Association News: BOMA, IREM, CAA, CMAA, NAIOP, USGBC LA

California Buildings News • Q3 2020

BOMA Annual Event Gave Useful Reopening Advice Virtual Event Featured Sessions on Dealing With the Pandemic

Out of respect for its members’ health, the commercial buildings industry’s leading annual conference went online this year, and it produced experts from many fields who shared insights into how buildings can be made safer and more efficiently operated during the pandemic. The conference’s companion expo also gave vendors opportunities to present solutions and interact easily with customers and prospects.

Addressing an event called “The Reboot,” the Building Owners and Managers Association International chair, Scott Jones of San Francisco, said, “Our personal and professional lives have been turned around,” but added optimistically, “We’re pivoting.”

BOMA President Henry Chamberlain opened the conference by illustrating ways that buildings are reopening safely and making an appeal to Congress to

Scott Jones welcomed attendees to the conference's virtual awards ceremony. provide legal liability protections for landlords and companies who invite tenants back into their buildings. He said throughout the world building managers are posting wayfinding signage, limiting elevator ridership, providing extensive design and operational guidance, sharing resources and working with vendors to meet public health challenges. Chamberlain forecast buildings with increased sensors, touchless technology, reconfigured spaces giving tenants six-foot distances in work areas, hallways and conference rooms, healthy ventilation, biophilic design, plexiglass, deeper cleaning, robots and accommodations for biking to work. And he cited studies that say the overwhelming majority of workers want to spend all or some of their time in workplaces.

Takeways w Tenants are now focusing from the Virtual more on the healthcare ben efits of buildings than their

Conference amenities...“from mechanical filtration to touchless interaction...to surfaces that are antimicrobial,” said Gensler’s Sheryl Schulze, principal, global lead for office building repositioning and landlord services. Noting that only 12% of those surveyed by Gensler said they don’t want to return to the office, she explained, “We’re social creatures. We thrive on connectivity,” and technology, she added, “doesn’t replace being in the same place with a colleague, a friend that you have made at the office.” w Cushman and Wakefield’s President for Asset Services Marla Maloney said tenants are “reacting negatively” to density. “I’m pleased to have a private office. I don’t have to wear a mask (there).” “Our tenants are really going to question this open environment” that had been so fashionable before the pandemic, she said. “One of the things that Covid has taught us is that most jobs can be done effectively from home....but we see that people crave connectivity and interaction.” She said there will likely be a workplace “ecosystem” that is a mix of in-office and work from home. “Offices will continue to thrive but in new ways...a network of virtual and physical places. The purpose of the office is changing,” she explained, more now for necessary interactions and less for tasks that require more individual focus and can be done elsewhere. w Harvard School of Public Health Assistant Professor Joseph Allen is the coauthor of Healthy Buildings, a book that is becoming a popular read among building professionals. He told a BOMA audience that in spite of the fact that we spend 90% of our time indoors, there are no indoor air quality standards. With the airborne spread of Covid-19, that issue is now becoming critical. And beyond concerns about pandemic infections, better air simply makes people more productive and buildings with healthy features more valuable. “Buildings can make you sick or keep you well,” he said, adding that better air filtration and much more ventilation will improve buildings’ health. Public restroom toilets, he also stressed, can spread Covid-19 when fecal matter is flushed, because its residue remains airborne, especially since most public toilets don’t have lids. w Brian Harnetiaux of USAA Real Estate said, in his remarks to a BOMA audience, that landlords need to “overly communicate” with their tenants, because they require quite a bit of information these days to boost their confidence inside buildings. In addition to frequent electronic communications, he said you should have extensive signage throughout your property and suggested that apps are “key to the future.” He agreed with others who said that work from home is productive, but stressed that “an office provides an integral part of what makes a company special.” “Work should be fun,” he said and suggested that building design morph to include more outdoor features. When someone is infected with Covid-19 in your building, Harnetiaux said other tenants have to be informed, but you don’t need to identify the person.

Three California buildings 3 California were given The Outstanding

Buildings Win Building of the Year ®

BOMA Awards (TOBY ® ) Awards at the first-ever virtual awards ceremony in July hosted by the

Building Owners and Managers

Association (BOMA) International. These buildings first won a TOBY Award from their BOMA local association and then went on to compete and win at the regional level. Judging is based on criteria that includes community impact, tenant and employee relations programs, energy management, accessibility, emergency evacuation procedures, building personnel training programs and overall quality indicators. A team of industry experts also conducted comprehensive inspections.

The 2020 TOBY Award California winners were:

Earth Award: 488 Almaden in San Jose. The BOMA 360 Performance Program-designated building is owned by Oracle America and managed by Embarcadero Realty Services.

Industrial Building: Depot Park in Sacramento. The property is owned by BRE Depot Park LLC, a Link Industrial Property, and managed by Cushman & Wakefield.

Suburban Office Park Mid-Rise: The Water Garden in Santa Monica. The property is owned by JPMorgan and managed by CBRE.

California Buildings News • Q3 2020

SFO Exec Wins CMAA’s Industry Excellence Award

San Francisco International Airport exec was honored by the Construction Management Association of America. The CMAA’s Award Program recognizes excellence in construction management practice and honors companies and individuals each year based on merit. A panel of judges reviews each nomination carefully and chooses the best candidate in each category.

Geoff A. Neumayr, chief development officer at the San Francisco International Airport, received the CMAA Distinguished Owner Award. This award recognizes an owner member who understands the value of a professional construction manager on the job and whose consistent actions, over a number of years, have made meaningful and extraordinary contributions to the advancement of the construction management profession. “Each of our award winners work hard to make a difference, and we commend each of them for their achievements and contributions to the construction industry,” states CMAA President and CEO Andrea S. Rutledge.

www.NCCRC.org facebook.com/NCCRC www.CTCNC.org

A Carpenter crew assembling the pre-cut cross-laminated timber (CLT) panels at 1 De Haro Street, the first project in San Francisco to use CLT.

We’re on it.

California Buildings News • Q3 2020

SF-Based Ana Duffy Named to BOMA Executive Committee

Ana Duffy, sustainability analyst with Hudson Pacific Properties in San Francisco, has just been elected to the Building Owners and Managers Association (BOMA) International Executive Committee. She is an active member of BOMA San Francisco. The panel members are responsible for developing the strategic direction and policies for the association. Executive Committee members work with BOMA International officers and executive staff to maximize the effectiveness of BOMA International, while ensuring resources are available to achieve its goals. Executive Committee members serve a minimum term of two years.

Duffy serves as chair of the BOMA SF Energy & Environment Committee and secretary of the Careers Committee. Duffy has participated in an array of sustainability-related advocacy efforts within her BOMA local association, and she is a mentor for

college students interested in commercial real estate through the Careers Committee Mentor Match program.

She told California Buildings News, “I look forward to representing BOMA’s emerging professionals during my two-year term on the BOMA International Executive Committee and plan to voice our unique perspectives and priorities openly and honestly. We have a big stake in BOMA’s Strategic Business Plan as the next generation of CRE leaders, and I intend to connect with emerging professionals across BOMA’s many local chapters in order to thoughtfully inform the Committee’s efforts.”

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Kilroy Realty Named NAIOP 2020 Developer of the Year California-Based Firm Leads in Sustainability, Innovation

Kilroy Realty Corporation, headquartered in Los Angeles, has been named “2020 Developer of the Year” by NAIOP, the Commercial Real Estate Development Association. It is the group’s highest honor.

“Kilroy is a true visionary in commercial real estate, advancing the work environment and creating places of innovation and workplace satisfaction for tenants that span from technology to media to life sciences and beyond,” said Thomas J. Bisacquino, NAIOP President and CEO. “Their commitment to people-first experiences and well-crafted real estate goes beyond just the four walls of a building, and the company excels in creating spaces where businesses, employees and communities thrive. NAIOP is proud to recognize Kilroy Realty as the 2020 Developer of the Year.”

“On behalf of my colleagues at Kilroy, I would like to thank NAIOP for this prestigious award. This recognition is reflective of the talent, drive and collaborative spirit of Kilroy. As a team, we continue to push commercial real estate forward by delivering thoughtful and innovative work environments that support the most dynamic companies in the world,” said John Kilroy, Chairman and CEO of Kilroy.

“Sustainability is at the foundation of everything we do,” Kilroy told California Buildings News. “Our vision is inspired by our commitment to create a resilient portfolio that reduces the environmental footprint of the construction and operation of our buildings. Our plans include people-first solutions that support the needs of today and tomorrow, and our mission in cultivating healthy and prosperous communities continues to be a catalyst for workplace innovation.”

Kilroy Realty Corporation is a publicly traded real estate investment trust and member of the S&P MidCap 400 Index with over seven decades of experience developing, acquiring and managing office and mixed-use projects. The company’s innovative approach to sustainable, modern work environments helps drive creativity, productivity and employee retention for some of the world’s most influential digital media, entertainment, health, research, science and technology companies.

Kilroy is one of the West Coast’s foremost developers and landlords, with a major presence in San Diego, greater Los Angeles, San Francisco Bay Area, and the Pacific Northwest. The company has earned global accolades for global stewardship, building operations, innovation and design. Kilroy owns and manages over 14 million square feet

California Buildings News • Q3 2020

Chairman and CEO John Kilroy. Photo: Dave Lepori photography. of office, mixed-use, including residential, and life science projects and has more than 7 million square feet of projects that are under construction or in the future pipeline. The company’s dynamic portfolio features modern design and advanced sustainability features in vibrant business communities.

Kilroy focuses on high-growth, coastal gateway markets that foster critical masses of pioneering companies and universities, highly educated workforces, thriving transportation systems, and quality of life. Tenants include some of the world’s foremost innovators, including Amazon, Microsoft, Viacom, Netflix, Sony, Dropbox, Neurocrine and Adobe.

The company is listed in the Dow Jones Sustainability World Index and has been lauded by industry organizations around the world for innovation and leadership in sustainable development. Kilroy’s stabilized portfolio is currently 65% LEED-certified with 70% of eligible properties ENERGY STAR-certified. Additionally, Kilroy’s properties are also pursuing WELL and Fitwel certifications as well as IWBI Health Safety Ratings, where applicable.

Kilroy’s human capital development efforts focus on enhancing employee growth, satisfaction and wellness while maintaining a diverse and thriving culture. The company was recently named to Bloomberg’s 2020 Gender Equality Index—recognizing companies committed to supporting gender equality through policy development, representation and transparency.

Kilroy is active in several NAIOP chapters, including NAIOP San Diego, NAIOP San Francisco Bay Area, and NAIOP Washington State. Since 1979 the Developer of the Year award has been presented to a development company that best exemplifies leadership and innovation. Kilroy was selected from an impressive slate of nominees and evaluated by a team of seasoned developers on the following criteria: outstanding quality of projects and services; active support of the industry through NAIOP; financial consistency and stability; ability to adapt to market conditions; and support of the local community.

California Buildings News • Q3 2020

USGBC LA Recognizes Green Government Facilities

Southern California buildings and officials were honored in August by the U.S. Green BuildingLos Angeles Chapter at its annual Municipal Green Building Conference and Expo—successfully held virtually for the first time.

California Assembly member Laura Friedman (43rd District) was presented the “Elected Official of the Year Award” for her ongoing work on behalf of the environment, and specifically the green building movement, including her focus on water quality, energy efficiency, homelessness, affordable housing, and wildlife.

County of Los Angeles received the “Policy Leadership Award” for the release of the Our County Sustainability Plan, an incredibly bold and detailed sustainability plan, based on an innovative, community-based approach including collaborative workshops and meetings that stands as a model for many around the nation.

As the largest community college district in the nation, LA Community College District received the “Municipal Innovation Award” for passing zero carbon goals and for establishing ambitious long-term clean energy and sustainability targets.

The Awarded Municipal Buildings Were:

LADOT Bus Maintenance Facility, 2020 MGBCE “Project of the Year”– LEED Platinum. The facility was designed to reduce GHG by fueling the vehicles with electricity generated by rooftop solar panels strategically placed above the parking structure and within the bus parking area. Some of the highlights of the project are: ability to channel development to urban areas with existing infrastructure and increase community connectivity; brownfield redevelopment; 48% improvement on baseline building performance rating; 75% diversion of construction and demolition debris; 50% reduction in potable landscape water use and 35% reduction in baseline indoor water use.

Los Angeles Department of Water and Power:

w La Kretz Innovation Campus (LA) – LEED-NC v2009, Platinum w Field Services Building 3 (Van Nuys) – LEED-EB v2009, Silver w Valley Headquarters Admin. Office (Van Nuys) – LEED-EB v2009, Silver w Valley Headquarters Training Facility (Sun Valley) – LEED-EB:OM v2009, Silver w Palmetto Construction Headquarters (LA) – LEED-EB:OM v2009, Certified w Central Distribution Headquarters (LA) – LEED-EB:OM v2009, Certified

Other Winners:

w Westside Subway Extension, Section 1 -

ISI Envision, Platinum w C1078 Building 61S (LA) – LEED-NC v2009, Gold w Metro Division 16 Crenshaw Rail Facility (LA) – LEEDNC v2009, Silver w Long Beach Civic Center – Registered LEED EB v4 O&M, Gold w Billie Jean King Main Library – Registered LEED EB v4 O&M, Gold w LADOT Bus Maintenance/CNG Fueling FAC – LEED-NC v2009, Platinum w Van Nuys Fire Station 39 – LEED-NC v2009, Silver w City of Santa Monica, GoSaMo Center – LEED v4 ID+C: CI, Gold w Clean Beaches projects – ISI Envision

The well-attended conference attracts a wide variety of building industry disciplines, including municipalities, utilities, public agencies, architects, engineers, building owners, contractors, non-profits, and manufacturers. USGBC-LA thanks MGBCE Gold sponsors Southern California Edison and SoCalGas, Silver sponsor LADWP, and Bronze sponsors Metropolitan Water District and the Clean Power Alliance.

California Buildings News • Q3 2020

Apartment Landlords Face Possible Severe Rent Control

This from the California Apartment Association: “Proposition 21, the November ballot measure that would return extreme, 1970s-style rent control to California, could result in “a potential reduction in state and local revenues in the high tens of millions of dollars per year over time,” says the non-partisan Legislative Analyst’s Office.

“In a recently released report on the measure, the Legislative Analyst’s Office said ‘some landlords would sell their rental housing to new owners who would live there’, which would result in less affordable housing available to the state’s renters. The office further noted that, if Proposition 21 were to become law ‘the value of rental housing would decline because potential landlords would not want to pay as much for these properties.

“At the heart of Proposition 21, like its predecessor Prop 10, is a crusade to dismantle the Costa-Hawkins Rental Housing Act—the single most vital California law for rental housing providers. Under this 1995 law, cities may not impose vacancy controls—meaning cities may not cap rents between tenancies. Prop 21 would change

that, limiting rent increases to 15% over the first three years of a new tenancy. After that, the local rent cap would apply in full.

“Prop 21 would also do away with CostaHawkins’ prohibition on local rent controls for many single-family homes and condominiums. Under the proposition, local rent controls would apply to these housing types whenever the landlord owns three or more homes—no matter how title is held. Local rent controls also would be permitted for anyone who owns a home in trust, no matter the number of homes. Finally, Prop 21 would allow local governments to impose rent control on units when they turn 15 years old. Currently, housing built after 1995— or earlier in some cities—is protected from local rent control ordinances." Photo: Adobe Stock.

IREM Helps Managers With Pandemic-Distressed Properties

In response to the impacts the COVID-19 pandemic Turning around a distressed asset requires a complete underis having on commercial real estate, IREM (Institute standing of how to evaluate and resolve key issues and chalof Real Estate Management) has lenges unique to each asset. IREM’s new launched a new certificate program online certificate course will provide to train property managers in how to best manage distressed properties. Owners and investors will solutions and guidance for common situations encountered and best practices

While there are multiple ways need qualified real estate to employ when dealing with distressed a property can go into distress, the properties. coronavirus pandemic has impacted managers to develop a plan to “While the far-reaching impacts of commercial real estate tremendously. restore properties to financial COVID-19 on commercial real estate Office buildings sit almost empty as are yet to be known, the likelihood employees work remotely and tenstability and eventually make of having to turn around a distressed ants rethink the future of the workplace and many retail and restaurant them a performing asset. property is very high in today’s circumstances,” says Regina Mullins, director, tenants have closed their doors for Cushman & Wakefield. “Educating good. Owners and investors will need property managers on the unique cirqualified real estate managers to develop a plan to restore cumstances that go into managing these assets, will help to properties to financial stability and eventually make them a prepare them for the inevitable and provide property owners performing asset. with the confidence that their buildings are in good hands.”

Managing distressed properties can be one of the Real estate managers interested in taking the course can greatest challenges a real estate manager will encounter. sign up on irem.org.