Design & Operation of Facilities
Q3 2017 • $5
Multifamily Living Major Trend Toward Apartment Life Stimulates New Designs and Products Landscapes Boost Building Values
Fire Prevention
Centenarian Roofing Hotels Innovations
Contents 4 Multifamily Living is Great... and Promises to be Even Greater My wife and I live very happily in a splendid apartment in San Francisco, with very few fond memories of houses where we’ve lived. As empty nesters, we enjoy the economies of scale apartments offer, their maintenance convenience, lack of back-breaking yardwork required, close proximity to mass transit, walkable neighborhoods and all the pleasures of our delightful city. What’s not to like? A lot…actually. The #1 complaint that millions of others have in this state is the lack of housing options that don’t consume so much of their income. A woman in our neighborhood who, along with her husband, earns more than $200,000 a year is forced to live with their young child in a one-bedroom apartment. The two-bedroom unit they were in cut too deeply into their budget, so their son will now have to sleep in his parents’ bedroom. There are countless stories like this throughout the state. Pollsters say the high cost of housing is driving a great many people to consider leaving California. The reasons for the housing crisis are complex and almost intractable, but can be solved with better political leadership — particularly at the state level, where lawmakers have the ability to override local ordinances that restrict development. Some of the articles in this issue address this topic. Reform is absolutely essential or our great state will lose its middle class.
Responses to Fire Challenges
Attracting Top Talent
8
Renovations Debuted at Western Roofing Expo
Dynamic Multifamily Landscape
16
Landscaping Boosts Value
22
28
Association News
Cover images: Main photo and roofing: Getty Images. Others: Adobe Stock.
California Buildings News Team Ellen Eason, Publisher ellen@easoncom.com Henry Eason, Editor henry@easoncom.com Contributing Editors
Compared to Arizona, Oregon and Washington, California’s ratio of housing units to population shows that approximately 1.5 million more people in the Golden State are without their own dwellings than in our neighboring states. In the other states, the ratio of people to dwellings is about 2.4. It’s 2.8 in California. One recent report puts California 49th in the number of housing units per person. California’s complex and madcap legal system skews development approvals toward commercial structures by penalizing tax collections for residences, providing no incentive for revenue-hungry local governments to approve new housing development. Add to that NIMBY influences and crazy-quilt environmental restrictions and the result is high living costs and a potential large outflow of population. (See page 22 for an article on which metro areas are most affected.)
Advertising Information Ellen Eason, ellen@easoncom.com 415.596.9466
That’s about 17% of the population. The number of apartment units in California exceeds the entire population of states like Missouri, Maryland, Colorado and Minnesota. There are 573,721 of them in Los Angeles (42% of its dwellings), 151,995 in San Diego (31% of its homes), and 145,056 in San Francisco (41% of dwellings). Apartment dwellers and their landlords constitute a large economic and political bloc, so they can be mobilized. — Henry Eason
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Key Players on Labor Shortage
Solar Triumphs, Challenges
34
20
Toughest Places to Build
Electrical Contracting Trends
26
10
Housing Crisis Solutions
How Bad Is California’s Housing Shortage?
More than 6.5 Million Californians Live in Apartments
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Zachary Brown, CBRE 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 Chris Rauber, Healthcare Writer Steven Ring, Fulcrum Real Estate Development Carlos Santamaria, CEES-Advisors
© Copyright 2017 Eason Communications LLC PO Box 225234 San Francisco, CA 94122-5234
www.cabuildingsnews.com Copyright © 2017 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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Manufacturers Respond to Fire Safety Challenges... Fire Tragedies—Many Affecting Residents and Tenants Fires continue to plague multifamily structures from London to Oakland, both inhabited and under construction, causing loss of life and property value and reducing housing stock in places like California, where shortages of living spaces are at a crisis level. Arson is suspected in the July burning of a downtown Oakland multifamily/retail center called Alta Waverly. Arson has been confirmed at four other multifamily units in the East Bay. Officials speculate that people opposed to downtown housing development could be motivated to set fire to such buildings. Oakland Mayor Libby Schaaf pledged to require more security to protect housing facilities from arson. The National Fire Protection Association (NFPA) has initiated a project to develop a fire risk assessment tool for these types of buildings to assist local authorities globally with fire safety in their communities. This project builds on previous NFPA work begun over the past few years, related to growing concerns about fire risks associated with combustible wall insulation components. “NFPA is committed to helping communities respond to current fire threats,” said Jim Pauley, NFPA president. “Given several recent tragic high-rise fires, this resource couldn’t be more needed or timely.” The risk assessment tool will help authorities having jurisdiction (AHJs) prioritize mitigation by incorporating a methodology that identifies key variables (such as wall materials, building fire protection systems, etc.). The risk assessment tool helps characterize those variables in terms of risk or mitigation potential and incorporates them into an engineering-based risk model. The project will be conducted by a global engineering team whose work will be overseen by an advisory panel of global stakeholders and experts. It is scheduled to be completed by the end of the year.
Combustible Wood Blamed…Some Cities Are Banning Its Use Wood fires comes at a particularly difficult time, as wood is a less costly material for badly needed new housing in California and elsewhere. With rising labor and land costs, wood has been preferred by many builders. International Building Code standards allow for up to five stories of wood-frame construction atop a three-story fireproof base usually made of concrete. More than 235,000 multifamily units were reportedly built in Photo: Adobe Stock.
5 California Buildings News • Q3 2017
the U.S. last year using wood, a steep increase over recent years. A group representing the concrete industry cited wood as a highly flammable material likelier to burn than other building materials. Kevin Lawlor, a spokesperson for Build With Strength, said, “It seems like not a week goes by without one of these buildings going up in smoke.” Lawlor’s group is a coalition of the National Ready Mixed Concrete Association, comprised of fire service professionals, engineers, architects, and industry experts. “Unfortunately, when it comes to low- to midrise residential buildings, developers are increasingly turning to wood-framing for negligible cost-savings. And it’s even more unfortunate that when one of these buildings burns to the ground, the community — and the affected residents and fire service profesRed Hawk Fire & Security’s complete line of passive fire protection services saves sionals— are left to pick up the pieces,” said Lawlor. lives. Photo courtesy of Red Hawk Fire & Security. Cities and towns like New York City, NY; Chicago, IL; Maitland, FL; Sandy Springs and Tucker, GA, have taken proactive steps to preemptively ban the use of combustible materials, such as wood, in this type of construction. “For buildings under construction that lack operational fire suppression systems, the threat is especially apparent,” continued Lawlor. “However, once complete, these buildings are still vulnerable. Because combustible materials are used throughout the structure, all it takes, in many cases, is a misplaced spark or a small, otherwise containable fire to ignite a literal tinderbox.” (Continued on page 42)
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6 California Buildings News • Q3 2017
How to Recruit, Hire, Train…And Keep Top FM Talent
A Bachelor’s Degree in Facilities Management…Really?!
Facility management (FM) is facing a critical shortage of professionals and urgently needs to attract new talent. This emerged from a new research report by IFMA and the Royal Institution of Chartered Surveyors (RICS). This critical report was entitled “Raising the Bar.” From operational excellence to straBy Larry Allen Morgan tegic impact in FM, the report, among other sources, clearly gives a bleak prognosis on our profession’s future. With more than 30 years in the FM profession in many different roles, I can share with you my thoughts on how we can avoid the talent gap and have amazingly talented teams. Recruiting: STOP letting HR or the recruiting department design the job description. No offense to them, but they are generally clueless about what facilities teams contribute to the core business beyond providing soft toilet tissue and keeping the lights on, etc. That leads to some canned and irrelevant criteria. Bachelor’s degree required? I hate to be the bearer of bad news, but a bachelor’s degree in janitorial supervision is not something I have ever heard of. I generalize, but the want ad might read: Wanted: People who like to do lots of different things most of the time; deal with many different types of people all the time; know the difference between up and down; can walk and chew gum at the same time; not interested in having a Ferrari as a commuter car or being the next Marc Zuckerberg; Controlled chaos is cool; Cultural misfits please apply; and robot–mentality people need not apply. Now that’s a framework I can work with and craft into a great FM. Hiring: Once you have a pretty good possibility pool based on the above then it’s on to the hiring process. It’s an art form to say the least. I know there are certain rules and questions you must follow and ask so you don’t end up having to update your resume no matter how ridiculous and juvenile those questions may be. However, please do not ever ask someone, “where do you see yourself in five years?” Image: Adobe Stock.
They may be thinking, “Sitting in your chair, so I can ask the real questions that high-performance interviewers would need to gauge the quality of applicants.” How about, Do you like to take things apart, analyze how they work, make improvements and put them back together?” If the answer is “Yes!,” and they give examples, hire them on the spot. Critical thinking skills are as important if not the most important skills a FM person can have. Plus, the greatest FM people I know have varying degrees of ADHD, so we don’t know or care what five years from now looks like, so don’t ask someone. We thrive in the moment: we are doers. Training: OK, so you finally cut through all the formal BS and got to the next two parts of your job as a FM leader, train and retain. Training comes in a million different forms. Some are mandated ones like HR policies, some are regulatory, others more task-specific (procedures), but you crossed a major threshold when you onboarded the candidate who could take things apart, improve them and put them back together. I suggest to start with training them on improving the team’s weaknesses, and all of them have them. You hired to fill a gap so why train someone on electrical systems test and inspection when your customer satisfaction survey scores are south of 2 on a scale of 5. Train the trainers and get out of the way. Nothing beats process or program improvement more than peer-to-peer. Every individual, no matter where they are in the organization and on the company food chain, will derive a great deal of job satisfaction from this approach. Abraham Maslow in his 1943 paper “A Theory of Human Motivation” thought of it as self-actualization: “What a man can be, he must be.” Retaining: It’s a sellers’ market when it comes to FM talent and especially top talent (reference my opening). So how do you keep your FM department from looking like the revolving mannequin display in Macy’s store windows? Well, if you followed along with the recruiting, hiring and training parts of this article, then you certainly have created and fostered a damn fine place to work. A few more thoughts: Do the individuals know what they contribute to each other, the team, the organization and the strategy of the company? If not, they need vision and mission (Continued on page 43)
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Western Roofing Expo Showcases New Products... From Restoration Solutions to Complete New Roofing Systems The Western States Roofing Contractors Association’s (WSRCA) Western Roofing Expo 2017, bringing all the elements of the roofing and waterproofing industry together, had a near record-breaking turnout over the duration of three days in Las Vegas in June. More than 3,300 attended.
Top photo: McElroy Metal ‘s 138T Shingle Recover System offers a method to recover existing asphalt shingles with a symmetrical standing seam metal roofing system. Photo courtesy of McElroy. Lower photo: Snap-Clad panels used on a school. Photo courtesy of PAC-CLAD | Petersen Aluminum.
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oofing professionals from throughout the West experienced actionfilled events including the annual sporting tournaments, welcome party and auction, exhibit floor, live product demonstrations, and live shingling competition called The Roofing Games™. As the trade show floor began its final events of the year that Tuesday, Western States Roofing Contractors Association and Malarkey Roofing Products once again hosted the shingling competition known as The Roofing Games™. Participants
competed against one another in a timed installation of a Malarkey® roofing system on a small wooden deck — and were judged on accuracy, aesthetics, workmanship, and, of course, speed. For the second year in a row John Miles of Wick’s Roofing of California was the 2017 winner with a time of 2:29. The expo’s Davis Memorial Foundation sponsors scholarships to attract people to the industry from throughout the country, including Paola F. Gomez (Oakland, CA– Oakland Charter High School).
Standout Products on Exhibit Duro-Last®, Inc. is the world’s largest manufacturer of custom-fabricated, thermoplastic single-ply roofing systems. With the flagship Duro-Last Membrane, the factorycontrolled custom-fabrication process reduces rooftop labor by eliminating up to 85% of field seams and dramatically reduces the potential for leaks. Another key factor in the Duro-Last Difference is a weft-inserted anti-wicking scrim with a density of 18 by 14 per inch, giving the membrane its strength and durability. (Continued on next page)
9 California Buildings News • Q3 2017
Available in 40, 50 and 60 mil in a variety of colors, the Duro-Last Membrane is the only product in the marketplace to offer prefabrication of the entire roofing membrane. Additionally, Duro-Last offers a 15-year warranty with consequential damage coverage—unique to the industry— for the Duro-Last prefabricated roofing system. Snap-Clad metal roof panels from Petersen feature aesthetic and structural performance. The panels are produced in continuous lengths, are corrective leveled for superior flatness and feature an optional factory-applied sealant bead for improved weather resistance. Lengths are from 4 feet to 64 feet. Snap-Clad panels feature a 1-3/4-inch leg height and a continuous interlock for improved strucA Duro-Last roof. Photo courtesy of Duro-Last. tural performance and wind resistance, and come in 45 PAC-CLAD colors. A concealed fastener clip system allows for thermal expansion/contraction while providing hold-down strength. GCP Applied Technologies, formerly Grace Construction Products, announced breakthrough enhancements to its leading self-adhered roofing underlayment portfolio. GCP Applied Technologies’ Grace Ultra™ roofing underlayment is designed to protect sloped roofs from the effects of winddriven rain and ice dams in applications, where the membrane must withstand high in-service temperatures for extended periods of time. Now with an extended exposure time of 120 days, Grace Ultra’s unique butyl adhesive formulation offers premium adhesion to the roof deck, high-quality laps, superior seal Application of GCP Applied Technologies’ Grace Ultra™ roofing underlayment. around roofing fasteners, and outstanding high temperature stability. Photo courtesy of GCP Applied Technologies.
(Continued on page 43)
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10 California Buildings News • Q3 2017
Multifamily News
Multifamily Living… A Changing Landscape Younger, Older, Single and Wealthier People Are Becoming Renters
Photo: Getty Images, nd3000.
Apartment living is at a 50-year high, according to the National Apartment Association, rising over the past decade from 31.2% of households in 2006 to 36.6% in 2016. For a variety of complex economic and sociological reasons, the type of people who rent apartments is evolving— and with it so are the designs and operations of multifamily complexes. According to research by RentCafe and others, households with incomes of more than $150,000 per year are renting homes at a much higher rate than they are purchasing houses. As older empty-nesters in suburbs seek a more urban experience, they are cashing out of suburban houses where they raised families and are renting apartments in or near city centers, where the action is. Younger people are not only less able to afford California’s increasingly costly houses, but in many cases they prefer living in apartments because they enjoy community features and nearby restaurants, parks and entertainment. Apartment units—and the appliances and furniture in them—are getting smaller and their community areas within complexes are becoming larger and more comprehensive as single people require less room and find it difficult to afford larger units. For instance, five Bay Area cities are among the nation’s 10 priciest metros. On average, San Francisco units top $3,400 per month, San Mateo just above $3,000, Sunnyvale more than $2,800, Santa Clara almost $2,800 and San Jose above $2,600. Apartments have long been a haven for lower income people, but they are now the homes of choice for people of all earning levels — especially in popular cities with cultural and recreational amenities, public transportation and better economic opportunities. The challenge for multifamily designers, owners and operators is to provide enhanced living experiences that match higher costs. Smaller units mean less in-home entertaining, so more community areas are desirable. Convenience is also becoming important, so more automatic package handling is gaining popularity, along with wireless connections, since an increasing number of people also earn part or all of their living from their apartment homes. At the same time all of these changes are occurring, the scarcity of available units is at a crisis level in California. Our package of articles examines many of these themes and describes some of the products that improve apartment living.
In This Section
Great Maintenance is Key to Multifamily Success • Page 13 Measures Needed to Build Apartments • Page 17 Solutions & Products for Apartments • Page 19 There Are Tougher Places to Build Than California • Page 22
11 California Buildings News • Q3 2017
From luxury apartments to subsidized facilities to such innovative projects as “stacked” units comprising an entire complex, California developers and architects are demonstrating innovative and creative ways to house tenants.
s
Outstanding California Multifamily Styles
Elan Menlo Park
Elan Menlo Park is a 146-unit luxury apartment community in Menlo Park designed by KTGY Architecture and developed by CityView and Greystar. It is a contemporary-designed apartment community located near major employers, restaurants, shopping, services, medical, education and transit. In addition to the 146 luxury apartment homes, the apartment community features over 17,000 square feet of indoor/outdoor amenity space for residents. It was conceived as a series of six interactively-connected “garden-style” apartments relating to a central amenity area, says Jessica Photo credit: Daniel Gaines Photography. Musick, associate principal at KTGY. “The prominent three-story amenity building includes a spacious open-area community lounge, game room areas, fitness center, viewing deck, and a leasing and administrative office. The amenity spaces have a visual connection to the outdoor swimming pool and deck, and views to the community green,” she says.
s
Eviva Midtown Apartments in Sacramento
Eviva Midtown apartments is a six-story mixed-use building, featuring 118 modular apartment homes. All modular units were built off-site and trucked in to the site. It features a large resident outside courtyard which features BBQ, fire pit, cornhole and a beautiful large interior resident lounge. It includes street level and underground parking and more than 5,000 square feet of retail space. (Continued on page 23) Photo courtesy of CADA Housing.
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12 California Buildings News
Allura Expands Line of Plycem Fiber Cement Trim, Extends Warranty
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llura, the nation’s fastest-growing supplier of fiber cement home building products, has announced two significant enhancements to its popular line of Plycem fiber cement trim— the addition of an 8/4 product for deeper, more natural shadow lines and the extension of Plycem’s warranty to 50 years. The 8/4 trim joins Plycem’s 4/4 (3/4” thickness) and 5/4 (1” thickness) products available in 12-foot lengths. Plycem fiber cement trim is available in 22 colors and six stains, pre-primed and sealed for painting after installation. With a reversible, smooth or textured surface, Plycem’s machined square edges are ideal for exterior corners, windows, columns and doors while adding grace and elegance to any style architecture. With Allura products, sustainability is always built in for good measure. The company promises to remain flexible, efficient and dedicated to making the world more beautiful. z
Allura fiber cement products can be incorporated into commercial, residential, mixed-use and multifamily designs. Allura also boasts a “one formulation” siding that is warranted from Alaska to Florida. It is impact-, fire- and rot-resistant and includes a 50-year warranty.
To learn more about Plycem fiber cement trim: Visit: www.AlluraUSA.com Follow Allura: www.facebook.com/allurausa and Twitter @AlluraUSA
13 California Buildings News • Q3 2017
Great Maintenance: Key to Multifamily Success NAA Survey Shows Maintenance Is a Major Reason for Lease Renewal
Tenants list their major reasons for renewing a lease as getting “value received” for their money, feeling safe in their community and the quality of maintenance, according to a presentation made at the annual conference of the National Apartment Association in June. And yet, many properties don’t value their maintenance staff highly enough, a fault that could reduce a landlord’s bottom line. Mary Gwyn of Apartment Dynamics and Paul Rhodes, a national maintenance
instructor with NAAEI, gave their standing room-only attendees a blueprint for how to better energize an apartment maintenance team. Overall, they recommended better involving maintenance workers in planning for success. (See list to the right for a few of their suggestions.) NAA members work to stimulate esprit de corps in maintenance quality by sponsoring more than 60 local competitions involving more than 4,500 maintenance engineers— all culminating in a fun and spirited best-of-the-best competition at the annual show called Maintenance Mania.
w w w w w w w w w
Get more feedback from tenants on maintenance issues Ask maintenance workers what service incentives they like best (79% preferred bonus cash but almost 22% want recognition) 49% of maintenance workers say they get no recognition Cash bonuses are quickly spent and forgotten, but job recognition endures Performance reviews more often than annually produce better results Some surveys show that maintenance quality is #2 reason for lease renewal Set goals, measure achievements, make course corrections and reward success Use technology to achieve better results: texting and emailing, calling cells, etc. Give maintenance teams access to computers and tablets
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California Buildings News
San Francisco, Los Angeles and other California cities have Zero Waste Initiatives. While some view the methods of getting to Zero Waste a nuisance with added regulations and additional hauling fees, the goal of creating a circular economy is admirable. Imagine a consuming economy where efficiency drives products to have multiple life-cycles and nothing is wasted. For example: a product’s packaging is reused, components of electronic devices can be recycled or have a modular design where you can remove/add hardware, and a minimal amount is discarded as a single-use byproduct. Zero Waste is a step towards a circular economy. Commercial real estate contributes a large amount to a city’s waste stream. As sustainability has evolved, so have Able’s sustainability offerings. Initially we helped clients reduce their energy consumption through improving the operations of their properties with smart technology, benchmarking, retrofits and day cleaning. Now Able offers another piece of the sustainability puzzle with our Zero Waste Program. Working together, we help our clients achieve Zero Waste Certifications for their facilities and save money in the process. Right-sizing, waste audits, and sorting are all important components of any Zero Waste program. Whether you manage a commercial high-rise, corporate campus, or stadium, pursuing Zero Waste can save operating costs and escalate your reputation for sustainability! Today’s definition of Zero Waste is 90% diversion from the landfill. That means 90% of a facility’s waste is sent to compost or to recycling, and only 10% is actually thrown out because nothing of value can be captured or reused. If you have participated in a facility waste audit, then you’ve seen the small percentage of actual trash that needs to go to the landfill. A majority of waste that makes its way through a commercial building in a city like San Francisco is mostly compostable and recyclable. A big challenge is getting building inhabitants to correctly discard their trash. Items that regularly go in the landfill bin are chip bags, Keurig cups, broken dishware, and other discards comprised of mixed use-materials. Paper towels should be composted, and with some haulers they can even be recycled if they are wet but not too soiled. Every municipality is slightly different, and it is imperative to understand the waste program criteria in your city. Did you know that you are not supposed to put plastic bags in the recycling bins in San Francisco? Plastic bags should be discarded into the landfill bin at commercial offices (or they may be taken to select retailers who accept plastic bags for recycling).
Navigating Zero Waste in California Buildings
Above: Commercial buildings on a palm-tree lined street in West LA. Lower photo: a building waste audit shows if tenants are recycling properly.
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16 California Buildings News • Q3 2017
Multifamily News
Possible Government Solutions to Housing Crisis California Apartment Association Identifies Possible Legal Remedies
The entire state’s economy depends on providing adequate housing, an issue that is imperiling economic development, as employers are hearing from prospects and current workers that California is becoming too expensive to find proper shelter for them and their families. More than 130 pieces of legislation have been introduced in 2017 in the California Legislature to alleviate the state’s serious housing shortage, according to the California Apartment Association. The California Apartment Association’s Legislative Steering Committee examined each of these proposals…and CAA’s public affairs staff helped advance the best of them. They are: Making Sure Communities Build Their Fair Share of Housing AB 678 by Assemblyman Raul Bocanegra, D-San Fernando, would financially penalize local governments that deny housing permits in violation of state law. Position: Support—Sponsored by CAA Status: Senate floor awaiting vote
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Note: CAA also supports an identical bill in the Senate, SB 167 by Sen. Nancy Skinner, D-Berkeley. Status: Assembly Rules Committee Curb Ballot Box No-Growth Measures AB 943 by Assemblyman Miguel Santiago, D-Los Angeles, would require a ballot measure that is proposed by the voters to curb, delay, or deter growth or development to be approved by 55 percent of the voters instead of a simple majority. Position: Support — Sponsored by CAA Status: Senate Appropriations Committee Fast-Tracking Housing Construction SB 35 by Sen. Scott Wiener, D-San Francisco, would move housing quicker through the permit process when developers meet certain standards. Position: Support Status: Assembly Rules Committee SB 540 by Richard Roth, D-Riverside, would streamline the approval process to spur housing construction by having cities identify where housing needs to be built and adopting specific, up-front plans and conducting all necessary environmental reviews and public engagement. Position: Support Status: Assembly Rules Committee Boosting Housing Near Public Transit AB 73 by Assemblyman David Chiu, D-San Francisco, would incentivize local governments to complete upfront zoning and environmental reviews and rewards them when they permit housing on infill sites around public transportation. Position: Support Status: Senate Committee on Governance and Finance SB 680 by Sen. Bob Wieckowski, D-Fremont, would expand the maximum distance BART is allowed to pursue a transit-oriented development project from one-quarter mile to one-half mile. Position: Support Status: Signed by governor Encouraging Micro Apartments AB 352 by Assemblyman Miguel Santiago, D-Los Angeles, would increase affordable housing by supporting the development of “efficiency units”— often referred to as micro apartment units near universities and public transportation corridors. Position: Support — Sponsored by CAA Status: Senate floor (Continued on page 23)
17 California Buildings News • Q3 2017
Measures Needed to Build Millions of Apartments NPA and NMHC Proposals Could Help Solve California’s Severe Shortages If the public and private sector do not take “bold, innovative action,” the affordable housing crisis in California and the rest of the nation will become “even more severe,” says the National Apartment Association and the National Multifamily Housing Council in a report called “Vision 2030.” An estimated 4.6 million units will be needed by 2030 nationwide, and as many as 11.7 million older existing units will need renovations. Vision 2030 recommendations: 1. Adopt local public policies and programs that harness the power of the private sector to make housing affordability more feasible. The most common barriers to apartment construction are enacted at the local level, which means local governments have a lot of levers they can pull to create healthy housing markets. 2. Increase public-private partnerships. Policymakers at all government levels can provide incentives and share risk with the private sector to produce the necessary units at price points households can afford. 3. Leverage state-level authority to overcome obstacles to apartment construction. There is a need to override local zoning restrictions that inhibit apartment construction. 4. Collaborate with business and community leaders to champion apartments. Without diversity of housing options to meet a variety of lifestyle needs and price points, local economies are held back. Federal reforms are needed, too: 1. Pro-development tax policies that incentivize investments in rental housing. 2. Preserve multifamily mortgage liquidity. 3. Support funding of FHA multifamily programs. 4. Expand low-income housing tax credits. 5. Create a middle-income housing tax credit. 6. Reforms overly burdensome regulations. 7. Boost funding for Section 8 and other rental assistance programs. Photos: Adobe Stock.
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18 California Buildings News
Lengthening the Lifecycle of Façades the Sustainable and Green–Conscious Way How Solano Community College is Making Smarter Decisions When Re-Painting Its Buildings Tall or oddly-shaped buildings can be very costly to coat, especially when it comes to labor costs. Coupled with the intense exposure to UV rays in the Californian climate, buildings need to be recoated often to maintain their color and optimum condition. Faced with the prospect of having to recoat a relatively new, but severely faded building three times over a 15-year period, the board of trustees at Solano Community College decided to try a different approach: take advantage of a 15-year product-and-labor warranty on NeverFade® with Kynar Aquatec® Exterior Coating from APV Engineered Coatings. The result was a long-term, environmentally-friendly solution with a savings of more than $48,000. Solano Community College’s Vallejo Center campus was built in 2007. It is located on the San Pablo Bay, an area known for ocean-driven fog, wind and moisture, as well as sunny and hot afternoons. The weather conditions caused the building’s exterior — originally painted with a premium latex paint— to fade from a bright and vibrant blue to a tired, chalky battleship grey in just five years.
To learn more about APV Engineered Coatings: Visit: www.apvcoatings.com or www.neverfadecoatings.com Email: sales@apvcoatings.com
The building’s curb appeal was lackluster and facility managers started to get complaints. When the original paint supplier wouldn’t guarantee longer term performance against fading, the facility managers turned to APV Engineered Coatings and NeverFade®. NeverFade® contains Kynar Aquatec®, a tough, engineering thermoplastic resin, manufactured by the leading global chemical manufacturer, Arkema, Inc. The resin and coating chemistry maintains high stability when exposed to harsh thermal, chemical and ultraviolet environments. It resists fading, dirt, staining, algae, mold, fungal growth, and chemical pollutants for an extensive period of time. Facility owners can essentially lengthen the life of the façade without tremendous maintenance costs. One of the best features, it is water-based with less than 100 grams per liter of VOCs.
According to the facility manager at Solano, “The longevity of NeverFade® saves us a tremendous amount in terms of maintenance costs and labor.” NeverFade® with Kynar Aquatec® Exterior Coating continues to be specified in the bold Solano Blue and Sienna Brown colors on more campus buildings. The college’s board and facility management team look forward to realizing the cost savings and long-term protection for years to come.
Multifamily News
19 California Buildings News • Q3 2017
Standout Products at National Apartment Association Annual Conference
Multifamily Products Showcase
ForRent.com’s Community Messenger enables apartment communities to connect with residents and prospects via text message, saving time while also supporting resident retention and leasing efforts. Properties can use the service to notify residents of package delivery/pickup, scheduled maintenance, social activities and more; as well as to immediately receive and respond to new lead alerts from ForRent.com and ForRentUniversity.com. Mohawk’s SmartStrand Nanoloc carpets feature permanent, built-in stain and soil protection that won’t wear or wash off, perfect for active families. Plus, it has a Nanoloc spill and soil shield for quick and easy cleanup. And it’s still luxuriously soft—just like residents want. Valet Living is the property management solution that provides doorstep and recycling collection, turn service, maintenance support and pet solutions. Valet Living Doorstep eliminates the need for residents to transport their waste to the community’s dumpster or compactor. Residents simply place their waste container outside their door nightly, and highly-trained service valets transport it for them. Mohawk’s SmartStrand Nanoloc carpets. Photo courtesy of Mohawk.
Tile & Stone Council of Northern California 415.989.1175 z www.tscnc.org
(Continued on page 39)
Dedicated to quality craftsmanship, the Tile & Stone Council of Northern California is a resource for building professionals who wish to feature distinctive and lasting tile and stone installations in their projects.
20 California Buildings News • Q3 2017
Commercial Properties Boost Value with Better Landscaping
I
nvesting in great landscape design and maintenance is one of the surest ways to increase significantly the value of all types of commercial, hotel and multifamily properties. The artful blending of trees and plants with stone and water features along with lighting and sculpture has many functional benefits for tenant, occupants and residents. Creating desirable outdoor spaces creates new venues for casual meetings and events. It expands the square footage of commercial space. It also has a major wellness benefit, as science has demonstrated that being closer to nature—even viewing it from a window—improves health and even productivity. California is rich in fine commercial landscapes, though many properties have yet to realize their value. We are featuring some who contractors have been awarded honors by the California Landscape Contractors Association.
Feature: Cadre Landscape’s 800 N. Brand Blvd. Glendale Project
Photo credit: Lynell VanVleet
“This property had lots of grass, hedges that required lots of trimming and on-going maintenance. It had high-maintenance fountains. We converted the entire area to a drought-tolerant landscape, removed all the grass, hedges and fountains to install trees, making the fountains a planter with seating areas, installed synthetic grass and different color DG (Decomposed Granite). And yet we maintained the original design-intent with the formality and intricacy of detail, converted the irrigation to low-volume drip-irrigation, saving millions of water per year, the buildings is LEED Gold and as such it needed to reflect the sustainability in the landscape setting.” —Julio Lopez, CEO Cadre Landscape, Los Angeles
(Continued on page 32)
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22 California Buildings News • Q3 2017
Multifamily News
There Are Tougher Places to Build Apartments Than California Honolulu, Boston, Baltimore, Miami & Memphis Are Worse NMHC and NAA also released Vision 2030, a set of For all the teeth-gnashing in California over the recommendations for all levels of government on how to numerous barriers to gaining construction approvals lower barriers to development and better address the for new multifamily complexes, the problem is worse in current and future housing shortage of all types of apartother areas of the country. San Francisco may be the ments and at all price hardest place in California to points. To add to the meet new apartment housing challenge of accommodatneeds, but it ranks only eighth ing 4.6 million apartment in the nation among other methouseholds, as many ropolitan areas. as 11.7 million existing The findings come from apartments could need Hoyt Advisory Services (HAS), to be renovated, or risk commissioned by the National being lost from the stock. Apartment Association (NAA) Barriers to Apartment Construction The number of apartand National Multifamily (Higher ratios equal greater difficulty) ment renters is at an Housing Council (NMHC). The all-time high, and the research examines and ranks 50 California Metros Non-CA Metros growing demand for metro areas based on specific San Francisco 7.6 Boston 13.1 apartments is making it factors, including local regulaSan Diego 5.9 New York 6.0 challenging for millions tions and the amount of availLos Angeles 5.3 Chicago 1.6 of families nationwide to able land to develop. Riverside 5.1 Atlanta 0.4 find quality rental housUniversity of San Diego Sacrament 4.1 Dallas/FW -1.3 ing that is affordable at Real Estate Professor Norm San Jose 3.8 their income levels. Miller of HAS says, “For many According to the new families, the shortage of affordstudy, meeting the demand for apartments means building able rental housing creates significant hurdles that can hammore than 325,000 new apartment homes each year on per their future financial success. This is not just a problem average; however, from 2012 through 2016, the apartment for today. By 2030, the affordable housing crisis will become industry averaged only 244,000 new apartment homes (in even more severe unless public and private sector leaders buildings with 5 units or more) per year. The last time the take bold, innovative action.” industry built more than 325,000 in a single year was 1989. The research, entitled the Barriers to Apartment This new apartment construction would boost the economy Construction Index, scores 50 metro areas along an index in the coming years, both nationally and in local metro areas. that goes up to 19.5 in the most difficult market to add apartments (Honolulu) all the way down to -5.9 in the High Rents Compound the Problem easiest (New Orleans). While real estate is very project“While the number of new apartments built each year has specific, any score above the median of 1.8 means that it is been rising, it hasn’t been enough to meet current demand harder to add new apartments in a specific metro compared and make up for any possible shortfall at certain price points to other metros. in the years following the recession. This imbalance between Major National Effort to Alleviate high demand and limited supply options has driven down affordability and reduced housing options for renters. Rents Apartment Shortages tend to be particularly high in areas with the greatest barriRegardless of where each metro area ranks, the U.S. ers to new development, such as California, where there’s a needs to build at least 4.6 million new apartments by 2030 significant shortage in available land for building new apartto meet the expected increase in demand; otherwise the ment homes. This makes it more expensive to build,” said affordability problems that exist today will only get worse. NAA Chair Cindy Clare, CPM. “For many reasons, building (Continued next page)
23 California Buildings News • Q3 2017
Outstanding Multifamily Style (Continued from page 11)
s
Atmosphere in San Diego
Atmosphere is a project of Wakeland Housing & Development Corporation, designed by JWDA of San Diego. It is 205 units, including 51 units set aside as permanent supportive housing for residents who have recently experienced homelessness. Designed for individuals and families earning 60% or less of the area median income (AMI), with some units restricted to 30% AMI and below. This new construction/urban infill development helped revitalize a site that had been vacant since 2004 with a vibrant and attractive new housing community to meet the strong need for affordable housing in the area. These safe, secure and welcoming homes are combined with wrap-around services that promote selfsufficiency and stability, allowing residents to thrive. Photo credit: Bill Robinson Photography.
(Continued from previous page)
apartments has become costlier and more timeconsuming than it needs to be. Over the past three decades, not only have hard costs like land and materials risen sharply, regulatory barriers to apartment construction have also increased significantly, most notably at the local level,” explained NMHC Chair Bob DeWitt. “These obstacles to development, such as outdated zoning laws, unnecessary land use restrictions, arbitrary permitting requirements, inflated parking requirements, environmental site assessments and more, discourage housing construction and raise the cost of those apartment communities that do get built.” According to the research, the easiest cities to build new apartments included New Orleans, Little Rock, Kansas City, Indianapolis and St. Louis. To reach the goal of building 4.6 million apartments by 2030, government officials and private developers must come together to take action. NAA and NMHC are advocating for solutions at all levels of government that will help supply meet demand and reduce the cost of developing apartments. n
Government Solutions (Continued from page 16) Finding Money for Affordable Housing SB 2 by Sen. Toni Atkins, D-San Diego, would establish a permanent funding source for affordable housing through a $75 fee on recorded documents; it exempts owner-occupied residential real-estate sales. Position: Support Status: Assembly Rules Committee SB 3 by Sen. Jim Beall, D-San Jose, seeks to provide $3 billion through a statewide housing bond to fund affordable housing programs in California. Position: Support Status: Assembly Rules Committee Affordable Housing For Seniors SB 62 by Sen. Hanna-Beth Jackson, D-Santa Barbara, would create the Affordable Senior Housing Program under the Department of Housing and Community Development to guide the development of affordable senior housing dwelling units. Position: Support Status: Assembly Appropriations Committee n
Leveling the Electrical Contracting Services’ Playing Field NCECI Works to Ensure Bidding Processes, Workers’ Rights Are Fair
Q: What is NCECI? What is your relationship to the National Electrical Contractors Association (NECA) and the International Brotherhood of Electrical Workers (IBEW)? A: The Northern California Electrical Construction Industry (NCECI) is a non-profit labor management organization that has partnered with many Northern California IBEW unions and the Northern California NECA contractors. The NCECI works collaboratively with the State of California to ensure workers’ rights are not violated, and the bidding process on public works is done in a fair manner. Most importantly, NCECI helps protect state and local taxpayers funding the public projects.
Q&A With Andre Gardner Executive Director, Northern California Electrical Construction Industry
Top photo: Adobe Stock.
Q: What is the Underground Economy? A: In general, the underground economy consists of individuals and businesses who willfully violate labor laws, licensing, and tax laws by dealing in cash and/or other “off the books” schemes. Common practices by businesses in the underground economy are items such as misclassification of employees: treating workers who would otherwise be wage or salaried employees as independent contractors to conceal their illegal activities and true wage tax liability from licensing, regulatory, and tax agencies. Q: How has NCECI established itself as an innovative and progressive leader within the compliance enforcement industry? A: We have established several public-private partnerships to help in its education, compliance and enforcement efforts. These partnerships include the State Department of Industrial Relations – Division of Labor Standards Enforcement, Division of Apprenticeship Standards, State Labor Enforcement Task Force, Employment Development Department, Local District Attorney’s, State Attorney General, Contractors State License Board and the Federal Department of Labor. Partnering together with a common purpose ensures greater compliance with all the applicable agencies.
25 California Buildings News • Q3 2017
Concentrating our enforcement efforts on the underground economy, NCECI has made significant strides towards “leveling the construction playing field.” Protecting taxpayers that fund public projects ensures that projects are constructed with the most responsible law-abiding electrical contractors with workers who are skilled, certified, and have completed a state indentured apprenticeship program. One of our major goals is to ensure workers are paid the prevailing wage rates (for their craft or classification). Over the past 20 years, an economy has evolved in which unscrupulous electrical contractors pursue every opportunity to compete unfairly. By paying workers less than prevailing wage, paying them “off the books,” misclassifying workers to avoid paying for unemployment or workers’ compensation insurance, or misclassifying their classification to pay them a lesser wage rate than required by law, they illegally increase their market share and profit margin. By partnering with the State of California Underground Economy Enforcement Agencies and developing cases, exchanging information and tracking coordinated enforcement actions, we have uncovered a whole host of electrical contractors that undermine the legitimate efforts of conforming and responsible electrical contractors to compete fairly and competitively. We have assisted in the recovery of more than $40 million in electrical construction projects this past year. These projects were improperly awarded to non-conforming unscrupulous contractors. Many of these contractors had a serious history of labor law violations or failure to secure workers’ compensation insurance. By working with our state enforcement partners, we could assist workers that were misclassified by their employers, or were not paid the correct prevailing wages required by law, and consequently assisted in the recovery of more than $1.2 million. Q: Your organization provides essential services to many Northern California Electrical Contractors. What is the biggest call for help? A: Most often NCECI receives requests to help regulate the bidding process and protect complying contractors. Contractors often contact us saying the public bidding process is not always fair and transparent, which allows many non-compliant contractors to fly under the radar. When an awarding agency requests bids for a public project, our purpose is to help monitor the bidding process and protect law-abiding contractors, construction workers and taxpayers. This process rewards the integrity of the proposal and the most qualified contractors of that bid. This way, both the contractor awarded the work and the public win. It’s during this process non-complying contractors will try to
take advantage of the system, which prompts the necessity of organizations like NCECI to exist to assist in process regulation. Q: What are the foremost goals and objectives for NCECI? A: One of the most important purposes of an effective compliance enforcement program is to ultimately change the behavior of the contracting community. By educating awarding agencies on the vast amount of laws we can ensure a “level playing field.” Our enforcement actions seek to stop current violations of the law and prevent them from recurring. We seek to make certain others either voluntarily correct violations before they are discovered by NCECI or achieve a high level of compliance, i.e., do not violate the law. We have been successful in defining appropriate behavior in the electrical contracting community and the related consequences when that level is not met. NCECI’s recommendations to state agencies have produced written interpretations of law and regulations, such as in judicial decisions. Our team will continue to strive to provide top-quality education and enforcement for the entire electrical construction industry. n
NCECI_Rework_V2.qxp_Layout 1 8/17/17 3:41 PM Page 1
Make a mistake in
golf
…You take a mulligan.
But when an unqualified, unscrupulous contractor makes a mistake or has an accident on a Public Works Project in a community without a Responsible Bidder Ordinance, it’s the taxpayers who correct the mistake, and those costs add up over time. That’s why the NCECI is working to provide local communities with information on how a Responsible Bidder ordinance in your community can improve construction investments and get the most out of your tax dollars. We’re the Northern California Electrical Construction Industry – Established in 1998 to help support, promote and encourage fair contracting for all responsive and responsible contractors, workers and taxpayers. Click on our website to learn more.
We make things fair for everyone.
www.NCECI.info
26 California Buildings News • Q3 2017
Major Players Address State’s Severe Labor Shortage What a few years ago was considered a troublesome labor shortage in construction has now deteriorated into a severe economic crisis that is stalling California’s growth, robbing people of adequate housing, slowing commercial projects and imperiling needed infrastructure. And there’s no relief in sight. Most qualified electricians, plumbers, carpenters, painters, carpet layers and all others needed for construction are already on the job, and contractors and engineers are saying no to new business from Sacramento to San Diego. In spite of this, somehow, the industry is managing to add jobs and continue work, creating more than 46,000 new positions over the past year in California’s red-hot economy. But how long can corporate and union efficiencies and creative strategies to attract new workers continue…especially faced with the Trump Administration’s anti-immigrant worker policies? This summer California Buildings News asked several major players for answers.
Rising Labor Costs, Shortages Challenge Contractors
Photo courtesy of Kevin Shea.
By Jeff Hoopes, CEO of Swinerton
In California we’ve definitely seen challenges with getting enough people into the labor force, and also with getting the right kind of quality out of the labor force. There’s been so much building going on lately that it has really put stress on the labor unions to get enough people to fill jobs. They’re having to bring new people in and train them and, as a consequence, it affects the quality of work, which affects the time of construction, which affects the costs. It’s a big ripple effect all from those pressures in the labor market. The cost of materials has stayed largely consistent with inflation, but the cost of work is a big challenge right now. When we first were coming out of the recession, it was easier to get access to the best workers, but now
there’s just so much building happening, it’s hard to get that same consistency job to job. As a result of some of those challenges in the labor market, Swinerton is upping our own commitment to building craft leadership, and we’re hiring experienced teams of professionals to bring some of the best people we can into our fold. We’ve obviously seen a lot of changes as the markets have changed across all the different areas where we do work, so our goal is to be able to retain those people no matter what the market looks like. Not only do we want to help build the skills of craft workers, we then want to retain them for years to come and build our network, so we can hold on to that next generation of craft leaders. (Continued on next page)
27 California Buildings News • Q3 2017
Recruiting people from outside the Bay Area and throughout California is, and will remain, a Employee-Owned challenge, given the increased Contractor Gets cost of living. As a result, contractors are experiencing a high Creative, Uses Tech level of local competition in By Rich Henry, president of recruiting trained workers to complete projects in a booming the Northern Pacific division regional market. at McCarthy Building Cos. To create predictability in our constantly changing environment, McCarthy promotes “career” opportunities and heavily invests in advanced training and leadership programs to foster a healthy internal competitiveness, which provides more positive and collaborative results that are long-term focused. Additionally, we offer the unique chance to work at a 100% employee-owned company, which empowers us to think and work differently on every project. Investing time and effort towards something you own is always a more exciting experience with greater personal and professional rewards. We also find it important to be selective in the projects we pursue and focus on those that provide the best rate of return on investment on its resources and in building long-term relationships with clients. IPD, P3 and design-build delivery models are more appealing because they allow a unified “Team” to control design and budget. Forming JVs with other talented partners is another way to pool resources in a labor shortage. (Continued on page 30) Photo courtesy of McCarthy Building Companies, Inc.
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28 California Buildings News • Q3 2017
Intersolar and ees Highlight Policy, Technology Update San Francisco Conference a Sounding Board for Recent Industry Triumphs, Challenges
Intersolar and ees North America 2017, the solar and energy storage industries’ premier events dedicated to the North American market, held its 10th annual event in San Francisco last summer. More than 15,000 solar and energy storage professionals from 87 countries attended the events. A variety of exhibitors also used the exhibitions as a platform to launch new products — companies showcased new racking and mounting products, inverters, solar panels, storage systems and other products. During the Intersolar/ees North America exhibitions, companies ranging from established industry leaders to promising startups have displayed the technologies that promise to continue to reduce the cost of solar and storage solutions. Once again, the Powerhouse Pavilion, hosted by Powerhouse, the world’s only incubator and accelerator dedicated to solar that collects the most ingenious intelligent energy startups and entrepreneurial ventures, was in the spotlight. Photo: Adobe Stock.
Among the standout technologies shown at the conference were solutions by Sunworks and Maxim Integrated. They have worked closely to develop and test a groundbreaking, high intelligence solar cell technology that drastically diminishes electricity production loss caused by shading for an impressive return on investment. Traditional solar panels are prone to cease power production in their entirety. The new technology manages the panel’s cells independently, allowing unshaded cells to continue operating at optimal levels while maximizing electricity production for all building and ground-mount solar applications. This year, 12 companies participated in the Pavilion, including UtilityAPI. Elena Lucas, co-founder and board director at UtilityAPI, also spoke alongside leading renewable energy leaders and policymakers during the opening ceremony’s keynote session, where she provided an entrepreneur’s perspective on the industry. During her remarks, she stressed the importance of networking events and seizing opportunities only Intersolar/ees North America can present. “Intersolar is the place to be,” Lucas said during her keynote session. “This is where you can network and meet the people who are ready to take action to reduce the soft costs of solar.”
29 California Buildings News • Q3 2017
Intersolar and ees North America organizers are dedicated to offering innovative events and networking opportunities year after year. The 2017 events connected exhibitors and leading industry
Solar in California Solar Installed: 18,919.8 MW (5,211.7 MW in 2016) s
s National Ranking: 1st (1st in 2016) s Homes Powered by Solar: 4,885,000 s Percentage of State’s Electricity from
Solar: 13.39% s Solar Jobs and Ranking: 100,050
(1st in 2016) s Solar Companies in State: New technology from Sunworks and Maxim Integrated manages panel cells independently.
2,625: 455 Manufacturers, 1,261 Installer, Developers, 870 Others
sTotal Solar Investment in State: $44 billion
($8.4 billion in 2016)
s Price Declines: 64% over last 5 years
organizations in unique special events. In particular, the WRISE and Shine! networking breakfast, organized by the Women of Renewable Industries and Sustainable Energy (WRISE), was a well-received and bustling event advocating gender equality in the solar and energy storage industries. “We were thrilled to see so much support and interest,” said Kristen Graf, executive director of WRISE. “The informal networking breakfast at Intersolar offered a great opportunity to build on the enthusiasm around our broader scope and new brand. With such a great response we are already looking forward to growing relationships and having an even larger presence at Intersolar in coming years.”
s Growth Projections and Ranking: 13,670
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Section 201 Hot Policy Discussions Both Intersolar and ees North America are known for covering the latest technological and political developments affecting the solar and energy storage industries. Trade issues were leading topics among conversations and conference sessions, with a lively debate surrounding expected outcomes and impacts. More than 220 speakers participated in Intersolar/ees North America conference sessions, which covered a variety of topics ranging from energy storage technologies, applications and project case studies; PV plant design and monitoring; smart renewable energy; and financing solutions for solar and energy storage projects. The 2018 Intersolar and ees North America exhibitions and conferences will take place in San Francisco on July 9-12, 2018. n
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30 California Buildings News • Q3 2017
Labor Shortage (Continued from page 27)
Unions Train & Mobilize Year-In, Year-Out To Provide Workers
By Bob Alvarado, Executive Officer, Northern California Carpenters Regional Council Trade unions and the guilds that preceded them, serve as a conduit for people into various crafts, regardless of background or experience. And while the current concern in the industry has to do with worker shortages, worker shortages are as regular as the economic downturns which precede them. That being said, we address the issue of worker shortages even before it becomes an issue. The Northern California Carpenters Regional Council, along with our apprenticeship program, has worked in partnership with community based organizations, schools, and colleges. Our purpose is to expose people to our industry, recruit new apprentices, and attract the next generation of Carpenters. The Carpenters work diligently with these groups to promote the construction trades as a viable career and through these partnerships we have established pre-apprenticeship programs, designed to expose students to construction. Exposure through pre-apprenticeship ensures our employer receives an apprentice that is familiar with the trade and more likely to stay in the trade, and we work with our employers to ensure that new apprentices are given a chance to work and be trained. Ultimately, our success is based on our ability to train and mobilize the workforce. Living wages, benefits, and good working conditions, that the union provides, ensures retention and growth.
California led the nation in creation of construction jobs over the past year, adding 46,500 positions or a 6% gain, according to the Associated General Contractors. And yet the job surge was far from adequate to meet the pent-up demand for new and renovated housing and commercial structures. “Contractors in most of the country say they have plenty of projects booked and would like to hire more workers if they could find them, so it is likely that some states with monthly employment declines have a shortage of workers available to hire rather than a slowdown in work,” said Ken Simonson, chief economist for the association. “Given the low unemploy-ment rate in most states, other industries are competing hard for workers, making it difficult for contractors to find new construction workers, let alone experienced ones.” Association officials urged Washington officials to help address growing labor shortages in the construction industry by taking steps to expand training opportunities for students and young adults. Such steps include expanding investments in secondary career and technical education, making it easier to establish apprenticeship training programs in all market types and allowing for more charter schools and career academies that focus on construction skills.“The need for more craft workers in fields like construction is growing every month,” Stephen E. Sandherr, chief executive officer for the association, said. “There is a correspondingly urgent need to put in place measures that can expand training opportunities for people considering careers in construction.”
Photo courtesy of ACE
Contractors Ask Feds to Help Stimulate Training
Architectural Firm Supports Educational Programs
Owning a home has become nearly impossible for millennials in markets like San By Manny Gonzalez, Managing Francisco, San Jose Principal of KTGY Architecture + and Los Angeles. Although there Planning’s Los Angeles Office is a chronic shortage of labor to build homes, a National Association of Homebuilders’ (NAHB) survey found that 64% of those millennials wouldn’t even consider working in construction if you paid them $100,000 or more. Decades ago there were drafting classes and wood shops in high school where teenagers could begin to learn about design and construction but those programs disappeared along with other fine arts programs over the years. (Continued on next page)
31 California Buildings News • Q3 2017 (Continued from previous page)
Today however, there are volunteer organizations who are filling the gap left by school budget cuts. Through programs like the ACE (Architecture-ConstructionEngineering) Mentor Program Los Angeles, industry volunteers mentor high school students with bi-weekly hands-on-learning activities and classes. Anabel Martinez, project manager at KTGY Architecture + Planning and ACE “Architect Mentor of the Year” sees it working, “Introducing them to career possibilities in the construction and design industry sparks their excitement and it’s contagious.” The Southern California Chapter of the National Organization of Minority Architects (NOMA) this year is put on its 8th Annual Architecture & Engineering Summer Camp. During their weekly program, nearly 90 young campers took field trips to see landmark buildings and tackle a design project centered around the new LA Rams stadium as they learned about the industry. Forward-thinking high schools like El Camino Real in Woodland Hills invite architects, engineers and developers to share what they do with scores of curious students. If the school’s name sounds familiar, it is probably due to their national record of winning a total of seven Academic Decathlons over the last two decades. As Martinez points out, “Programs like these are a great example of how doors can open when you share your life with young people.” n
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32 California Buildings News • Q3 2017
Photo credit: Diana Manchester
Landscaping (Continued from page 20)
Feature: Mariposa Landscapes, Inc.’s The Chadwick Project “In 2015 we contracted with Kennedy-Wilson Company to do an extensive renovation of a large apartment complex called “THE CHADWICK.” These are luxury apartments conveniently located in Koreatown (in Los Angeles) near major shopping, dining and entertainment attractions. “We demolished the walkways throughout the complex and all the concrete decking around the pools in addition to some large trees. All this work had to be done in sections in order maintain pedestrian circulation and safe conditions for the tenants. Drainage, hardscape, irrigation, lighting and landscape followed. “Special fabricated signage, a full court basketball court, an undersized artificial turf soccer field, a children’s tot lot, a resurfaced tennis court and a dog run are some of the special features of the project.” —Terry Noriega, President Mariposa Landscapes Inc., Irwindale
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33 California Buildings News
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34 California Buildings News • Q3 2017
Y
Association News
ou’re seeing leadership (in California) every day. Through the Building Health Initiative, some of the world’s great companies are bringing together their market leverage, their design Excerpted from a speech expertise, and their commitment to made by Mahesh changing the landscape for healthy Ramanujam President and buildings. Already, their work is CEO, U.S. Green Building bearing fruit. And with these business Council at GreenerBuilder leaders working together, I expect Conference, July 13, 2017 we’ll see many more success stories in San Leandro, California. in the months and years to come. Meanwhile, SFO International Airport has set its sights on a zero-net-energy, carbon neutral, zero-waste-to-landfill future. Local policymakers are doing their part, too. Paula Kehoe is a true champion for sustainable water policy. San Francisco Public Utilities Commission is implementing an important vision for climate leadership. In fact, today, I’m happy to announce that we’re working to Photo courtesy of USGBC. acknowledge in LEED those incredible strides you’ve made with water regulations that can address your drought challenges and energy regulations that have consistently been more stringent than ASHRAE 90.1. We see you— and we’re working to reward your hard work. Meanwhile, when it comes to mobilizing for political WHY PROFESSIONALS JOIN SMPS action on climate change, the world’s eyes are turned to California. And our members and partners are answering NETWORKING MARKETING A COMMUNITY the call, advocating for bold leadership in Sacramento OPPORTUNITIES RESOURCE FOR EMERGING and offering their expertise to make sure that the job CENTER LEADERS gets done right. We’re even growing a new generation of climate leaders, thanks to a partnership with the Construction Industry Workforce Initiative that helps low-income students and students of color pursue careers in sustainable design and construction. A lot of this important work is happening behind the scenes. But there’s no denying the thrill that comes with seeing our vision take physical shape. Right now, Salesforce Tower— the tallest building west of the Mississippi— rises as a shining example of ACCESS TO LEADERSHIP what we can achieve together. This beautifully executed PUBLICATIONS OPPORTUNITIES LEED Platinum building is setting the tone for the entire region. n your marketing coordinator
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35 California Buildings News • Q3 2017
RiverRock’s Newport Beach Property Awarded TOBY By BOMA International Kudos to RiverRock Real Estate Group for winning a TOBY® (The Outstanding Building of the Year®) Award at the Building Owners and Managers Association (BOMA) International’s annual conference, the 2017 BOMA International Conference & Expo, in Nashville. 100 Bayview Circle won honors in the 250,000 to 249,000 square feet category. The property is owned by AEW Capital Management. For businesses seeking prestigious office space in Orange County, the property offers a refreshing alternative. Designed with hospitality in mind, the six-story property is distinguished by a rose-hued imported Balmoral granite-clad exterior with rose cinnabar vision glass and aquamarine accents. Landscaping features a marble and granite atrium court with two water elements, enclosed by a three-story glass canopy. Bayview was the first Class A multitenant office building in Newport Beach to achieve LEED EB O+M certification. The TOBY Awards are the commercial real estate industry’s highest recognition honoring excellence in commercial building management and operations in specific categories of building size or type.
100 Bayview Circle entrance and its management team. Photos courtesy of RiverRock Real Estate Group.
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36 California Buildings News • Q3 2017
IREM Reports Show How Properties Measure Up Against Others
Association News Total operating costs for downtown buildings in 2016 increased 6.3 percent, to $10.84 per square foot of rentable area, while those for suburban properties remained the same at $8.32 per square foot, according to the latest Annual Income/Expense Analysis Reports from the Institute of Real Estate Management (IREM). Other top trends and insights from the IREM Income/Expense Analysis reports include:
Office Buildings z Nationally, net operating costs for suburban buildings continued its three-year decline to $5.90 per square foot of rentable area, whereas those for downtown properties also decreased for the third straight year to $7.41 per square foot. z The national vacancy rate for suburban properties in operation for 12 months was 5 percent in 2016, up 1 point from the prior year. Downtown properties experienced an eight percent vacancy rate, no change from 2015.
Conventional Apartments z NOI for garden buildings rose 5.3 percent to $7.13 per square foot; NOI for elevator buildings rose a mere 0.2 percent to $12.24 per square foot; NOI for low-rise buildings with 25 or more units rose 2.5 percent to $6.66 per square foot; and NOI for low-rise buildings with 12-24 units increased 4.5 percent to $5.61 per square foot. z Looking at gross possible rents, elevator buildings reported the highest increase, 5.3 percent, raising the rent per square foot to $20.80. Garden buildings reported a 3.7 percent gain to $12.67 per square foot; low-rise buildings with 25-plus units reported a 1.6 percent rent increase to $12.93 per square foot; and low-rise buildings with 12 to 24 units reported a rent increase of 1.7 percent to $12.55 per square foot; z In terms of expenses, those for garden buildings rose 3.5 percent to $5.55 per square foot; and those for elevator buildings increased 1.3 percent to $8.34 per square foot; expenses for low-rise buildings with 25 or more units rose 3.2 percent to $5.76 per square foot; and those for low-rise buildings with 12-24 units dropped 4.7 percent to $5.33 per square foot.
Shopping Centers z Median income for open shopping centers across the country in 2016 based on average actual occupancy (AAO), increased to $17.26 per square foot from $16.58 the prior year. Open center operating costs decreased to $5.08 per square foot from $5.10 in 2015. z Broken out regionally, median income for open centers in 2016 ranged from $13.20 to $23.48 per square foot, versus a range of from $13.03 to $26.25 per square foot in 2015. The Northeast and Mid-Atlantic regions reported the highest income per square foot at $23.48. z In terms of expenses, insurance and taxes in 2016 accounted nationally for 44.7 percent of the typical open center’s total operating costs; contracted services—such as landscaping, security and trash removal—accounted for 14.2 percent; and maintenance/repair and utilities accounted for 7.7 percent and 8.3 percent, respectively.
Federally Assisted Apartments z Operating expenses in 2016, Section 221(d)3 garden buildings experienced the lowest expenses in 2016 at $5.21. Section 236 elevator buildings reported the highest total expenses, $9.93 in 2016. Total Expenses decreased for all high rise elevator subsidies except Section 8 Family over the last two years. Photo: Adobe Stock.
37 California Buildings News • Q3 2017
New BOMA Standards Better Clarify New Issues Building Owners and Managers Association Makes Adjustments By Peter L. Stevenson The expanded demands from occupants with lists of building amenities, along with the regulations required on building design and construction, have had a significant effect on the increase of leased area within the existing office real estate market. The recognition of these realities with current leasing practices has brought about the development of a new 2017 BOMA Office Standard that will be released this September. This will be the 20th BOMA Office Standard since its inception in 1915. With BOMA’s new office standard, leased space or rentable area can now include square footages of services areas and amenities areas (balconies, covered galleries and finished roof top terraces) that had not been recognized as part of prior BOMA Office Standards. Other changes clarify and improve best practices in the application of the new office standard. The need to create diverse and attractive work environments with “environmental responsible” buildings, and upgrades to life safety systems, has affected the way occupants use or access areas within buildings. These factors also played a part in the demand for a new office standard to stay relevant in today’s market. As the new
standard was developed, it was also influenced by the pressure of global occupiers to have a consistent, understandable and repeatable standard for office measurement. The new office standard as a whole is a reaction to a need to clarify and solve issues related to the basic square foot / meter unit of measured area as a determinant of the value, rates or expenses during any real estate transaction. As transformations are made in where we work and where we live, a greater requisite of building measurement standards will be demanded of the space that is bought, sold, leased or managed. To the real estate broker, banker, operator and occupant a reduced uncertainty and mitigation of risk will result from the new 2017 BOMA Office Standard. Through the inclusion of the newly formed International Property Measurement Standards (IPMS), the new 2017 Office Standard will also have a great appeal to global occupiers as greater transparency of measurements is now being required. Following the 2017 BOMA Office Standard will provide a greater degree of standardization and consistency for all parties involved in real estate transactions using measured area.
Stevenson is CEO of Stevenson Systems in Laguna Niguel, CA and can be reached at pstevenson@stevensonsystems.com
z In terms of net income by subsidy type, Section 202 building categories in 2016 ranged from $3.64 to $7.29 per square foot; Section 221(d)3 buildings ranged from $7.40 to $9.80 per square foot; Section 236 buildings ranged from $2.85 to $6.12 per square foot; Section 8 Elderly/Handicapped buildings ranged from $5.94 to $7.42 per square foot; and Section 8 Family buildings ranged from $4.34 to $7.38 per square foot.
Condominiums, Coopertives and Planned Unit Developments z Median total annual operating expenses for all condominium building types as a group increased 1.4 percent in 2016 to $2,992.40 per unit from $2,950.88 per unit in 2015. Similarly, condominium dwellers as a group paid 3.1 percent more in assessments last year, with the median monthly assessment amounting to $312.25 per unit, compared with $303.00 the prior year. z Breaking out per-unit operating expenses by condominium
type, those for combination properties increased the most, 10.1 percent, rising to $2,370.00. High-rise properties reported the highest expenses at $4,988.00 a 1.8% increase over 2015. Townhouse properties reported the lowest expenses but increased 9.0% to $2,281.76. The IREM reports cover five different property types, (Condominiums; Cooperatives & Planned Unit Developments; Conventional Apartments; Federally Assisted Apartments; Office Buildings; and Shopping Centers) and allow real estate management professionals to benchmark, evaluate, budget and plan their way to a competitive edge. The Income/Expense Analysis® data is as flexible as it is accurate. Customizable to suit the needs of property managers, asset managers, appraisers, assessors, developers, lenders, and anyone engaged in investment real estate, the reports are available in a variety of formats — including online labs and Interactive PDF/Excel files, so you can plug in your own data, sort, and manipulate. n
38 California Buildings News • Q3 2017
California Buildings Associations …Get Involved!
Join BOMA!
California Buildings News recommends the following associations to people who design or operate buildings or provide services and products to them. They all offer useful educational and networking programs and represent the industry in government forums. Check out their websites to find local chapters near you.
Your Opportunity to advance
Your Career
Association for Facilities Engineering: http://www.afe.org/ Associated General Contractors: https://www.agc.org/
and
American Institute of Architects: https://www.aia.org/
Your Industry
Building Owners and Managers Association: http://www.boma.org National Apartment Association: https://www.naahq.org/ CoreNet Global: http://www.corenetglobal.org/ International Facility Management Association: http://www.ifma.org/ Institute of Real Estate Management: http://www.irem.org/
The Building Owners and Managers Association Silicon Valley 63 Metrowww.boma-sv.org Drive ▪ San Jose, CA 95110 408.453.7222
Society for Marketing Professional Services: http://www.smps.org/
www.boma-sv.org
U.S. Green Building Council: http://www.usgbc.org
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39 California Buildings News • Q3 2017
Multifamily Products (Continued from page 19) NAC Products’ Super SAM® 125 sound membrane has achieved some of the highest IIC and STC ratings in the industry for sound reduction over concrete and wood substrates,” says Brian Petit, VP of Operations for NAC Products. Super SAM® creates a new surface to install a variety of hard surface flooring and shields that flooring by providing crack isolation protection for up to 3/8” of lateral substrate movement making it a perfect solution for apartments, condominiums, multi-level hotels, high-rise office buildings, media rooms and more. roOomy’s patented technology paves the way for property managers to increase interest by giving home buyers and renters the power to visualize themselves in their desired space through roOomy’s virtual staging services. roOomy’s mission is to provide the next best thing to real life paired with turn-key, scalable solutions, using an app. Extended Stay America® (ESA), the largest owner/operator of company-branded hotels in North America, is partnering with apartment communities in an unprecedented national Apartment Referral Program. When an apartment community must decline or delay a prospective renter, they simply provide the prospect’s email to ESA, and will receive Room virtually staged by roOomy. Photo courtesy of roOomy. unlimited commissions on the prospect’s stay at ESA. n
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Association News
There will be a shortage of approximately 400,000 welders by 2024, per estimates from the American Welding Society. The inability to erect skyscrapers, construct or fix boats and bridges, and numerous other facets of manufacturing and infrastructure is grim if the shortage isn’t met head on. While the shortage is concerning, it also presents a promising opportunity for those considering a career in welding—especially for California residents. In fact, California is home to more than 27,000 welders, with the second highest level of employment for welders in the U.S. and an annual median wage of $43,840. The water infrastructure California relies on is aging and in need of skilled repair work and other employment By Jack Dulls, Director of Training, Tulsa Welding School opportunities can be found in California’s manufacturing sector. San Francisco is of the top paying metropolitan areas for welding where the annual mean wage is $68,650. If you’re considering a career in welding, chances are you’re wondering where you’ll find work once you complete your training and where the best markets for the trade are. According to the U.S. Bureau of Labor Statistics, the top five states with the highest levels of employment for welding jobs are: Texas, California, Pennsylvania, Louisiana and Ohio. If you’re looking for a job in any industry, you will want to take the time and do some research. Consider questions like which industries are hiring? How much experience is needed? How much do the jobs pay? You may need to move for certain opportunities and in some locations, you may be more employable. For those interested in taking welding classes or learning more about this exciting career, visit Tulsa Welding School for more information.
Shortage of Welders to Hamper Construction
Photo: Adobe Stock.
Lighting, Electrical Groups to Partner with California Colleges
Lighting Controls and National Electrical Manufacturers Associations Offer Education The Lighting Controls Association (LCA), a council of the National Electrical Manufacturers Association (NEMA), has announced a new partnership with the California Community College System (CCCS) to educate tomorrow’s electrical workforce about energy-saving lighting controls throughout California. CCCS is the largest system of higher education in the nation, with 2.1 million students attending 113 colleges. This partnership aims to upskill an electrical workforce in support of California’s goal to dramatically reduce energy consumption and carbon emissions, notably in the area of lighting automation. The South Orange County Community College District’s Irvine Valley College established this partnership and led an initiative that provides access to industry-valued curriculum across all California community colleges. LCA is a lighting industry sponsored activity dedicated to promoting lighting controls through education. LCA’s distance-education system, Education Express, offers more than 50 hours of free online instruction in lighting control technology, design, application and commissioning. Education Express courses are registered with the American Institute of Architects (AIA) Continuing Education System, National Council on Quality in the Lighting Professions (NCQLP), and
the California Advanced Lighting Controls Training Program (CALCTP). Under the agreement, CCCS will facilitate educator and student access to the Education Express curriculum via participating colleges. Initially implementing a pilot program, CCCS estimates students from as many as 60 colleges will ultimately enroll in Education Express. Students who complete the Education Express program gain a broad and deep understanding of lighting controls and qualify for CALCTP and CALCTPAT training and certification. “We are excited about this strategic partnership which enhances our technical career education mission for both new students and the incumbent workforce,” said Corine Doughty, Dean, Irvine Valley College. “For nearly 20 years, the Lighting Controls Association has educated the public about controlled lighting,” said Gary Meshberg, LEED AP, LC, Chair of the LCA and Director of Sales for Encelium. “We’re very excited about this new partnership with CCCS to educate tomorrow’s electrical workforce in California.” For information about CCCS, visit www.CCCCO.edu. For more information about the LCA and Education Express, visit www.LightingControlsAssociation.org.
41 California Buildings News • Q3 2017
Big Firms Lowering Carbon Footprint, Says Energy Congress Long Beach Conference Describes Future Goals for Energy Sustainability Beach. The EMC has been presented by the Association of Energy Engineers (AEE) for the past 35 years—making it one of the world’s longest running events for business, industrial and institutional energy users. The conference opened with leaders of the private and public sectors discussing their Ron O. Nichols, President, Southern California Edison, addresses the conference. company’s strategic energy directions. Scott S. Wendling, Sustainable Resources Officer for Kaiser Permanente shared KP’s 2025 sustainability goals. For KP, on-site distributed energy generation technologies play a key role to reach sustainability goals. The systems combine fuel cells and energy storage to help reduce peak demand for a large facility. Seven existing KP locations in the southern California region make use of the technology, and KP is currently installing these technologies at an additional 30 to 40 locations across the US. KP may realize potential savings of more than $100 million over a 15-year term. Computer History Museum New technologies like these also allow consumers to Mountain View feed energy back into the grid. A trend that was also highlighted at the event by Daniel Tunnicliff, Principal Manager, Tickets Now Available at www.ifmasv.org Southern California Edison. He explained how the newly permanent Research and Development Tax Credit is used as a tool by engineering and design firms to allow for experimentation with new energy technologies and design methods. Equipment manufacturers are now developing technologies that use the tax credit to relay the risks associated with innovation. This then eases the initial cost of implementation of new energy improvement projects and has created a surge across SCE’s service territory. SCE is now responding to this shift, as prosumers like Kaiser are providing local energy generation. n
Large companies are finding it necessary to show publicly how they are approaching sustainability and lowering their carbon footprint. That was one of the central messages heard by the more than 2,000 energy management professionals who attended the recent Energy Management Congress (EMC) annual conference and trade show in Long
42 California Buildings News • Q3 2017
Fire Safety (Continued from page 5)
Despite Being Combustible, Wood Has Advantages According to the Softwood Lumber Board, wood products offer many advantages in addition to being economical and a good environmental choice. Wood can be locally sourced. It is fast and efficient to use, and construction can be undertaken year-round in almost any climate. It costs less to install than other mainstream structural materials. Experienced wood contractors are widely available, and workers of varying skill levels can quickly learn wood construction techniques. “Determining the true cost of a building material requires evaluating the product over its life cycle and taking into account its environmental as well as monetary costs. When considered over its lifetime— from the harvest of raw materials through manufacturing, transportation, installation, use, maintenance, and disposal or recycling—wood performs better than concrete and steel in terms of embodied energy, air and water pollution, and carbon footprint,” according to the board.
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43 California Buildings News • Q3 2017
Roofing Innovations (Continued from page 9) The 138T Shingle Recover System from McElroy Metal is changing the way roofers deal with recovering old roofs. The 138T Shingle Recover System offers an economical and energy-efficient method to recover existing asphalt shingles with a symmetrical standing seam metal roofing system. It’s economical because the cost of tear-off and dumping are eliminated and the new system can be installed without the cost of an underlayment. IKO Cambridge’s Cool Colors shingles are California Title 24 compliant, potentially reducing a single-family or multifamily home’s cooling load and energy costs associated with air-conditioning. Specially designed granules reflect more solar energy than conventional roofing granules so less heat enters through the attic. Available in five dramatic color choices, Cambridge Cool Colors shingles install fast and easy with IKO’s special “Advantage” size. Complementary IKO UltraHP® high-profile hip and ridge cap shingles are available to protect vulnerable roof areas.
Why Roof Restoration Often Makes Sense “A complete restoration can be expensive in labor and materials, particularly if the existing roof has to be removed first,” says Ed Leshansky, marketing director of Tropical Roofing Products, a national manufacturer of innovative solutions and system technologies that seal, waterproof and maintain roofs. Depending on the roofing system selected, costs range between $18 and $22 per square foot. Restoration, on the other hand, requires less labor and materials, and thus cost about $6 to $9 per square foot.”
Restoration can extend a roof’s life 10 to 15 years, says Leshansky, and he notes that restoration will significantly reduce the millions of tons of discarded roofing materials that go into landfills each year resulting from a complete replacement—making restoration a major environmental choice. And since restoration is classified as a maintenance
Tropical Roofing Products’ High Solids Eterna Sil Premium Restoration Systems was applied to a warehouse’s structural concrete roof. Photo courtesy of Tropical Roofing Products.
expenditure, while replacement is a capital cost, you can take the expense as a current deduction rather than recovering the cost over time through depreciation. Ignoring roof deterioration “doesn’t make the problem go away; it can only get worse,” says Leshansky. Delaying restoration can worsen the eventual repair or replacement problem. “Continued neglect can put your business, employees and tenants at risk,” Leshansky concludes. n
FM Talent (Continued from page 6) statements to focus on: Who are we and what do we stand for? What are our operating values and principals? How do we get on top and stay there? Clarity of purpose fosters collective worth, and teams are far more likely to stay together. They need at least a fair living wage for obvious reasons, but often they leave for reasons other than money— although that’s what they may say in the exit interview. How much are you engaged with each one as a person? It’s hard in big teams, but the greatest example of engagement I can give you in a very personal way is that when my son passed away in March of 2016 within a few days I got a call from the senior vice president of real estate and facilities, my bosses’ boss, and he said, “Whatever you need to process the loss, I am here for you.” Not a word about take all the time you need, sorry for your loss, etc. which made it personal and not something out of a Hallmark card. Followed up by phone calls not emails to check in over an extended period. This guy has an organization of over 200, and he takes the time to check
in, I have mad respect for him and that simple statement shows engagement. Great leaders keep great teams together because they are engaged and value us as humans, with all our faults, quirks, good days, bad days and everything in between. Life is a moving target, and they get it, period. In summary: In my humble opinion and based on years of team building and leadership there is no canned version on how to attract and keep great people. Sure, there are many frameworks, but those are just framework. Take the role of recruiting, hiring, training and retaining personally. Write the job description like you mean it, hire people who have critical thinking and problem solving skills, train to improve weaknesses, engage people personally with the depth and breadth. n Morgan is director of facilities management, SAP Global Real Estate and Facilities in the San Francisco Bay Area and a leader in the International Facilities Management Association.
44 California Buildings News • Q3 2017
Industry News
Oops…San Francisco No Longer LEEDS in Green Buildings Chicago is #1 With the Highest Percentage of Sustainable Structures
After placing second last year, the Chicago market claimed the top spot with 66 percent of its space qualified as green certified according to the fourth annual Green Building Adoption Index study by CBRE and Maastricht University. San Francisco slipped to second, while Atlanta, Houston and Minneapolis again claimed spots in the top five in the 2017 report. “Green” office buildings in the U.S. are defined as those that hold either an EPA ENERGY STAR label, USGBC LEED certification or both.
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“Even though the current federal legislative agenda has shifted the focus away from energy efficiency and sustainability, the momentum in the commercial real estate industry toward improving building operating performance and enhancing building quality is hard to derail,” according to the study. The study found that institutional owners of office buildings continued to pursue green building certifications in the 30 largest U.S. markets. 10.3 percent of all buildings surveyed are ENERGY STAR labeled, while 4.7 percent are LEED certified, both slightly ahead of last year’s totals, although the total percentage of certified space fell slightly due to the expiration of some certifications.
Just 10.3% of U.S. buildings have ENERGY STAR status. This year’s study also examined the potential impact of municipal energy disclosure regulations on green building adoption rates. Nine of the top 10 cities have implemented benchmarking ordinances, and several of those have experienced measurable increases in green certifications. Cities with benchmarking ordinances have 9 percent more Energy Star and LEED certified buildings, and 21 percent higher ENERGY STAR and LEED certified square footage. “While it is still too early to make a definitive correlation between benchmarking ordinances and the rate of growth in ‘green’ buildings, this year’s findings do begin to establish a link that will be studied closely in the future,” said David Pogue, CBRE’s Global Director of Corporate Responsibility. A feature again this year is a geographic mapping platform that highlights the name, location and details of the specific green certification for each building in all 30 markets. Again executed in close collaboration with the U.S. Green Building Council (USGBC) and CBRE Research, this year the report also included research and commentary from the Institute for Market Transformation. This is the fourth release of the annual Green Building Adoption Index. Based on a rigorous methodology, the Index shows the growth of ENERGY STAR- and LEED-certified space for the 30 largest U.S. office markets, both in aggregate and in individual markets, over the previous 10 years. (From a Business Wire report.)
Image: Getty Images, macrovector.
45 California Buildings News • Q3 2017
Hilton Los Angeles/Universal City Gets Green Kudos The Hilton Los Angeles/Universal City is gaining a lot of attention for its commitment to green initiatives, as the Los Angeles Green Lodging Program has awarded it GOLD in Green Seal’s stringent GS-33 certification standard for lodging properties. The program aims to help L.A. hotels save money and reduce their environmental footprint. The Los Angeles Green Lodging Program certifies hotels that implement policies for energy and water conservation, recycling, pollution prevention and environmentally preferable purchasing; and it actively markets these “green” hotels to meeting planners and tourists. In receiving the award, the Hilton Los Angeles/Universal City became only the second hotel in California to achieve Gold status and only the seventh nationwide. Green initiatives at the Hilton Los Angeles/Universal City include the use of the Xeros near-waterless laundry system, which replaces hot water with The Xeros near-waterless laundry system, which stain-absorbing polymer beads that reduce the amount of water used in each replaces hot water with stain-absorbing polymer load by 80%. The hotel has seen an 83% reduction in total water consumpbeads that reduce the amount of water used. tion and a 100% reduction in hot water consumption. Using the system also decreases the carbon footprint and chemicals associated with traditional washing systems, along with ensuring lower utility bills (Three Xeros machines result in savings of $6,600/month.) The hotel also has guest elevators that generate electricity, has almost entirely converted to LED lighting, offers green paper products for its restaurants’ take-out containers and has nearly 100% drip irrigation. Additionally, the hotel will soon offer 100% cage-free egg products in its restaurants.
Anti-Graffiti Solution Can Aid Vandalized Cityscapes Newport Beach’s Rainguard®, a global leader in environmentally-friendly surface protection solutions for home, architecture, commercial and building contractor challenges, has unveiled its newest Anti-Graffiti Coating System: the first-ever truly non-toxic, superior performing anti-graffiti coating technology that will allow cities and municipalities the ability to finally protect citywide structures, from cement overpasses to brick buildings. Vandlguard revolutionizes the graffiti abatement process. Most importantly, once applied, the city will no longer need to go through the laborious cleaning process that costs the city millions. Vandlguard can save every city around the country that is plagued by graffiti minions. Engineered specifically for the demands of harsh environments—from the home to industrial buildings to permanent structures—Rainguard’s solution stands out from the competition as the only viable solution and deterrent.
Toxic solvents in competitors’ solutions result in consumers dumping illegal substances in drains and put their health in jeopardy while using the materials. “At Rainguard, we believe in developing coatings that solve daily problems for the general consumer and for the government. Graffiti is a bad problem across our country, and costs the U.S. taxpayer approximately $18 billion a year. It’s an eyesore, illegal and something cities can easily attack if they use our Vandlguard product,” said Claude Florent, president of Rainguard Water Sealers. Photo: Adobe Stock.
46 California Buildings News • Q3 2017
Architects Endorse Energy-Efficiency Tax Incentive The American Institute of Architects (AIA) strongly voiced its support of bipartisan legislation that makes permanent a key energy efficiency tax incentive for owners and designers of energy-efficient buildings and that expands its benefits to designers of hospitals, schools, tribal community facilities and other non-profits. H.R. 3507 introduced by Rep. Dave Reichert (R-WA) and co-sponsored by Rep. Tom Reed (R-NY), and Rep. Earl Blumenauer (D-OR) also modifies Section 179D of the tax code—the Energy-Efficient Commercial Building Deduction—to make small to midsized architect firms organized as subchapter S corporations eligible for the deduction. The section 179D tax deduction was originally passed by Congress as part of the Energy Policy Act of 2005 and has been extended several times until it last expired at the end of 2016. A recent economic study found that nearly a million jobs over ten years and billions of dollars in annual GDP are created by this widely used deduction. This is the first time the provision has received bipartisan support for permanence.
“H.R. 3507 is a huge step in making permanent policies that allow America to move to a 21st century economy. Investing in smart, money-saving designs not only means a better bottom line for designers and building owners, but also means lower tax bills for Americans nationwide,” said AIA President Thomas Vonier, FAIA. “It also provides a big opportunity for community infrastructure projects like schools and hospitals to leverage commonsense incentives, like 179D, allowing designers to incorporate leading edge technologies that make buildings more energy-efficient.” According to data released by the U.S. Department of Energy, buildings are responsible for 75 percent of all electricity consumption in the U.S., with about half of that coming from commercial buildings. In an effort to curb this trend and encourage broader energy efficiency, section 179D allows qualifying building owners and businesses to receive an up to $1.80 per square foot tax deduction for their energy-efficient buildings placed into service during all open tax years.
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