BOMA Horizons Spring 2024

BOMA’s Superpower

President Nicole Price discusses BOMA’s superpower: resiliency. Learn more about our association’s strengths as well as the challenges we face. (See page 2.)

100 Candles for BOMA!

BOMA OEB is marking our 100th anniversary this year. We started the year strong with advocacy efforts, new leadership and events. (See page 6.)

BOMA Advocates in DC

BOMA OEB representatives advocated for CRE interests during this year’s Winter Business Meeting. Read the highlights and takeaways. (See pages 6 and 7.)

Meet New Board Members

Learn more about our newest board members: Maurice Callas, Ideal; Sawyer Norried, Cushman & Wakefield; and Candy Satcher, Transwestern. (See pages 10 and 11.)

Congratulations!

Our Outstanding 2024 TOBY Winners

The Outstanding Building of the Year (TOBY) awards for BOMA Oakland/East Bay recently honored two remarkable structures:

1111 Broadway

500K–1M SF Category Managed by Swift Partners

California Plaza

250K–500K SF Category Managed by Newmark

(Read about the winners on page 4.)

TOBY Winner: 1111 Broadway

TOBY Winner: California Plaza

President’s Corner

by Nicole Price

BOMA’s Superpower: Resiliency

As I thought about what to include in my first column as BOMA Oakland/East Bay President, I couldn’t help but feel overwhelmed at the many directions to go. For those that don’t know me, I will tell you my usual comfort zone is to err on the side of humor. While not always appropriate, levity is my method of survival. However, for this occasion, it would be a disservice not to expand on the matters which make me extremely proud and grateful to serve as this year’s president. My career in commercial real estate has been such an incredible ride, and BOMA has been a critical part of that story. It’s exciting to have the continued opportunity to pay it forward and give back to an association that has done so much for both my personal and professional journey.

We already know the 100 Year anniversary celebration is going to be great. BOMA OEB has more than proven itself to be capable of throwing an incredible event, and our members have proven their ability to have a good time. This is also a good opportunity to remind everyone of the BOMA OEB codes of conduct which are posted on the website (www.bomaoeb. org/files/Code_of_Business_Conduct_and_Ethics_ Policy_2022.pdf).

Reflections and Challenges

“Our association’s success couldn’t be more evident than through our collective survival. Whether we are facing an economic downturn or a pandemic, our continued resiliency carries us through the commotion of it all.”

Don’t worry, my goal of creating BOMA OEB’s first Broadway show, Buildings— The Musical, is still in the works!

I can’t go one step further without acknowledging our amazing executive director, Julie Taylor, and our current board of directors. Included in that acknowledgment is a special and loud shout-out to our powerhouse of women leading the executive committee this year. This group continues to impress, motivate and humble me. Working together and having the support of such intelligent and dynamic people are privileges I will never take lightly.

As if there wasn’t enough pressure, this year coincides with BOMA OEB’s 100 Year Anniversary and our very own Manny Moreno’s inauguration as incoming BOMA International Chair. I am beyond thrilled to share these amazing milestones with all of you.

Nevertheless, for me anniversaries and major milestones are almost always a catalyst for reflection. While in many ways the CRE world has been stagnant and slower to move with the world, we must acknowledge how far we have come as an organization and industry. Our association’s success couldn’t be more evident than through our collective survival. Whether we are facing an economic downturn or a pandemic, our continued resiliency carries us through the commotion of it all. Though seemingly underrated, resiliency is a superpower I would double down on every time.

The challenges came fiercely in 2023, leaving us grappling with the highest borrowing costs in over 15 years. Traditional banks retreated, their confidence shaken by rising vacancy rates and falling property values. Our local operators, who once leaned on these banks for financing, found themselves at a crossroads.

Furthermore, new and existing legislation continues to add strain on the industry. While I wish I could wake up with the magical solution (newsflash—it’s not just amenities folks), I take comfort in BOMA OEB and the strength of our members. As we continue to face challenges (and wins!), I encourage our BOMA OEB community to work together, foster innovation, and continue to harness the superpower of our resiliency. Cheers to another hundred years!

With Appreciation to Our 2024 Partners

Platinum Partners

Allied Universal

Gidel & Kocal Construction Company

Kastle Systems

Legacy Mechanical & Energy Services

Gold Partners

ABM

Century Commercial Services

Metcon TI

ProGuard Security Services

Silver Partners

CBRE

Gachina Landscape Management

Metro Services Group

Rubicon Point Partners

SavATree

WCI-GC

Bronze Partners

Ideal Restoration Inc.

Newmark

Northern California NECA

Petalon Landscape Management

PJMB Commercial, Inc.

Restoration Management Company

For Partnership opportunities, contact Julie Taylor at julie@bomaoeb.org.

In addition to Partnerships, there are also opportunities to sponsor events.

Clifford R. Horner

Brendan J. Dooley w Paymon P. Hifai

Daniel S. Boord w Patrick J. Sullivan

Horner Law Group, PC specializes in business and real estate litigation and represents a diverse client group in all aspects of disputes involving the development, ownership, operation, management, leasing, construction, finance and purchase and sale of real estate and all types of contractual, partnership, ownership and other related business disputes and issues.

As a preeminent real estate and business litigation “boutique” firm, we offer the highest level of exceptional and personally tailored client service, experience and superior work product that is on par with the national law firms with a very competitive rate structure. Many of our attorneys have more than 25 years of experience, and attorneys working on our clients’ matters possess an aggressive style tempered by common sense and sharp business intuition. Our goal is to meet each client’s individual objectives, which makes us ideal problem-solvers even in the most challenging and complex cases.

800 S. Broadway, Suite 200 w Walnut Creek, CA 94596 925.943.6570 w www.hornerlawgroup.com

About BOMA Horizons

To advertise, contact: Ellen Eason at

TOBY Awards (Continued from page 1)

The prestigious TOBY awards recognize excellence and distinction in building management and operations.

“Both 1111 Broadway and California Plaza have demonstrated exceptional standards in property management, sustainability, tenant relations, and community impact,” says BOMA OEB TOBY Chair Kelly Lynch, Overton Moore Properties.

“As they advance to the Pacific Southwest Regional competition, we extend our heartfelt wishes for their success. With luck, they’ll emerge victorious and represent our region proudly at the BOMA International Conference in July in Philadelphia during the TOBY Awards Gala. Let’s rally behind them as they continue to showcase excellence in property management and set a standard for the industry.” Read on to learn about some of the winning teams’ secrets for success!

1111 Broadway • 500K–1M SF Category Winner • Managed by Swift Partners

It was a repeat performance for 1111 Broadway, as the team claimed a TOBY victory for the second year in a row in the 500K–1 million square foot category.

Soaring above Oakland’s central business district, the sleek 25-story tower first welcomed tenants in 1990. Since then it has continued to enhance its tenant amenities and on-site services. 1111 Broadway’s prime location offers access to transit, shopping, dining and business services at City Center, Jack London Square, Old Oakland and Chinatown.

The building offers a welcoming community feel. The spacious light-filled lobby features varied seating areas for tenants to enjoy a change of scenery or to collaborate with colleagues and visitors. The property’s Zen garden is yet another common space for relaxation and contemplation.

To ensure that its tenants had convenient food and beverage choices, building management brought in two purveyors: Highwire Coffee Roasters and the Pan-American restaurant, Bocanova. “As more of our tenants return to the office, these have been a welcome addition to our community,” says Kristin Lee, General Manager at the property.

“Since clinching our TOBY win last year, our commitment to excellence has only intensified as we meticulously prepared for this year’s submission,”says Lee. “We implemented a rigorous schedule of frequent team meetings, where we dissected each section with laser focus, refining the minutiae of every requirement.”

“The invaluable guidance from industry stalwarts Cortney Shadel and Kelly Lynch has been instrumental in elevating our preparations,” Lee adds. “Their seasoned advice and insights have proven invaluable in fine-tuning every detail.”

Despite staffing changes in 2023, the arrival of a new chief engineer injected fresh perspectives, particularly in

pivotal areas like HVAC and FLS (Fire, Life, Safety), energizing the team’s approach and enriching their strategies.

In addition to the team’s in-person interaction with tenants, the 1111 Broadway App keeps tenants connected around the clock, informing them about tenant events, service announcements and any issues that arise. “Going above and beyond in providing service has helped us build trust and bonds with our tenants as well as vendors and staff,” Lee says.

Winning team: Britt Kortan, Jacqueline Jackson, Elyse Cartmell, and Kristin Lee

California Plaza is a premier Class A office building just steps away from the Walnut Creek BART Station and within walking distance of many restaurants, banks, hotels, Broadway Plaza and downtown shopping.

The California Plaza (“Cal Plaza”) team strives for the best in every aspect of managing and running the building.

“As a LEED Gold building, we are constantly implementing energy efficiency measures, and our Fitwel certification proves that we have a healthy work environment,” says Portfolio Manager Liz Despins. “Professionally managed and leased by Newmark, the policies and procedures in place ensure that Cal Plaza is an exceptional building to occupy.”

Learning opportunities such as whiskey and wine tastings, Irish dancing lessons, and self defense classes are offered for free to tenants. Gone are the days of one big tenant event — the team holds multiple tenant events and contests on a monthly basis.

The TOBY award process was a true team effort. “Our entire team, including management, engineering, janitorial, security and parking, all have so much pride in our building,” says Despins. “Everyone was involved in data gathering and providing details on the services they perform so that the management team can write a submission that make the judges feel like they are walking through our building.”

This was the first time the team entered the TOBY competition. “Our Tenant Experience program, along with our already exceptional and well-managed building, made it obvious that we were ready to compete for the TOBY!” adds Despins.

The robust Tenant Experience Program creates a work environment that makes tenants’ employees want to come into the office by feeling like they are part of a community. “We provide opportunities for those working at Cal Plaza to get involved by joining in clubs, assisting with our tenant garden, attending workshops on our bee program and participate in blood drives,” Despins says.

“We create a work/life balance by providing ways for tenants to include their families in our building community, such as our on-site dog park and car detailing, as well as our annual Bring Your Kids to Work Day and our Friends and Family Magic Show,” she continues. “Our wellness program provides self-improvement opportunities, beyond just an on-site fitness center. We hold weekly yoga sessions, wellness challenges, delivery of healthy food boxes, on-site massage and a Zen garden.”

Team members above: Josh Olson, Tom McSweeney, Ray Acosta, Liz Marigold, Ann Lobo, Liz Despins, JoAnne Spear, Tereza Benitez, Lahouari Benaouda, Luis Avalos, and Ro Newson.

California Plaza • 250K–500K SF Category Winner • Managed by Newmark

BOMA OEB Starts Off Centennial Year Strong

By Julie Taylor, CAE, Executive Director, BOMA Oakland/East Bay

Happy 100th Anniversary BOMA Oakland/East Bay!

One hundred years have flown by, just like this year. It’s already March, and we’ve held sold-out three educational events, started up the 2024 Leadership Academy and held our board and workgroup leader orientations. If you missed these events, be sure to check the Online Learning page for the slide decks. Thank you to our workgroup leaders who have been busy planning events to keep you connected while you grow and learn.

Welcome to our 2024 Board of Directors, led by President Nicole Price, Director for Cushman & Wakefield. We are excited to have five new board members. Welcome to Maurice Calles, Ideal, Inc.; Jennifer Bartolomei, PJMB Commercial; Sawyer Norried, Cushman & Wakefield; Candy Satcher, Transwestern; and Samantha Stires (Treasurer), DIVCO West. We’re thrilled to have them join our other officers and board members: Lucinda Alipio (Vice President), KGIP; Liz Despins (Immediate Past President), Newmark; Toby Ludwick, CBRE; Jeannie Nyberg, American Asphalt; Seth Wilson, Metcon TI; and Michelle Lane, CBRE. The board is working on our 100th Anniversary Celebration and evaluating a new peer mentoring program. Watch for news on both in the coming issues of Horizons

discussed included small business loan enhancement levels and workforce development resources and 529 account funding.

We also participated in meetings with fellow industry leaders from across the country on the topics of DEI, energy reduction, workforce development and building recognition programs. As the current BAE Council Chair, I facilitated three sessions of the BOMA Association Executive (BAE) Council and presented at the Board of Governors meeting. Congratulations to Liz Despins, Immediate Past President, for her acceptance into the BOMA Daniel W. Chancey Leadership Academy. The Winter Business Meeting is a great way to learn more about BOMA and the issues that face the industry. Next year’s WBM will be held in Palm Desert, California, on January 22-25. Be sure to mark your calendar. We’ve got even more coming your way. The Walter Finch Spring Golf tournament will be held at Callippe Preserve on May 2. Be sure to sign up fast, as the event sold out in four days last year. There will be five more Backpack to Briefcase sessions this year. These sessions provide professional development to our emerging professionals to support their career growth. Our luncheons will be covering electrification, revenue generating leases/pops ups, Bid BOMA, Diversity, Equity & Inclusion, engineer recognition and building codes, and our annual government affairs update.

In addition to our own events, we represented our region at the BOMA International Winter Business Meeting and Conference in Washington, DC. Nicole Price, Lucinda Alipio, Liz Despins, Manny Moreno and I were on Capitol Hill meeting with members of Congress. We met with Representative Eric Swalwell, Representative Barbara Lee’s staff and Representative Josh Harder to discuss important issues related to the local commercial real estate industry affecting all OEB members. Topics

Thank you for your membership and participation in BOMA! Without members like you, we wouldn’t be celebrating our 100th anniversary. You have lots of choices about where you spend your time and funds. We sincerely thank you for making BOMA Oakland/ East Bay one of them. If there’s anything we can do to support your building, yourself and your staff, please let me know.

Continue to Engage

BOMA OEB representatives lobbied for CRE interests: Liz Despins, Lucinda Alipio, Rep. Eric Swalwell, Manny Moreno, Julie Taylor, and Nicole Price.

Reflections on the Winter Business Meeting

By Lucinda Alipio, RPA®, Vice President, BOMA Oakland/East Bay

This was my first Winter Business Meeting (WBM) since joining BOMA, and it did not disappoint. International conferences are an amazing way to really connect with your peers. While at the WBM, I had a chance to meet with the other California locals and get a sense of what each of our markets’ challenges are throughout our state. Then getting to attend the Pacific Southwest regional breakfast and meeting locals in our four states was a remarkable experience on its own. At an even more impressive level, I was able to attend the Board of Governors meeting and see all of BOMA International’s 85 locals represented in one place.

The open meetings were a great feature as well. As a personal cheerleader of the RPA program, I was able to attend a meeting to learn more about the new vision BOMA International and BOMI have toward getting members their credentials. I came away with a renewed interest in continuing my CRE education.

A major highlight of the WBM was getting a chance to visit Capitol Hill to encourage support for bills that would significantly help our industry. I must admit that advocacy was not at the top of my list when joining the commercial real estate industry almost 12 years ago. But after attending the WBM, I have a better understanding of the role it plays in my work and the value it can bring to our clients. I look forward to experiencing more Winter Business Meetings as I continue a successful career in property management.

Lucinda Alipio and Manny Moreno.

Meet the Additions to the BOMA Board of Directors...

Maurice Calles, Client Solutions

With a depth of sales and management experience and community involvement, Maurice Calles is a valuable addition to the board. He has actively participated in the BOMA OEB Marketing Workgroup and BOMA San Francisco’s Emerging Professionals and Events & Education committees. “These engagements taught me the value of teamwork and utilizing diverse skill sets, contributing to the overall improvement of the organization,” he says. “If you want to strengthen your network and acquire

Ideal Restoration Inc.

skills within the commercial real estate sector, joining BOMA is an ideal avenue to achieve those goals.”

“My journey into sales within the building sector began with an opportunity at Ideal. After a few years in the industry and establishing solid relationships, I am confident this is where I truly belong,” Maurice says.

In his position at Ideal, he focuses on establishing and nurturing strong relationships with building owners and managers. “I am dedicated to being readily available in emergency situations and ensuring that the restoration process unfolds as seamlessly as possible. At Ideal, we understand that the relationship starts before the emergency happens,” he adds. “We are dedicated to serving the needs of commercial building owners and managers with reliable, innovative, and client-focused solutions.”

Off hours, Maurice enjoys snowboarding golfing, taking his daughter swimming and attending concerts with his fiancée.

Prior to joining the BOMA board, leading the BOMA OEB Marketing Workgroup was a tremendously rewarding experience for Sawyer Norried. “I was able to work with so many different people on a mix of projects to promote BOMA both inside the organization and out,” she says. “A leader is only as good as the team, and I had the best team! It was truly a collaborative experience, and I am so grateful for all the connections I made. BOMA is an incredible organization and I am so happy to be a part of it. Happy100th BOMA OEB!”

Sawyer oversees a portfolio of Class A and B office buildings for Cushman & Wakefield in the East Bay. She is responsible for day-to-day operations, financial reporting, budgets, cam reconciliation, tenant/vendor management, and anything else that may come up during the day. “The structured chaos is what makes the job so fun!” she remarks.

Sawyer says she fell into her career in CRE serendipitously. “Having already obtained my real estate license, I was still uncertain of what career I wanted to pursue. I was put in contact with another property manager through mutual connections, and she was kind enough to grab a coffee and give me an overview of the industry. I was immediately interested and began the process of applying for administrator roles. I landed my first CRE job with Harvest Properties and I have been hooked ever since!”

During her leisure time, Sawyer stays busy: “I am a sucker for anything social: day trips, movie nights, shopping, light hiking, you name it. Last year I also took up golf! If I have a free evening during the week, I have been known to show up unannounced to my parents to see what they’re having for dinner.”

Manager,

Sawyer Norried, Property Manager, Cushman & Wakefield

Meet New Board Members

(Continued from page 10)

Candy Satcher, Senior Property Manager, Transwestern

Before joining the BOMA board, Transwestern Senior Manager Candy Satcher enjoyed learning from a number of BOMA seminars throughout her career. “Some of the most valuable have been understanding certificates of insurance, understanding commercial rent tax laws, and thinking like an asset manager,” she says.

Candy oversees Uptown Station in Oakland which is home to mobile payment leader, Square. Her real estate career started in college when she worked as a receptionist for a local real estate developer. “That experience was a stepping stone into commercial property management,” she observes. “I have

been very fortunate and credit having amazing managers who are passionate about what they do. They have supported the growth in my career and have been an inspiration for the passion that I have for commercial real estate.”

She adds: “Things have changed a lot since I first started! I used to take calls and write work orders on carbon copy forms. Changes are always imminent and BOMA has helped me keep up with new industry standards and best practices. Hearing others ask questions in seminars, and hearing feedback from other property managers in workgroups is reassuring that we all face the same challenges and are looking to be successful in an ever-changing landscape. BOMA and its members are an excellent resource.”

Outside work, Candy enjoys dog-friendly activities, so her hobbies are mostly outdoors. “Ten years ago, we adopted a very rambunctious German Shepherd puppy and to keep up with his energy, our lifestyle changed for the better. We hike, we camp, and during the pandemic we took up paddleboarding. My dog loves paddleboarding. Who knew that was a thing?”

CRE Market Update Offers Perspectives and Observations on Different Sectors

BOMA members gathered for the first luncheon of 2024 to hear a knowledgeable panel offer their insights into the state of four market segments: office, industrial, biotech and retail. With economic changes, we also added an update on commercial lending by Don Marek, Fremont Bank.

In case you missed it, or to review and share information with your team, see slide decks in the Online Learning Center on our website. Some program highlights:

CRE Credit Market and Interest Rates

A lookback at 2023 showed that it was a banner year for equities, and unemployment held at 3.7%. CRE delinquencies are increasing, and credit is still tight. Banks are enhancing their credit review and analysis. Look for hot spots. Multifamily and industrial are seen to be lower risk, while office and retail are higher risk in most Northern California markets. A slide in Marek’s presentation shows an example of optimizing and rationalizing a portfolio.

Commercial Office Market Developments

According to the presentation by Chad Arnold, Colliers International, office market rental rates have remained relatively flat despite vacancy rates increasing and tenant demand

waning. Rental rates have remained stable due to higher inflation, more generous leasing concessions (TIs, free rent), a flight to quality, and a preference for direct space.

Some factors that could cause rental rates to drop in 2024 include: higher construction costs, rising interest rates, high-end fully furnished subleases at steep discounts, landlords may have difficulty financing TIs and fees, loans maturing, landlords may not see the benefit in providing big concessions to maintain higher rates, and decreased pricing in the capital markets.

Retail Sector Trends

A continued slow return to offices steers tenants away from central business districts, with downtowns seeing 30-35% occupancy in the daytime population, according to the presentation by Nadine Whisnant, Goldman Limited. Tenants have more awareness than ever of capital and occupancy costs. There is a quicker return on capital and positive cash flow. Leasing is king: due to the cost of capital and lack of availability, there is a severe reduction in sales. And due to increased cap rates (decreased valuation), sellers are holding property. Ways to support leasing efforts include: enhanced security and careful preparation of spaces for leasing.

(Continued on page 15)

Above: Chad Arnold, Colliers International; Don Marek, Fremont Bank; Nicole Price, BOMA OEB President; Bob Ferraro, CBRE; Nadine Whisnant, Goldman Limited; and Peter Conte, Transwestern.

CRE Market (Continued from page 14)

Economic flexibility and understanding are key. Measures may include flexible terms, increasing TI allowances, and offering incentives to brokers.

Trends in the Industrial Sector

Statistics from CBRE show that industrial construction starts declined in 2023, but were forecast to increase in 2024. Fueling this sector is the continued growth and strength of e-commerce as a percent of total retail sales.

Building Skills Partnership Benefits BOMA Members’ Employees

BOMA is proud to support the Building Skills Partnership (BSP). Our holiday party toy drive benefited this nonprofit which improves the lives of property service (janitors, security officers, maintenance and custodial workers, stadium, arena and airport workers) and their families. BSP offers educational programs that enable workers and their families’ personal and professional success. Courses such as digital literacy, financial literacy, ESL, infectious disease certification, and green janitor education are free to most commercial building sites. BOMA members are encouraged to connect to the organization. Email scain@buildingskills.org for more information. Above: a BSP class celebrates its graduation.

Luncheon guests: Ally Fitzmaurice, Harvest Properties; Bryan Thomas, Gachina Landscape Management; and Karen Cowan, Restoration Management Company.

BOMA Oakland/East Bay

436 14th Street, Suite 1216

Oakland, CA 94612

510.893.8780

www.bomaoeb.org

April 4 – BOMA OEB Gives Back: Food Bank

April 11 – Luncheon: Revenue Generating Leases & Pop-Ups

April 25 – Backpack to Briefcase: Fire Life Safety

May 2 – Walter Finch Spring Golf Tournament and Reception (Note: there is an option to attend only the Reception)

May 13-16 – 2024 Medical Real Estate Conference

June 6 – Backpack to Briefcase: Real Estate License/CE

June 13 – Luncheon: Bid BOMA

July 13-16 – BOMA International Conference & Expo in Philadelphia