The BOMA Magazine July/August 2009 by lprats

Leaders in Commercial Real Estate

JULY/AUGUST 2009

Emergency Preparedness

Evacuation Strategies for High-Rise Office Buildings Lessons from H1N1

Plus: TOBY Regional Winners How Green is Your Lease? Building Security During Volatile Economic Times

July/August 2009 Volume 5, No. 4

28 30

REPORT ON EMERGENCY PREPAREDNESS

Evacuation Strategies for High-Rise Office Buildings Geoff Craighead, CPP

Laura Horsley

Expect the unexpected when you peer inside the mind of a flu virus.

A breakdown of evacuation strategies, an excerpt from the latest edition of High-Rise Security and Fire Life Safety.

For advertising rates and information, contact Paul Hagen at Stamats Business Media 319-861-5165. Call for Nominations: Vice Chair and Executive Committee Members BOMA International’s Nominating Committee is seeking candidates for the position of vice chair and for five members of the Executive Committee to the Board of Governors. For further information, please contact BOMA International, c/o Ann Coslett, BOMA International, 1101 15th St., NW, Suite 800, Washington, D.C. 20005, telephone (202) 3266325; fax (202) 408-2699; e-mail acoslett@boma.org. Volume 5, No. 4 The BOMA Magazine July/ August 2009, (ISSN 1532-4346), Copyright 2009. The BOMA Magazine is published bimonthly in January/February; March/April; May/June; July/August; September/October; and November/December by the Building Owners and Managers Association (BOMA) International, 1101 15th St., NW, Suite 800, Washington, D.C. 20005; Telephone 202-3266300; Fax 202-326-6377; www.boma.org. Periodicals Postage paid at Washington, D.C. and additional mailing offices. POSTMASTER: Send address changes to: The BOMA Magazine, Attn: List Department, 1101 15th St., NW, Suite 800, Washington, D.C. 20005. Undeliverable U.S. copies should be sent to The BOMA Magazine, Attn: List Department, 1101 15th St., NW, Suite 800, Washington, D.C. 20005. Return undeliverable Canadian addresses to: PO Box 875, STN A, Windsor, ON N9A 6P2.

TOBY Award Regional Winners

Thinking Like a Virus Green Leases— A Study in Symbiosis

Hats off to the best and the brightest in office building management.

Stephanie J. Oppenheimer, APR

Finding equity for everyone in the “green” lease fine print.

DEPARTMENTS 6 8

12 14

Message from the Chair BOMA readies you for recovery. The latest on TALF and CMBS purchases, energy bills heat up Congress, notes from the NAC Conference—finding a path to liquidity.

State & Local Update Florida mayors endorse 7-Point Challenge, energy-efficiency funding heads to state and local governments.

Codes & Standards Update

Leading the Way

Sector Watch Ron Harrison, Ph.D.

Stepping up pest management in a down economy.

Legislative Update

ICC targets green building code at commercial markets, Gross Area Floor Measurement Standard released.

36 Trends Tracker J. Michael Coleman

Keep your building safe during volatile economic times.

38 Green Scene Jack Davis

Marketing a high-performance building.

40 Eye on Education

“Emerging Leaders” steer toward the executive fast track.

Buyers’ Guide Check out the latest industry products and services.

2009-2010 BOMA International Chair Jim Peck looks to the power of the BOMA network.

20 Around the Industry

Purtell addresses South African property owners, Areno scores a major award, BOMA 360 ups your value proposition, get to know Rik Hirano.

July/August 2009 BOMA 5

Message from the Chair

BOMA Readies You for Recovery For months now, the question on the minds of many BOMA members and industry colleagues has been, “How am I going to survive in this down market?” With vacancy rates hitting 15 percent and climbing and U.S. job losses surpassing six million in the past year, it has been a pretty urgent question. But now I think that conversation is turning. Although we still crave those survival strategies, now might be the time to ask, “Am I prepared to thrive once the worst is over?”

There’s no denying commercial real estate is still in the thick of it; we were late to join the recession and trends indicate that we will be late to emerge from it. That said, the savvy property professional knows that simply surviving the worst doesn’t mean you are primed for recovery. I’ve been in this industry for more than 25 years and have been through a few market cycles. Sooner or later, opportunities will be within our grasp; the tricky part is knowing when, and how, to reach out and grab them. That’s why BOMA is here. Many of you already have a step up on the competition because you attended the BOMA International Conference and The Office Building Show in Philadelphia this past June. You know that recovery doesn’t happen in a vacuum—that the collective knowledge and problem-solving skills of a couple thousand colleagues and friends always trump the efforts of the single individual alone at the helm. The insights from the Sunday General Session panel of industry leaders was worth the price of admission alone as they shared tested and true methods for enhancing market value in a crisis economy. Marketplace strategies were revealed in the conference’s 40-plus education sessions, and the most professional and knowledgeable product and service providers showed attendees that value and efficiency don’t have to come with a high price tag.

6 BOMA July/August 2009

The innovation and value from the BOMA International Conference was a precursor of what’s ahead in the coming year. We have an aggressive agenda crafted to help you identify and seize opportunity. You’ve already seen a glimpse of that with the launch of the BOMA 360 Performance Program and the new online EER. Programs like these will have a transcending impact on the way property professionals get the job done, and get it done well, in all areas—from tenant relations to building operations to energy management. I am thrilled to be leading BOMA International and look forward to the year ahead. That might sound counterintuitive to some, considering the burdens before us, but I believe greatness is earned by how you respond in difficult times. We’ve proven this in the past—just look back at the depression in the ’30s, the energy crisis of the ’70s or the deep marketplace recession of the ’90s—BOMA has always come out stronger on the other side. I look forward to working with you to advance this great industry.

James A. Peck, RPA, FMA Chair and Chief Elected Officer

Publisher: Lisa M. Prats, CAE Editor: Laura Horsley Associate Editor: Lindsay Tiffany Contributing Editors: Karen W. Penafiel, CAE, Ronald Burton, James Cox, Anita Smith Designer: Amy Belice Published by: Building Owners and Managers Association (BOMA) International

BOMA International Officers Chair and Chief Elected Officer James A. Peck, RPA, FMA CB Richard Ellis Albuquerque, N.M. Chair-Elect Ray H. Mackey, Jr., RPA, CPM, CCIM Stream Realty Partners, LP Dallas, Texas Vice Chair Boyd R. Zoccola Hokanson Companies, Inc. Indianapolis, Ind. Secretary/Treasurer Kent Gibson, CPM Zions Securities Corporation Salt Lake City, Utah President and Chief Operating Officer Henry H. Chamberlain, CAE, APR BOMA International Washington, D.C.

The cost for The BOMA Magazine is $75 a year for subscribers and $50 a year for BOMA International members. Publication of advertising should not be deemed as endorsement by BOMA International. The publisher reserves the right in its sole and absolute discretion to reject any advertisement at any time submitted by any party. Material contained herein does not necessarily reflect the opinion of BOMA International, its members or its staff.

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legislative UPDATE

The Economy, Change Management Top Spring NAC/ROC Agenda Dr. Norm Miller, with the University of San Diego Burnham Moores Center for Real Estate, discussed green trends and the marketplace benefits of efficient office space.

BOMA’S NATIONAL ADVISORY COUNCIL (NAC) and Regional Owners Council (ROC) convened April 30-May 1 at La Costa in Carlsbad, Calif., to discuss the faltering economy and the outlook for the commercial real estate industry and to work with a leading change management and leadership expert on how to move forward in these uncertain times. The National Advisory Council is made up of senior executives from the nation’s largest companies that own and manage commercial real estate. The Regional Owners Council provides a networking and information exchange for owners or equity partners of single or regional market commercial real estate. Mike Kent, managing director—property management, RREEF, hosted the meeting with BOMA International Chair and Grubb & Ellis Portfolio Manager Dick Purtell, RPA. Highlights of the meeting included:

The Current Real Estate Environment Stanley Iezman, president and CEO of American Realty Advisors, helped pinpoint some of the factors that led to the recession and declining real estate markets. “In the context of employment, this recession is likely to be the worst recession in 60 years,” remarked Iezman, who also observed that: • A three-percent decline in warehouse demand is expected for 2009. • A 78-percent decline in construction is expected for industrial buildings. • Warehouse vacancy will peak at record highs by early 2010. • Office job losses should push demand down by four percent in 2009, though office vacancies should start moderating in 2010. • Office construction has come to a grinding halt.

8 BOMA July/August 2009

• Retail vacancy is not expected to peak until 2010. Amidst this gloomy picture of the current reality, Iezman does see several positive indicators, signaling that an end may be in sight. Some of the weakest housing markets are picking up, and the credit markets for short-term money have stabilized, with a TED Spread near one percent.

National Policy Challenges for Real Estate: A Path to Liquidity Leading the combined efforts for the real estate associations in Washington to work with Congress, Treasury and the Federal Reserve, the Real Estate Roundtable’s Chip Rodgers led a discussion on the goals of the Term Asset-Backed Securities Loan Facility (TALF) and the Public-Private Investment Program (PPIP), and how it may evolve to impact the markets. Rodgers also discussed the Real Estate Roundtable’s 5 Point Plan: 1. Restart credit markets and enhance liquidity for CRE markets. 2. Encourage foreign investment in U.S. real estate by revising the Foreign Investment in Real Property Tax Act (FIRPTA). 3. Modify mark-to-market accounting rules. 4. Encourage lenders to extend and restructure CRE loans. 5. Reject new anti-real estate investment taxes (e.g. capital gains, like-kind exchanges and proposed tax hikes on partnership “carried interest”).

Green Trends Dr. Norm Miller, University San Diego Burnham Moores Center for Real Estate and a leading researcher on green

trends, shared some new research that showed that, while some of the leaders in sustainability might not be willing to pay a premium for green space, they expect a discount on less-efficient and less environmentally friendly space. He also observed that, with the federal government requiring ENERGY STARrated space for new leases and several state governments (such as California) enacting environmental requirements for their space needs, some markets will not be able to meet the demand for sustainable buildings. Miller also noted that, “You can poorly manage a green building or manage well a non-green building” and that green leases are evolving and will become more prevalent in the coming years.

What Got You Here Won’t Get You There With all the challenges confronting us, the title of Dr. Marshall Goldsmith’s best-selling leadership book, What Got You Here Won’t Get You There, couldn’t be more salient. We were honored to have Dr. Goldsmith with us to lead a workshop on helping successful leaders get even better. And, of course, the National Advisory Council/Regional Owners Council Spring Conference provided opportunities for real estate’s leaders to interact and network, as well as share ideas on how to stay the course while the global economy starts to correct. For more information on the National Advisory Council, contact Karen Penafiel at kpenafiel@boma.org. For more information on the Regional Owners Council, contact Pat Areno at pareno@ boma.org.

Continued on page 10

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legislative UPDATE

Fed to Offer Five-Year TALF Loans for CMBS Purchases In May, the Federal Reserve Board announced that, starting in June, commercial mortgage-backed securities (CMBS) and securities backed by insurance premium finance loans would be eligible collateral under the Term AssetBacked Securities Loan Facility (TALF). It also authorized up to $100 billion in TALF loans with five-year maturities to help investors finance purchases of CMBS, asset-backed securities (ABS) backed by student loans and ABS backed by loans guaranteed by the Small Business Administration. The Fed indicated it will continue to evaluate the $100 billion limit.

10 BOMA July/August 2009

According to the Fed, the inclusion of CMBS as eligible collateral for TALF loans will help prevent defaults on economically viable commercial properties, increase the capacity of current holders of maturing mortgages to make additional loans and facilitate the sale of distressed properties. It estimates that CMBS accounted for almost half of new commercial mortgage originations in 2007.

Energy/Climate Change Bills Moving Through Congress By the end of the summer, sweeping policy changes on energy and climate change may be upon us. Congress has already held hours and hours of hearings, heard input from hundreds of witnesses and, at press time, work in key House and Senate committees was well under way. Keeping his promise of passing energy/climate change legislation before Memorial Day, Rep. Henry Waxman (D-Calif.), chair of the House Energy and Commerce Committee, passed

H.R. 2454, the American Clean Energy Security Act of 2009, out of committee on May 21, largely along party lines. Of particular interest to the real estate community, the 950-page bill would establish a national model building labeling program and incentives for retrofitting existing buildings. Additionally, it includes language for “Greater Energy Efficiency in Building Codes,” setting aggressive targets for the 2010 version of ASHRAE 90.1 Standard that are 30-percent more energy efficient as compared to the 2004 version. By 2016, a 50-percent reduction is required, with an additional five percent every three years thereafter, reaching 75 percent in 2030. Through the amendment process, BOMA and some of our real estate partners were able to chip away at some of the most onerous parts of the enforcement language; however, we remain strongly opposed to the entire building codes section of the bill. The House bill also includes a carbon cap-and-trade program and other provisions aimed at addressing climate change. At press time, House leadership was

hoping to act on the bill at some point this summer, and it is expected to have enough votes to pass in the House. The Senate, however, is a much different story. The Senate is beginning work on an energy bill of its own. At this point, a standalone energy bill, which does not include the cap-and-trade provisions that are in the House bill, is under discussion in the Senate Energy and Natural Resources Committee. The Environment and Public Works Committee is expected to begin work on a climate change bill at some point this summer. Senate

watchers seem to agree that the energy bill has a good chance of passage, while the Democrats will not have the 60 votes needed to avoid a potential filibuster on the climate change bill. Once the House passes its broader bill, the Senate may elect to take that up and try to pass it, though the cap-and-trade provisions are very problematic for a few Senate Democrats whose votes will be critical to getting sufficient support.

Congress Introduces Catastrophe Insurance Legislation In late May—just in time for hurricane season—Congressman Ron Klein (D-Fla.) introduced the Homeowners’ Defense Act of 2009 (H.R. 2555), legislation geared towards reducing the cost and improving the availability of homeowners’ catastrophe insurance. Congressman Klein’s bill allows states that choose to participate in a national catastrophe insurance pool to spread the risk of natural disasters in order to bring down costs for everyone. Under the bill,

1GJ09-COMMRETAILERS-NC_BOMAHLF.i1 1

states would be eligible to pool their risk of natural disasters, which would, in theory, save the country money by taking preventive action before disaster hits, rather than addressing a more costly post-disaster cleanup. During the 110th Congress, efforts by BOMA International and its commercial real estate partners to include commercial real estate proved unsuccessful. The Homeowners’ Defense Act passed the House, but failed to move in the Senate. BOMA International, along with its commercial real estate partners, will once again work to include commercial real estate in this iteration of Congressman Klein’s bill.

6/10/09 4:59:03 PM

July/August 2009 BOMA 11

state & local update

7-Point Challenge Continues to Strike a Chord with Local Governments LOCAL GOVERNMENTS ACROSS THE COUNTRY continue to see the value in BOMA International’s 7-Point Challenge, an innovative energy reduction plan to achieve market transformation in the commercial real estate industry. In May, Orlando Mayor Buddy Dyer and Orange County Mayor Richard Crotty announced their endorsement of the Challenge at the Green Cities Florida

Conference. During their announcement, the mayors encouraged other local governments in the state to sign on. Commenting on the endorsement, Mayor Dyer said, “We are challenging businesses and commercial property owners to take the BOMA 7-Point Challenge. Together, we can dramatically reduce our energy consumption, continue to promote the use of renewable energy sources and position the Orlando area for long-term sustainable growth.” In conjunction with its industry partners, BOMA/Orlando will be providing education and training offerings to both the City and County as a way to apply the successful energy-saving techniques used by the commercial real estate industry in government buildings. “We

12 BOMA July/August 2009

are very excited to partner with Mayor Buddy Dyer of the City of Orlando and Mayor Rich Crotty of Orange County on the BOMA 7-Point Challenge,” said Diane Sitzer, BOMA/Orlando’s president. “This endorsement confirms the commitment by both the City of Orlando and Orange County in making improved energy performance a priority.” More than 100 companies and BOMA local associations have endorsed the 7-Point Challenge. Two other local governments, Phoenix and Albuquerque, have also endorsed the Challenge. The goals of the Challenge include decreasing energy consumption by 30 percent across portfolios by 2012 (in comparison to an “average” building scoring a 50 on ENERGY STAR), benchmarking energy performance and water usage and providing education to building owners and operators and others involved in building operations to ensure that equipment is properly operated and maintained.

Energy-Efficiency Funding Heading to City and State Governments In February, President Barack Obama signed the American Recovery and Reinvestment Act into law in an effort to jumpstart the country’s economy. A major focus of the stimulus package is an investment of $3.2 billion in energyefficiency and conservation projects in the nation’s cities, counties and states. The funding will support a variety of projects, including energy audits and energy-efficiency retrofits in residential and commercial buildings; the development and implementation of advanced building codes and inspections; and the creation of financial incentive programs for energy-efficiency improvements. Cities and counties will receive nearly $1.9 billion under the Energy Efficiency and Conservation Block Grant Program,

and states and territories will receive nearly $770 million. States will receive and administer funds for those counties and cities that are not large enough to qualify for direct funding. More than $54 million will flow directly to Tribal governments. The stimulus funding presents a tremendous opportunity for commercial real estate industry professionals and BOMA local associations to work with local governments on the

implementation of these programs. In fact, BOMA local associations are already educating their members on the impact of stimulus funding. The Apartment and Office Building Association (AOBA) of Metropolitan Washington recently released a report to assist its members in understanding the opportunities available to commercial real estate. Other local associations are reaching out to state and local energy officials to offer their expertise in energy-efficiency best practices. BOMA International has also developed materials to assist local associations in their efforts. For more information on developing an outreach campaign to your state and local energy officials, please contact BOMA International’s Director of State & Local Affairs James Cox at jcox@boma.org. For more information on specific information on funding amounts and eligibility, please refer to the Department of Energy’s website at www.energy. gov/recovery.

July/August 2009 BOMA 13

Codes & standards update

ICC to Develop Green Commercial Building Code

THE INTERNATIONAL CODE COUNCIL (ICC) has announced its intent to develop a green building code targeted at the commercial market. ICC’s public announcement said, in part: “This new project … [will cover] traditional and high-performance buildings [and will be] consistent and coordinated with the ICC family of codes and standards.” This ICC green building code would cover the same type of buildings as another green building code under development by the American Society of Heating, Ventilating and Air-Conditioning Engineers, the U. S. Green Building Council and the Illuminating Engineering Society of North America—BSR/ ASHRAE/USGBC/IESNA Standard 189.1P, Standard for the Design of High Performance Green Buildings Except Low-Rise Residential Buildings. BOMA is currently a voting member of the consensus development committee for the 189.1P document.

ICC will be joined by the American Institute of Architects as a co-development partner on this project. According to ICC, the timeline for the project will include completion of a draft code by early 2010 and submission of that draft to the ICC code development process for publication with the 2012 series of ICC codes. ICC previously developed the ANSI/ICC Standard 700, National Green Building Standard, covering all types of residential buildings, in cooperation with the National Association of Home Builders. BOMA also participated in the consensus development committee for Standard 700.

ICC launches Green Building Inspector Certification The International Code Council recently announced it was developing an Inspector of Green Building Technologies certification exam to allow code officials to demonstrate their ability to understand the application of green building technology and assess adherence with green building programs. According to ICC, “Communities and code officials can use the Certified Inspector of Green Building Technologies ... to help ensure that green building programs are implemented in a coordinated manner with the International Codes.” This move by ICC is further evidence that green building rating programs have become more mainstream in many communities and that BOMA’s focus on the development of green building standards and codes will deliver tangible benefits to BOMA members in the future. Continued on page 16

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Codes & standards update

BOMA Announces New Floor Measurement Standard

the gross are as of a building :

methods of measurement

BOMA released a new floor area measurement standard to determine the gross floor areas of a building. The new standard, The Gross Areas of a Building: Methods of Measurement, is intended for buildings containing all types of occupancies—office, retail, industrial, single and multi-unit residential, hospitality, entertainment and institutional buildings—both private and public. The two methods provided in the standard can be applied to both new and existing buildings containing single or multiple stories that are either owner occupied or leased to one or multiple tenants. BOMA developed the two methods in this new standard to clearly define the construction gross area and the exterior gross area. These procedures for measuring the gross area not only serve the interests of property owners building owners and managers association (boma) international www.boma.org

[ i ]

and managers, but will also appeal to facility managers, brokers, appraisers, assessors, lenders, insurers, developers, construction and design professionals and others who need an unequivocal, direct measure of the physical size of a building. The Gross Areas of a Building: Methods of Measurement is available from the BOMA Bookstore at http://shop.boma. org. For more information, contact Dave Johnston at djohnston@boma.org.

DOE Announces Funding for Ground Source Heat Pump Technology U.S. Energy Secretary Steven Chu recently announced nearly $50 million from the American Reinvestment and Recovery Act will be allocated to advance commercial deployment of geothermal heat pumps, commonly called Ground Source Heat Pumps (GHPs). GHPs are renewable heating and cooling systems that use energy from below the Earth’s surface to move heat either into or away

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from a building. GHPs can be more efficient than the air-source heat pumps more commonly found in commercial and residential applications today. According to the Department of Energy (DOE), the expanded manufacturing and installation of GHPs could aid in the creation of new jobs while reducing the use of fossil fuels. GHPs can substantially reduce building-related electricity demand while providing lower utility bills and lower maintenance costs to users. DOE announced opportunities for cost-shared technology demonstration GHP projects that would retrofit/incorporate a minimum of 50 tons of heating and cooling capacity and could be deployed in various geological conditions and climate zones in either residential communities or commercial buildings. For information on this and other funding opportunities under the Recovery Act, visit www.energy.gov/ recovery/funding.htm.

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leading the way

Meet the New Chair James A. Peck, RPA, FMA Senior Director, CB Richard Ellis, Albuquerque, N.M.

BOMA INTERNATIONAL’S 2009-2010 CHAIR AND CHIEF ELECTED OFFICER James (Jim) A. Peck, RPA, FMA, is senior director in CB Richard Ellis’ Albuquerque office. Jim has been in commercial real estate for more than 25 years and has held positions in corporate real estate, building management, leasing and construction. He has been a member of BOMA since 1986 and was president of BOMA New Mexico from 1995-1997. Jim has served on or chaired several BOMA International committees, including the Government Affairs Committee, State Government Affairs Committee, the Industry Defense Fund Oversight Committee and the Executive Committee.

individuals will have a competitive advantage?

Your leadership as chair comes at a time of great challenge for commercial real estate and the economy. Do you see any marketplace opportunities over the next year?

Where do we need to focus our advocacy efforts in the coming year?

There’s a lot of opportunity for those who build on already established best practices. Take advantage of these practices to strive for superior building operations, contain operating expenses and drive energy and sustainability efforts. The well-run buildings are the ones that are going to do okay. Tenants want to be in the best of the best—whether it’s a TOBY building, a BOMA 360 building or an ENERGY STAR®-rated building.

At the 2009 BOMA International Conference, the first class of BOMA 360 Performance Building recipients were honored. Do you think these 18 BOMA July/August 2009

The timing couldn’t be better for the launch of the BOMA 360 Performance Program. It really helps set a building apart from the competition and it makes that value proposition case for the best operated buildings. The BOMA 360 designation certainly gives those folks a competitive advantage and it’s something they can market through their leasing efforts. It’s great for tenant renewal efforts as well, because a manager can show his or her tenants exactly what the criteria was to gain the designation. It’s a measurable means of success.

From a local standpoint, as part of BOMA One, we’ve asked people to make sure they have a government affairs or advocacy committee, and I think that’s crucial. BOMA members can take advantage of BOMA International staff to help start a committee or strengthen an existing committee. We have to make sure that the voice of commercial real estate is being heard at all levels. When legislation is being discussed, we want lawmakers to say, “Let’s get BOMA’s input on this.” Government Affairs is one of my passions. When I was at the National Issues Conference back in March, I made a point to explain to New Mexico Representative Ben Ray Lujan that issues like capital gains and leasehold depreciation have a real impact on members in our market, who are mainly small regional investors, as they will be directly affected if we don’t keep these important tax deductions.

What are you most excited about during your year as chair? I’m excited about visiting as many local BOMA associations as possible and talking about what’s going on. The programs we have now and the new ones we’re rolling out help drive home that value proposition of BOMA membership. Programs like BOMA 360, BEEP and the SOS series—it’s all great stuff members can take to their owners and bosses and say, “This is why we belong to BOMA. These real-world tools help us manage our buildings better.”

How did you get started on BOMA’s leadership track? Any advice for those who are considering volunteering or pursuing a leadership role? I was managing an office building in downtown San Francisco in 1984 when one of my vendors took me to a BOMA/ San Francisco meeting and that got the ball rolling. I moved to Albuquerque in the early ’90s and became president of BOMA New Mexico in 1995 where I started the Government Affairs Committee that they have there now. That eventually led to more involvement on the International level and I was appointed to chair BOMA International’s State Government Affairs Committee by Sherwood Johnston. We are all busy in our day jobs, but if you have a real passion for the industry and you want to make a difference, find the time to volunteer with BOMA. And remember, everyone’s input is vital. I represent the smallest association that has ever had a chair for BOMA International. If I can do it, you can do it.

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Around the industry

Purtell Speaks at SAPOA Conference Former BOMA INTERNATIONAL CHAIR DICK PURTELL was a panelist on a global outlook discussion at the SAPOA International Convention & Property Exhibition in Durban, South Africa, June 3-5. John Cushman, director of Cushman & Wakefield, was the session’s keynote speaker. The session looked at the decline in economic growth throughout much of the world, including the rapid drop in commodity prices, the decline in a variety of asset prices and the contraction of global trade. Purtell brought the property management perspective to the panel discussion and emphasized the value of networking and education through groups like BOMA and SAPOA to help maximize value in the office market. SAPOA (South African Property Owners Association) brings together all role players in the commercial property field in South Africa to create a powerful platform for property investors. Learn From left: Former BOMA Chair Dick Purtell with his wife, Judy; CEO more at www.sapoa.org.za. of SAPOA Neil Gopal; and John Cushman with his wife, Jenny.

Member Spotlight:

Rik Hirano

In the second segment of The BOMA Magazine’s “Member Spotlight,” Rik Hirano, vice president of real estate development for HDG Inc. and member of BOMA Hawaii, shares how he leverages his BOMA membership to network with industry peers and save his company money. TBM: What do you see as the most important benefit of your BOMA membership? RIK: For me, the networking is the most valuable thing BOMA has to offer. We are a Hawaii-based company with projects nationally, so to be able to meet with other BOMA members at the annual conference is very important to us. Sharing experiences and exchanging ideas about issues and challenges we are facing allow me to bring a fresh perspective to my business. TBM: How did you become a member?

BOMA’s Partnership Program Keeps Growing Kimberly-Clark Professional renews, IB Roof Systems and ValleyCrest join BOMA International is pleased to announce that Kimberly-Clark Professional has renewed its Cornerstone Partnership for an additional three years, through 2012. Kimberly-Clark Professional, a business unit of global health and hygiene leader Kimberly-Clark Corporation, has supported BOMA International´s crucial industry programs at the highest level as a Cornerstone Partner for a decade. “Kimberly-Clark Professional is one of the most respected suppliers of health and hygiene products in the business and one of our longest standing partners. We are delighted they have decided to further strengthen our relationship by extending their Cornerstone partnership for three more years,” says former BOMA International Chair and Chief Elected Officer Richard D. Purtell, portfolio manager, Grubb & Ellis Management Services, Inc.

IB Roof Systems, a leading manufacturer of high-quality roofing products and accessories, was recently welcomed as BOMA’s newest Cornerstone Partner, a role that allows them to support BOMA’s crucial industry programs at the highest level. Joining BOMA’s Leadership Circle of Partners is ValleyCrest, the nation’s largest integrated landscape services provider, offering design, construction and maintenance. BOMA International´s partnership program, developed in 2004, allows companies to invest in their own success and viability, as well as that of the industry. With three levels of participation—Cornerstone Partner ($50,000), Leadership Circle ($25,000) and Supporting Partner ($10,000)—the program demonstrates the commitment of leading organizations to support BOMA International with the needed resources to advance its advocacy, education and research initiatives that benefit the entire commercial real estate industry. Find out more about BOMA’s partnership program at www.boma.org/get involvedBOMAPartnershipProgram.

RIK: I attended my first conference in Seattle back in 1992 as a non-member. I wanted to see what BOMA was really all about. One of my building managers was a member of BOMA and he thought it would be a good idea to get involved. The classes I attended were very informative and I met some great people at that conference. I was sold. I joined BOMA the following year. TBM: Is there any BOMA program or event that you find particularly valuable? RIK: I encourage all owners and managers to attend the annual conference. This year will be my 16th conference. I encourage my managers to attend because they bring back information and new ideas that we implement in our buildings that save us a lot of time, manpower and money in the long run. The trip pays for itself. I think the conference is one of the best benefits of BOMA membership.

Rik Hirano, BOMA Hawaii

Continued on page 22

20 BOMA July/August 2009

Security: Today’s Technology Expands Your Options

A brief from NECA’s Electrical Design Library Issue 3, 2009

ecurity-system technology is moving ahead rapidly, evolving to become more sophisticated and streamlined. Digital options allow managers to store and retrieve security data more quickly and less expensively. Software advances make it easier for access control, monitoring and other equipment to communicate with other building systems. Such new solutions can raise important questions. Perhaps there should be a boundary between the security and information technology departments. But that line is fuzzier these days than it once was and seems to be fading over time. As a result, thoroughly planning your security system is now more critical to your installation’s success. These systems once were added to a building after construction had already begun but today they must be included in any new building’s up-front planning.

Choices expand, costs fall Advances in commercial building security parallel those taking place in our homes. As computing and communications technologies have become less expensive, they’ve also become more common throughout our daily lives.

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Around the industry Areno Nabs Elite Association Honor BOMA Senior Vice President Pat Areno has been awarded the ASAE & The Center for Association Leadership’s Professional Performance Award, one of ASAE’s highest individual honors recognizing excellence in the association profession. Areno helped launch the award-winning, energy-efficiency education program, the BOMA Energy Efficiency Program (BEEP®), which has educated more than 14,000 industry practitioners. She was also instrumental in developing several new education programs at BOMA, including BOMA Boot Camp for Property Managers (which won an ASAE Award of Excellence), Emerging Leaders in Real Estate at Harvard University and Foundations of Real Estate Management. Areno conceived of and launched the successful BOMA Partnership Program, which brings together BOMA and key suppliers in a strategic business relationship to achieve mutual goals. She also led an effort to raise nearly $100,000 to assist BOMA members who were victims of Hurricane Katrina through the BOMA Foundation. The Professional Performance Award recognizes valuable contributions made by association executives who are at the top level within their organizations but are not CEOs. Congratulations, Pat!

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BOMA 360 Performance Program Launches The highly anticipated BOMA 360 Performance Program has launched. This ground-breaking new program is the latest value creator tool from BOMA, designed to recognize commercial properties that demonstrate best practices in building operations and management. The program is an online self– assessment that evaluates six major areas of building operations and management and benchmarks a building´s performance against industry standards. It´s the only tool that takes a 360-degree evaluation of a property´s operations and management practices. By achieving the BOMA 360 Performance Building designation for your building, you demonstrate to owners, tenants and prospective tenants that your building is managed to the highest standards of excellence. There is an application fee that is tiered based on a property´s total square footage. Applications may be submitted at any time of the year, with designations conferred quarterly. Find out more at www.boma. org/GETINVOLVED/BOMA360. Look for it: Read about the first class of BOMA 360 designees, honored recently during the BOMA International Conference, in the September/October issue of The BOMA Magazine.

A Penny for Your Thoughts? Make it $100! Congratulations to the following BOMA members, who entered and won a drawing for $100 American Express Gift Cards for participating in Orkin Commercial Services and BOMA International’s Pest Management Survey: Cindy Blaszak, Dasco Companies Catherine Brown, TMI Ryan Burke, Kraus-Anderson Realty Julie Haynes, Thomas Properties Group Kimberly Heslep, Blackstone Property Management Tina Hester, Cousins Properties Inc. Carol Jackson, Flair Management Steve Melko, Gates, Hudson & Associates Philip Porta, Institutional Property Managers Laura Rusiniak, River City Thank you to everyone who took the survey and shared their pest management insight.

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Around the industry Member Spotlight:

Bonnie Calame

In this inaugural segment of BOMA’s “Member Spotlight,” Transwestern Senior Property Manager Bonnie Calame, a BOMA/Suburban Chicago member, shares with BOMA how she gets the most value out of her membership. TBM: What do you see as the most important benefit of your BOMA membership?

BONNIE: It’s a tie between the professional networking and the education. I love BOMA because it enables me to make so many professional connections. When I have an opening or need to talk to a colleague, I know who to call, and there is no question that those BOMA contacts will be good candidates. The education sessions are also great. I try to attend as many as possible because the programming is always relevant. TBM: How did you become a member? BONNIE: I started working in commercial real estate in the suburban-Chicago marketplace in 1993. I joined BOMA in 1995 and became active around 1997. Since then, I attend our local events as regularly as possible, and even served on BOMA/Suburban Chicago’s Membership Committee in 2005. Membership has been a valuable tool in my career.

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TBM: Is there any BOMA program or event that you find particularly valuable?

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BONNIE: I really enjoy the Engineer’s Dinner put on by BOMA/Suburban Chicago. I attend every year. I like it because it honors those who are behind the scenes and who don’t necessarily get recognized as much as they should. I think the dinner is a great way to show our appreciation as property managers for all the hard work that our engineers do. Look for it—BOMA Member Spotlights will be featured in upcoming issues of “The BOMA Magazine.” If there is someone you think we should feature, let us know at lhorsley@boma.org.

In Memoriam: Walter Raine The property industry in Australia recently lost one of its pioneers with the death this past November of Walter Raine. He was 78. Raine was an attorney and advisor to the founders of the Building Owners and Managers Association of Australia, what is now the Property Council of Australia. In a recent article, Peter Barda, former CEO of the Property Council of Australia, described Raine as “one of the few remaining behemoths of commercial property investment and development in Australia.” Raine attended many BOMA International conventions, chaired the BOMA International International Region Committee and was instrumental in growing BOMA International’s International affiliates. He is survived by his wife, Betty; son, Ian; and daughter, Sally.

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Evacuation Strategies for High-Rise Office Buildings By Geoff Craighead, CPP

reparing for an emergency situation is paramount among the responsibilities of a property manager. Evacuating a building, whether a building with 100 occupants or 1,000 occupants, presents numerous challenges for building management. Evacuation strategies often need to be determined within moments, depending on the nature of the emergency. These challenges are often amplified during the evacuation of high-rise office buildings. The strategies listed throughout pages 25-27 can help building management determine which highrise evacuation procedures to use, depending on varying emergency scenarios.

24â&#x20AC;&#x192; BOMAâ&#x20AC;&#x192; July/August 2009

Report on Emergency Preparedness

Defend-in-Place

According to the Fire Protection Handbook, put out by the National Fire Protection Association, defend-in-place (sometimes known as “shelter-in-place”) strategy “recognizes that, at times, it is safer for occupants to remain in place within protected zones of a building than to evacuate the building.” Such a strategy might be used in the case of a chemical or biological incident, or an explosion, which has occurred outside of a building.

Delayed Evacuation

The Handbook also defines the delayed evacuation strategy as one that “takes advantage of temporary holding places, typically known as an ‘area of refuge or area of rescue assistance,’ where occupants can remain in relative safety, albeit near the fire area, for a period before evacuating the building, either by themselves or with assistance from emergency responders or others.” Delayed evacuation might be used for occupants with disabilities who are waiting for assistance to help them evacuate.

Evacuation of Individuals with Disabilities

Individuals with temporary or permanent disabilities, or other conditions that would require them to obtain assistance during an evacuation, require special consideration. These individuals who will require assistance from others may include persons confined to wheelchairs; persons dependent on crutches, canes, walkers and so on; persons recovering from surgery; pregnant women; persons with significant hearing or sight impairment; extremely overweight persons; elderly persons; children; persons with mental impairments; and persons who may have become incapacitated as a result of the emergency. A listing of regular building occupants’ names, locations within the building, telephone numbers, type of disability and the names of assigned assistance monitors should be provided ahead of time to building management with the understanding that such information is confidential and is to be used only to facilitate evacuation during emergency conditions. Tenants should be advised of their responsibility of keeping such information current. The Americans with Disabilities Act (ADA) definition of an area of rescue assistance is “an area, which has direct access to an exit, where people who are unable to use stairs may remain temporarily in safety to await further instructions or assistance during emergency evacuation.” Once the area of rescue assistance has been reached, assistance monitors and the individual with the disability have two options: (1) dispatch someone

to inform the building fire safety director, building management, security, engineers or—in the case of a fire emergency— the fire department and await their assistance; or (2) once all occupants have been evacuated from the involved floors and moved past, the assistance monitors may move the individual with the disability to another designated area of refuge inside or outside of the building.

Partial or Zoned Evacuation

Partial or zoned evacuation—also known as “staged evacuation”—is the strategy defined by the Handbook as one that “provides for immediate, general evacuation of the areas of the building nearest the fire incident. A partial evacuation may be appropriate when the building fire protection features assure that occupants away from the evacuation zone will be protected from the effects of the fire for a reasonable time. However, evacuation of additional zones may be necessary.” Once the occupants of the involved floors have been relocated, the decision whether to evacuate them further (using stairwells or elevators), or whether additional floors need to be evacuated, will be determined by building management, the fire safety director or the fire department. The fire department will usually set the policy for a partial or zoned evacuation. For example, in the city of New York, if a fire occurs in a high-rise building, the fire floor and the floors immediately above are the most critical areas for rapid evacuation. According to Charles Jennings in the J. Applied Fire Science, “In the event that a fire or smoke condition exists, occupants will evacuate at least two floors below the fire floor, re-enter the [building at that] floor and wait for instructions”; however, in Los Angeles, if a fire occurs in a high-rise building and it is serious enough to evacuate one floor, five floors are evacuated (commonly referred to as the “Rule of 5” or “5 Move 5”): the fire floor, two above it for safety and two below it (so that the second floor below the fire floor can be used as a staging area for fire department operations). Occupants on these five floors are relocated down five floors (thus, being relocated to at least three floors from the fire floor); if the fire is on or below a floor that is six floors from street level, the occupants usually will be evacuated from the building. The accompanying diagram (see page 26) shows the floors from which occupants are usually evacuated or relocated during a fire using the “Rule of 5” or “5 Move 5” zoned evacuation. Continued on page 26

July/August 2009 BOMA 25

Floors in a high-rise building from which occupants are evacuated or relocated during a fire using the “Rule of 5” or “5 Move 5” zoned evacuation strategy Two floors above fire floor Evacuated for safety Floor above fire floor Evacuated for safety

Fire Floor

Floor below fire floor Two floors below fire floor Fire Department Interior staging area Three floors below fire floor Safe Refuge area Four floors below fire floor Safe refuge area Five floors below fire floor Safe Refuge area

26 BOMA July/August 2009

Report on Emergency Preparedness

During a fire situation, it is usually advisable to evacuate downwards in a building. If the lower floors or the stairwells are destroyed or untenable because of heat or smoke, however, only then would it be necessary or more desirable to go to an upper floor or to the building’s roof. The problem with occupants relocating to a building’s roof, particularly in substantial numbers, is its limited space to accommodate people, and the difficulty of evacuating these people, should it be necessary. If the building has a helipad or heliport, as some modern highrise buildings do, there is not only the problem of obtaining a helicopter, but also of it landing safely to pick up occupants. During serious building fires, air turbulence and updrafts are caused by smoke and heated air.

Self-Evacuation

According to CTBUH, “Self-evacuation refers to occupants evacuating by themselves, before emergency responders have arrived on-site, using available means of evacuation, i.e. elevators and stairs.” It is critical that occupant evacuation strategies be clearly defined in a building’s emergency management plan and that all occupants know prior to an emergency occurring that such options are open to them.

About the Author: Geoff Craighead is vice president of High-Rise and Real Estate Security Services with Securitas Services USA. He can be reached at Geoff.Craig head@securitasinc.com.

Total Evacuation

Total evacuation involves the evacuation of all building occupants at once from a building to an outside area of refuge or safety. The size of high-rise buildings, the large number of people often contained in them and the limited accommodation of elevators and stairwells make it impractical to quickly evacuate all occupants at once. According to the Council on Tall Buildings and Urban Habitat (CTBUH), “Sometimes total evacuation can be carried out so that one section of the building after another is evacuated.” This strategy is sometimes known as phased evacuation. As stated in FacilitiesNet, “In emergencies [depending on the elevator system], elevators could be programmed to move those with the longest distance to go first. Occupants of lower floors—without disabilities—could choose to use the stairs. During a total evacuation, elevators would collect occupants from the highest floors first, shuttle them to the exit level and return for another load, working their way down from the top. Pressing a call button would register people waiting for pickup but would not alter the sequence, nor would [pressing] the buttons in the elevator car. People with disabilities would not need to be given priority since all occupants would be accommodated equally in this system.” Such an evacuation would take a considerable period of time, depending on the size of the building and its population at the time, as well as the nature of the event that caused the evacuation. Total building evacuation is usually only ordered by the fire department. In an extreme emergency, however, building management or the building fire safety director may decide to totally evacuate the building. Also, in some circumstances, all building occupants might choose to self-evacuate their facility.

This article is from High-Rise Security and Fire Life Safety, 3rd ed. by Geoff Craighead (Elsevier, Butterworth-Heinemann, 2009, www.elsevier.com). This book addresses office buildings, hotels, residential and apartment buildings and mixed-use facilities, and includes a CDROM containing a sample building emergency management plan. Portions of this article were extracted from “Strategies for Occupant Evacuation during Emergencies” by Daniel J. O’Connor, Daniel and Bert Cohen, (Fire Protection Handbook, 20th ed., National Fire Protection Association); Emergency Evacuation Elevator Systems Guideline, (Council on Tall Buildings and Urban Habitat); “News: NIST conference to address elevator use in emergencies” (FacilitiesNet, Nov. 2, 2007); “High-Rise Office Building Evacuation Planning: Human Factors versus ‘Cutting Edge’ Technologies,” (J. Applied Fire Science, Vol. 4(4), 1994-95, Baywood Publishing Co., Inc., 1995); and the ADA Accessibility Guidelines for Buildings and Facilities (ADAAG).

July/August 2009 BOMA 27

Thinking Like a Virus By Laura Horsley

lot can happen in a week. That was about the time it took in late April for news of the spread of H1N1 “Swine” Flu in Mexico to go from news blip to massive media focus as cases began showing up in the United States and other countries. In Mexico, soccer matches that would normally have drawn 80,000 spectators were played to empty stadiums. In Egypt, the government called for a mandatory slaughtering of the nation’s 300,000 pigs. And in the United States, schools were closed for cases both confirmed and suspected. Jennifer Nuzzo, an associate at the Center for Biosecurity, an organization established in 1997 to deal with civilian responses in times of epidemic or pandemic, explains that it’s often the unpredictability and swiftness of epidemics that cause the most fear and difficulty. “These things spread rapidly and it’s incredibly difficult to tell who is affected and who is not,” says Nuzzo. “It’s hard to draw boundaries around these outbreaks. We saw that, within a matter of weeks, it had spread around the globe.” The 1957 pandemic, which claimed the lives of 70,000 in the United States and two million worldwide, also spread rapidly. The first cases occurred in the U.S. in late August and, by the end of September, it had spread across the entire country. “And that was 1957—arguably a time of less travel,” emphasizes Nuzzo. “You can only imagine how much faster it spreads now.”

28 BOMA July/August 2009

Epidemic or Infodemic? Bend So You Don’t Break

The speed and unpredictability of the spread of viruses present enormous challenges to building owners and managers. Another challenge is adapting to an unexpected flu strain. Joe Donovan, senior vice president, Beacon Capital Partners, LLC and chair of BOMA International’s Preparedness Committee, explains how the industry had to shift focus quickly when this new strain popped up. “BOMA and its members have prepared plans for pandemic flu focused on the H5N1 strain coming from southeast Asia,” says Donovan. “This event, which occurred so close to the U.S., caught many off guard and required people to dust off old plans and adapt them for H1N1.” To help shift focus and prepare for the unexpected H1N1 strain, BOMA International’s Preparedness Committee immediately directed BOMA members to public health agencies for up-to-date information and guidance. Currently, the association is in the process of canvassing various member organizations and vendor teams to understand the lessons learned. Flexibility is clearly an essential but sometimes overlooked component to preparedness and contingency plans. The H1N1 media intensity died down considerably by mid-May when the strain revealed itself to be milder than first presumed (approximately 40,000 people die each year from seasonal flu; at press time, 121 people worldwide had died from H1N1, with 21 of those deaths in the United States). Many fear that H1N1 could reappear in the fall as a much more virulent strain. Having a plan that will bend so it won’t break might be the most important takeaway from this experience. “H1N1 was an exercise for a lot of people,” stresses Nuzzo. “Many organizations, both government and private, probably realized the limitations to certain elements of their plans.” Those limitations might also include not having a plan to react to a mild virus and possible pandemic. Despite the mildness of the strain, the World Health Organization (WHO) raised the H1N1 alert level to pandemic stage (level 6) in June because of growing worldwide cases. “Many people have a phased planning approach, where they do one thing in alert Phase 3 and something else in alert Phase 5, regardless of the actual severity or impact,” explains Nuzzo. “People are starting to realize the importance of having very flexible plans— ones that can be constantly reassessed as more information becomes available.”

Building on Lessons Learned

If H1N1 was an exercise in preparation for the United States and other countries, SARS was an exercise in preparation for Canada. The SARS outbreak of 2003 saw just over 8,000 cases and 774 deaths worldwide, with 443 probable cases in Canada (including 44 deaths). Toronto was particularly hard hit, to the

Report on Emergency Preparedness

Expect the Unexpected When You Peer Inside the Mind of a Flu Virus point where some buildings closed and citizens donning surgical masks were a common sight on city streets. Cheryl Gray, senior vice president, national real estate services, Bentall LP, managed properties in Toronto during the SARS outbreak. One evening the cleaning staff in one of her buildings showed up to work wearing surgical masks, heightening the anxiety level of her tenants and prompting her to rethink preparedness for the next time. “For those of us in Toronto, SARS was as close to a pandemic situation as we had seen,” recalls Gray. “SARS started the thinking process.” That thinking process led to Gray contacting other major managers in Canada and heading a task force that brought the industry together to work on pandemic preparedness instead of doing it ad hoc. The BOMA Canada task force set to work developing guidelines for pandemic preparedness, resulting in the publication of the Pandemic Planning Guide for Commercial Buildings by BOMA Canada in April 2007, a publication that built on the tools from BOMA/Toronto’s Pandemic Guide for Building Owners and Managers. The comprehensive guide addresses a broad range of issues, from establishing a business plan for absences to communicating with tenants and service providers to hygiene tips and workplace cleaning. The BOMA Canada Guide, which is free to the public, has become the standard in pandemic preparedness in Canada for commercial real estate; its reach has expanded well into other industries and across North America. Ralph Dunham, managing director with Marsh Canada, an insurance and risk management company, was brought into the task force as an external expert source to advise on best practices for pandemic preparation. “Many of my clients who aren’t in real estate still recommend it. It provides my clients with a good perspective on how to work with a landlord.” The guide was also included in the Canadian Emergency Management and Response Manual— A Guide to the Law and Practice, a publication produced by a major Canadian law firm. Among the challenges of putting together the guide was meeting expectations for the many stakeholders that property managers have to work with every day, whether it’s owners, tenants or local municipalities. The task force received feedback from tenants and suppliers. “We brought in focus groups of janitorial and security companies and spoke to them about what would be top issues in a pandemic scenario, and each task force member held tenant focus groups,” says Gray. “The intent of the guide was to create consistent standards that we can implement in response to a potential or real pandemic situation to effectively manage the properties under our supervision to the best of our ability. These standards help establish expectations of what will be and can be done by the property manager during a pandemic.”

Private/Public Partnering

Another valuable takeaway to come out of the H1N1 outbreak is the importance of partnering with local health authorities and other public organizations to communicate the latest information to coordinate messages and disseminate information. The Center for Biosecurity has been pushing these partnerships since it was founded and looks to elevate the role of the private sector. “Government resources are quite limited, so we have to rely on external organizations,” Nuzzo points out. “The reach of commercial real estate is enormous. Public health may have the great advice to offer but they struggle to get it out to the community.” The private sector also has the responsibility for ensuring that government strategies don’t cripple industry. Says Nuzzo, “It’s really important for the private sector to have input. We need to protect public health, but we also have to balance the overall impact on society.”

H1N1 Lessons Learned Just when we all thought we would get through the flu season without mention of the dreaded “P” word, the H1N1 virus hit. Here are a few essential takeaways...

Be Nimble. Most of us were expecting Avian flu but we got the Swine

version instead, which was closer to home and spread much more quickly. Make sure your preparedness plan is flexible.

Stay Alert. Consider H1N1 a test for something bigger to come. How well did you communicate the outbreak in the mere days it took to reach full panic mode? Have your communication, contingency and preparedness plans up to date and ready to go at a moment’s notice.

Partner to Protect. You have a plan; great, but do you have

the latest information? Partner with local health authorities and other public organizations to get the word out.

Essential Pandemic Preparedness Resources Public Resources World Health Organization, www.who.int/en

Centers for Disease Control (CDC) and Prevention, www.cdc.gov PandemicFlu.gov, www.pandemic flu.gov Center for Biosecurity, www.upmc-biosecurity.org Industry Resources Pandemic Flu Resources site (BOMA International), www.boma.org Pandemic Planning Guide for Commercial Buildings (BOMA Canada), www.bomacanada-pandemic.ca Pandemic Planning Toolkit (BOMA Canada), www.bomacanada-pandemic.ca Pandemic Influenza: Are You Prepared? (BOMA International), http://shop.boma.org The Property Professional’s Guide to Emergency Preparedness (BOMA International), http://shop.boma.org Image of H1N1 virus courtesy of the CDC

July/August 2009 BOMA 29

Green Leases: A Study in Symbiosis By Stephanie J. Oppenheimer, APR Every successful campaign needs a good hook, and although “carbon footprint” and “doing the right thing” may sound like excellent reasons to go green, the reality is fairly straightforward: Campaigns that demonstrate that going green will save money—and will be a team effort with shared responsibilities and consequences—tend to be far more effective than even the most noble crusade that focuses solely on social responsibility. It’s a realization that is playing out in leasing offices everywhere, as an increasing number of commercial real estate owners and tenants are looking to green their leases in ways that will reduce costs and provide flexibility and fairness.

Focus on Green Benefits Steve Teitelbaum, a partner with Jones Day and the author of BOMA International’s Guide to Writing a Commercial Real Estate Lease, Including Green Lease Language, agrees that advancing the ideals of sustainability will work best if people focus on more immediate benefits rather than solely on doing good. “Lower carbon footprints is a conceptual issue of interest to relatively few, and most Americans think carbon is primarily related to auto emissions,” Teitelbaum says. “Higher employee productivity is definitely part of the conversation, but it alone more strongly benefits tenants, and most landlords won’t spend money to ‘green’ their buildings for the sole benefit of tenants. Higher property values are certainly of interest to landlords, but if greening requires capital

30 BOMA July/August 2009

outlay, and capital is in short supply, it’s a harder sell. “We have different incentives driving different actors,” he adds, “and those differences make it difficult to agree on a common course of action. But cost savings is a green blanket in which everyone can wrap themselves for mutual benefit.” Not surprisingly, improving energy efficiency is one of the most obvious ways to green a building. Addressing capital expenditures that result in cost savings as part of multi-tenant, triple-net leases is one of the best places to start, as this lease structure presents one of the biggest barriers to improved energy efficiency. (In most leases, landlords have no incentive to make upgrades to improve energy efficiency because tenants pay for utilities. Conversely, individual tenants have no incentive to conserve energy if they have little control over the building’s overall usage and pay a pro-rata share of the utility bill.) Dual-incentive green leases, however, pass through to the tenant the cost of capital upgrades that directly affect a tenant’s operating expenses, but also reduce their expenses when lower utility bills result. “By bringing the discussion of energy efficiency to the forefront, and incorporating a building’s energy performance into the leasing process, you add two very important things— transparency and accountability,” says Mychele Lord, founder of LORD Green Real Estate Strategies, Inc. “Greening a lease is a continual, collaborative approach … in essence, it’s a process of

sharing incentives, costs and rewards as partners.” That kind of collaborative approach is exactly how Glenborough, LLC, a company with $2.5 billion worth of assets primarily in California, Colorado and Washington, D.C.—all epicenters of the green movement—went about greening its standard lease document. Everyone, from brokers to building engineers, were part of the review team charged with revising the lease, explains Michael Steele, executive vice president and CEO of Glenborough, so that every proposed change could be considered from a building operations and engineering standpoint as well as from a negotiations and tenant standpoint. “If there was one overriding guide to our process,” Steele says, “it was that we wanted our lease to allow us and our tenants enough flexibility to comply with local, state or federal standards without placing tenants and landlords at odds with each other, or disadvantaging one tenant over another. We also strove to be very specific in our language; we didn’t think it was practical to require a tenant to adopt or abide by undefined ‘landlord sustainability practices’ … that’s too amorphous. We’re really striving to ‘go green’ in a practical manner that doesn’t hurt our businesses or create a situation where one tenant is penalized because of the way another tenant has to operate.”

Provide Clear Communication Of course, the best green lease in the world won’t get much buy-in if tenants or even landlords aren’t aware of the

“Cost savings is a green blanket in which everyone can wrap themselves for mutual benefit.” Steve Teitelbaum, Partner, Jones Day

buildings is the Energy Independence and Security Act (EISA), a federal mandate that states all federal agencies occupy space only in ENERGY STARdesignated buildings beginning in 2010, with some exceptions for renewals or for agencies utilizing minimal space. It is expected that more state and local governments will follow suit. Many municipal and county governments have also begun to require that new or heavily renovated buildings achieve certain green thresholds, with some states poised to establish similar requirements. And while economic conditions have slowed some companies from pursuing more capital-intensive green initiatives, and have slowed development of new buildings, interest in green buildings remains high, particularly among those in municipalities, counties and states that are offering incentives through tax abatements, tax credits or faster turnaround on permit applications.

Emphasize Efficiency Goals

About the Author: Stephanie J. Oppenheimer, APR, formerly the assistant vice president of communications for BOMA International, is principal of Skylite Communications, a freelance writing and editing company based in Falls Church, Va.

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Many tenants are also incorporating sustainability into their search and selection criteria with demand so persistent that the U.S. Green Building Council (USGBC) is developing, at press time, a process manual that will teach tenants how to find, negotiate for and build space in green buildings. Anecdotally, Nick Katz, a broker with GVA Advantis, who almost exclusively pitches green leases and works with commercial properties to identify low- and no-cost efficiency improvements, has seen a huge uptick of interest among tenants, with 80 to 90 percent of decision-makers wanting to hear more about green opportunities. “People may not be jumping for LEED certifications as they were before the recession hit, but for an industry as obsessed with the bottom line as commercial real estate,

it only makes sense that landlords and tenants are seeking higher efficiencies and lower costs through green leases,” Katz says. “We’ve noticed a throttling back from LEED registrations,” Steele agrees. “When owners and tenants are cash-strapped, everyone is cautious about where the dollars are going. But as the economy recovers, the interest will come back. In the meantime, we’re focusing on properties where LEED is an important aspect of a tenant’s occupancy, and we’re very cognizant that local code in many of our markets will impose sustainability.” “A last piece of the puzzle,” Lord points out, “is that the cost of retrofitting a building is dropping. Vendors are stocking more green products; price premiums are disappearing; and innovations, such as plumbing and lighting fixtures, are advancing. As more manufacturers focus on making green the norm, technology has improved, and it’s become much less expensive to retrofit. It’s increasingly difficult to find excuses for not greening a building.” “The bottom line,” Katz explains, “is that whether one views green leases from an environmental standpoint or an economic standpoint, they’re inextricably tied. And when green leases are done correctly, they’re mutually beneficial to both parties. By going green, you get to keep more green. It’s really that simple.”

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changes or fully understand how the new lease language affects both parties, and it’s here that the all-important education phase comes in. “There are a lot of misconceptions about green leases and buildings,” says Teitelbaum, “and now is the time to sort it all out. You can have a green-certified building that isn’t particularly efficient, and you can have an old building with incredible green practices. Being green often depends more on operations than on construction, and the lease is intended to help everyone understand what’s possible. The building was developed as a green building or it wasn’t, so do the best you can with what you have by clearly differentiating tenant and landlord responsibilities.” A healthy dose of realistic expectations is also a crucial part of the process, Teitelbaum says. “Remember that people don’t like being told what they shall and shall not do, even if it’s good for them. But if you equally mandate tenant and landlord responsibilities, it becomes an easier conversation. Certainly provide incentives via lower operating expenses, but recognize that penalizing either landlords or tenants for not following through will, in reality, be hard to do. The honest truth is that tenants are rarely penalized or evicted for non-monetary defaults. Think of the BOMA Green Lease Guide as a menu of options: It doesn’t mean that people will adopt all of it, but it’s a start.” Negotiations are also likely to go more smoothly, Steele advises, if landlords first solicit input from their more active and concerned tenants. “We’re in the real estate business, and many of us think of our tenants as being fairly savvy in our business … but they’re not,” says Steele. “So before you set about revising your lease or setting sustainability policy, find out what’s going on in your tenant’s business, how such decisions impact them, what they might be doing and what will work for them. It’s a big help to have that kind of intelligence up front so that the path you choose to green your building or lease will be collaborative.” And finally, recognize that greening your lease may soon be unavoidable. Leading the charge toward greener

tional BOMA Interna Suite 800 Street, NW 101 15th DC 20005 Washington g www.boma.or

For more information on green leases or to order BOMA’s Guide to Writing a Commercial Real Estate Lease, Including Green Lease Language, visit http://shop.boma.org.

July/August 2009 BOMA 31

2008-2009 Regional TOBY Award Winners/Nominees Corporate Facility

Government Building

Centre at HIBC Northridge, Calif. Managed by: CB Richard Ellis Owned by: Northridge Business Center, LLC

General Post Office and U.S. Courthouse Brooklyn, N.Y. Managed and Owned by: General Services Administration (GSA)

Citi Campus—Jacksonville Jacksonville, Fla. Managed by: Grubb & Ellis Management Services, Inc. Owned by: Citicorp Credit Services, Inc.

Ministry of the Environment Headquarters Toronto, Ontario Managed by: SNC LAVALIN ProFac Inc. Owned by: Ontario Government—Ministry of Energy and Infrastructure; Represented by: Ontario Realty Corp.

Fidelity Investments Covington, Ky. Managed by: EMCOR Facilities Services Owned by: Fidelity Investments GMAC Fort Washington, Pa. Managed by: GMAC/Liberty Property Trust Owned by: Liberty Property Trust Hewitt Associates Buildings 3 and 7 The Woodlands, Texas Managed by: Jones Lang LaSalle Owned by: Warmack Investments

Earth Award One Boston Place Boston, Mass. Managed by: CB Richard Ellis Owned by: TIAA-CREF, SITQ Immobilier 161 North Clark Chicago, Ill. Managed and Owned by: Tishman Speyer 1180 Peachtree Atlanta, Ga. Managed by: Hines Owned by: an affiliate of the General Electric Pension Trust Heifer International Little Rock, Ark. Managed by: Heifer International— Facilities Management Team Owned by: Heifer International

Ralph H. Metcalfe Federal Building Chicago, Ill. Managed and Owned by: General Services Administration Sandra Day O’Connor United States Courthouse Phoenix, Ariz. Managed and Owned by: U.S. General Services Administration United States Courthouse— Seattle Seattle, Wash. Managed by and Owned by: General Services Administration

Arroyo North Phase I Las Vegas, Nev. Managed and Owned by: EJM Development Co. Crosstown North Business Center Brooklyn Park, Minn. Managed and Owned by: Duke Realty Corporation Gateway Lakes Business Park St. Petersburg, Fla. Managed by: CB Richard Ellis Owned by: The Realty Associates Fund VII, LP Kenderry/Admiral Business Park Mississauga, Ontario Managed by: GWL Realty Advisors Inc. Owned by: Canada Life Assurance Company Northeast Business Park Robbinsville, N.J. Managed by: Matrix Realty, Inc. Owned by: Matrix/PPF Industrial, LLC

Historical Building

Medical Office Building

222 North LaSalle Chicago, Ill. Managed by: Tishman Speyer Owned by: 222 NLS Properties LLC

Arnold Pavilion Seattle, Wash. Managed by: CB Richard Ellis Owned by: 1221 Madison Street Owners Association

375 Park Avenue New York, N.Y. Managed by: RFR Realty LLC Owned by: 375 Park Avenue LP Exchange Building Seattle, Wash. Managed by: Ashforth Pacific, LLC Owned by: Exchange Building VAF, LLC Kearns Building Salt Lake City, Utah Managed by: Hines Owned by: Kearns Building Joint Venture Toronto College Park Toronto, Ontario Managed by: GWL Realty Advisors Owned by: Toronto College Park Ltd. (part of Great-West Life group of companies)

32 BOMA July/August 2009

Industrial Office Park

Celebration Health Medical Plaza Celebration, Fla. Managed by: Lillibridge Healthcare Services, Inc. Owned by: Seavest Inc. Centennial Medical Pavilion I Frisco, Texas Managed by: Paramount Real Estate Owned by: HC REIT Kilroy Centre Del Mar, Building 5 San Diego, Calif. Managed and Owned by: Kilroy Realty Corporation

Renovated Building 100 Park Avenue New York, N.Y. Managed by: SL Green Realty Corp. Owned by: SL Green Realty Corp. and Prudential Real Estate Investors 115 South LaSalle/ 111 West Monroe— Harris Bank Building Chicago, Ill. Managed by: Hines Owned by: NOP HB Buildng, LLC 550 Biltmore Coral Gables, Fla. Managed by: Taylor & Mathis of Florida, LLC Owned by: KPERS Realty Holdings #39, Inc. AT&T Center, Los Angeles Los Angeles, Calif. Managed and Owned by: LBA Realty The Henry M. Jackson Federal Building Seattle, Wash. Managed and Owned by: General Services Administration Las Colinas Towers Irving, Texas Managed and Owned by: Parmenter Realty Partners Metropoint 600 Building St. Louis Park, Minn. Managed by: Cushman & Wakefield of Minnesota, Inc. Owned by: BPG Properties, Ltd.

Suburban Office Park, Low-Rise Baypoint Commerce Center St. Petersburg, Fla. Managed by: Taylor & Mathis of Florida, LLP Owned by: KP Holdings, LLC et al Bridgepoint Square Austin, Texas Managed by: REIT Management & Research, LLC Owned by: Bridgepoint Property Trust Carlson Center Minnetonka, Minn. Managed and Owned by: Carlson Real Estate Company

Under 100,000 Sq Ft

250,000 – 499,999 Sq Ft

One Crescent Drive—The Navy Yard Corporate Center Philadelphia, Pa. Managed by: Liberty Property Trust Owned by: L/S One Crescent Drive, LP

303 West Madison Chicago, Ill. Managed by: CB Richard Ellis Owned by: McMorgan & Company

Simcoe Place Toronto, Ontario Managed by: The Cadillac Fairview Corporation Limited Owned by: Simcoe Place Leaseholds Limited

601 Tower Minnetonka, Minn. Managed by: CB Richard Ellis Owned by: TIAA-CREF

The Urban Towers Irving, Texas Managed by: CB Richard Ellis Owned by: CBREI Strategic Partners

1700 K Street Washington, D.C. Managed by: Vornado/Charles E. Smith Owned by: 1700 K Street Associates, LLC

U.S. Bancorp Center Minneapolis, Minn. Managed by: Piedmont Office Management, LLC Owned by: Piedmont Office Realty Trust

404 Miami, Fla. Managed by: Taylor & Mathis Owned by: Dominion Partners, LP

Hines Warner Center Woodland Hills, Calif. Managed by: Hines Interests LP Owned by: Hines Warner Center LP Meadowvale Corporate Centre Mississauga, Ontario Managed by: Bentall LP Owned by: 2725321 Canada Inc. Westboro Executive Park Westborough, Mass. Managed by: Jones Lang LaSalle Americas, Inc. Owned by: KBS Realty Advisors

Suburban Office Park, Mid-Rise Corporate Center Two and Three Tampa, Fla. Managed by: Carter & Associates Asset Management, LLC Owned by: StratReal Asset Management USA

Journal Center II Albuquerque, N.M. Managed by: Opus West Management Corp. Owned by: Opus Real Estate National VIII, LP King James Place Toronto, Ontario Managed and Owned by: Woodcliffe Corporation Pine Meadow Corporate Center II Libertyville, Ill. Managed by: Keystone Property Group Owned by: 950 Technology Way, LLC West 101 Gateway Phoenix, Ariz. Managed by: Opus West Management Corporation Owned by: Opus Real Estate AZ VII WG, LLC

100,000 – 249,999 Sq Ft Two Ballston Plaza Arlington, Va. Managed and Owned by: Brookfield Properties

Cottonwood Corporate Center Salt Lake City, Utah Managed by: Hines GS Properties Owned by: NOP Cottonwood Holdings, LLC

200 South Los Robles Pasadena, Calif. Managed by: PM Realty Group Owned by: American Realty Advisors

Mid America Plaza Oakbrook Terrace, Ill. Managed by: CB Richard Ellis Owned by: TR Mid America Plaza Corp.

Brixham Green One Charlotte, N.C. Managed by: Bissell Companies Owned by: Brixham Green One, LLC

Pearson Corporate Centre Etobicoke, Ontario Managed by: Bentall LP Owned by: Westpen Properties Ltd.

Edina Corporate Center Edina, Minn. Managed by: Opus Northwest Management, LLC Owned by: Realty Associates Iowa Corporation

Stony Brook Office Park Waltham, Mass. Managed by: CB Richard Ellis Owned by: Illinois State Board of Investors The West End St. Louis Park, Minn. Managed and Owned by: Duke Realty Corporation

Highland Oaks II Downers Grove, Ill. Managed by: CB Richard Ellis, Inc. Owned by: Realty Associates Fund VII, LLC Whole Foods Market World Headquarters Building Austin, Texas Managed by: Schlosser Development Corp. Owned by: LSA/WF Project Ltd.

LincolnPark Dallas, Texas Managed by: Lincoln Property Company Owned by: Prudential Real Estate Investors Platinum Tower Atlanta, Ga. Managed by: CB Richard Ellis, Inc. Owned by: CB Richard Ellis Investors—Strategic Partners Symetra Financial Center Bellevue, Wash. Managed by: CB Richard Ellis Owned by: W2007 Seattle Office Symetra Financial Center Realty LLC Xerox Centre Santa Ana, Calif. Managed by: PM Realty Group Owned by: 1851 E. First Street Investors, LLC

Over 1 Million Sq Ft One Financial Center Boston, Mass. Managed by: Jones Lang LaSalle Owned by: Dewey Square Tower Associates LLC Fifth Street Towers Minneapolis, Minn. Managed by: Carter Owned by: Strategic Real Estate Advisors Heritage Plaza Houston, Texas Managed by: Heritage Plaza Property Services, LLC Owned by: Goddard Investment Group

500,000 – 1 Million Sq Ft

Hyatt Center Chicago, Ill. Managed by: Jones Lang LaSalle (71 S. Wacker Management LLC) Owned by: FrankMon, LLC (Pritzker Realty Group)

625 Broadway Albany, N.Y. Managed by: Owens, Renz, & Lee Co., Inc. Owned by: State of New York

Northpark Town Center Atlanta, Ga. Managed by: CB Richard Ellis Owned by: AEW Capital Management

Bank of America Tower at International Place Miami, Fla. Managed by: Wealth Capital Management Owned by: Blue Capital US East Coast Properties, LP

The Water Garden Santa Monica, Calif. Managed by: CB Richard Ellis Owned by: Water Garden Company LLC & Water Garden Realty Holding LLC

Continental Towers Rolling Meadows, Ill. Managed by: Prime Realty Services, Inc. Owned by: Prime Group Realty Trust MGM Tower Los Angeles, Calif. Managed by: JMB Real Estate Services, Inc. Owned by: Constellation Place, LLC

Official Sponsor of BOMA International’s TOBY Awards

July/August 2009 BOMA 33

SECTOR WATCH

Stepping Up Pest Management in a Down Economy By Ron Harrison, Ph.D. FOCUSING ON PEST CONTROL in the midst of an economic downturn may not be easy, but it’s a top priority for many property managers, according to a recent survey of more than 300 BOMA International members conducted by BOMA and Orkin. Seventy (70) percent of surveyed BOMA members said pest control continues to be “very important” to their overall building management program. A combined 90 percent of respondents said they have not scaled down their pest management programs despite the strained economic climate. The survey also revealed that BOMA members want their pest management programs to be green. Nearly 70 percent of respondents went so far as to say having an environmentally conscious program is “extremely important.” It’s encouraging that the property management industry remains focused on one of the most important aspects of building management. In today’s economic climate, excellence in operations and management is more important than ever; no property can afford to be associated with pests and the unwanted attention they bring. Follow these easy-to-implement tips to make pest management a priority and keep your budget in check:

Train your employees on these basic sanitation and facility maintenance tips for pest prevention success:

Get staff on board with your program.

Involve tenants in the process.

Between visits from your pest management professional, rely on your employees to reinforce pest management best practices. An effective program depends heavily on staff cooperation; educate employees on the importance of these strategies and the role they play in maintaining the program’s success. Rigorous sanitation and facility maintenance efforts are the most important components of effective Integrated Pest Management, and they require your staff to play an active role. Good sanitation helps remove pests’ basic needs and hiding places, while facility maintenance helps keep pests outside where they belong.

34 BOMA July/August 2009

Keep all doors and windows closed, and install door strips or air curtains in frequently used entryways. Consider installing vestibules to main entrances to provide another hindrance to pests’ access. Seal unnecessary openings in the structure with weather-resistant sealant. Mice can fit through holes as small as a dime, and rats only need an opening the size of a quarter to access a building.

Avoiding situations that harbor pests is a first step in pest management. Cracks in a building’s structure (above) and exposed or improperly contained trash are invitations to pests.

Trim back vegetation from the side of your building to remove any pest harborage areas. All shrubs and plantings should be at least two feet away from the building’s perimeter to hinder pest access.

• Slightly more than half (52 percent) are taking steps to educate their tenants on their properties’ pest management programs and the steps they can take to support them.

Clean up food and drink spills immediately in lobbies, patios and other common areas around your property. Thoroughly sweep and mop floors, and use a vacuum to remove the dust and debris that can collect in cracks and crevices. Monitor for any moisture leaks from appliances or HVAC units. Dispose of trash in the proper receptacles and keep all trash containers tightly closed when not in use.

Tenants can play a major role in an effective pest management program as well. The survey findings show that property managers know how important a pest-free environment is to office tenants, and are working to make their tenants part of a greener pest management solution: • Nearly half (48 percent) of respondents rated “tenant satisfaction” as their top priority when it comes to pest control. • A majority of respondents (59 percent) said having a green pest management program was “extremely important” to their tenants.

• Seventy (70) percent of respondents rated their tenants’ current knowledge of pest management and support of their program as only “fair.” In addition to helping you keep the building clean, your tenants have a responsibility to alert you to problems that could attract pests. Let tenants know you rely on them to report any pest sightings, pest-friendly conditions and maintenance concerns. Encourage tenants to close doors and windows when not in use. Ask them to alert you to cracks in the façade of your building or any lighting, HVAC or landscaping issues that might make your building appealing to pests. It is possible to step up your pest management program in a down economy with the help of your staff and tenants; educating them on their role in the pest management efforts is essential. The stronger your relationships, the stronger your pest defenses.

About the Author: Ron Harrison, Entomologist, Ph.D., is the director of technical services for Orkin, Inc. He has presented at various industry conferences, including BOMA International’s 2008 Office Building Show. He can be reached at ronharrison@rollins.com. For further resources, visit www.orkincommercial.com.

REALIZE THE POTENTIAL OF $160 BILLION* IN ENERGY SAVINGS. USGBC.ORG / LEED

COME SEE US AT THE BOMA INTERNATIONAL CONFERENCE BOOTH #1232 * Potential energy efficiency savings of building sector by 2030. McKinsey & Company (2007). Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost?

trends tracker

Economy’s Role in Building Security By J. Michael Coleman OUR CURRENT TENSE ECONOMIC ENVIRONMENT increases the level of stress among many property managers who are facing reduced tenant populations and increasing numbers of current customers who struggle to pay rent. With tenant populations down and write-offs increasingly common, building owners are turning to property managers for recessionary relief. What can property managers do to ensure the safety and security of their tenant population while keeping an eye on the bottom line? As vice president of Commercial Real Estate for AlliedBarton Security Services, I work closely with many property managers across the country and have lived through many economic cycles. Everyone’s contribution is crucial in ensuring that our commercial real estate community thrives as we face volatile economic times. It’s no surprise that a weakened economy translates to more misdeeds and crimes perpetrated by both internal and external forces. Keeping companies safe and secure during volatile economic times requires the partnership of property managers, law enforcement and security professionals. Downsizings and restructurings, and the constant threat of being terminated, can result in employees taking work equipment home, and can even escalate to workplace violence.

Collaborate on Strategy Property managers seeking to make prudent economic decisions for their buildings are well served to reach out to their vendor partners to find creative solutions. Sharing security patrol and other services across multiple properties is an example of a revised deployment model based on lower building populations. Now is the time to bring all commercial vendors together— from security services to janitorial services to engineering to plantscaping—in an effort to look for efficiencies that may cross over from one vendor to another. Don’t wait for the owner of the building to demand cost-cuts. Reevaluate pay scales for building employees as the economic market has depressed pay scales in some markets. Look for

36 BOMA July/August 2009

effective energy management through staff monitoring and observing efficiency initiatives. Most properties today have automatic sensor lighting systems, but if your property has manual systems, remind the security officer to turn off the lights when he leaves the property. Whether the economy is weak or strong, there is peace of mind for companies who invest in securing their premises. Tenants, employees and visitors are comforted by seeing security personnel, along with integrated monitoring, on the job. Keeping companies safe and secure during volatile economic times requires a partnership between contract security and the company’s managerial, human resources and administrative personnel. Security officers should be well-trained and prepared to handle daily security measures, as well as unexpected challenges. Employers need to consider potential threats and take balanced measures to prevent and alleviate them.

Stay Vigilant While some companies may consider cutting back on security as a quick way to alleviate bottom line economic pressures, most conclude that this is actually the worst time to cut back on security programs. A lack of security can have a sizeable and lasting effect on an organization’s morale, efficiency and reputation. Companies must also be prepared for potential inappropriate action by disgruntled or former employees. This is where security can help minimize the possibility of retaliation and reassure other employees. How can a company ensure that it is doing everything it can to prevent economic-related stresses from impacting its workplace? Many of my customers are seeing the value of keeping security a priority. We proactively work with our customers to review potential weak spots and enhance security processes and practices as needed. We are continually looking at our master security plans and making adjustments as the situations warrant. Get creative and think of ways to effectively lower costs temporarily, such as sharing services with neighboring properties. For example, your patrol officer on the overnight shift may be able to expand his patrol to include additional neighboring properties. Quality security providers offer ongoing training to their officers and managers so that they are well-equipped for everchanging market and customer needs. The current state of the economy and the pressure it places in the workplace demand that a vigilant security team is in place. Preventing the worst from happening is far preferable than picking up the pieces.

About the Author: J. Michael Coleman is vice president of marketing for commercial real estate for AlliedBarton Security Services in Philadelphia. He also serves as chair of the Building Owners and Managers Association (BOMA) International’s National Associate Member (NAM) Committee and a member of the Preparedness SIG. He has over 28 years of experience in the security service industry. For more information, Coleman can be reached at mike.coleman@alliedbarton.com.

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Green Scene

Marketing a High-Performance Building By Jack Davis

HIGH-PERFORMANCE, GREEN BUILDINGS are a bit of a revolution. They change how we define quality in real estate, re-work old financial assumptions and alter how we all do our jobs. Like any revolution, there will be winners and losers. How can you stay on top of it all? As with any market shift, how you position, communicate and sell your product will need to evolve. Tenants may not understand what a green building really is or why it is better. The burden of proof is in your hands.

Take a Stance

What unique value does your building bring? How does it measure up in your market? Spend time comparing your building against others. Find out what each has to offer. Look for the “sweet spot” that you can claim as your own and defend against imitators. Will you compete on price, green attributes, convenient location and architectural amenities—and can you win that argument? This is often the hardest task in marketing, but if you can stand out against your competitors on one or two key features, other pieces start to fall into place. Fortunately, this revolution is a great opportunity to enhance your competitive position, with new values of efficiency, health, productivity and stewardship taking center stage. But be creative. Market the people who run the building; their expertise correlates to the tenant experience, costs and comfort—defining how “green” the building really is. Plus, it’s a difficult distinction for your competitors to co-opt. But don’t go overboard—first and foremost, your building needs to be a place where people want to spend their time. This is a central reason why applicants for the ENERGY STAR (the U.S. EPA certification for top energy-efficient buildings) must meet indoor air quality, illumination and thermal comfort

38 BOMA July/August 2009

standards. If a high-performance building sits empty and dark, the “high-performance” label is meaningless.

Track Your Accomplishments

There’s plenty of talk about sustainability in the marketplace right now, but tenants may not fully understand the benefits to them. Be sure you have the evidence to support your claims. Define what it means for a building to be highperforming, efficient or green in terms of costs or consumption per square foot, ENERGY STAR performance ratings and other metrics. And track these over time to show trends. Learn to translate these accomplishments into clear benefits for tenants. You may have efficient lighting, but why does that matter? They’ll want to know how that will contribute to greater employee comfort (through natural light and reduced glare) and lower operating expenses (through reduced electricity use).

Essential Reading BetterBricks fact sheet— Marketing a High Performance Portfolio: www.betterbricks.com/graphics/ assets/documents/BB_Market ingHighPerfBuildings.pdf ENERGY STAR for Buildings: www.energystar.gov/buildings The Sins of Greenwashing: http://sinsofgreenwashing.org/ GreenBiz.com Marketing & Communications resources: www.greenbiz.com/browse/ marketing-communications

For additional credibility, apply for certifications and awards from ENERGY STAR, LEED, Green Globes, BOMA and others. Quotes and anecdotes from existing tenants are also good evidence to gather and share.

Tell Your Story

With your core argument defined and evidence to back it up, build messages around those concepts. Create three or four succinct, clear talking points. Integrate them consistently throughout broker communications, tenant tours, the building website, marketing collateral, property listings, press releases and general conversations. Remember, less is more. People only remember a fraction of the marketing messages that are thrown at them each day; simplicity can make yours memorable. And avoid clichés—you don’t have to say “we’re the LEEDer” or print all your materials in the color green to make your point. Tell your story, not the story of polar bears on melting glaciers. If your story isn’t complete yet, it’s okay to say you’re working on it. Highperformance buildings are a marathon, not a sprint. Avoid greenwashing—overstating your accomplishments—by conveying that you haven’t done it all yet, but you are getting there. Lastly, because this is a revolution, you need to re-frame the argument. Question the standard assumptions about what attracts tenants. In the past, a prospective tenant would ask, “What are the costs if I occupy your building?” Now, with energy price volatility, climate change and corporate reputations built around sustainability, the question you should answer is, “What are the risks if I don’t occupy your building?”

About the Author: Jack Davis is the office real estate market manager for BetterBricks, the commercial building initiative of the Northwest Energy Efficiency Alliance. He can be reached at JDavis@nwalliance.org.

Photo Credit: Long Beach Area Convention & Visitors Bureau

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July/August 2009 BOMA 39 The Every Building Show is produced by BOMA International and Buildings magazine.

Eye on Education

Premier Education Prepares Up and Coming Leaders to Take the Wheel “Emerging Leaders” Puts Property Professionals on the Executive Fast Track By Lindsay Tiffany

40 BOMA July/August 2009

CONVENTIONAL WISDOM has it that “the only safe ship in a storm is leadership.” Considering the storm the industry is currently weathering, that saying could not be truer. A down economy means commercial real estate professionals are asked to face new challenges daily—finding creative ways to attract tenants, creating efficiencies and managing teams more effectively—all while budgets and time are stretched. That, coupled with the fact that baby-boomers will start retiring in large numbers in just a few years, means that the industry is in serious need of leaders with proven strategic thinking and management skills, who will be prepared to steer the ship in coming years. The Emerging Leaders in Real Estate program, developed by BOMA International and The Harvard University Graduate School of Design in 2005, is a unique professional education program designed to address the issues and obstacles the next generation of industry leaders will encounter. This past March, 24 commercial real estate professionals who are—or want to be—on the executive track met at Harvard for the intensive three-day course. The curriculum covers strategic planning, investment vehicles, business ethics, due diligence, negotiations and conflict resolution, assessing real estate performance and strategic leadership. The instructors are a mix of veteran real estate practitioners and prominent Ivy League thinkers, giving the program a balance of theory and real-world applications. The mixed theoretical and pragmatic approach was particularly valuable for many students. “It was clear that this program was vetted by very bright people,” noted Timothy Casey, CPA, vice president and general manager, Jones Lang LaSalle. “We tend to get bogged down in the minutiae of our daily operations. It was very productive to be put in another environment and think both on strategic and tactical levels.” Prior to arriving in Cambridge, Mass., students were asked to assess several case studies outlining problems and challenges real estate companies have faced. Upon arrival, students were placed in small groups where they exchanged perspectives, possible solutions and outcomes. The ability to delve right in to the meat of the coursework made the time on campus that much more valuable.

“Everyone was there to learn. Because of the case studies, we were able to jump right into the program,” remarked Laura Stangle, RPA, general manager, Lincoln Property Company. The peer-networking added a layer of richness to the program experience. “It was a great mix of people. There were third-party managers, owners and GSA [U.S. General Services Administration] folks,” said Casey. “We were able to share war stories and hear different perspectives on the issues.” Lisa Ofenloch, RPA, CCIM, director, Public Buildings Service, U.S. General Services Administration, agreed: “It was great to connect with privatesector folks that we do business with. Hearing the position they are in and understanding the financial challenges they are facing helps us prepare for the future and position ourselves.” Participants were also attracted to the rare opportunity to interact with industry authorities and professors at the top of their fields. “The Harvard name packs a punch and the instructors certainly lived up to their reputation,” commented Casey. “These are people you’d otherwise not have access to except as a student at the Harvard Business School.” Judy Purviance-Anderson, RPA, general manager, Cushman & Wakefield of Colorado, found the diversity of instructors is what set the program apart. “In other industry education courses, the instructors are your peers in the field. These instructors were different—as a result, the program felt very scholastic and approached the issues from a viewpoint that takes the big picture into account.” The faculty last spring included Joseph L. Badaracco, Jr., the John Shad professor of business ethics at Harvard Business School; Robert Bordone, the Thaddeus R. Beal lecturer on law at Harvard Law School and deputy director of the Harvard Negotiation Research Project; John Macomber, chairman of the George B. H. Macomber Company and lecturer at the Harvard Business School; Kurt Padavano, chief operating officer of Advance Realty Group; Ray Torto, principal and chief strategist of Torto Wheaton Research; John Vogel, associate faculty director of the James M. Allwin Initiative for Corporate Citizenship at the Tuck School of Business at Dartmouth; and Gloria Schuck, lecturer in the Department of Urban Studies and Planning at the MIT Center for Real Estate. Students agreed that one of the most powerful and thoughtprovoking courses of the program was John Macomber’s session on strategic leadership, in which he presented a case study that required students to make difficult choices. “Macomber’s case study was an excellent way of tying together everything the program entailed. He emphasized how entwined ethics and leadership are, and the importance of doing the right thing in a tough business situation. It was a powerful exercise and full of takeaways,” said Ofenloch. The economy is something that was continuously addressed, both directly and indirectly, throughout the course. Esteemed economist Ray Torto briefed the group in an in-depth session on how economic conditions are impacting commercial real estate and what the future will mean for leasing, acquisitions and other key indicators. Ofenloch commented: “Obviously, the economy is something on everyone’s mind, particularly when you have experts in the room with you, and it was something that was woven into almost every session. The program was excellent in terms of providing current and applicable information about where the market is going and how it will impact our businesses.”

“In other industry education courses, the instructors are your peers in the field. These instructors were different—as a result, the program felt very scholastic and approached the issues from a viewpoint that takes the big picture into account.” —Judy Purviance-Anderson, RPA, General Manager, Cushman & Wakefield of Colorado “Everyone was there to learn. Because of the case studies, we were able to jump right into the program.” —Laura Stangle, RPA, General Manager, Lincoln Property Company

“We were able to share war stories and hear different perspectives on the issues … It was great to connect with private-sector folks that we do business with.” —Lisa Ofenloch, RPA, CCIM, Director, Public Buildings Service, U.S. General Services Administration

“We tend to get bogged down in the minutiae of our daily operations. It was very productive to be put in another environment and think both on strategic and tactical levels.” —Timothy Casey, CPA, Vice President and General Manager, Jones Lang LaSalle

In the end, it was the program’s unique curriculum, esteemed instructors and diverse participants that made the program a homerun. Stangle summarized the experience: “The program offered so many different things—top-rate professors, access to industry experts, challenging discussions, excellent networking, the prestige of Harvard. There is no questioning the value of this program. I’d take it a second time if I could.”

The next Emerging Leaders in Real Estate program takes place Spring 2010. Check this space for dates. For more information on the Emerging Leaders in Real Estate Program, visit www.boma.org/trainingandeducation/ELRE.

Continued on page 42

July/August 2009 BOMA 41

Eye on Education ADVERTISING INDEX Company

Page No.

Company

Page No.

1-800-GOT-JUNK?................................. 11

Griswold Controls.................................. 13

AlliedBarton Security Services................... 19

Healthy Buildings Intl............................. 44

American Anchor..................................... 7

NECA.................................................. 21

Angus Systems Group—Canada................ 10

NuTech National.................................... 12

Bartlett Tree Experts............................... 16

Pavement Network.................................. 4

BOMA Atlanta...................................... 44

Peak Fall Protection (formerly McClancy).. 42

BOMA International........ 39, 43, 45, 46, C3

Pro-Bel............................................ C2-3

Certified Conveyance Training..................22

Securitas Security Services USA................. 15

Chem-Aqua.......................................... 14

Shortridge Instruments Inc...................... 46

Dorlen Products.....................................22

Solutia Performance Films/Saflex............... 17

E-Mon, LLC.......................................... 16

Spot Coolers.......................................... 9

EVAC+Chair Corp.................................23

Universal Protection Services...................C4

Fuller Phoenix Architectural...................... 14

U.S. Green Building Council—USGBC......35

The Garland Company Inc........................23

U.S. Lawns...........................................37

Education and Events Calendar Foundations of Real Estate Management courses are being offered by BOMA local associations throughout the country, from Los Angeles to Washington D.C. Please view the education calendar at www.boma. org for more information or contact Emily Naden at enaden@boma.org. July 22: SOS Course 3: Rethinking

Recycling—Beyond Paper and Cans, Webinar, 2:00pm ET August 19: SOS Course 4: How Green is My Building? Tools for Measuring the Total ROI of Sustainability, Webinar, 2:00pm ET September 16: No Mention of Money: Understanding the Economic Impact of “Nonfinancial” Lease Clauses, Webinar, 2:00pm ET October 7-9: IFMA World

Workplace, Orange County Convention Center, Orlando, Fla., www.worldworkplace.org October 14: The Road to Renew-

Peak Fall Protection Designed Safety Solutions

als: Keeping Tenants Happy in a Depressed Economy, Webinar, 2:00pm ET November 11: BEEP Course 2: How

to Benchmark Energy Performance, Webinar, 2:00pm ET December 2: BEEP Course 3: Energy-Efficient Audit Concepts and Economic Benefits, Webinar, 2:00pm ET February 1-4, 2010: Winter Business Meeting and National Issues Conference, Hyatt Regency Capitol Hill, Washington, D.C. May 5-7, 2010: Medical Office Buildings and Healthcare Facilities Conference, Hyatt Regency, Chicago, Ill. June 27-29, 2010: 2010 BOMA

International Conference and The Every Building Show, Long Beach Convention Center, Long Beach, Calif. For detailed information on BOMA educational offerings, contact Emily Naden at enaden@boma. org or visit www.boma.org/ TrainingAndEducation

For detailed information on upcoming industry events, visit www. boma.org/Events

42 BOMA July/August 2009

In these tough economic times, could your building use a competitive edge? Many firms are struggling to retain tenants, reduce operating expenses and enhance asset value. The groundbreaking new BOMA 360 Performance Program can help distinguish your proper t y in a demanding market. It â&#x20AC;&#x2122;s designed to validate and recognize commercial properties that demonstrate best practices in all major areas of building operations and management. By achieving the BOMA 360 Performance designation for your building, you demonstrate to owners, tenants and prospective tenants that your property is being managed to the highest standards of excellence. For more information on how the BOMA 360 Performance Program can give you an edge, please visit us at www.boma.org.

buyers’ guide

Buyers’ Guide to Building Products and Services PRODUCT

DETAILS Onset’s New AC Current Sensors Provide Reliable Power Trending Information Onset Computer Corporation, a leading supplier of data loggers, has come out with a new range of plug-in AC current sensors for use with HOBO U12-006 data loggers. The sensor suite, manufactured by Veris Industries and sold directly through Onset, includes five compact, self-powered transducers that can easily be attached to pumps, motors and other equipment from which AC load trending data is required. The sensors plug directly into the external input jacks of HOBO U12-006 data loggers, giving energy performance contractors, HVAC/R technicians and others a simple and reliable way to get basic power trending information.

For more information, visit www.onsetcomp.com

Rubbermaid’s New Recycling Station Encourages Recycling Compliance Rubbermaid Commercial Products (RCP), a leader in durable facility maintenance solutions, has introduced the Two Stream Glutton® Recycling Station. The station is a fully integrated solution that sorts and contains up to two waste streams, making it easier to build a recycling program and encourage compliance. The Two Stream Glutton Recycling Station includes two removable 23-gallon containers for a total capacity of 46 gallons. With three possible openings for sorting, optional colorcoded symbols and word labels for visual cues, separating and recycling waste is easy, manageable and more efficient.

For more information, visit www.rcpworksmarter.com

The Standards in IAQ and Green Building Consulting for the BOMA Community:

Brand Yourself GREEN International

IAQ Consulting Excellence Since 1980 hbiamerica.com

RPA/FMA/SMA/SMT ACCELERATED COURSES

hbsgb.com

Solutions

business minded green building solutions™ HBI/HBS Offices Washington, D.C. (703) 323-4400

New York City (973) 394-1330

44 BOMA July/August 2009

Los Angeles (949) 450-1111

Law & Risk Management Electrical Systems & Illumination Real Estate Investment & Finance Asset Management Leasing & Marketing Facilities Planning & Project Management Energy Management and Controls Environmental Health & Safety Issues Ethics Is Good Business ShortCourse

July 29, 2009 Aug. 19, 2009 Aug. 26, 2009 Sept 16, 2009 Sept. 23, 2009 Oct. 7, 2009 Oct 21, 2009 Nov. 4, 2009 Dec. 7, 2009

PRODUCT

DETAILS Spartan Chemical Air Fresheners Help Eliminate Odors Spartan Chemical Co. Inc. has three new fresh, contemporary Airlift® fragrances: PearLux®, Cranberry Ice and Citrus. The fragrances are ideal for use anywhere, including fabrics. Just spray a light mist on drapes, carpet, fabrics, upholstered furniture or anywhere to eliminate odors and freshen fabrics. Use the product to eliminate odors in hotel rooms, daycares, libraries, nursing homes, smoking rooms and more.

For more information, visit www.spartanchemical.com

Gotham Introduces Ecos LED Family of Luminaires Gotham Lighting has debuted Ecos™, the first complete family of recessed luminaires uniquely enabled by LED technology to deliver performance, comfort and style. Using a unique patent-pending design and advanced thermal engineering, the Ecos line fully leverages both the practical attributes and design potential of LED technology. Ecos uses advanced solid state, mercury-free components to efficiently deliver lumens at levels comparable to those of well-established lighting tools. Users realize all the inherent benefits of LEDs without sacrificing the lighting performance needed to enhance productivity, security and well-being.

For more information, visit www.gothamlighting.com

Kimberly-Clark Professional’s Microban Products Offer Germ Protection Kimberly-Clark Professional has developed a full range of toilet paper and paper towel dispensers with Microban antimicrobial protection. The dispensers offer built-in antimicrobial protection against common bacteria, such as yeasts, molds and fungi that can cause stains, odors and product deterioration. Unlike surface treatments, Microban antimicrobial product protection is added during the manufacturing process and is an integral part of the dispenser that will not wash off or wear away, providing protection for the life of the dispenser.

For more information, visit www.kimberlyclarkprofessional.com Continued on page 46

At last, the talent bank is open...

New Resume Search

Only from the BOMA Career Center and the SelectLeaders Job Site Network Our Proprietary Database is the Gold Standard for Real Estate Talent. The best selection of candidates from ten premier Real Estate Professional Associations— all sectors, all funtions, all levels of experience. Search no more.

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July/August 2009 BOMA 45

• • • • •

Automated Response Flexible, Modular “Plug & Play” Design 24/7/365 Remote Monitoring Center Broad Spectrum Sensing Easily Interfaces with virtually all Building Management Control Systems Robust Design, Field-proven Technology Multi-level Security Protection SAFETY Act DT&E Designation 2006 FDNY Site Specific Approval for MEA 2007 SAFETY Act Designation 2008 Made in the U.S.A.

takes a common sense approach; combining fieldproven sensory equipment with state of the art technology to protect a building/public space and it’s occupants against a targeted airborne toxic industrial chemical (TIC), biological, chemical warfare agent (CWA) or radiological/ nuclear terrorist attack.

buyers’ guide • • • • • •

PRODUCT

DETAILS Building Sentry One™ – Main Cabinet • • • • • • • • • • • • • • •

BPSI Introduces First Complete Real-Time Toxin-Detection System

Location: Mechanical Room Mounting: Wall or Floor Dimensions: 30w x 43-1/4h x 14-1/2d inches Weight: 270 lbs. Allen-Bradley PLCs and Components Touch Screen Interface Able to operate in the most challenging mechanical rooms Multi-Level Password Protected N+1 redundancy Fiber-Optic and Cat 5 capability IP-67 Connections UL 508a Compliant NEMA Rated Enclosures 120v/60Hz, 15 Amp or International UPS Battery Back-up

Building Protection Systems, Inc. (BPSI) has unveiled the Building Sentry One™, the only system of its kind that can protect building occupants from exposure to airborne toxins resulting from an accidental toxic spill or a targeted attack, and is the first detection system that has proven to have eliminated false positives. The system is able to quickly detect a contaminant and automatically shut down a facility’s HVAC system. It then isolates the toxin, identifies it and transmits data about the hazard, including its location to first responders in real time.

For more information, visit www.bpsiglobal.com

Schindler Elevator System is Efficient in Energy and Responsiveness

Chemical Sensor Array

• Location: Near or within the outside air intake and at optimal return-air location. Only the 1/4 inch sample draw tubes ™ need penetrate the ductwork. • Mounting: Wall or Duct • Dimensions: 16w x 16h x 6d inches • Weight: 25 lbs. • Field-proven technology at system foundation • Chemical Sensor Array (CSA) programmed to detect the “most likely” Toxic Industrial Chemicals (TICs) as identified by CDC and other agencies. Additional sensor capacity available. • Continuous drawn-air sampling • Real-time reporting • N+1 redundancy • Self-calibrating sensors: temperature and signal drift • Chemical Sensors retain an extended service life • IP-67 Connections • UL 508a Compliant • NEMA Rated Enclosures • 120v/60Hz, 1 Amp or International • UPS Battery Back-up

The Schindler 7000 elevator system optimizes the flow of passenger traffic while using less energy. Capable of reaching speeds of 2,000-feet-per-minute with a maximum travel height of 1,640 feet, this elevator can be catered to the most demanding needs and incorporated into existing installations. Eco-friendly features include a standby power-operating mode and a light car composed of 85-percent recyclable material.

For more information, visit www.us.schindler.com

Bobrick Offers Easy Conversion in Restroom Towel Dispensers Convertible Universal Folded Paper and Roll Towel Dispensers, from Bobrick Washroom Equipment Inc., solve the problem of converting folded paper towel dispensers to roll towel dispensers due to changes in restroom user demographics and traffic volume. Now, facility and property managers have the freedom to convert from one towel type to the other while retaining the original design of their stainless steel equipment.

For more information, visit www.bobrick.com

™

BOMA’s Sustainable Operations Series Webinar Series Course 1: Making Sense of Sustainability Available on Demand

Course 2: Strategies for Reducing and Reusing Building Resources Available on Demand

Course 3: Rethinking Recycling – Beyond Paper and Cans Wednesday, July 22, 2009

Need help making sense of sustainability? BOMA’s SOS Program is here! The Sustainable Operations Series (SOS) of four Webinars will cut through the overwhelming and sometimes confusing information in the marketplace and teach practical ways to “green” your building’s operations.

• Understand and evaluate opportunities for implementing green strategies, including various certification options • Identify “best bets” for greening buildings without major capital expenditures

• Evaluate the ROI on green operations and equipment Course 4: How Green Is My Building? Tools for Measuring the Total ROI of Sustainability Wednesday, August 19, 2009

Presented by

46 BOMA July/August 2009

BOMA_SOS_Qtr_Page_ad.indd 1

• Work effectively with owners and tenants to implement sustainable practices, protocols and technologies

To register or learn more, visit www.buildings.com and click on “Education & Webinars”

5/27/09 1:58:47 PM