Buildingsnews jan:feb

Bay Area

BUILDINGS NEWS January/February 2014

NEW CODES: Get Out Your Measuring Tape

New BOMA San Francisco President: Is LEED v4 Worth the Effort?

Why Do Women Make Great Property Managers?

Bay Area

BUILDINGS NEWS

Features Why Do Women Make Such Great Property Managers?

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Housing Crisis = Opportunity Turns out the Chinese symbol for crisis is not really the same symbol as the one for opportunity, but the housing crisis in the Bay Area is most definitely an opportunity for companies in the buildings industry…and an absolute necessity if our area is to continue to have a robust economy.

Ours may be the most magnificent area to live in the world with a booming economy, but our housing is so unaffordable that employers are finding it much more difficult to recruit talent and operate here. Comparable housing in Portland, for instance, is much less than half of Bay Area prices.

A recent University of San Francisco poll, for instance, recently said a whopping 85.5% of SF registered voters are somewhat or very concerned about whether they can afford to continue living here with median monthly rents above $3,000 and average home prices exceeding $1 million. And quite a few NIMBY residents foolishly think starving our economy of new jobs and tax revenue will make the Bay Area a nicer place to live.

Simple economics should mean housing demand produces abundant supply, but there is nothing simple about urban planning in these parts. So we must consider simplifying the planning process or lose our economic appeal and suffer the loss of business needed to sustain our high quality of life.

Better housing solutions: 1. Go vertical. Apartment and condo towers are much more sustainable than single-family housing and small apartment buildings.

2. Match new construction with adequate mass transit to cut transportation costs, air pollution and traffic congestion.

3. Reverse government disincentives to build, and elect officials who actually encourage developers to create enough housing to bring down the cost through natural market forces.

(Could we also require politicians to pass an economics test before they qualify to run for office?)

4. Invest in housing that’s affordable for everyone who wants to live in the Bay Area. (Fears that San Francisco or Oakland will become “Manhattanized” are absurd. Manhattan’s persquare-mile population density is 69,467. San Francisco’s is 35,360 and Oakland’s is 17,179.) Our waiters, janitors, clerks, students, graphic designers, musicians, etc. should be able to live near the customers they serve.

5. Encourage companies to locate in the Bay Area by showing them we have the same creative ability to solve our housing and transportation problems that we do to create exciting technologies that improve the way the entire world works.

— Henry Eason, Editor and Publisher

New LEED 4 — What You Need to Know

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12 New LED Lighting Products & Strategies Photo courtesy of Visa Lighting.

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Does Your Building Meet New ADA Code Requirements?

The Exciting ChinaCalifornia Connection

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Associations Spotlight News from SPUR (page 16) and BOMA SF (page 17).

Bay Area Buildings News Team Henry Eason, Editor and Publisher henry@easoncom.com Ellen Eason, Associate Publisher & Art Director ellen@easoncom.com Editorial Board Zachary Brown, CBRE Bob Eaton, Eaton Hospitality Investments Nancy Gille, REAL Systems David Hysinger, San Francisco State University College of Business Rich Lerner, Construction Consultant Katherine A. Mattes, Real Estate Consultant Carlos Santamaria, Glenborough LLC

Advertising Information Ellen Eason, ellen@easoncom.com 415.596.9466 © Copyright 2014 Eason Communications LLC 425 Market Street, Suite 2200 San Francisco, CA 94105 • 415.242.5244

www.baybuildingsnews.com Members of: BOMA, IFMA, IREM, SMPS, SPUR.

3 Bay Area Buildings News • January/February 2014

Is Your Building Smart Enough?

New Convergent Technologies Are Producing Optimized Buildings First of all, let’s answer the question: What exactly is a “smart building?”

The definition is growing from buildings that use technology to save energy to those that perform numerous other functions. We certainly know what “dumb” buildings are. They are the ones that waste practically everything, require much more effort and money to manage and don’t provide tenants with the most modern features needed to run their operations at peak performance.

“The definition of smart buildings is ever evolving,” says Teladata CEO Bob Brown, whose Fremont-based firm is sponsoring the renowned Technology Convergence Conference on Feb. 18 in Santa Clara. The common denominator for smart buildings’ products and services, Brown says, is better information, used more effectively for many purposes. These go beyond creating complex sustainability systems to include IT infrastructure, data centers, telecommunication, monitoring, audio-visual and security.

Embracing a broader definition of smart buildings creates opportunities for operating better buildings, but along with that comes confusion. There are competing proprietary systems that pose challenges — challenges Brown says can be alleviated with the adoption of more open standards and protocols. Employing open-source sensor technology throughout buildings provides many opportunities for smarter buildings. Brown says. “We’re seeing sensors in strange places like lighting fixtures, video surveillance and display. All have the ability to embed sensors.”

“It’s a mad scramble, a Wild West,” Brown says of a smart-buildings industry that is growing exponentially, vertically and horizontally.

“Everybody is overlapping everybody else.” He envisions a brave new world of modern buildings with smarter wiring that avoids the need for costly, cumbersome hardware, provides cheaper power with data cables operated in conjunction with sensors providing much higher levels of tenant satisfaction in many operational areas.

Dave Ellebrecht, vice president of tw telecom, also thinks the definition of smart buildings is broadening. “In general, we think of smart buildings as being innovative, using advanced technology and providing more efficient and effective operations overall. The definition of a smart building has changed as technology has evolved. Before, it meant the presence of systems like security and HVAC, but building owners and tenants are looking for more than that. In their lives and businesses, they are used to getting realtime information through state-of-the-art telecommunications technology and they expect that technology to be an integral part of their building.

(Continued on page 20) Image at left: There are numerous smart buildings in the Bay Area, but the under-construction Kilroy Realty Corporation’s office tower at 350 Mission in San Francisco will be a standout.

Designed by SOM and built by Webcor, the 500,000 square-foot, 30-story building aims to be LEED Platinum. It will boast a highly articulated high-performance thermal and seismically designed unitized glass exterior wall, more daylight penetration, 100% outside air capabilities, under-floor air and electrical distribution (with no overhead ducting), floor by floor – HVAC high efficiency units and control, state-of-the-art building management system, including lighting control, high-energy efficiency (approximately 35% savings compared to traditional office buildings) and a destination elevator system. It is built with performance-based structural design that uses less structural materials versus a traditional prescriptive-dual structural design, dual system (core and perimeter system).

5 Bay Area Buildings News • January/February 2014

Why Do Women Make Great Property Managers?

And What Must the Industry Do to Help Them Balance Home and Office Duties Fifty-six percent of commercial real estate asset, property and facility managers in the U.S. are women, according to a CREW Network study—and the trend is reportedly accelerating.

In this Buildings News interview with Sarah MacIntyre, the newly elected president of the Building Owners and Managers Association of San Francisco, we asked her to share her thoughts about why women seem to thrive in commercial real estate property management.

Why are so many women attracted to commercial real estate?

I started in the real estate industry by chance, rather than seeking it out as a career.

Many property management professionals will tell you the same story. My female colleagues shared with me that some of them were drawn to the multi-tasking and problem solving aspects of the business. Others had hospitality background and their customer service experience made the move to commercial real estate a natural fit. All of these skills can be generally attributed to women, but men have them as well.

Or is it that CRE owners and owners’ reps prefer women to manage their properties?

It may be that the hiring companies and clients find women a good choice due to the reasons stated above. I don’t think that it is a conscious decision, but more of a perception that women are good representatives for clients and tenants. Of course, any initial perception would give way to an individual’s skills, personality and hard work. Most Sarah MacIntyre property managers start as property coordinators and work their way up.

What drew you personally to property management?

When I moved back to the Bay Area in the early 90’s, there were few jobs to be found. After three months of temporary work, I was offered a permanent position with CBRE. What has kept me in the business since then, is the dynamic nature of commercial real estate. I am consistently challenged, engaged with cutting-edge businesses and work with the most amazing people — customers, colleagues, mentors, clients, and professional services — all top notch.

Since women have the added responsibility of producing and mostly raising the next generation of humans, do the CRE companies accommodate you?

Some companies are able to accommodate family life better than others. Maternity leave can be hard on everyone. It is up to the employer to support the work team and the employee who is at home temporarily. I was extremely fortunate to work for family-oriented individuals during both of my pregnancies and that made me less anxious about taking the time I needed.

The next big issue is for companies to make it more socially acceptable for fathers to take time off for family matters.

Practically speaking, with two bread-winners being the new normal, rearing a family is no longer viewed, or lived, as only a women’s responsibility.

Or does the industry need to better adjust to women’s unique duties?

Women will always have the unique challenge of weighing career goals as it relates to family planning. However, other than pregnancy and maternity leave, which is specific to women, work/life balance should not be singled out as a women’s issue.

Every industry needs to better support the two-parent working family. This problem is now an equal opportunity gender issue.

When you do find a company that understands and supports your family needs, whether that is a child or an aging parent, it can engender great appreciation and loyalty from an employee.

What message do you have for young women — and young men—who want to be property managers?

Don't underestimate yourself. Seek out challenges and pursue all areas of commercial real estate, even if some arenas don't end up being a natural fit. Having a well-rounded background will always positively influence your problem-solving skills. Join local associations like BOMA (shameless plug, but true), to enrich your knowledge and network. Keep in mind that even during the toughest economic downturn, someone has to manage the property.

Sarah MacIntyre is an asset manager with Kilroy Realty Corporation and president of the Building Owners and Managers Association of San Francisco.

6 Bay Area Buildings News • January/February 2014

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7 Bay Area Buildings News • January/February 2014

USGBC’s New LEED v4 — What You Need to Know

By Zachary Brown As real estate professionals in the Bay Area, we are all certainly familiar with LEED (Leadership in Energy and Environmental Design) certification. However, there may be some confusion over the recent adoption of the next incarnation of LEED, which is now officially dubbed LEED v4. So what exactly do we need to know?

After three years of development, and six public comment periods, LEED v4 was officially approved by USGBC (United States Green Building Council) membership July 3, 2013. This year’s Greenbuild trade show in Philadelphia from November 20 to 22 released the new rating system to the public with projects able to register under LEED v4 as of December 6, 2013.

Now that LEED v4 is available to projects, there are more options than ever before for third-party certification. With all of these available options, it is important to know about the evolution of LEED for our clients, tenants and internal customers.

LEED — especially the most recent incarnation of the rating system — is never without controversy. In fact, you may have recently seen LEED in the spotlight for the wrong reasons. Specifically, the respective chemical and manufacturing industries very publicly fought back against the new standards laid-out in the MR (materials and resources) credit under LEED v4, even as the USGBC originally set-out with the goal of raising the standards of construction materials while maintaining transparency. To battle against this headwind and PR fallout, the USGBC offered a proverbial olive branch to the chemical and manufacturing industry by adding additional paths for compliance while maintaining high standards as well as transparency.

Unfortunately, the confusion and subsequent media coverage may have stigmatized LEED v4, which is why it is especially important to learn about the merits of the new rating system and be able to address any questions or concerns coming from our tenants or clients.

The LEED Relevance Challenge The USGBC has a tremendous challenge in maintaining the relevance of LEED as the preeminent third-party environmental rating system for the built environment. LEED 2009 saw a massive increase of popularity over the past four years and is still currently the most popular of the LEED rating systems. Now that the market has “caught-up” to the standards of LEED 2009, the next rating system — LEED v4—

must chase the moving target of excellence in sustainable construction and operations, while also ensuring that LEED would remain feasible so that it matches the rise in popularity witnessed by LEED 2009. LEED must continue to reward early adopters and progressive designers, but can’t be so out in front of the market that it is out-of-reach.

There are many notable changes in LEED v4, and the following is a small list highlighting some of the most impactful changes for LEED EB O&M v4 (please note that this is not an exhaustive list, please see the following website for more information: (http://www.usgbc.org/v4).

At the top of the list is the second energy and atmosphere prerequisite, which increases the minimum ENERGY STAR score from 69 to 75. This higher energy efficiency standard will certainly cause building owners to hesitate seeking LEED v4 certification. Other notable changes include more energy subsystem metering, and both hardscape and landscape maintenance programs as prerequisites. Indoor environmental quality credits now require ASHRAE 2010 standards under LEED v4. Finally, non-smoking signs are now required within 10 feet of building entrances.

So for the time being, there is a choice between LEED 2009 and LEED v4. Projects looking to raise the bar and seek the challenge of LEED v4 will find increased opportunities to market themselves as early adopters and market leaders.

Those projects not ready or able to meet the higher standards of LEED v4 will still be able to seek the prestige of the yet-to-sunset LEED 2009 label. As with the 2009 version of LEED, the Existing Buildings Operations and Maintenance (EB O&M) rating system will have its own unique challenges over other rating systems included under v4 such as New Construction (NC) or Commercial Interiors (CI).

If you are interested in learning more about how LEED v4 will impact new development, contact a local general contractor or architect, as they are already up-to-speed on the nuanced differences between different rating systems. As for the LEED EB O&M route, speak with your contractors performing tenant improvement projects, janitorial vendors, pest control experts, landscape companies, and window washers to help decide if LEED v4 can be achieved. While LEED 2009 and v4 coexist, projects can register under LEED 2009 up until June 1, 2015. Certification can occur under LEED 2009 until it sunsets, which can be as late as 2021.

Zachary Brown is a Manager of Sustainability for CBRE.

8 Bay Area Buildings News • January/February 2014

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Property Managers Turn to Technology to Prepare for Workplace Violence

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laces of work used to be thought of as safe and secure, but office tenants and property managers have become increasingly troubled by a rise in workplace violence. From harassment and assaults to active shooters and bomb threats, nearly 2 million American workers report having been victims of workplace violence each year, according to the U.S. Department of Labor. With recent high profile examples such as the Navy Yard shooting in Washington D.C., the shooting at the Los Angeles airport, and the Boston Marathon bombings, it is not surprising that tenants named security as the second most important factor in space-selection in a recent survey conducted by the Building Owners and Managers Association International.

Due to the varied types of workplace violence incidents— criminal, customer/client, worker-on-worker, personal relationship, etc. — it is not always 100% possible to prevent these threats. Regardless, property managers are responsible for the life safety programs of their buildings, and often in an emergency their response is hampered by outof-date contact information, untrained floor wardens, and slow methods of emergency notification such as phone trees.

A poor emergency response can instantly damage a building or management company’s repu40% tation plus impact tenant retention and revenue.

Many buildings are beginning to implement cloud30% based technology and training resources to prepare their teams and tenants to mitigate risks 20% and reduce buildings’ liabilities.

10% Life safety technology companies such as Preparis are enabling buildings’ owners and Health Natural Disasters Workplace Violence Information Security property managers to operate (Influenza, E-coli, (Floods, Tornadoes, (Active Shooter, Bomb (Data Breach, Phising, Storms, Earthquakes) Salmonella, Pandemics) Threat, Explosion) Malware) with confidence by providing resources that ensure their buildings’ staff and tenants Graph Source: Preparis Poll of Tenants & Property Managers, October 2013 are prepared for threats such as workplace violence. More than 100 buildings across the U.S. are now using Preparis to train their crisis teams and tenants, communicate with them during a crisis (workplace violence or other), plus test and update their Emergency Action Plans.

Leading property managers are finding great value in the confidence Preparis’ program provides. “I knew we needed to have a more structured emergency preparedness program for my property team and tenants,” said Deb Pyznarski, Senior General Manager, Lincoln Property Company. “I have been in property management for 24 years and am so glad to have finally found a solution that addresses all things emergency preparedness in one system.”

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10 Bay Area Buildings News • January/February 2014

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Two Key Buildings Conferences Coming Up Central Valley Facilities Expo • March 12-13 • Modesto Faced with drought conditions, building operations managers who attend the Central Valley Facilities Expo in Modesto, March 12-13 will learn numerous ways to reduce water use. A seminar, “How to Improve Your Facility’s Water Efficiency,” will be held from 1 to 2 p.m. on Wednesday, March 12. The speaker is Chris Brown, a consultant on water efficiency, who recently retired from the California Urban Water Conservation Council in Sacramento, where he was executive director. This presentation will cover widely used water-efficiency technologies for commercial, industrial and institutional applications, including restrooms and plumbing, heating and cooling, water treatment, on-site reuse of water, and alternate sources of water. Process control technologies and methods and the water-energy nexus also will be discussed. Also included will be Calgreen code updates and details on federal standards that affect water use.

Also featured is a case history presentation, called “Making Sustainability a Business Imperative at Crystal Creamery.”

Speaker Luis Miranda of that company will examine a wide range of enlightened practices, including optimum handling of wet waste and wastewater. In addition, on the show floor, in the California Sustainable Winegrowing Alliance’s booth, several videos on best water use practices will be screened, for the benefit of attendees.

Attendance info: www.FacilitiesExpo.com

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The advisory board for the Summit is composed of leaders from government and the private sector and is chaired by CalEPA Secretary, Matt Rodriquez, Government Operations Secretary Marybel Batjers and Business, Consumer Services and Housing Agency Secretary Anna Caballero.

The conference includes an Expo with more than 100 companies offering green products and services, concurrent sessions addressing energy, water, transportation and other vital topics and a Leadership Awards reception.

Pre-Summit seminars on April 7 will address Prop 39 and recent changes to the state’s green building and energy codes. Keynote speakers will include Anne Simpson, Senior Portfolio Manager and Director of Global Governance for CalPERS. Keynotes and exhibit hall are free.

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12 Bay Area Buildings News • January/February 2014

New Lighting Products and Strategies Save Money..

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Kaiser Permanente Vallejo Medical Center: • The lighting was done by Mary-Jane Lawless of Silverman & Light in Emeryville, CA. • The color changing RGB Infinity Art pendant was hung in an ER waiting area, over a child-size table to provide some playfulness for the kids during a long wait while simultaneously providing positive distraction for parents as well. Photo courtesy of Visa Lighting.

he Vegas conference hall room was packed last fall with facility managers from office buildings, hospitals, hotels, garages and institutional facilities.

They all came to find out if switching to LED lighting makes sense. They left with concrete financial proof that it does. And yet, industry experts say many of them will still not be able to convince their short-term-mentality property and asset managers to make the investment.

Here’s some basic LED math: The 10-year cost of using a PAR38 LED lamp is $109.44 and the 10-year cost of a PAR38 Halogen lamp is $376.98, according to a study done by the California and Oregon-based Corporate Realty, Design and Management Institute. So why hesitate?

Today’s cost of that LED lamp is about $55 and a comparable halogen lamp costs under $6. Since corporate America rarely thinks beyond annual budgeting, the “halogen mentality” usually rules.

Institute President Alan Whitson says if facility and property managers could only get a hearing from their company’s chief financial officers, they would have a better chance of reducing their facility’s energy costs by getting approval for LED lighting. A financial audit by the institute of a 1 million square-foot parking garage that switched to LED-based lighting showed a 10-year savings of more than $2 million. Studies of medical centers (which typically have very low margins) indicate that lighting savings can be greater than a hospital’s profit margins for the audit period.

“The simple (LED) payback is about five years,” says Rob Stanton, a Pleasanton-based consultant with ABM’s Electrical and Lighting Solutions’ division. But, he adds, “a lot of company owners want a payback in two years.”

Stanton predicts that as costs go down (which they have been), LED lighting will become more acceptable. More efficient lighting, he says, “has the best payback of any energy retrofit.” A number of studies show that lighting constitutes more than 40% of energy use in commercial buildings.

The LED nationwide picture is dramatic. According to the U.S. Department of Energy, “Widespread use of LED lighting has the greatest potential impact on energy savings in the United States. By 2027, widespread use of LEDs could save about 348 TWh (compared to no LED use) of electricity: This is the equivalent annual electrical output of 44 large electric power plants (1000 megawatts each), and a total savings of more than $30 billion at today's electricity prices.”

And yet, industry estimates put current LED penetration into the commercial buildings lighting market as

13 Bay Area Buildings News • January/February 2014

..And Enhance the Way We Work, Live, Learn and Heal miniscule—but growing steadily as its advantages are better understood. Lux Research predicted that the LED lighting market will grow 12-fold by 2023 from $1.5 billion to $14.5 billion in sales, given trends.

Better Lighting Incentives and Mandates As with so many environmental initiatives over the past few decades, a combination of carrot and stick is usually required to effect significant change — with governments and entities they regulate usually applying both. That’s the case in the lighting field.

For instance, the State of California’s new Title 24 Building Energy and Efficiency Standards’ regulations, due to be enforced in July, push major new energy conservation measures in lighting. In addition, utilities like Pacific Gas & Electric are offering financial incentives.

New Title 24 regs require: • All interior luminaries must have on/off switches and most dimmer switches must allow on/off controls • Standards will be more stringent requirements for testing and certification of controls commissioning • Floor plans must have 75% of their total area in daylight zones • Occupant-sensing controls must turn off all lighting in the following areas during vacant periods: offices less than or equal to 250 square feet, conference rooms of any size, multipurpose rooms of less than or equal to 1,000 square feet, classrooms of any size and indoor parking areas • Lighting must be automatically reduced by 50% in secondary spaces when unoccupied — such as corridors and stairwells, warehouse aisles and open areas • Parking garages occupant-serving controls will be required to have at least one control step between 20% and 50% of design lighting power • There are stringent new outdoor lighting standards as well that cover daylighting and mounting For more detail, visit http://cltc.ucdavis.edu/ Many of these new regulations “inexorably lead to the LED-based luminaire as the only realistic ‘codemeeting’ solution,” says manufacturers rep David Berks of Novato-based lightSF. “To some extent it is true as LED luminaires do cost more. But there will have to be a paradigm shift in how the lighting fixture’s viability is judged beyond the growing energy savings, with inclusion for maintenance savings, HVAC load, controllability, long life, color, maintenance.

(Continued on page 14)

Top photo: Condos at 1100 Wilshire in Los Angeles installed Acculamp LED lamps in all of their common areas. Photo courtesy of Acuity Brands.

Lower photo: For its conference room, Emeryville-based lighting services company Sixteen5Hundred uses Peerless round 2 indirect and round 4 direct/indirect LED fixtures in a playful alternating pattern in its new 8th floor conference room.

Daylight sensors embedded in the fixtures automatically dim the lights during the day, providing additional energy savings to their already low .6W per square foot lighting power density. Night digital controls allow user override. LEDs in this fixture bring new life to a retro look by allowing fixture diameters that would not be possible with fluorescent lamps.

14 Bay Area Buildings News • January/February 2014

(Continued from page 13)

“And it is not just the LED luminaire that plays a role in satisfying the evolving T24 regimen,” Berks further explains.

“Now, controls are playing a major role in regulating and providing light and they play a role in load shedding and demand-response. There are various protocols that can plug into a BMS and become the command center for lighting and more.”

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Beyond energy savings, one of the most appealing features of LED lighting and controls is their ability to create more beautiful and useful environments within all types of buildings.

LightSF’s Berks says “We are making quantum leaps in the quality of lighting. A lot of people don’t factor in that LED does more than provide cheaper light. Researchers are studying how lighting affects the eye and the signals it sends to the brain.” Studies show that certain lighting conditions can

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increase worker productivity, improve hospital patient recovery, stimulate retail purchasing, enhance restaurant ambiance, speed hospital patient recovery with more restful lighting and provide numerous other qualitative advantages.

Better lighting design and quality are powerful reasons for using LED illumination. Most workspaces are over-lit, say General Electric and the leading trade group, Illuminating Engineering Society. LED permits more focused “task lighting” and ambient lighting often using half the illumination of traditional lighting.

According to Jason Brown, Application Solutions Manager for GE Lighting, workspaces that are too bright may affect both employees' productivity and a building’s bottom-line energy costs. Working closely with the IES and generally focused on more efficient design, Brown has found that a “layered” design is often a good solution to over-lit offices.

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To induce use of LED lighting, Pacific Gas & Electric offers a range of rebates. PG&E cites the benefits of LED lighting.

LEDs use significantly less energy, last longer, turn on and off instantly and can be equipped with dimmers and motion controls for more energy savings. ENERGY STAR®-qualified LED lighting:

• Uses at least 75 percent less energy than incandescent lighting.

• Lasts 20 times longer than incandescent lighting and about two to five times longer than fluorescent lighting, reducing maintenance costs.

• Produces very little heat, reducing cooling costs.

• Does not flicker when dimmed or draw power while turned off.

• Offers brightness equal to or greater than existing lighting technologies, with consistent light output and color quality.

• Comes in a wide variety of styles, colors and sizes to fit any décor and task.

• Brings lighting systems up to date to meet new state and federal energy reduction requirements.

He says, “When ambient and task lighting are layered in this way, direct lighting is brought closer to the work surface, thus reducing the lumens (light output) needed to adequately light the space. High-level illumination is used only where it is needed, at the task, not across the entire space."

“LED color flexibility brings obvious advantage for theatrical and advertising uses. For office and retail uses, LED ceiling lights — both retrofits and replacements — offer excellent choices between a warmer white (3500 kelvin) and a more natural (daylight) soft white (4100 kelvin),” says Jim Kimball of retrofit specialists EnergyTech LED in San Ramon.

The future of LED lighting is literally brighter than traditional lighting technologies —as measured in lumens (a standard measure of the visible light emitted from a source). LEDs emit about 150 lumens per watt used, compared with a maximum of 70 lumens for compact fluorescent lighting and only 30 for incandescent. That means LED produces more light for less energy and a longer life span. And with increased adoption, LED prices will drop, stimulating even greater adoption and further price decreases. That’s the bottom line.

16 Bay Area Buildings News • January/February 2014

Association News

Are Silicon Valley Buildings Doomed to Mediocrity?

Since the dawn of Silicon Valley in the early late 1970s, architects have designed countless flat cookie-cutter rectangles and jammed workers into them as cost effectively as possible. It’s what their clients demanded in that turbulent here-today-gone-tomorrow corporate world where boards of directors have almost always needed an “exit strategy” to get bought out by another firm or downsize or upsize or tear down and build up.

All the while, Silicon Valley’s glamorous sister city to the north continued to dazzle the world with soaring edifices whose gleaming windows and artful shapes reflected light cast off by the shimmering San Francisco Bay. A panel of architects at a recent event sponsored by SPUR reflected on the architectural past, present and the future relationship of San Francisco and Santa Clara Valley and wondered if they two will merge, as growth moves toward closing the physical and business gaps between them.

How will the two influence each other’s building designs? Where exactly is the “Silicon Valley” today, since so many technology companies have opened their doors in San Francisco and the city has become a bedroom for so

many Santa Clara County workers. There were no conclusions reached. And yet, some architects felt that there are signs that Silicon Valley companies with long-range ambitions (Apple, Facebook, Google, etc.) want to leave their mark on the architectural landscape with iconic structures that will polish their brands and help them attract talent.

“The two distinct areas (San Francisco and Silicon Valley) are blurring more and more,” said San Francisco Chronicle architectural critic John King, who moderated the panel.

Gensler’s Steve Weindel recalled how in the 1980s and 1990s, since many companies “didn’t know if they’d be in business tomorrow” required architectural features that were minimally designed so structures could be sold quickly to other firms on short notice. “Now, he said, “they say they are not looking for an exit strategy.” He said one client told him he ‘wanted to go on an (architectural) journey to reflect the soul of his company.’ Silicon Valley companies are maturing and they are getting more confidant and they want architecture to reflect that,” he explained.

“For the first time (Silicon Valley) companies are looking to make an architectural splash beyond our area,” said King.

17 Bay Area Buildings News • January/February 2014

New California Building Codes Measured in Inches A few inches might not seem a lot to someone who’s not handicapped, but they can mean the difference between being able to lead a more normal life or suffer embarrassing and unnecessary inconveniences to disabled people, says plaintiff attorney Celia McGuinness. And yet, those inches can also cost property owners a lot of money in lawsuits if not accommodated.

She and other expert speakers detailed those all-important inches and much more at BOMA San Francisco’s recent annual Building Codes Seminar.

Skip Soskin of Huntsman Architectural Group described the new combined California Building Code Title 24 requirements with the 2010 American with Disabilities Act (ADA), saying “There are actually very few new requirements.” He also noted that cities like San Francisco, however, will add their own regs, and no one yet knows what they will be.

The pros and cons of the Certified Access Specialist program were debated, with some saying getting a CASp report carries little weight, while others felt it demonstrates a building operator’s intent to comply with the law—as long as the owner is prepared to follow through on what the CASp report found and puts a schedule together to address any deficiencies.

Here are some details: • New SF leases of 7500’ or less must now include a form signed by both tenant and landlord verifying that the tenant understands that the space he/she is renting is (or is not) ADA compliant and, if not corrected, could face a future lawsuit. This form is available from the San Francisco Small Business Commission’s website.

• Elevators in existing buildings must be 48” x 54,” instead of the current minimum of 48” x 48.” Note: Federal ADA law states that “readily achievable” is one of the criterion to be used in determining if something is an ADA violation or not, and making an elevator shaft wider would likely be considered not “readily achievable,” and thus exempt, according to the panelists.

• There must be room for van parking every six spaces— instead of eight.

• Shower rooms must include a toilet and sink.

• Ramps that change direction between runs must have an intermediate landing of at last 60” wide and 72” long in the direction of travel.

• Toilets must be 17” to 18” from side walls, instead of the current 16” and 18” space to provide more space for a wheelchair to maneuver.

• Yet other changes affect lavatories, sinks, water fountains, showers and signage.

Ken Cleaveland, BOMA’s vice president for public affairs, said, “It’s important to have competent architects always review any designs for tenant spaces as how ADA laws are interpreted and enforced do vary from jurisdiction to jurisdiction.

Compliance up front is much easier than facing a lawsuit later down the road.”

In other news from the codes seminar, San Francisco adopted new local building codes effective January 1, 2014 that will include the ability for owners of fullysprinkled buildings to install nonrated demising walls in tenant spaces. This is a significant cost savings change for both tenant and landlord. New buildings will also be allowed to substitute a firefighter service elevator in place of installing an air replenishment system (ARS) for firefighter use.

18 Bay Area Buildings News • January/February 2014

China’s Real Estate Bo

Architects, Planners, CRE Firms, Green Com

C

hinese investments will soon be gushing into the Northern California buildings market as pent-up profits from booming China seek stable and friendly climates and Bay Area firms are needed to work in China, real estate executives who just returned from China recently told members of the Building Owners and Managers Association of San Francisco.

“So much money needs to get out of China, mostly into real estate, and San Francisco will be one of the top spots,” said Cushman & Wakefield Regional Director Steven Ring.

Ring and architect Jeffrey Heller said China is adept at erecting high-rise office towers practically overnight, but many are shoddily built and their building operation practices have yet to attain American standards of efficiency, aesthetics, cleanliness and assurances of quality in tenant leasing practices. Ring described the some buildings operations he witnessed as ‘horrible.’ “They accept standards different from us. They do care. They’re just moving so fast.”

There are major exceptions, added Heller, whose firm (Heller Manus Architects) has designed a number of buildings in China and advises the government on urban planning. “When you go into important buildings, they are clean and perfect. They know how to do right,” he said.

Delegates of the first major BOMA-sponsored conference in 2013 between Chinese and American real estate executives said they were astonished at China’s unbridled growth, but were encouraged by that nation’s desire for cooperative relations with their industry counterparts in the Bay Area. They further said that the Chinese are looking to sustainable regions like San Francisco for help in reducing levels of air pollution that threaten their health and future economic progress. “They are poisoning their own cities,” said Heller, whose Chinese air pollution app recently recorded particulate matter in the air at 300 and 400 particulate levels. (By comparisons, in the Bay Area, an infrequent level that exceeds 150 results in an emergency “spare the air” order.)

China Looks to Bay Area For Partnerships, Opportunities “California as well as the Bay Area has always had strong ties with China since the Gold Rush days, and so it’s natural that California and China learn from each other in areas like building design and operations by creating a partnership benefiting one another,” says Carlos Santamaria, a BOMA delegate and Glenborough’s vice president for engineering. He has been advising China on energy conservation practices.

“While China is still struggling with the environmental side-effects of full-scale industrial development, quite a bit of work is taking place behind the scenes toward implementing the sort of best practices which have resulted in cleaner Bay Area air. For example, the Shanghai Tower which is going to be the tallest building in China and the second tallest in building in the world. At 632.0 meters, or 2073 feet, this world-class design is the work of Bay Area-based architectural firm, Gensler & Associates. The Shanghai Tower’s state-of-the-art systems incorporate energy efficient and sustainable features and materials that will make it one for the greenest buildings in the world,” said Santamaria.

Santamaria said one example of partnerships that are forming between American and Chinese commercial real estate professionals is the recent emergence of BOMA China, a BOMA International affiliate and one of the fastest growing professional commercial real estate associations in the world.

“With over 300 members totaling over a billion square feet of office space and growing, this less, relatively new association has the task of shaping and

19 Bay Area Buildings News • January/February 2014

om Benefits Bay Area

mpanies and Many Others Are Needed in China directing a huge industry and market. Leading this herculean effort is Dominic Lau, executive director of BOMA China.

Lau’s vision is for BOMA China to create one of the foremost real estate industry associations in the world market by using those international standards and best practices that improve China’s real estate industry. Training is also a significant part of the equation where Bay Area companies and professionals are being sought out after in being subject matter experts to BOMA China.”

To achieve higher industry standards, Ring said Chinese are eager to “co-brand” with North American real estate companies, including his own firm as well as Hines, Colliers, Jones Lang LaSalle, CBRE, Brookfield and Tishman Speyer, to name just some of the major players. The opportunities are enormous, Ring said, because “the scale of what’s happening there is unbelievable.” He and Heller both said there are more than 100 economic zones in China they’d never heard of that are more populous than San Francisco. One Chinese official reportedly told Ring that what it has taken American 200 years to build, China has built in 20 years. “There are hundreds of cranes over the cities we visited,” said Ring.

Seeing frenetic growth everywhere, urban planner Heller said it is stunning to realize that there are more than 700 million people using the Internet in China, and 37 packed

high-speed trains run each way every day between Beijing and Shanghai on a railway system that has built more than 10,000 miles of track in the past decade along which trains fly at 200 miles per hour. In their hyper-charged economy, Heller said they are erecting “throwaway towers they’ll knock down in 30 years.” Ring said very few tenants will sign leases longer than three years, since they expect to outgrow current requirements or change their business practices. He added that buildings aren’t as clean as ones in America because the Chinese are just too busy to notice what’s accumulating in the corners of their offices.

BOMA’s China Initiatives Santamaria is vice chair of BOMA International’s Energy & Environment Committee and chair of the BOMA California Energy Committee. He says BOMA, and Bay Area CRE leaders in particular, are forming very close ties in buildings operations.

“There’s an ongoing effort to identify and bring over Subject Matter Experts (SME’s) to China to assist them in their commercial real estate industry development. Areas of expertise that are in need include; exterior curtain wall experts, roofing experts, janitorial–green cleaning standards experts, preventative maintenance experts and property management professionals.”

American industry experts plan to help BOMA China with education and the transfer of industry knowledge. “There is an excellent opportunity for those who wish to travel abroad and use their education and industry experience to share their knowledge with BOMA China members,” said Santamaria. The California China Office of Trade and Investment is also working to unite the two largest and most dynamic economies and business communities on the planet—China and California.

Several Bay Area firms are working with the CaliforniaChina Trade collaborative exploring opportunities in four major cities in China: Beijing, Tianjin, Hangzhou and Shanghai. The BOMA San Francisco Foundation is also in discussions with BOMA China to try to see where resources can be shared addressing the employment and training needs of the commercial real estate industry here in the Bay Area and throughout the nation, as well as in China. BOMA China is in the very early stages of trying to build this CRE workforce by recruiting, training and retaining top-quality talent and can use the expertise and assistance of BOMA San Francisco.

Top left: Heller Manus designed all four buildings that make up the Canudilo campus, called Guangzhou International Fashion Center, office and retail space, a gallery for fashion exhibitions, a conference center, roof gardens and an underground parking lot. The gallery and flagship store are LEED-NC Gold registered, and the office towers are LEED NC and CS Silver registered.

Lower left: Shanghai skyline. (Photos courtesy of Heller Manus Architects.)

20 Bay Area Buildings News • January/February 2014

Smart Buildings

(Continued from page 3)

What Smarter Buildings Can Do Reduce energy Improve lighting systems Heighten telecommunications

“Building owners and managers know that the telecommunication infrastructure is one of the most critical features potential tenants look for and tenant access to ultra-high-speed, secure, scalable networks that support cloud computing, Internet and Business Ethernet is not a luxury, it’s a necessity! And end-to-end fiber is a must — copper can’t satisfy the growing appetite for bandwidth.”

Brave New World of Buildings Data

Tech-enhanced methods of generating useful data about a building’s operations promise Enhance AV communications better tenant experiences, but the massive amounts of data can be overwhelming. That’s Provide greater HVAC comfort why companies like Johnson Controls are developing methods of channeling the flood of Conserve water data with programs like the Panoptix building efficiency platform. It is a comprehensive suite Track building operations of cloud-based apps, services and Enrich data applications support that harnesses and better manages a facility’s data. It pulls a variety of data from Integrate all systems various existing building systems and utility meters and transmits it to the cloud, where it can be used with a range of applications to deliver better control over energy use, equipment operation and occupant well-being.

Paired with Johnson Controls’ Metasys, Panoptix can ensure comfort and create efficiencies in all types of buildings. It is a comprehensive building management system that provides instrumentation and control needed to coordinate, regulate and manage building systems. It helps facilities managers better operate a host of functions, like HVAC, lighting, security, fire and communications, using sensors to help managers know what’s happening in virtually every corner of a building. And its reports allow managers to better plan for the future and achieve greater efficiencies.

The company Building Engines maintains that recent studies “show there is a direct link between technology investment and profitability.” Building Engines says in its report called “Technology Adoption in Commercial Real Estate” that “the commercial real estate industry has historically known to be laggard when it comes to embracing new technology. Yet, the past few years have seen a major uptick in technology adoption. So, what is driving the change?”

Specifically, survey respondents said they need better customer support, that current systems are too difficult to use and less costly methods are required. Their findings also indicated that building managers want to manage their facilities using mobile devices.

21 Bay Area Buildings News • January/February 2014

Bottom Line…How Smart Does Your Building Need to Be? Smarter buildings are more appealing to many types of tenants in the Bay Area with very high operational expectations from their buildings (tech, finance, professional services, bioscience, etc.), but there is a limit to what some require.

Blake Peterson of Langley Investment Properties in San Francisco says, “It is a sliding ROI scale. The real question is, what is the guaranteed minimum value add that smart building technology will generate for the cost. When you reach the tipping point where a smart building project is not offset by labor or utility savings or is not measurably enhancing the occupant experience or building value, it becomes the opposite of smart. For existing buildings, one must identify wants versus needs and then approach the adoption of new technologies carefully and incrementally.”

Western Allied Mechanical of Menlo Park has worked on numerous smart buildings projects throughout Northern California. Its president, Angie Simon, agrees that “not all buildings should be smart buildings.”

(Continued on page 22)

22 Bay Area Buildings News • January/February 2014

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(Continued from page 21)

“The usage and the long-term life of the building should be considered,” says Simon. “However, as technology continues to evolve and improve, the ROI’s are bound to get better. Actually the codes, rules and regulations in the State of California (T-24 and Green Codes) are going to be the driving force behind required improvements that will make even the simplest building much more energy-efficient when compared to other states and their buildings. From a construction cost point of view, the changes in the codes have driven up installation first costs but will help with the long-term energy usage. When the 2014 T-24 codes take effect (July 1st), we will be required to make these buildings even better.”

Simon continues, “Does this mean that a Net Zero building like the Packard Foundation has a payback or ROI that can be shown on paper as cost effective? No, probably not yet, but to the ‘green’ world and to those that look to the future of where our buildings will be in 15 years, it is money well spent to prove that this can actually be achieved. The federal government has established its HPBS (High Performance Building Standards), which all new federal buildings being built are guided by.

These standards are similar to California’s T-24 and green codes. These guidelines mean that all of our future buildings will be “SMART.”

Smart Building Automation...

This is one of the building automation panels that controls the entire HVAC system in a complex Silicon Valley office building. This smart control system was designed and installed by Comfort International, Inc. (CI) of San Jose. It uses KMC Controls, an open protocol building automation system (BAS) to control this LEED Platinum certified data center. CI worked collaboratively with ADC Engineers and its client to enhance the system design which uses outside air economizers as well as direct and indirect evaporative water side economizers with a custom chiller/air handler to condition the server racks arranged in sealed hot/cold zones. The key is the custom control logic of the BAS, which enables this midsize data center to have one of the lowest PUE levels in the industry using a mere 7.5 hours annually of mechanical chiller cooling as free cooling is used the rest of the time and maintaining 68-74 degrees and normal 40-60% humidity levels.

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Vanir Builds Out Chic Urban Space for WeWork A privately held company that builds communities made up of entrepreneurs and small businesses, WeWork empowers its members by providing functional workspace, collaborative environments, connective technology and meaningful services.

WeWork currently has offices in New York, Los Angeles, San Francisco, Seattle, Washington D.C. and Boston.

WeWork contracted with Vanir in October 2012 to build out its space at 25 Taylor Street in San Francisco. The CM/GC cost-plus-fee contract enabled WeWork to start construction before the design documents were 100% complete.

Much like WeWork’s philosophy, the design and construction team worked collaboratively to create an exciting and chic workspace. Adjacent to the Golden Gate Theater, the seven-story office building is 90 years old and had been unoccupied for 10 years.

IFMAs • BOMAs • AIAs • IREM CREW • SMPS • CoreNET Apartment Associations • NCCAR SPUR • Hotel Associations... and many other industry players

The inviting WeWork space at 25 Taylor Street, San Francisco.

The project team was tasked with bringing life back to this historical building that had been boarded up and abandoned.

After the initial abatement and demolition, Vanir moved forward with the new infrastructure requirements and finishes. A major part of the improvement work was installing new utility systems including electrical, fire sprinklers, fire alarm and heat into the building.

The substantially complete first phase of the project allows WeWork members to enjoy the 45,000 square feet of space.

Vanir and WeWork recently finalized a contract for the next phase of the project, which will be Design-Build services for the remaining three floors of the building. Anyone interested in leasing space from WeWork may schedule a tour by visiting www.wework.com.

Since 1980 Vanir has provided construction services for nearly $16 billion dollars in construction throughout the nation. During each phase of planning, design, construction and close-out, Vanir continuously focuses on achieving the owner’s goals for success. Owners throughout the private, education, healthcare, justice and civil market segments appreciate the level of quality and personal service received by Vanir’s team. As your construction expert, Vanir can provide many services including project scheduling, equipment and material procurement, general contracting, quality assurance/quality planning, and commissioning. In addition, Vanir offers construction management, design-assist, design-build, and integrated project delivery services.

For more information: Dan Ferst • 415.284.9050 • dan.ferst@vanir.com • www.vanir.com

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Gensler Architect Says “Open Offices” Can Be Unproductive Q&A with Douglas Wittnebel, Design Director and Principal, Gensler Gensler recently did a study of open offices and raised some questions about them. What were they?

Gensler’s workplace research began in 2008, as a result of 40 years of experience, so we have quite a bit of data to show how attitudes toward the workplace have changed, as well as where they’re going. The new study examines the design factors that create an effective workplace; how design can better support knowledge worker engagement, satisfaction, and performance; and the influence of the workplace on organizational culture. It also reveals trends about productivity, innovation, and worker engagement. Our research identifies new design strategies for how organizations can use workplace design as their competitive advantage to drive innovation. The bottom line is: design really matters!

How about a few details from the study?

We can take a look at the topic of distractions in the workplace.

Did you know that over 50% of employees are disturbed by others when trying to focus? Almost half of employees are using makeshift solutions to block out distractions. I’m sure you’ve seen it —people with headsets on, earplugs, even no music playing? We should watch and pay attention to this trend, because we know that 75% of employees want to be in the office and feel that it’s more productive than working at home.

They want the valuable face-to-face time. Yahoo gave out a big “Yahoo” and called for a return to the office. That’s a call to action for designers — we need to provide employees a range of spaces for all the work modes: collaboration, learning, socializing and focus.

Can open offices be made to be productive without interfering with workers’ focus?

While individual focus and collaborative work are often thought to be opposites, our research demonstrates that they function best as complements. When focus is compromised in pursuit of collaboration, neither works well. The most effective workplaces are all about Balance and Choice. Workplaces designed to enable collaboration without sacrificing focus are more successful. Enabling choice with the right alignment of tools, policies, and spaces is an opportunity for companies to create a climate in which employees can make meaningful decisions to maximize their job performance. Employers who

provide a spectrum of choices for when and where to work are seen as more innovative and have higher-performing employees.

What trends in office interiors do you foresee?

In the workplace, I see a future focus on smart design. When design is the difference between a great outcome and something less, a design perspective on the future is a competitive advantage.

This is a time of profound change in how design supports work in all its varied forms. I see a few big, future-shaping trends. Cities, buildings and districts are evolving in response to the innovationdriven nature of the business. Co-working space, with its informal and collaborative ethos, will continue to grow. “Smart” environments, embedded technology settings will take increase. Focus balanced with collaboration and choice in the workplace will emerge as key drivers of satisfaction, performance, and innovation.