Sustainability in CRE: Do Tenants Care? (See page 8)
Back to School with BOMA
Education & Training Opportunities Abound With autumn just around the corner, now is the perfect time to consider educational opportunities for you and your team to your enhance skills and stay competitive. An array of resources from BOMA San Francisco and BOMA International offer something for every level — from entry-level staff to seasoned CRE professionals and associate members. And don’t overlook BOMA’s committee meetings, networking events and membership luncheons for getting out of your silo and learning from peers with local industry knowledge. So, sharpen your pencils and recharge your iPads! See the box on page 13 for upcoming educational opportunities to consider for yourself and colleagues. (Continued on page 13)
UPDATE Interns Gain Experience With BOMA Hosts CRE summer interns gained real-world experience and practiced some of the skills learned in classes at SF State, thanks to their BOMA member host companies. Interns were tasked with a variety of projects, including: planning a pop-up food vendor project, budgeting, customer relations, managing a vehicle pool, researching the efficacy of a solar (Continued on page 11)
Karen Chan and Rita Hernandez at Brickman’s 550 Kearny building.
2 BOMA Creates VALUE... For Personal and Corporate Success! With John Combs BOMA San Francisco President According to CBRE/Ray Torto, 53% of a commercial property’s return on investment can be directly attributed to actions taken at the building operational level. Well-trained staffs using BOMA resources can substantially enhance asset value. By using BOMA’s best-practice and benchmarking tools, you can increase the ROI of your assets by knowing about and deploying savings from BOMA’s building code victories and legislative successes, and by using BOMA standards. For example, in a typical 100,000 sq. ft. building, BOMA tools can lead to a potential property value increase of $2.9 million. (See infographics at left and on page 10.) BOMA’s industry best practices net at least $1 psf. According to the BOMA International Experience Exchange Report, BOMA 360 buildings achieve $1.77 more revenue psf than the average building in the Kingsley Index. BOMA 360 buildings also achieve $1.04 more revenue psf than the average LEED certified building, and they have higher tenant satisfaction scores in all 54 Kingsley quantitative rating areas. BOMA Standards Yield Value. Measuring a property to the BOMA standard can increase rentable square footage by 3%. There are BOMA standards that apply to multi-tenant office, industrial, multi-unit residential, retail and mixed-use, as well as gross area. (Continued on page 10)
Thanks to Our 2016 Corporate Sponsors* Platinum Sponsor
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
IF YOUR LOBBY SAYS YOU MEAN BUSINESS. MAKE SURE YOUR RESTROOMS SPEAK THE SAME LANGUAGE.
When it comes to giving your building the edge over the competition, it all starts with The C.H.E.S.S.* Program. Your restrooms are a vital part of attracting and retaining tenants. That’s where The C.H.E.S.S.* Program can help. It’s the first program of its kind, designed to assess your restrooms in five key areas: Cleanliness, Hygiene, Efficiency, Sustainability and Satisfaction.
How do your restrooms measure up? Take the C.H.E.S.S.* test today.
®/* Trademarks of Kimberly-Clark Worldwide, Inc. or its affiliates. Marques déposées de Kimberly-Clark Worldwide, Inc. ou de ses filiales. © KCWW. T24925-00 6/16
4 Principal Member Profile
Marty Smith, President and Owner Alhouse Deaton
Marty Smith encounters a “perpetual influx of opportunities and challenges every day,” as president and owner of Alhouse Deaton. In business for 55 years, the multifaceted real estate company focuses on property management and longterm asset planning. “I love engaging in the intensity of the business interaction in San Francisco. There is such a holistic approach from businesses to balance business success with community outreach and being a good citizen.” “Our firm’s institutional background allows us to provide best-practice services to clients without bureaucratic overhead and process that often restricts personalized service. A recent project was a perfect example of our unique strengths: the capital improvement of the Metropolis Trust Building at 625 Market Street.” The project involved a 30-month-long elevator modernization project that required expert oversight of the project team (consultants, architect, engineers, contractor and elevator Marty Smith and his family celebrate service provider), scrutinizing budget costs and fine-tuning construction schedules. his son’s graduation from UCLA. It also required a tremendous amount of communication with tenants. Beyond work, Smith says he enjoys politics. “I’m attracted to the interaction between people who want to get things done, yet hold varying differences in priorities. I’ve found that people with supposed opposing views actually agree on more than they realize.” His passion for politics led him to become vice chair of the BOMA San Francisco Government Affairs Policy Advisory Committee, which he will chair in 2017. In this election year, there are several initiatives that are of particular interest to the committee and the real estate community. These include a likely transfer tax proposition and an initiative to require owners of PDR zoned property (production, distribution and repair uses) who want to rezone their property to a higher or better use, to provide alternative locations. Although he's been sidelined from sports for the past several years, Smith loves golf and skiing. “I'm going to try skiing again this winter after a three-year hiatus due to ankle surgery, and I may even get back on the golf course.”
Construction Clean-Up Pressure Washing High-Rise Window Washing
5 Energy has no downtime.
Our NRG Energy Center San Francisco has been serving the city for more than 20 years by sending clean, reliable district heating to: Hotels • Shopping malls •
Multi-unit residences Offices
Government buildings • Schools and universities •
nrg.com FOR MORE INFORMATION:
Dwain Botelho | 415.777.3415 NRG and the plus signs are registered services marks of NRG Energy, Inc. ©2016 NRG Energy, Inc.
Associate Member Profile Gordon L'Estrange, Project Director for Real Estate, Salesforce In his role with Salesforce, the largest technology company in San Francisco, Gordon L’Estrange is responsible for all of Salesforce’s Global Office Expansion projects in the Western U.S., managing project management, design and general contractor partners who deliver projects and acting as their liaison to internal Salesforce stakeholder colleagues. “Essentially my role is to help translate Salesforce culture and innovation into the physical spaces we inhabit and our customers visit, making sure those spaces translate our core values, including giving back and customer success,” L’Estrange says. “We are growing very fast, both nationally and globally! I am coordinating multiple major interior construction projects in the many buildings we occupy here in San Francisco, Gordon L’Estrange with his including our future home within Salesforce Tower. We are in the early stages of planning interior designer wife, Stephanie. the use and functions of the 30 floors we will occupy.” L’Estrange has been involved with BOMA San Francisco. “I can safely say that where I am today in my career would not have happened without BOMA San Francisco. I began as a young, inexperienced architect, volunteering on the Codes and Regulations Committee. A few years later I chaired the committee for a number of years, organized many annual codes seminars and taught continuing education classes on behalf of BOMA. The experience and relationships I fostered were instrumental in allowing me to get a much wider breath of experience than most architects do in traditional practice. And to top it off I have met some great mentors along the way!” His wife, Stephanie, is a senior design leader with Gensler in San Francisco, and they have an eight-year old daughter. “Our careers keep us busy, but in our spare time we take advantage of one of our main hobbies — San Francisco restaurants. Most Sunday mornings you can find me in the Presidio rock climbing gym with my daughter Savannah.”
6 Members on the Move Marc Gille, formerly of Embarcadero Capital Partners, is now vice president of Rockhill Management, an affiliate of Boston–based Rockpoint Group. The firm provides property management and related services for investments owned by real estate vehicles sponsored by Rockpoint Group. The company manages 275 Battery Street in San Francisco, as well as projects throughout California on behalf of Rockpoint.
Award-Winning Services for Interior and Capital Improvement Projects Jeff Hutson 925.674.8850 email@example.com www.richlen.com
Colleen Hunter Jones is the new Office Building Specialist for Kimberly-Clark Professional. She began her K–C career in 2013 after finishing a Master’s program of Economics and Business at the University of Granada in Spain, where she served as a Rotary Ambassador of Goodwill. Colleen recently moved from Cincinnati, where she covered the Cincinnati, Kentucky and West Virginia markets.
Stoneridge Corporate Plaza’s team returned home with a big prize from the BOMA International Conference... a TOBY (The Outstanding Building of the Year) for the suburban office park low-rise category. Congratulations to Anne Sparks, Manny Moreno and the entire Next Play Consulting, LLC property management team. Shown above, Stoneridge Corporate Plaza advanced to International after winning a Bay Area Award and then in the Pacific Southwest Region.
Send personnel changes for Members on the Move to Tory Brubaker at toryb@BOMA.com.
221 Main Street: Multiple Capital Projects + Building Repositioning
995 Market Street: Repurposed + Skin Replacement
888 Brannan Street/ Jewelry Mart: Renovation + Full Wa y f i n d i n g
YEARS OF REPOSITIONING BUILDINGS IN THE MARKETPLACE
4 1 5 - 2 3 0 - 7 0 0 0 | I N F O @ N I C H O L S B O O T H | w w w. N I C H O L S B O O T H . C O M
8 Sustainability in the CRE Market... How Important Is It? Recruiting employees — especially Millennials, “You don’t want to lose a deal because you’re not boosting productivity and pushing toward LEED certified,” said Powell. “There is also is pressure a “well standard” are to keep up with the Joneses.” driving sustainability in the Faller commented on the San Francisco commercial importance of sustainability “Sustainable buildings are more real estate, experts said at to even smaller tenants: “It’s popular to lease, and there are savings a recent presentation to the about recruitment and retenBOMA San Francisco Energy tion. Millennials care a lot in operating expenses, which lead to and Environment Committee. about the environment.” But Tom Williamson, Senior unless it’s a purpose-driven value increase,” — Wes Powell, JLL. Manager, Special Projects, company, many tenants are for Hathaway Dinwiddie not willing to pay for costs Construction, moderated the related to sustainability. panel discussion. His firm is building the LEED platinum Powell said that “out of 100 tenants, two or three say that Salesforce tower, which will be the city’s tallest building. a building has to be LEED certified.” Faller noted that Serving on the panel were: Wes Powell, JLL; Jon Faller, “people go for a building that looks great. People like
Faller Real Estate; and Meade Boutwell, CBRE. (CBRE will handle leasing for the Salesforce tower.) Sustainability is becoming much more of a reality in the San Francisco market, noted Williamson. Statistics he cited for LEED buildings were: 61 percent of existing buildings, 25 percent for new construction; and 5 percent for interiors. Owners “want to do the right thing,” said Powell. “Also, sustainable buildings are more popular to lease, and there are savings in operating expenses, which lead to value increase.” In addition, he noted that most buildings are owned by investment management firms or pension funds that have sustainability mandates. He thinks the 61 percent figure sounds low.
better-run Class A buildings, which are most likely LEED.” “If there are two buckets — LEED and non-LEED — the non-LEED bucket has 2 percent higher vacancy in this tight market,” said Boutwell. However, he predicts that this will change as the market softens. People will want to move to better buildings. Class A buildings are very committed (to LEED). Then it goes down dramatically. Williamson asked if healthier indoor environments make a client more interested, as a healthier indoor environment has been shown to improve mental skills. “We’re on the West Coast...that matters,” Faller said. Companies compete for space, and productivity is important to them. (Continued on next page)
Shown above: on-the-scene illustration courtesy of committee member, David Urban, Urban Waterproofing.
9 Is Your Building Ready for the TOBY and EARTH Awards Contests? Now is the time to consider entering your building in The Outstanding Building of the Year (TOBY) contest or the Innovative EARTH Awards competition. Winners will be celebrated on the evening of February 9 at the BOMA Bay Area Annual Awards Gala, a joint event of BOMA San Francisco and BOMA Oakland/East Bay.
A BAY AR M
You can increase the odds of your building winning a TOBY by signing up for a pre-judging session. The TOBY Team will schedule experienced TOBY judges to tour your property. This pre-judge team will offer suggestions, provide helpful insight and answer questions to assist you and your management team in preparing for the TOBY competition. Schedule your date by visiting www. bomasf.org/outstanding-building-year-toby-contest (then select either “San Francisco” or “East Bay” option).
INNOVATIVE EARTH AWARDS
“The TOBY Entrant Workshop gave Kilroy Realty our roadmap to submitting a successful TOBY application for 303 Second Street. The workshop should be a prerequisite for any applicant who is serious about winning the TOBY,” said Justin Sacco, Asset Manager, Kilroy Realty. “The EARTH award application will be approved in September,” said BOMA Energy and Environment Committee Chair Zach Brown. “It’s a very easy application. Properties can submit single or multiple innovations.”
Sustainability (Continued from previous page)
Boutwell commented that buildings may be run efficiently, but that its carpets, desks and other furnishings can contain harmful chemicals. He predicted that what’s going to be next is the “well standard” — lots of scrutiny from the building owner about what they will allow tenants to bring in. “How a building is furnished is the last big mountain that has to be climbed. It’s going to happen: green lease control from the owner’s perspective.” “Tenants know intuitively that productivity will be better in a fresh, cool space versus a soul-robbing space,” said Powell. “Forget about rent. It’s 2-5% of the bottom line. Twist the dial slightly, and it could make a huge difference in absenteeism and presenteeism.” (As described in the Harvard Business Review: “Unlike absenteeism, presenteeism isn’t always apparent. You know when someone doesn’t show up for work, but you often can’t tell when — or how much — illness or a medical condition hinders someone’s performance.”) Faller noted that (sustainable) interiors come down to cost. Title 24 compliance is making buildouts costlier, even though density is twice as high with open spaces and fewer private offices. “Sustainable interiors have to get cost-effective,” he concluded.
Your commercial IPM/green/LEED specialists
Count on Crane for Pest Management Expertise Serving commercial property managers throughout the Greater Bay Area...since 1930 NPMA GreenPro Certified
415-922-1666 • 800-592-7777
10 President’s Message (Continued from page 2) Building Code Advocacy Saves $6 psf. Ours is the only commercial property association with a voting seat where decisions are made on building code changes. Throughout the 3-year cycle of the 2015 I-Codes, BOMA’s representation was central to saving the industry more than $6 psf in existing buildings, mostly in avoided new costs. BOMA Knowledge & Intelligence Increases Asset Performance. BOMA’s operating income and expense benchmarking tool, the Experience Exchange Report (EER), has three times more usable data than any comparable resource. It benchmarks energy costs, operating expenses, taxes and more, to maximize operating efficiency and smart asset management—and drive a more profitable bottom line. Property professionals have realized up to a 3% savings in operating costs by benchmarking to EER data.
How Does BOMA Increase Your ROI? Billions of Reasons to Take Notice
BOMA members contribute more to U.S. GDP than pharma or auto industry R&D annually. Through the 91 local associations in the United States and 17 affiliates around the world, BOMA International represents the owners and managers of all commercial properties. In the U.S., the 10.4 billion square feet of office buildings alone represented by BOMA members generated 1.8 million jobs; $227.6 billion in GDP; and supported 46.6 million office workers. With a mission to advance a vibrant commercial real estate industry through advocacy, influence and knowledge, BOMA is the business partner helping its members enhance NOI and asset values.
Industry Best Practices Net Higher Revenue
At least $1 per square foot BOMA is the recognized leader in developing high-performance programs that turn market-based best practice solutions into increased profitability. Take BOMA 360 Performance buildings as an example; they outperform the market in attracting and retaining tenants and generate higher net operating income. The numbers speak volumes: BOMA 360 buildings achieve $1.77 more per square foot in revenue according to the BOMA Experience Exchange Report (EER) than the average building in the Kingsley Index. BOMA 360 buildings achieve $1.04 more in revenue than the average LEED-certified building. BOMA 360 buildings receive higher tenant satisfaction scores in all 54 Kingsley quantitative rating areas including property management, leasing, maintenance, security and property features.
BOMA Sets the Standard for Property Measurement
Rentable square footage increases 2-3% For 100 years, BOMA has set the standard for measuring commercial buildings. In 1915, it published its first ANSIcertified standard for measuring office buildings. Today, the standards have evolved to include Industrial, Multi-Unit Residential, Retail and Mixed-Use, as well as Gross Area. By measuring a property to the BOMA standard, rentable square footage typically increases by 3%.
BOMA Fights Against Costly Code Changes
Saving the industry more than $6 per square foot BOMA International is the only CRE association with a voting seat at the table promoting and enforcing effective building codes. Throughout the three year development cycle of the 2015 I-Codes, BOMA’s representation was instrumental in saving the industry more than $6.00 per square foot for existing building, mostly in avoided costs.
Vital Industry Intelligence Increases Asset Performance
Operating cost efficiencies of 3% BOMA’s EER has three times more usable data than any other comparable source, providing benchmarking data on energy costs, operating expenses, taxes and more to drive a more profitable bottom line—underscoring an industry focus on maximizing building efficiency and smart asset management. Property professionals have experienced up to a 3% savings in operating costs as a result of increased operating efficiencies by benchmarking through the EER.
BOMA Involvement Increases Your ROI
The Numbers Tell the Story Consider the impact BOMA involvement makes on a typical 100,000 square foot office building charging $20.00 per rentable square foot with $7.50 per square foot in operating expenses and a cap rate of 8: $1/sq. ft. in revenue gained from implementing best practices from BOMA 360 = $100,000 2-3% gain in rentable square footage by correctly measuring to the BOMA standard = $50,850 10% of total captured savings of $6/sq. ft. through last building code cycle = $60,000 3% efficiency in operating costs through EER benchmarking = $22,500
Workforce Training Ensures an Efficiently Operated Building. BOMA’s topical seminars and professional Total potential property value increase of $2.9 million. certification classes ensure that those responsible for property operations have the Graphics courtesy of BOMA International. latest knowledge and best skill-sets to deliver the most cost-effective operating results. Via BOMA’s relationship with S. F. State’s Commercial Real About BOMA VIEWS Estate Certificate program, you can source the best new talent for your team… and audition them through a shortPublished quarterly by BOMA SF Associate Publisher: Tory Brubaker duration internship. It all adds up to outstanding value, from the front-line to your most senior people; from your personal career development needs to your corporate growth goals. BOMA is your best all-around resource. n
Editor: Henry Eason Ad and Art Director: Ellen Eason Eason Communications LLC Contact Ellen Eason at 415.596.9466 or firstname.lastname@example.org
11 CREATE Update (Continued from front page)
farm, and facility opermanage the vehicle pool that ations. At Brickman’s serves the building, enforce 550 Kearny building in bike room usage, liaise with the San Francisco, General special events team and other Manager Rita Hernandez special projects. At the departworked with intern Karen ment’s headquarters, Alejandro Chan, a recent graduate Pineda handled special projects of the SF State CRE such as a benchmarking study certificate program. and studying a solar farm on Chan was responsible for City land in Kern County. a project to utilize a “It was clear in our intervacant café space. She views and through our work researched food vendors, with us to date, that their updated license agreelearning experiences at SF State ments and got insurance really set the stage well for them Jake McQueen is shown at his workplace, Capital Building certificates. “We handed to succeed in our operation,” Maintenance, where he developed a customer outreach system. the project to her, and she Updike noted. showed resourcefulness in getting it done,” said Hernandez. Chan says her next step To learn more about CREATE, visit the new website is looking for a project management position. at www.createworkforce.org to find out how your At Capital Building Maintenance, intern Jake McQueen company can recruit talent, mentor those new to the furthered his skills with a customer service and budgeting industry, or contribute to this industry-wide effort. project. “Customers request budgets at this time of the year,” President Mary Brasher said. “Jake came on board and organized our approach.” “The internship has taught me a lot about how vendors and property management work together to accomplish tasks. I was able to meet with property managers, create and manage budgets, and make relationships and friends that to your building will help me as I pursue a career in CRE,” said McQueen about his experience with Capital Building Maintenance. He will continue to work there Thanks to these companies and part-time when organizations that hosted CREATE interns this summer: the school year resumes. City & County of San Francisco Director of Cushman & Wakefield Real Estate for the Brickman Management LLC City & County Colliers International of San Francisco, Port of San Francisco John Updike, hostCapital Building Maintenance ed two “fantastic Kilroy Realty interns.” In the Harsch Investment Properties City Hall Building Hines Services Division, Union Property Capital Konstantine Apostolopoulos LAZ Parking was assigned to
Fast Cloud Access No Data Caps Free Setup Local Support
12 BOMA San Francisco Upcoming Events
Reap Energy Savings with LED Rebate Program Fixtures & LED Linear Tubes Qualify for BOMA Program Incentives Advantages for Your Building w Major extra benefit for extraordinary payback w LED fixtures, retrofit kits, tubes, downlights and lamps included (flood lights, high bay and more) w Huge energy savings and maintenance benefits
To learn more, email email@example.com
Membership Luncheons September 15 • October 27 • November 17
Seminars September 14 – Managing the Whole Building Electrical Shutdown 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 Visit www.bomasf.org www.bomasf.org to to learn learn more. more.
Last Word (Continued from back page)
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. Beyond the property taxes paid by our members, the economic activity that office buildings generate for local municipalities, and the value of commerce generated by the tenants we house, our industry pays yet more into the San Francisco economy. If you’re developing an office building in San Francisco, you’ll pay a Transportation Sustainability Fee of $19.04 per gross square foot; a Jobs Housing Linkage Fee of $24.61 psf; a Downtown Park Fee (if building in the C-3 district) of $2.55 psf; a Child Care Fee of $1.57 psf; a School Impact Fee of $0.540 psf; a Public Art Fee of at least 1% of your gross 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.
Now, add in revenues generated for the city when a property sells. In San Francisco, property transfer taxes have generated in excess of $261 million in the last two years alone, according to 2014 and 2015 data from the Office of the Assessor-Recorder. 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. Of course, wise and effective spending of existing revenues (San Francisco has a 9.6 billion dollar budget!) is a good place to begin!
Marc Intermaggio, CAE, is Executive Vice President of BOMA San Francisco and Executive Director/CEO, BOMA San Francisco Foundation.
13 Back to School with BOMA (Continued from front page)
Upcoming Educational Events Seminar: Managing the Whole-Building Electrical Shutdown September 14 • 8:30 –11:00 AM w Learn to prepare for a complete electrical shutdown: preparing tenants and vendors, coordinating utilities, and executing the shutdown
Real Property Administrator (RPA) Classes Two Upcoming Classes: September 28–30 w Sharpen your skills in developing and managing environmental health and safety programs
October 26–28 w Improve your knowledge of the design, operation and maintenance of building systems
Emergency Preparedness Seminar October 18 w Acquire strategies for dealing with emergencies from industry experts, security personnel and representatives from the SF fire and police departments
Annual Codes Seminar November 10 w Get key updates on codes and regulations, from Title 24 to ADA to the City’s regulatory changes
Career Success Workshop: Mechanical Systems Part II (for Young Professionals) November 15
See the Events tab on the BOMA San Francisco website, www.bomasf.org, for complete event details and registration information. In addition to major seminars and workshops described above, BOMA’s many committees hold regular meetings that keep our members up to date on industry trends, government and political affairs, sustainability and more. In addition, since many of you are planning annual budgets for 2017, be sure to include attendance at next year’s BOMA International Annual Conference & Expo, scheduled for June 24-27 at The Music City Center in Nashville— sure to be a lively destination!
Electrical Expertise SFECA electrical contractors continually raise the standards of craftsmanship, safety, productivity, innovation and value.
Energy Efficiency State-of-the-Art Installations Project Design
Property Maintenance Energy Storage Renewable Energy
From bridges to buildings and everything in between
www.NCCRC.org Facebook.com/NCCRC Twitter.com/NCCRC
15 BOMA SF Goes to DC Many BOMA SF members, as well as BOMA staff, traveled to Washington, D.C. for the BOMA International Conference & Expo, which offered educational workshops, informative tradeshow displays and opportunities to network with industry peers.
Opening Night Party: Marc Intermaggio, BOMA San Francisco, Cushman & Wakefieldâ€™s Samantha Hoyle (BOMA International Southwest Region Convention scholarship winner), BOMA SF President John Combs and Able Services Sam Shapiro enjoy opening night reception along the banks of the Potomac River.
Sarah MacIntyre, Kilroy Realty, stands at the entrance to the conference.
Mark Your Calendar ...
ELMER JOHNSON GOLF CLASSIC Monday, September 19 The Peninsula Golf and Country Club 701 Madera Drive, San Mateo Not a golfer? Join us for cocktails & dinner. Details at www.bomasf.org (Events) or email nicolec@ boma.com. Select sponsorships still available.
BOMA San Francisco 233 Sansome Street, 8th Floor San Francisco, CA 94104-2134
Printed on recycled paper.
The Last Word: Marc Intermaggio
Behind the Numbers: The taxes, fees and economic activity generated by the office sector yield huge value for the communities in which we operate The numbers are huge! Assessed value of all San Francisco property is up 9 percent, reaching $208 billion this year according to San Francisco’s Office of the Assessor-Recorder. This is significant, as the taxes that property owners pay fund about one-third of the City’s General Fund, supporting public safety, health, social and neighborhood services among others. A significant portion of this value is represented by the office sector, and that means BOMA members! Besides the property taxes our members pay, consider the volume of economic activity generated by the businesses (a great many of them small businesses) and jobs housed within the buildings our members own and manage. That output is enormous, but our industry’s impact is even greater. In addition to hosting a majority of San Francisco’s workforce and the commerce it generates, our industry itself is a very significant contributor to the area’s economic engine. In 2015, our local office building industry contributed more than $4.5 billion to the state economy. We generated new taxable personal earnings in excess of $1.4 billion and supported nearly 34,000 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. (Continued on page 12)
SF Office Buildings' Impact in 2015
>$4.5 billion contributed to the state economy
>$1.4 billion generated in new taxble personal earnings
Nearly 34,000 jobs supported
Graph: Getty Images