22 minute read
Diversity & Better Management
California Buildings News • Q4 2021
Diversity, Inclusion Key to Better Building Management
Promoting diversity in the buildings operational workspace is much more than just being politically correct. As Portia Mount, Trane Technologies’ vice president of marketing for commercial HVAC in the Americas said at a recent Building Owners and Managers International conference, “there are compelling business reasons why we should be doing it as well.”
She explained that driving employee performance and attracting the best and brightest new talent to the organization is a compelling reason to be more inclusive. She cited a 2018 Deloitte report that said organizations with an inclusive culture are twice as likely to meet or exceed financial targets and eight times more likely to achieve better business outcomes.
Rita Hernandez has been an inspirational leader in promoting diversity, equity and inclusion (DEI) throughout her career. Hernandez, who was once named the Institute for Real Estate Management’s top building manager in the world, says, “The Great Resignation is in play resulting in a significant lack of labor across all industries, and most everyone is scratching their heads about why people have not come back to work. “The reasons are many and complex; however, there is a major opportunity many companies are overlooking… implementing a DEI recruitment and retention strategy as a solution. Among pay equity, work/life balance, and remote working, DEI requirements have increased significantly because of the pandemic and that has shifted the power to the side of labor.
“Employers are finding that you can’t just throw money at it (although pay equity is important); therefore, the time is now for businesses to study their internal structure and policies. She cites a McKinsey & Company report saying that more ethnically and culturally diverse businesses are as much as 36% more profitable than the least diverse companies.”
The Brickman MGR LLC general manager in San Francisco added, “As real estate managers, our job is to continually search for the best vendors, so I am adding this new prequalifying question in conversations and in my RFPs: Do you have a DEI strategy? Because if they do, they will likely be more successful in delivering superior client services to your building and tenants… and that’s our responsibility.”
Rita Hernandez
DEI in Facility Management
DEI leader Tanicia Jackson, an active BOMA member and general manager at TMG Partners for 1330 Broadway in Oakland, says, “Facility management has been understood as the technical and procedural responsibility of managing maintenance and equipment. With increased importance on DEI, facility management has become more about creating and supporting workspaces to achieve optimal productivity and wellness in an environment where diversity, equity and inclusion are authenticated.
“Achieving DEI in facility management means that organizations and leaders are taking action on the social responsibility to acknowledge and support differences and creating both tangible spaces and intangible experiences that represent and celebrate those differences.
“Attaining DEI in the physical design of a facility means reflection of everything from the community where it is situated and participates in accessibility features to the artwork selected reflecting the aesthetic and design intent of the ownership and architecture. It means going beyond the basics of minimal accessibility compliance to creating innovative and dynamic spaces that all people can fully and equally access, utilize, enjoy and thrive as a result of the inclusivity thoughtfully created.
“Equally important to the physical aspects of a facility are the people who manage and service the spaces. It is the soul of an organization’s people that ultimately create the experience and tell the story of its workplace culture. Consequently, it is vital that DEI also be reflected in the facility management team, and their ability to embrace and communicate the importance of inclusivity. The team we hire and support is ultimately reflected in the overall occupier experience.
“DEI in facility management is important because when perceived routinely, exclusion has a very real power with lasting adverse effects. It’s time to be more thoughtful about how spaces are created and managed. Our industry has the power and resources to cultivate a diverse, equitable, and inclusive culture.” n
Tanicia Jackson
California Buildings News • Q4 2021
BOMA International Conference Highlights
Some news highlights from the Building Owners and Managers International conference in Boston this fall, from a BOMA report:
Gensler’s Bob Peck, principal and global government and defense practice area leader, and Cheryl Duvall, regional consulting practice area leader shared the results of some of their research showing that: w Over half of workers would prefer a hybrid work model. However, across the countries surveyed by Gensler, the U.S. leads the world in both employees who prefer remote work only and those who want to work in the office full-time. w Remote work has robbed junior staff of mentoring opportunities. “I believe this is one of the greatest losses during the pandemic,” said Duvall. w Younger generations have a broader conception of the office’s value. Different generations go to the office for different things, Duvall explained. Gen Z respondents to Gensler’s surveys were more likely to rate maximizing individual productivity as a reason they work in the office.
With storms that seem to keep getting worse and more frequent and temperatures that grow more intense, the conversation about climate resilience is here—and not a moment too soon. It’s time to move that conversation past using insurance to protect our buildings from extreme events and tackle the real work of how buildings can mitigate risks, said Breana Wheeler, director of operations for BREEAM, USA.
“We’re looking at the impacts [of extreme weather at a scale we’re not ready for,” Wheeler said. “We’ve had a stable climate for the last 500 to 600 years, and we’ve built our world around that.” But significant change is coming, she added.
Spread out across the trade show floor at the BOMA International Expo, the Cornerstone Partners showcased new and innovative solutions for all building types.
Allied Universal
featured HELIAUS, an artificial intelligence-driven guard tour and incident reporting solution that utilizes a security guard’s smartphone. The tool creates tours for the guard based on historical incidents, almost like a virtual coach. Security teams also can set up workflows to check for things like leaks, open doors or spills.
Kimberly-Clark Professional introduced Scott 24, a new series of 24-hour sanitizing wipes that maintain residual sanitation for a full day—even after multiple touches. The wipes have received U.S. Environmental Protection Agency (EPA) registration to kill SARS-CoV-2, the virus that causes COVID-19.
Kings III Emergency Communications explained how cellular technologies are quickly replacing analog help
(Continued on page 20)
California Buildings News • Q4 2021
AIA California Recognizes Top Architects
American Institute of Architects, California (AIA CA), proudly announces this year’s Design Award Recipients— a list honoring a broad range of innovative design.
Although the time is uncertain and unrest is looming, there is perhaps no better reason than to honor and celebrate designs which make lives better somehow. Last month, five jurors deliberated between hundreds of entries and narrowed the project list down to 10.
The jury searched for projects that also maintained high sustainability performance as they believed that was a part of a design’s overall story. It also sought to give a nod to historic preservation and reuse because there are so many constraints and complexities in those projects. Social impact was also of great consideration as structures must also speak to and for their communities. A full gallery of recipients is available at: https://aiacalifornia.org/design-awards/
Some of the AIA Awards
Honor & Leading Edge
MuseumLab: KoningEizenberg Architecture, Design Architect & Perfido Weiskopf Wagstaff + Goettel Architects, Architect of Record
Honor
The Continental: Jonathan Segal, FAIA Health Sciences Innovation Building: CO Architects, Arnold Swanborn
Merit
Oakland Museum of California: Mark Cavagnero Associates Harmon Guest House: David Baker Architects WETA Richmond Ferry Terminal: Marcy Wong Donn Logan Architects – Marcy Wong Flor 401 Lofts: KoningEizenberg Architecture
Leading Edge
Lisa & Douglas Goldman Tennis Center: EHDD 49 South Van Ness: Skidmore, Owings & Merrill
Interiors Merit
An Historic Shipyard Reincarnation: Marcy Wong Donn Logan Architects – Marcy Wong
Top left: MuseumLab. Photo: Eric Staudenmaier. Top right: WETA Richmond Ferry Terminal. Photo: Billy Hustace Photography.
California Buildings News • Q4 2021
Architects: New Infrastructure Law Boosts Resilience, Sustainability
The American Institute of Architects (AIA) applauds enactment of the bipartisan infrastructure bill that will allow the U.S. to make meaningful advancements towards building a more resilient and sustainable built environment. "This bipartisan legislation affirms AIA’s long-held contention that buildings are infrastructure,” said AIA 2021 President Peter Exley. “It is encouraging to see Congress make meaningful investment in building sector energy efficiency and resilience. While the infrastructure deal is an important step forward for our nation, more needs to be done if we are going win in this race against time for our planet. We continue to urge Congress to support the significant climate investments contained in the Build Back Better bill, as well as aggressive emissions reduction commitments at COP26 that will combat climate change.”
AIA advocated for several provisions included in the “Infrastructure Investment and Jobs Act,” (H.R. 3684), which will improve safety, resilience and sustainability in the built environment.
Key provisions that would improve the built environment include:
u Providing $3.5 billion in funding for the Department of Energy’s (DOE) Weatherization Assistance Program, which increases energy efficiency and reduces costs for low-income households. u Authorizing $500 million in competitive grants to support energy-efficient and renewable energy in schools. u Allocating $1 billion for the Federal Emergency Management Agency’s (FEMA) Building Resilient Infrastructure and Communities (BRIC) program. u Allocating $500 million for grants established from the Safeguarding Tomorrow through Ongoing Risk Mitigation Act (STORM Act), which mitigates hazards to reduce risks from disasters. u Providing $250 million in funding to establish the Energy Efficiency Revolving Loan Fund Capitalization Grant Program, which states could use to improve the energy efficiency of residential and commercial buildings. u Establishing a $225 million competitive grant program within the DOE's Building Technologies Office to support cost-effective building code implementation. u Establishing a $40 million grant program to train individuals to conduct energy audits and surveys of commercial and residential buildings. u Developing building, training, and assessment centers through institutions of higher education and Tribal colleges to train architects, engineers, and other professionals about energy-efficient design and technologies, along with fostering additional research. u Allowing the Metropolitan Transportation Planning authorities to use federal funding to promote more walkable and multi-modal communities.
lines in elevators. The company specializes in emergency communications for elevators and noted that moving to an updated system can help reduce costs and provide better service. Kings III can also install a video feed of the elevator and two-way text communication for people with hearing or speech difficulties, features that are now required by code in several states.
PPG’s Copper Armor antimicrobial paint received EPA registration. The new product contains Corning Guardiant technology, proven to kill 99.9% of bacteria and viruses on the painted surface, including SARS-CoV-2, in two hours.
Yardi demonstrated how to use its Elevate asset management software for real estate. The product, an extension of its Voyager product, is designed for CEOs, COOs, asset managers and other operational managers, providing them with tools like market intelligence, predictive insights, budgeting and revenue forecasting. n
San Francisco Building Wins TOBY Award
The TOBY (The Outstanding Building of the Year) Awards Banquet culminated the BOMA conference. San Francisco’s 333 Bush Street, managed by Tishman Speyer and owned by 333 Bush LLC, won the TOBY award in the 500,000–1 million square-foot category.
BOMA Conference (Continued from page 18)
LA To Fast-Track Office Tenant Improvements
Osama Younan, the General Manager of the Los Angeles Department of Building and Safety (LADBS), announced the launch of the Fast-Track Office Tenant Improvements Program. This innovative initiative, administered by LADBS via their E-Plan portal, will fasttrack the permitting and approval process for tenant improvement projects.
This program has been developed in collaboration with the leadership of the Los Angeles Chapter of The American Institute of Architects (AIA LA), the Building
Owners and Managers Association Greater of Los
Angeles (BOMA/GLA), and the Central City Association (CCA). This program will be available to all licensed architects and engineers who wish to participate.
During the height of the crisis of the pandemic, LADBS met with AIALA, BOMA/GLA, and CCA to identify a proactive approach to ensure that the private sector could more effectively and more expeditiously respond to urgent need to reconfigure, retrofit, and/ or reprogram existing workplaces, retail sites, and commercial office buildings to adopt to new market conditions and demands for healthy, safer, and more equitable interior spaces. After analyzing and reviewing the self-certification programs of numerous municipalities such as New York City, Phoenix, and Austin, a consensus was reached that the most cost-neutral approach would be to implement a Fast-Track Office Tenant Improvement Program, with the goal to ensure that the City of Los Angeles will remain competitive with other world-class cities that need to urgently reconfigure their existing facilities with tenant improvements and upgrades.
“This program serves residents, visitors, and those whose livelihoods depend on safe and rapid re-opening of commercial spaces,” noted Wade Killefer, FAIA, President, AIA Los Angeles. Killefer’s experience realizing architecture for and in the City of Los Angeles dates back 46 years. In the 1990s, Killefer and his firm, KFA, helped spark the resurgence of the historic core in downtown Los Angeles by spearheading the city’s Adaptive Reuse Ordinance. “As architects and designers, we are committed to the best possible practices to protect the health of Angelenos. Fast-tracking these improvements means important and necessary adjustments can be benefited from more rapidly,” Killefer continued.
California Buildings News • Q4 2021
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California Buildings News • Q4 2021
ABM Industries Acquires SF–Based Able Services
ABM Industries (NYSE: ABM) recently acquired Able Services, a leading facilities services company headquartered in San Francisco, constituting a commercial and institutional buildings services firm with more than 100,000 employees.
The transaction adds scale to ABM’s core businesses and key geographies and bolsters ABM’s engineering and technical services, which are expected to generate almost $2 billion of combined annualized revenue. In addition, Able Services further expands ABM’s sustainability and energy efficiency offerings amid growing demand for environmentally responsible solutions.
Scott Salmirs, President and CEO of ABM Industries commented, “We are pleased to announce the completion of this strategic acquisition and we welcome Able’s talented team to ABM. Together, ABM and Able can more fully address our clients’ needs for innovative and costeffective solutions, supported by our national footprint, comprehensive facility services expertise and dedicated team of more than 100,000 employees.”
ABM (NYSE: ABM) is a leading provider of facility solutions with revenues of approximately $6.0 billion and more than 100,000 employees in 350+ offices throughout the United States and various international locations. ABM’s comprehensive capabilities include janitorial, electrical & lighting, energy solutions, facilities engineering, HVAC & mechanical, landscape & turf, mission critical solutions and parking, provided through stand-alone or integrated solutions.
U.S. Chamber Sees Construction Slowdown
In the face of escalating challenges including worker shortages, materials shortages, and rising costs, commercial construction contractors are seeing a slowdown in the pace of their recovery from the pandemic, according to third quarter data from the U.S. Chamber of Commerce Commercial Construction Index.
Almost all (92%) contractors report some level of difficulty finding skilled workers, but this quarter, 55% indicate high levels of difficulty—a jump of 10 percentage points from Q2. The lack of workers has caused 42% of those contractors reporting difficulty finding workers to turn down work, up from 35% in Q2.
Also, a record 93% of contractors report they are facing at least one material shortage. Prices are also a worry: An alltime high of 98% of contractors say building product cost fluctuations are having an impact on their business, up 35 points year-over-year.
Contractors are facing concerns about supply chains, worker safety, and talent shortages as they look to recover from the pandemic. Contractors say that less availability of building products/materials is, by far, their top concern (62%) related to the COVID-19 pandemic, followed by worker health and safety concerns (38%), and an increase in worker shortages (37%).
“This quarter’s Index findings demonstrate the fragility of our economy’s recovery from the COVID-19 pandemic.
And unfortunately, these trends are not limited to the commercial construction industry,” said U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley. “Across all sectors of the econContractors are facing concerns about supply omy, businesses are facing chains, worker safety, and talent shortages tremendous difficulties finding skilled labor. Supply chain as they look to recover from the pandemic. shortages and rising inflationary pressures are threatening to stop our economic resurgence in its tracks. We need to address our worker shortages, including by doubling legal immigration, and address supply chain issues, including through tariff reductions.” The U.S. Chamber of Commerce Commercial Construction Index is a quarterly economic index designed to gauge the outlook for, and resulting confidence in, the commercial construction industry. The Index comprises three leading indicators to gauge confidence in the commercial construction industry, generating a composite Index on the scale of 0 to 100 that serves as an indicator of health of the contractor segment on a quarterly basis.
California Suburbs Become Renter Havens
California Buildings News • Q4 2021
American suburbs have been demographically reshaped in the past decade—according to Census data gathered by RentCafe. Between 2010 and 2019, the number of suburban renters grew by 22%, which drove 103 suburbs in the nation’s largest metros to flip to a renter-majority population.
California is the state to have the most suburbs that made the switch, 23, with 5 of them concentrated in San Francisco metro. Of the suburbs in San Francisco metro that became renter majority over the decade, San Pablo holds the highest share of renters—60% (and third highest nationwide). Renter population here built up from 47% over the decade. Neighbor city, Richmond, now holds a share of 51% renters, up from 45% in 2010.
Renter population growth indicates that 2 other suburbs in SF metro might change from owner to renter majority in the following years— Bay Point and Pittsburg. Other SF suburbs have seen impressive growth in renter population, despite still being owner-dominated. Newark in Alameda County is no. 1 on this list, with a strong 30% increase in renter share.
In the Los Angeles metro, Beverly Hills makes the list of suburbs to have switched to a renter-majority population. Demographics here evolved from a 49% renter share at the start of the past decade, to a 51% currently. Of the LA suburbs that became renter majority over the decade, Hawaiian Gardens holds the highest share of renters—60%. Renter population here built up from 43% (2010). Hawaiian Gardens is followed by Willowbrook (57%) and San Gabriel (55%).
Renter population growth indicates that 7 other suburbs in LA metro might change from owner to renter majority in the following years, South Pasadena and Monterey Park among them. Many suburbs have seen impressive growth in renter population, despite still being owner-dominated. Diamond Bar is no. 1 on this list in LA metro, with a 75% growth in renter-share since 2010 (from 15% to 25%).
Three San Diego suburbs became renter majority over the decade. Of all, La Mesa holds the highest share of renters—58%, with renter population here building up from 50% (2010). La Mesa is followed by Vista (54%) and Coronado (51%).
Renter population growth indicates that Escondido might change from owner to renter majority in the following years.
Other San Diego suburbs have seen impressive growth in renter population, despite still being owner-dominated, or having made the switch earlier. Bostonia is no 1 on this list, with a strong 23% increase in renter share (from 65% to 53%).
Urban Land Institute Forecasts Moderate Growth
ULI’s three-year economic forecast is for growth throughout all sectors. Total returns are forecast to increase over the forecast period, returning to the moderate rates of the years immediately before the pandemic. The forecast is for returns of 8%, 7% and 7%, in ‘21, ‘22 and ‘23 respectively.
By property type, 2021 returns are forecast to range from industrial’s 16% to retail’s 2%. In ‘23, returns are forecast to range from industrial’s 10% to retail’s 4.3%. Change in vacancy and availability rates differ by property type. Industrial availability and apartment vacancy are expected to show further, although slight, improvement in ‘21 and ‘22 from already low rates in ‘20 and then plateau in ‘23.
Retail availability is forecast to remain unchanged until ‘23, when the forecast is for minimal improvement. Office vacancy is expected to continue the increase experienced in ’20, jumping by 200 basis points in ‘21, remaining unchanged in ‘22 and experience slight improvement in ‘23.
Commercial property rent growth differs by property type, as well. Industrial and apartment rent growth is expected to be strong in both sectors during the forecast period, with an annual average of 4.4% and 4.0%, respectively. Retail rent growth is forecast at an annual average of 1.2% during the forecast period, and office rent growth is forecast at an annual average of -0.17%.
California Buildings News • Q4 2021
Hybrid Work Poses New Security Challenges, Solutions
By Ryan Raskop
The early days of COVID-19 Shelter-in Place (SiP) mandates had many workers and employers alike learning new skills and experimenting with different ways at being efficient. The new workplace standard is increasingly a hybrid work environment in which employees may work part-time in an office and part-time at home. For example, Gensler’s latest US Workplace survey found that “U.S. workers want to return to the workplace while keeping the benefits of flexibility and access to privacy they’ve enjoyed while working from home.” This poses new challenges to many businesses. This article focuses on the security solutions that employees and business owners may employ as we all slowly return to an office work environment.
Electronic Safety and Security Solutions
One of the areas of physical security that has gained popularity during Covid is facial recognition (FR) as an access control device. Because FR software is so ubiquitous in most of our phones and laptops, costs have dropped and reliability improved as an access control device. These devices ensure that the person at the door is the right person and not someone who picked up a lost or stolen card. Quality systems have features that can detect spoofing at the device, such as using a picture of someone’s face to gain access.
Cell phones, as an access control card, are becoming a replacement for the traditional access control card. A secure credential is sent to a smart phone, via a link in an email or text message, when clicked on, the link embeds a credential into the operating system, in a secure manor, that prevents copying and hacking. When the smartphone is presented to a card reader, it uses an encrypted wireless link that unlocks the door, just as a traditional card would. Phone credentialing has an additional advantage, with a longer read range, they can be used from inside of a vehicle to open gates and overhead doors which minimizes touching and the spreading of germs.
Another product gaining momentum while most individuals continue to work from home, are cloud-based access control systems. These systems eliminate the need for on-premise servers and improve security of software applications. When the application is in the cloud, the system is professionally and remotely maintained. The cybersecurity updates, backup copies and general IT maintenance are managed by professional IT personnel. Many businesses that do not have IT resources on staff, or their IT staff workers are remote, may be better off with a cloud-based system, and they can save on upfront capital expenses.
Cybersecurity in an Electronic Workplace
Although relevant before and during the height of COVID-19, cybersecurity is now an even more important consideration, because cybercrime is on the rise. Physical Security systems are vulnerable to attack unless they are properly hardened. Every device we connect to a network is a device that can be hacked. Modern video surveillance cameras contain powerful computers that have the same cyber-vulnerabilities as a desktop computer.
One common cybersecurity problem is surveillance cameras and other devices that are installed with their default passwords. There are specialized search engines that crawl through the internet looking for the address of all devices connected to the internet. Maintaining cybersecurity in the workplace is a game of cat and mouse for manufacturers of IP devices. Responsible manufacturers dedicate research and development funds to stay one step ahead of hackers. They hire white hat hackers to do penetration tests of their software to find vulnerabilities, and then fix them before distributing the product. This is why selecting the right equipment, a reputable manufacturer, and certified installers is so important when implementing your organizations security plan. Working with an experienced security consultant can help achieve your project goals, reduce security vulnerabilities, and ensure that your system is properly installed.
Work from home and hybrid working is here to stay in at least some degree. Businesses should plan for new practices in onboarding new employees and maintaining a safe and healthy work environment. While we all desire flexibility, we also recognize that working in-person and in small close teams will always be a requirement with certain roles.
