Californiabuildingsnewsq2 2018 by Ellen Eason

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Contents NIMBYS, Local Politicians Stifle New Housing and Cause Economic Damage Which group has more political clout in the California legislature: real estate developers and pro-growth advocates or the many thousands of local politicians who jealously guard their highly beneficial control over development and Not-InMy-Backyard opponents to nearby multifamily housing development? The latter will win almost every time, as state Sen. Scott Wiener (D-San Francisco) and other advocates of new housing learned again this spring. For example, not a single gubernatorial candidate had the guts to support the housing-relief bill and face the wrath of the NIMBY neighborhoods and local pols. SB827 was offered by Wiener and others who sought to reduce local governments’ ability to stifle new multifamily housing construction near mass transit stops. What’s the macroeconomic impact of this loss for the average Californian? It could be very detrimental. Unless more interest groups can be mobilized to back Wiener’s bill, the state’s hyper-inflated housing costs will endanger future economic growth, as companies and people shy away from creating jobs in California, and the outflow of citizens and companies continues. That affects everyone, from the very local politicians who will lose revenues to the NIMBYs who will lose government services supported by those revenues to jobs to small business and so on. And while we are on the topic of factors that stymie housing development, let’s consider reforming the California Environmental Quality Act, a well-meaning but much-abused law that triggers damning opposition to any type of development anywhere in the state. The word is already out around the world that California is a costly place to live and work—mostly due to housing scarcity. New York magazine reported on the California Senate Transportation and Housing Committee’s vote to kill the Wiener housing relief vote. That must have put smiles on the faces of the Empire State’s competing economic development advocates.

Viva Las Vegas! Many of us in California have almost come to think of Las Vegas as another of our towns — for good reason. It’s about the same flight distance as from Sacramento to San Diego, and you’ll always see a lot of Californians there. But more importantly for the commercial buildings industry, Vegas hosts numerous world-class conferences and expos that feature products and services relevant to the design and operation of buildings— literally from the floor to the roof and everything in between. This year that includes events focused on security, design, plumbing, audio-visual, communications, acoustics, fire protection and facilities management. These events are valuable to all involved in designing and running office towers, multifamily complexes, hotels, hospitals and government buildings. We look forward to seeing you at a future show! (Continued on page 42)

Your RFP: What Are You Trying to Accomplish?

Security Solutions Emerge

Cannabis Risks to Property Managers and Owners

Interiors: A Management Tool

IREM Works to Boost Jobs

CRE: Prepare for Futureshock

California Hospitality

Association News

Carpenters’ Advanced Training

Focus on Green Buildings

New Projects Break Ground

Cover images: Main image and office: Getty Images. Hospitality: Aspecta. Security: DAQ Electronics.

California Buildings News Team Henry Eason, Editor henry@easoncom.com Ellen Eason, Publisher & Associate Editor ellen@easoncom.com Contributing Editors

Zachary Brown, CBRE Ken Cleaveland, Public Affairs Advocate Bob Eaton, Eaton Hotel Investments Jessica Handy, CodeGreen Solutions Rich Lerner, Construction Consultant Michael F. Malinowski, AIA, President, Applied Architecture Inc. Katherine A. Mattes, Real Estate Consultant Larry Morgan, Facilities, SAP Steven Ring, Fulcrum Real Estate Development Carlos Santamaria, CEES-Advisors

www.cabuildingsnews.com Copyright © 2018 by Eason Communications LLC, publisher of California Buildings News. The publisher assumes no liability for opinions expressed in editorial contributions to the magazine or third-party quotations within articles. The publication is not responsible for claims in advertisements. Printed in the U.S.A.

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4 California Buildings News • Q2 2018

Your RFP…What Are You Really Trying to Accomplish? How to Define, Design, Develop & Deliver a High-Value-Driven RFP By Larry Allen Morgan I usually have two industry-related events on my calendar annually as must attend to keep current on the “state of the facilities management union.” International Facilities Management Association (IFMA) World Workplace and Building Operating Management’s National Facilities Management and Technologies (NFMT) conferences (Baltimore and Las Vegas). I have been honored to be a key topic presenter at NFMT for more than eight years at both locations. Yes, both have a large assortment of educational topics, amazing presenters, the coolest new gadgets and

Here are my bullet points: w First up: Prescriptive contracting is dead or should be. Performance contracting is the high-value target. Let me sample that, Landscaping Contract. If it’s green, mow it or trim it. If it’s brown, water it or replace it. Simple because unless you are a subject matter expert in horticulture and you know all about fertilization, pruning, pest control and irrigation requirements, then why do you have a 30-page prescriptive scope of work telling some company you expect the lawn to be mowed to “1.5 inches” So I would expect to see you the minute after the lawn is mowed to be out measuring the lawn height? Really, if so you’re overpaid and in the wrong business. w Another example: Janitorial Contract: Clean it the way the space was design to be cleaned and at whatever frequency it takes to keep it clean and stocked the way we agreed via the service level agreement. So, if you’re paying 30 cents a square foot to clean a building, that’s pretty damn expensive for a loading dock and maybe not expensive enough for a customer-facing space, executive suite, etc. So, like measuring the height of the lawn in the landscape sample, if you’re walking around the building with a white glove checking every surface

services presented on their respective expo floors, but I usually gravitate towards education sessions that have something new and or relevant to learn. No offense to those who can sit through a 55-minute presentation on the value of LED lighting or why you should use metering devices for accurate power management, but I put those tactical horses out to pasture years ago. My topics most often have bit of a provocative edge to them as those who know me will attest to and that is either a plus or minus character trait. Guess it depends on your mood at the time. This year at NFMT Baltimore, March 26-28 despite the fourth major winter storm to hit the Northeast, thank the hotel staff for having stocked the bar with an abundance of “antifreeze.” I did a major key presentation on the topic of Define, Design, Develop & Deliver A High Value Driven RFP. To put it candidly, in all my 30-plus years of being in this profession I have never seen a better time to retool this common inefficient and ineffective process. for dust above six feet, if you can reach that high, then you’re overpaid and in the wrong business. Let the subject matter experts be the subject matter experts and be your partner, period.

So here is the tactical piece: w What are you trying to accomplish with the outcome of the RFP? If you can’t explain it to a 10-year-old, re-do it. w Clearly define the objective with all stakeholders using the SMART process: specific, measurable, achievable, relevant and time-bound. w Keep it brief, simple, clear and transparent. Remember that most of the companies that receive the RFP don’t speak your corporate foreign language or know the 300 acronyms. The goal is to achieve a paradigm shift in pantry service execution is Martian to most on many levels. w Can it be translated to actionable outcomes? w Develop a scoring matrix to validate the selection. z Capacity and capability to perform z Unique solutions z Timelines and milestones. Things like QBR’s, etc. (Continued on page 44)

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6 California Buildings News • Q2 2018

New Security Products, Systems Help Protect Buildings Safeguarding Buildings is Becoming One of Building Managers’ Biggest Concerns

An array of new security products is reaching the market tentional faults or malicious attacks could severely impact to assist building managers in protecting their facilities from human lives and the environment in urban and rural areas. an ever-increasing array of new threats: from cyberterrorism When designing and building new infrastructure, systems to active shooters to natural disasters and plan old robbery. and services, security and resiliency must be key considerTens of thousands of security experts and people charged ations for governments and cities. To address these new risks, with securing buildings gathered at the recent ISC West cities/communities and stakeholders must build security and conference in Las Vegas. resiliency into new infrastructure and systems.” “In today’s highly IBM engineer and interactive and interconIT security architect Jeff nected world, cyberCrume, a key speaker at security is not restricted the conference, said in to the purview of the IT a subsequent interview, department—it threatens “Consider the following: and affects every conWith the Internet of Things nected device in every (IoT), essentially everything department,” according becomes a computer. We to ISC West. “And, as know from decades of hard connectivity continues learned lessons that virtuto expand—to the point ally every computer can be where even toasters hacked. Therefore, in the and refrigerators can world of IoT, potentially be potential sources of everything can be hacked. cyberattacks—the risks “What this means is that are destined to not only the car you drive, the plane The Von Duprin exit devices from Allegion/Schlage Lock Company persist, but also to grow you fly in, the pacemaker in improve security in K-12 schools. Image courtesy of Allegion. larger. In this environyour chest, the refrigerator ment, our own surveillance and physical security systems in your kitchen, the DVR on your shelf, and the security will continue to have a critical role to play in keeping our camera recording the activities in your home (both when organizations, staff and visitors safe. It’s important to underyou are there and when you aren’t) all can be hacked. The stand what the cyberthreats are to our systems, how we can consequences could range from a mere nuisance to a potenimplement protections from these threats, and how we must tially lethal emergency. plan for incident recovery and ongoing protection.” “Many of these devices have very immature security Douglas Maughan of the Department of Homeland capabilities which are largely hidden from their users, most Security Science and Technology Directorate, a key ISC of whom have never even considered the potential of a West speaker, commented to California Buildings News, breach. There is much work to be done in this space and “Intelligent systems provide vast opportunities for smart that work begins with awareness by device manufacturers of cities/communities. That’s why the Department of Homeland the threats, which is the focus of this presentation.” Security (DHS) Science and Technology Directorate (S&T) Manufacturers are responding with creativity and is working with industry to add security into the design of commitment to meet the challenges. Examples of this were cyber-physical systems (CPS) and Internet of Things (IoT) seen conference when the Security Industry Association devices that increasingly are essential to governments at all (SIA) recognized innovative products, services and solutions levels and critical infrastructure. in electronic physical security. “For example, CPS and IoT support remote health This year’s “Best New Product” is IPConfigure’s Orchid care, water and sewage management, transportation manageVMS for Axis ACAP. According to the company, “Orchid ment and the electric grid. However, CPS and IoT increase Core VMS is used by customers ranging from small busicybersecurity risks by introducing new attack surfaces that ness owners to some of the world’s largest global retailers. malicious actors could exploit. The consequences of uninRecognized for its reliability and ease of use, Orchid Core

7 California Buildings News • Q2 2018

VMS provides local and remote access to live & recorded video through an intuitive Web browser interface, with the same user experience on both workstations and mobile devices. In addition, each Axis Communications network cameras and video encoder equipped with an ARTPEC-6 processor can host Orchid Core VMS’ recording engine, database, video storage, and an encrypted Web browser interface for live viewing, search, and video playback functions. While Orchid Core VMS runs as a self-contained application on Axis cameras, it also supports federating with Orchid Fusion and Orchid Fusion Cloud for enterprise deployments with unlimited cameras, users, and locations via a unified user interface.” A “Judges’ Choice” Award was also given to Allegion/Schlage Lock Company for The Von Duprin remote undogging for exit devices, a system that will be used to protect schoolchildren. “In response to a market need for improved K-12 perimeter security Von Duprin created the Remote Undogging (RU) and Remote Monitoring (RM) options,” says Allegion/Schlage. “In schools with a networked access control system, it is estimated that only half of secondary doors are connected, because the majority of available security funds are focused on the main entrances. “Not surprisingly, over 55% of schools reported that their secondary doors were frequently left unlocked or propped open, with 22% stating that this occurs on a weekly or even daily basis. This results in vulnerabilities that compromise the building’s everyday security and limits the ability of administrators to effectively lockdown the facility in an emergency. To address this need Von Duprin created the Remote Undogging (RU) and Remote Monitoring (RM) options. The Von Duprin® RU option is a battery powered wireless solution that enables remote undogging and door status monitoring. It enhances perimeter security by providing electronic override of mechanical dogging for emergency facility lockdown.” Some other products winning recognition were: Access Control Devices & Peripherals – RBH Access Technologies Blueline; Access Control Devices & Peripherals – FEIG ELECTRONICS Wiegand Switch; Access Control Devices & Peripherals Wireless – ASSA ABLOYYale Commercial Yale nexTouch Sectional Mortise Lock; Access Control Software & (Continued on page 45)

Innovative Solutions

The StarWatch™ SMS security management platform manufactured by DAQ Electronics, addresses emerging requirements in the commercial security market by offering integrators an easy to install, easy to maintain system designed to an industry standard. Communicating with any ANSI/ASHRAE 135-2010 compliant system, StarWatch SMS enables true integration of access control, security, and building management systems, including Lighting Controls, HVAC, Energy Management, and Life Safety. The use of open BACnet® protocol allows users to maximize the operating efficiency of their systems to achieve increased security, occupant comfort, and reduced operating costs. This solution bridges the gap between security and building automation offering real added value to building owners, property managers, end-users, integrators, and specifying engineers. Interactive Touchscreen Solutions, Inc. developed the innovative Navigo™ Visitor Management System, a cloud-based platform with scalable capabilities to match the processing procedure at any organization or facility. It simplifies the check-in process with a three-step self check-in app. There are add-ons for ID scanning, badge printing, and integration with security systems for access control. Visitors may be pre-registered from any device with a web browser, and the system offers text alerts upon arrival. The turnkey solution includes all hardware, enclosures and installation. Navigo includes solutions for touchscreen and nontouchscreen digital directories, visitor management, resource scheduler, internet wayfinding and video wall systems.

8 California Buildings News • Q2 2018

The Cannabis Risks to Property Owners & Managers Building Owners May Still Risk Forfeiture If They Rent to Pot Dealers By Katherine Mattes Since recreational cannabis was legalized in California with the passage of Prop 64 last November, to be effective a year later, there has been a flurry of activity. (Medical cannabis was legalized under Prop 215 in 1996). Most of the attention has been paid to existing medical facilities wanting to add recreational sales and the growers and distributors of the product. Licensing is complex and expensive, which has slowed the process and deterred many from starting. Those details are beyond the scope of this article. Here I will explore the property owner side of the issue to understand the risks that a landlord takes on by leasing space to a cannabis facility and whether those risks can be mitigated. Property owners have leased space to a medical or recreational facility, or a grower and distributor, and I can only assume that they take on those risks knowingly. Many do so because the financial rewards justify the increased risk. The risks I will explore fall into two categories, both of which result from the fact that cannabis is still illegal under federal law. Under the Controlled Substances Act of 1970, cannabis is classified as a Schedule I controlled substance because of its “high potential for abuse,” its “lack of currently acceptable medical use,” and its “lack of accepted safety for use under medical supervision.” It is unlawful to: • Knowingly open, lease, rent, use or maintain any place… for the purpose of manufacturing, distributing or using any controlled substance • Knowingly rent, lease, profit from, or make available for use, the place for the purpose of unlawfully manufacturing, storing, distributing, or using a controlled substance. So, a landlord is breaking federal law and risking forfeiture if pursued by the federal government. This is in spite of the fact that it is legal in California and 28 other states including 7 others which have also legalized recreational cannabis. Which laws prevail? For the most part federal law supersedes state law. However, the Obama administration enacted the Rohrabacher-Blumenauer Amendment, which disallowed the DOJ from using federal funds to prosecute cannabis violations, so long as this amendment was referenced in each annual federal budget. The Cole memorandum issued in 2013 instructed U.S. attorneys to focus only on specific priorities related to legalized cannabis in the states

(protecting children from access, etc.). These limitations provided comfort that the proper pursuit of cannabis manufacturing, distribution and sales would not be in jeopardy. In January 2018, U.S. Attorney General Jeff Sessions cast doubt on whether the federal government will stand back, and that re-inserted the risks originally associated with cannabis activities. However, an announcement by the California insurance commissioner on April 25 indicated that the Trump Administration will indeed not pursue cases in states where cannabis is legal. Until this is totally clarified, risks remain, which fall into the categories of i) violating loan covenants and ii) invalidating insurance coverage.

Loan Covenants A typical trust deed agreement includes words to the effect: This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Lenders that are federally funded will not place a loan on a property if they know that the use will be associated with cannabis. If there is an existing loan on a property, and the owner decides to lease to a cannabis business, that owner is taking the risk the loan could be called, with the remaining balance due immediately. If the loan expires, the lender may then elect not to renew and re-financing may also be difficult. Purchasing a small building or commercial condo with all cash or with private equity funding is an alternative. I am told by Brett Gladstone, head of the land use practice at Hanson Bridgett, that many property owners with leases to cannabis operators are individual investors, a family or a trust, with a long-term loan and for whom the higher return makes up for the increased risk. The risk of forfeiture, while low in likelihood, is a real concern for many. In the event the federal government learns of the illegal use, they can send the owner a notice of that fact, thereby eliminating the “innocent owner” defense. At that point in time, the owner must either evict the tenant (that right should be in the lease), or otherwise risk losing the property to the government.

Insurance Risks The insurance issues fall into the categories of traditional business insurance and title insurance. All Risk and Liability Insurance. The insurance companies you are familiar with will not provide insurance (Continued on page 44)

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10 California Buildings News • Q2 2018

Interior Design Becoming a Powerful Management Tool Designers Are Being Asked to Create Workspaces That Boost Productivity, Morale Design firm HGA approached the interior design of insurance giant AAA’s new office the way every such agency should: It asked the employees what kind of workspace best suited them. HGA carefully studied preferences and workstyles and, augmented with their own experience throughout the U.S., it rendered the new American Automobile Association’s (AAA) Northern California-Nevada-Utah (NCNU) headquarters, now accommodating 380 employees in a much more efficient and pleasing environment. The 50,000-square-foot building redesign in Walnut Creek includes the

addition of custom Knoll workstations to encourage collaboration, a conference center, café area with meeting areas and a high-impact entryway. One of AAA’s goals in the redesign was to construct a more efficient layout to house all of their employees and to create a freshened identity for their headquarters. AAA wanted the headquarters to attract a younger clientele and workforce, while also retaining the employees they currently have. “During the programming phase, we learned AAA has an amazing retention rate, however, many of the employees move between departments

Shown above: Malewarebytes office. Project design: Blitz. Photo credit: Bruce Damonte Photography.

as they develop in their careers and as the company evolves,” says Melissa Pesci, principal and vice president at HGA. “Therefore, it was important for all of the workstations to be the same, but offer enough flexibility to cater to employees’ varied work styles.” HGA designed both open and enclosed meeting spaces in a variety of sizes and heights to fit the office’s varied meeting styles. Because many of the meetings that occur in the office involve four people or less, HGA was able to save AAA substantial square footage and allot significantly more space for meetings by reducing the size

11 California Buildings News • Q2 2018

of typical conference rooms which previously seated eight to ten employees. In addition to meeting AAA’s needs for a more efficient layout, HGA also integrated the AAA brand in the design by incorporating the theme of the “American road trip.” The new design contains specific elements that emulate the sense of camaraderie, excitement, and exploration when embarking on an adventure. For example, the boardroom features a wood treatment that resembles tire tracks and a table with vintage hubcaps; headlight light fixtures can be found in the conference room; meeting nooks are inspired by 1970s rest areas. The three “A’s” in “AAA” can be found in the design of three break rooms that incorporate the A-frame highway rest-stop design and across the hall a wall is decorated with vintage license plates from every state. Office artwork also supports the theme, with commissioned photography made into window film featuring the unique environments of the Northern California, Nevada and Utah regions. To create the sensation of peering through a car window, the window film in the office is activated by natural light throughout the space and by employees as they collaborate within the rooms or pass by. HGA engaged the entire AAA staff throughout the design process. Every employee in AAA’s NCNU office was able to vote on the palette for the new space as well as the selection of the new workstation standard that was used. The color palette selected was fresh, bright colors that match the yellow AAA trucks. “We spent a significant amount of time upfront with AAA to find out what was working really well and what things could be improved,” says Pesci. “AAA had previously established a work environment that was incredibly supportive of focused work, but in an effort to attract (Continued on page 40)

Above: open office in the HGAdesigned new AAA headquarters incorporates a freshened identity. Left: the three A’s in AAA can be found in the design of the break rooms. Adjacent wall is decorated with vintage license plates from every state. Photo credit: HGA Architecture.

Instacart office. Project design: Blitz. Photo credit: Jasper Sanidad.

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25 California Buildings News • Q2 2018

Top Plumbing Contractor Lauds New Pipe Installation Methods Firm Also Sees Use of Greywater as a Solution to Making Buildings More Sustainable

Q&A

With Bob Felix

Vice president – plumbing, ACCO Engineered Systems California Building News recently queried a dozen general contractors in California about plumbing contractors whose work they respect. ACCO Engineered Systems was on almost every list. Q: What does your firm do to earn your exceptional reputation?

Consistent responsiveness. Whether responding to a service call or dispatching one of our techs. We know that service calls often need attention immediately. We’ve developed our service model to be able to respond to these calls as quickly as possible. Client confidence is paramount. Our clients call us because they’ve developed the confidence that if they call us they know it will get taken care of. That is made possible through a track record of dependability and quality workmanship. Q: What are the biggest plumbing service issues that plague commercial buildings? And how can they be avoided?

Clogged sewer drains are the most common issue. More often than not they’re caused by unfit items getting put down a drain. Things like paper towels, feminine hygiene products, wet wipes (even the ones that say “flushable”) and food are the biggest problems. It’s an issue that can be avoided by making users aware of the issues these items cause. Q: Restroom upgrades must be one of the biggest challenges for commercial facilities. What are commercial property owners asking for these days…and how are government regulations affecting choices?

Everyone wants sensor flush valves and faucets with sensor soap and paper towel dispensers. Germ free! The main challenge with this isn’t so much government regulations getting in the way, it’s typically the cost of those types of

fixtures. They’re not astronomical, but they are more than standard fixtures. As far as government regulations go, low consumption fixtures come up quite often. They come with attractive rebates, but customers often complain about the low flow of the faucets or toilets not being substantial enough for normal use. Q: Are there outstanding new plumbing products or technologies that are making a big difference?

Methods of installation on piping has changed the most. Propress copper systems for example, allow for a torch-less installation and don’t require the use of solder or chemicals to install. We’re seeing a lot more projects with PEX piping as an available option. PEX is not “new,” but it is becoming more common in commercial installations, especially in the hospitality market. It’s made out of a flexible HDPE polymer which results in the use of fewer fittings and is cheaper than copper. Q: How can plumbing design improve a property’s sustainability?

The success of plumbing design depends on the level of sophistication and experience of the engineering and design team. Our in-house engineering /design team will focus on all available options to maximize sustainability. A good example of this is the greywater system we recently installed, a large Italian eatery and food market. This is the first permitted greywater system in the City of Los Angeles. This system takes the water used in sinks/lavs, treats it, and re-uses it for toilet flushing. At this location it’s projected to save 400,000 gallons of water per year. Another more accessible and much more common option is low consumption or water-free fixtures. In a lot of cases this can be as simple as removing and replacing a fixture.

26 California Buildings News • Q2 2018

California Napa Gets a CrownJewel Downtown Hotel Archer Hotel Napa’s Design Accents Region’s Natural Beauty with Wood and Stone

Top photo: nighttime view of the hotel’s exterior. Lower photo: Entryway arched ceiling features a metal panel with an ivy pattern meant to imply a grape arbor. Photos courtesy of Archer Hotel Napa.

Up until only a few years ago most visitors to Napa Valley bypassed the dowdy old riverfront City of Napa and headed right up Highway 29 or the Silverado Trail to the storied wineries, charming villages, resorts and cozy inns of the up-county, leaving the often-flooded little city to handle local government and back-office matters. That was then. Thanks to a major flood-protection project and a successful civic visioning program, Napa has emerged as a tourist destination, with stately architecture along the river, boutiques, an array of international theme restaurants, gourmet food shops, a culinary academy, tasting rooms, music venues and—finally —a few world-class hotels. The latest and crown jewel of the city’s emerging hospitality scene is Archer Hotel Napa. The hotel features 183 rooms, including 39 balcony-clad suites spanning five stories and sweeping 360-degree views of Napa Valley from its expansive destination rooftop. Charlie Palmer Steak is the hotel’s signature restaurant and also provides the culinary direction for the 17,000plus square feet of indoor and outdoor event space, including the Sky & Vine Rooftop BarSM. LodgeWorks Partners, L.P. is the developer of the hotel and Archer collection. The guest rooms feature every comfort and amenity details imaginable, including suites with fireplaces on private balconies and den rooms able to host small parties, but what’s most striking about the property is the way its design reflects and artistically amplifies the wonderful geography and wine culture of Napa Valley —from handsome and scented wood interiors made of reclaimed wine barrels to locally quarried stone.

Hospitality The hotel’s unique design strikes you the moment you walked through the front door. “The entryway interior arched ceiling features a metal panel with an ivy pattern which is meant to imply a grape arbor allowing filtered light down to the ground below. The metal elements at the elevator lobby were also meant to be very organic recalling the natural beauty of the agriculture of this wine growing region. The metal sculpture in the large event room was designed to reflect the natural terrain of Napa Valley with its rolling hills and valleys and how they intertwine when viewed from a distance. The particular piece was fabricated in Napa by a local artist,” says designer Roger Brown, SVP, at LK Architecture Inc. of Wichita KS. “The wine barrel wood was used to give the hotel a sense of place,” says Brown. “With all of the wine industry surrounding the hotel, we wanted to tie it directly to Napa Valley. We wanted to use this reclaimed wine barrel wood because of its natural beauty produced from being soaked in wine. These wine barrel staves feature both the color and the aroma of the wine. The inside of the barrels is what produces these results. These wood panels were provided by Architectural Systems Inc.” “Archer Napa is built around an architectural vocabulary, which is derived out of the vineyards themselves,” explains Brown, LK’s director of design. “The building reflects the geometric pattern of rows and columns from the vineyards with a wonderful cadence and purposeful rhythm produced in the design, bringing order and character to the building.” As the site of the former Merrill’s building, considerable time and attention-to-detail was given to restoring the historic tile façade to its original grandeur. The architecture in the public spaces of the hotel is artful, integrating form and material with a purposeful nod to the location that the hotel calls home. The passage from the hotel entry doors to the lobby is like walking through a backlit grape arbor. The lobby and front desk reside within a large sky-framed atrium near the hotel’s center. This two-story space features warm natural woods, stone, a large-scale three-dimensional topographic map of Napa Valley and a custom crystal grapevine chandelier. The hotel rooftop offers sweeping views of Napa Valley—the only vista of its kind in downtown Napa given

27 California Buildings News • Q2 2018

the hotel’s unique vantage point and height. The rooftop is also home to a show kitchen, indoor/outdoor fitness studio, and spa by locally acclaimed Francis & Alexander. Chaise lounges can be found amidst the shallow ledge pool with water that meets the base of the seating. The depth of the water is refreshing enough to cool off from the sun’s rays, while shallow enough to enjoy a cocktail set on the chaise side tables within the pool. There are private poolside cabanas overlooking First Street with stone fireplaces and privacy curtains —ideal for small gatherings and milestone celebrations. Guests can reserve the cabanas for the day and enjoy a specialty menu curated especially for these unique outdoor havens. n

Top photo: lobby incorporates stone and reclaimed wood. Middle photo: rooftop offers valley views. Lower photo: balcony of one of the hotel’s suites.

California Hospitality 28 California Buildings News • Q2 2018

IIDA Names Best 2018 Hospitality Products at HD Expo The International Interior Design Association (IIDA), in partnership with HD Expo, selected its award recipients for the 22nd annual IIDA/HD Product Design Competition in Las Vegas in May. The competition honors innovation, function and aesthetic advancements in product design for the hospitality industry. “We are thrilled to be partnering again this year with the IIDA who recognizes some of the best and brightest in the hospitality design industry here at HD Expo 2018,” says Liz Sommerville, group show director, Emerald Expositions. “IIDA always brings respected, prestigious judges to HD Expo who have an eye for the hospitality industry’s hottest and most innovative designs and products.” KALLISTA took home the Best of Competition with their Grid Sink Faucet and Cube Handles. “KALLISTA demonstrated innovative design fabrication, using 3D printing, that was exceptionally well-executed,” said Chris Evans, senior associate, Rottet Studio. “They are advancing the future of fabrication in their industry.”

KALLISTA Grid Sink Facucet and Cube Handles won Best of Competition.

Some other winners are as follows by category.

Crafted Convergence by Durkan won in the carpets/rugs category.

Accessories or Specialties—Artwork, Signage, or Accent Pieces Manufacturer: Royal Botania Product: Palma Accessories or Specialties—Operations Supplies/Amenities Manufacturer: DreamLine Product: DreamLine Sion Applied Finishes and Materials—Paints/Coatings Manufacturer: Inpro Corporation Product: Ricochet™ Flexible Wall Protection Applied Finishes and Materials—Wall Coverings Manufacturer: Lumicor Product: Kuvio – Dimensional Wall Tiles by Lumicor Flooring—Carpets/Rugs Manufacturer: Durkan Product: Crafted Convergence Flooring—Hard Surfaces Manufacturer: Marazzi Product: D_Segni™ Lighting—Individual Manufacturer: Williams-Sonoma, Inc. Contract Product: Everett Sconce – by Rejuvenation Textiles—Upholstery Manufacturer: Robert Allen Contract Product: Robert Allen Contract Common Roots Upholstery Patterns

29 California Buildings News • Q2 2018

Other outstanding products exhibited during the HD Expo were: CF+D introduced its VITA Fireplaces collection at HD Expo, a newly launched line of contemporary Suspended, Base Model and Built-in fireplaces designed and manufactured, for the first time, to incorporate Vapor-Fire Burner Technology. The Vapor-Fire burner system is an ultrasonic technology that creates a very realistic, augmented reality ‘fire flame’ experience utilizing tap water as its fuel source.

Addressing the growing need for constant connectivty and power across a property, Legrand exhibited its expanded suite of stylish, functional Furniture Power products. The diverse Furniture Power Centers from Legrand’s designer collections blend power access and optional lighting controls seamlessly in furniture and overall designs. The newly introduced radiant® Furniture Power Centers bring together refined style and modern convenience, offering both USB and traditional power capabilities.

Aspecta by Metroflor debuted a new biophilically designed booth at HD Expo 2018 that spotlights its Aspecta range of LVT flooring while showcasing the company’s many advances in sustainability and transparency. The new Aspecta One Ornamental collection offers a series of overprint motifs incorporated over existing Aspecta One designs that allow architects and designers to achieve custom looks without custom pricing or long lead times. All images courresy of their respective companies.

Swarovski Lighting launched ‘Infinite Aura’, a lighting collection for the future that unites innovative technology, cutting-edge design and exceptional crystal craftsmanship. The collection conjures a vision of infinity that celebrates the human imagination and eclipses the ordinary limits of the mind. Infinite Aura, designed in collaboration with award-winning global design and innovation consultancy IDEO, is an innovative lighting design that is also a work of art.

(More products on page 31.)

California Hospitality 30 California Buildings News • Q2 2018

Modular Hotel Construction... Wave of the Future?

San Jose Hotel Becomes One of the First to Save Time & Money with Prefab Modular construction is one of the newest trends emerging in the construction industry—even for hotels. Individual modules are created in an off-site indoor facility and then craned into place on site. The process is faster and more efficient than a traditional stick build project which allows the developer to open its building to the market earlier with greater control over costs. Guerdon Modular Buildings, a manufacturer of large-scale, commercial modular construction projects for the Western U.S. and Canada, was chosen by Kalthia Hotels Group to build Hilton’s first prefabricated hotels. Kalthia chose to use modular construction to get the Hampton Inn and Suites and Holiday Inn Express near the San Jose Mineta International Airport in San Jose to market quickly. Guerdon constructed the San Jose Hilton modules using assembly-line production in a climate-controlled plant in Boise, Idaho. The off-site factory assembly ensures a quality product built by trained professionals while accounting for variables such as weather, high labor costs, and state and local building code compliance. The 30,000 pound modules are then trucked to San Jose and lifted by cranes into place. After being lifted into place, the modules are connected to electric, plumbing and other utility lines. The 144-room Hampton Inn and Suites has a ground-level podium, mixing traditional construction methods with modular techniques. The first floor, including eight guest rooms, was site-built while the 136 rooms located on the second through fifth floors are made up of 90 modular units. Cranes lifted the modules into place in January and the project is nearing completion now with exterior finishes and interior connections being made. Kalthia, an early adopter of Guerdon’s modular technology, is also using the method to build a 146-room, 99-module Holiday Inn Express on the same parcel. This project recently broke ground and is the Kalthia’s first modular project. Both hotels will be completed this year. The hotels add to Guerdon’s large portfolio of successfully completed projects in California, including the Domain Apartments, Union Flats and Second Street Studios as well as Marriott’s largest prefabricated project, a Courtyard and TownPlace Suites in Hawthorne and Marriott’s first modular hotel, a Fairfield Inn & Suites in Sacramento. Shown above: Hilton’s Hampton Inn and Suites modular hotel in San Jose under construction. Photo courtesy of Guerdon Modular Buildings.

31 California Buildings News • Q2 2018

Outstanding products exhibited during the HD Expo:

To its popular collection of Aquia high-efficiency dual-flush toilets, TOTO adds the new Aquia IV One- and Two- Piece Ultra High-Efficiency Dual-Flush Toilets (UHET) with its newDynaMax Tornado Flush Technology. With their versatile aesthetic and one- or two-piece construction, the new Aquia IV UHETs will appeal to a wide audience of homeowners and design professionals with their sleek modern lines.

A classic reinterpretation of traditional hand-made cement tiles, D_Segni™ offers a vast assortment of encaustic-look surfaces. The decorative designs range from geometrical, vintage and metropolitan patterns that can be used individually or mix and match for personalized designs. Seven coordinating solid colors are also available to complete the look. The collection is from Marazzi.

(Continued from page 29)

Designed by Cuno Frommherz for Sandler Seating Inc., Corda from the Tonon collection is a multiuse, stackable chair that can be used both indoors and outdoors — a durable blend of natural and man-made materials.

ShadeCraft’s SUNFLOWER is a unique robotic shading system. Solar powered, it tracks the sun all day long, providing the perfect shade. Properties are now able to provide their guests with WIFI and Bluetooth connectivity, premium audio from Harman Kardon, controlled lighting, and device charging all integrated into the design award-winning SUNFLOWER. Through its companion application, SmartShade, properties are able to remotely control all aspects of the features.

HD Expo attracts the world’s most talented and sought after network of interior designers, architects, hoteliers, owners, operators, developers and purchasers —leaders, creative risk-takers and innovators who make an impact in the industry. Show attendees come face-to-face with the most captivating products and resources to consider for their global hospitality projects, stay on top of industry news and trends through thought-provoking conference programming curated by Hospitality Design magazine. All images courresy of their respective companies.

Association News

California Buildings News • Q2 2018

AB 802 is a statewide requirement for California building owners to benchmark their building’s energy usage and report it to the State of California. The State will then publish this data online so that owners can see how each building compares to its peers. Do I have to Comply? If you own or manage a building that is 50,000 square feet or more, you must conduct an Energy Benchmark annually to comply with AB 802. Exceptions include new buildings that have received a Certificate of Occupancy within 12 months of the due date, and also multi-family buildings with less than 17 combined utility accounts (including tenant and owner accounts).

Mandatory Annual Energy Benchmarking Begins

Photo: Adobe Stock.

What Are the Deadlines? The first deadline is on June 1, 2018. It is mandated to submit an ENERGY STAR® Benchmark report for the 2017 calendar year. Thereafter, annual benchmarks are due every June 1. How Do I Comply? AB 802 requires annual energy consumption reports from each building. Building owners must authorize their utility provider to record and upload their building’s energy data to EPA’s Portfolio Manager, a reporting tool that allows building owners to compare their building’s energy efficiency with similar buildings. Where Can I Get Help? Vert Energy Group built www.AB802Benchmark.com to be a powerful online tool that simplifies the compliance process for building owners and managers. It eliminates the need to coordinate between various utility companies to obtain whole-building energy consumption data, inputting that data into ENERGY STAR® Portfolio Manager, and then submitting the proper documentation to the AB 802 reporting agency. Note: The first deadline for multifamily buildings is on June 1, 2019.

— From Sharon Fredlund, executive director, BOMA Silicon Valley

YOU WOULDN’T MOVE TO A BUILDING WITH SUB-PAR CONNECTIVITY. WHY WOULD YOUR TENANTS? 95% of building owners and property managers say that access to advanced communications services is a key selling point behind only location and price.1

CA Metro Areas Lead Nation in Energy Star Ratings Los Angeles is #1 in the Environmental Protection Agency’s EPA’s annual Top Cities list that shows which metro areas were home to the most ENERGY STAR certified buildings in 2017. Other California metro regions continue to make impressive strides in cutting American energy bills and pollution through energy efficiency. “Their efforts contribute to stronger economies, healthier communities, and cleaner air for all of us,” says an EPA statement. Rankings in the nation: Los Angeles #1, San Francisco #6, Riverside #12, San Diego #13, San Jose #18 and Sacramento #22. 716 buildings in Los Angeles were ENERGY STAR-certified, amounting to more than 145 million square feet and an estimated annual energy savings of $229 million. The Washington, DC metro area ranked #2 in the nation.

33 California Buildings News • Q2 2018

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BOMA International’s Legislative Efforts Successful The Building Owners and Managers Association was instrumental in preserving the ENERGY STAR® program, which the Trump administration had proposed to eliminate in the FY18 budget. BOMA engaged its grassroots network to educate Congress on the importance of protecting this crucial program and its related tools. “We are uniquely qualified to make the business case for ENERGY STAR, which is ingrained in operational practices for many of our members. We will remain vigilant in defending the program as the budget debate continues,” said BOMA Chair Robert M. Brierley. BOMA INTERNATIONAL’S Legislative Action Center is an interactive online resource essential for communicating BOMA’s priorities and concerns to elected officials. When a legislative issue arises, use the Legislative Action Center to contact federal or state process. Coming off the previous International Code Council’s I-Codes cycle, its codes team worked with Code Action Committees to monitor issues that

will likely see movement in 2018. In addition, BOMA was represented in ASHRAE 90.1 and 189.1 code meetings, which aim to simplify code requirements and defeat overly burdensome proposals to our industry. BOMA also achieved a victory on the Energy Efficient Commercial Building Tax Deduction, commonly referred to as 179D. The incentive, which expired in 2016, was retroactively extended through the end of 2017 in the Bipartisan Budget Act of 2018, and BOMA now is working with Congress to secure a longer-term extension. Last year, BOMA, in collaboration with other real estate industry groups and with support from a grant from software developer Yardi, released a study showing the costs and benefits of modernizing and extending this tax deduction. The study estimates that as many as 77,000 jobs would be created and $7.4 billion would be added annually to the national gross domestic product if Congress passes a long-term extension and modification of 179D.

34 California Buildings News • Q2 2018

Association News

AIA-SF Design Awards Showcase Talent Array Winners Include Micro Home Design to Sustainable Interiors

The American Institute of Architects, San Francisco chapter (AIASF) announced the award recipients of the 2018 AIASF Design Awards featuring a full range of talent from condominium micro-units and affordable homes to rainwater recycling to transformative corporate interiors and wine country homes. “AIASF has a plethora of talented design firms each year. The jury has their work cut out for them, and this year was no exception,” says AIASF 2018 President Rosa Sheng, FAIA. The awards program recognizes the outstanding achievements in architecture and design of Bay Area individuals and organizations as well as celebrates the distinguished work of architects and related professionals from afar who contribute to the framework of our local built environment. The program serves to inform the public of the breadth and value of architectural practice.

“AIASF received over 200 submissions, featuring a wide spectrum of projects from across the globe,” AIASF Executive Director Jennifer Jones, CAE, IOM, commented. “Each project is uniquely innovative and inspiring; it is an honor for our chapter to recognize and celebrate the creative work of our talented local design community.” The Design Awards submission is structured into main categories and optional concentrations. In addition to the design awards given in each main category—Architecture, Interior Architecture, and Unbuilt Design—the jury may also choose to recognize projects that exhibit special achievements in three concentrations, giving special acknowledgement to projects that further encompass the values of good design within the context of historic preservation and social responsibility. The 2018 AIASF Design Award Honorees are featured online at aiasf.me/2018DesignAwards.

Some Featured Award Winners

Five88

388 Fulton Architecture Honor Award David Baker Architects Photography: Bruce Damonte Photography

Architecture Merit Award with Social Responsibility Commendation David Baker Architects + Paulett Taggart Architects Photography: Mariko Reed

San Francisco Art Institute at Fort Mason Center Architecture Citation Award Leddy Maytum Stacy Architects Photograpy: Bruce Damonte Photography

(More winners on next page)

35 California Buildings News • Q2 2018

AIA Featured Award Winners Basix Headquarters Interior Architecture Merit Award| Axelrod Design Photography: Amit Geron

270 Brannan Rainwater Collection + Recycling Special Commendation Meyer + Silberberg Land Architects + Pfau Long Architecture Photography: David Wakely Photography

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36 California Buildings News • Q2 2018

CoWorking Space Cost Soars in San Francisco, Still A Deal San Francisco is one of the most expensive places in the world in which to rent a desk, with average monthly costs ranging between $950 in Downtown to $1500 in the exclusive Financial District. Despite this, research by Instant Offices indicates the city’s flex workspace market is also one of the fastest growing in the world, alongside New York and Los Angeles. In 2017, San Francisco experienced a 13% increase in centers offering co-working, flexible and hybrid office space. This was against an already established base, with high desk rates indicating the strength of the market. As demand for space in the city continues to soar, impressive YoY growth in the flexble and co-working sector means busiArea Average Desk Cost # of Centers nesses can still afford to secure space in San Francisco’s most Downtown $950 5 popular districts. (See chart in box.) South of Market $998 16 As more businesses swap the constraints of traditional offices for agile workspaces, flexible leases and improved networking Nob Hill $1,192 4 opportunities, San Francisco’s established city market continues Financial District $1,500 8 to dominate. No longer just for freelancers, remote workers and start-ups, large corporates are also seeking new opportunities and long-term flexibility, and brands like IBM, Amazon, Glassdoor and Sephora have joined the city’s expanding tenant base. Additional research by Instant Offices, which collates more than 20 years of data, shows businesses can save up to 73% by choosing flexible office space over conventional leased space in the world’s major cities.

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37 California Buildings News • Q2 2018

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Santa Rosa Multifamily Complex Offers Smart-Home Technology The Wolff Company, a fully-integrated real estate private equity firm that is focused on the multifamily sector, announces that phase two of the upscale Annadel property in Santa Rosa, California, is now available for rent. The property’s brand new one-, two- and three-bedroom apartments will feature cutting-edge smart home technology designed to appeal to tech-savvy Sonoma County renters, along with access to a new saltwater lap pool with underwater speakers. Says Matt Perrin, executive vice president, Asset Management for The Wolff Company. “We are thrilled to expand on Annadel’s success and provide residents with new living options that add next-generation convenience and value.” Through a partnership that is the first of its kind in the multifamily industry, all new apartment homes at Annadel will be equipped with CASPAR smart home technology. Residents of the property will be

able to choose from three CASPAR packages that best fit their lifestyle, encompassing a set of the following features that integrate with mobile devices: n A voice assistant that accepts resident commands n Intelligent awareness that allows residents to check in remotely about their home interiors, pets and adjacent exterior areas n Roller shade automation and lighting automation, including custom lighting color controls, dimmer controls, and remote on/off capabilities n Multi-room music system allowing residents to play their favorite music through in-wall speakers, or hand over the controls to a guest DJ n Remote temperature adjustment n A notification system alerting residents to their guests’ arrival n Intelligent package notifications n Connections with residents’ devices such as Amazon Alexa, and Apple Watch

38 California Buildings News • Q2 2018

Industry News

Buildings’ Earthquake Vulnerabilities Need Assessment, Say Experts Loss of Buildings in Quake Could Cost More than $1 Trillion in LA, Cripple State’s Economy How many buildings in California are at risk of failing in a major earthquake? A group of seismic safety experts spoke out recently about new legislation that could provide more accurate data about the damage that could happen when The Big One strikes. California Assemblyman Adrin Nazarian, addressing the 56th Annual Business Meeting of California Building Officials (CALBO), explained the significance of his bill, AB2681, to provide a comprehensive assessment of vulnerable buildings in highly populated regions prone to earthquakes. He was joined by Evan Reis, executive director of the United States Resiliency Council; Ali Sahabi, chief operating officer of Optimum Seismic; Ryan Kersting, associate principal at Buehler and Buehler, and David Khorram, immediate past president of CALBO. The group of speakers collectively addressed issues related to seismic resilience as outlined in a recently whitepaper study, “The Case for Earthquake Resilience—Why Safer Structures Protect and Promote Social and Economic Vitality.” “It’s great that we’re able to protect lives,” Nazarian said, “but if we are not able to protect the buildings that house large numbers of tenants and office space, in a place like the Greater Los Angeles area, we’re looking at upwards of maybe a trillion dollars of loss in damage and diminished economic activity over the course of however many years it takes us to rebuild.” Many of the speakers at the March event in San Francisco are members of the Seismic Resilience Initiative (SRI), a working group led by the United States Resiliency Council that includes BizFed, California Building Officials, practicing California Structural Engineers and others with technical assistance from the California Seismic Safety Commission, California Office of Emergency Services, the California Department of Insurance, and the International Code Council. The mission of SRI is to promote statewide policy that will identify buildings known to present a heightened seismic risk of death, injury and damage

based on their age, structural system, size and location. Sahabi said the problem of earthquakes is not restricted to California. If a major quake strikes and disrupts business and the local economy, the impacts will be widespread. “AB 2681 will have a positive and multifaceted impact on our communities,” Sahabi said. “By identifying our vulnerable buildings, we can implement positive social change to protect our limited housing stock. The bill supports the economy by preserving the buildings where people do business and make a living. Finally, it minimizes the disastrous environmental impacts that widespread destruction would bring, burdening our streets and landfills during recovery.” More than 90 percent of most buildings in California’s major metropolitan areas were constructed before modern building codes, Reis said. Noting that automobiles are required to post ratings for fuel efficiency and safety, he said buildings should be subjected to the same level of transparency. “We should have rating systems for buildings like we have for cars,” he added. Nazarian’s bill will identify California’s vulnerabilities and provide a thorough assessment of the potential impacts we face as a state— spotlighting communities where there is an urgency to address the matter. The legislation, if adopted, will: z Develop criteria to identify seismically vulnerable building types. z Direct building departments to develop an initial list of potentially vulnerable buildings. z Notify building owners that they may have potentially vulnerable buildings. z Direct noticed owners to verify the vulnerability of the structure. z Build and maintaining a statewide data repository of potentially vulnerable buildings. z Identify possible funding mechanisms to offset costs to building departments. Photo: Adobe Stock.

39 California Buildings News • Q2 2018

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Construction Costs Soar in California Major California metro areas experienced some of the nation’s highest construction costs during the first quarter of 2018. International property and construction consultancy firm Rider Levett Bucknall (RLB) has released its latest quarterly construction cost report for North America with data current to January 1, 2018 gathered from 14 cities across the United States and Canada. Julian Anderson, FRICS FAACE, President of RLB North America and Chairman of the Global Board, said, “Our first quarter cost report is an empirical snapshot of the construction industry during a year when it was confronted by turbulence from proposed infrastructure programs, building-material tariffs, and immigration policies that impact labor pools.” Market Highlights s RLB reports that the U.S. national average increase in construction costs was 4.2%. s Los Angeles (7.59%), Portland (6.05%), and San Francisco (6.23%) were the markets showing the greatest cost escalations

s Boston (3.16%), Chicago (5.35%), Denver (3.76%),

Las Vegas (3.63%), New York City (3.29%), Phoenix (4.31%), Seattle (5.1%), and Washington D.C. (3.2%) experienced annual cost increases ranging from 3.2% to 5.4%. In Canada, Calgary (.34%) and Toronto (1.06%) saw smaller increases in costs s Over the course of 2017, construction activity in Honolulu, Portland, and Chicago held stable, while Boston, Denver, New York, Las Vegas, Los Angeles, Phoenix, San Francisco, Seattle, and Washington D.C. markets experienced an upturn in activity. Photo:: Adobe Stock.

40 California Buildings News • Q2 2018

Interior Design (Continued from page 11) a millennial workforce as well as better all these smart customers and build spaces align with a company’s culture support and inspire the current employout our new space like they hired us and strategic goals, the workplace ees, AAA wanted a space that was to do for them! Prior to our relocating, will only increase engagement and more balanced between offering this we were space-constrained with only productivity. Today more than ever, focused space in addition to a variety 120 square feet per employee. Now we employees are looking for control of dynamic collaboration spaces.” have twice the space and many more and autonomy. By providing a range “Offices strategically designed areas for our employees to gather, not of settings that enable employees to around activity-based choose when, where working provides and how to accomemployees with a plish their work, choice of settings the workspace tranallowing them to scends the ordinary spend their day in and becomes a place the type of spaces where happy and where they are most productive employees productive based on thrive. At Affirm’s the type of work they new headquarters in must do that day,” San Francisco, we’re says Evelyn Lee, seeing just that. The regional workplace activity-based workmanager, West Coast place offers a variety lead at Newmark of settings for the Knight Frank, a financial-tech employAffirm office. Project design: SmithGroupJJR. Rendering courtesy of SmithGroupJJR. global commercial ees to work effectivereal estate firm. “We’ve helped compaonly to collaborate, but to develop ly. The company also encourages a nies lower capital costs, increase team friendships. We see many more smiles healthy lifestyle by offering adjustable sales, and decrease product developand much more positive and encouragheight workstations, access to healthy ment cycles. It’s important to keep in ing team work. I am now a believer in snacks and catered meals on-site.” mind that implementing a successful open concept office space!” Blitz Co-Founder/Principal and San workplace layout goes beyond the Francisco Director Melissa Hanley, More Designers Assume implementation of physical space. It says, ”The physical office space is Larger Corporate Roles requires a knowledge of the cultural a significant factor in a prospective According to a NAIOP Research behaviors and processes that need to employee’s decision to join an organiFoundation report last year, California be adapted to make businesses achieve zation. The built space gives an instant leads the country in tenant improvesuccessful outcomes.” window into how a company operates ment projects with $9.7 billion-plus Craig Rossi, CEO of San Franciscoand how they value their employees. in total outlays, supporting more than based Rossi Builders, says, “For over That’s why it’s so crucial to get the 62,000 jobs. Nationwide, TI activity eight decades we have been building design right. When designing a space, generates $101 billion in total output, out work spaces and over time we whether it’s for a young start up or a supporting more than 677,000 jobs. have seen many changes in work envimulti-office international organization, That’s a considerable outlay of money ronments. I, personally was a skeptic we are looking to enhance the orgaand personnel devoted increasingly of the more collaborative environment, nization’s culture and develop a mix to improving workplaces. And, since even when we built out the open of workplace typologies that support human resource costs are the biggest concept space for Atlassian in San mobility and allow individuals choice item on any balance sheet, crafting Francisco’s Mission District back in and variety in their work environment. more productive work environments 2008. We build the spaces our Designing for these various activities can have an enormous impact on procustomers want, but we don’t experiand allowing for flexibility based on ductivity and well-being. Considerable ence the results as we are not part of task, personal preference, and mood focus is devoted to that task in projects their day-to-day business after comhas a significant impact on how teams throughout California these days. pletion. So, when we were forced to collaborate and individual productivDrew Padilla, Design Principal relocate our business after 52 years in ity.” (See some of the firm’s work on at SmithGroupJJR, says, “When the same building, we decided to join pages 10 and 11.)

41 California Buildings News • Q2 2018

Stantec-designed office in Sacramento features collaborative areas. Photo credit: Joe DiGiorgio.

“Two years ago at NeoCon, Steelcase broadcast a live survey on a 20’ high screen in their showroom,” says Alana Lopez, a senior associate in Stantec’s buildings group in San Francisco. “The intent of the survey — understand the factors affecting employee effectiveness and productivity at work. At the end of the three-day survey, the results were clear —the #1 culprit was open office disruptions. “Employees were getting less done in their workday because the open office model made it difficult to focus on tasks and be efficient with their time. In response to this, designers have been reinventing workplace standards; office layouts are swinging away from the open office model to a more activity-based workspace, where the interspersing of collaborative areas, work lounges, desks and conference rooms create a rich and varied work landscape. “These new amenities not only help attract talent but also contribute heavily to employee satisfaction and longevity. As a ramification of that move, we are also seeing a migration towards free-address workspaces, where employees do not have assigned seats but rather are free to roam and touch down where they see fit. This allows for a better work-life balance, where employees can (and are encouraged) to work remotely, which in turn leads to higher employee satisfaction. In the end it’s about providing

employees with the best spaces to do their best work in the best way.” David Jacobson, executive vice president-–commercial practice at Nadel Architects in Los Angeles, says, “Today’s technology-driven companies aim to attract and retain younger personnel with appropriate skill sets. The ‘new norm’ in workspace design is defined by a vibrant, contemporary image and added amenities. “The Enthusiast Network (TEN’s) new headquarters is a perfect example of this,” he adds. “TEN is the world’s premier network of enthusiast brands, including prominent automotive publication, Motor Trend. Communal spaces are important in supporting both the social environment and professional collaboration. Nadel Architects’ design of TEN’s facility includes an elaborate kitchen, discrete vending machine area and casual seating. The exterior patio comprises three linked outdoor areas for informal gathering. The centrally-located ‘living room’ area includes seating around a fire pit while the ‘kitchen’ area has a full barbeque setup and the multipurpose area includes a removable ping pong table. The TEN staff love the new open office environment and have accepted the privacy trade-off. Private offices all have glass walls, creating a sense of openness. Office characteristics of this nature encourage employee engagement and often prove effective in increasing team morale.”

Michael Bohn, senior principal and design director at Studio One Eleven in Long Beach, says, “With a mission of creating more vibrant communities, Studio One Eleven chose to relocate to an empty storefront in an overlooked area of downtown Long Beach with the intent of activating change. Our initial $2.5 million investment has spurred another $19.5 million within the area the first year after opening. The new workspace encourages collaboration, community, and innovation featuring an open work environment, with only one dedicated office for human resources. A loading dock

Studio One Eleven workstations. Photo: Carlos R. Hernandez Photography.

has been converted into a patio with a fire pit, seating and edible green wall providing staff the chance to enjoy lunch or to work outside. Recognized with LEED Platinum and WELL Gold Certification, only the second architectural firm to achieve this in the U.S., the new environment has made a huge impact on employee satisfaction. Bottom line: When companies spend the whale’s share of their budgets on people and far less on real estate, even incremental workplace improvements that produce greater staff productivity and well-being will boost profit margins. n

42 California Buildings News • Q2 2018

IREM Q&A (Continued from page 15) an opportunity to be involved with IREM at a cost that they can afford. Our Student Outreach program introduces college students to property management through IYP —IREM Young Professionals. IYP provides education and social networking opportunities in a casual and fun environment. The events are specifically created to encourage students, young professionals and others interested in property management to learn more about the real estate management industry and IREM. Additionally, we partner with other trade and professional organizations to provide services to memberships other than ours. Q: What is the biggest threat to your industry these days, and what can be done to alleviate it? Looking beyond the immediate need of more housing, I think that there are two big threats to our industry: workforce and government regulation. As other industries are looking to streamline their industries with robots and machines, we have a real opportunity to showcase the careers that are available within the real estate industry. We are a business based on fiduciary relationships. Robots will never be able to manage relationships and we will always need a strong workforce of bright and compassionate people. If we are not finding, sourcing and educating our next generation of leaders that understand the importance of relationships,

NIMBYs Stifle Housing (Continued from page 2)

our situation will continue to worsen. On the other hand technologies to create real time communication between people and buildings are exploding. Government regulations often serve to threaten the rights of owners of real estate— whether threats of rent control, repeal of Cost Hawkins in California, expansion of just cause eviction, threats to a property owner’s ability to remove their property from the rental market, threats to the funding and rules of federally-assisted housing, inability to build — we have a responsibility to educate our legislators and voters to prevent government over reach. Q: Is commercial real estate doing an effective job to recruit new people to the industry? There are an increasing number of colleges and universities that are offering real property management as a degree program. IREM has done an excellent job of outreach through participation in the real estate societies and other on campus groups to introduce ourselves as a valuable choice in consideration of a successful career development vehicle. As stated earlier, it is important that we continue to develop strong relationships to provide quality management, leasing, and housing to all persons. Our international organization has just rebranded and is in the throes of a large-scale marketing effort to showcase our organization to the next generation of managers—both as an educational resource and for career growth as well. IREM: For Those Who Manage to Make a Difference. n

Green Tech Innovations (Continued from page 23)

Educating Buildings People Every sector of our industry is eagerly searching for qualified workers—and even unqualified ones. Especially the latter, since we need to recruit people to become property and facility managers, builders, carpenters, plumbers, electricians, brokers and architects and the army of specialists who sell and service products to commercial real estate. Union carpenters even go into the grade schools to tout the virtues of a carpentry career. Organizations like BOMA San Francisco, BOMA Oakland/East Bay, IREM San Francisco Bay Area and NAIOP San Francisco Bay Area Chapter team up to fund programs at schools like San Francisco State University and Merritt College through their CREATE alliance. IFMA and AFE sponsor many initiatives with schools to train engineers. And all of these associations offer useful programs within their own ranks, some of which are even more focused than institutional education. There are numerous good career opportunities in the greater buildings industry. Pass the word! n — Henry Eason

California's strong energy and green building codes (CALGreen) are pre-approved for significant streamlining of fundamental LEED requirements. “The LEED streamlining announcement today is welcome news for local governments and LEED practitioners in California,” states USGBC-LA Executive Director Dominique Hargreaves. “Recognizing the work it takes to meet CALGreen and streamlining the LEED energy pre-requisites and credits will reduce costs and allow teams to pursue higher levels of LEED. The timing of this announcement today, during our conference, could not have been better.” USGBC-LA worked again this year with the Zero Waste Company to further encourage zero waste practices at MGBCE. The 2018 MGBCE achieved an 84% diversion rate, with the event generating less waste to divert than in 2017. For information on USGBC-LA or MGBCE 2019, contact Dominique Hargreaves at dominique@usgbc-la.org n

43 California Buildings News • Q2 2018

New Projects Huge Mixed-Use Development in Alameda Ground was broken this spring for the massive mixed-use, transit-oriented waterfront development at Alameda Point, the majestic site just across the Bay from San Francisco. Trammell Crow Residential announced the first phase of the 68-acre site from the City of Alameda to Alameda Point Partners (APP). “Closing this deal and starting construction on Site A’s phase one $500 million development is significant,” said Bruce Dorfman, Senior Managing Director of TCR’s Northern California division and a member of APP. “TCR looks forward to delivering an integrated master-planned community on the Bayfront which will not only be a model for other cities struggling with similar redevelopment sites, but also provides the new residents and the City of Alameda with significant public benefits, including a new commuter ferry service to Downtown San Francisco,” Dorfman noted. “Besides offering unparalleled views of the San Francisco skyline and the Bay, with the new ferry and other transit options, Alameda Point is incredibly conveniently located to many of the region’s largest employment centers.”

Project renderings. Images credit: Alameda Point Partners.

Downtown LA’s Biggest Mixed-Use Project Announced Located in the vibrant South Park neighborhood of Los Angeles, Oceanwide Plaza will introduce the largest mixed-use development to Downtown Los Angeles, comprising of three towers: two towers featuring the 340 residences of the Residences of Oceanwide Plaza, a tower to be known as the tallest residential building in all of Southern California featuring the 184-room Park Hyatt Los Angeles hotel topped by the 164-unit hotel-serviced Park Hyatt Los Angeles Residences, as well as a 153,000-square-foot retail collection at the base. The Park Hyatt branded residences will be outfitted with ultra-luxury amenities including a resort-style cantilever pool and fitness facility, while the Residences at Oceanwide Plaza will feature a comprehensive luxury amenity suite, the pinnacle of which will be a 100-foot high, two-acre sky park outfitted with two dog parks, a basketball court, lawns, a 1/5th mile running track and swimming pool. A 700-foot LED ribbon will wrap the perimeter of the building below the 2-acre sky park.

Project renderings. Images credit: Oceanwide Plaza. Projects icons: Adobe Stock.

44 California Buildings News • Q2 2018

Your RFP (Continued from page 4) w Know when to walk away If the RFP says Friday at 5:00 and only received by soft copy and the response shows up the following Monday in 10 binders detailing the last 50 years of each execu-tives history, walk away. w Have them detail the employee engagement program z Training z Work-life balance z Diversity of workforce and in leadership roles which tells you a great deal about the long-term relationship you’re trying to develop. w Here is a great one: references No bright and shiny reference/ testimonials from their “20-year customer.” I want to know about error recovery, when they lost a contract, what happened and what they

learned from it, etc. Letters from mommy on how X, Y, Z company is the best thing since Tabasco Sauce was invented is useless. We all make mistakes and lord knows I could write a book about mine, but I learned something from each to help craft me into a better person. Your partners should have learned the same lessons. w Of course your purchasing department are key contributors and have a great deal of responsibility in supporting us and delivering the RFP, receiving the responses, dealing with requests for more information, awarding contracts, etc. for a lot of different reasons. But my expert advice is to engage them early and often. Morgan is based in the San Francisco Bay Area with SAP Global Real Estate & Facilities

Cannabis Risks (Continued from page 8) coverage to landlords who own buildings leased to a cannabis facility. If an owner leases to a cannabis user after the policy is in place and the insurance company finds out about it, the policy will likely be cancelled. If they find out when a claim is filed, that claim will likely be denied. As a result, there are new insurance companies specializing in a wide range of policies to protect both the cannabis business owner and the property owner. California’s insurance commissioner, in his recent announcement, is now encouraging insurance companies to enter the cannabis business. However, these policies can be expensive and include the standard range of coverages, as well as crop coverage, lounge and event coverage, and lab and testing coverage which are not generally covered in a standard policy. Title Insurance. An ALTA title insurance policy has words to the effect: “exclusions from coverage include any law, ordinance, permit or governmental regulation restricting, regulating, prohibiting or relating to the occupancy, use or enjoyment of the land, or any violation of these laws.” After the Cole amendment was put into effect, the four national title insurance companies explored ways to provide title insurance for cannabis purposes. I was told that ways were found to work around the federal law concerns, and title insurance was offered for a short time. Following the Sessions announcement, that effort stopped. With the recent announcement from the California insurance commissioner, this may change again.

The risk here can be considered less important than standard business insurance coverage, as it applies only to situations where a flaw in the title is discovered. One potential work-around would be to purchase a building (as described above) and accept CLTA title insurance instead. The underwriting criteria are less stringent, and a cannabis use may not be detected, thereby allowing the purchase to be completed. However, the risk of a claim being denied later still exists. There are additional risks associated with the nature of the cannabis business — the use of cash only, the greater consumption of electricity and water, the risk of mold, which is not generally covered by insurance, and the need for enhanced security. For a more in-depth study of these topics and more, I suggest the Third Quarter 2017 issue of The View, published by CREW San Francisco (https:// www.crewsf.org/?q=system/files/view/2017%20Q3%20-%20 Marijuana%20-%20web.pdf ). The range of business risks associated with cannabis today is a result of the federal categorization of cannabis use. If cannabis use were re-classified at the federal level, these risks would be greatly reduced or eliminated. As a result, the cost of operating a cannabis business would be reduced, the cost of the product and related services would be reduced, and the black market (which I am told is alive and well) could be eliminated, giving the government legislative control over the industry.

Katherine A. Mattes is a real estate consultant and can be reached at www.kathymattes.com

45 California Buildings News • Q2 2018

Security Insights from the Show Recent advances in identity management have mostly been linked to the advances in biometric technology. As more security systems begin to feature biometrics standards around both the technology and use of the technology must be addressed. Access management has always been a rudimentary process driven by controlling people with processes to managing security and access to critical and non-critical infrastructure. However, access control is now used for virtually every area of our world. Unfortunately, granted (or denied) access is a very one-dimensional concept since it relies primarily on a physical card, password, biometric reader, or using a two or three-part authentication process. Today, the goal is not simply to use a method to detect and verify access, it’s more a question of credential and the evolution of the credential as you. The primary challenges revolve around privacy and the process of storing and retrieving your credentials. The goal for this session is to define what a credential is and how can it be applied to virtually every area of our lives. From access to buildings, facilities, and many other areas we see that IT, OT, Physical Security is relying on credentials to improve safety, security, and business process. “Artificial Intelligence” (AI) and “Machine Learning” (ML) are two of the hottest buzzwords of the day -- along with “deep learning”, “predictive analytics”, and “big data.” Many security systems purport to use these technologies and many do. However, there’s also a lot of hyperbole and hype that makes it hard to separate the signal from the noise. With cyberattacks and breaches on the rise, organizations are increasing their focus and competency in prevention and remediation. Professional cybersecurity specialists have established and leveraged a variety of effective practices to assess organizational specific threats they face as well as a step-wise process to determine their impact, priority and measures to minimize their likelihood.

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Security Products (Continued from page 7) Controllers – Brivo Brivo ACS300 Wireless Access Controller; Cloud Solutions – Honeywell MAXPRO® Cloud; Commercial Monitoring Solutions – NETGEAR FlexPower Camera & FlexPower Base Station; Commercial Monitoring Solutions – Louroe Electronics Digifact™ A; Convergence and Integrated Soft-ware and Solutions – ASSA ABLOY DSS Openings Studio Electrical Elevations; and Cybersecurity – Razberi Technologies Razberi™ CameraDefense™. Burgeoning Interest in Security Threat Industry The fact that ISC West and other security conferences are drawing record numbers of attendees is an indication of the perceived and proliferating threats to buildings’ security. ISC West experienced its biggest show ever and drew speakers from agencies like Homeland Security and an unprecedented number of international security manufacturing exhibitors. This year ISC West offered more than 85 sessions throughout the SIA Education@ISC program, spanning a range of topics that impact security professionals across physical, IT and IoT security — from biometrics to drones to leadership skills. Some of the most highly-attended sessions were access control and video in the cloud, the evolution of credentials and their use in the IT, OT, and the future of physical security. n

46 California Buildings News • Q2 2018

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