BOMA member buildings and reward excellence in buildings management. Start competing in the local competition held by BOMA San Francisco and BOMA Oakland/East Bay. Winners advance to the regional level and finally to the international level.

November 13 – Deadline to Register Your Property

Step 1: Register Your Property and Pay the Entry Fee by Nov. 13 Step 2: Once Registered, Submit Your E-Binder by Dec. 10

Learn more at: http://www.bomasf.org/toby_awards.vp.html


4 Principal Member Profile

Deborah Boyer, Executive Vice President and Director of Asset Management, The Swig Company

“I’ve never been more excited to work in commercial real estate. Both the magnitude and speed of change spurred by technology have generated fundamental changes across every sector of our industry,” says Deborah Boyer, Executive Vice President and Director of Asset Management at The Swig Company, a commercial real estate investor with a 75-plus year history. She has responsibility for the portfolio assets nationally. Among its signature properties in Northern California are The Mills Building in San Francisco and the Kaiser Center in Oakland. For the past few years, Swig has formed a number of strategic partnerships to study next-generation real estate solutions and pilot new models. “An example of this is the pilot project we are launching with LiquidSpace to streamline the office fitout process and provide unique turnkey project spaces on a month-to-month basis to support the needs of start-ups and other small tech/creative tenants,” she explains. Boyer enjoys time at a recent picnic Boyer brings her CRE expertise to the BOMA San Francisco Board, serving as the for The Swig Company. liaison to the Careers Committee. Deborah observes that “BOMA is rightly focused on the need to attract talent to our industry. We have some tremendously talented, capable individuals coming into the business. BOMA’s development of college curriculum serves to introduce business-oriented undergrads to CRE professions, and we are beginning to see the benefit of these efforts.” The integration of the Careers Committee, BOMA Young Professionals and the BOMA SF Foundation strengthens the effort, as all groups share common goals. The property teams at The Swig Company are active on many BOMA committees and take advantage of ongoing educational and networking opportunities at BOMA. “However, perhaps the greatest value derived is engagement with the broader real estate community. BOMA excels at cultivating that community,” adds Boyer. During her down time, Boyer likes to travel and is looking forward to a fall trip to Italy.


5

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Associate Member Profile Andrew J. Junius, Partner Reuben, Junius & Rose, LLP BOMA San Francisco is fortunate to be able to draw upon the talents of real estate lawyer Andrew Junius, who serves as Vice Chair of the BOMA-SF-PAC. His firm, Reuben, Junius & Rose, LLP, is a full-service real estate law firm that specializes in land-use and development law. “I’ve been doing this since the early 90s, and it really has been amazing to see the Andrew Junius serves as Vice city change and grow. Unfortunately, what seems to keep growing is the planning code Chair of the BOMA-SF-PAC. and other related regulations. While often well-intended, the rules really do get in the way of business getting done,” observes Junius. “The constant growth of the regulatory beast should be a concern for a city like San Francisco.” Former PAC board member Nancy Gille convinced Junius that his perspective would be valuable to the PAC. “Serving on the PAC has been a blast,” he says. “I know it sounds wonky, but I really like the monthly meetings. Ken (Cleaveland) and the gang always come up with a great speaker. We have lively discussions about the issues affecting commercial real estate.” As the November election approaches, the PAC is watching a number of local ballot measures, many which relate to real estate interests. “It’s a pretty intense time,” he notes. “At a statewide level, where the Prop 13 split-roll issue goes will be fascinating.” In addition, “Prop M will impact the long-term health of the City. The mayor and the development community really need to figure this out or there will be dire consequences.” Junius has a spirit of adventure that prompted him to jump into new waters. “My wife and I recently got into sailing on the San Francisco Bay. Took lessons, bought a boat, the whole nine yards. For someone who grew up in Las Vegas and was never really a water person, it’s been an amazing thing.”


6 BOMA Every Building Conference & Expo (Continued from front page)

BOMA SF Members Reflect on the Conference & Expo The conference offered learning opportunities for those new to CRE, as well as seasoned professionals. “As a second-time attendee of the BOMA International Conference, I was excited to see how much the event has grown in recent years,” said Michael D. Meyer, Director – Corporate Occupier and Investor Services for Cushman & Wakefield and a BOMA San Francisco member. “This year’s educational programming — particularly the asset management track — was exceptional. I left

BOMA San Francisco members at their booths at the Expo. Clockwise from top left: Sam Shapiro and Mark Kelly, Able Services; Jeff Spicker, Parking Concepts, Inc.; Joe Consolino, Lynn Safety; Bob DiProspero and Jennifer Graham, Kastle Systems; and Tracy Steingold, Kimberly-Clark Professional.

the event with renewed focus and a handful of new tools and tactics for harvesting value on behalf of my clients,” said Meyer. “The BOMA International Convention provides exposure to the most innovative products, services and technology offerings that can help owners and managers maximize their assets. Attendance is a must for those who want to stay ahead of the curve,” he added. BOMA SF associate members benefited as well. The conference “was not only a great opportunity to network with clients and potential clients in a fresh setting… it gave me a better understanding of the issues that are important to them and the assistance I can provide,” remarked Jeff Spicker, Manager of Business Development, Parking Concepts, Inc. “From Jay Leno to the original Batmobile to Disco Ninjas, the 2015 Every Building Conference & Expo had it all,” said Joe Consolino, Design Department Manager for Lynn Safety, shown below with his eye-catching model on the Expo floor. “Our team had such a great experience catching up with past clients and meeting new ones.” “The BOMA conference was great for Kastle, because we were able to meet and share the latest innovations in CRE security with many of our customers and prospects,” said Jennifer Graham, Vice President of Marketing for Kastle Systems. Mark your calendars now for the 2016 Every Building Conference & Expo, which will be held on June 26-28 in Washington, DC. You and your team will be glad you did!


7 Members on the Move Harvest Properties, Inc. has promoted Maddie Cullen to Assistant Property Manager at 55 Hawthorne and 631 Howard. Maddie has been with Harvest Properties for two years and currently serves on the BOMA Young Professionals Steering Committee. Emily Herson joined RiverRock Real Estate Group, a commercial real estate management and leasing firm headquartered in Newport Beach. She is General Manager of 275 Battery Street. Prior to joining RiverRock, she was Director of Operations for Colliers International, leading the property management department for San Francisco.

Harsch Investments Properties was honored by BOMA International with a TOBY (The Outstanding Building of the Year) Award in the Southwest Region for its 450 Sutter Street building. The iconic art deco building won in the Medical Office Building category. At the annual CLCA San Francisco Bay Area Beautification Awards Ceremony in June, Gachina Landscape Management won four awards, including the Landscape Management Sweepstakes award for best maintained commercial property.

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

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8 CRE Interns (Continued from front page)

“Combining classroom instruction with job shadowing, mentoring and internships is a cornerstone of the partnership with BOMA and San Francisco State.”

As an intern for Cushman, Hinz worked two weeks at four different properties, shadowing different employees and taking on varied tasks. With Ramsey, he worked on calculations for the budget at 525 Market Street. In addiInterns Gain Varied Experiences tion, the team gave him a rooftop-to-basement tour of the Two companies hosting interns were Cushman & building and an overview of mechanical, engineering and Wakefield and Skyline Construction, both of which vendor management. “Having four marquee properties have endowed scholarships for the SFSU program. with experienced teams at each buildFor the second year in a row, ing made this an incredibly unique Cushman & Wakefield hosted an opportunity to experience different intern who had taken classes in the environments and management compoprogram. And for the second year sitions,” said Hinz. in a row, they hired the intern! “We also talked about career oppor“Our former intern, Max, is now tunities in real estate,” added Ramsey. Tenant Services Coordinator at 650 One of the courses at State was on creTownsend, the first place he interned,” ating value in a building on a financial says Marsha Ramsey, Portfolio basis. “We filled in the gaps of what Manager – Corporate Occupier & we do every day that makes tenant Investor Services. comfort better, so that tenants want to Nicole Benavente and Eric Franco While taking the Fundamentals in stay and provide a good environment for at Skyline Construction. Real Estate Valuation course, Max Hinz their employees.” became excited about commercial real estate as a career: In participating in the internship program, “our hope “We did a tour of 350 California with Jim Arce and is to identify and train future industry leaders and potenNancy Gille. That was a light-bulb, aha moment for me.” tial future employees of Skyline,” said Project Manager Nicole Benavente. During his internship with the firm, Eric Franco “had a chance to work collaboratively under the leadership of many different project teams to understand different aspects of our business and the various ways our teams operate.” Skyline developed three clear objectives for the internto your building ship to provide a better understanding of the construction industry as it relates to property management, as well as to support its overall corporate initiatives. These included: 1) Developing a thorough understanding of the 20-day preliminary notice from a building owner, general contractor and subcontractor’s perspective; 2) Assisting in putting together closeout packages to deliver to building management; and 3) Enhancing the Build America Challenge materials library/database for future Americanmade construction projects. “We were very impressed with Eric’s accounting skill and finance background and his ability to get these tasks done efficiently,” said Benavente. “In return, we were able to provide some insight into how the architect, general contractor and subcontractors work together to collaborate on projects, and how the construction payment and billing process works. Eric advised that after this internship, he is interested in staying on the construction side of commercial real estate.”

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11 Mixing & Mingling Scenes from the Elmer Johnson Golf Tournament and the BOMA YP Summer Rooftop Mixer, where young professionals raised $1,000 and collected toys for the San Francisco Fire Department Toy Program.

At the golf tournament—Left: Robert Dawes, ABM; Patrick Murphy, Paramount Group, Inc.; Cheryl Ford; and David Ford, Transwestern. Top: Sarah MacIntyre, Dawn Mariano, and Gail Ringer, Kilroy Realty Corporation. Photo lower left—BOMA YP Chair Brooke Barnecut and YP Summer Rooftop Mixer Chair Whitney Jorgensen, both with Kilroy Realty Corporation, present firefighters with a $1,000 donation to the SFFD Toy Program. $10 of every ticket sold to the mixer was donated and over 100 toys donated by attendees. BOMA and SFFD look forward to another successful toy drive this holiday season.

PAC Recommendations (Continued from back page)

November 2015 City Ballot Measures and Our BOMA–SF–PAC Recommendations Prop A – Mayor Lee’s $310 million Affordable Housing Bond – YES Prop B – Enhancement of Paid Parental Leave for City Employees – NO POSITION Prop C – Lobbyist Expenditure Law Expansion – YES Prop D – Giants’ Mission Rock Project – YES

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 Contact Ellen Eason at 415.596.9466 or ellen@easoncom.com

Prop E – Public Meetings Webcasting Initiative – NO Prop F – Increasing Restrictions on Home Sharing – NO Prop G – SF Renewable Energy Truth in Advertising Act – NO Prop H – Clean Energy Right to Know Act – YES Prop J – Legacy Business Historic Preservation Fund – NO Prop K – Surplus City Property Disposal Measure – YES


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The Last Word: Ken Cleaveland

assessment to fund MUNI, and killing a transfer tax hike as well as several parking tax increase attempts. This year we are faced with the prospect of seeing our SF Board of Supervisors shift seriously left if Supervisor Julie Christensen is not elected. (She currently serves as an appointee of Mayor Lee.) There are huge matters at stake on the long city ballot propositions list that the BOMA– SF–PAC Directors carefully considered before taking a position. I invite you to review our recommendations in the boxes below.

BOMA San Francisco has been involved in politics since 1911. As anyone who owns property in San Francisco knows, there are countless city departments that impact property Contribute to BOMA–SF–PAC owners—from permitting to fire Our organization’s ability to safety, to sidewalk or street abateremain relevant and succeed in ments for construction, etc. Most protecting your owners’ assets of the laws that our members deal BOMA San Francisco is the only isn’t possible without a well-funded with are related either to state and organization actively engaged in every city BOMA–SF–PAC. Please be sure to locally-adopted building codes let your owners know that in San department that impacts commercial (such as those related to disabled Francisco, private property owners property owners, and we constantly access, elevator safety or fire all need protection, and BOMA is negotiate procedures and implementation prevention requirements), or city the best advocacy group for comschedules on behalf of our industry. compliance ordinances like the SF mercial real estate. Invest in the Green Building Ordinance and the BOMA–SF–PAC! Thank you. more recent Commercial Energy Conservation Ordinance. November 2015 BOMA SF Slate Card BOMA San Francisco is the only organization actively and Recommendations to our Members engaged in every city department that impacts commercial property owners, and we constantly negotiate procedures 4 Mayor Edwin Lee for re-election and implementation schedules on behalf of our industry. 4 Vicki Hennessy for Sheriff To support our ongoing legislative advocacy, BOMA 4 Julie Christensen for SF District 3 Supervisor SF took the additional step in protecting its members’ properties by establishing a Political Action Committee in 4 Alex Randolph for City College Board of Trustees 1987. Via BOMA–SF–PAC, BOMA San Francisco has raised several million dollars to support or oppose ballot (See Ballot Measure recommendations on page 11) measures that would be extremely detrimental and/or expensive to commercial property owners. Our record of Ken Cleaveland, is the Vice President, Public Policy of success is very good, including defeating a $1 psf annual BOMA San Francisco.

Viewssummer2015  

News from the Building Owners and Managers Association of San Francisco

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