How Green Can We Get?
March/April 2015 • $5
New Products, Designs & Strategies Offer Hope
In this Issue... Smarter Buildings’ Technology Problems With Title 24 • BOMA Int’l Comes to LA
Features Tell Us What’s On Your Mind Our editorial mission is to focus on the people, companies, issues and products involved in the design and operation of California buildings. We want this magazine to be your platform for exchanging information that improves the way facilities are built and run. From greenfield development to retrofit design to products that ensure safety, comfort, health, productivity and simple enjoyment…those are the topics that interest our readers and advertisers. So, if you have thoughts on any of these topics, we want to hear from you. Send me an email or join the California Buildings News LinkedIn Group and share your thoughts. If there is an issue that’s troubling you, something you’re proud that your company has done recently or just a simple suggestion, let us hear from you. We want our publication to be the industry’s communications platform in California, reaching tens of thousands of industry professionals from Sacramento to San Diego. The magazine is distributed to readers via direct mail, dozens of buildings’ association chapters throughout the state, emailed to thousands more and posted on business-to-business social media forums. We’ll do our best to help you get your word out, either through the editorial or advertising pages.
Promoting Your Business— In Person Getting brand recognition in print and online trade media may be the most cost-effective tool in a company’s marketing effort, but, let’s face it, nothing is more fun than attending conferences and expos and socially interacting the people with whom you want to do business. It’s also the best place to do market research. That’s why events like the American Institute of Architects national conference this May in Atlanta, the Facilities Expo’s Anaheim conference the same month, the Building Owners and Managers Association International’s annual conference in Los Angeles in June and so many other such events are such valuable experiences. (You can also sneak away to do a little sightseeing.) Attending sessions conducted by thought leaders in specific fields or wandering the expo floor and learning about useful new products and services is educational, interesting and ultimately very profitable for your company. You can also benefit from regular local chapter meetings of the International Facility Management Association (and IFMA’s big show this year in Denver) as well as the Association for Facilities Engineering’s lunch-and-learns and the AEC-focused programs of the Society for Marketing Professional Services. And if you really want to ramp up your game, get a trade-show booth and open up shop where hundreds or thousands of targeted prospective customers can learn about your products or services. Henry Eason, Editor (henry@easoncom.com)
4
Title 24 Can Be Costly
6
How Green Can We Get?
10
Smart Buildings Tech
Rooftops in Our Future?
15
CA Construction Booms
How Not to Get Sued
22
14 17
Association News: BOMA Int’l Expo in LA, IFMA SV Energy Outlook, Green Janitors
California Buildings News Team Ellen Eason, Publisher ellen@easoncom.com Henry Eason, Editor henry@easoncom.com Contributing Editors Zachary Brown, CBRE Bob Eaton, Eaton Hotel Investments Jessica Handy, CodeGreen Solutions David Hysinger, San Francisco State University College of Business Rich Lerner, Construction Consultant Katherine A. Mattes, Real Estate Consultant Larry Morgan, Facilities, SAP Carlos Santamaria, CEES-Advisors
Advertising Information Ellen Eason, ellen@easoncom.com 415.596.9466 © Copyright 2014 Eason Communications LLC PO Box 225234 San Francisco, CA 94122-5234
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4 California Buildings News • March/April 2015
Title 24 May Be Costly and Difficult to Implement Government Needs to Reassess Its Actual Costs and Benefits By Matthew Hargrove The California Energy Commission’s 2013 Building Energy Efficiency Standards — or simply referred to as “Title 24” or “Energy Code”— are historically the greatest increase in stringency (27%) since the beginning of the California energy code. If you have done any type of construction — from a simple tenant improvement to a major renovation — you may have felt the impact of this most recent adoption. Most of the items in the new code are non-controversial and have proven easy to adopt. However, in order to get such large theoretical increases in energy code stringency required mandated changes that are not necessarily proven or widely adopted construction practices and/or are requiring equipment that is not widely available. These new requirements that are not market-proven, accepted in the building code, and in many cases not vetted for their intended use by the building and inspection trades, have proven to have real cost increases, in many cases to a factor of four over what the Energy Commission based its adoption on. Some of our members are reporting actual costs of $10-$14 per square foot to meet the lighting control standards in retail and office buildings. At the time of adoption, these costs were estimated to be $3 per square foot. To wit:
w Light controls have driven prices up $4-7 per square foot just in material cost. w Installation of the mandatory controls is coming in about $3-4 a foot based on the project design. w Mandatory acceptance testing depending on project size is $1,000 minimum. w Mandatory engineered drawings (around a $1 square foot on average). w Light fixture costs are up 10-20% based on mandatory dimming features. w HVAC costs are going up due to necessary control upgrades also. This is a huge expense driver and is having unintended consequences once these new costs are calculated. This “sticker shock,” in some cases, is causing planned energy upgrades to be abandoned altogether. In other instances, companies are wastefully being required to replace lights that have never been used and are only a couple years old. A primary goal of California Long-Term Energy Efficiency Strategic Plan is to reduce greenhouse gas through energy efficiency. The greatest opportunity to reduce energy consumption in commercial buildings is to improve the energy efficiency of existing commercial buildings, and the commercial real estate industry supports efforts to cost effectively improve energy efficiency in California’s commercial buildings and emphasizes that the Energy Commission should focus their efforts on reducing the already drastic cost impacts of the 2013 Standards by offering reasonable alternatives for compliance, dialing back some of the requirements that are proving not to be cost effective, and focusing more efforts on education and training. We have offered the Commission opportunities to “ground truth” assumptions that were used during the original adoption, and we hope they will look at the actual economic impacts of the regulations and see if they align with what was presented during the adoption to assure they are indeed cost effective. Our industry believes that a realistic cost-benefit analysis and adopting only regulations that are truly cost effective are essential in assuring the state continues to be a leader in energy efficiency while not hurting project viability or dissuading some projects from happening because of high costs and low-energy savings. (Continued on page 8)
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6 California Buildings News • March/April 2015
How Green Can We Get?... New Products, Designs and Strategies Offer Hope With buildings using about 40%
of all energy in the U.S., significant reductions can decrease operational costs and lessen damage to the environment—but how much reduction is realistic? The mantra Zero-Net Energy is getting louder, but so far it is still by far the exception to the rule. The goal of greener buildings is more than just energy efficiency, as the standards evolve. Buildings must also be healthier for occupants, safer, more productive and desirable. And these goals are more within reach, according to commercial real estate executives, government experts and others at the forefront of sustainability. “Over the next decade, buildings will become more efficient, more productive, and more engaged with their occupants than ever before. Energy efficient, cost-effective technologies will continue to advance the market, as data on a building’s energy performance becomes more broadly available,” says Sonia Punjabi, Fellow, U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy. “Simultaneously, new tools will allow architects and building owners to integrate these technologies and data into the design, construction, and operation of buildings, driving more invest in energy efficient construction. Equipped with these advanced tools and technologies, buildings can more easily and cost effectively reach net zero energy status,” she says. The U.S. Department of Energy (DOE) recently issued a request for information seeking public input on the definition of Zero Energy Buildings (ZEBs) to ultimately develop one standard definition. A broadly accepted market definition of ZEB boundaries and metrics is foundational to efforts by governments, utilities or private entities to recognize or incentivize zero energy buildings. DOE sought comments and information related to the zero energy definitions, nomenclature and implementation guidelines. Its findings will be published soon. Ambitious goals must, however, confront the reality Interior project by RMW Architecture & Interiors shows custom skylights. of budgets and a vast national buildings’ infrastructure Photo credit: Bruce Damonte. that is very far from being green. Hines is a leading CRE firm that’s committed to sustainability, with commercial assets in 121 cities around the globe and throughout California. Its sustainability officer, Gary Holtzer, answering the question “How Green Can Building Be?,” says, “The answer depends on the
7 California Buildings News • March/April 2015
building we are discussing. The industry has created green, self-sustaining netzero buildings. However, green buildings must perform across a host of metrics, including financial ones. A different question is how green can commercially viable buildings be? Technology exists to recycle water more than is currently common. Cities are working toward 100% diversion of trash from landfills. Industry leaders are moving closer to more environmentally-friendly energy production. Creating 100% sustainable buildings will, among other matters, depend on how we deal with our existing energy infrastructure, utilities, support for R&D, and pricing of current energy sources.” Zachary Brown, CBRE Asset Services Group’s director of energy and sustainability, asked how green can we get, says, “In terms of new construction, the sky is nearly the limit in terms of how sustainable a building can be — especially if money is of no concern. In contrast, existing buildings experience diminishing returns if the goal to be green isn’t carefully considered against the deferred maintenance schedule of base building equipment and systems, tenant roll-over, the management team’s skill set and fiduciary responsibility to the owner or client.” Ultimately, we can only achieve greater levels of sustainability if the commercial real estate industry and tenants invest in sustainability. It also depends on the extent to which companies serving the industry innovate products and services that help Top: interior project by RMW Architecture & Interiors with custom skylights. Lower: ZNE project make building owners, operators designers and contractors achieve these goals. The good by RMW Architecture & Interiors at 435 Indio Way in Sunnyvale. Photos: Bruce Damonte. news is that corporate and government R&D As architect Marc Kushner puts it in the just-published efforts throughout the world are resulting in a Future Architecture: 100 Buildings, “You live in a house, you host of products and services that will make buildings work in an office, you send your kids to a school. much more sustainable in California, arguably the These places aren’t just the backdrop to your life, they greenest marketplace in the world. (See page 10 for shape your life — they define who you see, what you see, an article on California’s smarter buildings.) and how you see it…The average American, for example, (Continued on page 26)
8 California Buildings News • March/April 2015
Title 24 Difficulties
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(Continued from page 4)
Furthermore, many of the calculated cost savings on many of the latest Title 24 changes will never be realized, because they are 10-year or longer payback periods (which, in many cases is longer than the useful life of the upgrade itself). On behalf of the commercial, industrial, and retail real estate sectors, we will continue to work with the state regulators in an effort to assure that California continues to set the national benchmark on efficient buildings while making sure those standards are costeffective, technologically feasible, and attainable by businesses in this state. n
Hargrove is the Vice President for Governmental Affairs of the California Business Properties Association. CBPA is the designated legislative advocate for the International Council of Shopping Centers (ICSC), NAIOP of California, the Commercial Real Estate Developers Association (NAIOP), the Building Owners and Managers Association of California (BOMA), the Retail Industry Leaders Association (RILA), the Institute of Real Estate Management (IREM), the Association of Commercial Real Estate – Northern and Southern California (ACRE), the National Association of Real Estate Investment Trusts (NAREIT) and the California Association for Local Economic Development (CALED). CBPA currently represents over 10,000 members, making it the largest consortium of commercial real estate professionals in California. For more information please visit, www.cbpa.com.
9 California Buildings News • March/April 2015
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10 California Buildings News • March/April 2015
Smarter Buildings Technologies Give Tenants An Edge...
California Takes the Lead in Tech-Operated Facilities T
he smartest buildings are at the cutting edge of advanced communications. One of the biggest attractions at the recent Technology Convergence Conference in Santa Clara was Teladata’s presentation on audiovisual trends. Communications-driven AV represents one of the most promising technologies that can drive productivity and reduce travel and officing costs by linking workers in real time across town or across the world and providing them with wonderful tools. Teladata staffers Matt Halpin and Nichole Stephenson drew the curtain back on the fascinating, complex and not-for-thefaint-of-heart world of technologies that control telecom, data centers, audiovisual appliances, building technologies, facilities IT and security. Done right, such convergences give tenants an amazing edge over competitors in dumber buildings. Done wrong, and you have people running around screaming for tech support. The Teladata consultancy, the choice of a long list of top Silicon Valley firms, works to help companies that need advanced building technologies select the right vendors, then they help firms install and implement these ever-evolving smart systems. What makes building communications smarter? • Collaboration tools that allow people to work together across any distance using shared screens and real-time communications devices • Asset and building management tools • Interactive digital signage throughout a facility that guides tenants and visitors • Furniture integration strategies that fix technologies into tables, desks, walls, etc. • Wireless audiovisual technology throughout the building • Multipurpose briefing centers supporting training and high-end presentations • Elaborate exhibits that educate and promote using interactive graphics • Multi-purpose rooms used for meeting, training, entertainment, etc.
11 California Buildings News • March/April 2015
Smart Buildings Products, Providers Give Buildings 21st Century Tools One of the most exciting developments in the built environment is the number of companies and consultants who are innovating ways to dramatically increase building performance. Government, university and private sector efforts are coalescing to transform the way buildings operate. Smart buildings technology is booming. A recent Navigant Research report says revenues from building automation products and services will exceed $85 billion globally by 2023. It reports, “The devices and systems that control a building’s lighting, maintain its climate, and ensure the security and safety of its occupants were, until fairly recently, rudimentary. Today, these commercial building automation systems (BASs) are increasingly embedded with computing and digital communications tools that have transformed their capabilities to improve energy efficiency and optimization and enhance occupant comfort and health.” Reliable Controls, whose solutions are at work throughout California, is a leader in this field. “The simple, flexible and sustainable hallmarks of the Reliable Controls MACH-System provide enduring solutions that empower building managers to achieve operational excellence with minimal environmental impact. Our freely programmable BACnet controllers and suite of engineering and reporting software are designed, developed and manufactured at our ISO9001/14001 LEED Platinum certified facility,” says company Executive Vice President Thomas Zaban. One of the most promising new areas is submetering spaces. “According to the U.S. Environmental Protection Agency (EPA), commercial buildings account for almost 40% of total U.S. energy consumption—and up to 30% of that is wasteful. Initiating programs that include building submetering to provide real-time data and using powerful analytics available in advanced energy management software creates compelling opportunities for better efficiency, performance and profitability,” observes Tim Van Slambrouck, DENT Instruments vice president.
“As the sustainability landscape becomes increasingly important, it also becomes more complex,” Mark Kelly, president of Able Services, San Francisco. Software As Well As Hardware Innovations Evolving Rapidly Able Services is a San Francisco-based company that is helping buildings become greener and more efficient through technology. “As the sustainability landscape becomes increasingly important, it also becomes more complex. SeaSuite is a cloud-based sustainability software solution to manage the certifications, legislation, and rising energy costs that property owners and managers face today. Able clients have seen an average 23% reduction in energy consumption by using SeaSuite,”says Able Services President Mark Kelly. Enormous opportunities exist to enhance buildings’ “intelligence.” (Continued on page 29)
Technology trends graphic courtesy of TEECOM, an Oakland-based engineering firm
12 California Buildings News • March/April 2015
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14 California Buildings News • March/April 2015
AEC Report
Builder Sees A Future in Rooftop Development Says Open-Air Meeting Space Can Add Value to a Property
Q&A with Craig Rossi, President, Rossi Builders, San Francisco Your firm builds all sorts of interiors and exteriors, including appealing rooftops. With tenant space in such demand, does it make sense for buildings to make greater use of their rooftops…and can this be made practical? Many tenants are now interested in buildings with common area where they can hang out, recreate, socialize, etc. So when buildings have spare spaces that might not be ideal to lease, they are converted to cool common areas. We have seen where buildings have a roof area large enough and away from the mechanical systems, the investment is made to do a roof garden. This makes for a more attractive building and increases demand. We have seen fitness areas added for the same reason. In other words, when landlords have space suitable for a roof garden, they can convert the previously unusable space into common area which allows them to recalculate the rentable area of the building, which then increases the value of the building. Or if the roof is adjacent to a particular tenant, they can lease the garden space to that tenant and get revenue that way. (Photo above: rooftop terrace at 100 Montgomery Street in San Francisco.) We hear that California contractors aren’t so concerned about getting work as they are about getting enough qualified people to do the work. Is this becoming a problem, and what are some solutions? I think this is more of a long-term problem, as the trade force seems to be aging, and you don’t see many young workers coming in. It is complicated and covers so many issues, but essentially the trades are a good option for young people to consider for a career, but I don’t think many in the Bay Area realize that. As for now, everyone is busy, but I don’t see jobs dragging out for lack of personnel. On the open office issue, is there some pushback from employees packed like sardines into offices who feel lack of privacy is interfering with their concentration and productivity? If so, what the solution? I have not heard of that pushback as we keep seeing a lot of open floor plans. Although rents have gone up, when adjusted for cost per employee, it works for many businesses. In addition to the open small work station approach, there is now more recreation/ collaboration space than I have ever seen, so the tenants and design professionals seem to have worked out a very good balance that helps the tenants retain talent.
15 California Buildings News • March/April 2015
CA Construction Boom Triple National Average California is projected to construct buildings of every type with a value of $64.9 billion in 2015 over 2014, at $49.5 billion. That’s a 31% increase, compared to the 10.5 national average of construction growth, according to CMD, a strategic partner of the American Institute of Architects. The Los Angeles metro area leads the Golden State’s growth with $13.1 billion in projected growth over last year’s $9.6 billion in construction, followed by the San Francisco Bay Area at $7.1 billion projected construction in 2015, $6.7 billion in the San Diego area, $4.7 billion in the Oakland area, $3.7 billion in the Sacramento region and $1.7 billion in the Fresno area. Construction starts in the United States are expected to increase 10.5 percent in the coming year and 4.4 percent in Canada, according to CMD’s latest quarterly forecast report. Sustainable wage growth, increased business spending and an expanding manufacturing market are contributing to the strong forecast. The report, which combines CMD’s proprietary data with macroeconomic factors, showed a strong fourth quarter for the U.S. construction market, with total starts rising 5.9 percent in 2014. “The outlook for the U.S. economy continues to improve, and we are expecting increases in both business and consumer spending in the coming year,” said Alex Carrick, CMD chief economist. “Evidence of sustainable wage growth and falling inflation due to declines in oil prices should translate into growth in both residential and non-residential building construction.”
According to the report, the demand for physical space for new manufacturing construction is on the rise as U.S. firms continue to re-shore their operations. Lured by low energy prices and a declining competitive advantage in developing countries (notably China), the U.S. has once again become an attractive destination for high value-added manufacturing. In the residential sector, multi-family residential starts remained relatively strong as millennials continue to choose high-rise apartments and condominiums in urban centers rather than suburban, single-family construction.
California Construction Activity Jumps Year
2013 2014 2015 *
Statewide
45.1
49.5
64.9**
Fresno MSA
1.7
2.2
1.7
LA MSA
9.2
9.6
13.1
OAK MSA
2.9
3.3
4.7
Sacto. MSA
2.5
2.8
3.7
San Diego MSA
4.3
4.9
6.7
San Fran. MSA
4.8
6.0
7.1
*Projected
**Numbers in billions
Source: CMD Construction Starts
Buildings People
Left: SMPS San Francisco members enjoy the SMPS Membership Drive Event at Umpqua Bank: Heather Jarrett, Langan; Ellen Eason, Caliifornia Buildings News; and Ellen Knobeloch; Habitec. Photo credit: Paul Morraille, www.pmstructure. Above: AIA San Francisco members visit U.S. Rep. Nancy Pelosi’s office on Capitol Hill. From left: AIASF 2015 President Irving Gonzales, AIA; President-Elect Aaron Hyland, AIA; and AIASF Executive Director Jennifer Jones. Credit AIA-SF.
16 California Buildings News • March/April 2015
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17 California Buildings News • March/April 2015
How Not To Get Sued in 2015
A Resolution Property Managers Want To Keep By David Hysinger In our litigious and highly regulated society, it can seem like there are an endless number of ways to end up in court. And we’re not talking about jury duty; we’re talking about being sued, and it can be the property manager’s least favorite thing to consider. At IREM-San Francisco’s February luncheon, a panel of attorneys advised “How Not To Get Sued in 2015.” “A well-written lease is a property manager’s best friend,” said Puente Singh, an attorney with Kimbel, Tirey & St. John. She also informed the audience that a new law taking effect this year, AB 2747, clarifies that leases can be electronically signed, even if the lease contains references to a security deposit, a point of law which case precedent had left unclear. But the lease is often just the beginning of a more extensive landlordtenant relationship. Panelist Cliff Horner, who recognized that anyone can file a lawsuit for about $200, had another piece of sage advice: “Insure it if you can.” Why not pass the cost of litigation onto an insurance company, and the attorney it will hire on your behalf? Horner noted that insurance defense counsel are paid by the carrier and usually specialize in the type of litigation covered by the policy. Both of those are good approaches to risk management. From fair housing laws to environmental regulations and plain old “garden variety” sidewalk slip-and-falls, the ways a property owner can get sued seem to multiply faster than managers can keep up. Keeping one step ahead of the court system really means staying away from it entirely. One way to avoid claims, for example, under the Americans With Disabilities Act, is to hire a certified ADA specialist to survey one’s property to spot violations which could lead to a claim and which are obvious to an informed observer. Some ADA complaints arise from conditions of the property, which are visible from the street. Claimants have been known to simply walk or drive by the property and claim an accessibility violation, even though no actual inconvenience resulted. These “drive-by lawsuits,” as Ms. Singh called them,
have become more common in recent years. And they can be difficult and expensive to resolve. The panelists agreed that the property manager’s risk management strategy should include the following: Broad commercial general liability coverage with the highest limits affordable, builders’ risk and performance bonds for all work done on the premises, and extensive awareness of “what tenants are doing in their space.” The owner canFrom fair housing not laws to environmental delegate many forms of regulations and plain liability to tenants, such as toxic cleanup costs, old “garden variety” and security measures. sidewalk slip-and-falls, In many cases, responsithe ways a property owner bility can be shared with tenants but not passed can get sued seem to on completely. In addition to the multiply faster than types of claims tenants managers can keep up. can bring, property managers should also have procedures in place for investigating and documenting incidents on the property. “What you say will be used against you,” warned Horner, who explained that property managers should be careful to minimize verbal unwritten interactions with claimants about incidents on the property. The importance of good documentation cannot be overstated. When cases get to court, everything is played back in slow motion. If an event is described in writing, then the written word will often be more credible than a personal recollection given several months or years later. Good photographs of the circumstances in question can be even better than written verbal reports because they allow judges, jurors and arbitrators, who will decide the case, to evaluate the facts for themselves, leaving less to fading memories and debatable credibility of the persons involved. Managing litigation risk also includes one often-overlooked measure which property managers are especially skilled at: Keeping tenants and visitors to the property satisfied. Good interpersonal skills and good relationships with those on the property go a long way to keeping incidents and disputes from getting out of control and ending up in litigation. In the end, a smile and an accommodation, which quickly resolve any dissatisfaction, are some of the sharpest weapons in the CPM’s risk management arsenal.
Hysinger is an attorney and a lecturer in finance at San Francisco State University, where he teaches commercial real estate and land-use development.
18 California Buildings News • March/April 2015
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Hotel Development (Continued from back page) Where are we in the current development cycle? Opinions vary. My sense is the opportunities will continue as long as interest rates remain in check. Recent sales across the country reflect notable values and cap rates at an all-time low even in the secondary markets. The question is sustainability of this pace and the likelihood of the triggers which could slow it down. There is a notable pipeline under development which will impact the supply in the key markets, construction costs have escalated, the current strength of the U.S. dollar could have an impact on foreign travel to the U.S. and upticks in interest rates all are likely to have their own impacts. With hotel values escalating as buyers compete for existing quality assets, ground up hotel development has recently become somewhat more appealing as the cost to develop has recently begun to become less expensive that acquiring existing assets albeit the timeframe is longer. My view is there is a longer runway for development with the caveat that the far-reaching values we have seen recently may be reduced somewhat but still at acceptable levels. Are you working primarily with in-state architects and contractors? Typically we make our selections on a case-by-case basis depending on the type of project and location. We are less sensitive to the location of the architectural group as long as they have experience in the market we happen to be developing in. Relative to the general contractors, we typically like to see a contractor either in the market or in close proximity to the market we are developing a project so there is notable coverage there.
What role does technology play in your new hotels? As the profitability of select service and compact full-service hotels become dominate in hospitality FLUEKEEPER.COM PUNCHDECK.COM development, the focus will be on guest interaction via delivery of higher levels of technology. Guests toll-free: +1-866-400-8107 who frequent these types of hotels are typically more inc. “independent” in their travel. They book their travel, rental cars, entertainment, restaurant reservations, etc. all online. Therefore, the opportunity for hotel staff to interact with the guest beyond check in and check out (even that is becoming more limited with many hotels establishing self-service kiosks) becomes more and more limited. Bridging that gap in a technological way that keeps the hotel connected to the guest will be an industry focus.
DACS
What are the challenges in a hotel development process, specifically in getting public approval? California as a general rule is a very difficult development environment. Every municipality has its nuances and pet issues. The process becomes less difficult the fewer the surprises which are presented along the way so my efforts typically focus on understanding the issues, the process and the timeline to achieve non-appealable entitlements and a building permit. My experience has taught me (Continued next page)
19 California Buildings News • March/April 2015
The top-down model... 100 Montgomery - We gave this building an overall boost with these components: a unique rooftop garden, an eye-catching lobby, and a convenient workout space. Amenities add to the building’s value, and Rossi works to make spaces functional and appealing. It just makes sense.
Hotel Development (Continued from previous page) that getting the architect and civil engineer in the process as early as possible mitigates a lot of potential surprises. In cases where developing along the coastline, California is relatively unique in that another layer of complexity via approval from the California Coastal Commission is required. The CCC has a completely different set of objectives and requirements from the local municipality. All are elements which can be managed, but typically with up to three levels of approval that do not usually run concurrently, the development timeline is impacted. As a land use, how do hotel land values compare/compete with other uses? Typically residential, retail and office can pay more for land than can hotel uses. Hotels become effective components of Rendering of new Hyatt project in San Jose. Site will have both a Hyatt House mixed-use projects where either the mixed-use developer sees and a Hyatt Place. Construction to start in fall 2015. Photo courtesy of Hyatt. the value a hotel (and its guests) can bring to the retail uses, or where a municipality is requiring hotel uses as part of a larger approval for a mixed-use project for both balance to a mixed-use project and for the benefit a municipality will get with the transient occupancy tax a hotel will generate. More and more mixed-use projects are being designed with the hotel component incorporating ground floor retail (in an eventual condominium regime) to preserve the value for the mixed-use developer. Is mixed use viewed favorably by hotel developers? Mixed-use projects are considered very favorable to hotel developers as these mixed-use centers become quasi-destinations in their own right. Hotels are a good reciprocal use with retail to create value within a retail development and the retail becomes an amenities center for the hotel where guests can park one time and walk to local retail, entertainment and restaurants. n
20 California Buildings News • March/April 2015
Working for Your Boss…And Your Industry: How to Weave It All Together By Kathy Mattes There are many people who devote a great deal of their time, expertise and energy to serving the professional associations that support our industry. How and why do they do that? I hope to provide some insight into why it is not only important to the industry for people to volunteer their time, but there is a great deal of benefit to be gained by doing so. The first opportunity I had to get involved with a professional association was when Commercial real Estate Women (CREW) was formed in San Francisco in the mid 1980’s. I joined the organization when it was about six months old, along with other property and asset managers, lawyers and others working in the commercial real estate industry. The organization was small and informal at that point, with no staff, so everything was done by the members. I remember having difficulty balancing my work responsibilities with the work that I volunteered to do for CREW. I became its president a few years later, and the balancing act only got more difficult. There was a very important perspective on this kind of volunteerism that I was missing, and it took me a few more years to get it. Whether volunteering for CREW, BOMA, IREM, NAIOP or any other professional association, you are not taking time away from your job, but rather expanding how you define your job. Let me explain. It is important to understand that these organizations exist to serve you. They offer educational programs, informative luncheons, networking opportunities and relationships that will benefit both the work you do for your company and your career as a whole. They also offer opportunities for public speaking, leadership experience through committee work and board positions, as well as exposure to
others working in the industry. Sarah MacIntyre, immediate past president of BOMA San Francisco, had a similar experience in terms of finding time to volunteer during her early years in the industry. In 2007 she made a conscious decision to get involved, and joined BOMA’s Energy and Environment Committee. “The greater community opened its doors to me,” she said, and she was “awarded in spades” for the time she committed to the organization. The initial benefits included having access to cutting-edge information and best practices, which she took back to the building she managed. As she took on the committee leadership role and then joined the BOMA Board, she met higher-level people within the industry and developed personal relationships with them. She now works at Kilroy Realty, and met Mike Sanford (with Kilroy) while on the board. “People have a chance to see you in a leadership role and it makes it easier for them to hire you as a result,” she said. Sarah also suggested that those in an assistant manager role should speak with their employer and get buy-in for their participation in whatever organization they choose. Offering to bring back new information to the entire staff makes it clear that the company will benefit from saying Yes. And you will be in a position to gain leadership skills that may not be immediately available at work. The larger professional associations have staff, and this makes it easier than it was many years ago. The key staff members are professionals themselves and know how to make good use of volunteers. While the executive director actually runs the day-to-day operations of the organization, the ED reports to the board. The ED, for example, knows that the board is there to serve the organization by setting the strategic goals and providing guidance on key issues (Continued next page)
21 California Buildings News • March/April 2015
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Weaving it Together (Continued from previous page) facing the industry. This provides board members with an opportunity to gain experience and knowledge about issues facing the industry, long-range planning and leadership practices from other leaders that they can bring back to work. At work, you may not have an opportunity look at long-range planning, but the experience gained on a board can be brought back to your employer and make you a more valuable manager within the company. Weaving it all together… So, how do you separate your volunteer time from your work time? They really are the same, aren’t they? My focus in recent years, particularly at BOMA where I have served in many leadership roles, has been to consider which responsibility needs to be addressed right now. Is it a work issue or a professional association issue? Since they are both part of who I am and what I do, I deal with the most pressing issue. n
Mattes is a Real Estate Consultant. Find her at www.kathymattes.com.
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22 California Buildings News • March/April 2015
Association News
Gain a Competitive Edge... Attend BOMA International’s Conference in Los Angeles
W
hen the world’s largest and most influential commercial real estate association holds its annual conference and expo June 28-30 at the Los Angeles Convention Center, every type of California company involved in the industry will have relatively easy access to the brightest minds in the industry — and rewarding networking opportunities. The Building Owners and Managers Association’s Every Building Conference & Expo is commercial real estate’s most important event of the year. “It is more than a collaborative meeting of the industry’s best minds. It’s an impressive display of innovation, creativity and best practices—a critical, career-advancing opportunity for property professionals who are The BOMA International Conference will be held at the Los Angeles Convention. Center. serious about crafting their success in the Photo courtesy of the Los Angeles Convention Center, AEG Facilities. ever-changing, high-stakes business of office, industrial and mixed-use property manageBOMA Californians Welcome Attendees ment,” says BOMA International. to the Every Building Conference Specifically, its numerous programs and expo exhibits This year, as an added attraction, BOMA Greater Los will demonstrate how you can: Angeles will be celebrating 100 years of service to its comu Acquire new and best practices for harnessing innovamunity with what’s sure to be an LA-style glamorous party tion, resulting in better business and smarter buildings. for attendees. u Confer with technology specialists and business proTo view its welcoming video, visit https://www.youtube. fessionals to find creative new ways to save money, add efficom/watch?v=iNtaHz98z2Q&feature=youtube ciencies and increase property values. As BOMA/GLA President Michele Ware says in the video, u Learn from industry experts and top achievers and “BOMA represents more than 155 million square feet of the gain valuable strategic insight into the market’s challenges Greater Los Angeles Area” and adds that the restructured and developments. organization is better serving the sprawling LA metropolis u Make business- and career-building connections to with regional councils that focus on the specific needs of strengthen your professional network and expand your cirvarious business neighborhoods. cle of influence. “Come join us and network at one of the most important The conference draws building and property managers, events of the year with your fellow real estate professionals asset managers, engineers, facility managers, owners and right here in the ever-evolving City of Angels,” says Stan investors, developers, architects, contractors, leasing agents, Bochniak, LA-based ABM Industries’ regional marketbrokers and a host of companies that provide products and ing director. “If you haven’t been to LA in a while, you’ll services to the industry from China to Europe and everybe blown away with the revitalization of Downtown and thing in between. Hollywood.” He adds that at the Every Building Shows openThe conference investment? To attend, $695 before ing party, “We’ll be dancing in the streets.” May 1 for BOMA members and $795 for nonmembers— Commercial real estate professionals from around the or $795 and $895, respectively, thereafter. state are making plans to attend. For more info about exhibiting and other features: http:// BOMA San Diego President Kristin Howell, who is also www.bomaconvention.org/boma2015/public/enter.aspx
23 California Buildings News • March/April 2015
the assets they own and manage. Commercial property prosenior portfolio manager of Meissner Jacquet Commercial fessionals gain value by staying current on the ever-evolving Real Estate Services, says, “I look forward to networking range of products and services available to help them deliver with my peers from around the country. The trade show at value to owners, investors, and tenants.” He predicts a very the annual conference is a great opportunity to see the latest strong turnout from California at the conference. in building services technology and to meet new service Stephen Shepard, executive providers as well as connect with director of BOMA Oakland/East existing service providers. I always “Come join us and network at Bay, encourages CRE professionals enjoy the education sessions one of the most important events to attend the BOMA International offered—they always provide conference, saying, “The management a different perspective.” of the year with your fellow real strategies learned through quality “BOMA International’s Every estate professionals right here in professional development and conferBuilding Show is totally solutionsoriented,” says Marc Intermaggio, the ever-evolving City of Angels,” ences should save our owners money and achieve a high-level of success executive vice president of BOMA in our roles. We expect our doctors, San Francisco. “Besides being a show- says Stan Bochniak, LA-based lawyers, and teachers to continue case for the newest efficient building ABM Industries’ regional marketlearning about the latest innovations, operations strategies, products and ing director. “If you haven’t been solutions, and research in their fields. services, there are mini-workshops It is absolutely critical for us to do where one can do on-the-spot probto LA in a while, you’ll be blown the same. Those we serve deserve lem solving and learn the best propaway with the revitalization of our best every day, too! As memerty management practices serving bers of the CRE profession it is our today’s leading real estate firms from Downtown and Hollywood.” responsibility to provide the best around the globe. service possible to our tenants. “Exhibitors derive value by gainOne of the best ways we can work toward that end is by ing understanding of the challenges faced by their clients and potential clients, and partnering with them to enhance educating ourselves.” n
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ADMISSION TO THE EXPO IS FREE, EVEN IF YOU CAN’T COME TO THE CONFERENCE. For more information visit www.BOMAConference.org
24 California Buildings News • March/April 2015
Association News
IFMA SV Gets Previews of Energy Management Technology Spokespeople from innovative energy management companies gave hope to an audience of the International Facility Management Association Silicon Valley chapter that significant savings can be accrued with new technologies. Below is a synopsis of points made. Building Robotics — According to an IFMA study, the #1 and #2 HVAC complaints in office buildings are that the temperature is either too hot or too cold. This problem is exacerbated when occupants modify their spaces by adding personal fans, heaters or tapping air diffusers which can be a safety hazard and lead to excess energy usage. In response to this problem, Building Robotics has pioneered a new way to provide comfort and save energy through the utilization of machine learning algorithms and by using people as sensors. Verdigris Technologies — Buildings consume 70% of the world’s electricity, half of which is wasted. According to a study conducted by MIT and Lawrence Berkeley National Laboratory, nearly 90% of this waste can be recovered by energy monitoring. Verdigris’ energy intelligence platform solution allows facilities teams to monitor real-time energy data directly at the plug load level. Verdigris’ technology provides opportunities to utilize all electrical equipment in facilities at their ideal levels which can ultimately lead to better energy management and reduced CO2 emissions. (Continued next page)
Through a Los Angeles pilot program that is expected to expand nationally, janitors are now earning a seat at the sustainability table alongside building owners and managers. The program, through which janitors are certified, provides hands-on energy management and green cleaning training to address operations and maintenance practices that enable buildings to meet green performance standards, with special focus on resulting energy efficiency. This pilot program involved eight LEED-certified buildings across Los Angeles, with 126 janitors earning certification. The program was designed and piloted as a collaborative effort among Building Skills Partnership (BSP), the U.S. Green Building Council-Los Angeles (USGBC-LA), the Building Owners and Managers Association of Greater Los Angeles (BOMA/GLA), industry experts, building owners and Service Employees International Union (SEIU)-United Service Workers West. The training curriculum —presented in Spanish—was created jointly by BSP and USGBC-LA over a two-year period and addresses energy efficiency, recycling, waste management, water conservation and other sustainable and green cleaning practices. In LEED-certified existing buildings, which include four of the eight participating buildings, green maintenance and operations practices are required. Janitors are at the forefront of building operations and need to understand why certain sustainable procedures or materials could have an impact on energy reduction and water consumption—and ultimately, human health—through their work. Overall, the janitors developed confidence in their communication skills and became empowered to demonstrate what they learned at work (with their supervisors) and home. Managers acknowledged that as the janitors learned how and why, for example, turning off lights, unplugging appliances (which can pull vampire energy when left unused), and using green products, all connect to the LEED Rating System, they felt an increased sense of ownership and responsibility in helping control energy use and improve building health. USGBC-LA’s Dominique Smith, said, “We see this as a movement in Los Angeles that will hopefully become national, serving as an example of social equity, where everyone participates in management and maintenance of a building. Empowering the janitors to identify issues of energy over-use, or problems with leaks, makes a huge difference in operational communication, which ultimately saves the building owner money, reduces the building’s strain on the local infrastructure, and improves the health of all people in the building.” (Shown above: Constellation Place janitors in Century City. Courtesy of Buildings Skills Partnership.)
LA Buildings Groups and Unions Launch “Green Janitor” Program
25 California Buildings News • March/April 2015
Kilroy Realty, Harsch Win Bay Area BOMA TOBYs Robust cheers erupted at various tables throughout the Oakland Marriott convention hall recently when the winners of 2015 BOMA The Outstanding Building of the Year were announced. The cheers came not only from those who work for Kilroy Realty and Harsch Investment Properties, whose buildings in San Francisco won, but also from the many vendors whose services and products contribute indirectly to operational excellence. Kilroy was the big winner, taking TOBYs for San Francisco’s 303 Second Street in the 500,000-to-1,000,000-square-foot category as well as The City’s 100 First Street in the 250,000to-499,000 category. Harsch earned a TOBY for best medical office building for its iconic 450 Sutter Street tower in San Francisco. The awards were sponsored by the Building Owners and Managers Associations of San Francisco and Oakland/ East Bay—and hosted this year by the latter. “In a real sense, every building team that competes for a TOBY is a winner,” said BOMA San Francisco Executive Vice President Marc Intermaggio, “because the competitive process inevitably improves overall building performance. And it reminds others in the commercial real estate world of the rewards that come from striving for excellence.” Kilroy Senior Asset Manager Sarah MacIntyre, said, “At the heart of these two wins is a tremendous sense of pride from the entire Kilroy team. We deliver a full-service approach that provides our tenants with user-focused environments. We shared with the judges our genuine culture — a focus on the customer experience and providing great common amenities.” Harsch’s Jordon D. Schnitzer said, “We are delighted to win the TOBY Award for Best Medical Office Building, as we continue to pay tribute to famed architect Timothy Pflueger’s legacy. 450 Sutter Building honors the past and inspires the future. He added, “Harsch takes the same
IFMA Silicon Valley (Continued from previous page) Lucid Design Group — Lucid has pioneered technology connecting devices with the building operating system. Its platform aggregates data from building automation systems, sub-meters, lighting and plug load controls, on-site generation systems, demand response providers, and electric and gas utilities to provide a comprehensive picture of a buildings’ performance. Lucid is also focusing R&D on behavioral efficiency and occupant engagement technology for use in commercial buildings. This technology showcases real-time building performance and green features and empowers occupants to become active participants in energy management.
Kilroy’s winning team from 303 Second Street.
approach to all of our properties—creating the best possible experience for tenants, customers and clients. But some accomplishments instill just a little extra pride, and 450 Sutter Building is one of those projects. My goal is to make sure that every guest and every worker has a great experience in the building for generations to come.” Established by the Building Owners and Managers Association (BOMA) International, The Outstanding Building of the Year “TOBY®”Awards, was developed in 1985 to honor and recognize the quality in office building operations and award excellence in office building management. Bay Area winners will go on to compete for greater awards at the BOMA International competition, to be announced in LA.in June.
Designing the Future of Real Estate Honoring Legendary Architect Arthur Gensler, Jr.
Join Us for An Industry-Wide Mixer for Real Estate Professionals Thursday, May 14, 2015 • 5 to 7:30 pm Bently Reserve • 301 Battery Street • San Francisco
Support Tomorrow’s CRE Workforce! Commercial Real Estate Alliance for Tomorrow’s Employees (CREATE) is a collaboration of BOMA San Francisco, BOMA Oakland/East Bay, IREM San Francisco Bay Area and NAIOP SF Bay Area Chapter. Funds raised at this event will support San Francisco State University’s Commercial Real Estate (CRE) Certificate program.
Register online: https://createMay2015.eventbrite.com Questions: 415.362.2662. x115 or toryb@boma.com
26 California Buildings News • March/April 2015
How Green Can We Get? (Continued from page 7) spends 90 percent of their time indoors, yet so many of our buildings leave us without natural light, shelter us with low ceiling, and ignore our personal, social and environmental needs. It doesn’t have to be like this. We can control this powerful force —we just have to start asking more from our buildings.”
Greener Products and Services Making a Difference Every facet of building design and operation and every green product and service can present an opportunity to make buildings much more sustainable, and innovative companies are stepping up to the challenge. “California continues to lead the way with LEED, ranking in the top 10 states for LEED buildings per capita in the USA. By the numbers in 2014, CA-certified 514 LEED projects totaling 69.8 million square feet,” says Dominique Smith, executive director of the U.S. Green Building Council–Los Angeles Chapter. “The next evolution in the built environment will be a focus on the people piece of the triple bottom line—defined as people/planet/profit. Health and A green technology, View Dynamic Glass is installed in the W Hotel in San Francisco (top photo) and the Hilton Universal City (lower photo). Photos courtesy of View Inc. wellness movements are evident in new rating systems, such as the WELL Building Standard. Occupant health, happiness, and productivity are driving investment in buildings that attract the best talent.” Brandon Tinianov, senior director of business development of Milpitas’s View Inc., says “Dynamic glass is a green technology that has been in incubation for over 50 years and only recently reached commercial scale. View Dynamic Glass is already advancing our sustainable future by helping buildings minimize their carbon footprint and meet the country’s most stringent codes such as California’s Title 24, as well as voluntary sustainability standards including LEED, WELL, and Net Zero Energy. Going forward, the opportunity to broaden its green impact is even greater as we build out the intelligence that controls the glass, and tie it in to other building systems such as HVAC and lighting to achieve synergies. In California, tens of thousands of square feet of View Dynamic Glass have been installed at locations such as The W Hotel in San Francisco, The Hilton in Universal City and DPR Construction’s net-zero San Francisco office.”
27 California Buildings News • March/April 2015
Firestone Building Products is innovating in this field. From polyiso insulation to reflective membranes, its sustainable roofing solutions make it easier than ever for commercial spaces to incorporate features that meet and exceed evolving requirements for ecoconscious buildings. In 2013, the company introduced Enverge™ Cavity Wall Products, a new portfolio that includes thru-wall flashings, rigid wall insulation and air and vapor barriers that provide significant energy savings. These individual products work together to improve thermal performance and prevent thermal bridging in commercial buildings, resulting in maximum building performance and long-term energy savings.
Greening Your Facility Can Be Accomplished in Many Ways — Without Major Overhauls “Many property managers do not yet realize that they can improve the profitability, sustainability and productivity of their facilities simply by switching to ultra low pressure drop air filters. In most commercial buildings in California, it is possible to reduce the amount of fan energy required to move air across filter bays by over 60%. Making this change can also decrease maintenance expense and landfill waste — while providing a healthier work environment for occupants, and a fast payback (1 to 3 years) for building owners. With this technology we no longer need to choose between efficiency and health. We can have both — and with budgets all can afford,” says Business Development Vice President Sam Keller at AspenAir.
“Following the LEED green cleaning standard alone is a great way to green your facility, but looking a little deeper can elevate your program to the top.” — Alan France, ABM Sustainability Director ABM Sustainability Director Alan France says, “Following the LEED green cleaning standard alone is a great way to green your facility, but looking a little deeper can elevate your program to the top. From an equipment perspective, using scrubbers and daily maintenance carpet extractors that use plain water such as Tennant’s ec-H2O™ and Readyspace® minimize the chemical usage onsite while still maintaining your floors. Bridging the equipment and chemical lines, choosing an electrolyzed water solution such as Ecolab’s Hydris™ disinfectant and cleaning solutions or Tennant’s Orbio® os3 split stream system with its antimicrobial and general cleaning solution are the way to go.”
As Steven Stenton, studio director of sustainability at RMW Architecture & Interiors, observes, the real challenge—and opportunity—is in greening existing buildings’ design. “Sustainable design has been one of the main drivers of our building industry for over a decade. LEED and green policies have had a major impact on moving the needle, and I see that continuing to ratchet up as climate change, energy independence, and human health drive our industry. New buildings have always been the focus, but the hidden gems are the existing buildings. It’s estimated that 70% existing today will still be here in 2050. A project we recently completed was renovating a 50-year-old building as a ZNE building, and it was more profitable for the owner/developer than if designed as a standard renovation.” The future is brighter than ever before for more sustainable buildings. Fueled by a public demand for a healthier planet, government agencies and tenants are driving the need for higher-performing facilities. Owners and operators are working to accommodate their needs, and product and service providers are innovating in countless ways to produce greener buildings. How green can we get? It’s up to us. n
28 California Buildings News • March/April 2015
CLTC’S Lighting Guides Support State’s Efficiency Standards The California Lighting Technology Center (CLTC) at the University of California, Davis has produced five downloadable lighting design guides to help builders, contractors, and other lighting industry professionals meet or exceed
California’s 2013 Building Energy Efficiency Standards (Title 24, Part 6). CLTC developed the five guides as part of the California Statewide Codes and Standard’s Energy Code Ace training program to encourage support and compliance with the Title 24
requirements. They are available online at no cost to the public at cltc. ucdavis.edu/ title24. The office, retail, and outdoor lighting guides were created to help people navigate updates to the nonresidential
portion of the Title 24 building standards. The residential and high-efficacy residential lighting guides help those working on zero net energy and sustainable residential projects meet and exceed the requirements of the standards. CLTC is a not-for-profit research, development and demonstration facility dedicated to accelerating the development and commercialization of next-generation, energyefficient lighting and daylighting technologies. The standards, which took effect July 1, 2014, are designed to help California meet its energy and climate goals. They aim to improve the energy efficiency of homes by 25 percent and make nonresidential buildings 30 percent more efficient than the 2008 standards. Updated requirements for retrofit projects, lighting controls, and demand response capability are included in the standards. Adaptive lighting, which automatically dims or shuts off when it’s not needed, is the new standard in California. Each lighting guide provides an overview of the code updates, current lighting technologies, lighting design concepts and principles, and best-practice recommendations. Explanations of code requirements are accompanied by recommendations for implementing the standards in new construction or renovation projects. The guides help put the code into context with specific examples and case studies. Pacific Gas and Electric Company sponsored the guides, which were created in collaboration with the California Energy Commission. The guides supplement courses developed through CLTC and sponsored by PG&E through its Energy Education program. The California Lighting Technology Center (CLTC) is part of the Department of Design at the University of California, Davis. CLTC includes full-scale laboratories for research and development. Staff members instruct undergraduate and graduate students of lighting design, and they provide courses and educational resources to professionals seeking advanced training. Read more at http://cltc.ucdavis.edu. The CLTC’s lighting guide helps people navigate the requirements for Title 24 commercial building standards, as shown in these projects. Photo above left: CREE. Center photo: Lutron. Lower photo: lighting guide for office applications.
29 California Buildings News • March/April 2015
Smarter Buildings (Continued from page 11) while learning comfort and energy use” because the company says 61 percent of office workers aren’t comfortable with their temperature levels. It uses sensors throughout buildings to provide immediate gratification of warm or cool air, as needed. And over time building history is used to create more comfortable environments—according to what occupants desire.
You Can’t Control What You Can’t Measure Schneider Electric technology is also installed now in a number of California buildings. Terry Whitehead, regional sales manager West Region, says, Alerton’s Ascent product suite intelligently monitors and controls facility operations. Photo courtesy of Alerton. “Schneider Electric’s SmartStruxure solution enables monitoring, measurement, and “The technology experiences that we design help bridge optimization of a building’s performance throughout its the physical and digital worlds. As the Internet of Things life cycle. SmartStruxure exchanges and analyzes data from proliferates through buildings, occupants increasingly energy, lighting, fire safety and HVAC to maximize efficienneed well-thought-out interfaces and applications that cy and create a healthy, sustainable environment while prodeliver data from those devices to their fingertips through viding anytime/anywhere access to building systems with mobile apps,” says Alex Serriere, a principal and director integrated building management.” of research of TEECOM, an Oakland-based engineering LED technology is leading the way in achieving higher firm. “For example, indoor positioning using iBeacons performance facilities, but installations must be carefully allows individuals to find their colleagues in any space and planned. Product Marketing Director Jay Canteenwala at advanced LED lighting controls put workspace lighting levEchelon says, “LED upgrades can result in over-lighting els in the hands of each individual. From an owner’s standand complaints. Addressing through retrofits is expensive. point, all of these systems are generating huge amounts of Instead, thoughtful planning of outdoor lighting, including valuable data that can be mined for insights and used to Echelon Lumewave sensors and smart adaptive lighting optimize building usage and performance.” controls, enables optimized dimming; improves safety and Autodesk’s portfolio of sustainability solutions for aesthetics; and generates savings exceeding 80%, as demonhigh-performance buildings has advanced tremendously strated by projects at UC Davis and NorthBay VacaValley over the past year, says Jonathan Rowe, the San Rafael-based Hospital.” company’s sustainability solutions content marketing manThe Public Sector Is a Leading Force ager. “Energy analysis and daylight simulation tools are now Through legislation, as well as through practice, the state directly in Autodesk Revit, one of the most widely adopted and local governments of California are playing a major role building information modeling (BIM) authoring tools, easier in making buildings smarter and more sustainable. than ever to get quick feedback on design decisions. A set “The University of California is making smarter building of emerging beta tools on Autodesk Labs overlays critical decisions with more sophisticated utility bill tracking,” says financial metrics to help building professionals more strongSenior Marketing Manager Barry Kroeker of EnergyCap. He ly make the business case for energy conservation measures. says the company’s software “is being implemented across And AutoCASE, a newly launched plug-in for stormwater the entire university system to provide benchmarking, management, goes further to quantify the triple bottom line auditing and reporting tools to help identify building issues benefits and risks of sustainable infrastructure projects.” and measure the success of energy efficiency upgrades.” Building Robotics is the developer of Comfy, which promises “to provide instant streams of warm or cool air (Continued on page 30)
30 California Buildings News • March/April 2015
Smarter Buildings (Continued from page 29)
Project at UC Davis and NorthBay VacaValley Hospital uses Echelon’s Leotek Arieta LED Luminaire paired with Lumewave MWX-LVE long-range outdoor sensor. Site photo courtesy of VacaValley. Product photo courtesy of CLTC.
Facility Management Professional Credential The Silicon Valley Chapter of IFMA is offering exceptional local FMP credential classes led by seasoned facility professionals Dates for 2015:
March 12-13 April 16-17 May 21-22 June 18-19
Leadership and Strategy Operations & Maintenance Project Management Finance and Business
Register today! For more information or to register: www.ifmasv.org admin@ifmasv.org 408-226-0190
Alerton is also a player in the state. One smart facility in California is the central utility plant in Sacramento that serves 23 state-owned buildings, including the Capitol, totaling 4 million square feet of space. Alerton facility automation systems installed by System Integrator L&H Airco intelligently monitor and control equipment that enables the plant to operate at about half the energy use of a traditional chiller plant, while keeping state buildings comfortable. “The Sunverge SIS integrated energy storage platform cost-effectively stores and optimizes a building’s use of renewable energy. Comprised of solar inputs, power electronics, Li-Ion storage and cloudbased controls and analytics, multiple SIS units can be aggregated and controlled real time as a single resource to deliver tailored energy management solutions,“ says Robin Shaffer, senior director of the company’s product marketing. n
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Industry Profile
Top Hotel Developer Sees Growth in California
Hotels Are Important in Mixed-Use Projects Q&A with Chris Gebert, Vice President, Corporate Real Estate Development, Hyatt, El Segundo What California markets are most appealing? Typically high-barrier, difficult-to-enter markets are most appealing where there is a known demand growth trajectory or the restraints on hotel development restrict the level of supply possible. The Silicon Valley, as an example, remains a constant target in strategic locations as do key California gateway cities such as San Francisco, Los Angeles and San Diego as well as other strategic West Coast cities such as Seattle and Portland. Within those larger markets are significant submarkets which are clear hospitality development targets due to increased demand and lack of hotel development since late 2008 although ground-up projects have significantly escalated over the last three years.
Rendering of new Hyatt Place in San Jose. Six-acre site will have a 190-room Hyatt Place and a 165-room Hyatt House. Photo courtesy of Hyatt.
What kind of hotels are you currently developing in California? The current focus is development of Hyatt Select products inclusive of Hyatt Place and Hyatt House. Additionally with the announcement at the 2015 ALIS conference in January of the Hyatt Centric compact full-service boutique brand, there has been a significant focus on development of the Hyatt Centric brand. In California, Hyatt currently has four Select hotel projects in preconstruction, all with construction starts before year end 2015 in significant markets such as San Jose, CA (two projects), Irvine, CA and Glendale, CA. Hyatt is developing a pipeline for the Hyatt Centric brand and will continue to develop the Hyatt Place and Hyatt House Select brands in California and nationally as Hyatt owned, developed and managed hotels. (Continued on page 18)