Arizona Facilities March/April

IN THIS ISSUE: Explore Solutions for Efficient Lighting

Arizona

March/April 2012 TM

www.FacilitiesMagazine.com

Influence Arizona’s Commercial Real Estate Leaders

Time is Money

Reduce Water Costs

by Watching the Clock

20

Pavement

22

Parking Lot Maintainence 101

Retail

24

Fashion Square Mall Stands the Test of Time

Department - Author

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March/April 2012 | ARIZONA FACILITIES

Photo by Roger Ottaway

Contents Arizona

8

March/April 2012 TM

Influence Arizona’s Commercial Real Estate Leaders

20

Time is Money

24

Retail Facilities

Reduce Water Costs by Watching the Clock

Fashion Square Mall Stands the Test of Time

Departments Submetering 14 Automation Control

Lighting 16 Energy Legislation Targets Lighting in Existing Buildings

Disaster Restoration 18 What’s Your Disaster IQ?

Pavement 22 Ways to Maintain a Parking Lot

INSIDE Arizona Facilities is recognizing people in the commercial real estate industry who have significantly impacted the industry in various ways in recent years. Their influence reaches all corners of the industry, including property and facilities management, commercial development, entrepreneurship and leadership. Read about these 12 individuals on Page 8. Photos by Roger Ottaway.

Retail

27

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A short trip to Phoenix was just what I needed to warm up from the chilling Utah cold. I made camp at 3200 N. Central Avenue – the BOMA Phoenix office with Mark Covington, executive director, and Sarah Osteen, administrator – where I met our photographer Roger Ottaway and the other individuals who were named Arizona Facilities’ Influential People 2012. The weather was perfect, and the company couldn’t have been better as we interviewed and photographed each of these individuals.

Choosing several people who have been influential in the industry is a difficult proposition. Our goal wasn’t to identify those who have been most profitable, although in this economy, that is an important attribute. We wanted to highlight people within the industry who are moving it in a positive direction. The selected people influence a wide spectrum of issues in real estate, from facilities management to real estate development. In our opinion, the professionals we have profiled are real estate giants among a large number who are impacting the industry today.

To generate our list of Influential People, we looked for individuals who not only had a tangible track record of real estate success but also great local influence, the ability to promote change and a deep level of engagement in their company, industry and community. Their involvement in their local community is especially important from the viewpoint of Arizona Facilities Magazine. One of our main goals as a publication is to highlight activity in the commercial real estate industry that is important to our readers on a local level.

As I met and spoke with these individuals, all of whom call Arizona home, I realized they all had one significant thing in common – passion. Theirs is a passion for life and a passion for industry. Craig Henig, senior managing director of the Arizona Region for CB Richard Ellis, has a passion for people – a passion that resonates with his employees. Shelly Riley is passionate about business, and it is reflected in her rapidly growing company, Maintenance Mart. Dave Munn is passionate about the environment, spending most of his life helping building owners reduce their carbon footprint. Read about these and the other 8 passionate individuals who are Arizona Facilities’ Most Influential People on Page 8.

CONTACTS PUBLISHER Travis Barrington travis@jengomedia.com EXECUTIVE EDITOR Kelly Lux kelly@jengomedia.com ASSOCIATE EDITOR Kristen Hutchings kristen@jengomedia.com DESIGN DIRECTOR Brett Mickelson DESIGNER Doug Conboy PHOTOGRAPHERS Dana Sohm Roger Ottoway CONTRIBUTORS Rebecca Blackburn, Craig DiLouie, Kathleen Mascarenas, Marky Moore, Melissa Mullin, Rod Pappas, Travis Power, Tom Prugh, John Rehling, Kevin Schuck

JENGO MEDIA PRESIDENT Travis Barrington SALES DIRECTOR Brian Andersen brian@jengomedia.com

Arizona Facilities

A PUBLICATION OF JENGO MEDIA PO Box 970281 Orem, Utah 84097 Office: 801.796.5503 Fax: 801.407.1602 Web: ArizonaFacilities.com POSTMASTER: Send address changes to JENGO MEDIA, P.O. Box 970281, Orem, UT 84097-0281 The publisher is not responsible for the accuracy of the articles in Arizona Facilities. The information contained within has been obtained from sources believed to be reliable. Neither the publisher nor any other party assumes liability for loss or damage as a result of reliance on this material. Appropriate professional advice should be sought before making decisions. © C o p yr i g h t 2 0 1 1 A r i zo n a Fa cilities Magazine. Arizona Facilities is a Trademark owned by JENGO MEDIA. All rights reserved.

Executive Editor Arizona Facilities

JENGO MEDIA is a proud partner of Greater Tucson

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ARIZONA FACILITIES | March/April 2012 23 7

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EDITOR’S LETTER

Influence 2012

Arizona’s Commercial Real Estate Leaders

Photos by Roger Ottaway

T

he commercial real estate industry has been on shaky ground since the United States went into an economic recession. Despite the risks poised to investors, owners, developers and others in the industry, real estate professionals throughout Arizona are pushing forward, making strides to improve the industry and get it back on its proverbial feet. Their commitment – whether it be through sustaining an association, growing a business or cutting costs to meet needs – has been instrumental in Arizona’s ability to weather the storm. Those who are listed in this piece – Influence: Arizona Facilities’ Influential People – have significantly impacted the industry in various ways in recent years. Their influence reaches all corners of the industry, including property and facilities management, commercial development, entrepreneurship and leadership. Please join us in honoring their commitment to Arizona’s commercial real estate industry.

Broker

Craig Henig CBRE

8 March/April 2012 | ARIZONA FACILITIES

As senior managing director of the Arizona Region for CB Richard Ellis, Craig Henig oversees management of more than 25 million square feet and leasing of more than 33 million square feet of office, industrial and retail properties. Henig is also responsible for the management of more than 500 employees – his pride and joy.

“I love working with these people,” said Henig, who believes that working among his employees as a team has contributed largely to his success. In fact, Henig sits in a bull pen of sorts, encouraging free flow of dialog between him, the brokers, the property managers and the appraisers. “I enjoy the success that they bring – also some of the losses.

We are all in this together. I really enjoy the people in this company.”

Henig joined CBRE in November 2006 during the company’s corporate merger with Trammell Crow Company. He brought with him a commercial real estate career that began in 1987 as a leasing agent for Cushman & Wakefield – though his roots in the industry began when he was a child. Henig attended meetings with his father, who owned the largest industrial and office investment company in New Jersey at the time. The success in the family business fed Henig’s desire to build his own career in commercial real estate. “I chose this field because it was in my blood,” he said.

Henig’s commitment to the industry has fueled him through nearly 25 years in commercial real estate. His experience, his knowledge and his management style have been essential in carrying him through one of the worst economic recessions Phoenix has seen in recent years. Henig had to make “drastic decisions” at CBRE to weather the storm. Operating expenses were regulated. Business was adjusted. But relationships were maintained, even strengthened and CBRE is coming out of the recession ahead of the curve.

Tucson As the owner of Merideth Association Management, Jeanie Merideth happened into the commercial real estate industry quite by chance. In 2003, Merideth was commissioned by BOMA Greater Tucson to act as their executive director. Merideth accepted the invitation and was soon planning meetings, events, fundraisers and tournaments, managing the Jeanie Merideth organization’s website, finances, Merideth Association database and board of directors and Management marketing BOMA Greater Tucson as a whole. Most recently, Merideth joined the International BOMA Executive Advisory Council, furthering her involvement with BOMA. Not long after jumping on board with BOMA Greater Tucson, Merideth signed a part-time contract with IFMA Southern Arizona for administrative support. Besides attending board meetings, Merideth manages the organization’s website, the member database and general communications.

Merideth’s involvement in these organizations has allowed her a glimpse into the commercial real estate industry – especially in Tucson, where Merideth has lived her entire life. Her behind-thescenes role in BOMA and IFMA have contributed largely to the support and progression of real estate professionals in the Tucson market. Education courses, advocacy efforts and community fundraisers through BOMA and IFMA have all occurred under the direction of Merideth.

BOMA and IFMA are just two of five associations managed by Merideth, the others include American Culinary Federation Chefs’ Association of Southern Arizona, National Association of Insurance Financial Advisors Tucson and Society for Human Resource Management of Greater Tucson. Merideth stays busy managing each of these associations, but she still finds time to learn and become involved in the industry of each organization – including its members.

“The people are great,” Merideth said. “They are all very professional and very knowledgeable about their field and their industry. They are very passionate. I like working with people who are involved in their work and care about the future of what they are doing.”

General Contractors “We start out every project the same way, and that’s by listening,” said Tom Pritscher, owner of TEPCON – a recently established Phoenix company that is steadily gaining clients and respect. After 30 years of being heavily involved in construction, Pritscher has learned the importance Tom of listening.

A hard working, LEED Accredited Pritscher Professional through GBCI, TEPCON Pritscher grew up with commercial construction. At age 14, he began working for his father’s construction business, Pritscher & Erbach, Inc., where he stayed for 17 years. He worked with his father through high school and during college at Southern Illinois University, where he earned his construction management degree. He has been involved in the industry ever since, and his participation in organizations such as IFMA (serving as chapter leader in Chicago and Phoenix) and BOMA (serving on the TOBY committee) have contributed to his success. Pritscher learned the importance of understanding clients, most often facilities managers, and meeting their needs.

His company has become one that his clients trust and depend on, and they stick with him for future projects.

“A lot of our business is repeat business. We understand facility manager’s day-to-day needs, we know their aches and pains, so as a result, we provide services that address what they need.”

Pritscher understands there is more involved in construction than claiming the winning bid on a project. His secret to success is thorough communication. By discussing expectations with clients, it gives an end result that is pleasing to both client and manager.

Playing a key role in the growth of tenant improvement, renovation and new construction projects, Andrew Geier, executive vice president of Layton Construction’s Phoenix office, has been instrumental in carrying the Arizona Andrew Geier branch of the company through the Layton Construction economic recession. Most recently, Phoenix Geier was involved with the tenant improvement of the 310,000 square-foot Dunn Edwards Paint facility, which was completed in 2011, as well as the 110,000 square-foot Fender Guitars building completed in early 2012. These projects – and others – have contributed to the success and reputation of Layton Construction.

“We understand that what we do is provide a service and make the customers excited about their project so they enjoy the experience they have with us,” Geier said. “We provide our customers with a predictable outcome. In the end, we have happy customers.”

Geier believes that building good customer relationships is essential to the success of a company – possibly a concept he learned while studying at Kansas State University where he received his bachelor’s degree in social sciences. On the other hand, Geier learned the construction industry at a young age while working with his father who owned a residential construction company. Starting his career with a small construction company, Geier was soon hired on with Layton (nearly eight years ago), where he taught himself the ins and outs of the construction industry.

This drive and his natural ability to work hard helped Geier in securing his current position as executive vice president of Layton Phoenix.

“Two fortunate things for me: I am young, and I am surrounded by a bunch of great people,” Geier said. “Those two things makes this job easier. I’ve been put in a good spot with the opportunity to succeed. And I like when we are successful and when our teams are successful.”

ARIZONA FACILITIES | March/April 2012 23 9

Vendor

As the owner of one of the fastest growing and most reputable janitorial supply companies in the Southwest, Shelley Riley operates Maintenance Mart without regard to the fact that hers is a femaleand minority-owned business in a primarily male industry. From Shelley Riley 2002, when Riley purchased the Maintenance Mart company (known as Easy Janitor) to 2008, when the economy tanked, Maintenance Mart saw double digit growth – supplying janitorial supplies to most of the major commercial buildings, arenas and stadiums in Arizona. Even through the economic recession, the company continued to see growth. Riley contributes this success to her client relationships and her passion for business.

“I find myself in an industry that is very male dominated, but I don’t really think about that,” Riley said. “I feel like I am just as competitive and just as passionate as any business owner would be – male or female. It doesn’t matter if you are male or female in any industry – it is the passion that drives you.”

Riley is also passionate about green solutions and ecologically sound choices. Maintenance Mart offers a green cleaning product line, hands-on training and solutions that adhere to the Green Seal Environmental Standard of Cleaning. This commitment to green earned Maintenance Mart the 2010 Minority Enterprise Development Week Green Firm of the Year award.

“To me as a person, being environmentally friendly is important because I have children and grandchildren, and I want to make sure that we are being sustainable and that we are teaching future generations sustainability,” Riley said. “It is imperative to the survival of the human race, and basically, it is doing the right thing.”

Riley will continue to grow Maintenance Mart – including its green cleaning initiative. In 2010, Riley launched a marketing campaign for Maintenance Mart, the first of its kind for the company. Riley hopes that the marketing campaign as well as a continued emphasis on business-client relationships will perpetuate growth.

“Our secret is being a provider of great products and building great relationships,” Riley said. “Most of our growth is done organically as our clients, who we have worked with over the years, continue to grow. When they grow, we grow.”

10 March/April 2012 | ARIZONA FACILITIES

Association Representation As executive vice president of Commercial Service Solutions, Mary Thul splits her time between Arizona, California and Utah marketing and promoting the company. Thul has found that being involved in local commercial real estate organizations, like the Building Owners and Managers Association and the International Facility Management Association, is one of the best ways to get in front of potential clients.

Joining BOMA of Greater Phoenix in 1991, Thul discovered that “you only get out what you put in – for any organization.”

So Thul started volunteering for committees, realizing that when she was successful within BOMA, potential clients wanted her working for them. Thul was asked to be on the BOMA Board. She chaired several committees (eventually chairing each committee at one point or another), including advocacy, golf and TOBYs. She volunteered wherever she could, helping to plan fundraisers and promote advocacy.

Soon after joining BOMA Phoenix, Thul jumped on board with the Greater Phoenix Chapter of IFMA. Through this organization, Thul was able to reach a different type of clientele, mostly larger facilities and more retail facilities.

She has served as vice president of the local IFMA, and of course, chaired multiple committees. Most recently, Thul co-chaired the IFMA’s World Workplace 2011 in Phoenix – IFMA’s annual conference offering professional development, networking and educational opportunities.

“The organizations are very similar in the fact that you need to make sure whatever you volunteer for you follow through on,” Thul said. “Customers see what you do as a volunteer and see that as what you will do for them and their building.”

Thul will remain involved in both organizations, seeing it as her way of giving back to the people who bring business to Commercial Service Solutions. Plus the benefits to Thul are priceless.

“The networking is amazing. You learn a lot about the industry that you are providing services for,” Thul said. “The educational events help you to be a better vendor.

Plus, we get a huge benefit from getting our name in front of potential customers.”

Mary Thul

Commercial Service Solutions

Environmental Influence

Dave Munn’s environmental commitment started long before modern environmentalism. Since 1978, Munn has been working with owners of existing buildings to reduce their carbon footprint. Munn joined the Chelsea Group, Ltd., an engineering, architectural and industrial hygiene consulting firm, nearly 15 years ago after several years with a performance contracting company based in Boston.

Munn, with the Chelsea Group, reviews the sustainability of new and existing buildings, addressing indoor air quality issues and energy efficiency. Their expertise can be found in buildings across the country. Several (approximately 15) buildings administered to by Munn through the Chelsea Group have become LEED Certified.

“We focus on existing buildings, which out number new construction dramatically,” Munn said. “I feel like we are really attacking the huge opportunity that exists out there to reduce energy consumption for our clients. There is a lot of satisfaction in this work.”

Munn, who is a LEED Accredited Professional and a member of the Technical Committee of the Central Arizona Chapter of the U.S. Green Building Council, believes so strongly in his career that he has shared his expertise with BOMA of Greater Phoenix, creating the Green Buildings Committee four years ago. Acting as the chair of the Green Buildings Committee, Munn, with his associates, created the Kilowatt Krackdown Program in which BOMA members learn how to use the Energy Star Portfolio Manager and are awarded based on their buildings performance. With nearly 700 buildings now participating in the Kilowatt Krackdown, Munn and the Green Buildings Committee has been instrumental in dramatically increasing the number of Energy Star Labeled buildings in Phoenix – in turn reducing the city’s carbon footprint.

“We are doing this to encourage people to utilize the Energy Star Portfolio as a management tool to establish a baseline that can be tracked over time,” Munn said. “Building owners can see if their energy efficiency is improvement or going in the wrong direction. Then we can address that as we move forward.”

Educator Kenneth Sullivan was instrumental in developing the Facilities Management Program at Arizona State University, which was launched in 2006 under the Construction Management Graduate Program of the Del E. Webb School of Construction. The program had been Kenneth Sullivan dormant at ASU for Arizona State University more than 15 years. As an assistant professor in the Ira A. Fulton School of Engineering, Sullivan, who has a Ph.D. In civil and environmental engineering from the University of WisconsinMadison, worked with several local industry leaders and members of the Greater Phoenix Chapter of IFMA to create a program that would bring awareness to facilities management and promote education within the industry.

“We saw a great risk of departing experience, leaving a void in the industry. There was a need for facilities managers that wasn’t going to be filled with current educational opportunities,” Sullivan said. “There seemed to be a lack of awareness in the industry and the great career opportunities in the younger generations. We wanted to raise the bar of professionalism and meet those needs as a public institution by educating the rising generation and making everything better with their skills.”

Sullivan, who is director of the Facility Management Research Institute and deputy-director of the Performance Based Studies Research Group, teaches courses in cost estimating, bidding, research methods and facility management. His expertise is in best value processes, facility management and cost analysis. Sullivan has helped to create several courses, including operations and maintenance and energy management, that are now part of the Facilities Management Program.

Sullivan is now working with his associates to develop an undergraduate facilities management program. Sullivan hopes their efforts will be as successful as the graduate program has been.

“We are helping people learn and become better than they are while helping the environment around them,” Sullivan said. “It’s very rewarding to work with a lot of great people, to have a constant flow of new people and new friends who are learning and growing.”

Dave Munn Chelsea Group ARIZONA FACILITIES | March/April 2012 11 23

Facility Manager Paul Jones knows every nook and cranny of the 723,000 squarefoot Chase Tower. He has been involved with Chase Tower since 1988, where he worked as building engineer and then became chief engineer in 2000. In 2010, he became facility manager of the property.

“I’ve been here for over 20 years, and in that time, I’ve been on top of the elevators and the hoist ways, and I’ve been in the pits and shafts where the plumbing risers are,” said Jones. “I’ve ridden the side of the building on the swing-stage. I’ve been outside. I’ve been inside. I’ve been all over. It’s quite an experience to be involved with all aspects of the building.”

Prior to working at Chase Tower, Jones was heavily involved with plumbing and refrigeration, which enhanced his understanding of mechanical procedures. He understands how to fix facets of his building and also has the foresight to catch items that may hinder the building in the future.

Jones’ experience has aided him in overseeing the changes necessary to update the 40-year-old Chase Tower. In the past three years, the elevators have been modernized, and the plaza has been completely renovated with a new waterproofing membrane, new irrigation controls, new lighting, plantings and paving. The caulking on the windows began deteriorating from the harsh Arizona sun, so Jones and his team replaced the gasketing and re-caulked all the exterior windows and the precast concrete. The tightly sealed

Vendor

Bill Gill ServiceLink Commercial, LLC

With a bachelor’s and master’s degree in geology, Bill Gill has a lot to offer.

Gill launched his own company, Gill Environmental, Inc. in 2008 and was also asked by Steve Iverson to join ServiceLink Commercial, LLC that same year. As president of ServiceLink Commercial, Gill oversees property maintenance duties such as parking garage/ lot sweeping services, construction services, painting and coatings, pressure washing, emergency response services, fountain/water feature maintenance, staffing services and environmental services for commercial buildings. In January 2012, ServiceLink

12 March/April 2012 | A RIZONA FACILITIES

windows have saved them money in air conditioning, and the switch to T8 light fixtures and ballasts has greatly improved energy savings.

In the last 20 years, Jones has made friends with tenants and enjoys coming to work and seeing the fruits of his labor.

“I know a lot of the people in the building just from being here so long, so I think the best part of the job is coming to work and playing an important role in the facility itself and just trying to make it better. I am fortunate to have a great support team that is also dedicated to the facility,” Jones said.

“Everyone comes into our shop with this preconceived notion that it’s going to be a horrific experience, and it’s not. It’s nice when those Paul Jones customers do call us back and Chase Tower say the process went well, the inspection process went well, and we’re thankful for that. That’s the sort of feedback that gives me the most joy in my position.”

made internal changes and improvements and consolidated all of the exterior services that were formerly done by Professional Exterior Services (PES) under one platform.

Life can be quite hectic for Gill – a seven-day work week is not uncommon. But Gill is glad to be busy and enjoys being heavily involved with his businesses.

“This work is very hands on. I try to get involved with the guys out in the field and make sure I understand the full range of services we provide and what it takes to get them done and, hopefully, get them done profitably,” said Gill.

Gill is also deeply involved with IFMA and BOMA, allowing him to stay connected with clients. For instance, in preparation for The Outstanding Building of the Year Awards, many BOMA members call on ServiceLink to perform power washing, painting and other property improvement services.

Gill has been on the City of Scottsdale’s Environmental Quality Advisory Board (EQAB) since 2006 and was recently elected to be the chairman in 2011. With this passion for the environment, Gill is happy to be in his field of work and seeing the fruits of his labors.

“It’s not just a job. I’m not just sitting watching the clock tick until I can leave at five. It’s always a scramble to cover all the bases and perform good services and good customer service,” Gill said. “We constantly keep our eye on tomorrow and on how we can grow to be a better company.”

Property Manager

With 25 years of technical operations management experience guiding his decisions, Allan Raymond’s sole professional focus is helping major corporations build successful operations across Arizona. His diversified experience includes operations, quality and change management, commissioning, startups and transition, software implementations and project and program management. As the senior property manager of one of Jones Lang LaSalle’s largest account, he currently manages 4 million square feet of corporate facilities, including two corporate sites in Phoenix and a third in Albuquerque, New Mexico.

Raymond graduated in mechanical engineering from the Royal Military College of Canada, Kingston, Ontario, where he received a broad exposure to the governmental side of property management – this coupled with his various leadership roles in commercial real estate has given him ample experience in multiple facets of property management.

As a strong member of IFMA, Raymond chairs the Career Resources Committee, and under his leadership, the group helps unemployed members network, find new positions and provide direction. Since the program started two years ago, Raymond and his committee have assisted many FMs in finding Arizona jobs. His service gives confidence to those looking for employment opportunities.

Associations Julie Marchus, American Security LLC’s new regional business development manager, graduated from Colorado State University in business marketing. Marchus’ sales background is varied, from windows to janitorial and now security. With each opportunity one thing remains constant, she is always interacting with facilities and property managers. Marchus credits much of her success in the industry with her sales experience, her connection with BOMA of Greater Phoenix and her active involvement with the IFMA Phoenix Chapter, where she has received Julie Marchus the Associate Member of American Security, LLC the Year Award for two consecutive years.

“It all comes back to IFMA and giving back to your community, and I think that is the most wonderful part of a career,” Raymond said.

Raymond understands the end result of every project stems from the talents of each individual involved. His stress on teamwork and his genuine aspiration drive him to achieve the best result for everyone involved, especially clients.

“Find out what the customer wants and give it to them,” said Raymond. “That’s kind of my mantra, and I believe fully in really aligning closely with the customer’s needs Allan Raymond and being really Jones Lang LaSalle responsive to those needs.”

Marchus has served on multiple IFMA committees, often simultaneously. Among those committees are World Workplace, Community Resource, Golf, Social Events and Associate Member of the Year. Currently, she serves as vice president for the Greater Phoenix Chapter of IFMA. The position has shown her the opportunities available to IFMA members through the commercial real estate education programs and certification opportunities offered through the association. By being exposed to all facets of the industry, Marchus sees the big picture of facility management, helping her identify with her clients on a personal level.

“Our services cover a large portion of facilities managers’ budgets.

For this reason, we have to make sure our relationships are built on trust,” Marchus said. “Facilities managers want you to service their accounts thoroughly. They want to know you care. They want to know the company they hire is one that is going to be vigilant with their account, easy to contact and someone with whom they can maintain a long-term relationship.”

Involvement, diligence, consistency, follow up and professionalism are fundamental elements in effective business, Marchus said. But even more importantly, Marchus’s amiable nature and dedication in creating sincere relationships with clients are a vital asset to both her business and the IFMA Phoenix Chapter.

“I’m in sales, but I go out and build relationships,” said Marchus.

“I make friends.”

ARIZONA FACILITIES | March/April 2012 13 23

SUBMETERING Department - Author

Automation Control Systems Take Efficiency to the Next Level

By Marky Moore

M

any building owners and occupants who want to cut operating expenses and improve energy efficiency look to replacing or upgrading systems such as HVAC and lighting. If done with proper planning and the knowledge of how systems interact, this can be an effective step toward reducing expenses and energy usage. However, it is also important to plan for the management and actual usage of the systems once they are in place. This is where Building Automation Control Systems (BACS) or Energy Management Systems (EMS) can take efficiency to the next level.

Also known as Direct Digital Control (DDC) and Building Management System (BMS), control systems range from simple programmable thermostats to complex, sophisticated systems that control multiple facilities. Control systems typically contain three primary components: 1. The automated system that provides controls for HVAC, lighting and other systems within the facility 2. Energy information systems that work with the controls to provide energy data to operators and energy managers 3. The participants in the automated system that result in system efficiency These systems perform functions of programmed commands for HVAC, ventilation, temperature and lighting commands. They typically record data that includes utility demand and energy use, building conditions, climatic data and status of controlled equipment. The data furnished by the control system is vital to managing energy usage – only when it is measured can it be managed.

New or existing systems need adjustment based on conditions and use, which is difficult for staff to

manage. Sequencing multiple processes is best completed by automatic controls designed specifically for that purpose.

Leaving the control of energy systems to the occupants can have a major and historically negative impact on energy usage. Even if an old HVAC system is replaced with a new, energy efficient unit, the effect of individuals raising and lowering the temperature at will can be detrimental. Human interaction with manual controls often taxes the system and decreases efficiency and consistency in the equipment that is being controlled. The efficiency of facilities is improved radically when control routines are established and implemented within an automated control system.

Countless configurations and smart technologies can be put to work in building automation systems.

Occupancy modes such as unoccupied, warm up and night setback can be used to set schedules for lighting and temperature control. All equipment should be brought to set points before being occupied, through use of the proper automated sequence. The system should also take into consideration outside climate conditions, equipment capabilities and indoor temperatures to ensure the systems start at the

14 March/April 2012 | ARIZONA FACILITIES

appropriate times and are ready for occupancy.

Occupancy sensors, photo sensors and timers can be used to automatically turn off lights and control climate.

Building automation can also have sub-systems such as room automation, which is often seen in large rooms that might not be used consistently and have a number of devices that require controls. Presentation rooms, lecture halls or corporate boardrooms can be controlled based on use and occupancy, as well as streamlining controls of lighting, computers and video equipment under one control system.

After making the decision to implement an automated control system, it’s important not to assume the system is providing energy efficiencies. A thorough verification and measurement approach will provide evidence that systems are properly automated and resulting in savings and greater energy efficiency.

Marky Moore, founder of Capital Review Group in Phoenix, is a Certified Sustainable Building Advisor and an Accredited Professional for the U.S. Green Building Council’s Leadership in Energy and Environmental Design. Contact her at crginfo@capitalreviewgroup.com.

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SRP rebates help offset the initial cost of projects and are quickly paid upon project completion. Complete a simple application to get on your way to savings this summer.

To learn more about our rebates or find an SRP Alliance Contractor to get you started, visit savewithsrpbiz.com.

Learn more about the HVAC rebate and other offers

Lighting

Energy Legislation Targets Lighting in Existing Buildings

By Craig DiLouie

L

inear fluorescent lighting consisting of tubular fluorescent lamps operated by electrical devices called ballasts, which provide the proper starting voltage and then regulate current flowing through the lamps during operation, is common in commercial buildings. For decades, T12 lamps powered by magnetic ballasts served as the workhorse lighting system in commercial buildings until the Energy Crisis of the 1970’s spurred development of more efficient alternatives such as T8 lamps and electronic ballasts.

Upgrading to T8 lighting, for example, can reduce lighting energy costs by up to half in typical applications such as offices and classrooms. The T8 family now includes 23W, 25W, 28W, 32W (standard) and 32W (high output or Super T8) lamps and electronic ballasts. These are available with a range of efficiencies and ballast factors that enable tuning of light output for additional energy savings in existing spaces that may be overly lighted. The most efficient electronic fluorescent ballasts carry the NEMA Premium mark on the ballast label. Dimmable ballasts are becoming more efficient, versatile and affordable, making dimmable general lighting a reality.

Throughout the 1990’s and 2000’s, demand steadily shifted to T8 lighting as the new standard in new construction, as building owners acted to minimize their energy costs and to respond to more restrictive commercial building energy codes. At least 20 percent of floorspace in the existing commercial building stock built before 1980 was also upgraded.

Then, July 2010 marked the end of an era in the lighting industry.

The final phase of energy regulations

created by the Department of Energy and the Energy Policy Act of 2005 virtually eliminated the manufacturing and importing of fluorescent magnetic ballasts designed to operate fullwattage and energy-saving T12 lamps, including replacement ballasts, with few exceptions.

What’s more, starting July 2012, fluorescent lamp energy standards recently enacted by the Department of Energy are expected to eliminate most 4-foot linear and 2-foot U-shaped T12, many 8-foot T12 and T12HO and some low-color-rendering 4-foot T8 lamps.

Millions of linear T12 lamps and magnetic ballasts are still in operation and will require replacement, presenting a massive retrofit opportunity that is now being compelled by legislation.

Owners of T12 lighting systems should consider upgrading to more-efficient alternatives if they have not done so already. There are at least three major options.

Option One First, building owners could replace their ballasts with electronic T12 ballasts and replace their lamps with compliant T12 lamps (which may be offered with

16 March/April 2012 | ARIZONA FACILITIES

limited availability) as their existing inventory fails. While this would improve efficiency while avoiding a mass retrofit, it could be confusing from a maintenance standpoint because it leaves energy savings and does not avoid higher lighting costs due to a premium imposed by the compliant system.

Option Two A second option for owners would be to keep the existing light fixtures and upgrade to T8 lamps powered by electronic ballasts. In some cases, reflector kits can be installed to adapt the optical performance of the fixture to a new lamp type and fewer lamps.

Mixing T8 and T12 lamps and ballasts in the same lighting system can negatively affect lighting quality. Since mixing lamps can be confusing for maintenance, a systematic upgrade from T12 to T8 across the lighting system is recommended. This option imposes the cost of the upgrade and requires disposal of equipment that may still be operating. It does, however, maximize energy savings and enable other benefits, such as economies of volume purchasing and incentives such as the Commercial Buildings Deduction and utility rebates.

Option Three As a third option, owners can replace the light fixtures, potentially improving lighting quality and reducing the total number of light fixtures in the space.

This may involve a redesign of the system that addresses issues of quality such as visual comfort, uniformity, color rendering, spatial definition, shadows, flicker and glare. Source options include T8, T5 and LED general lighting; fixture options include direct/indirect and volumetric-distribution recessed fixtures. If the building’s primary spaces have been re-tasked to new purposes for which the existing lighting system is insufficient, uniformity is poor, light on walls and ceilings is inadequate or has

obvious unaddressed sources of glare and if occupants are unhappy about their lighting, then the space may benefit from a deeper redesign rather than simple lamp and ballast replacement.

Regardless of which option is chosen, lighting controls can be added to enhance energy savings and flexibility.

According to the New Buildings Institute based in Vancouver, Wash., automatic lighting controls can generate up to 50 percent energy savings in existing buildings. Effective strategies include automatic shutoff, light reduction control, daylight harvesting and demand response.

The biggest challenge to incorporating advanced control strategies into an existing building is adding low-voltage wiring, generally limiting opportunities for installation of sophisticated control systems that involve networking of components. As a result, the simplest upgrade options involve the least amount

energy-efďŹ cient lighting solutions

of rewiring or simply swapping out older ballasts and controls for new controls.

Options include wallbox occupancy sensors, intelligent low-voltage relay panels, line-voltage dimming ballasts and wireless RF controls (switches, occupancy sensors, photosensors).

Regardless of what the best path forward might be, the workhorse magnetic T12 lighting system is gracefully retiring. Owners of systems will have to upgrade now or later. The questions now are how does the owner wish to manage the process, and how much energy savings and flexibility does the owner want from the new lighting system.

Craig DiLouie is education director for the Lighting Controls Association (www.lightingcontrolsassociation.org), an organization dedicated to providing free public education about lighting control technology and application.

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Obviously, the biggest opportunities for upgrading are in older, over-lighted buildings where utility costs are high and lighting is uncontrolled and left on all night.

Disaster Restoration Department - Author

What is Your Disaster IQ? The Dos and Don’ts of Restoring a Building Following a Disaster

By Melissa Mullin

W

hen an accident strikes a building, the impact can last long past the event itself. Without the correct action, a business or property can lose customers, revenue, inventory and profits. The wrong response to an accident can jeopardize restoration and even cost double in time and money to restore things to normal.

Here are a few emergency do’s and don’ts that can help lessen loss of revenue, disruption time and property damage after a disaster.

Furnace or Soot Damage While soot may look a lot like smoke residue, the actual restoration of soot damage often requires very different

technique than that of fire. Restoring a building for the wrong disaster can be costly and delay full restoration.

Furnace or Soot Damage Dos • Change and save the old furnace filter.

• Use a vacuum to blow off or brush loose soot particles from upholstery, draperies and carpets.

• Cover upholstery with clean sheets before use.

Furnace or Soot Damage Don’ts • Attempt to wash walls, ceilings or contents without professional assistance.

Fire and Smoke Damage After a fire, it’s normal to want to jump right in and clean up, but that

18 March/April 2012 | ARIZONA FACILITIES

doesn’t mean you should. Once the fire department cuts power to the building (and they will), almost everyone forgets about the food in the office fridge or cabinets. Avoid some truly ugly cleanups with these handy tips.

Fire and Smoke Damage Dos • Open windows for ventilation, weather permitting.

• Empty refrigerator and freezers right away to avoid additional bio-hazard clean up.

• Call a plumber to drain all the lines.

Fire and Smoke Damage Don’ts • Do not wipe residue from walls, ceilings or other absorbent surfaces.

• Do not use food items or canned

Water Damage • In a flood, water damage often carries unseen contaminants that can be mistakenly spread by maintenance staff.

• When it comes to a wet property, many people believe heating a closed building is the fastest way to dry it.

• Surprisingly, that is one of the ways to hurt the building the most.

Vandalism Don’ts • Do not attempt to remove ink, paint or cosmetic stains. They tend to set permanently if not handled properly.

These tips derived by suggested guidelines of Restoration Industry Association (RIA) is composed of professional damage repair contractors and service firms specializing in the restoration of homes, schools and businesses damaged by fire, smoke, water, vandalism and other perils.

To sign up for a free education class on Emergency Response, please contact Melissa Mullin, director of business development and education at Abracadabra Restoration Inc. at 520.323.3261. More helpful tips available at www.restorationindustry.org.

Abracadabra Restoration of Tucson, Ariz., is a member of the RIA.

Water Damage Dos • Freeze valuable documents to prevent mold.

• Place aluminum foil squares or small blocks under furniture legs to avoid carpet staining.

• Unplug and remove lamps and telephones from all wet surfaces.

• Open drawers and cabinet doors for interior drying. Do not force swollen doors or cabinets.

Water Damage Don’ts • Do not operate TVs, vacuums or other electrical appliances when standing on wet floors, especially wet concrete floors.

• Do not use heat to dry closed building interiors; mildew and expanded moisture damage may result.

Vandalism Damage The most common vandalism includes graffiti, damage to furniture and spillage of unknown substances. Surprisingly, it is one of the most difficult forms of damage to restore. Responding quickly to vandalism decreases the overall cost and time necessary to return things to normal.

Vandalism Damage Dos • Hose down or wash egg damage from buildings as quickly as possible.

• Save discarded containers and spray cans to identify specific pigments and inks that were used in the vandalism.

ARIZONA FACILITIES | March/April 2012 19 23

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goods that could have been exposed to heat.

• Do not turn on electrical appliances until they have been cleaned and checked by a professional.

By Kathleen Mascareñas and Rebecca Blackburn

W

hether for a small business or a family of four, every dollar counts as the economic slump lingers. The Spectrum Water District has discovered a refreshing way to boost its bottom line.

“Sustainability is smart business,” says Kristine Nau, Spectrum Irrigation Water Delivery District (IWDD) No. 48 manager. Her customers agree. You see, the IWDD provides irrigation water to more than 30 southeast Gilbert clients, including the San Tan Motorplex, Catholic Healthcare West’s Mercy Gilbert Medical Center, Gilbert Growth Properties and several Gilbert schools.

Since its inception in 2004, the IWDD has participated in a cost- and energysavings program called Time-of-Use™ (TOU) offered by its utility company, Salt River Project (SRP).

“We use TOU for one simple reason:

to save our clients money without having to compromise quality. It’s the same reason CCMC was hired to manage the IWDD. Quite simply, it makes good business sense to align our organization with programs that promote similar results,” Nau explains.

On the Web For more information and tips about SRP’s TOU Price Plan, visit savewithsrpbiz.com/prices Nau recently learned that the IWDD did such a stellar job conserving energy that it became one of SRP’s top savers in its industry for 2011 by simply choosing to participate in the SRP TOU program.

The IWDD reduced energy costs by more than 15 percent. That’s nearly $5,900 in savings — savings that benefit everyone.

“Our largest client is the Spectrum at

20 March/April 2012 | ARIZONA FACILITIES

Val Vista Community Association, which encompasses 1,156 acres,” Nau explains.

“By watering during off-peak hours and using the Maxicom irrigation control system to promote water conservation, the association is currently under budget by $17,168 in water costs. Not only is that responsible, it’s just plain smart.”

SRP’s business TOU Price Plan is an optional, three-period time-ofuse plan. It has on-peak, shoulder and off-peak pricing periods and is designed for businesses with electricity demand ranging from 5–1,500 kilowatts that are able to take advantage of the lower prices in the shoulder and off-peak periods.

According to SRP, its TOU program can help many companies or families in need of trimming costs if they can manage electric usage, just as Spectrum IWDD did.

“The key to saving money on TOU is to limit usage during higher-priced

• Are open earlier in the summer • Are open later in the winter (after 9 a.m.)

• Are open weekends • Can avoid high electricity demands during peak usage hours (summer 2–7 p.m. and winter 5–9 a.m.)

• Can move operations or production schedules away from the first shift or start the first shift earlier in the day.

CCMC has managed both the IWDD and the Spectrum at Val Vista Community Association since their inception. It also serves some of the nation’s most successful master-planned communities, including Arizona’s Power Ranch, Desert Mountain, Vistancia and Grayhawk.

“Energy management is extremely important to our clients,” CCMC CEO Bart Park explains. “It’s our job to

TOU Energy-Saving Tips

educate them on all the programs and technologies that will help them save valuable natural resources and association dollars. Time-of-Use is one of these programs. Make no mistake: In this case, time really is money.”

To learn more about saving money and energy through price plans, contact your local utility. For more information and tips about SRP’s TOU Price Plan, call 602.236.8833.

ARIZONA FACILITIES | March/April 2012 21 23

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on-peak hours and shift to lower-priced off-peak and shoulder hours,” explains Debbie Kimberly, SRP’s director of customer programs and marketing. “The good news is that 85 percent of hours in the summer and 88 percent of the hours in the winter are lower-priced off-peak or shoulder hours.”

Typically, businesses that can save the most: • Are open Monday–Friday (8 a.m.–5 p.m.)

Pavement

Parking Lot Maintenance 101

Ways to Maintain a Parking Lot and Improve Curb Appeal

By Travis Power

B

udgets are tight. Lease rates are down. Incentives to obtain tenants are up. But that does not mean parking lots should not be maintained or curb appeal improved.

Property managers or maintenance staff have preconceived ideas about what to do to improve parking lot and curb appeal. Unfortunately, these ideas are not always the proper scope of work needed by the pavement. Here are some basic tips to make sure precious budget dollars are being used wisely: Get multiple quotes and opinions.

You might find the company you have been dealing with for many years is not looking out for your best interests.

Some parking lot contractors have their estimators on high commission pay plans, so beware of over-promises.

Here are a few of the not so honest practices being floated around the industry: One heavy coat of sealer is just as good as two. Selling slurry seal is the cure-all for everything, although it is a niche product, designed for a narrow slice of parking lots.

A gray area: The fabric overlay, promising to be just as good as reconstruction. There has never been any proof to that effect. Some studies have shown no difference on the use of fabric, so do your research.

A quick visit to the Arizona Registrar of Contractors website will ensure a

22 March/April 2012 | ARIZONA FACILITIES

company is properly licensed and not one of the nomadic companies that follow good weather and sell door to door. If you get the pitch, “We have some left over asphalt …,” you are most likely dealing with a nomadic, unlicensed contractor.

Re-bid old quotes.

Along with margins coming down, material prices have seen a drop as well.

Asphalt binder oil – the thick material left over at the bottom of the refinery tower – is tied to the crude oil barrel prices. About two years ago, one ton of asphalt sold for more than $80. Today that number is in the mid-$50 range.

Seal coat materials have gone down as

Make sure your apples are the same size and shape, not just the same color.

Look closely at the details. Are all the speed bumps going back to a solid color, and what color are they? Some striping crews will paint everything white in a parking lot to save time from changing spray rigs.

Ask about the seal coat material being used. Several companies make their own, while others buy from national firms. Most of the municipalities will not allow a home brew on their streets, so check into what is being applied to your parking lot. If you are doing an overlay or reconstruction, is the parking lot being checked for drainage problems in advance? Are the utilities such as water valves and manhole covers being

adjusted afterward, or will they be left low for a tripping hazard? Asking all of these questions will make sure all of your bids match up.

Do the basics, like small repairs, crack sealing and sweeping.

Many property managers are tempted into the promise that just seal coating will make all your worries go away.

Beware of companies that only seal coat, they might be looking to cash in. If you can’t do a complete repair, crack seal and

seal coat, then seal coat and stripe near the office. Sweeping often gets neglected, but loose sand and gravel in the parking lot acts like sandpaper under car tires and wears out the pavement even faster.

Following these basic tips will help to ensure the property is in good order and your maintenance budget too.

Travis Power is senior estimator for CPC Asphalt LLC. Contact him at 480.635.4340 or tpower@cpcasphalt.com.

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well. Ask your contractor to update their numbers. If you don’t see a significant drop, you might not be getting a fair price.

Department - Author Scottsdale’s

Fashion Square Mall Stands the Test of Time

By Kristen Hutchings Associate Editor

Careful Management Key to Success During Periods of Growth

S

trategically managing the expansion of a mall is critical to the continued success of a shopping center. Such was the case at Scottsdale Fashion Square, where management carefully oversaw multiple expansions to house more than 240 stores and restaurants, including Gucci, Coach, Louis Vuitton, Banana Republic, Macy’s and Forever 21.

Fashion Square offers a wide range of retail options, appealing to all tastes and pocketbook sizes.

Shoppers are aware of the benefits of such a well-managed mall. Fashion Square opens its doors to at least 12 million visitors each year. For more than 50 years, the massive retail center has been servicing customers through various expansions that have morphed it into the 1.9 million square-foot structure it is today, making it the largest mall in the Southwest.

The Beginnings Fashion Square began as a one-story, open-air structure in 1961, replacing what was once farm land and rodeo grounds. Fashion Square was Scottsdale’s

first mall. As the years passed, retail competition arrived with the construction of a new mall, Camelview Plaza, that was built just west of Fashion Square – practically right across the street – on North 70th Street. In 1982, the owners of both malls joined forces, and the malls were linked by a twostory retail bridge built across what is now Goldwater Boulevard, replacing a shuttle that serviced the two malls.

Over time, a second story and glass skylights were added to enclose the mall, and Fashion Square continued to see further expansion and renovation as more businesses and stores were added.

In 2009, Fashion Square kicked off their most recent expansion, a 160,000 square-foot, two-level addition, to support a new anchor, Barneys New York, along with some additional specialty shops. Barneys $1 million expansion included granite flooring on the first level, a staircase and teak wood floors on the second level. The project also involved oversized windows and comfortable seating for visitors to admire the beautiful Scottsdale view.

Natural light was strongly encouraged,

24 March/April 2012 | ARIZONA FACILITIES

Photo: Darrylee Cohen

so the center installed many skylights to let in the natural light.

Green Decisions Steve Helm, property manager of Fashion Square, along with operations manager, Patrick Collins and security manager, Rich Degraw, are dedicated to making steady, smooth and efficient decisions for the mall, especially in regard to energy. At the end of 2009, 8,800 light bulbs were replaced with more energy-efficient bulbs, which has saved energy and improved lighting in the mall and parking garages. The change has also improved safety for mall patrons. The lights were adjusted to turn on only during times when it was necessary. Fashion Square has seen enormous savings from these simple fixes, said Helm.

In addition to upgrading the lighting system, the central plants were updated during the expansion.

“When we added the expansion, we completely converted the older plant to a modern, much more efficient central plant,” said Helm. “We improved our efficiency by about 50 percent.”

Smooth Management With such an extensive mall, managing equipment to run smoothly can be a difficult task.

“You’re dealing with millions of people a year, and we have over 50 pieces of vertical transportation,” said Helm. “The biggest challenge is to keep everything working smoothly in a way that serves the customers well.”

To improve efficiency on other facets of the management process, Fashion Square has contracted with Control Building Services to oversee the maintenance of the property. Control uses SSC for cleaning, Horticulture West for Landscaping and Sundance Sweeping for the parking area cleaning.

Having one point of contact for maintenance makes daily management simple and efficient. Helm and his staff maintain the management of capital expenses beyond regular maintenance.

“If we’re doing a painting project or roof repair, above and beyond the scope of regular maintenance, we put that out to bid,” said Helm. “Over the course of the years, we have contractors we have used that we’re comfortable with, and from time to time, we find new contractors and give them a chance to bid. But really it comes down to historical relationships with groups of people we’ve done projects with.”

Attracting Business Fashion Square is known to welcome first-to-market retailers as tenants. The center has many unique shops as well as upper-class businesses. More than 40 of its stores cannot be found anywhere else in Arizona, Helm said.

High-end retailers are selective when opening new stores, according to a research paper issued by Christina M.L. Kelton and Robert P. Rebelein of Vassar College in Poughkeepsie, New York. Retailers carefully choose areas they think will succeed, which usually depends on demographics, high traffic areas, neighbors (ritzy shops often like to follow each other), and unique, specialty restaurants. With the opening of Prada in January, one of Fashion Square’s most

prestigious new stores, it’s an affirmation of the mall’s success and a confirmation they will see additional retail in the future.

With major anchors such as Dillard’s, Barneys New York, Neiman Marcus, Macy’s and Nordstrom, along with unique shops and numerous stores for a variety of people, Fashion Square is a distinctive mall that has not only withstood time but has flourished and become refined throughout the years.

Though, like all retail, sales dipped a

little during the economic turn in 2008 and 2009, the mall was not hit too hard, and they have had excellent sales in 2010, 2011 and have already seen a promising start for 2012, Helm said.

This bodes well for the future of the center, he added.

“We have an expansion area north of the shopping center where there are some businesses currently operating today, and we will ultimately redevelop those sites,” said Helm. “There is always opportunity for growth.”

continued on page 26 ARIZONA FACILITIES | March/April 2012 25 23

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11/7/11 8:38 A

Valley Big Box Inventory Gives Adaptive Reuse Ideas an Opportunity to Shine

By Kevin Schuck and John Rehling

A

s Arizona joins the rest of the country in battling back from the Great Recession, Valley municipalities and residents are left with a visual reminder of consumers’ shift in spending habits and the resulting effect on retailers.

Large, abandoned storefronts dot the metro Phoenix landscape from Chandler to Anthem. Including some old spaces left over from the last real estate market downturn six years ago, big boxes represent nearly half (46 percent) of the overall retail vacancy in great­er Phoenix.

According to a CBRE analysis of the Valley’s 8.57 million square feet of vacant big boxes, the inventory is a mixed bag. Some of the properties can and will be refilled by retail chains that not only have survived the recession, but have thrived over the past few years. Others appear to

be candidates for adaptive reuse – an industry buzzword encompassing actions ranging from rezoning to demolition. Of the 312 big box properties currently on the market, only 29 percent are what could be considered prime, or Class A and B, space, a ranking reserved for those with the most marketable location, size and reuse potential. The rest, a whopping 71 percent, face challenges ranging from age and space configuration to changing demographics, making them less likely to lease up quickly.

Already, some of the best locations are being backfilled by a handful of national retail chains that have successfully weathered the economic downturn. In 2011, discounted values and abundant occupancy opportunities generated 71 sale and lease transactions totaling more than 1.7 million square feet of big box space. Ross Dress for

Less, Hobby Lobby, Goodwill and Total Wine were among the most active retailers in the market, accounting for the absorption of 600,000 square feet of big box space last year.

DSW, Stein Mart, Whole Foods and Sunflower Farmers Market also have recently inked deals and are actively scouting the market for additional opportunities. Discount retailers like Dollar Tree and Dollar General, and some health club facilities, such as Planet Fitness and Youfit, are capitalizing on current conditions to expand their presence in the Valley, as well.

But, like a coin, every story has two sides – including the metro Phoenix retail market’s story. What do the numbers tell us about the flip side of the situation? continued on page 28

ARIZONA FACILITIES | March/April 2012 27 23

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RETAIL

Department - Author

continued from page 27

Last year’s absorption success was tempered by reports that 77 big box tenants gave back a cumulative 1.33 million square feet of space during the same time period. Retailer bankruptcy filings, while slowing last year, continued to feed the existing big box inventory. Borders, Ultimate Electronics and Bashas’ added a combined 16 big boxes to last year’s total. Not surprisingly, much of this product is concentrated in the southeast and northwest parts of the Valley, where anticipated high population growth prior to the residential real estate market collapse contributed to a retail-building boom.

The numbers at the end of last year show the Valley’s vacant big box supply grew by 13 boxes, and by more than 584,000 square feet, above 2010. The big question facing many landlords and city leaders now is what to do with all this space. It’s a problem that’s bigger

than any one building owner or any single intersection.

In Chandler, for example, city staffers and elected officials are trying to get out ahead of the big box vacancy issue with incentive programs for developers willing to pursue retail redevelopment. The city has funded $2.7 million in commercial redevelopment over the last decade, resulting in retail renovation projects totaling approximately 663,000 square feet. The effort has paid off in the form of lowering vacancy rates and attracting quality tenants.

In 2009, the city council took Chandler’s Infill Development Plan and existing Commercial Reinvestment Program a step further by approving changes that shift the focus to financial incentives for adaptive reuse projects involving existing commercial centers.

City leaders hope the changes will introduce new and/or additional uses, such as residential or office, at retail properties that are at least 50 percent vacant or more than 15 years old.

The ultimate goal of the push for infill redevelopment, city leaders say, is to decrease the supply of available commercial square footage, and in doing so, hopefully increase the demand for the remaining space.

Officials also anticipate the program will encourage renovation and redevelopment among surrounding properties, and spur new economic activity.

For all cities, building owners and tenants, moving toward adaptive reuse takes vision to see the potential buried in some of these boxes, especially those that have been around for years.

In some cases, a fresh coat of paint or a new stone façade is not enough to restore viability. These are the projects in which adaptive reuse really has an opportunity to shine; where replacing the retail use with another type of product, such as multifamily or industrial, may be the highest and best use of the site. Some challenged boxes may be left to consider non-retail uses, such as charter schools, churches, call

28 March/April 2012 | ARIZONA FACILITIES

centers and indoor sports facilities or may even be candidates for demolition.

In every case, success depends on an objective analysis of the property to determine how it fits into employment growth, traffic patterns and development trends, as well as what steps will be necessary to sustain the project in the future.

Speaking of the future, Arizona continues to make progress in its slow climb out of the recession, and the future certainly looks brighter than the immediate past. Large-scale closures by national retailers appear to be over, at least for the time being, and any individual store closures this year most likely will be selective, due to performance or consolidation reasons.

Abundant size and location choices, as well as limited entry cost, will continue to dominate the Valley retail picture as the market endeavors to clear out excess inventory. For tenants and buyers, this means Phoenix retail space remains “on sale” and available at very attractive terms. For landlords and building owners, it means at least one more year of entertaining creative solutions and adaptive reuse ideas to fill empty spaces.

No matter what side of the negotiating table you sit on, improving market conditions give us reason to believe the Valley retail market is on the mend. Despite the excess retail inventory – or perhaps because of it – Phoenix really is the land of opportunity.

Kevin Schuck and John Rehling, Senior Vice Presidents, CBREPhoenix, specialize in retail development opportunities and landlord/listing-based retail properties. They can be reached at 602-7355555 or at kevin.schuck@cbrecom, john.rehling@cbre.com.

Mission Statement: To actively and responsibly represent and promote the interests of the commercial real estate industry through effective leadership and advocacy through the collection analysis and dissemination of information, and through professional development.

much needed funds to the bottom line to help run our programs.

President’s Message 2012 officers and directors were elected on Dec. 20. Leading the organization this year are Gay Jarvis as president, Mona Dean as immediate past president, Dana Elcess as president elect and Andrea Krug as secretary/treasurer. The BOMA Greater Tucson Board of Directors consists of Frank Daversa, Mary Westmoreland, Katie Castillo and Diane O’Connor, all principal members, and Brandon Bosshardt, Eric Albright and Agnes Sheldon, all associate directors.

Congratulations to Principal and Associate Members of the Year Dana Elcess and Roxsanne Badilla. They have both worked tirelessly on committees and brought a great deal of enthusiasm and fun to the group.

This last Fall has been busy for BOMA GT members.

• BOMA GT held its first joint mixer event with the CCIM chapter. We look forward to meeting with them again in the future.

• Our annual golf tournament was a huge success. Everyone had a great time playing golf, winning prizes and hanging out with friends. We even had our first “Hole in One” winner.

The player won a Seiko Watch.

BOMA GT was also able to add

• Our Fall Trade Show was another success. We had most of our associate members participate as exhibitors.

• Our annual gift wrap event yielded lots of gifts for children that were distributed at the Gospel Rescue Mission’s holiday dinner in December.

We have a lot of activities scheduled for 2012. First up was our joint BOMA/IREM Economic Forecast Breakfast on Jan. 24. This was our annual state of the industry meeting, and we were fortunate to have newlyelected Mayor Jonathan Rothschild as our keynote speaker.

At the end of January Jeanie Merideth and Gay Jarvis attended the Winter Business Meeting/National Issues Conference in Washington, DC. Arizona BOMA, made up of members from BOMA GT and BOMA Greater Phoenix, will be educating state legislators on issues regarding commercial real estate during Arizona Advocacy Day in Phoenix.

Membership Benefits: Membership in BOMA Greater Tucson is all opportunity to learn, to grow and to effect positive change in the building ownership and commercial property management industry.

BOMA Greater Tucson links real estate professionals to the information, networking and education they need to succeed. Here are a few of the benefits members enjoy: • Be Part of a Powerful Team • Build Important Relationships • Boost Your Knowledge and Skills • Stay Up to Date on the Industry • Enjoy Exclusive Networking Opportunities • Access a Worldwide Industry Network • Advance Your Career and Hire the Right People • BOMA Membership Saves You Money 2012 Officers Gay Jarvis, President Dana Elcess, President-Elect Andrea Krug, Treasurer Mona Deane, Past President

ARIZONA FACILITIES | March/April 2012 29 23

Landscaping Department - Author

Turf is a Viable Option for Landscaping

By Rod Pappas

W

ith the recent increase of foliage at the City of Phoenix Water Services Department, one must now consider if all that green grass is really worth the cost.

Yes, it’s a pleasant contrast in the desert to have a little green mixed in with the cacti and native shrubbery. But if you take a good look at the facts and figures and what it really costs for those rolling green spans of turf, maybe it’s time to reconsider.

All common areas, such as entryways, parking lots, recreation centers and retention basins, need some sort of turf area to give the impression that, “Yes, we are open for business. Come on in.”

However, when turf surrounds individual buildings with strips of grass that are more frequently used for walkways or when large turf parks never get used, that’s not practical. This application adds maintenance costs. The turf also rarely looks good due to recurrent foot traffic. If some turf is removed, savings can be seen in several areas of facilities management.

Savings can be as much as 50 cents per square foot over a year’s time. So if a few smaller portions of unwanted turf are removed and replaced with cacti and

Benefits of Turf Removal • Reduced water bills • Reduced maintenance on buildings • Reduced maintenance on asphalt repairs • Less chance of water infiltrating the building/mold damage • Lowered risks of slip and fall injuries from water on steps and sidewalks • Lowered landscape maintenance/material costs • Avoidance of constant repairs on sprinkler heads, valves and PVC lines succulents, which use a lot less water, up to $15,000 could be saved on 30,000 square feet per year.

Sound too good to be true? There’s more to come. Many municipalities are providing incentives to get on the green bandwagon. They will pay an incentive for installing new controllers and removing turf and installing drip systems.

These programs vary from year to year, so it’s best to check first to evaluate the current soup de jour.

Saving water can be a painless and profitable venture. Turf reduction is removing only the unnecessary and damaging turf areas. All of the grass doesn’t need to be removed to maintain a lush, green pleasing effect. Appropriate application of turf areas is acceptable.

Water can still be preserved with proper turf management. The right steps to

reduce water usage should be taken along with correct water management.

Controllers are available that can turn themselves off when it rains and adjust the frequency of the water schedule through seasonal programming. These controllers are becoming less and less expensive as the technology improves.

Being green doesn’t mean green turf should be avoided. Turf just needs to be managed and monitored regularly. If turf areas are located appropriately and limited to focal areas, irrigation systems are regulated, updated and adjusted on a regular basis, building owners can be green while maintaining their green landscapes.

Rod Pappas is president of Xeriscapes Unlimited, Inc. He can be reached at rod@xeriscapes.com.

Tackling Tough Projects When University of Phoenix Stadium needed experts in facilities maintenance, they called us for help.

Now the Arizona Cardinals’ home is looking good for football season. Since 1975, we’ve been sprucing up landmarks Valleywide. Let us erase the “wear and tear” on yours with timely, affordable, high-quality solutions that keep your customers coming back.

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30 March/April 2012 | ARIZONA FACILITIES

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