IN THIS ISSUE: Office Market Forecast Spring 2011
EDITOR’S LETTER
CONTENTS
In the current economy, partnering with the right vendors is critical to building operations. Building owners and managers don’t have the budget or time to tolerate over-promising, under-delivering vendors. Whether it’s a service agreement or a new project, choosing the right vendor is critical. Vendors are an extension of your organization and can have a negative or positive impact on your building’s appearance, functionality and bottom line. As a building owner or manager you must understand what your needs are in order to make the right vendor selection. Knowing if the vendor has a local, regional or national footprint can be an important piece of information in the selection process. Sometimes choosing a local vendor allows for a closer relationship with the crew actually performing the service. If you manage multiple facilities, a regional or national vendor may have more comprehensive services and capabilities, saving you time and money on contracts and billing. Other considerations when selecting a vendor include: Do they have reporting capabilities that can be shared in order to improve efficiencies? Can they offer a single point-of-contact that can be reached at any time? What are their procedures for emergencies, and do they have the ability to respond quickly? Oftentimes, you won’t find a vendor that matches your needs exactly. In that case, the vendor you select should be adaptable and present creative solutions. The articles and advertising appearing in Oregon Facilities are aimed at helping building owners and managers make informed decisions regarding construction, modernization and management of their buildings. If you have comments or suggestions, please feel free to contact us. We want to share your stories about best practices and successful vendor relationships.
The Old Spaghetti Factory
4 8 9 11 13 18 19 20 22
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BetterBricks Awards LEED EBOM Disaster Preparedness Elevators Security Landscaping Office Forecast Boilers Briefly
On the cover: Construction of the Port of Portland was directed by Bill Wyatt, executive director, who received the Oregon/SW Washington BetterBricks Owner/Developer Award. Photo courtesy Port of Portland.
Managing Editor Oregon Facilities
CONTACT US Publisher
Editorial Assistant
Travis Barrington travis@jengomedia.com
Brooklyn Ashy
Managing Editor Kelly Lux kelly@jengomedia.com
Advertising Thomas Farwell tommy@jengomedia.com
Art Director
Oregon Facilities PO Box 970281, Orem, Utah 84097 Office: 801.224.5500 / Fax: 801.407.1602 JengoMedia.com
Doug Conboy
Contributing Writers Curt Lundine John Medak Eric Baxter
Katie Miller David Lyons Derek J. Bliss
Oregon Facilities is a proud BOMA National Associate member.
The publisher is not responsible for the accuracy of the articles in Oregon 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. Copyright 2011 Oregon Facilities Magazine. Oregon Facilities is a Trademark owned by Jengo Media LC
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OREGON BUILDINGS SUMMER 2010 I 3
Oregon/SW Washington
BetterBricks Awards Annual Awards Recognize Leaders in Commercial Real Estate Industry who Aim for Sustainability By Kelly Lux
4 I OREGON FACILITIES SPRING 2011
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he Lewis & Clark Facilities Services Team, under the direction of Richard Bettega, has implemented more than 60 energy conservation projects on the Lewis & Clark campus during the last two decades. The team’s efforts in reducing annual electricity consumption by 4,220,000 kWh and annual natural gas consumption by 240,000 therms, among other conservation measures, helped to earn them the Oregon/SW Washington BetterBricks Awards in the Facility Manager/Operator Category. Facility Manager/Operator Award “We are thrilled to be recognized by BetterBricks. It’s always gratifying when our energy efficiency and conservation efforts are recognized outside of our organization,” said Bettega. “I believe our team received this award because of our consistent application of conservation technology and methods, which have resulted in significant measurable reductions over time.” The BetterBricks Awards recognize individuals like the Lewis & Clark Facilities Team in the commercial building industry who are leading the way for high performance commercial
buildings with an emphasis on energy efficiency. For eight years, the Northwest Energy Efficiency Alliance’s BetterBricks initiative has been awarding building owners, designers, engineers, architects, operations staff and service professionals and other building professionals throughout the Northwest for their commitment to sustainability. Award categories include architect, design engineer, advocate, owner/developer, facility manager/operator, emerging leader and property manager. BetterBricks is the commercial building initiative of the NEEA, which is supported by Northwest electric utilities. Through BetterBricks, NEEA advances ideas to accelerate energy savings in new and existing commercial buildings. BetterBricks education and training, online resources and recognition of industry leaders guide and inspire building professionals to embrace best practices, improve energy performance and achieve their sustainability goals. “The Lewis & Clark community is acutely aware and interested in environmental and sustainability initiatives,” Bettega said. “Our team reflects this value in its facility management approach, in both shortterm work and long-term projects.”
Energy conservation projects done by the Lewis & Clark Team include lighting and controls upgrades, steam valve replacement, installation of energy management systems, retrocommissioning and controls tunes, installation of VFDs, boiler replacements, central plant upgrades, installation of building level energy meters and installation of sub-meters for major equipment. In the last five years, the college, through the efforts of the facilities services team, has saved 14 percent in total electricity consumed, 21 percent in natural gas consumed and reduced its total gross greenhouse gas emissions by 27 percent. “The team, and the college that it supports, has been successful due to a combination of bread-and-butter conservation projects and far-reaching, forward-thinking projects that set (them) apart,” said award nominator Christy Love, an environmental performance analyst for Mazzetti Nash Lipsey Burch. The Rose Quarter Operations Team, which manages the Rose Garden Arena for the Portland Trail Blazers, was a finalist for the Facility Manager/ Operator Category due to their recent commitment and actions toward sustainability. Nearly three years ago, the organization decided to investigate how their activities impacted the environment and to minimize their carbon footprint
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OREGON FACILITIES SPRING 2011 I 5
continued from page 5 through sustainable measures. The operations team implemented several energy efficient projects, including energy audits to identify further measures, lighting retrofits, changes to building operations plans, development of sequence of operations and sub-metering to isolate and measure additional facility building operations. The team also performed envelope studies, increased controls and implemented on-going commissioning and lighting/energy sweeps. Additionally, the Rose Quarter dedicated a week in April to sustainability, educating the public on how they could decrease energy demands and increase recycling. Blazer fans were encouraged to walk, bike and carpool to the events. The company also replaced gas-powered vehicles with electrical vehicles and bicycles. “These measures have reformed the culture of the organization into one that constantly and consistently looks for ways to enhance our building and reduce our environmental footprint,” said award nominator Justin Zeulner, director of sustainability and planning for the Rose Quarter Arena. The efforts of the Rose Quarter
Property Manager Award
Operations Team were instrumental in earning the Rose Garden Arena Leadership in Energy and Environmental Design (LEED) Existing Building Gold certification. The arena now saves more than two million kWh’s annually and focuses its efforts on sustainable purchasing strategies, indoor environmental air quality and building envelope enhancements. Property Manager Award Brian Pearce and the Portland Property Management Team of Unico Properties believe providing premier customer service is part of sustainability, a concept that is deeply ingrained in Unico’s approach to property management, said Sharon Mead, director of marketing and communications for Unico Properties. “Providing excellent customer service is the act of building sustainable human relationships,” Mead said. “Premier customer service isn’t much different from energy conservation or sustainable management of the built environment; it is simply good stewardship and good business.” Viewing environmental stewardship as a corporate responsibility, Unico believes this stewardship will benefit its Winner: Unico Properties, Portland Property Management Team
buildings by creating a more sustainable environment and providing a greater service for its tenants. Unico began its sustainable efforts with the purchase of the U.S. Bancorp Tower, which was retrofitted and re-commissioned to ensure equipment was running at its designed optimal range. Variable frequency drives were added to every air handler and pump in the building. Lighting in the building common areas was replaced with energy-efficient compact fluorescent light bulbs and T-8 fluorescents. These projects are saving $600,000 a year in operating costs and delivered a 61 percent return on investment. The building also received LEED-EB Silver certification. Nearly $125,000 was saved annually in operating costs at Unico’s Commonwealth Building once the HVAC system was rebuilt, a building automation system was installed and the multi-zone system was retrofitted with a DDC system. Green leasing tactics — which implement practices like using energy-efficient lighting and equipment, green cleaning products and low- or no-VOC paints, recycling and composting — were also implemented at the Commonwealth Building. Currently, all of Unico’s Class A
Facility Manager/ Operator Award
Team: Brian Pearce, Ty Barker, Krystal Newstrom, Emily Fillis, Kate Boyle, Amy Delbrouck, Brenda Maxwell Company: Unico Properties Photos courtesy of Justin Brady
Winner: Lewis & Clark Facilities Services Team Team: Richard Bettega, Larry Atchison, Sharon Hayes, Michael Iannantuano, Amy Dvorak, Janice Carter, Mike Gipson, Gabe Bishop Photos courtesy of Unico Properties
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Owner: Lewis & Clark College Facilities Services
continuedinfrom pageare 10either buildings Portland LEED-EB certified or are awaiting certification and all are tracking energy and water consumption on ENERGY STAR’s Portfolio Manager tool. Their continued efforts in sustainability earned Brian Pearce and the Portland Property Management Team the Property Manager Award from NEEA’s BetterBricks. “Through Unico’s various sustainable achievements, we have demonstrated our commitment to environmental stewardship while also lowering our energy costs,” Mead said. “It’s a true honor to be recognized for our commitment.” Owner/Developer Award Greg Herrenbruck, director of design and construction for New Seasons Market, and Bill Wyatt, executive director for the Port of Portland, received the Owner/Developer BetterBricks Award for their respective efforts in building and operating high performance buildings. Herrenbruck was instrumental in positioning New Seasons Market as a model for building solid community and vendor partnerships with an emphasis on energy-efficient, environmentally-
friendly operations. Overseeing the construction of the company’s two newest stores, Herrenbruck implemented several energy-efficient features such as the use of VOC-free paints, daylight harvesting, bioswales, concrete with fly ash, carpet made from recycled materials, LED lighting and chemical-free water treatment systems. He also led an energy audit of the nine existing buildings in the company, focusing on electricity, gas and water usage. Additionally, Herrenbruck made energy-efficient improvements in existing facilities, including replacing reach-in freezers and refrigeration units with high efficiency units, reducing water usage by up to 40 percent and receiving approval for the installation of cooling tower retrofits with nonchemical systems. “Greg sees the bigger picture and has a long-term vision,” said award nominator Heather Schmidt of New Seasons Market. “His ability to create partnerships and his drive to continually find new and better solutions has made New Seasons Market a neighborhood store invested in community and the environment.” Wyatt directed the construction of the Port of Portland’s new headquarters, built
Owner/Developer Award
on top of a seven-story parking garage at Portland International Airport. The building was a hands-on project where conservation and recycling measures could be tested and learned from and the Port of Portland could improve its approach to environmental stewardship and sustainability. The office space uses 36 percent less energy and the parking garage uses 78 percent less energy than similarly-sized counterparts. Energyefficient features include a passive radiant thermal system, an ecoroof, daylighting controls, occupancy sensors, window glazing and exterior shades to keep the building cool, low-flow toilet valves and a Living Machine wastewater treatment plant. Wyatt was instrumental in the Port’s adoption of a comprehensive environmental policy that was supported by water quality, air quality, natural resources, waste minimization and energy management programs. “Perhaps the most important aspect of Bill’s leadership is that he expects the same from himself as he does from others,” said award nominator Karl Schulz of inici group, Inc. “Bill also brought a commitment to incorporating both tried-and-true green building techniques with more state-of-the-art features.” OF
Winner: Greg Herrenbruck, Director of Design and Construction for New Seasons Market
Finalist: Rose Quarter Operations Team Team: AEG Facilities Owner: Rose Quarter Photos courtesy of New Seasons Market
Winner: Bill Wyatt, Executive Director of Port of Portland
Photos courtesy of the Port of Portland Photos courtesy of Lewis & Clark College
OREGON FACILITIES SPRING 2011 I 7
LEED
Figure LEED EBOM into your Budget By Eric Baxter
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s a building owner or property manager, two primary business goals are to maximize net operating income and provide tenants with a comfortable, well-functioning building. In recent years, the U.S. Green Building Council’s LEED for Existing Buildings Operations and Maintenance (LEED EBOM) rating system has been used successfully on hundreds of buildings to help meet these business goals. LEED EBOM provides building owners, property managers and operators with guidance on how to incorporate green building operational practices, offers standardized methods to rate building performance and acts as a third party evaluation platform to recognize achievements. The rewards for completing this process include reduced operating expenses, and a green differentiators to maintain and attract existing and prospective tenants. The rating system is fairly simple in its layout. Any building seeking certification must meet both basic prerequisite requirements and accrue points from a variety of optional credit strategies. Basic requirements include: verifying minimum water and ventilation system performance thresholds, conducting a baseline energy analysis of the buildings systems to identify cost-savings opportunities and establishing building operational guidelines to encourage sustainable purchasing, waste management and cleaning practices. Additional credit strategies could focus on: exterior site features and maintenance practices, water and energy using systems performance, material purchased for building operations and tenants, waste and recycling performance or indoor
environmental quality improvements. The cafeteria style rating system allows project teams to customize their certification program based on building ownership requirements, budget and building infrastructure attributes. Evaluation criteria are different for every project, usually balancing operational cost savings, marketing impact and tenant satisfaction. In the commercial real estate market, most teams focus on LEED strategies with a good simple payback that yields a quantifiable return on investment. For instance, it may sound like common sense to optimize when air conditioning and lighting turn on and off each day in different areas of the building, but these quick payback opportunities and years of operational cost savings often remain untapped. Many building improvements yield simple project cost paybacks of less than two years and thousands of dollars of annual savings. On one LEED project, scheduling changes like these required approximately $13,000 of controls contractor programming assistance but yielded an estimated $104,000 of annual operating savings. Some strategies create financial payback while simultaneously improving tenant conditions, such as addressing issues with HVAC system economizer cycles. When working properly, these cycles should optimize outside air use for climate control and minimize use of the system’s mechanical compressors. But these economizers often operate incorrectly, using excessive energy and creating poor indoor air quality. Correcting this helps your bottom line and provides a positive, tangible story to share in releasing negotiations and in conversations with potential tenants. Even though the benefits are clear,
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you’ll still need to be aware of and justify the costs of a LEED certification program. Basic costs incurred on all projects will include registering the project and paying for the independent third party review of your certification submission. Other costs could include outside consulting assistance, investments in equipment infrastructure and small changes to procurement practices. Many of your service subcontractors (window washing, landscaping, pest management, cleaning, etc.) are willing to move to greener operational practices for little or no cost premium to keep your business. Buildings with more than 20,000 square feet typically find a good balance of costs-to-savings potential, and an assessment process will solidify what strategies make the most sense. Smaller buildings can still find savings and improved occupant experiences with the same strategies larger buildings use, but certification costs may not make sense for them. On many projects a $50,000-$100,000 working budget range is a good placeholder to start planning your project before you assess for energy saving opportunities in your building systems. Overall project costs range from as little as 10 cents to $1 per square foot. Though most projects begin with a focus on cost savings, many building owners discover equal value in quick payback measures and in operating and maintaining their facilities to a higher level of performance — a great benefit for their tenants, marketing, occupancy rates, the environment and yes, their bottom line. Eric Baxter is the existing buildings group director at Brightworks Sustainability Advisors. He can be reached at eric.baxter@brightworks.net. OF
disaster preparedness
Panic to Possible Minimize Impact of Disaster by Planning Ahead By Katie Miller
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isaster can strike at any time. In seconds, everything can change. Everything can be stopped, leaving your business in jeopardy. In any disaster, quick response draws a fine line between recovery and irreversible damage. The first steps taken in the aftermath of a disaster are the most critical.
EMERGENCY PREPAREDNESS PLAN BASICS • Emergency telephone numbers for fire, police and emergency personnel • Emergency evacuation procedures • Comprehensive site map for utility shutoffs • Easy access to appropriate tools and first aid kits • A list of contacts for HVAC, plumbing, electrical, generators and other specialties particular to your building • List of any hazardous materials on site (make sure your MSDS book is up to date) • Partnership with a fullservice restoration company
At some point, your business will feel the effects of a disaster. By planning ahead and partnering with a restoration company, your business will experience less interruption and return to normal operations in a shorter period of time. Why Have a Partnership? Disaster recovery begins before the disaster. What you do beforehand will save time and money. Since disasters don’t always occur during the 8 a.m. to 5 p.m. work week, having recovery plans and authorizations in place can make a crucial difference when every minute counts. Without a formal partnership in place, you could be faced with flipping through the yellow pages at 3 a.m. after a disaster. At that point, it is difficult to decipher qualifications, and you could be left selecting a contractor that is not able to fulfill all the needs that your facility requires. Pre-selection of a multi-faceted emergency service contractor allows you assurance that your staff, clients and buildings will be in good hands. Selecting a contractor out of desperation could become more disastrous than the event itself. Additionally, having a partnership with a restoration company allows you priority over others during a large-scale or regional event. “We had more than 150 calls within 24 hours of the freeze breaking a temperature above 32 degrees,” said Derek Stewart, general manager of BELFOR, a property restoration
company in Portland, describing the freeze that hit Portland last winter. “Once the frozen pipes within the buildings began to thaw, the cracks that were established by the freezing weather began to leak and/or spray.The resulting damage from these types of leaks can be devastating. At this point we took care of our customers that we had partnerships with first, and then handled all other calls on a first-come, first-serve basis.” Consider the Event Your business is more likely to be affected by smaller events causing fire, wind, water or smoke damage. Planning for both small and large events is vital. What might be considered an annoyance to a corporation could be ruinous to a small business. Consider the following and the effects they might have on your business: water, fire, wind, smoke, mold, frozen pipes, earthquake, flood, hurricane, tornado, winter storm, hazardous materials, explosion or vandalism. Water is the single most, long-term, destructive substance in the indoor environment. All structural materials and personal property, of every description, deteriorate rapidly in the presence of excess moisture. A few inches of water on the floor will immediately soak into any porous materials. The humidity in the facility can rise to damaging levels within hours.
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disaster recovery continued from page 9 The problem worsens when cleanup and drying services are delayed. The window of opportunity to prevent mold development is within hours of water damage, not days or weeks. Having a restoration company respond to a disaster in a timely manner can greatly mitigate your loss. How to Choose a Restoration Company Select an accredited organization that can handle all of your needs. Choosing a company that can manage a job from start to finish eases the transition from panic to possible. Focus on three key elements: expertise, capacity and experience. Look for a company that has expertise in the services that you would need in the event of a disaster. Do you keep vital records and documents in your facility? Then a company that has the technology in document restoration is essential. If you have asbestos or hazardous material on the property, you would need a company that is licensed to handle that type of substance. Electronics and machinery restoration might be a vital piece to your road to recovery. Make sure you choose a company that is full service and an expert in their field. The company must have the capacity to handle a large loss to your facility. Do they have offices that are located in reach of your facilities? Do they have enough equipment and personnel to handle all types of losses? Ask for references and years of experience. Whether you have a commercial highrise or historical landmark, find a company that fits your needs.
and proper training, it will remain useless. Create building and site maps that indicate all utility shutoffs, alarms, fire extinguishers, exits, stairways, restricted areas, hazardous materials and high-valued items. Do a walk through with all employees and show them sytem locations and how to shut them off. Teach them to read and manage the fire alarm systems in the building. The most imperative thing is to know how and when to turn off water, gas and electricity at the main switches or valves. Sometimes shutting everything off may cost millions in production costs, depending on your business operations. Also include any external resources that could be needed in an emergency. In some cases, formal agreements may be necessary to define the facility’s relationship with the fire and police department, emergency medical services, utilities and insurance carriers. Just as all staff should have access to
Pre-Planning Many businesses have some type of emergency preparedness plan. A partnership with a restoration company will allow you to share the plan already in place or collaborate on the process of creating a plan. As with any plan, without practice 10 I OREGON FACILITIES SPRING 2011
the emergency plan, so should your restoration company. The response and action taken during the first 24 to 48 hours after a disaster are critical to determining whether or not your business fully recovers. Effective pre-planning and partnership with a single source solution recovery company has never been as important as it is today. Whatever the cause, disasters are now an established risk to every business and must be prepared for in advance. What is your plan to go from panic to possible? Katie Miller is the Oregon marketing director for BELFOR Property Restoration, a leader in disaster recovery services. For more information visit www.belforusa.com, or contact Katie at katie.miller@us.belfor.com. OF
Proper Elevator Maintenance Services and Agreements Increase Longevity of Equipment By David Lyons
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hile the concept of installing an elevator is quite clear, elevator service can sometimes seem subjective and vague. However, over the lifetime of the elevator, you, as the owner or building manager, will spend a fair amount of time, effort and money maintaining your elevator. Understanding your options for the different types of maintenance agreements and services is important. Three common types of maintenance agreements for elevators, escalators or moving walks exist: the standard or basic agreement, the full or
complete maintenance agreement and the premium or performance agreement. Other hybrid agreements incorporate parts of all three, but these make up the vast majority of all elevator maintenance agreements in place today. Basic Maintenance Agreement The basic maintenance agreement provides routine maintenance service, either periodically or on a scheduled basis. Routine service visits include examination and lubrication of elevator equipment. This agreement does not include part repair or replacement or unscheduled visits, commonly called “call-backs” or “call-
outs.” This type of agreement has lower periodic payments, but surprise payments for parts or call-outs can add up quickly depending on elevator use, age, type, brand, etc. Complete Maintenance Agreement The complete maintenance agreement provides all the services of the basic agreement, but it has two major additions: part repair or replacement and call-back service and requests for maintenance to restore the equipment to working order. Parts that
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continued from page 11 are worn due to normal wear and tear are repaired or replaced at no additional cost. Each agreement will detail which parts under certain circumstances will be repaired or replaced. The call-backs included in the agreement may be limited to normal business hours or may be extended to overtime for a premium. Additionally, safety tests may be included as required by code. The complete maintenance agreement has higher periodic payments than the basic agreement, but there are fewer surprise costs throughout the year. As with each of the agreement types, rely upon your service provider to outline the frequency of the maintenance visits to the property. Service technology today, such as remote monitoring, allows for much greater flexibility in how often a technician is needed on site.
elevators Performance Maintenance Agreement The performance maintenance agreement has all the services provided in the basic agreement and the complete maintenance agreement. However, certain performance criteria are also expected of the elevator service company and the elevator itself.These may include, but are not limited to,guaranteed elevator availability, floor-to-floor times, dooropen and door-close times, spare part availability, call-out response time, penalties for inoperable elevators and many more. In many instances, consultants or government agencies are involved in writing and enforcing these detailed contracts, but they are also available directly from elevator companies. Performance agreements have the highest periodic payments, but the surprise costs are typically low or non-existent, and reliability is almost 100 percent guaranteed.
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Various other a la carte services can be added or negotiated into each of these agreements. To name a few: state testing requirements, elevator emergency phone monitoring service, standby service, travel time, extras billing rates and any number of services to meet specific needs. Like all mechanical equipment, elevators need maintenance to perform at their optimum level and to preserve their vital function, moving people and freight. Elevator maintenance is a necessary service that keeps them reliable and available, and protects the value of your investment. David Lyons is account manager at KONE Portland. The information provided is a generalization and maintenance contracts may differ depending on the maintenance provider, equipment, location, etc. For more information, contact KONE at 503.209.9419. OF
security
Knowledge can Lead to Long-Term Savings By Derek J. Bliss
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ptions in security have increased in the last 20 years, leading to better pricing, motivation to improve technology and the ability to customize safety/security equipment to fit the needs of a reasonable budget. The benefits don’t stop there. If a consumer is aware of their options and involved in the planning process, there is potential for long-term savings. Many building owners are not involved in the decision-making process when it comes to the type of equipment selected for fire and life safety or intrusion alarms. Nor do they ask the right questions about long-term costs. Many decision are based on the company installing the equipment or who the contractor’s partnering installer is at the time. Historically, neither party is usually equipped to ask the right questions now to save the building owner money during the construction phase and each month thereafter. Many building owners and property managers learn the hard way with the high cost of monthly monitoring, costly service work and limitations of who can service the equipment. All this can be avoided with proper planning, asking the right questions and due diligence. Is the system non-proprietary? Meaning, no one company, or a limited number of companies, has exclusive rights to service, program or monitor the equipment. You are not compromising your safety or security standards by choosing non-proprietary equipment. In fact, most security experts would argue there is the opportunity for a higher standard when selecting nonproprietary equipment such as Silent Knight, Fire-Lite or Honeywell brand for fire panels. The more companies available to service the equipment, the better your odds are at keeping the system properly maintained. And in the event of an emergency, you want options for service and parts.This competition is healthy at keeping monitoring and service work at lower monthly costs,
saving you money each month — not just during installation. Besides the obvious costs savings with non-proprietary equipment during the installation process, you can select from a long list of future service technicians. Ask yourself if you will have the ability to make changes to your system, or will you be forced to pay the price each time by using the installing company your contractor selected for you? The minimal amount of time you spend now answering these questions, could save you a lot of time and money for years to come. What solution is there to use today’s technology to save you money long-term? Installing a quality system at a fair price versus cheap equipment at a low cost is not a good solution and will likely cost more money in the long-term. Understanding how your fire system and intrusion alarm systems work will help you know what questions to ask now in order to save you money and time later. No matter what state the economy is in, building owners should not pay more money than necessary to get the same services, or in some cases, a lower standard of service because they did not know what questions to ask. Don’t diminish the need to be deliberate in selecting a security firm who has your tenants safety and security needs and long-term financial goals in mind. A pick-a-name-out-of-the-phonebook approach or relying on your contractor’s relationship with their current electrical contractor selection is as dangerous as ever. Do they have your long-term goals in mind? No one is expecting the building owner or contractor to be the expert in fire and life safety or intrusion alarms. Don’t let your long-term relationship with your electrical contractor or the first security company that comes knocking sway you. Spending a little time now can have long-term benefits later. It is not all about the bottom line. New technology, which provides great monthly costs savings, provides a more
efficient safety/security solution as well. Getting the correct equipment installed will provide better protection, a more efficient and quicker detection system and the long-term financial savings — the reward that keeps on giving. Shop around Quality companies who want to provide monthly alarm monitoring at a reduced rate without compromising standards do exist. Most people don’t take into consideration who will monitor their alarm system and how much it will cost them after the installation is complete. More than 95 percent of the installing companies in Oregon use a third-party monitoring center to monitor their alarms. Moreover, most of those may be out-of-state. The same questions and due diligence should take place when doing an alarm systems upgrade. You will have more companies to choose from when choosing non-proprietary equipment. When shopping around, think of upfront costs, monthly costs and cost of service work. Will you own the system after it is installed or be making payments on the equipment for the next three to five years without ever owning the equipment? Are their additional costs to make program changes and to receive reports? Spending a little time now can have long-lasting benefits. Ask the right questions. Install the right nonproprietary system with the necessary technology to save you time and money later. Lastly, by correctly setting up your alarm response process, you can avoid false alarm fines or late night wake up calls leading to costly services calls. Derek J. Bliss, CPP, is board certified in security management and is the director of client services and the security consultant at First Response, Inc. Contact him at 866.686.1886 or derekb@fr-inc.com. OF
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he first Old Spaghetti Factory opened its doors in 1969 in a turn-of-the-century building located in one of Portland’s “less polished,” downtown neighborhoods. Guss Dussin, founder of The Old Spaghetti Factory and OSF International, which became The Dussin Group in 2008, had renovated the building, turning it into a unique restaurant, furnished with antiques and other distinctive interior improvements. Beginning with the Portland facility, Dussin developed a restaurant that he hoped would revitalize urban
core districts that had lost population to outlaying suburbs and began implementing this practice in his other restaurant properties, renovating buildings that had been deemed unworkable. By bringing older buildings back to life, Dussin was able to offer a unique, distinctive and historic dining experience in districts where rents and infrastructure fees were low, ample parking was available, fewer materials needed to be used and less energy was consumed. “Guss found landlords and building owners eager to bring their old
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buildings back to life,” said Maury Wickman, corporate facilities manager for The Dussin Group. “While in some areas, purchasing the distressed properties outright made financial sense because of development credits available from city and state agencies.” The Old Spaghetti Factory, with more than 10 million customers served annually, is a success because of smart thinking, smarter operating instincts and a devotion to customer value, all ideas that were founded by Dussin, according to the restaurant’s Website. Dussin began opening his
The Hillsboro Old Spaghetti Factory Photos courtesy of The Dussin Group restaurants in warehouses, factories, canneries, school houses, packing houses and a trolley car roundhouse — any rundown property that had potential and fit The Old Spaghetti Factory criteria. The presence and popularity of the restaurants led to community improvements as other stores and businesses moved into the community. Traffic increased in the area, and rent stayed low. Now, The Old Spaghetti Factory has 40 locations in the United States, with many of the restaurants in historic buildings.
Since finding structures with close to 10,000 square feet and meeting the other needs of the restaurant can be challenging, the Dussin Group now considers “second generation” buildings for the diner, said Wickman. For example, the Phoenix, Ariz., restaurant is in a historical personal residence built in the early 1900s known as the Roland Baker House. While the Chandler, Ariz., restaurant, built in a former restaurant in the Chandler Mall, is considered a “second generation” reuse of property. With more than 40 locations
nationwide and corporate headquarters located in Portland, management of facility operations can be difficult, especially East Coast and Mid-West restaurants, said Wickman. To minimize the challenges of distance, logistics and communication, Wickman relies on email, photos and written reports between him, district managers and general managers for field operations. “We encourage our managers to take ownership in our facilities,” said Ric Holderbaum, the director of real
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OREGON FACILITIES SPRING 2011 I 15
The Clackamas Trolley
The Old Spaghetti Factory Established 1969
Oregon Locations Portland 0715 S.W. Bancroft Street
Opened in 1983 (Moved from first location in downtown Portland, which opened in 1969)
19,000 SF (30,000 Sf including The Dussin Group corporate offices on the third floor)
Managed by: Maury Wickman Facilities
Clackamas 12725 S.E. 93rd Avenue
Opened in 1995 11,500 SF Managed by: Maury Wickman Facilities
Hillsboro 18925 N. W. Tanasbourne Drive
Opened in 1997 11,500 SF Managed by: Maury Wickman Facilities
continued from page 15 estate for The Old Spaghetti Factory. “And when confronted with difficult decisions, we have our managers ask themselves the question, ‘What would Chris Dussin (president of the Dussin Group) do?’ Then we have them make their decision based on what’s best for our customers and long-term goals for the facilities.” Managers are responsible for roofing, HVAC, flooring, bathrooms, kitchen equipment and building exteriors and interiors and in some places, landscaping. The vice president of operations and the district managers tour restaurants constantly to ensure the company’s standards of facility operations are being met and exceeded, Wickman said. General managers are well-educated on the parameters of facilities operations in their restaurants to keep the building operations running smoothly. Preventative maintenance is a key component in managing the national chain, Holderbaum said. “After 40-plus years in many of our facilities, we understand the importance of preventative maintenance programs and have benefited
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from investing in good quality equipment in the beginning and then hiring the best service companies for maintenance,” said Holderbaum. Keeping the HVAC and refrigeration equipment running smoothly is essential to the health and safety of patrons. The Dussin Group works closely with its vendors to ensure the companies they contract with are committed to keeping the restaurants in premium condition, Wickman said. Managers and their district managers review recommendations made by preventative maintenance technicians and make decisions and repairs accordingly. District managers and general managers also identify potential problem equipment or components in the buildings and have them repaired as necessary. “Our goal is to be proactive rather than reactive,” Wickman said. “Running equipment to failure is never our intention and has consequences that affect restaurant operations.” Despite their preventative efforts, equipment still fails occasionally, and often at the most critical times, Wickman said. Working closely with equipment parts warehouses that stock critical parts for equipment minimizes downtime at the restaurants and helps to avoid costly delays, he said. In maintaining the commercially sized HVAC systems, commercial boilers and/or 199,000 BTU water heaters, Booster Heaters for dish washing machines and commercial refrigeration equipment, cooling towers and chilling systems, outside contractors are hired, Wickman said. The Dussin Group negotiates national contracts where it makes the most sense, such as in alarm companies, chemical suppliers, trash haulers, recycling and grease pumping. By also partnering with local contractors and vendors, The Old Spaghetti Factory develops community ties that benefit the local companies and the facilities operations at the restaurant.
“Sometimes a smaller, local company is the best fit for our style of business,” Wickman said. “People become involved and have more pride in our buildings when they can become part of our extended restaurant family.” In addition to the work performed by vendors, the general managers run semi-annual checks on the equipment, and audits are preformed regularly. “A managed system of repairs along with recommendations for replacement of tired and worn out equipment keeps our critical list of equipment operating with little down time,” Wickman said. Cutting costs on equipment maintenance is not an option in the restaurant business, even during a down economy when budgets are tight, Wickman said. “With the responsibility of food safety as well as the cost of replacement equipment, it is important to maintain equipment no matter what the current economy brings us,” he said. “It doesn’t save us money to skip maintenance on
buildings and equipment.” Instead, the company looks for cost savings by purchasing as much energy saving equipment as possible, minimizing energy use and lowering high utility costs. Antique and handcrafted light fixtures are used throughout the restaurants, with newer technology in lighting for energy savings used in the kitchens and service areas. LED and T-8 fluorescent lights are used in these working areas with some on-motion devices, limiting energy use. The company also recycles where recycling services are available. “With an eye on energy costs and consumption when we expand our family of restaurants, we look for energy savings in choosing the right buildings, the right rooftop material, up-to-date HVAC equipment and kitchen equipment,” Wickman said. “New and improved technology is being developed that we continue to explore and incorporate into our operations. We look forward to the next 42 years of doing business.” OF
By The Numbers:
Jan. 10, 1969 Opening day in Portland
$171.80 Total gross sales on opening night
$400,000 Company sales after the first year
10 million Customers served annually
$1 million Money invested per restaurant in antiques, interior improvement
40 Total number of The Old Spaghetti Factories
3 Number of The Old Spaghetti Factories in Oregon
10,000 Average square footage of The Old Spaghetti Factory restaurant
The Portland Old Spaghetti Factory from the river OREGON FACILITIES SPRING 2011 I 17
landscaping
Existing Landscapes can be More Sustainable
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enants are asking about it. Investors are interested in it. Municipalities are requiring it. Many new landscape design ideas are being incorporated into new property developments. But what can you do with an existing landscape to make it more sustainable without completely redoing it? Install water-saving irrigation technology Despite our reputation for being the “rainy state,” irrigation is critical to keeping most landscapes alive and healthy. The key is to make sure your irrigation system is applying your water efficiently and appropriately depending on the landscape’s water needs. One of the most effective tools to improve irrigation efficiency is a weather-based controller. These controllers adjust daily based on weather data. Some have mini “weather stations” that are connected to the controller on site while others receive the weather data from a nearby weather station via a pager signal. As weather can fluctuate significantly on a daily basis, these automatic adjustments have shown to save 20 to 40 percent over standard manually programmed controllers. Most sites should achieve a less-than-two-year payback in the cost of conversion to a weather-based controller. A weather-based controller works best if the irrigation system it controls is efficient and uniform. Another good approach to save water is to do an irrigation audit to evaluate your system. The Irrigation Association provides irrigation auditing training and certification, and those who are properly trained can make recommendations on how to modify a system to be more efficient. Replacing, moving or adding sprinkler heads can vastly improve the water distribution uniformity, reducing
run-off and waste. Drip irrigation technology is also capable of reducing water use through placing the water at the roots of shrubs, avoiding run-off, evaporation and poor distribution due to heads being blocked by growing plants. Whereas sprinkler heads are best for most lawn areas, drip irrigation is often much more efficient for shrubs and ground cover. Convert less visible lawn to ecological lawn Have you ever noticed that the grass in your lawn near where a patch of clover is growing is greener and more drought tolerant than the rest of the lawn? This is because clover is legume and “fixes nitrogen” (pulls it out of the air), releasing it back into the soil like a fertilizer. A patch of clover stands out “like a weed,” but when uniform throughout a lawn, it can be attractive. Ecological lawn mixtures combine dwarf grasses with clovers and other low-growing herbaceous plants. These mixtures are designed to produce a green cover with reduced mowing, fertilization and irrigation. Although not necessarily appropriate for all locations, these mixtures can enhance a site’s sustainability and reduce long-term maintenance costs. Ecological lawns are probably most appropriate for perimeters and roadways but not necessarily a good choice for high profile areas such as building entries. Install a Rain Garden Traditional buildings capture rain from the roof, directing it immediately into the storm drain system and eventually to local streams. As development becomes more and more dense, streams have been seriously
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impacted by this increased flow, as well as by the addition of minerals and other pollutants. This has had a detrimental effect on the environment and wildlife. To mitigate this problem, rain gardens are being incorporated into development. A rain garden can be added to an existing landscape by disconnecting a building’s downspouts from the storm drain system and directing the rainwater into a vegetative swale. The swale is designed to accommodate water from a typical rain event and allow it to infiltrate back into the soil, keeping it out of the storm water system. An overflow is installed to capture excessive rain and keep the swale from overflowing. A rain garden can be a functional landscape amenity, improving the appearance of a property, making it unique and acting as a visible sign of sustainability. Pacific Landscape Management’s sustainable landscape solutions program has resulted in reducing the amount of chemicals they use, integrating organics into their fertilizers, promoting water saving technologies and converting equipment to newer lower emission models. Contact them at 503.648.3900. OF
2011 Portland Office Market Forecast Slow Growth, Improvement in the Economy and the Office Market By John Medak
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he current office market in Oregon can best be described as plain yogurt — you can live on it, but it’s a bit unexciting. Vacancy is high, and rents are low. However, they have stabilized during 2010, and the bottom has apparently come and gone. Unfortunately, the outlook for the near future doesn’t appear to add much flavor or variety. This year should bring slow but steady growth for the office market, but there is no reason to expect sharp upticks. Significant improvement and an exponentially growing market should occur in 2012 and 2013. During 2010, many tenants took advantage of the struggling market by negotiating favorable leases or extending leases early in exchange for early space or rate reductions or both. Landlords have reacted in a wide range of ways to the market and to tenants looking for relief or to take advantage of market opportunities. Longer term holders, and those not convinced of a quick recovery, were priced and positioned earlier in the year to attract new and retain existing tenants. Others that were more willing to gamble on a quicker recovery have not fared as well, and some are finding themselves offering terms less than they turned down early last year. Others in extreme circumstances have reacted differently. Those with loans coming due have had to find ways to preserve the value of the property, maintain debt service and still be able to compete in the market. Despite the aggressiveness of many landlords and some random case-by-case situations for belowmarket transactions, landlords seem to be firming up. The terms offered in the market are extremely
attractive with low base rents, free rent and other concessions. However, landlords are not willing to continue below what seem to be the new market standards. One thing seems consistent on both the part of landlords and tenants — reduced outlay of capital for tenant improvements. With more spaces to choose from, tenants are looking to find space closer to the “as is” condition they require so they can negotiate the best possible deal. Landlords are also more interested in preserving capital and the ability to offer economic terms required to land new tenants. Tenant activity in 2010 varied slightly from 2009, in that 2009 had more tenants downsizing, closing offices and seeking lower-class office space at lesser rates. In 2010, many tenants still shopped their renewals. However, a number of companies also took advantage of lowered rates in Class A space that were rapidly approaching the rates of the B buildings they currently occupied. That flight to quality is an indication that the bottom of the market has arrived and a shift should follow. Some sour points in the market are that Kruse Way has a higher vacancy than the Sunset Corridor for the first time since these two markets have been tracked; rates are lower today than they were in the mid1990s; and transactions are extremely difficult for both landlords and tenants to make in today’s economic environment. On the sweeter side, Portland is a tertiary market. While many larger markets suffered far before Portland did, owners have not felt the complete impact. Several of those same markets are experiencing
significant growth now, and Portland is not too far behind. Portland’s CBD has an extremely low vacancy rate, and rental rates are still fairly strong due to a lack of supply. Construction projects such as the new Intel facilities, Kaiser Permanente’s hospital in Hillsboro, the federal building rehab and Park Avenue West office tower will add a significant number of jobs in the Portland metro area, which should help give the local economy a shot in the arm. Tenants have begun to fill the shadow space in their offices. Few subleases are left on the market, and most of the space to be given back has already come back. So 2011 will show slow growth and improvement in both the general economy and the office market. Landlords should focus on short-term leases with low capital outlay, and tenants should look to secure long-term leases with options, as this may be the last time to capitalize on a suffering market. As 2011 closes and momentum builds, there should be a significant increase in transaction volume for 2012 and 2013, going from plain yogurt to a vanilla yogurt and to a fruit parfait. Vice President John Medak specializes in Portland-area office leasing and sales at NAI Norris, Beggs & Simpson, a real estate brokerage and asset/property management company. Contact him at 503.223.7181 or jmedak@nbsrealtors.com. OF
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Hot Water Supply Boilers Wise Choice for High-Volume Hot Water Requirements By Curt Lundine
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obody enjoys a cold shower or a cold building during the winter. Behind-the-scenes hot water supply boilers ensure no one has to feel the chill. Supply boilers produce large amounts of hot water for hotels, restaurants, apartment buildings, laundromats, churches and car washes. Wherever a reliable source of hot water is required for housekeeping and building comfort, hot water supply boilers provide water to temperatures not exceeding 250 degrees Fahrenheit at pressures not exceeding 160 PSIG — sufficient temperature and pressure for
most industrial applications. Modern designs of these kinds of boilers employ condensing technology with up to 96 percent efficiency. With the cost of fuel increasing at an alarming rate, these boilers are an attractive and wise choice for high-volume hot water requirements. The use of modulating burner design on modern hot water supply boilers allows the system load and boiler capacity to be closely matched. Boiler modulation helps eliminate short cycling, improving the service life of boiler components and reducing
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maintenance costs. Newer burner designs usually meet the air quality requirements for allowable NOx emissions of most air quality management districts. Early hot water supply boilers utilized natural circulation to circulate water between the boiler and a storage vessel. Natural circulation limited the system’s ability to recover quickly when large amounts of hot water were needed in hotels, restaurants, etc. Newer design improvements include fractional horsepower, low-head, large-volume circulation pumps that solve this
boilers problem by increasing heat-transfer from the combustion chamber, through the internal heat exchanger to the water. The boiler owner must determine capacity requirements of each hot water system in their building. This capacity is expressed on the boiler burner nameplate in BTUs per hour. A common formula that can be used to calculate system capacity based on temperature and flow-rate is: BTU/HR = outlet water temperature - inlet water temperature of boiler x flow rate in gallons/hour (GPM) of the circulating pump x 501 No one wants to experience mechanical problems with their building service systems, especially not during the cold seasons. It is good economic policy to practice aggressive preventative maintenance of your boilers, in accordance with the manufacturers recommendations. Some of the common maintenance problems of a hot water boiler systems are erosion, corrosion, vibration and scale: • Erosion of the heating element of a coil type water heater is directly related to the velocity of the water through the coil. Proper sizing of circulating pumps and piping will minimize this concern.
• Corrosion is a result of dissolved gases, such as oxygen, in the boiler feed water. Where a public water supply is used for make-up water, a water treatment program should be installed for removal of free oxygen and other corrosive elements. • Vibration may be caused by loose or misaligned rotating parts, or by water hammer in the heating system. Mechanical stresses caused by vibration can cause early failure of structures under pressure. • Scale is another result of poor feed water quality. Domestic water quality varies widely and should be a core consideration for prevention of boiler failure. Most Oregonians understand how fortunate they are to live and work in such a bountiful, beautiful state. What most do not realize is how fortunate they are that Oregon has developed and enforces one of the most comprehensive and proactive boiler safety programs in the country. Hot water supply boilers to be installed and used in Oregon are manufactured to stringent national codes. Installing contractors must hold a boiler business license issued by the state, and they must employ highly
skilled boiler tradesmen likewise licensed by the state. Every newly installed or existing boiler operating in Oregon undergoes thorough testing and inspection by nationally certified boiler inspectors, who must also hold a certificate of competency issued by the state, showing that they understand and enforce our jurisdictional boiler law. For further information about provisions of the Oregon Boiler Safety Law, contact the Oregon Building Codes Division in Salem, Oregon, at 503.378.4133. Modern civilization relies on a source of safe and economical hot water to maintain sanitary standards and customer satisfaction. So when an Oregon hotel guest steps into their shower after a long day of sightseeing and dining on local cuisine, they can rely on an abundant and reliable supply of hot water. Curt Lundine is the owner of Curt Lundine Consulting and has been involved in the boiler and pressure vessel field for 45 years. He worked as a boiler engineer for the city of Los Angeles and as chief boiler inspector for the state of Oregon. He can be reached at 503.551.2905. OF
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BRIEFLY Office vacancy in Central City decreased to 11.78 percent, with a few significant leases. Suburban office vacancy fell slightly to 23.88 percent, with 121,056 square feet absorbed. One of the larger leases of the quarter was ACS taking 30,656 square feet at Triangle Pointe for a new call center. Vancouver office vacancy rose slightly to 18.7 percent.
Wayne Lyman Morse U.S. Courthouse The Wayne Lyman Morse United States Courthouse in Eugene, Oregon, is the Northwest/Arctic Region’s first building to earn the Building Owners and Managers Association’s BOMA 360 Performance Program designation, and the first and only building in Oregon to receive these honors. The Morse Courthouse was one of 29 buildings to earn the most recent 360 Performance Program designation. The Courthouse is owned by the General Services Administration and is managed by Public Buildings Service. The Morse Courthouse shares this recognition with four other GSA properties across the country. The BOMA 360 Performance Program is a groundbreaking program designed to recognize commercial properties that demonstrate best practices in building operations and management. Since the program’s inception in spring 2009, 181 buildings have been designated. The BOMA 360 Performance Program evaluates properties in six major areas of building management: building operations and management; life safety/security/risk management; training and education; energy; environment/sustainability; and tenant relations/community involvement. The comprehensive nature of the program means that every aspect of building performance is assessed and scores are based on how buildings meet an extensive checklist of best practices.
SoloPower, Inc., a Californiabased manufacturer of flexible, thin film solar cells and modules, will locate a high volume manufacturing facility in Wilsonville, Oregon. The initial phase of this expansion will be the construction of a 75 MW manufacturing line which will create 170 new jobs. Upon completion, the facility is expected to have a nameplate capacity of 300 MW, employ approximately 500 people and have a total investment of approximately $340 million. The stateof-the-art production facility will greatly enhance the company’s ability to provide powerful, flexible, lightweight solar modules globally. The manufacturing facility will provide an economic boost to the community, creating jobs and supporting local business. “Over the past year, SoloPower has considered several alternative sites. Oregon is an exceptional location for our long-term growth,” stated SoloPower CEO Tim Harris. “Oregon’s business-friendly environment, excellent support programs, and highly skilled workforce made locating our new manufacturing facility in Oregon an easy decision.”
NAI Norris, Beggs & Simpson has released its fourth quarter 2010 quarterly reports for office, industrial, and retail commercial real estate, as well as its economic report.
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Industrial vacancy fell slightly to 15.01 percent, with 108,375 square feet absorbed. As one recent study showed, the industrial sector is a bright spot in Oregon’s economy, and the Port of Vancouver has recently seen heightened activity with BHP Billiton’s 60-acre lease. Retail vacancy was stable at 6.4 percent, with 81,081 square feet absorbed. The area’s first H&M opened in November at Pioneer Place, and H&M also leased nearly 20,000 square feet at Washington Square. Ross Dress for Less and Dick’s Sporting Goods also signed significant leases during the fourth quarter.
The Oregon Sustainability Center, the June Key Delta Community Center and The Commons in Portland are taking on the Living Building Challenge, a green building guide that requires a building to produce all of its own energy, manage all of its own water on site and use non-toxic, locally source materials. The buildings, which are all under construction, must be in operation for one year before an audit can be performed. If certified, the Oregon Sustainability Center, at 150,000 square feet, will become the largest building to be certified under the Living Building Challenge.
Portland Metropolitan Association of Building Owners and Managers (BOMA) recently launched Carbon4Square initiative, a challenge to property managers and building owners to demonstrate their leadership in sustainable building operations. Carbon4Square is the first building
operations challenge in the country that measures and reduces carbon consumption through the framework of waste, water, watts and wheels. This year-long, resource conservation effort will catalyze building teams to benchmark environmental performance and implement strategies that lead to greater efficiencies and reduced operating expenses. Participants can join the challenge at www.carbon4square.com. “Carbon4Square supports Portland building professionals as they begin or improve their sustainability initiatives,” says Susan Steward, executive director BOMA Portland. The challenge offers several categories in which participants can win. The “Carbon Leaders” category will be awarded to buildings having demonstrated the most success and innovation in managing watts, water, waste and wheels. The “Most Improved
Performance” category will be awarded to buildings showing the greatest percentage gain in ENERGY STAR® ratings over the year. Most Valuable Tenant will be awarded to a tenant who has demonstrated leadership and enthusiasm for sustainability. Finally, the grand prize will be awarded by a jury and will recognize superior achievement in managing carbon emissions across all four categories. Carbon4Square partners and sponsors include BOMA Portland, the Northwest Energy Efficiency Alliance’s BetterBricks initiative, Energy Trust of Oregon, BEST Business Center, City of Portland Department of Transportation, City of Portland Bureau of Planning and Sustainability, ENERGY STAR®, Metro, City of Gresham’s Great Businesses and Business Smart Trips. Partners have all stepped forward to make technical and educational assistance available to participants throughout the year. OF
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Oregon Facilities P. O. Box 970281 Orem, UT 84097-0281
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