BOMA Conference: Inspiration, Involvement and Idea-Sharing BOMA CAL & You BOMA California is advocating for our industry’s interests in Sacramento during this busy legislative season. (See page 2.)
BOMA Member Profiles Get to know principal member, Marc Barkdull, PJMB Commercial, and associate member, Tim Morse, Battalion One. (See pages 4 and 5.)
Gear Up for TOBY and OMY Awards Competition Start preparing now to enter your building and your members in the annual BOMA awards. (See page 11.)
Annual Engineers Appreciation Luncheon At the August luncheon, BOMA OEB recognized our building engineers. (See page 15.)
The BOMA International Pacific Southwest Region, was also Conference & Expo is where BOMA selected as co-vice chair of the BOMA members go to keep informed about PAC Council for BOMA International. industry trends, network with their Visiting another city affords the commercial real estate peers and learn chance to tour distinctive buildings. about product and service innovations. Moreno participated in building tours This year’s of the Tobin conference in Center for San Antonio Performing in June, Arts and attended by Pearl a contingent Brewery. from BOMA “The was OEB, offered the first time ample I’ve taken a opportubuilding tour nities for at the conferexchanging ence and will ideas, nettry to do it working and every time in involvement the future,” beyond the he said. “It Opening keynote session with Jenna and Barbara Bush. local level. was great to see such a world-class performing arts BOMA OEB Members Share center with multiple venues under one Conference Highlights roof. Also, the Pearl Brewery is a rede“The keynote session with the Bush veloped former brewery that is a mix twins (Presidential daughters Jenna and of residential housing, retail shops and Barbara) was amazing,” said Manny restaurants, office space and a hotel. Moreno, Property Manager for Next Definitely a must-see for anyone Play Consulting. “I definitely walked visiting San Antonio.” away with a different perspective on Ryan Rusler, Vice President of them and their family. That session Business Development for HARBRO was one with lots of laughter and a Emergency Services & Restoration, few tears.” enjoyed several educational sessions. Moreno, who conducted his first Some of the takeaways from regional meeting as president of the “The Art of Creating Successful Deals,” (Continued on page 12)
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BOMA California and You...
Thanks to Our 2018 Partners Diamond Partner
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As a BOMA Oakland/East Bay member, you’re part of a much larger network of organizations. One of these is BOMA California, which serves as our legislative/regulatory advocate. They are there to ensure that the commercial real estate industry’s voice is heard and is at the table when legislative and regulatory discussions are happening. The activity in Sacramento has been busy this legislative season. Highlighted below are three areas to keep an eye on.
Commercial Tax Lawsuit In conjunction with the Howard Jarvis Taxpayers Association (HJTA), BOMA California, CBPA, and the California Business Roundtable have filed suit in the Superior Court in San Francisco challenging the city’s special tax on commercial property (Proposition C, which passed in June 2018), which is an illegal and punitive gross receipts levy which will reduce commercial property values in San Francisco by up to 12%. Our lawsuit asserts that because the tax is expressly for a special purpose, it required a two-thirds vote of the city’s electorate under Propositions 13 and 218. But it did not pass by that margin. Rather, the tax proposal, designated as Measure C, received a scant 50.87% of the vote. The basis for the lawsuit is that the California Constitution clearly holds that special taxes at the local level have required a two-thirds vote of the electorate as mandated by Propositions 13 and 218.
OEHHA Updates to Proposition 65 The Office of Environmental Health Hazard Assessment’s (OEHHA) recent update to the Proposition 65 warning regulations take effect on
Silver Partners All Seasons Roofing & Waterproofing, Inc. American Asphalt Arborwell BSM Facilities Services Group CBRE First Security Services Legacy Mechanical & Energy McNevin Bay Area Cleaning Specialists Securitas Principal Partners CIM Group Cushman & Wakefield Next Play Consulting PJMB Commercial RiverRock Real Estate Group For Partnership opportunities, contact Julie Taylor at julie@bomaoeb.org.
August 30 of this year. The new warning regulations substantially change what warnings must say and how they must be presented to the public or consumers. A section of the new regulations provides guidance for the very type of warnings that would need to be provided at the entrance of commercial buildings, including warnings that must specify the chemical for which the warning is being provided. The regulations also speak to other type of exposure (Continued next page)
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BOMA California and You
(Continued from previous page)
scenarios that may be relevant for commercial buildings, including food warnings, parking lot warnings, and others. BOMA California recently held a Proposition 65 webinar. With more than 330 BOMA members on the webinar, it is apparent that our industry is doing its due diligence to understand the law and comply. The webinar, and the ongoing efforts in Sacramento to engage in advocacy, legislative, and regulatory proceedings on your behalf, are funded through the small portion of your BOMA dues ($10/month) that support BOMA California. BOMA Cal’s legal partner in this presentation was Anthony Samson with the firm Arnold & Porter. If you need assistance with Prop. 65, feel free to call or email Anthony at Anthony.Samson@arnoldporter.com (the call is free, however the legal advice is not!).
Sponsored Bill Signed Into Law: AB 2173 Sponsored by BOMA California and signed into law by Governor Brown in July, this bill updates the state’s commercial abandoned property laws by increasing the threshold amount needed to trigger an official disposition
(auction) process. The new threshold is now $2,500 or an amount equal to one month’s rent for the premises the tenant occupied, whichever is greater. Under current law, a commercial property owner/ manager is obligated to go through an expensive public notification and auction when a business moves out and leaves behind unwanted items, believed to be worth $750 or more in value or the equivalent of $1 per square foot of the rental for the property, whichever is less. If a company moves out of a leased space and purposefully abandons property (i.e. old shelving, a few desks and chairs, or obsolete computer equipment) that low threshold is very easily met and triggers an expensive auction process for a relatively small amount of money on items that were unwanted to begin with. Due to AB 2173, state law now better reflects the practical realities in the commercial real estate industry by setting a new commercial threshold. This proposed new threshold amount more appropriately aligns with the actual costs of storage and disposal of abandoned property in commercial real estate.
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Principal Profile
Marc Barkdull, President, PJMB Commercial
Managing a portfolio of 1.2 million square feet of commercial property requires PJMB Commercial President Marc Barkdull to wear many hats. “On a typical day I might be negotiating leases, overseeing tenant improvement construction, looking for new acquisition opportunities or analyzing existing property financials in order to maximize return,” he says. “However, my favorite thing to do is walk the properties to meet and talk to the tenants and learn about their businesses.” “My most important duty is as CFO... chief fun officer. Work needs to be fun and we pride ourselves on being a great place to work,” Barkdull adds. “We have company outings, barbecues and competitions. Barkdull enjoys Our wing-eating contest is legendary. Employees have access to season tickets to the Warriors, Giants, tropical vacations. A’s, Sharks and Shoreline concert series. We work hard and play harder!” PJMB Commercial caters to small businesses and start-up companies. “I am proud that several companies that have started in our buildings have grown and become major players in their industries,” notes Barkdull. As the commercial real estate industry consolidates, “I can do deals quickly because I am the only decision-maker. A small business or start-up doesn’t want to jump through the hoops and the time that a large institution takes to make a decision. I can negotiate the terms, the improvements, even the color of the walls while sitting in front of a prospective tenant, and we can have them in a space quickly and without a lot of fuss.” While in college at the University of Utah, Barkdull worked part-time for a large commercial brokerage house and after graduating went to work at Marcus and Millichap in Palo Alto. He soon realized he wanted to be on the ownership side instead of the brokerage side and teamed up with his father-in-law to form PJMB Commercial in 1994. At BOMA OEB, Barkdull serves on the board and is next year’s president. He also served on the Advocacy Committee for several years and participated in visits to Washington, DC and Sacramento to speak with our representatives. Outside the office, Barkdull enjoys the sporting life: “I am a huge Warriors fan and have been a season ticket holder since 1994. I love to ski, golf, scuba dive and hike. I have four active boys, and we like to ride dirt bikes and fish at our cabin and waterski on the Delta. The whole family is certified to scuba dive and we enjoy vacationing in Hawaii and Mexico. Every year we try to participate in humanitarian projects as a family and have had fantastic experiences in Brazil, Fiji, Samoa, Mexico and locally.”
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Associate Profile
Tim Morse, Account Manager Battalion One Fire Protection
“Every day is different, which is part of what excites me,” says Tim Morse, Account Manager for Battalion One Fire Protection. “I may start the day in Oakland walking an apartment building (even drawing it) to provision a new building fire alarm that the City has mandated, then go into the office, then go to a fascinating BOMA meeting, then go to Pleasanton to assess someone’s sprinkler system.” Battalion One is one of the only 100% full-service fire-life safety companies in Northern California. “We’re very serious about protecting lives and helping assets continue to perform, especially in regards to sprinkler systems, When maintained properly, these systems will last a long time. If neglected, they’ll ultimately cause water damage at some point and buildings suffer. We work hard to find problems early before they get worse,” explains Morse. Morse sings with the Lucid Rays. When asked if there are any new fire safety regulations or code changes for commercial buildings, Morse notes that other than R1/R2 occupancies, there aren’t any significant changes on the state and national level, though the next cycle (2019) will bring some small ones. More immediate are updated ordinances in San Francisco and Oakland, but Morse says these center almost entirely on residential buildings (apartments, condos and hotels). Morse lends his expertise to two BOMA OEB committees: Codes and Conformance and Emergency Preparedness. “I find it extremely helpful and rewarding to participate in these, and I do get to rub shoulders with principal members who ultimately are my target customers,” he adds. During his leisure time, Morse says he “enjoys sports (adult co-ed softball, tennis, golf and watching the Warriors, Giants, A’s, 49ers and Raiders). I don’t discriminate on my love for Bay Area teams!” He also sings in a band called Lucid Rays, which has produced two CDs and plays originals and covers in and around the Bay Area. Check them out at www.lucid-rays.com.
6 BOMA International 2018 & BOMA OEB Updates By Julie Taylor, CAE, Executive Director, BOMA Oakland/East Bay Every year our international organization holds a conference to bring together all the latest information, resources on CRE to educate the personnel in the field. I’ve attended for the past two years and find myself learning more and more each year. BOMA International is a federation made up of all the locals, including BOMA Oakland/ East Bay. Your BOMA OEB membership provides your building/organization access to the resources as a member. This year the conference was held in San Antonio, Texas. BOMA OEB was well represented with board
members, committee leaders and past officers. (See photo next page.) Our members participated in committee meetings, leadership trainings and technical sessions. At the Board of Governors’ meeting, we heard a presentation of findings from a yearlong BOMA/BOMI collaboration. Over the past year both organizations have done a Property Manager Job Task Analysis research. They hired an outside party firm (they call them psychometricians) to do this job task analysis that delved into all aspects of the Property Manager position. They presented their process and a visual summary of the work. (See graphic below.) This summary includes the body of knowledge built around building operations, internal and external building (Continued next page)
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Locate Fire Emergency Services Locations and Contact Information Stay Updated on Wind and Weather Patterns Affecting Fires Monitor Air Quality and Avoid Outdoor Activity Check with Officials Before Returning to Fire Affected Property Assess Your Property for Hot Spots and Smoldering Vegitation Ventilate Your Property to Clear Smoke from Structures Contact 911 if You Perceive Any Danger Upon Returning to Your Property
HARBRO Fire Loss & Clean-Up: Wild fires can be especially devastating for home and business owners. Facing the after effects and property damage from fire, smoke and the flood waters from fire fighting efforts can seem overwhelming. HARBRO professionals are dedicated to quickly restoring your property to pre-fire condition.
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(Continued from previous page)
relationships, and the from dozens of sleeves business of buildings with of BOMA golf balls. sustainability as its foundaThe Government Affairs tion. This work will be Committee is planning used to develop education another event at the upcomcontent and upgrading for ing Innovation Showcase the BOMI certifications. on September 6th at 21st I have to say, I was very Amendment. At BOMA excited to see this work! International it was great to In my prior organization see many of members and we did these job task leaders donating to the BOMA analyses for all our certiPAC. Over $15,500 was fications every 3–5 years. raised at the conference for This analysis provides the the great work the PAC does knowledge, skills and in Washington! BOMA OEB team at the TOBY awards banquet. abilities for positions and In this issue, we’ve asked is critical to meeting our member’s needs for staffing and a few of our members who attended the conference to education. I’ll be attending the BAE meeting in October share their observations. Be sure to check them out for a and hope to learn more. different view of the event. It’s budget time so be sure to At our Walter Finch Golf Tournament we did our first budget for the 2019 BOMA Conference in Salt Lake City fundraiser for the BOMA PAC. We raised over $1,450 next June.
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Is Your Building TOBY Ready? Fall is the time from 10-11:30 a.m. at 555 12th Street, Suite 1400, Oakland. to start preparing To register, visit the Events page at www.bomaoeb.org. your building’s Although the Annual Awards Gala is a joint event 2019 BOMA OEB Local Winner submission for with BOMA San Francisco, both BOMA OEB and a TOBY (The BOMA San Francisco issue TOBY awards at the local Outstanding Building of the Year) Award—and the BOMA level. (The BOMA OEB competition encompasses Bay Area Awards Committee is here to help you shape your Oakland and the greater East Bay, while the BOMA entry, starting with a BOMA OEB TOBY Workshop on San Francisco awards are open to buildings in San September 18 that will offer an in-depth look into entering Francisco, San Mateo and Marin counties.) the contest. Bay Area TOBY winners then advance to the Pacific Bay Area BOMA TOBY winners will be announced at Southwest Region to compete for the honor of moving on the BOMA Bay Area Annual Awards Gala on February 21, to the international competition, with winners announced 2019, a joint event with BOMA San Francisco. BOMA at the BOMA International Conference next June. The Outstanding OEB will host the 2019 Building of the Year Gala (location to be “TOBY ” Awards were determined). developed in 1985 by “We want to help BOMA International our members present their to honor and recognize buildings and managequality in office building ment teams in the best operations and award possible light and be posiexcellence in buildings tioned to win at the local, management. regional and ultimately In addition to the international levels,” says TOBY Awards competiLucinda Alipio, who chairs tion, OMY (Outstanding the Awards Committee. Members of the Year) “We will be coaching Awards for both Bay property managers on the Area BOMAs are written submission, which announced at the Gala. BOMA members celebrate at a past Awards Gala. will now count for 50% (Photo: Olivia Smartt Photography) Awards are given for assoof the score, as well as the ciate, principal and engineer members. “These awards are a physical tour of their buildings.” great way to recognize members who contribute to BOMA During the September seminar, former committee chairs and our industry,” adds Alipio. See the box below for and others who have judged past TOBY entries will offer important deadlines for the TOBY and OMY contests. advice on crafting a submission. Here are some important topics on the road to the TOBYs which will be covered: Important Competition Dates u Registering your building. u Picking the best category that works for your building Sept. 4 – Registration opens for or project. entering your building for TOBY u Gathering all of the information you need to submit Oct. 11 – OMY OEB registration opens for the competition and plan your building tour. u Knowing who to contact about your questions. Oct. 31 – TOBY registration closes u Learning how the TOBY competition can benefit you Nov. 30 – TOBY online submissions due and your ownership. Dec. 31 – OMY registration closes The free September 18 TOBY OEB Workshop will be held ®
12 BOMA Conference
(Continued from front page)
presented by Tom Gille, Principal of San Francisco–based Real Systems include: w BATNA – Best Alternative to Negotiated Agreement. Have a back-up plan when making a deal w Only a fool goes into a meeting or negotiation without a plan w Create a relationship, not a deal w Play devil’s advocate in preparing for your meeting w Don’t give major concessions early w Don’t give anything without getting something in return w Know historical data similar to the deal being discussed w Know the other side and what you believe they want from the deal w Always go first. Rusler also enjoyed the “Yes And Culture” session. “This was an improv class that taught you how to be a leader and create a ‘Yes And’ culture,” said Rusler. “The key to improv is to say ‘Yes And’ to your partner and not shut their ideas down. Another rule is to build on their ideas and not reshape their idea into your idea. Great improvers focus on everyone but themselves. Much like great leaders.” Other main skills in improv (and in work) are: say “yes”— be open to ideas, listen and be present (eye contact and body language), make your partner look good (this is not about you), embrace change and failure, and be positive.
Panel Focuses on Recruiting Engineers It was a standing-room-only crowd for “Recruiting the Next Generation of Building Engineers,” a panel moderated by Able Services President Mark Kelly. The panel included Gabriel Eckert, executive director of BOMA Georgia; Lubie Martin, regional director of operations at Columbia Property Trust; and Dawn R. Short, senior HR business partner at Able Services. Kelly noted that commercial and corporate real estate professionals need to focus on how we are going to recruit. Some strategies: “Brand your company as a great place to work,” he added. “Your brand will attract the next generation. Make your company more of a family, more of a home.” Also, encourage your staff to tap into their networks and reward them. Create competitive compensation packages. Eckert stressed the importance of succession planning to reduce risk associated with a loss of experienced professionals to run complex buildings with complex systems. It is estimated by some BOMA sources that 55% of building engineers will retire within the next 10 years.
Texas-Style Fun It wasn’t all time spent in educational sessions— there was plenty of time for spectacular parties and a taste of local culture and cuisine. “Able had a great party, with the Spasmatics live band, and Allied Universal’s party featured a local band. HARBRO hosted a party with all of the BOMA California folks,” said Rusler. Since the conference was in Texas, there was plenty of good barbecue to be had, as well as an opportunity to meet some Texas long horns. Mark your calendar to attend next year’s conference on June 22-25 in Salt Lake City!
Top: BOMA OEB crew enjoys a BBQ dinner. Center: mariachi band at the HARBO party. Bottom: Getting up close to a Texas long horn.
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Mark your calendar for these upcoming BOMA events! September 18 – Fall TOBY Competition Workshop
October 18 – BOMA SF & BOMA OEB Young Professionals Boat Cruise
September 19 – Cyber Security 101
October 24 – RPA: Design, Operations and Maintenance of Building Systems, Part II
September 21 – RPA: Ethics is Good Business October 11 – Luncheon: Cannabis Operations Review
November 8 – Luncheon: Technology & Board of Directors Slate Vote November 15 – Fall Membership Mixer December 13 – Holiday Party
Visit www.bomaoeb.org for the latest listings of networking events, seminars & committee meetings.
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Reach BOMA Members Through BOMA Horizons You can reach BOMA members who select or recommend products and services by advertising in BOMA Horizons. The print edition is mailed every quarter to BOMA members and is distributed at events. The digital version is emailed and is also available on the BOMA OEB website. Contact Ellen Eason at ellen@easoncom.com or 415.596.9466 to learn more.
About BOMA Horizons BOMA HORIZONS is published by Eason Communications LLC for BOMA OEB.
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Scenes from the August Annual Engineer Appreciation Luncheon At the August membership luncheon, we honored the engineers from the buildings of our members. Thank you to Swift Realty for hosting the event in Pleasanton! Clockwise from top left: Group of engineers with their gift bags. Rebecca Clevenger, First Security; and Don Rogers, CIM Group. Mark Quistgard, StoneRidge Corporate Plaza; and Dave Baird, Gidel & Kocal Construction Co., Inc. Marilou Jocscon, Sunset Development Co.; Ismail Mansouri, Able Services; and Amber Levine, Sunset Development Co. Julie Eiler, IES; Eric Brown, BSM Facility Services Group; and Gina Holt, IES. Sonia Bastidas Fuestcsh, Interstate Restoration; Lynn Linhares, CBRE California Plaza; JoAnne Spear, CBRE; and Kelly Acevedo, Gidel & Kocal Construction Co., Inc. Photo credit: Kent Goetz
BOMA Oakland/East Bay 1000 Broadway, Suite 200-K Oakland, CA 94607
510.893.8780 www.bomaoeb.org Printed on recycled paper.