Experience the Power of the BOMA Network
march/april 2010
Great Ideas from Best-in-Class Buildings
Plus: Mixing Business with Politics—BOMA on Capitol Hill Made to Measure: BOMA Launches Suite of Standards Healthcare Innovation in MOBs
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March/April 2010 Volume 6, No. 2
18 24 22
Made to Measure Mixing Business with Politics
Lindsay Tiffany
The BOMA family of standards keeps getting bigger as industry need expands.
360 Best Practices Laura Horsley
Laura Horsley and Lindsay Tiffany
Great ideas from best-in-class buildings. For advertising rates and information, contact Paul Hagen at Stamats Business Media 866-965-4205.
BOMA members take to the halls of Capitol Hill.
DEPARTMENTS 6
Connect with BOMA Join BOMA on Facebook Join BOMA on LinkedIn
8
STATE & LOCAL UPDATE
12
CODES & STANDARDS UPDATE
BOMA Vice President Lisa Prats @ LisaPratsBOMA Volume 6, No. 2 The BOMA Magazine March/ April 2010, (ISSN 1532-4346), Copyright 2010. 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 202-326-6300; 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.
LEGISLATIVE UPDATE A role for vendors in the 7-Point Challenge, Board of Governors approves a new policy position and more.
10
BOMA Chair Jim Peck @ JimPeckBOMA BOMA President Henry Chamberlain @ HenryBOMA
28
The Power of “BOMA Traction.”
See BOMA on YouTube: www.youtube.com/ bomainternational Follow BOMA on Twitter:
MESSAGE FROM THE CHAIR
Find out which BOMA local associations took home a “Govie” during the Winter Business Meeting.
A new policy position on energy and green building codes, news from ASHRAE and the Department of Justice.
14 16
TRENDS TRACKER Barbara Chance, Ph.D., and Clyde Wilson
The 14% tenant—why parking matters.
30
RESEARCH CORNER Proven performance: BOMA’s EER helps industry pros optimize operations.
32
EYE ON EDUCATION
34
GREEN SCENE
Healthcare real estate gains strength during recovery—a preview of the upcoming MOB Conference. Peter Leahy
Rethinking recycling and adopting a lifecycle approach.
36 CONFERENCE CONNECTION Exhibitors bring green innovation and cost savings to The Every Building Show.
LEADING THE WAY Laura Ragans—learn more about this TOBY Awards advocate and rollerblading diva.
AROUND THE INDUSTRY BOMA International and BOMA Canada sign MOU, BOMA gets another ENERGY STAR nod, Job Barometer Report—is the worst behind us? March/April 2010 BOMA 5
Message from the Chair
The Power of BOMA ‘Traction’ The Power of the BOMA Network was on full display in early February when BOMA members from across the country gathered in Washington, D.C., got to work and brought commercial real estate’s message literally to the doorstep of lawmakers on Capitol Hill. The end result—BOMA members met with a record 250 Senate and House offices. (See pages 24-26 for a full recap.) The success of BOMA’s day on the Hill is two-fold. First, face-to-face meetings with legislators and their staff on issues important to commercial real estate—the economy, job creation, energy and taxes— are the best way to advance real recovery, not just for commercial real estate but for the economy as a whole. Second, the energy and enthusiasm generated during the Winter Business Meeting and National Issues Conference have created real traction for BOMA’s mission and programs. We put together a comprehensive business plan for the months ahead that will help all of us do our jobs better as we work toward recovery. Whether it’s our new policy positions passed during the Board of Governors Meeting (see “Legislative Update,” pages 8-9, and “Codes & Standards Update,” pages 12-13), enhancements to existing programs like the 7-Point Challenge and the EER or opportunities to excel through new programs like BOMA 360, the stage is set for growth and innovation. Expect to see that innovation in full force as we build on our “BOMA traction” going into the 2010 BOMA International Conference and The Every Building Show at the Long Beach Convention and Entertainment Center this June. The Every Building
Show will give you access to the best minds, best products and best services in the industry, helping you do your job better while saving money in the process. Our BOMA Green Pavilion and ENERGY STAR® Showcase will be the place to meet with the top suppliers of green and energy-efficient solutions. Learn more about this year’s Green Pavilion on pages 36 and 38. The conference education program we have scheduled is our best ever, with more than 35 sessions moderated by the industry’s most sought-after thought leaders. We have made sure that each session is targeted to arm you with the knowledge to understand the issues and challenges we are facing and the tools to tackle them. Session tracks will focus on “Achieving High Asset Value in a Down Market,” “Assessing Operational Efficiencies and Savings,” “Tackling Today’s Leadership Challenges” and “Equipping Building Engineers for Greater Operational Efficiency”; and, just like last year, building engineers attend for free if they accompany a paid full-registration delegate. A special education track will provide leadership and lessons learned from the conference host state of California. Whatever market challenges arise—regulatory issues, energy mandates, foreclosures or complex workouts—California has “been there, done that.” Thank you all for your involvement. We are still fighting through some of the most difficult market conditions in memory, but your unceasing commitment to BOMA and commercial real estate means we have the collective will and talent to get through anything—and we will!
Publisher: Lisa M. Prats, CAE Editor: Laura Horsley Associate Editor: Lindsay Tiffany Contributing Editors: Karen W. Penafiel, CAE, Ronald Burton, James Cox, Lorie Damon, Ph.D 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. 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, contact Ann Coslett at acoslett@ boma.org. The cost for The BOMA Magazine is $75 a year for subscribers and $50 a year for BOMA International members.
James A. Peck, RPA, FMA Chair and Chief Elected Officer
6 BOMA March/April 2010
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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March/April 2010  BOMA  7
legislative UPDATE
BOMA Launches Vendor 7-Point Challenge AT THE RECENT WINTER BUSINESS MEETING in Washington, D.C., BOMA launched a challenge to its associate members to implement energy-efficient and sustainable policies within their corporate facilities and to work with their customers—commercial real estate owners and managers—to provide expertise and knowledge of the products, equipment, services or programs they offer to help customers evaluate green strategies to facilitate market transformation. This vendor challenge is an “add-on” to BOMA’s 7-Point Challenge that was first launched in 2008. Specifically, we call on BOMA associate members to: 1. Continuously develop, enhance and market new product and service offerings to the BOMA community, giving members innovative and costeffective solutions to deploy in the reduction of energy use in existing buildings. 2. Demonstrate leadership by working towards a goal to decrease energy consumption by 30 percent by 2012 and implement sustainable strategies in your corporate facilities. 3. Actively participate in public-private partnerships (such as the DOE’s Energy Alliances) to identify voluntary energy-efficiency strategies with proven results and application to existing buildings. 4. Share research and/or case studies on building operating and management practices, equipment replacement or building retrofit projects, etc., that achieve the goal of reducing energy consumption and result in a positive ROI.
8 BOMA March/April 2010
John Scott, BOMA/Miami, announced the new 7-Point Challenge Vendor Challenge.
5. Work with policymakers to enact voluntary, incentive-based programs to accomplish their goals of implementing green strategies. 6. Work cooperatively within the consensus-model building codes process to develop responsible energy codes and green building standards that reduce energy consumption utilizing cost-effective and proven technologies. 7. Provide opportunities and support for company employees to participate in education programs about energy conservation and sustainable practices. To accept the challenge, e-mail kpenafiel@boma.org.
BOMA Members Take Real Estate’s Message to Congress On February 3, 300 BOMA members took to the Hill as part of BOMA International’s Winter Business Meeting and National Issues Conference. In addition to the top-notch speakers, such as Senate Real Estate Caucus Co-Chairs Ben Cardin (D-Md.) and Johnny Isakson (R-Ga.), House Ways and Means Committee member Rep. Danny Davis (D-Ill.) and political analyst Charlie Cook (see related article, page 24), attendees participated in “How to Lobby” workshops and met with their legislators and staff. BOMA members represented the majority of the local BOMA associations across the United States and collectively
BOMA members from BOMA/Suburban Chicago meet with Illinois Representative Judy Biggers (second from right) during the National Issues Conference.
met with about 250 Senate and House offices. The meetings focused on the economy and job creation, as well as our tax and energy agenda. Tax priorities included support for an extension of the 15-year depreciation period for leasehold improvements and opposition to changing current tax law on carried interest. Energy issues included support for incentives to promote energy-efficient retrofits to existing buildings and opposition to building code changes that would set arbitrary and overly aggressive energy-efficiency targets for building codes and change the process by which the codes are developed. Many of these meetings resulted in requests for BOMA’s endorsement of bills, as well as requests for proactive ideas to meet our policy objectives, and the value of these meetings is truly unquantifiable. BOMA’s grassroots advocates were treated to some once in a lifetime experiences, including tours of the Capitol by their representative and being escorted to the Capitol for a vote (as well as some not-as-fun meetings with some of the more grouchier members of Congress). In addition to the BOMA members on Capitol Hill, NAIOP members were on the Hill the same day, also weighing in on tax and energy issues critical to the industry. All told, it must have been nearly impossible for our elected officials to not hear our message!
Government Affairs Committee, Board of Governors Approve New Policy Positions At BOMA International’s Winter Business Meeting and National Issues Conference, the Board of Governors approved a new policy position on energy and green building codes (see “Codes & Standards,” page 12) and a revision of BOMA’s position statement on card check to more closely align it with the current debate on Capitol Hill. The new policy states that BOMA International supports the ability of employees to have the right to choose whether to be represented by a labor organization by way of a secret ballot election conducted by the National Labor Relations Board. A secret ballot election ensures a choice free of coercion, intimidation, irregularity or illegality.
(D-R.I.) introduced the same bill in the House of Representatives. The House version, H.R. 1194, currently has 111 cosponsors but no action has been taken on the bill.
BOMA Supports Water Incentives in Letter to White House
Judy Purviance-Anderson with BOMA/Denver Metro announces BOMA’s two new policy positions.
BOMA International has concerns about the impact mandatory, binding arbitration could have on the economy and, thus, opposes such changes as outlined in the Employee Free Choice Act. Under the legislation currently pending in both the House and Senate, a union would become the recognized bargaining agent after persuading a simple majority of the workers to publicly and openly sign a card indicating support for the union. This would effectively eliminate workers’ ability to make the important decision over union recognition in the privacy of a voting booth—free of coercion, intimidation or inappropriate influence. The bill did not receive consideration in the first session of the 111th Congress and it is unclear how it may be addressed in 2010.
BOMA International joined representatives of a broad cross-section of groups to send a letter to President Obama and Congressional leaders to urge the inclusion of plumbing- and irrigation-efficiency retrofits in legislation to create green jobs and boost the economy. Cosigners on the letter included plumbing and irrigation contractors, equipment manufacturers and wholesalers, retailers, utilities, environmental groups and other real estate organizations. “Not only will water-efficient retrofits create near-term jobs in the plumbing industry, but installation of WaterSense products will save consumers money, save billions of gallons of water, reduce energy consumption and reduce greenhouse gas emissions,” the letter stated. “A jobs bill should also include federal procurement of WaterSense products for new buildings and major renovations.”
Fire Sprinkler Incentive Legislation Introduced in Senate On January 22, Senator Tom Carper (D-Del.) and Senator Susan Collins (R–Maine) introduced S. 2947, the Fire Sprinkler Incentive Act of 2010. BOMA International supports the legislation, which includes tax incentives for property owners to retrofit commercial buildings with automatic fire sprinkler systems by reducing the depreciation schedule from 39 years to five years. Benefits of this legislation would include lower local fire department costs, increased loan activity, reduced insurance claims and premium costs and increased retrofitting and installation jobs. Last year, Congressman Jim Langevin
March/April 2010 BOMA 9
state & local update
State and Local Associations Recognized During Recent WBM and NIC BOMA LOCAL ASSOCIATIONS have a long track record of protecting commercial real estate’s interests through grassroots advocacy and education. In February, BOMA International’s State Government Affairs Committee recognized BOMA/Seattle King County, Texas BOMA, BOMA/Chicago and BOMA/San Francisco for this dedication at the 2010 Winter Business Meeting and National Issues Conference in Washington, D.C. BOMA/Seattle King County was honored in the Outstanding Government Affairs Committee Category for its members’ continued recognition that advocacy is the primary member benefit and the greatest membership value of its association. The importance of this committee to the association’s mission and strategic efforts can be seen in the commitment of its Board of Directors’ willingness to allocate resources to the advocacy program. The committee is comprised of 25 members from a broad spectrum of real estate companies. BOMA/Seattle King County employs three contract lobbyists to monitor state, city and county/suburban issues that arise. The association hosts an annual advocacy day in Olympia, which brings representatives from all BOMA local associations in the state. It is a founding member of the Washington Real Estate Coalition, an alliance of
BOMA/Seattle King County receives the State Government Affairs Award for the outstanding work of its Government Affairs Committee.
nearly 20 of the state’s real estate organizations. The committee also works aggressively to raise funds for the BOMA Washington State PAC. Over the past year, the committee tackled a wide range of issues, including job creation, sustainability and transportation. To illustrate the important work of this committee, last year the association landed the Governor as one of its keynote speakers. BOMA International recognized Texas BOMA in the Single Government Affairs Program or Seminar Category for its “Texas BOMA Statewide Advocacy Day.” Texas BOMA identifies advocacy as its primary mission to its members. As part of this mission, the association holds an Advocacy Day during the years in which the Texas Legislature is in session. The Advocacy Day Committee began planning a year in advance and identified
10 BOMA March/April 2010
several key elements to having a successful event. These included streamlining the agenda, early and frequent contact to legislators regarding the event and thorough education of Texas BOMA members on the state coalition’s priority issues. The committee identified three priority issues to lobby: opposition to mandatory price disclosure, support of the elimination of flow-through payments from the state’s margin tax under both gross rent and net rent leases and opposition to appraisal caps on real property. With close to 100 participants in the event, this was a state-wide effort that ensured that commercial real estate’s interests were heard. BOMA/Chicago was recognized in the Single Government Affairs Issue Category for its work in coordinating security efforts and integrating those efforts into Chicago’s city-wide emergency preparedness plan on Election Night 2008. On that night, more than one million people gathered in Chicago for an evening of worldwide attention. With a long partnership already in place, the city reached out to BOMA/Chicago
BOMA/San Francisco is presented with a special award for the success of its Advocacy Blog.
for assistance. Recognizing its potential to communicate and coordinate with its member buildings, BOMA/Chicago became a full participant in the preparedness efforts for the event, tackling such challenges as crowd control, traffic congestion and potential terrorist threats. With 270 member buildings located in the Central Business District, any disruption could have had a catastrophic effect on their operation. Internally, individual building members were looking to the association for information and direction. Questions surfaced about dismissing employees early, commuting, public transit and road closures.
By the end of that evening, with BOMA/ Chicago’s help, the city had successfully hosted the largest gathering to ever hear a President-Elect’s victory speech. Following the event, the city asked BOMA/ Chicago to critique its performance and recommend changes to policies and procedures. BOMA International also opted to specifically recognize BOMA/San Francisco with a special award for its work in emerging trends in technology and communication. In our fast-paced world, it’s important to keep members up-to-date on emerging legislative issues. To do that, BOMA/San Francisco launched its Advocacy Blog in March 2009. It enables the association to direct traffic to and from its existing Web site, and allows local media and political leaders instant access to BOMA/San Francisco’s issues, which has led to more immediate and effective collaboration. The association has seen readership increase tremendously, and the blog is now serving as a model for other BOMA local associations’ communications efforts.
March/April 2010 BOMA 11
Codes & standards update
BOMA International Approves Energy and Green Building Codes Policy DURING THE RECENT 2010 WINTER BUSINESS MEETING AND NATIONAL ISSUES CONFERENCE in Washington, D.C., the BOMA Board of Governors adopted a new policy on energy and green building codes. The policy restates BOMA’s longstanding support for adoption and implementation of national model energy codes developed by the International Code Council (ICC) and the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE). As outlined in the new policy, BOMA now also supports adoption and implementation of the first-ever green building codes for both commercial and residential construction recently completed and available for use by local, state and federal code authorities—ASHRAE Standard 189.1 for green commercial
12 BOMA March/April 2010
buildings and ICC/NAHB Standard 700 covering green residential construction. BOMA was heavily involved in the development of these green building codes as a voting member of both the ICC and ASHRAE development committees and will continue to play a major role as updates are drafted for these documents. BOMA policy supports the use of these green building codes “to apply only to those buildings or construction projects designated as ‘green’ by adopting authorities, those participating in voluntary green building programs or those where the building owners and/ or management have determined that compliance with these green/sustainable building codes is advantageous.” For more information, contact Ron Burton, rburton@boma.org. In addition, the new BOMA policy is available at www.boma.org.
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New BOMA Floor Measurement Standards Available BOMA has completed work on two new floor measurement standards for retail and multi-residential buildings and a major update to its standard for office buildings. All three publications are available for purchase and download on the BOMA Web site at www. boma.org. The revised office building standard has been re-titled Office Buildings: Methods of Measurement and Calculating Rentable Area. Major changes from the previous (1996) version include a complete reorganization of the sections for
greater clarity, a more user-friendly section outlining the various methods of measurement and an entirely new section of electronic graphic illustrations that follow a standard color format for specific space types. Retail Buildings: Standard of Area and Multi-Unit Residential Buildings: Standard Measurement and Calculation of Leasable Methods of Measurement were developed as a result of the industry need for methods for measuring specific spaces and to respond to the proliferation of mixed-use buildings. BOMA joined with industry partners to develop these standards, which are part of BOMA’s goal to provide industry measurement benchmarks for all types of facilities. These standards will serve as the third-party, common basis of understanding between landlord and tenant in these spaces—just as the BOMA office measurement standard has done for many decades. For more information, contact Dave Tyree at dtyree@boma.org.
Commissioning is a collaboration between ASHRAE, BOMA, AIA, the Sheet Metal and Air Conditioning Contractors of North America, U.S. Green Building Council and EPA. It includes 40 strategies for achieving critical IAQ objectives on moisture management, ventilation, filtration and source control. A summary of this publication is available as a free downloaded at www.ashrae.org. The Energy Efficiency Guide for Existing Commercial Buildings: The Business
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DOJ Resumes Effort to Issue Final ADA Rule The U. S. Department of Justice (DOJ) is proceeding with the necessary steps to publish updated regulations under the Americans with Disabilities Act (ADA). The revised ADA Accessibility Guidelines (ADAAG) have been in development by the U.S. Access Board for many years and were released to DOJ for final rulemaking early in 2009. DOJ was on track to issue the revised regulations last winter, but delayed publication in order to give incoming officials of the Obama Administration the opportunity to review the rule. For more information, contact Ron Burton at rburton@boma.org.
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ASHRAE Releases IAQ Guide and Advanced Energy Design Guide ASHRAE recently released new guidelines to assist building owners and managers, designers and the construction industry to incorporate advanced indoor air quality techniques in all buildings and energy-efficiency measures in existing buildings. BOMA was a partner in both projects and served on the steering committees. The Indoor Air Quality Guide: Best Practices for Design, Construction and
Case for Building Owners and Managers presents the business case for energy efficiency to building owners and managers. It includes color photographs, charts and graphs to provide the economic rationale for improving and sustaining energy efficiency in existing buildings. It was developed through a collaboration, including ASHRAE, BOMA, the Illuminating Engineering Society of North America, GSA and the USGBC.
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March/April 2010 BOMA 13
leading the way
Laura Ragans TOBY Awards Advocate and Rollerblading Diva
LAURA RAGANS, RPA, is a property manager with Manulife Financial in Orlando, Fla., and an active BOMA member and volunteer for the past 10 years. As a member of BOMA International’s Executive Committee, she has reached the top level of BOMA leadership, and her dedication and activity at every level—international, state and local—have made her one of the hardest working and effective leaders within BOMA. She is a past president of BOMA/ Orlando and BOMA Southern Region, and is vice chair of BOMA International’s Careers in Real Estate Task Force. She has served on nearly every awards committee and is passionate about her work on the TOBY program.
How has your BOMA involvement enhanced your leadership skills? BOMA has given me the tools and resources to be successful in many ways. From education to networking, it helps all of us excel and become better in what we do. It has also been a platform to strengthen and develop my leadership skills. I’ve also been inspired by other BOMA leaders that have become friends and mentors and share the same passion to serve BOMA and the industry.
Who has been a mentor to you? John Scott [BOMA/Miami] really stands out. Early on, he encouraged me to take on leadership opportunities and has always been there to give me feedback and direction. I have a high level of respect for him because he is knowledgeable and involved and adds so much value to BOMA. And now I do the same when I see leadership potential and passion in others.
14 BOMA March/April 2010
We’re looking at another tough year. What are some challenges you’re facing? One challenge is working with tenants in financial distress. One of my largest tenants just went through a tremendous amount of downsizing and lay-offs and the mood is very gloomy. Our management team is very focused on customer satisfaction and tenant retention. Our tenant events—ice cream socials, holiday parties, etc.—are better attended than ever, and tenants are more appreciative because their companies have cut back in this area. We have also been more flexible on the financial side as we focus on getting through the tough times with tenants.
Bringing the next generation into commercial real estate has been one of the industry’s biggest challenges. Do you think this issue is getting less attention because of the recession? Because of market conditions, recruiting and retaining tomorrow’s workforce has not been the biggest priority, but, through the Careers in Real Estate Task Force, we’re reaching out to locals to make sure they’re developing programs to address this issue. We’re finding that, although there aren’t jobs on the brokerage and financial side, there are still jobs in property management, allowing young professionals the opportunity to get a feel for the management side as they begin their careers. In Orlando, we’re building relationships with local colleges and they are very receptive and involved.
Committee member, judge, mentor and winner: Your experience with the TOBY awards is vast. What do the TOBYs mean to you? Getting involved in the TOBYs is where my BOMA involvement started. It served as a best-practice exercise for me to find areas for improvement in our management operations. My first TOBY building was in D.C. and I also won a prestigious company award resulting from this effort. I think it’s the best program that any property management team can go through. When I moved to Orlando, I immediately started getting involved with BOMA. They were just starting their TOBY program, and, as soon as they found out I had experience, they pulled me in and my involvement just grew from there. This year, we’re celebrating the 10th anniversary of the TOBY program in Orlando, and we’ve already had five international winners. Now we have the BOMA 360 Performance Program, which serves as an even better platform for best practices. I’ll be submitting my property for that recognition soon, and I’m going to recommend that we submit our entire U.S. portfolio.
What’s life like outside of BOMA? I’m a very outdoorsy type, which is one reason I moved to Florida. I’m a big believer in exercise and use it to reenergize. I love to rollerblade and get out almost daily with my two dogs to rollerblade, run or walk. I’m known around my neighborhood as the rollerblading lady with the dogs. I’m also an avid wakeboarder, which is kind of a cross between snowboarding and water skiing. You’re pulled behind a boat that creates a big wake so you can actually jump from one wake to the other, getting up to eight-foot heights. It’s a lot of fun!
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Around the industry BOMA Honored by ENERGY STAR®
Pictured from left: BOMA International President Henry Chamberlain, BOMA Canada Chairman Michael Miceli and BOMA Canada President Diana Osler-Zortea.
BOMA International received the 2010 ENERGY STAR Award for Sustained Excellence. This is the fourth consecutive year that BOMA International has been honored by ENERGY STAR for excellence in energy management. Several BOMA member companies were also recognized: Jones Lang LaSalle and Kennedy Associates received the Partner of the Year Award; USAA Real Estate Company, Transwestern, TIAA-CREF, Hines and CB Richard Ellis were honored with the Sustained Excellence Award. BOMA is still the only commercial real estate association to receive this honor.
BOMA International and BOMA Canada Sign MOU
Get the Down Low on Underwriting Sustainable Properties
BOMA INTERNATIONAL RECENTLY HOSTED A MEETING with the Board of Directors of BOMA Canada to discuss complementary programs, joint interests and future opportunities to work together. Issues discussed included green initiatives and programs, benchmarking building performance and bringing leadership and owner groups together on a regular basis. A highlight of the meeting was the signing of a Memorandum of Understanding (MOU). Watch and Learn: Check out the video from the MOU signing at BOMA International’s YouTube Channel, www.youtube. com/bomainternational.
The Green Building Finance Consortium (GBFC) recently released its latest book: Value Beyond Cost Savings: How to Underwrite Sustainable Properties. Due to its unique combination of capital markets and sustainability knowledge, the book provides those with money the methods and practices necessary to assess the value and risk of sustainable property investment, while providing those seeking money an insider’s view on how capital providers value property and make investment decisions. The book and complementary resources are available on the GBFC Web site as a free public service of the Consortium. Learn more at www.greenbuildingfc.com.
Job Barometer Report: September 2009 Will Stand as Low Point
The most recent SelectLeaders/Cornell Job Barometer Report exhibits a steep decline in commercial real estate hiring activity from a year ago, with September 2009 being the lowest point in commercial real estate opportunities since the inception of the Job Barometer. From the peak in June 2007 to the low in September 2009, there has been a decline of 83 percent in the number of commercial real estate job opportunities. On the upside, there were 40 percent more commercial real estate job postings in October 2009 than there were in September 2009. Nonetheless, the volume of maturing commercial mortgages will be highest during 2010 and 2011, and the ability of borrowers and lenders to make it through that time period is the one variable that is substantially affecting the real estate job market (see chart). This uncertainty is a cause for employers to delay hiring new employees until they see how the loan maturities play out. According to the report, the only job function that grew was property management, which experienced a 44-percent increase from 2008 as owners seek talent that can maximize their Volume of Maturing Commercial Mortgages vs. Originations ($ bil) assets. On the other end, development $800 SOURCE: Federal Reserve; Total maturing loans (annual) job opportunities PREI Research $700 Total annual originations decreased by a stag$600 gering 42 percent. $500 Read the entire SelectLeaders/Cor$400 nell Job Barometer $300 Report at BOMA’s $200 Online Career Cen$100 ter, http://boma. $0 selectleaders.com. 2001 2002
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In Memoriam— Frederick D. Schaaf Former BOMA International Board Member and Vice President of the North Central Region Fredrick D. Schaaf died on January 25 in Powell, Ohio. He was 89. A realtor, developer and former vice president of Nationwide Insurance Companies, he was a diversified real estate developer owning and operating office buildings, shopping centers and residential properties. He was cofounder and past president of BOMA/ Columbus. Schaaf was active in Columbus civic affairs and is survived by four children and 10 grandchildren. Contributions can be made to: The Anna Gene and Fredrick Schaaf Endowed Scholarship at Capital University, attn: Development Office, 1 College and Main, Bexley, Ohio 43209. Condolences may be forwarded to the family at www.rutherford funeralhomes.com.
360 Best Practices
Life Safety/Security/Risk Management Each new tenant at 125 East John Carpenter Freeway in Irving, Texas, is provided with an Emergency Procedures pamphlet to gain an overview of what to do in case of an emergency, ranging from fires to confrontational persons. An annual Fire Warden training is held by the Transwestern building management team for all tenant wardens to ensure they have a full understanding of how to properly and safely evacuate their fellow employees from the building.
Smart Strategies from Best-in-Class Buildings By Laura Horsley
Call them best practices, great ideas or just smart ways to run a building: The owners and management teams who run the BOMA 360 Performance Program-designated buildings are constructing an impressive repertoire of strategies for the management and operations of best-in-class buildings. The BOMA 360 program is unique because it validates and recognizes commercial properties that demonstrate best practices in all major areas of building operations and management, not just a single area like other designation and certification programs. A building does not receive the BOMA 360 designation unless it meets the rigorous criteria of the online self-assessment that evaluates six major areas: Building Operations and Management; Life Safety/Security/Risk Management; Training and Education; Energy; Environmental/Sustainability; and Tenant Relations and Community Involvement. Following is a selection of best practices in use by BOMA 360 buildings.
18 BOMA March/April 2010
One Gateway Center, Newark, N.J., managed by Advance Realty Management Inc., owned by Advance at One Gateway, LLC.
Building Operations and Management At One Gateway Center in Newark, N.J., Advance Realty has enhanced building operations and management a number ways, including: • Installation of a $50,000 optical turnstile and a glass curtain wall, resulting in a reduction of 145 man-hours of security personnel. • Installation of an online visitor registration system, allowing tenants to quickly pre-authorize visitors. • Initiation of a Web-based operations management platform called Building Engines, which allows for tracking of preventive maintenance on mechanical equipment. The platform provides management staff the ability to delegate, check and close out tasks quickly and efficiently. The platform also allows tenants to make service requests that get routed to the appropriate staff member via a mobile device. Each employee at Granite Tower in Denver, Colo., works with their manager to establish a three-year career development plan. This plan assures that the entire staff, both engineering and management, are up to date on current trends and technology. The plan allows employees to enhance their customer service and management skills.
Greenway Plaza in Houston, Texas, has a comprehensive Emergency Preparedness Response Plan (EPRP), high-level security standards and several unique programs, including: • A Community Emergency Response Team, a first-responder team trained to FEMA standards. • A partnership with the Houston Fire Department (HFD), which provides an on-site training venue for high-rise firefighting techniques. • A life safety equipment training room containing a full mock-up of high-rise building equipment where HFD and Greenway Plaza personnel receive hands-on training on the types and uses of life safety equipment. • An online, building-specific fire warden training program. • A Code Adam alert program enacted when a report of a missing child is received on property or in the local area.
Greenway Plaza, Houston, Texas, managed by Crescent Real Estate Equities Limited Partnership, owned by MS Crescent Greenway Plaza SPV, LLC.
At the Hurt Building (pictured on this issue’s front cover) in Atlanta, Ga., security officers enter daily logs in real time, which are continuously archived in a secure searchable database. Officers monitor alarm systems and have multiple methods of communication, including participation in COMNET, a radio net directly linking police and private security. Tenants participate in the Safety Coordinators program, through which they receive emergency procedures manuals and regular training from staff. The Safety Coordinators also incorporate duties as fire wardens during annual fire evacuation drills.
Energy
Wachovia Financial Center, Miami, Fla., managed by Cushman & Wakefield of Florida, Inc., owned by 200 South Biscayne TIC I & II, LLC.
Training and Education The Security Officer Training Program at Wachovia Financial Center in Miami, Fla., is an instructor-led course designed to provide security officers with a wellrounded foundation of the technical and communicative skills required to succeed as service-oriented security professionals. Course topics focus on the technical aspects of security officer duties while addressing the problemsolving skills and attitudinal requirements to earn customer loyalty. At the completion of the course, an examination is administered. All attendees must achieve a passing score of 80 percent to be selected.
Marathon Oil Tower, Houston, Texas, managed by Transwestern, owned by Hanover Real Estate Partners.
Emergency management plans were put to the test at the Marathon Oil Tower in Houston, Texas, when Hurricane Ike struck Houston in 2008. The entire building team was in place and ready to secure the property before the storm even came to shore. During and after the storm, the team remained on-site to protect the property and update the owner on any issues or property damage. Tenants were also updated on power outages and possible damage, as many of them were unable to travel to the building for several days after the hurricane due to widespread flooding and downed power lines.
Greenway Plaza, managed by Crescent Real Estate Equities Limited Partnership (CRE), in Houston, Texas, encourages employees to pursue professional and personal development by attending certification and licensing programs, continuing education classes, training programs and seminars. Professional development goals are assigned to employees as part of the annual performance review, and current designations, certifications and special licenses must be kept active. The company assists employees by paying dues and fees for seminars, training and licensing. Employees taking courses toward a degree in higher education receive financial reimbursement according to final grades.
The engineering team at Granite Tower records and “trends” the numerous data points monitored by the energy management system in 15-minute intervals. Graphs are configured that plot the performance of each of the building systems in relation to the changes in outside air temperature. These graphs enable the engineering team to continually develop the most efficient ways to operate, whether for that day or the entire season. The engineering team also has developed a “Red Zone” operational clock that highlights in red the current peak energy use times. When large equipment needs to be started by the operating engineer, this clock is referenced to avoid performing the startup during a “red” peak usage time. This is a major part of the rigorous functional analysis that allows retro-commissioning on an ongoing basis. Granite Tower, Denver Colo., managed by Granite Properties, Inc., owned by Cumberland Office Park, LLC.
At One Gateway Center, new thermostatic controls on the perimeter terminal air conditioning units allow the system to cycle on and off when necessary, reducing energy usage. The new controls helped the building receive a rebate from the New Jersey Clean Energy Program. A complete lighting retrofit in the building’s parking garage yields better quality light while using less energy, equating to 186,553 KWH hours annually. In addition, all of the lamps in the building were replaced with newer, more energy-efficient models. To help reduce the heat load and decrease demand for electrical power, window film was installed on every exterior window. Continued on page 20
March/April 2010 BOMA 19
Environmental/ Sustainability Building management at One Newport Place 1301 Dove Street in Newport Beach, Calif., uses Earth Week as a platform to promote green practices; programs include holding E-Waste recycling drives and having service providers set up a mini tradeshow in the building lobby to promote their sustainability practices.
17901 Von Karman, Irvine, Calif., managed by LBA Realty, owned by Von Karman Associates, LLC.
17901 Von Karman in Irvine, Calif., has an ENERGY STAR rating of 92 and is LEED Gold certified. The building combines high-efficiency cooling and heating systems with state-of-the-art management practices to reduce strains on utilities and reduce operating costs. A variable air volume (VAV ) system increases energy efficiency, saving up to 40 percent in energy consumption, and the Building Operating Plan is adjusted systematically to minimize energy consumption while maximizing comfort. The engineering team uses fluorescent lamps with minimal mercury for greater energy efficiency and to maintain high environmental standards. These lamps are replaced and recycled to keep mercury out of landfills. All internal lights are programmed to shut off automatically at the end of each day and require a manual override for after-hours work. The property’s seating guidelines maximize natural light, and low-level office partitions further reduce required artificial light.
20 BOMA March/April 2010
Water efficiency was perhaps the most significant physical change made at the Hurt Building in pursuing LEED certification. A water reclamation system that captures rainwater run-off from the roof was already in place to irrigate the indoor landscape. A new condensate reclamation system was installed on the chilled water coils to pull free water from the humidity in the air and deliver it into the cooling tower basin, reducing the amount of city water needed. Restroom fixtures were also replaced or retrofitted, converting many of the 4.5-gallons-per-flush (GPF) toilets to 1.6 GPF, urinals to 1.0 GPF and lavatory faucets to 0.5 gallons per minute. This project reduced water usage almost 40 percent, and upgrades paid for themselves in less than six months. Hurt Building, Atlanta, Ga., managed by Harbor Group Management Co., owned by Hurt Financial Associates, LLC.
The sustainability best practices at 17901 Von Karman helped the building achieve 2009 LEED Gold certification. These practices include a recycling program with a diversion rate of 45 percent of ongoing consumable waste (mixed recyclables, paper, e-waste and lamps), and all construction contractors, vendors and activities must meet a minimum of 50-percent diversion or greater. The building also features 0.5-gallon aerators on all lavatory sinks, resulting in a 75-percent reduction in lavatory sink water consumption. All urinals are set to 0.5 gallons per flush (half of the plumbing code standard), and water closets are set to the current code of 1.6 gallons per flush. An Environmentally Preferable Purchasing (EPP) policy is used to reduce the environmental impacts from materials acquired for use in the operations, maintenance and upgrades of buildings. The building also maintains a toxic material source reduction program to reduce the amount of mercury brought into the building.
Stream Realty Partners, L.P., manages three buildings in Dallas, Texas, that have achieved the BOMA 360 designation: 3811 Turtle Creek; Rosewood Court; and The Tower at Cityplace. Sustainability is a priority at all the buildings. Special areas in the parking garages are set aside for hybrid vehicles to foster traffic reduction and encourage use of energy-efficient vehicles. The buildings also provide bike racks to encourage tenants to ride their bikes to work. Showers in the on-site fitness center are made available for bike riders. Rosewood Court, Dallas, Texas, managed by Stream Realty Partners, L.P., owned by Rosewood Court, LLC.
Tenant communication and community involvement are paramount at One Newport Place 1301 Dove Street. A building portal allows for constant communication between the management team and tenants for e-mail blasts, electronic handbooks, upcoming events, weather, training and more. To support the community, building management hosts food and toy drives, blood drives and Cell Phones for Soldiers events and partners with tenants to co-sponsor community and charity events. One Newport Place, Newport Beach, Calif., managed by Cushman of CA, Inc., owned by Met Life Insurance Company.
Special Announcement: Renewal Requirement Change The BOMA 360 Performance Program Council has approved a change in designation renewal requirements from annually to every three years. This change is effective immediately for all current designees and new applicants.
125 East John Carpenter Freeway, Irving, Texas, managed by Transwestern, owned by Equastone.
The BOMA 360 designation is conferred quarterly and applications are accepted any time. Learn more at www.boma. org/getinvolved/boma360.
Tenant Relations and Community Involvement The Transwestern Green Team at 125 East John Carpenter Freeway in Irving, Texas, initiated a region-wide e-waste recycle drive on Earth Day. Other activities included handing out free seed packets and sharing a green car demonstration with the neighboring building.
In partnership with GSH Group, building management at One Gateway Center hosts seminars at the building to educate tenants on how to save energy at their office and in their homes. They also partnered with the New Jersey Clean Energy Program to offer tenants a reduced rate on energy-efficient products. In addition, a semi-annual Book Fair is held for all building tenants where 10 percent of gross sales are donated to Newark Now to improve safety, economic independence and civic participation within the city of Newark. Building space is also donated to host a variety of events that assist in fund-raising for the organization. During the holiday season, One Gateway Center partners with a local middle school to host a holiday music concert in the building concourse for the enjoyment of all the tenants in the building. In lieu of payment, a donation is made to the school’s music program.
At the Stream 360 buildings in Dallas, Texas, tenant survey are conducted to benchmark quality and a tenant is taken to lunch each month to help building management keep their finger on the pulse of tenant business and satisfaction.
3811 Turtle Creek, Dallas, Texas, managed by Stream Realty Partners, L.P., owned by Metropolitan Life Insurance Co.
The Wachovia Financial Center hosts the annual “Miami Climb” to help fight lung cancer. Participants climb 55 flights (1,210 steps) of the Wachovia Financial Center, the second tallest building in Florida (at 765 feet). Last year, more than $80,000 was collected for lung cancer research from this event.
March/April 2010 BOMA 21
Made to Measure BOMA Launches a Definitive Suite of Building Measurement Standards By Lindsay Tiffany Over the last decade, mixed-use developments have cropped up all over the country, enticing an automobile-dependent nation to work, live and play under one roof. These mixed-use buildings have presented new obstacles for their owners and managers; namely, the challenge of turning several distinct asset types into one well-oiled machine. They also pose a more technical problem for the people who design and manage them: How do you measure these buildings? That question will soon be answered. As the long-time industry leader in office building measurement standards, BOMA International’s Standard Method of Floor Measurement Committee recently set out to develop a complete suite of space measurement standards that apply to a wide range of asset types. In 2009, BOMA released the Gross Areas of a Building: Methods of Measurement and Office Buildings: Methods of Measurement and Calculating Rentable Area (2010) (see box). This spring, BOMA
“The industry now has a valuable new tool that will ensure transparency and accuracy.” —Patrick Connelly, Matrix Realty, Inc.
will release two more standards, one for use in multi-unit residential spaces and one for retail spaces. The committee is also working on a standard for mixeduse and campus-style buildings, which will outline how all of the individual standards interplay in a mixed-use environment. Patrick Connelly, vice president of asset management, Matrix Realty,
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Inc., and chair of the Standard Method of Floor Measurement Committee, explains why developing the new standards was a natural step for BOMA. “BOMA is responding to requests from our membership and from the industry as a whole for information on standards relating to these product types. Historically, people have tried to utilize certain segments of the office standard to try and apply them out in the field to these other product types, but it just didn’t fit.” An important aspect in the development process of the new standards was collaborating with key industry partners and other stakeholders. For the development of the Multi-Unit Residential Standard, the Task Force worked with the Institute of Real Estate Management, the National Association of Home Builders and the National Multi-Housing Council. The Retail Floor Measurement Task Force worked with members of the International Council of Shopping Centers. For the Industrial Standard developed in 2005, BOMA worked with the Society of Industrial and Office Realtors. “Our first step in developing these standards was to identify the parties interested in working on them and inviting them to participate,” explains Rebecca Hanner, vice president, Colliers Pinkard, and co-chair of the Multi-Unit Residential Floor Measurement Task Force. Hanner believes that a wide crosssection of real estate practitioners will benefit from the new standards. “Our goal is to provide a uniform method of measurement that can be used by real estate professionals, including architects, space planners, interior designers, engineers, building owners and managers, leasing professionals, asset managers, appraisers and others.” Connelly adds that the new standards’ cohesion and accuracy will be a boon to real estate professionals of all stripes.
“The industry now has a valuable new tool that will ensure transparency and accuracy. People can now verify the space measurements of a building— whether for a building acquisition or leasing or determining common area maintenance allocations. Prior to this suite of standards, there was no definitive standard in the industry that could do that for them.” The entire suite of standards has a cohesive new look and interactive features that will make the standards even easier to understand and use, including color illustrations, charts and hyperlinks to detailed definitions. “The new standards come as electronic downloadable PDFs and include hyperlinks for ease of reference to term definitions. Each definition has discussion points to further describe the intention of the term in its application and use,” says Hanner. The culmination of the new standard development process will be a mixeduse standard, which will define how the individual standards for each asset type work together in mixed-use or campusstyle settings. The final result will be a comprehensive suite of standards that will provide a definitive method for measuring almost all types of commercial building space. Users can refer to the suite for use in single-occupancy asset types or in mixed-use settings. All of the new standards will go through the process for ANSI certification.
Look for it. Read the full length article about BOMA’s new suite of standards at www.boma. org
The New Office Measurement Standard is Here BOMA is ushering in a new era of office building measurement with the long-awaited release of Office Buildings: Standard Methods of Measurement and Calculating Rentable Area (2010), available now. Get yours at the BOMA Store: http://shop.boma.org.
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Mixing Business with Politics BOMA Members Take to the Halls of Capitol Hill
By Laura Horsley
BOMA members throughout the United States came to Washington, D.C., in early February to take commercial real estate’s message straight to legislators on Capitol Hill during the 2010 Winter Business Meeting and National Issues Conference. A record number of meetings on the Hill took place, as members met with lawmakers to discuss how such issues as energy, carried interest and leasehold depreciation have a tremendous impact on commercial real estate and the broader economy. Here are a few highlights:
Senator Ben Cardin (D-Md.), co-chair of the Senate Real Estate Caucus, addressed BOMA members during the “How to Take our Message to Capitol Hill” session, telling attendees that job creation and a strong commercial real estate industry go hand-in-hand. Cardin also spoke about the current tax deductions for energy improvements, saying they are important, but noted, “We need to improve [the deduction] and make it more realistic with actual costs.” From left: BOMA President Henry Chamberlain with Maryland Senator Ben Cardin and BOMA Chair Jim Peck.
During the General Session sponsored by AlliedBarton Security Services, keynote speaker Charlie Cook, publisher of Cook Political Report and columnist for National Journal, offered insight into the tumultuous political climate in Washington. Cook referred to independents as the largest and most influential political group, coining independents as “purple America” and suggesting they look to sway heavily Republican in the 2010 elections. Charlie Cook peers into his crystal ball to discuss the upcoming 2010 elections.
BOMA 360 Performance Program Council Chair Dan Chancey honored representatives from BOMA 360 Performance Buildings during the General Session. Said Chancey, “BOMA 360 is exactly the kind of program the industry has been asking for and designees are telling us it is the best way to position their buildings as best in class.” Representatives from BOMA 360 Performance Buildings are recognized during the General Session.
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Attendees also heard from Senator Johnny Isakson (R-Ga.), co-chair of the Senate Real Estate Caucus, and Representative Danny Davis (D-Ill.). Isakson told attendees that cap and trade is essentially dead in the U.S. Senate and that “tax treatments that incentivize business are needed.” Top photo: Senator Isakson (R-Ga.) Bottom photo: Representative Danny Davis (D-Ill.).
When it came time to take to the halls of Capitol Hill, BOMA members came out in record numbers to discuss energy and tax issues and the importance of a healthy commercial real estate industry to boost economic recovery. BOMA Vice Chair Boyd Zoccola (left), BOMA/Indianapolis President Any Banister (second from left) and Jeff Wright with Genea meet with Congressman Brad Ellsworth (D-Ind.) (right) on Capitol Hill.
Winter Business Meeting and National Issues Conference attendees had a chance to network during the Opening Reception, sponsored by Naylor, and swap Capitol Hill stories at the Networking Reception, sponsored by ThyssenKrupp. A very fitting BOMAPAC fundraiser during the Networking Reception had attendees posing for photos with Washington’s political elite—even if the politicians seemed a bit stiff. BOMA Chair-Elect Ray Mackey finds himself trapped between political superstars of opposite parties.
Continued on page 26
To read the full recap from the Winter Business Meeting and National Issues Conference, visit www.boma.org.
Look for it. Check out what BOMA members had to say about their visits to Capitol Hill on BOMA’s YouTube Channel: www.youtube.com/bomainternational March/April 2010 BOMA 25
about the MOB Conference on page 32.
GSA Public Buildings Commissioner Bob Peck discusses how GSA will use stimulus money to green federal buildings.
BOMA International Secretary/Treasurer Kent Gibson uses the “Easy” button to demonstrate a point.
Board of Governors Highlights By Lindsay Tiffany BOMA International Chair Jim Peck kicked off the business meeting with the approval of the general consent, minutes and new members. Peck told the Board of Governors that the “power of the BOMA business network is stronger than ever” and that we’re “creating a platform for high-performance buildings as we interface with other groups.” Bob Peck , commissioner of pub-
lic buildings, U.S. General Services Administration (GSA), was among the guest speakers at the Board of Governors meeting. Peck remarked that GSA appreciates its strong relationship with BOMA and derives value out of BOMA’s meetings, education and the Experience Exchange Report (EER), which the federal government uses to benchmark against the private sector. Peck briefed the crowd on how GSA is using its $5.5 billion in stimulus money to green the U.S. building stock and create green jobs. Said Peck, “I think GSA has a responsibility to be a green proving ground—to beta test new advances and share our information with you.” The U. S. Environmental Protection Agency’s Director of ENERGY STAR® Commercial and Industrial Branch Jean Lupinacci also addressed the Board of Governors, praising BOMA and its members for their commitment to energy efficiency. Lupinacci credited the success of the ENERGY STAR program in part to BOMA’s market reach and the synergy between the two organizations. BOMA Canada Chairman Michael Miceli briefed attendees on programs
26 BOMA March/April 2010
and news from BOMA members in Canada. Miceli reported that the annual BOMEX conference, held this past September in Quebec, saw an increase in attendance, and that BOMA Canada continues to bring pandemic preparedness resources to the industry. Miceli also discussed the success of “BOMA BESt,” an industry standard for environmental certification, with 1,400 buildings certified since 2005. BOMA International Chair-Elect Ray Mackey and Vice Chair Boyd Zoccola presented the Year in Review address, where they stressed the important role BOMA has played over the past year in helping the industry through the economic downturn. Despite current challenges, membership and attendance at events remained strong, and BOMA filled critical industry needs by introducing the BOMA 360 Performance Program, the new online EER and two new building measurement standards. They also noted that BOMA continues to lead in all things green. In 2009, BOMA was recognized by the EPA with a 2009 Climate Protection Award and a 2009 ENERGY STAR Award for Sustained Excellence, receiving the ENERGY STAR award for the third straight year. Mackey also cited BOMA’s work with the U.S. Department of Energy to launch the Commercial Real Estate Energy Alliance and the adoption of the 7-Point Challenge by several cities. Zoccola also delivered the report on the Medical Office Buildings Committee, which is preparing for its first stand-alone conference in Chicago, May 5-7. See more
In his financial report, BOMA International Secretary/Treasurer Kent Gibson explained that, while 2009 was a tough year for the industry, BOMA International remains on solid financial footing and ended the year with a positive bottom line. Dan Chancey, chair of the BOMA 360 Council, reported on the new BOMA 360 Performance Program. In the first six months of the program, close to 50 buildings have been designated and 40 more are in the pipeline. He added that the council has decided to change the renewal schedule from annual to every three years, though designees will still need to participate in the EER and benchmark with ENERGY STAR every year. Chancey also announced that the Council has developed a guidebook on how to develop a Standard Operating Procedure manual. Judy Purviance-Anderson with BOMA/Denver Metro delivered reports on the activities of the Government
Affairs Committee, the Preparedness Committee and the BOMAPAC Council, during which the Board of Governors passed two new policy positions. See “Legislative Update” and “Codes & Standards Update” in this issue for more information on the new policies. John Scott, BOMA/Miami, briefed
attendees on the Sustainability Task Force’s new addition to the 7-Point Challenge, which provides guidelines for vendors who want to adopt the challenge by delivering innovative and costsaving solutions to BOMA members. BOMA International President Henry Chamberlain ended the program with “the BOMA Pulse,” a snapshot of current conditions in the commercial real estate industry and a look at opportunities and challenges ahead. Chamberlain cited stable membership, strong fund balances and a strong financial base as the keys to BOMA local associations’ continued success and noted that some stabilization in office sector jobs will boost recovery for the commercial real estate market.
What “The Smart Grid” Means For You & Your Building
A brief from NECA’s Electrical Design Library Issue 1, 2010
“T
he Smart Grid”—just three words, abbreviated in this piece as TSG—has become an increasingly important element in discussions of how we can improve energy efficiency and reduce global warming. But many building owners may be left scratching their heads, wondering what, exactly TSG will mean for their operations—and bottom lines. Decades may pass before TSG’s real impact is understood, but utilities and equipment manufacturers are beginning to get a clearer picture. Real-world installations are now underway. A number of pilot programs now coming online are beginning to provide some answers to these questions.
What does “smart” really mean? Of course, understanding what TSG might accomplish first requires an understanding of the many meanings attached to the phrase actually mean. In essence, electric utilities and their partners want to turn what is now a “dumb” one-way flow of electricity—from the generating station to end-use devices—into a two-way stream. With more intelligence in the system, the electric-supply contributions of renewable resources can more easily be accommodated by the local/regional grid.
Keep reading or download this FREE report at www.ElectricalDesignLibrary.com Brought to you by the
National Electrical Contractors Association A NECA Contractor is your single source for all electrical and integrated building systems—a local professional who understands what your facility needs and provides innovative solutions based on the latest technologies. A NECA Contractor delivers results you can rely on.
trends tracker
Parking Matters: The 14% Tenant
Managing Your Parking Asset to Boost Revenue, Save Money and Serve Your Customers By Barbara Chance, Ph.D., and Clyde Wilson MANY BUILDING OWNERS AND MANAGERS literally sit atop one of their best revenue sources. Commercial parking facilities are hidden assets that often receive minimal attention until a maintenance crisis hits or someone wants to increase fees. Parking facilities typically supply 10 to 14 percent of a building’s total annual revenue if there is paid parking, but building owners and managers can lose up to 28 percent of this revenue due to deficient contracts with
private operators, inefficient operations, maintenance lapses, employee theft and financial irregularities. Beyond its revenue benefits, a well-run parking operation can significantly enhance your building’s appeal to current and prospective tenants. What can you do to maximize both revenue and customer service?
Review and Update Contracts with Private Operators If you contract with a private company for parking operations and management, perhaps the single most important step is to review and update
your contracts with your private operator. Far too often, contracts consist of a single-page agreement that fails to specify performance standards, responsibilities for each party, penalty clauses for non-performance, maintenance and capital improvement requirements and reporting and audit obligations. Deficient contracts provide an opportunity for operational inefficiencies, theft and lost revenue. In one multibuilding complex, each owner’s agent had a different agreement with each tenant for parking spaces. There was no consistency to the agreements, nor was there accounting for the number of contract parking leases or a record of how many parking cards were issued. In another facility, the contract with the operator lacked terms covering how often the facility had to be cleaned (it never was) or how the operator was to handle abandoned vehicles left on-site (more than 100 discarded vehicles occupied parking stalls that could have been producing revenue). New contracts remedied the deficiencies and resulted in an instant increase in revenue.
You don’t want to miss exhibiting at the only East Coast Trade Show for Cleaning Supplies. is Moving to the Etess Arena in the Taj Mahal in Atlantic City , NJ • May 5 and 6, 2010 Here’s what exhibitors and attendees say about Supply Line: “Supply Line is becoming known as one of the best, if not the best regional jan/san supply show. It drew attendees from well beyond the New Jersey corridor.” — Fred Schimanski, Jr. Clean Smart
“I feel I have so much more knowledge to train a sales rep than I did yesterday.”
—Fran DiManno, Crest Paper Products
“Excellent show and seminar. Great distributor attendance.” —Jim Chittom, Athens Janitor Supply Company
Supply Line 2010 is the most efficient and effective way for you to reach distributors and cleaning professionals from Maine to Florida and every state in between. Over 2,000 owners, managers, and decision-makers attended the 2008 event. “The NJSSA show has performed above our expectations again. It is a nice mix between the U.S. ISSA show and the ISSA Interclean show for us as suppliers to the jan/san market.” —Scott Jarden, Jarden Enterprises
“The NJSSA staff is to be congratulated for running a well organized show. The traffic on Wednesday was outstanding and all the events were very well coordinated.” —Randy Starr, Golden Star
For additional information on exhibiting or attending Supply Line 2010, call the NJSSA office at
973-283-1400 or visit www.njssa.net
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Consider a Comprehensive Parking Audit
Take Advantage of New Technologies
Periodic audits, which should be included in all contracts with private operators, are designed to reveal irregularities and inefficiencies in operations and financial management. These audits also provide important revenue control information, such as an accounting of the number of spaces given out “free” and the number of paid monthly parking leases. Audits also determine whether the operator is complying with Payment Card Industry (PCI) regulations, including staff access to credit card information. Once, a parking operator kept customer credit card numbers on index cards in a small box—a clear PCI violation and an invitation to theft. When you consider the value of a well-run parking operation to your bottom line, you may want to re-evaluate the expertise and pay scale of your parking operations manager. Should a multimillion dollar asset be the responsibility of a $30,000-a-year employee with no parking experience?
Parking technologies are advancing rapidly, with several offering new efficiencies, better revenue control, energy savings and improved customer service. Radio Frequency Identification (RFID) tags or key cards used for entrance to parking facilities, Smart cards and other e-payment devices, high-speed doors and self-service payment are all ways to improve customer service and operational efficiencies. Energy-efficient lighting, such as LED or fluorescent lights, has the potential to lower operating costs and provide tax credits. Fluorescent lighting consumes between 30- to 85-percent less energy than incandescent and high-intensity discharge (HID) lighting at equal or greater light levels.
Add a Parking Professional to Your Team Parking professionals have the skills and expertise to consult on the designs for exits, entries, circulation patterns
and parking capacity. They can also provide advice on facility lighting, energy efficiencies, parking rates, new technologies and PCI regulations. Finally, they are able to assist in developing Requests for Proposals and contracts with private operators. Their services are a smart investment that can boost revenue through new efficiencies and reduced expenses. And, best of all, this investment usually more than pays for itself, turning the “14-percent tenant” into a consistent profit center.
About the Authors: Barbara Chance, Ph.D., is a member of the International Parking Institute’s Alliance for Advancing the Parking Profession and IPI’s Advisory Council. She is president of CHANCE Management Advisors, Inc., which provides consulting services for owners in the areas of transportation, parking and access management. Clyde Wilson is president and CEO of The Parking Network, Inc., a company that audits millions of dollars in parking income for owners each year. Visit the International Parking Institute’s Web site at www.parking.org to learn more.
March/April 2010 BOMA 29
Research corner
Proven Performance BOMA’s EER Helps Industry Pros Optimize Operations By Lindsay Tiffany
FOR NEARLY A CENTURY, BOMA’s Experience Exchange Report (EER) has helped property professionals evaluate how their buildings stack up to the competition. From small suburban office parks to bustling urban towers, building managers have turned to the EER to benchmark their properties and identify key industry trends. The 2009 EER contained data on nearly 4,000 buildings in close to 300 markets, and the new online system allows users to process more than 15 million data points, making it an indispensable tool for property managers. What makes the EER the industry’s leading benchmarking resource is the thousands of income and expense submissions by property professionals from around the country. What prompts them to submit their building information? As Wade W. Lange, CPM, FMA, RPA, vice president of property management, Ashforth Pacific, Inc., explains, reciprocity is key: “We participate in the EER survey because we use the information in the report. It just wouldn’t make sense if we were holding back our information.
RPA/FMA/SMA/SMT ACCELERATED COURSES Mar 24, 2010
Budgeting & Accounting
Apr 14, 2010
Design, Operation & Maintenance II
Jun 22, 2010
Ethics Is Good Business ShortCourse
Jul 28, 2010
Law & Risk Management
Aug 25, 2010
Real Estate Investment & Finance
Sep 15, 2010
Technologies for Facilities Management
Sep 29, 2010
Fundamentals Of Real Property Administration
Oct 13, 2010
Facilities Planning & Proj Mgmt
Nov 3, 2010
Environmental Health & Safety Issues
30 BOMA March/April 2010
The strength of the EER lies in the number of buildings that participate … that gives you a truer reflection of operating expenses. We submit because we don’t want to be hypocritical.” Many companies have even synced their internal benchmarking systems with the categories in the EER to simplify the survey submittal process. “We have set up a system, a way to accumulate all our costs for each building—with our contracts, our utilities, our labor— by modifying our work order system to feed to the same categories as used in the BOMA EER reporting system,” notes Ralph W. Linne, MBA, BOC, director of county facilities, Hamilton County, Ohio. “We decided to work backwards from what was required by BOMA and to streamline it so we would have very little manipulation of the data. Usually if we have to do any of that now, it’s because something new has been added during the previous calendar year and we then modify our software to capture that.” The EER is widely used to evaluate how a building’s income and operating
“The EER has become really helpful for us in establishing where our expectations should be going into a new market. It is step one in our evaluation process.” –Wade W. Lange, CPM, FMA, RPA, Ashforth Pacific, Inc. expenses compare to local and national averages, and to perform budget predictions. Linne also uses it as a key performance indicator for new property managers. “If we have a new person come on board, we watch to see how well he or she is managing the building’s costs. If we have an increase in costs, we know that we need additional training in building systems operations to help get our costs back in line with our projections and our historical cost data.”
Many also use the EER as a tool to prove to their owners, investors and other stakeholders that they are optimizing efficiency and controlling costs relative to the rest of the industry. “Taking part in the EER allows me to explain to the county commissioner why the costs of each of our buildings differ,” says Linne. “For example, if we see a big drop in energy usage for one year, we go back and look to see if we made any modifications. Did we install some new chillers or cooling towers, or do a lighting retrofit? We can then explain to the Board of County Commissioners why our costs have gone down and how that equipment investment has helped.” When it comes to benchmarking performance, industry professionals turn to the EER for data that is more comprehensive than other sources in the marketplace. While many property managers rely on peers in the industry for benchmarking information, the EER contains market-level data across a wide range of cities, companies and building types. Lange finds that the EER allows him to
paint a picture of what income and expense figures look like in unfamiliar markets. “While I do share benchmarking information with a group of industry peers, the downside is that I don’t have those connections in other cities. The EER has become really helpful for us in establishing where our expectations should be going into a new market. It is step one in our evaluation process. That’s why a large population of participants is really helpful when you start looking at the data. It’s our responsibility to make sure we’re part of that.”
Performance Matters
Be a top performer and share your data—it’s easy, fast and free. By submitting, you will get a free expense performance comparison, priority access to 2010 EER reports and save 25 percent or more on all EER product purchases. To learn more, visit www.bomaeer.org.
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March/April 2010 BOMA 31
EYE ON EDUCATION
Healthcare Real Estate: Gaining Strength During Recovery A Look at the Upcoming Medical Office and Healthcare Facilities Conference By Lorie Damon, Ph.D. LIKE MOST SECTORS OF COMMERCIAL REAL ESTATE, medical office and healthcare facilities ailed throughout much of 2009. The frozen capital markets curtailed transaction activities and new construction starts on most hospital campuses slowed or stopped altogether. Increasing healthcare delivery costs further complicated matters, as physician tenants also struggled financially and healthcare systems worked to meet the demands of increased numbers of uninsured and underinsured patients and tackle other rising costs to provide healthcare service. What’s the prognosis for this sector in 2010? Happily, it’s much healthier. The prognosis for 2010 and the path back to healthy market growth will be the focus of BOMA’s 2010 Medical Office and Healthcare Facilities Conference, May 5-7, 2010, at the Hyatt Regency Chicago. This year’s conference features an extensive education program that will examine opportunities for growth and potential challenges that may complicate a full recovery. The conference will feature general sessions that address the health of the healthcare industry—from a variety of perspectives, including hospital system CFOs and capital markets experts, healthcare reform and the emerging trends in healthcare delivery, technology and regulations.
Education Tracks Breakout sessions will allow attendees to explore industry issues in greater depth. The Capital Markets track will offer sessions dedicated to gaining healthy access to capital. Sessions will examine the equity and debt markets, perspectives from developers and the latest case studies of monetization in the wake of limited access to capital through 2009. The Provider Strategies track will feature four sessions, each led by representatives of different healthcare systems. These sessions will examine new models for healthcare delivery in new
32 BOMA March/April 2010
venues. Topics to be addressed include: delivering healthcare in rural markets; creating mobile, modular healthcare delivery systems, even for acute care; equipping MOBs for electronic medical records (EMRs); and new design trends for MOBs that are built around models of patient-centered care. While the Capital Markets track is focused on establishing a healthy “appetite” for capital, the Leasing and Management track will focus on building strength and trimming “fat” in these key operations. One of the four sessions in this track will focus on adapting “lean” principles of management from manufacturing to real estate management environments. The other sessions will focus on leasing strategies, specifically fortifying hospital relations by partnering with hospitals on the leasing and management of third-party-owned, on-campus MOBs; fending off competition for MOB tenancies in other general multi-tenant office and retail space; and handling physician tenant workouts.
Keynote Karlgaard to Speak on Innovation in Healthcare This year’s keynote session will feature Rich Karlgaard, publisher of Forbes magazine. Entrepreneur-turned-publisher, columnist and television commentator Karlgaard has a unique vantage point on the trends driving the business and investment climates. His insights help audiences see the global marketplace with new eyes. More than just a business journalist, Karlgaard understands firsthand the difficulties of navigating in today’s business climate and the opportunities available to those who have the courage to reach out for them. His keynote address, “Twelve Types of Innovation To Save Your Company and Your Career” will offer insights into how innovation—both technological and cultural—may help to reshape the healthcare industry in the coming decades. Innovation has long been the lifeblood of healthcare, and Karlgaard will explore ways in which that innovation will affect
not only how healthcare is delivered, but also where it’s provided.
A Building Tour Built on Innovation Innovation will be on display during the conference’s kick-off building tour of Midwest Orthopaedics at Rush Orthopedic Building. Scheduled for Wednesday, May 5, 2010, from 3:30 to 5:30pm, the private tour will showcase the 220,000-square-foot Orthopedic Center of Excellence, which is part of the first phase of a $1 billion transformation of the Rush University Medical Center campus. The building opened in late 2009 and is jointly owned by Midwest Orthopaedics at Rush (MOR) and Rush University Medical Center (RUMC) under an air rights lease structure. This state-of-the-art facility has been designed to achieve LEED Gold certification and includes clinical and administrative offices for MOR that were consolidated from five other locations; an advanced imaging center; GAIT lab, biomechanics lab; physical therapy; learning center; orthotics lab; and research library. Attendees will learn how MOR and RUMC worked through highly complex strategic, financial, operational and regulatory issues to create a “win-win” partnership. The conference also includes ample opportunities to network, both formally and informally, and a tradeshow featuring exhibitors who work across the spectrum of the industry.
For more information and to register, please visit www.one-stop-registration. com/bomam2010/OSR.index. View BOMA International’s Education Calendar and Event Calendar at www.boma. org, just click on “education” or “events.”
Put the Power of the Network to Work for You.
“The BOMA conference was an incredible experience for me. I had the chance to network with other commercial real estate professionals from all over the world. The tradeshow was perfect for one-on-ones with product and service providers in a more relaxed atmosphere than everyday property management.” Alisa Molyneaux Real Estate Manager CB Richard Ellis Washington, DC
5 Reasons Why... you need to be at the most important commercial real estate event in 2010. 1. Learn More, Spend Less. The 2010 conference has been streamlined to eliminate one night’s hotel and travel expenses without reducing programming time. 2. Questions Answered, Solutions Provided. The solution providers at The Every Building Show TM will show you how to reduce operating costs, identify cost-saving, energyefficient solutions and enhance property value–without the hard sell. 3. Knowledge. The conference offers cutting-edge education led by the industry’s top performers on issues that range from optimizing asset values during market turndown to cultivating next generation talent.
2010
4. The Power of the Network.INTERNATIONAL When times areCONFERENCE tough, & networking and sharing ideas with peers is more critical THE EVERY BUILDING SHOW TM than ever. If two heads are better than one, just imagine Long Beach Convention & Entertainment Center 27-29, 2010 | Los Angeles County, CA what a few thousand canJune accomplish. 5. Register on Your Terms. We’ve added and expanded registration options, making the conference and tradeshow available to you on your budget, your schedule and your terms. And you don’t even have to be a BOMA member INTERNATIONAL CONFERENCE & to attend. TM
2010
THE EVERY BUILDING SHOW
Long Beach Convention & Entertainment Center
June 27-29, 2010 | Los Angeles County, CA
Register for BOMA 2010 today! www.bomaconvention.org
EYE ON EDUCATION
Healthcare Real Estate: Gaining Strength During Recovery A Look at the Upcoming Medical Office and Healthcare Facilities Conference By Lorie Damon, Ph.D. LIKE MOST SECTORS OF COMMERCIAL REAL ESTATE, medical office and healthcare facilities ailed throughout much of 2009. The frozen capital markets curtailed transaction activities and new construction starts on most hospital campuses slowed or stopped altogether. Increasing healthcare delivery costs further complicated matters, as physician tenants also struggled financially and healthcare systems worked to meet the demands of increased numbers of uninsured and underinsured patients and tackle other rising costs to provide healthcare service. What’s the prognosis for this sector in 2010? Happily, it’s much healthier. The prognosis for 2010 and the path back to healthy market growth will be the focus of BOMA’s 2010 Medical Office and Healthcare Facilities Conference, May 5-7, 2010, at the Hyatt Regency Chicago. This year’s conference features an extensive education program that will examine opportunities for growth and potential challenges that may complicate a full recovery. The conference will feature general sessions that address the health of the healthcare industry—from a variety of perspectives, including hospital system CFOs and capital markets experts, healthcare reform and the emerging trends in healthcare delivery, technology and regulations.
Education Tracks Breakout sessions will allow attendees to explore industry issues in greater depth. The Capital Markets track will offer sessions dedicated to gaining healthy access to capital. Sessions will examine the equity and debt markets, perspectives from developers and the latest case studies of monetization in the wake of limited access to capital through 2009. The Provider Strategies track will feature four sessions, each led by
34 BOMA March/April 2010
representatives of different healthcare systems. These sessions will examine new models for healthcare delivery in new venues. Topics to be addressed include: delivering healthcare in rural markets; creating mobile, modular healthcare delivery systems, even for acute care; equipping MOBs for electronic medical records (EMRs); and new design trends for MOBs that are built around models of patient-centered care. While the Capital Markets track is focused on establishing a healthy “appetite” for capital, the Leasing and Management track will focus on building strength and trimming “fat” in these key operations. One of the four sessions in this track will focus on adapting “lean” principles of management from manufacturing to real estate management environments. The other sessions will focus on leasing strategies, specifically fortifying hospital relations by partnering with hospitals on the leasing and management of third-party-owned, on-campus MOBs ; fending off competition for MOB tenancies in other general multi-tenant office and retail space; and handling physician tenant workouts.
Keynote Karlgaard to Speak on Innovation in Healthcare This year’s keynote session will feature Rich Karlgaard, publisher of Forbes magazine. Entrepreneur-turned-publisher, columnist and television commentator Karlgaard has a unique vantage point on the trends driving the business and investment climates. His insights help audiences see the global marketplace with new eyes. More than just a business journalist, Karlgaard understands firsthand the difficulties of navigating in today’s business climate and the opportunities available to those who have the courage to reach out for them. His keynote address, “Twelve Types of Innovation To Save Your Company and Your Career” will offer insights into how innovation—both technological and cultural—may help to reshape the healthcare industry in the coming decades.
Innovation has long been the lifeblood of healthcare, and Karlgaard will explore ways in which that innovation will affect not only how healthcare is delivered, but also where it’s provided.
A Building Tour Built on Innovation Innovation will be on display during the conference’s kick-off building tour of Midwest Orthopaedics at Rush Orthopedic Building. Scheduled for Wednesday, May 5, 2010, from 3:30 to 5:30pm, the private tour will showcase the 220,000-square-foot Orthopedic Center of Excellence, which is part of the first phase of a $1 billion transformation of the Rush University Medical Center campus. The building opened in late 2009 and is jointly owned by Midwest Orthopaedics at Rush (MOR) and Rush University Medical Center (RUMC) under an air rights lease structure. This state-of-the-art facility has been designed to achieve LEED Gold certification and includes clinical and administrative offices for MOR that were consolidated from five other locations; an advanced imaging center; GAIT lab, bio-mechanics lab; physical therapy; learning center; orthotics lab; and research library. Attendees will learn how MOR and RUMC worked through highly complex strategic, financial, operational and regulatory issues to create a ‘winwin’ partnership. The conference also includes ample opportunities to network, both formally and informally, and a tradeshow featuring exhibitors who work across the spectrum of the industry. For more information and to register, please visit www.one-stop-registration. com/bomam2010/OSR.index. View BOMA International’s Education Calendar and Event Calendar at www.boma. org , just click on “education” or “events.”
GREEN SCENE
Rethinking Recycling A Life-Cycle Approach to Product Development < *7*5 *&-< .1' *50 < 0&5/ 53+ *66 .32&0 FOR BUILDING OWNERS AND MANAGERS looking for ways to be more environmentally sustainable, itâ&#x20AC;&#x2122;s always good to recycle. But itâ&#x20AC;&#x2122;s time to reduce what we use in the first place. Thatâ&#x20AC;&#x2122;s the philosophy behind Reduce Today, Respect Tomorrow, a global program recently launched by Kimberly-Clark Professional*.
As tenants and end-users increase their desire for green products, the emerging question has been: What defines green? The central premise of Reduce Today, Respect Tomorrow is that focusing only on 100-percent recycled fiber content does not address the total picture and
that the entire life-cycle of the product must be considered. Reducing the impact on the environment is much broader and more nuanced than measuring the recycled content of a product. Other considerationsâ&#x20AC;&#x201D;such as water and energy consumption during manufacturing, fiber sourcing and waste generation and managementâ&#x20AC;&#x201D;are also important factors. Focusing on 100-percent recycled alone does not look at 100 percent of the picture. It only looks at the fibers from which the tissue is made. It does not look at the process used to make the product, the water consumed, the electricity required, from where the fiber is sourced or how the products are packaged and used. Itâ&#x20AC;&#x2122;s clearly good to recycle and use appropriate amounts of recycled
material when manufacturing products, but the more comprehensive approach is to look at the bigger picture and to understand the many ways product design can reduce impact on the environment. That means striving to reduce environmental impact at every stage of a productâ&#x20AC;&#x2122;s life-cycle.
This strategy starts with product designs that strive to reduce how much a user consumes overallâ&#x20AC;&#x201D;through usage, as well as through wasteâ&#x20AC;&#x201D;an approach that is based on source reduction. Source reduction is essentially waste prevention, or designing products to eliminate waste at the startâ&#x20AC;&#x201D;before it ever becomes waste. Source-reduced products are designed so that users actually consume less, either through improved performance, more reliable dispensing methods or both. And, if less is consumed in the first place, it often means there is less packaging waste, which further reduces the amount of waste to recycle or send to the landfill. Products made with a combination
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These product solutions can also help buildings and facilities earn points toward LEED EB:OM certification. We have also developed some simple Web-based tools to help building owners and managers compare environmental impacts between different alternatives, and we recommend the solutions with the lowest total impact, not just those with the most recycled fiber content.
of virgin and recycled material can reduce consumption when compared to products made simply with 100-percent recycled material. Our research shows that high-quality, better-performing products can allow users to use less. Yet, reduced consumption is only part of the solution. Here are other ways to reduce environmental impact at every stage of a productâ&#x20AC;&#x2122;s life-cycle, including: s $EVELOPING UNIQUE lBER EFlCIENT TECHNOLOGIES THAT REDUCE the amount of fiber needed to make tissue, towel and wiper products. s #OMPRESSING OR REDESIGNING PRODUCTS AND PACKAGING SO THAT more fits into every case. s )NTRODUCING PRODUCTS THAT REDUCE PACKAGING WASTE s 2ESIZING CASES TO OPTIMIZE HOW THEY lT ONTO STANDARD PALLETS
so truck space can be used more effectively, reducing the total number of deliveries needed to fill orders.
Responsible forestry management practices are also a key component of this bigger-picture environmental approach. Kimberly-Clark requires its wood fiber suppliers to be certilED TO A RECOGNIZED FOREST MANAGEMENT PROGRAM AND IN
Kimberly-Clark Professional* became the first away-from-home tissue products provider in North America to receive Forest Stewardship Council (FSC) chain-of-custody certification for a broad range of tissue and towel products. When selecting a supplier for a buildingâ&#x20AC;&#x2122;s washroom and wiper products, consider what a company is doing to reduce environmental impact overall, not just the amount of recycled fiber in its products. That means looking at the bigger picture and making purchasing decisions based on what will result in the most sustainable conditions long term.
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conference connection
Best in Show
Exhibitors Bring Green Innovation and Cost Savings to The Every Building Show “Green” has gone from a buzzword to a best practice for operating commercial properties over the last several years. Property professionals know that, to gain a competitive edge in today’s market, they’ll need to employ innovative green products and services that will improve efficiency and boost the bottom line. This year’s Green Pavilion and ENERGY STAR® Showcase at BOMA’s The Every Building Show, June 27-29 in Los Angeles County, Calif., will feature exhibitors offering a diverse mix of energyefficient and sustainable solutions. Here are just some of the leading companies that will be exhibiting in the Green Pavillion:
Encelium Technologies Encelium manufactures the Energy Control System™ (ECS), an advanced lighting control solution for commercial buildings. The system reduces lighting use and energy costs at a fast rate and has an average payback of two to five years. Since the company was founded in 2001, ECS has been installed in more than 20 million square feet of commercial space. ECS utilizes six distinct energy management strategies, and also counts toward LEED credits. Visit www.encelium.com.
EnerNOC, Inc.
Advanced Modern Technologies Corporation Advanced Modern Technologies Corporation is an innovative manufacturer of commercial washroom automation and water conservation systems. Product line includes HYBRIDFLUSH automatic flush valves for urinals and toilets, HYBRIDFLO automatic faucets and DUALFLUSH/ HALF-FLUSH water-saving flush handles. Visit www.amtcorporation.com.
Cosentino North America Cosentino’s entrepreneurial dynamic has allowed it to become a dominating player in the stone industry. In 2009, Cosentino expanded its product line to include a revolutionary recycled surface, ECO™ by Cosentino, which joins its flagship surface, Silestone™ Natural Quartz by Cosentino. Visit www.cosentinonorthamerica. com.
DDM Metering Systems Inc. Founded in 1996, DDM Metering Systems Inc. is a full-service submetering firm with a national client list. DDM’s mission is to help commercial property owners and managers control energy usage as well as allocate those costs to tenants in the fairest possible way. DDM is one of only a handful of service providers of complete and fully integrated custom turnkey submetering systems, and specializes in calculating after-business usage and timeof-use over standard billing. Visit www. ddmmeter.com.
36 BOMA March/April 2010
E-Mon, LLC E-Mon is an industry leader in submeters and manufactures a complete portfolio of energy monitoring products. E-Mon D-Mon meters have been installed for more than 25 years in a variety of commercial buildings for energy management, tenant billing, usage analysis, metering and verification, load control and cost allocation. Whether the goal is to reduce costs, increase efficiency or meet specific energy targets, E-Mon can provide the ideal solution for the application. Visit www.emon.com.
EFT Energy, Inc. EFT Energy is a leading provider of energy management solutions to major enterprises in business and government. EFT’s technology empowers customers to monitor and manage real-time energy consumption and carbon emissions. Its Energy Manager software provides comprehensive reporting with intuitive drilldown functionality and important features like instant alarm notification and automatic report distribution. Visit www.eft energy.com.
EnerNOC, Inc. is a leading developer and provider of clean and intelligent energy solutions. EnerNOC’s technology-enabled demand response and energy management solutions help optimize the balance of electric supply and demand in commercial buildings. Its total energy management solutions help customers operate more efficiently, track their carbon footprints and leverage competitive market dynamics for cost-effective energy procurement. Visit www.enernoc.com.
Enovity Enovity is a leading energy engineering and facility management firm that provides consulting for commercial, institutional and industrial facilities in the Western United States. Enovity’s services include design, commissioning and facility operations and maintenance. Enovity also offers expertise in advanced building controls, monitoringbased persistence and retro-commissioning, systems troubleshooting, whole building metering and tenant submetering and more. Visit www.enovity.com.
eSight Energy, Inc. eSight Energy, Inc.’s eSight is a sophisticated energy management suite that provides powerful techniques for targeting specific areas of energy usage to identify cost savings. eSight is an intuitive, Webbased solution that easily integrates with other building systems. eSight is suitable for use across organizations of virtually any size or industry sector and has been designed to be scalable in functionality and size of system. Visit www.esight energy.com. Continued on page 38
O F F I C E B U IL D IN G S : S TA N D A R D M E T H O D S O F M E A S U R E M E N T A N D C A L C U L AT IN G R E N TA B L E A R E A ( 2 010 )
GET INTERACTIVE!
The interactive downloadable format includes hyperlinks, expanded definitions, and 45 full-color illustrations.
THE
BOMA STANDARD THE NEW OFFICE MEASUREMENT STANDARD IS HERE
There’s a reason everyone calls it “The BOMA Standard.” In 1915 it was the first floor measurement standard and today it still sets the standard for measuring office space. Now BOMA International introduces the latest version of this landmark standard, Office Buildings: Methods of Measurement and Calculating Rentable Area (2010) .
NEW FEATURES INCLUDE: • A new Single Load Factor Method. This new calculation, “Method B,” applies to the occupant area of each floor to determine the rentable area and is the same for all floors of a building, i.e., all tenants are allocated the same percentage for calculation of amenities and service areas. • More options. Choose either the new Method B or the measurement methodology of the 1996 standard, referred to as “Legacy Method A.” • Regional leasing practices. Allows for enclosure requirements and limited unenclosed circulation; i.e., walkways and outdoor lobbies. Great for tropical climates. • Measurement clarity. Introduction of new terms to simplify and clarify the process of measurement, including a step-by-step sequence that includes boundary line definitions.
ORDER THE NEW OFFICE STANDARD TODAY AT HTTP : //SHOP.BOMA.ORG
BOMA Sets the Standard. Order BOMA’s floor measurement standard, Office Buildings: Methods of Measurement and Calculating Rentable Area (2010) , or the other measurement standards from the BOMA family of standards– Gross Areas of a Building: Methods of Measurement (2009) ; Standard Methods for Measuring Floor Area in Industrial Buildings ; and Unified Approach for Measuring Office Space: For Use in Facility and Property Management .
March/April 2010 BOMA 37
conference connection
Genea Genea is a clean tech company with a comprehensive energy services platform for commercial office buildings. Genea’s Building Optimization Platform is a portfolio-wide application that empowers every stakeholder in the commercial property value chain and changes the daily operating paradigm for office buildings. Visit www.geneaenergy. com.
Attendees walk the green carpet at the 2009 ENERGY STAR Showcase and Green Pavilion.
Pacific Building Care Georgia-Pacific Professional Georgia-Pacific Professional is a provider of hygienic and environmentally responsible dispensing systems and paper products for commercial buildings. GeorgiaPacific is committed to better hygiene, greater efficiencies and richer knowledge that create significant business advantages. With a heritage of creating innovative solutions, GP Professional offers unique brands such as enMotion®, Compact®, Dixie® and Brawny Industrial®. Visit www.gppro.com.
Jaco Construction Roofing Contractors Jaco Construction Roofing Contractors understands how energy, the environment and roofing can work together to provide a sustainable, energy-efficient and LEEDqualifying roofing system. Jaco helps its customers to qualify for energy rebates, tax deductions, reduce energy bills and lower maintenance costs. Visit www. jaco-const.com.
Nalco Company Nalco provides proven expertise in water, energy and air systems in commercial properties. Nalco programs include functionalities like cooling water, steam or closed loop heating, AHU maintenance and air quality improvements, with a focus on reducing water and airborne pathogens. Nalco water treatment programs extend the useful life of their utilities equipment assets, reduce energy and water consumption, cut solid waste volume and reduce the total cost of operations. Visit www.nalco.com.
National Fenestration Rating Council The National Fenestration Rating Council develops and administers energyrelated rating and certification programs that serve the public by providing fair, accurate and credible information on fenestration performance. Visit www.nfrc.org.
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Nu Flow Landscape Concepts Management, Inc. Landscape Concepts Management, Inc. is a commercial landscape contractor that provides a complete spectrum of outdoor services. Certified Green Roof and Smart Irrigation System installers are part of an integrated landscape management program, which also includes tree care, hardscape installation, water features, irrigation system management, seasonal color and comprehensive landscape maintenance. Visit www.landscapeconcepts. com.
38 BOMA March/April 2010
Nu Flow renovates and extends the useful life of pipes in buildings using trenchless epoxy coatings and CIPP structural liners. Patented epoxy is used to line potable water pipes, service lines, chiller, heating, HVAC and fire suppression systems. Additional technologies are available enabling Nu Flow to select the optimal solution to renovate existing pipes, increase their durability and prevent future problems. Visit www.nuflowtech.com.
Pacific Building Care is a leading commercial janitorial services company in the Western United States, delivering green cleaning and lighting solutions to commercial buildings. PBC services more than 110 million square feet, employing a comprehensive green cleaning approach that includes LEED certification consulting and related environmental best practices. Visit www.pbcare.com.
RetroCom Energy Strategies Inc. RetroCom is a premier provider of energy engineering and green building services. RetroCom has more than 20 years of experience with evaluating, designing and implementing advanced energy and operational improvements in facilities throughout the United States. Visit www. retrostrategies.com.
Sika Sarnafil Sika Sarnafil is an international supplier of high-quality, long-lasting thermoplastic roofing and waterproofing membranes. Sika Sarnafil produces a range of systems that include green roofs, solar roofing and vinyl systems that simulate the appearance of metal roofs. Sika Sarnafil also established the first recycling program for single-ply roofing systems. Visit www. SustainabilityThatPays.com.
Spartan Chemical Company, Inc. Spartan Chemical manufactures specialty maintenance products for cleaning and maintenance in commercial buildings. Spartan Chemical’s product offerings include all purpose cleaners, disinfectants, floor care programs, industrial degreasers, hand-restroom cleaners, deodorants and more. Visit www.spartanchemical.com.
Certified fall protection...the best kind of insurance Rooftop Anchor, Inc. engineers, manufactures, installs and inspects fall protection and fall arrest equipment to help your business meet the OSHA and ANSI I-14.1 standards. Whether your commercial building project is new construction or retro-fit, Rooftop Anchor, Inc. offers a complete line of products and services to make your building “code compliant” in providing rooftop safety for window cleaners, roofing contractors and other trades requiring suspended access. We are determined to take your roofop workers from high-rise work sites to their homes, safely.
New and innovative rooftop anchors Rooftop Anchor has partnered with LINE-X ® Protective Coatings to provide environmentally friendly corrosion protection to the fall protection and fall arrest systems for your building.
Call us for a free presentation on the latest safety standards or to learn more about our product line including the new and innovative LINE-X coated rooftop anchor.
LINE-X coating replaces the traditional hot dip galvanized process to maintain corrosion-mitigating performance without losing durability. In addition, this new white coating can help with LEED certification (pending). Custom colors are available by request.
Turn-key to create less stress for you Installations and certified inspections are available Manufactured in the U.S.A. Manufactured from recycled material 25 year warranty offered 30 combined years experience in the rooftop industry Specifications, drawings and quotes available Training meetings offered
Available Products Rooftop Anchors Wall Anchors Tie-Back Support Anchors Monorail Systems Horizontal Lifeline Systems Davits Guard Rails Roof Hatches
2700 South 900 West | Salt Lake City, UT 84119 P: 800-411-3914 | Fax: 801-839-2929 sales@RooftopAnchor.com | www.RooftopAnchor.com