Leading the Future
March/April 2011
Preparing for Recovery Strategies for Enhancing Asset Value
Plus: A Building Engineer’s Role in Preventive Maintenance
Winter Business Meeting Highlights ‘A Team’ Collaborations— ASHRAE
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March/April 2011 Volume 7, No. 2
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Preparing for Recovery Lindsay Tiffany, Laura Horsley and Phil Mobley Enhancing asset value requires having a strategy for deferred maintenance and capital improvements.
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Join BOMA on LinkedInJoin the new EER Users Group See BOMA on YouTube: www.youtube.com/ bomainternational Follow BOMA on Twitter: BOMA Chair Ray Mackey @ rhmackey BOMA President Henry Chamberlain @ HenryBOMA BOMA Vice President Lisa Prats @ LisaPratsBOMA Volume 7, No. 2 The BOMA Magazine March/ April 2011, (ISSN 1532-4346), Copyright 2011. 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.
Laura Horsley BOMA solidifies business plans and new advocacy positions in Orlando, Fla.
DEPARTMENTS 6
Connect with BOMA Join BOMA on Facebook
Winter Business Meeting Highlights
Message from the Chair Capitalizing on Recovery.
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Legislative Update Board of Governors approves two new policy positions; BOMA applauds President Obama’s Better Buildings Initiative.
12 State & Local Update BOMA launches new STARS program to encourage energy benchmarking; plus, BOMA local associations recognized for excellence in advocacy.
14 Codes & Standards Update BOMA urges caution in consideration of green construction codes; work starts on next editions of ASHRAE energy and green building standards.
16 Leading the Way Robert M. Brierley—Boston CRE guru, aspiring sports broadcaster.
18 Around the Industry GSA tool offers sustainable strategies in one click; D.C. tops in new jobs; KimberlyClark Professional* to sponsor TOBY® Awards.
20 ‘A Team’ Collaborations— ASHRAE ASHRAE’s standards development process is an important part of BOMA’s advocacy program.
34 Trends Tracker WBM takeaways—the BOMA Pulse report; plus, the Year in Review.
35 Green Scene John Knope Gaylord case study—the “green” way to fight drain build-up in your building.
36 Research Corner It’s not just benchmarking—it’s improving performance.
38 Eye on Education Mark S. Johnson MOB special: a prescription for healthcare real estate success; plus, how property management has changed over the years.
42 Trade Tools Peter Leahy Reduce your environmental impact in the restroom.
44 Conference Connection The Every Building Show® exhibitors offer green solutions in D.C.
March/April 2011 The BOMA Magazine
5
Message from the Chair
Capitalizing on Recovery As you read through this issue, you will learn about the important work BOMA members accomplished during the Winter Business Meeting in Orlando, Fla., this past January. We solidified business plans (pages 30-32), announced new advocacy positions (page 8) and came away with some terrific strategies to take advantage of a strengthening marketplace. And, though it’s certainly nice to finally see a shift in market conditions, it also means we need to reexamine and possibly shift our approach to asset management. For most of us, the past couple years have been all about tightening operations, looking for new efficiencies and cutting costs wherever possible. Is now the time to make those capital investments you’ve had to defer, or should you wait it out another year? Now is certainly the time to start thinking about how to capitalize on recovery. The “BOMA•Kingsley REPORT” special supplement on pages 23-26 addresses these very issues and looks at how several industry professionals are taking advantage of the changing market and preparing for recovery. BOMA is also making recovery strategies a core focus of its educational programming at this year’s BOMA International Conference and The Every Building Show® in Washington, D.C., June 26-28. Education tracks will focus on boosting asset values, creating high-performing assets, forging current and future leaders and meeting the demands of emerging regulations and standards. BOMA 2011 will have the tools and knowledge you need to build your own blueprint for recovery—from the industry’s premier educational offerings to world-class speakers like David Gergen, Sam Zell and Dr. Peter Linneman to the “Learning Laboratory” of ideas and solutions at The Every Building Show®.
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The BOMA Magazine March/April 2011
Another important focus of both this issue and BOMA 2011 are the “human assets” that ensure our buildings are run efficiently and effectively—our building engineers. Building engineers have a critical role in keeping up a building’s preventive maintenance plan (see pages 28-29) and, as we transition for the upturn, it is more important than ever that building engineers are key players in the development of new operational strategies. Building engineers will again be essential participants at BOMA 2011, with a track of education geared toward their needs on leveraging technologies and systems for better operational performance. And, just like last year, a building engineer can attend for free when accompanied by a fully paid registrant. Let’s not forget our best recovery strategy—the collective wisdom and creativity of the BOMA Business Network. Exchanging ideas and sharing challenges and best practices with peers from across the United States and around the world are the best ways to position yourself for success. BOMA does this better than any other group; it’s why we have led the industry for more than 100 years, and it’s why we are leading the future today. Thank you for supporting this great industry!
Ray Mackey, Jr., RPA, CPM, CCIM Chair and Chief Elected Officer
Publisher: Lisa M. Prats, CAE Editor: Laura Horsley Associate Editor: Lindsay Tiffany Contributing Editors: Karen W. Penafiel, CAE, Ronald Burton, James Cox, Lorie Damon, Ph.D. Designer: Amy Belice Published by: Building Owners and Managers Association (BOMA) International
BOMA International Officers Chair and Chief Elected Officer Ray H. Mackey, Jr., RPA, CPM, CCIM Stream Realty Partners, LP Dallas, Texas Chair-Elect Boyd R. Zoccola Hokanson Companies, Inc. Indianapolis, Ind. Vice Chair Joseph W. Markling CB Richard Ellis, Inc. Los Angeles, Calif. Secretary/Treasurer Kent Gibson, CPM Property Reserve Inc. Salt Lake City, Utah President and Chief Operating Officer Henry H. Chamberlain, CAE, APR BOMA International Washington, D.C.
Call for Nominations: Vice Chair, Secretary/Treasurer and Executive Committee Members BOMA International’s Nominating Committee is seeking candidates for the positions of vice chair, secretary/treasurer 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. 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.
legislative UPDATE tenants to make informed decisions to drive energy-efficiency improvements. Whole-building aggregate data provides vital information to the building owner while protecting the privacy concerns of tenants.
BOMA Applauds President Obama’s Better Buildings Initiative In early February, President Obama announced a new initiative to increase the energy efficiency of commercial buildings by 20 percent by 2020 through a combination of voluntary measures and public programs. According to White House estimates, this will result in a savings of $40 billion on energy bills. To do this, the President’s Budget will propose to make American businesses more energy efficient through a series of new initiatives:
Board of Governors Approves Two New Policy Positions IN RESPONSE TO NEWLY EMERGING ISSUES, BOMA’s Board of Governors approved two new policy positions at BOMA International’s Winter Business Meeting in Orlando, Fla. The first, to encourage foreign investment in commercial real estate, BOMA International supports amending, if not the outright repeal, of the Foreign Investment in Real Property Tax Act (FIRPTA) of 1980 to increase the amount of foreign capital invested in the U.S. commercial real estate market. FIRPTA discourages the investment of foreign capital in U.S. real estate by treating a gain or loss by a foreign investor from the sale of a U.S. Real Property Interest (“USRPI”) as if such gain or loss were effectively connected with a U.S. trade or business. Such policy is completely at odds with the tax treatment of other types of investments. Currently, a foreign investor faces no U.S. tax liability from income realized from other forms of investments, such as stocks and bonds or the interest earned on U.S. bank accounts, to name a few. The second issue addresses benchmarking through the ENERGY STAR® Portfolio Manager tool. BOMA International has actively promoted benchmarking as the key first step to understanding a building’s energy use and
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The BOMA Magazine March/April 2011
• New tax incentives for building efficiency. • More financing opportunities for commercial retrofits. Government Affairs Committee Chair Judy Purviance-Anderson announces BOMA’s new policy positions at the Winter Business Meeting.
providing the necessary data to monitor performance, measure improvements and implement cost-effective improvements in buildings. Many building owners, however, lack access to energy consumption data for separately metered tenant spaces in their buildings and, since the tenant—not the building owner—owns the data, most utilities will only provide tenant energy consumption data to the owner/manager with the permission of the tenant. In a large building with many separately metered tenants, it just isn’t practical to obtain potentially hundreds of signatures. BOMA’s position states that utilities must provide whole-building energy consumption data (units of usage) to building owners and managers. Ideally, utilities should utilize EPA ENERGY STAR® automated benchmarking services that allow them to upload energy consumption data directly into the ENERGY STAR® Portfolio Manager benchmarking tool. The inability of commercial building owners to access whole-building energy data, including energy consumption data in separately metered tenant spaces, restricts the capacity of both building owners and
• “Race to Green” for state and municipal governments that streamline regulations and attract private investment for retrofit projects. • The Better Buildings Challenge. • Training the next generation of commercial building technology workers. The Obama Administration reached out to BOMA International and its industry partners for guidance in crafting many of the key points of the initiative. BOMA looks forward to working with Congress and the Administration to make President Obama’s goals a reality—and to show them that BOMA members are well under way and have been for years. In 2007, BOMA International launched the 7-Point Challenge, which asked members to reduce energy consumption by 30 percent by 2012. To date, organizations representing three billion square feet of office space have signed onto the Challenge and are already transforming the marketplace.
Continued on page 10
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The BOMA Magazine March/April 2011
The U.S. Department of Labor (DOL) has issued a Proposed Rule that would expand the definition of “fiduciary” as defined under the Employee Retirement Income Security Act (ERISA) of 1974, which would adversely impact the commercial real estate industry. ERISA was established to set minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans. Under the current definition, an adviser is only considered a “fiduciary” for ERISA purposes if it provides advice on a regular basis based on the mutual understanding with the client that the advice will serve as a primary basis for the plan’s investment decisions and the advice is individualized for the needs of the client. The proposed expanded definition would eliminate the “regular basis” and “primary basis” tests. BOMA International joined a comment letter with others from the commercial real estate industry, indicating that this change is overbroad and will most likely lead to increased costs for benefit plans in need of real estate-related services with little corresponding benefit. It could also lead to many real estate service providers becoming reluctant to do business with benefit plans altogether.
BARTLETT. BEcAusE cusTomER sERvicE, jusT LikE TREEs, shouLd BE A BREATh of fREsh AiR. FASB and IASB Told Accounting Standard Sufficient In late January, Financial Accounting Standards Board (FASB) Chairman Leslie Seidman addressed the current status of the FASB and International Accounting Standards Board (IASB) joint exposure draft that, if implemented, would completely revamp the way leases are accounted for by both lessees and lessors. She indicated that they had received approximately 750 letters, most of which expressed concern that the lessor account is not broken. BOMA International joined that chorus of concern with 35 other organizations in a Dec. 8, 2010, letter to the chairman. FASB and IASB have targeted June to release a final standard; however, a delay for its release is still possible. BOMA International will continue to keep members updated on possible amendments to the standard.
BOMAPAC Scores Hole in One Thank you to all the BOMA members who braved cooler than expected weather to participate in the BOMA/ Orlando golf tournament at the Winter Business Meeting. With the help of 56 golfers, BOMA/Orlando was able to donate $6,300 to BOMAPAC. BOMA’s non-golfers also stepped up, raising another $7,500 through direct donations to BOMAPAC—a good start to meet the 2011 fundraising goal of $100,000! Although it was almost too close to call, congratulations go to the winning foursome (pictured, opposite left) of Jeff Marquis, Brian Harnetiaux, Rich Mulkerrins (who also wins kudos for straightest drive) and Jack Spiegelman. Other notables include Melissa Zoccola (closest to the pin) and Ken Gibson (longest putt).
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state & local update in this important step as a means to effectively show that market transformation is working. For more than 90 years, BOMA has gone to great lengths to ensure that members’ data submitted for BOMA’s Experience Exchange Report® (EER) is kept confidential in the data collection and reporting processes. EER data is reported only in the aggregate, and no one outside of key BOMA staff has access to individual building information. This has earned BOMA International the industry’s confidence, and data shared with the BOMA Master Account through Portfolio Manager is treated similarly to EER data. BOMA does not identify the submitters by name or location within a market, and all published data is aggregated to keep this information confidential. A key component of the BOMA STARS initiative is to provide BOMA local associations with the necessary tools to educate their members on the benefits of energy management benchmarking. Many local associations are already encouraging
Commercial Real Estate Reaches for the STARS BOMA INTERNATIONAL HAS LAUNCHED A NEW INITIATIVE, BOMA STARS, to promote the importance of benchmarking energy management data using the U.S. Environmental Protection Agency’s ENERGY STAR® Portfolio Manager and sharing that data with BOMA. By agreeing to share their energy management progress, BOMA members help show policymakers that the commercial real estate industry can reduce energy consumption without new mandates and demonstrate the effectiveness of the voluntary marketplace. The BOMA STARS campaign recognizes those companies that see the value
benchmarking through voluntary energy competitions, and the BOMA STARS initiative complements those efforts. In fact, educating members through BOMA STARS helps them get one step closer to earning the BOMA International 360 designation, meeting the
Here’s how you can become one of the BOMA STARS …
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S Share your data with BOMA International and achieve recognition as one of the BOMA STARS. Learn more at www.boma.org.
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The BOMA Magazine March/April 2011
requirements for International TOBY and the 7-Point Challenge or receiving the ENERGY STAR® label—all of which require ENERGY STAR® benchmarking as a prerequisite. Let’s work together to quantify our energy reductions before governments start placing mandates on the voluntary marketplace. For more information on the BOMA STARS initiative, visit www. boma.org or contact James Cox at jcox@ boma.org.
preparedness information and building relationships with public/private entities at all levels of government are just some of the projects that BOMA/ San Francisco’s Emergency Preparedness Committee has been working on since it was founded. The committee has an average monthly attendance of 35-40 members—most of whom are property managers. The public sector is also well represented. BOMA/San Francisco’s mission is to advance the commercial real
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estate industry through advocacy, professional development and information exchange, and its Emergency Preparedness Committee does this in spades.
BOMA Local Associations Recognized for Advocacy Excellence In February, BOMA International’s State Government Affairs Committee recognized BOMA/Suburban Chicago and BOMA/San Francisco for their commitment to protecting the commercial real estate industry through advocacy at the 2011 Winter Business Meeting in Orlando, Fla. BOMA/Suburban Chicago was honored in the Outstanding Program or Seminar Category for the association’s holistic approach to its advocacy program. The driving force behind the association’s program is its Government Affairs Committee, which is charged with devising and implementing the overall advocacy plan. Part of this involves assessing the issues that impact the industry in Chicago’s suburban commercial office market and offering programs tailored to its members. The association hosts a regular series of Advocacy Breakfasts, featuring presentations with elected officials. Member communication is integral to a program that strives to do more with less. All newsletter and member updates are sent electronically or hosted on its website. Combined with its continued dedication to BOMA International’s National Issues Conference, BOMA/Suburban Chicago provides its members with a first rate opportunity to bring commercial real estate’s issues to policymakers. BOMA International recognized BOMA/San Francisco’s Emergency Preparedness Committee in the Outstanding Government Affairs Committee category. Preparing for an emergency is one of the most important issues for BOMA members in earthquake-prone areas. Business continuity, testing emergency plans in buildings, educating members through committee-sponsored workshops, communicating emergency March/April 2011 The BOMA Magazine
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Codes & Standards Update
BOMA Urges Caution in Consideration of Green Construction Codes
STATE AND LOCAL GOVERNMENTS throughout the country are racing to “get green”—and nothing exemplifies that more than the rush to implement green building regulations. Adoption of a green building code without the involvement of a broad cross-section from the real estate and construction industries and careful consideration of the potentially damaging impacts on the economy, however, can produce disastrous results. BOMA, therefore, urges local and state jurisdictions to exercise extreme caution and to keep these important points in mind:
• Ensure the code under consideration has been fully vetted through the consensus process. The green code developed by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)—Standard 189.1 for commercial buildings—is such a consensus document. That’s not the case for Version 2.0 of the International Green Construction Code (IgCC). The IgCC is a DRAFT document that has not been fully vetted in
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The BOMA Magazine March/April 2011
the ICC consensus process. Final stages of development will take place during 2011, including two public hearings and final approval by ICC voting members. The Draft IgCC will undergo a series of modifications; more than a thousand code change proposals submitted by hundreds of interested groups and individuals, including BOMA, must be considered and balloted. The first edition of the IgCC is then scheduled to be available in early 2012.
• Compliance with green codes should apply only to projects seeking recognition as more efficient and sustainable than those meeting current minimum codes. BOMA policy opposes the adoption of green/sustainable building codes intended to apply to all newly constructed buildings, or to all tenant finish-out, additions and major renovations to existing buildings. In fact, the currently available green codes were never intended to apply to all buildings. They were expressly intended for buildings and projects designated as “green” by
voluntary green building programs or rating systems, or as required for such projects as government buildings or those seeking recognition in the market as more sustainable and efficient.
• Do not implement a green building code as a substitute for current mandatory energy code requirements. Green building codes are, by definition, more stringent than other model codes intended for adoption as minimum requirements. This is especially true for requirements related to energy efficiency. ICC’s International Energy Conservation Code (IECC), currently adopted by many local governments, is an example of a minimum code. But, ASHRAE Standard 189.1 contains requirements that achieve additional energy-efficiency levels of 15 to 25 percent over the IECC. The additional cost associated with these requirements can easily represent a negative impact on economic growth and the state and local tax base.
BOMA will work with other commercial real estate interests on the committee to ensure this next generation of green codes contains requirements that are technically achievable, reasonable and not cost-prohibitive.
Committee is developing the new Mixed Use Standard under the leadership of Chairperson Kathleen DiValentin, senior space analyst with the design department of the Corporate Office Properties Trust. The Mixed Use Standard has become necessary as more and more buildings are designed, built and altered to accommodate multiple uses. The task group is on track to complete work on the standard this spring.
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Work Starts on the Next Editions of ASHRAE Energy and Green Building Standards Work plans for the development of the 2013 editions of ASHRAE Standards 90.1 and 189.1 were recently finalized and both Standing Standards Project Committees (SSPC) are hard at work to reach aggressive schedule milestones. BOMA holds an organizational voting seat on both committees and is involved in numerous work groups dealing with specific areas of both codes. SSPC 90.1 has set a target of 50-percent energy savings for buildings complying with the 2013 edition vs. a building built to 90.1-2004. As BOMA pointed out in opposing this overly aggressive goal, reaching the 50-percent efficiency threshold will require prohibitively expensive measures, such as mandatory renewable energy system installation on all buildings, unworkable levels of wall and roof insulation, advanced glazing systems and the installation of HVAC equipment with efficiency levels far beyond current federal guidelines. The work plan for SSPC 189.1 calls for the publication of a 2011 interim edition, as well as the regularly scheduled 2013 edition. Many advanced system provisions have already been proposed to the committee for consideration and
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leading the way
Robert M. Brierley Boston CRE Guru, Aspiring Sports Broadcaster
AS VICE PRESIDENT OF OPERATIONS FOR THE BOSTON REGION for Brookfield Office Properties, Robert Brierley makes it his job to know the Boston commercial real estate market inside and out. A big part of his success comes from his affiliations with groups like BOMA/ Boston, where he served as president in 2007 and 2008, and the Greater Boston Real Estate Board, where he is currently treasurer. Buildings Brierley oversees are among his market’s top performers, having obtained TOBY® awards, ENERGY STAR® ratings and LEED certifications. He is a current member of the Executive Committee of BOMA International.
During your two terms as president of BOMA/ Boston, membership and revenues increased. What was your secret? Our success was a direct result of our not keeping membership recruitment a secret. When I became president in 2007, the first mandate I established was to grow local membership. I was fortunate to have a fantastic leadership team around me, and having their support was critical. At the end of my term in 2008, we increased our membership from 440 to 560 and pushed annual revenues beyond $1 million for the first time. We achieved our membership goals by setting up face-to-face meetings with each of the major Boston area real estate owners and managers to present what BOMA was all about. We also created a task force to develop ideas to recruit a younger and more diverse membership. From this task force, we formed two of our most successful committees: our Emerging Professionals Committee and our Engineering Committee. I also wrote an article called “Consider Yourself Asked,” inspired by conversations I had
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The BOMA Magazine March/April 2011
had over the years with individuals who said they never joined BOMA because they had never been asked. We changed that; we asked!
You worked closely with BOMA in its successful initiative to halt an increase on the carried interest tax. How important are these tax issues going forward? Although we seem to be on the road to recovery, tax issues, such as the carried interest tax, can have a significant impact on real estate investment. Increasing the tax rate on commercial real estate may lead to less entrepreneurial risk taking in less affluent and underserved markets where investment is needed most. A higher tax rate on carried interest would also negatively impact the small real estate entrepreneurs who may not have the same negotiating leverage as larger firms. Congress should be looking at ways to encourage, not hinder, business investment and job creation.
How can today’s property professionals best retain and attract tenants? Having competitive rental rates and minimizing operating expenses while maintaining quality service levels are paramount. But beyond that, building and solidifying personal relationships are key drivers in tenant retention. People prefer to do business with people they trust and respect, so it is important to communicate with your customers on a regular basis. For both existing and new tenants, we should be actively promoting the successes we have achieved. Participating in organizations, such as BOMA, and achieving designations,
certifications and awards—such as ENERGY STAR, LEED, EER, BOMA 360 and TOBY—take commitment and hard work by the property team; we should communicate those achievements.
How do we attract more young professionals to this industry and to BOMA? We start by developing a comprehensive outreach program that brings us to the college campus and the students to our buildings so they can better understand what a career in real estate is all about. We also need to enhance our communications efforts to speak in the same language and via the same mediums, such as social media. At both the local and international level, we should be establishing emerging professional and engineering committees to create forums for young professionals. I also think BOMA International and the BOMA locals should be reviewing our current membership pricing schedules to identify a mechanism to offer discounted membership pricing for young professionals (property managers and engineers) as a means to introduce everything BOMA has to offer.
What do most people not know about you? My initial career aspiration was to be a sports broadcaster, but being young and naïve, I gave up on that dream because of a strong New England accent (some say it’s a Boston accent, others say it’s a New York accent; it’s actually Rhode Island). Only later in life when I moved to Boston did I hear radio personality Eddie Andelman, who had a quintessential Boston accent, on a Boston sports radio station. Of course, Eddie Andelman had a very long and successful broadcasting career and is quite wealthy. Go figure.
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finish floor to the centerline of the sign. Note: your signage should be mounted so that a person may approach within 3 inches of the sign without encountering protruding objects or standing within the swing of the door. • Finish and contrast – When choosing colors and finish for your signage, go with a matte or other non-glare finish. Furthermore, signage characters must contrast with their background with a minimum contrast of 70% – either light letters on a dark background or dark letters on a light background allowing for clear visibility. • Raised and brailled characters – The regulations have expanded for raised and brailled characters. New regulations require characters to be raised a minimum of 1/32 inches, upper case, sans serif or simple serif type and should be accompanied with Grade 2 Braille. Raised characters shall be at least 5/8 inches high, but no higher than 2 inches. Information provided by: access-board.gov.
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PAUL Fleming Photography
Around the industry
AOBA 2010 President Katya Naman hands the gavel over to AOBA 2011 President Ben Comm.
D.C. Tops in New Jobs AT THE ANNUAL MEETING of the Apartment and Office Building Association of Metropolitan Washington (AOBA) this past January, economist Sandy Paul, national research director, Delta Associates, discussed the D.C. Metropolitan’s economic strength in relation to the rest of the United States. Paul stated that the D.C. area added the most jobs in 2010 at 57,500, more than any other large metro area, with jobs in education/health, professional/business services and the federal government leading the way. Dallas/Fort Worth and Boston came in second and third, with approximately 39,000 and 37,000 new jobs added, respectively. The overall office vacancy rate in the D.C. area at yearend 2010 was 11.9 percent, the third lowest vacancy rate just behind Boston and New York City and well below the 14.6-percent national average. A highlight of the annual meeting was the installation of Benjamin A. Comm, managing director, Cassidy Turley (pictured, above), as 2011 AOBA president. In discussing AOBA’s priorities for the coming year, Comm said, “We will continue our critical focus on effective advocacy and helping our members meet their sustainability goals—with an eye toward reasonable, smart green policies.”
Sustainable Strategies in One Click
The U.S. General Services Administration (GSA) recently launched an interactive online tool that will help building managers identify and prioritize cost-effective strategies to make office buildings and workplaces more sustainable. The Sustainable Facilities Tool, www.sftool.org, makes it easy for both government and privatesector property managers to learn about sustainable practices and compare options for their renovation projects.
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The BOMA Magazine March/April 2011
Report Cites 10-Percent Increase Per Month in Commercial Property Sales A recent report released by J.P. Morgan signals an improvement in commercial real estate fundamentals. According to the analysis, U.S. commercial property sales transactions have been rising by 10 percent per month recently, though transactions are still down significantly since the peak in early 2007. Signs of optimism extend to the office sector, where the report shows vacancy rates decreasing after peaking in 2009. It also shows new office demand surpassing supply in the second half of 2010. Office development, however, is still sluggish. The office sector will experience strong rent recovery during 2011 and 2012, due to growth in technology, new media and finance-dependent markets. For more information, visit www.jpmorgan.com.
Kimberly-Clark Professional* to Sponsor TOBY Awards BOMA International is thrilled to announce that Kimberly-Clark Professional* has signed a four-year agreement to serve as sole sponsor of BOMA’s prestigious The Outstanding Building of the Year (TOBY®) Awards program, starting January 2011 through June 2014. Additionally, Kimberly-Clark Professional* will sponsor the TOBY Awards Banquet at the BOMA International Conference, beginning in June 2011 through June 2014. The TOBY Awards Program is the preeminent commercial real estate award for recognizing excellence in building management, operational efficiency, tenant retention, emergency planning and community impact. The BOMA TOBY Awards Banquet is the “Oscars” of commercial real estate, serving as the capstone to the BOMA International Conference. In addition to this highvisibility sponsorship, Kimberly-Clark Professional* supports BOMA International at its highest level as a Cornerstone Partner. Learn more about Kimberly-Clark Professional* at www.kcprofessional. com/us.
‘A TEAM’ COLLABORATIONS
Focus on Industry Alliances: ASHRAE By Ron Burton
BOMA Chair Ray Mackey, Jr. with ASHRAE President Lynn Bellenger at ASHRAE’s 2011 Winter Meeting in Las Vegas.
THE AMERICAN SOCIETY OF HEATING, REFRIGERATING AND AIR-CONDITIONING ENGINEERS (ASHRAE) is a professional society of leading heating, ventilating, air-conditioning and refrigeration professionals. Founded in 1894, it is an international organization of 174 chapters with 51,000 members in 137 countries. ASHRAE’s mission is to advance technology to serve humanity and promote a sustainable world, and a core ASHRAE function is the development of 119 industry standards and guidelines to further the goals of the Society. Like other building codes and standards development organizations, ASHRAE produces model documents that are the basis for building regulations employed by many federal agencies and most state and local governments throughout the United States. A number of ASHRAE standards have a significant impact on the commercial real estate industry, including those dealing with energy efficiency, indoor air quality, building automation and control, maintenance of HVAC systems and green buildings. BOMA’s involvement in ASHRAE’s standards development process is an important part of its overall advocacy program. As part of that effort, BOMA has for years been involved in the development of a number of ASHRAE standards, none more so than Standard 90.1 (Energy Standard for Buildings Except Low-Rise Residential Buildings), which has been in continual development since the first oil crisis in the early 1970s. Standard 90.1 is widely used in the design and construction of commercial buildings throughout the United States, is referenced in the energy-efficiency codes of most state and local building regulations and is cited as the benchmark commercial building energy standard in federal statutes. BOMA uniquely represents the
existing building stock in the standards and codes arenas and those efforts are very tangible, saving the industry $7 billion in unnecessary proposals.
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Standard 189.1—A Turning Point ASHRAE’s decision in 2006 to develop a green/sustainable building code— Standard 189.1 (Standard for the Design of High-Performance Green Buildings)— energized the relationship between BOMA and ASHRAE and led to the close partnership the two have today. ASHRAE and BOMA senior staff and officers initiated an ongoing series of strategic discussions on the most effective ways to develop Standard 189.1 and other critical ASHRAE standards. New procedures were also instituted in the ASHRAE standards development process to ensure participation by all affected interest groups in critical standards designed for use in building regulations. As a result, BOMA was actively engaged in helping to bring Standard 189.1 to market in late 2009. BOMA is involved in the continuous maintenance of this standard through the membership on the 189.1 project committee of BOMA Vice President for Codes, Standards & Regulatory Affairs Ron Burton and BOMA/New York member Ernie Conrad, P.E., LEED AP.
BOMA/ASHRAE Partnership The conversations that began with BOMA’s concerns about specific ASHRAE procedures subsequently led to a broad Memorandum of Understanding (MOU) signed by then BOMA Chair Brenna Walraven and ASHRAE President Kent Peterson in February 2008. The MOU focuses on opportunities for collaboration between the two organizations to advance superior performance in both new and existing buildings. Recent initiatives highlight the importance of this partnership and ongoing
The BOMA Magazine March/April 2011
efforts to effectively represent BOMA members and the broad commercial real estate industry: • BOMA participated in an ASHRAE advisory group empaneled by 20092010 ASHRAE President Gordon Holness to develop recommendations on the role of energy-efficiency targets in energy and green building standards. • BOMA helped broker a landmark agreement between ASHRAE and the International Code Council to collaborate on the development and marketing of national model green building codes. • 2010-2011 ASHRAE President Lynn Bellenger served as a member of the initial BOMA 360 Performance Program Council, and she has continued to foster a close relationship between BOMA and ASHRAE leaders. • BOMA is a cooperating sponsor for ASHRAE’s series of Advanced Energy Design Guides. • BOMA is a member of ASHRAE’s Building Performance Metrics committee charged with defining recommended measures for recording and reporting energy and sustainability outcomes. Recently, BOMA President Henry Chamberlain was given a tour of ASHRAE’s newly renovated headquarters in Atlanta by ASHRAE Executive Vice President Jeff Littleton. The building is a fascinating “living lab” for ongoing studies of energy consumption; ventilation and indoor air quality; and other sustainable practices. It is also a testament to ASHRAE’s goal to help drive performance by understanding the science. More information on how this building operates can be found through a guest login in the “renovation link” at www. ASHRAE.org.
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DEFERRED MAINTENANCE AND CAPITAL IMPROVEMENTS
BOMA • Kingsley REPORT
BOMA Kingsley REPORT
Practical Industry Intelligence for Commercial Real Estate
DEFERRED MAINTENANCE AND CAPITAL IMPROVEMENTS Spring 2011
Preparing for Recovery
Strategies for Deferred Maintenance and Capital Improvements By Lindsay Tiffany Increase income, decrease expenses. This has been the mantra for many over the past few years amidst soaring vacancy rates and plummeting asset values. As employment reports grow more optimistic and lending activity picks up, property professionals are now concerned with how to best position their assets for success once the market recovers. Management companies and building owners are grappling with the question of asset value preservation in different ways, especially when it comes to deferred maintenance and capital improvements. Some are performing improvements that will attract tenants and pay back in the long-term. Others are focused on balancing deferred maintenance with cost constraints. Many are facing a backlog of deferred maintenance, first because of the buy-and-flip cycle in the boom years mid-decade, followed closely by the market downturn. So what’s the winning strategy?
Meeting Tenants’ Needs One thing everyone is focusing on is tenant retention. “Preparing for the turnaround is about keeping the income you have in place now and making sure that you are leading the market— beating the market—to increase your occupancy,” comments Joe Markling, managing director, Asset Services and Strategic Accounts Group, CB Richard Ellis. “If people wait too long for the market to recover, they are going to miss that revenue stream.” Measuring tenant satisfaction, both formally through surveys and informally through face-toface interaction with tenants, is critical. It can also help property professionals prioritize what capital improvements to make. Notes Ginny Carita, vice president of property management, Advance Realty: “If you understand what your tenants’ issues are, you can determine what type of capital improvements you might need to make. A lot of times when we’re looking at capital improvements, we’re also looking at ways to reduce operating expenses so it’s a win-win for both tenant and owner.” Anticipating what prospective tenants are looking for is another important aspect to take into Continued on page 24
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“A lot of times when we’re looking at capital improvements, we’re also looking at ways to reduce operating expenses so it’s a win-win for both tenant and owner.” —Ginny Carita, Vice President of Property Management, Advance Realty consideration when approaching capital improvements and deferred maintenance. “With everybody scrambling for the same pool of potential tenants, you have to understand your tenants’ needs and either meet these needs with your current facility or upgrade,” says Larry Schoen, P.E., president and principal engineer, Schoen Engineering. Existing buildings that were built more than 15 years ago face an even greater challenge. “The latest waves of development have set new standards for what a good asset is. One of the challenges that a lot of owners face is how to prepare their assets to match or at least approach, in class and in expectations, those buildings that have newer floor plans, newer mechanical systems and are greener,” says Chris Hipps, managing director, Transwestern. “Owners and managers need to develop a fiveyear capital plan that reflects potential changes in the market from a demand perspective in order to prepare their asset for the future.”
Prioritizing Where to Spend With a limited budget and, in many cases, a number of pressing issues, property professionals must make tough choices about what to invest in
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and what to put off. Dovetailing with the tenant retention theme, many say addressing the improvements that tenants see day-to-day go to the top of the list—areas like lobbies, common areas and parking garages. Things that tenants don’t see, like the roof, can be patched up for a year or two until more capital is freed up, as long as it does not affect tenants. Enlisting building engineers and thinking creatively are two strategies that have worked for Carita. “The engineers are really the ones on the ground and we bring them into the discussion right from the beginning,” explains Carita, who recalls one instance where building engineers came up with a creative solution that helped avoid craning an HVAC unit into a 26-story building. Instead of replacing the entire unit, the engineers suggested using the HVAC unit’s existing framework and just replacing the individual parts, which saved money and avoided downtime. Investing in technology has also proven to be a successful strategy for Advance. In one building, the company reduced security staff by installing turnstiles to the elevator banks, a glass curtain wall from the main lobby to concourse and additional card access readers, as well as implementing a delivery and tenant/guest visitor check-in
“I try really hard with my teams to get them to think about the motivations of the people who own the building so that they can package things in a way that works for them.” —Joe Markling, Managing Director, Asset Services and Strategic Accounts Group, CB Richard Ellis
The BOMA Magazine March/April 2011
system. The payback for this work was one year and one month and they were able to amortize the cost of the capital back into the operating expenses. For portfolio managers, having a portfolio capital plan helps prioritize what improvements and maintenance to fund. “You do a triage—we call it a ‘capital triage’—where, just like with a hospital, we ask the question what do we absolutely have to do to maintain safety and occupancy? What do we need to do to be more efficient? What do we want to do?” says Markling. “Once we answer those questions, we overlay that onto a whole portfolio-wide plan and start moving things around a timeline to deal with the cash implications.”
Enlisting Service Providers Many are turning to vendors for help. With their technical expertise and depth of knowledge, service providers can often propose solutions that save money and prolong equipment life until a bigger budget for maintenance or capital improvements is available. Because of the deep relationships that develop between vendor and property manager, most vendors are more than willing to be flexible. Hipps has seen vendors’ flexibility firsthand. “We’ve said, ‘We really need to do this, but we can’t afford it right now.’ The vendor will then sit down and work with you,” he says. “It’s about both parties working collaboratively to make a project successful. They have skin in the game and are willing to get the project priced right, designed right and valueengineered so that it takes shape.” ThyssenKrupp’s Director of Repair Development Stephanie Petkers agrees: “What we’re working towards is a longterm partnership so, if there is something that we can do to help a customer in the short-term, we are more than happy to do that.” Petkers adds that communicating with property managers and tailoring options to meet their needs have been cornerstones of their success throughout the down cycle. “We are taking a more consultative approach
DEFERRED MAINTENANCE AND CAPITAL IMPROVEMENTS
BOMA • Kingsley REPORT
with our customers and are really trying to understand their needs. In cases where capital is tight, we look at how we can make only essential upgrades to the equipment for now and delay the rest until they get it in their budgets.”
One Size Does Not Fit All Important to note when considering deferred maintenance and capital improvements is that the right strategy depends on the building owner’s needs and priorities. A short-term holder of real estate, a REIT and an institutional owner are all going to have a different approach when it comes to deciding what to invest in and what to defer; it’s an apples-to-oranges comparison. Shelby Christensen, senior vice president and national director of property management at Liberty Property Trust, explains that, because her company is a long-term holder of real estate, it does not have deferred maintenance. “We’re in it for the long haul so we do not have deferred maintenance from this cycle,” she says. “Instead, we have worked aggressively to control costs and stretch every dollar we do have. We want to maintain a high-performance portfolio because our investors and tenants are judging us on the quality of our real estate.” Christensen created a strategic plan to decrease the company’s two largest operating expenses: electricity and taxes. Liberty appeals real estate taxes as a normal course of business, but this past year it was even more aggressive. Liberty gave each city a goal and was successful in getting more than $4 million in reductions for the 2010 tax year. As for electricity, Liberty worked with tenants to employ low- and no-cost, energy-efficiency measures and diligently benchmarked energy consumption through ENERGY STAR® Portfolio Manager. Those energy-efficiency efforts have helped Liberty reduce energy consumption by 10 percent since 2008, translating to about $3.5 million in savings for tenants.
5 Things You Should Be Doing Right Now … to Position Your Building for Recovery By Laura Horsley Although no one is predicting a rapid recovery for commercial real estate, encouraging signs—such as small dips in vacancy rates, an uptick in GDP and job growth and news of financing opening up and deals getting done—are encouraging. But as the marketplace begins to rise from the depths of the recession, so too do the expectations of tenants and prospective tenants. Will your building meet those expectations? Here are five things you need to be doing to ensure you keep the competitive edge. 1. Make a Good First Impression. Don’t defer maintenance on the important things, but also don’t defer maintenance on the obvious things. Lobbies, common areas, parking garages—these are the areas of your building that will make or break that all-important first impression. 2. Don’t Forget Your Ounce of Prevention. Be sure to keep up with your preventive maintenance schedule, and, if it’s out of date, whip it back into shape. Keeping up with repairs and maintenance on a day-to-day basis can save you from surprise equipment breakdowns and unexpected capital expenditures. 3. Be All Ears to Your Engineers. From the boiler room to the rooftop and everywhere in between, your building engineer knows and understands your building’s systems and operations better than anyone. When confronted with capital improvement decisions, repair issues or if you simply need good counsel, call in your in-house expert. 4. Keep Harvesting That Low-Hanging Fruit. Have you changed out your inefficient lighting, added those motion sensors, instituted afterhours and weekend HVAC power downs or reduced landscaping water consumption by replacing sprinklers with soaker hoses? These no- and low-cost green strategies save money, save energy and can give you the green thumbs up with tenants. 5. Benchmark, Benchmark, Benchmark. It may be a cliché, but it’s true: You can’t manage what you don’t measure. Benchmarking your building’s performance—energy and water usage, expense and income data—lets you know exactly where you stand in your market and gives you the tools and insight to track and improve performance. Resources BOMA’s 2010 Preventive Maintenance Guidebook, http://shop.boma.org ENERGY STAR® Portfolio Manager, www.EnergyStar.gov Experience Exchange Report (EER), www.BomaEER.com
Continued on page 26
March/April 2011 The BOMA Magazine
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BOMA • Kingsley REPORT
DEFERRED MAINTENANCE AND CAPITAL IMPROVEMENTS
Markling’s clients include REITs and institutional owners. “Certainty and consistency of cash flow are what it’s all about for REITs. If you really need capital, especially something that affects occupancy, they will give you the capital that you need. You just have to budget for it and then manage the scope and timing because they are very concerned with month-to-month cash flow,” he says. Markling stresses the importance of tailoring the capital plan for each type of owner. “The institutions are more value
conscious. They are trying to build occupancy for value creation, not necessarily for cash flow. So they are more apt to look at things like payback,” he notes. “I try really hard with my teams to get them to think about the motivations of the people who own the building so that they can package things in a way that works for them.” When it comes down to it, every building is different, as are the goals of its owners and investors; the right strategy really depends on a number of unique variables. For some companies,
a long-term strategy means planned capital expenditures are the norm, as long as cash flow remains consistent. Others may have to defer some maintenance and will focus on critical need and highly visible areas. All are partnering with vendors to lower costs and establish the smartest plans for their asset—and hoping the recovery picks up steam. The BOMA•Kingsley REPORT is written and published in conjunction with Kingsley Associates, www.kingsleyassociates.com.
BOMA•Kingsley Update: Easier Being Green? By Phil Mobley In the spring of 2006, our first BOMA•Kingsley REPORT focused on issues of environmental sustainability in the built environment. At the time, green issues were only beginning to impact the industry. In this update, we take a brief look at current views as they relate to building improvements.
Always on the Table There is a pervasive expectation now that building owners, architects, operators and suppliers be conversant with the latest green options. “Most contractors, architects, engineers and vendors are already including these things in their plans, bids and specs,” says Joe Markling, managing director, Asset Services and Strategic Accounts Group with CB Richard Ellis. “It’s always on the list, always discussed.” Shelby Christensen, senior vice president and national director of property management at Liberty Property Trust, agrees. “For every capital project we have, we evaluate the green option. And every new tenant is asking about it in the RFP.” Green is becoming part of the “normal” operations and tenant retention and recruitment processes. Indeed, data from the Kingsley IndexSM shows steady interest in green practices among office tenants in the United States. During 2008, the percentage of tenants indicating that green was “important” to them rose from 54 percent in Q1 to 61 percent in Q4. Despite a troubled economy, this figure held steady through Q4 of 2010.
Growing Sophistication and Education But interest and consideration have not consistently translated into expensive retrofits. Rather, interest has bred increasing scrutiny on and education about green building solutions. Green roofing and the use of alternative fuels are items that can generate a lot of green “points,” but at many buildings (especially existing buildings), there is lower-hanging fruit to pick, says Larry Schoen, P.E., president and principal engineer at Schoen Engineering in Baltimore, Md. “The basics—changing to more efficient lighting
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The BOMA Magazine March/April 2011
and HVAC, turning things off and on more optimally—are still the most cost-effective,” says Schoen. Even less glamorous is what Schoen calls “basic good management”: changing filters, fixing leaks and maintaining equipment properly. “You don’t get points for that,” he explains, “but it’s green because you’re using fewer resources more efficiently.” Casting building improvements in the green context is a growing trend. Whereas in the past, managers may not have actively communicated about using environmentally friendly cleaners or filters that contain recycled materials, today they can tout the green aspect of everything they do. Tenants thus become more educated and managers get a checkmark for being green. Sometimes, far from needing to be informed, the tenants themselves are driving green practices. Ginny Carita, vice president, property management at New Jersey-based Advance Realty, notes that tenants now actively approach management to ask about ways they can participate in conservation measures (and the associated cost savings). “They are much more educated now,” according to Carita. “It’s great that you can get tenants excited about sustainability. It makes it easier to implement green strategies because it often goes to support the tenant’s culture.”
A Business Case As green knowledge and technology increases and as more and more building practices fall under the green umbrella, buildings are becoming more sustainable. But it would be inaccurate to suggest that green activity is occurring outside of the cost-benefit context. If anything, the sluggish economy has driven certain green practices precisely because such practices produce a financial payback. Today’s owners and operators are constantly looking at options—and then making the best long-term business decisions for both themselves and their customers. “Am I going to get approval for a green roof today?” asks Advance’s Carita. “Probably not. But will it be reevaluated next year and the year after? Absolutely.” “Our job is to justify our actions—financially, sustainably and operationally,” says CBRE’s Markling. “We have to look at all three.” More and more, building stakeholders are finding ways to work together to bring those three aspects into alignment.
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Answers for infrastructure.
Keeping What’s Behind the Scenes Up Front The Building Engineer’s Role in Preventive Maintenance By Larry Schoen commissioning can be part of this quality control process) and PM program, the quantity and magnitude of problems will be manageable and yield to resolution. The old adage, “an ounce of prevention is worth a pound of cure,” is still true.
The Three ‘R’s’
Does anybody really know what it takes behind the scenes to keep a building comfortable and healthy? Does anybody really care? They should. Polished marble, gleaming stainless steel and crystal glass make a great first impression and are as important as neat and clean clothing. But, if behind the clothing of a building engineer there is not the sure, steady arm and mind to direct it, the shiny surfaces may conceal elevators and HVAC that fail to function. I chose these two examples deliberately. In studies of what building occupants want and what they complain about when they don’t get it, elevators and thermal comfort are always at or near the top of the list. The relationship, communication and mutual trust and understanding among building engineers, management and occupants are critical to a smoothly functioning building. Just the other day, I witnessed a successful partnership when I re-visited a newly constructed suite 10 months after occupancy. This was part of the required LEED® enhanced commissioning process. My job in this case was made easy because occupants had reasonable expectations for comfort. When these expectations weren’t met, they communicated the problem to building management, who, in turn, communicated them to building engineers and also supported the engineers with resources to troubleshoot and resolve them. The thermal comfort problems were relatively minor because they were solved quickly. Variable Air Volume (VAV) boxes were in the “gray area” of responsibility by the remodel contactors since they existed before the work. The boxes needed adjustments and minor repairs even after air balance to provide optimum thermal comfort. Resolution was determined by the occupants who identified the problem from the beginning and were satisfied with the result of the repair. Behind this complaint➜response➜resolution sequence was a preventive maintenance (PM) program to avoid most problems. No space, especially one that is newly constructed, is without problems. With a good start-up (and
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The BOMA Magazine March/April 2011
The absence of a well-crafted PM program will itself produce trouble signs that often include excessive complaints, an increase in time spent on repairs as opposed to prevention and an increase in overall cost (see “Checklist”). The proper response to these signs is to first determine if an effective PM program is in place. This involves looking for the quality of the three “R’s”: Records, Repetition and Resolution. Records of tasks completed and perspective are needed because nobody’s memory is perfect and none of us works alone. One shift needs to know what the last one did and a record of refrigerant added over time will point to the need for leak repair (not to mention EPA requirements). Repetition of tasks on a regular basis, as boring as it might sound, is an essential part of routine maintenance. Checking temperature and pressure on a regular basis is as important as changing filters and cleaning coils. Resolution is the tracking to completion of anomalies and problems found during the PM activities, from occupants, by an automation system or from any other source. Resolution of minor problems prevents them from becoming major ones.
The Role of the Building Engineer The word, engineer (literally, one who operates a clever device), is related to the root word for ingenuity, the quality of being cleverly inventive or resourceful. In today’s tight times for property management, we need that more than ever. Some clever ways to leverage time and money that I have seen building engineers use include the following: • Differentiate between large and small, critical and non-critical equipment and tailor the frequency of preventive maintenance
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•
accordingly, i.e. work smarter, not harder. Know when the learning curve for a new or unfamiliar task is too steep and an outside contractor should be called. Use slow times for training, taking previously outsourced tasks in-house and shopping for better suppliers. Use predictive maintenance procedures to optimize task frequency based on run time, vibrations signatures, oil analysis and other indicators (see “Predictive Maintenance” sidebar). Use the “poor man’s” computerized maintenance management: off-theshelf software, such as calendars for scheduling, address books and spreadsheets for task tracking. Use online searches for literature on equipment—even old equipment manuals are found on manufacturers’ websites. When a space is empty, of course turn the lights off and HVAC down, but continue to monitor it to avoid
freezes and leaks; exercise equipment and periodically walk through the vacancy. See BOMA’s new Preventive Maintenance Guidebook for more strategies. All parties must work to keep a building running well. Building engineers must continue to use such ingenuity to complete their work in a manner that is smarter, not harder; building management must continue to support engineering staff with resources, training and regular feedback; and occupants must continue to play their role by having reasonable expectations and complaining (yes, complaining) when they are not met. All parties must have open, thoughtful and complete communication. About the Author: Larry Schoen is president and principal engineer of Schoen Engineering Inc. in Columbia, Md., an international MEP building services consulting firm. He specializes in sustainability and indoor environmental health, meeting engineering challenges in existing and mixed use buildings and at the landlord-tenant interface. He can be reached by e-mail at Larry@SchoenEngineering.com.
Checklist: Preventive Maintenance Failure Warning Signs
Thermal Comfort Note the use of the phrase “reasonable expectations” in the example outlined in the first few paragraphs of this article. A single condition of temperature, humidity and other thermal parameters will not please everyone all the time. As long as there is one thermostat serving multiple people, not everyone will feel comfortable. In fact, the main document on this subject, ASHRAE Standard 55, Thermal Environmental Conditions for Human Occupancy, targets 80-percent acceptability. In the future, we may have advanced systems that achieve higher levels by giving individual control to occupants in the form of so-called “personalized ventilation,” but right now, without these advanced systems, some level of dissatisfaction is to be expected.
New PM Guidebook BOMA International recently released the Third Edition of its PM Guidebook—Preventive Maintenance Guidebook: Best Practices to Maintain Efficient & Sustainable Buildings, an update of the 2003 version. This new edition contains greater emphasis on predictive maintenance, sustainability, commissioning, use of electronic tools and resources and renewable and recovered energy. It also contains more checklists; has an updated peer-reviewed “Appendix on Building Systems”; and addresses the skill levels building engineers need and what tasks should not be attempted in-house.
❑ Y ❑ N
Does equipment frequently fail, causing service disruptions?
❑ Y ❑ N
Are there frequent calls from tenants or occupants about discomfort or other lack of service?
❑ Y ❑ N
Are repair costs higher than similar facilities?
❑ Y ❑ N
Are repair costs significantly higher than previous years?
❑ Y ❑ N
Are there commonly excessive overtime expenses?
❑ Y ❑ N
Does equipment need to be replaced earlier than expected?
❑ Y ❑ N
Is the system not well-documented; for instance, there is no list of the equipment that needs to be maintained?
• Oil analysis for chillers.
❑ Y ❑ N
On a typical day, is more time spent working on emergency rather than routine repairs?
• Vibration analysis on motors.
❑ Y ❑ N
Is equipment frequently left in condition that looks “unfinished,” with panels open, used materials left on the floor, good materials damaged and other signs of disorder?
• Visual inspection inside equipment using fiber optics without disassembly.
Score one point for each “Yes” answer. 0 points: Likely an excellent PM program in place. 1-3 points: Some improvement could improve the PM system. 4-6 points: PM program improvement needed. 7-9 points: PM program non-existent or needs major improvement.
Learn more or purchase BOMA’s new PM Guidebook at http://shop.boma.org.
Predictive Maintenance Following are examples of predictive maintenance methods often suitable for commercial office facilities. See BOMA’s new Preventive Maintenance Guidebook for more detail on these methods. • Eddy current tests for chiller tubes. • Infrared thermometer and camera observations of electrical components.
• Analysis of machine operation and failure histories over long periods. • Logging temperature, pressure and other equipment performance indicators.
Excerpted from Preventive Maintenance: Best Practices to Maintain Efficient & Sustainable Buildings
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Right: BOMA Chair Ray Mackey, Jr. introduces the BOMA STARS program.
Above: Economic Analyst Eric Janszen. Right: 360 designees take the stage.
BOMA STARS Are Leading the Future Business Plans and Advocacy Positions Solidified at Winter Business Meeting By Laura Horsley BOMA members gathered in Orlando, Fla., January 24-26, for the annual Winter Business Meeting, where they developed business and advocacy strategies to propel BOMA and the commercial real estate industry forward in the coming year and beyond.
Preparing for a New Economy During the Opening Luncheon, sponsored by AlliedBarton Security Services, noted economic analyst Eric Janszen predicted that the “post-catastrophic” economy will ultimately be successful if we focus on transportation, energy, communication and infrastructure. Janszen also predicted that increases in oil prices, and a possible energy crisis, will force commercial real estate professionals to focus even more on building efficiencies, stating, “Let’s not waste this
30
crisis, but push for the solutions to be ready for tomorrow.” The latest class of BOMA 360 designees was recognized during the Opening Luncheon. To date, more than 180 buildings have earned the BOMA 360 designation. BOMA 360 Council Chair Dan Chancey reported on the results of a recent BOMA 360 survey of designees, where respondents indicated that going through the program has helped them document operational savings, attract and retain tenants and implement new policies and procedures.
Town Hall Several issues were on the agenda during the Town Hall Meeting, including a discussion of how this year’s local edition of BOMA’s annual National Issues Conference (NIC) will work. Due to a Congressional scheduling change, most Senators and Representatives will
The BOMA Magazine March/April 2011
be in their home districts during the NIC dates, March 21-25. This change means NIC won’t be happening in one place, but in scores of states, cities and communities across the countries. Local associations will coordinate the meetings with lawmakers while they are in their local districts that week and BOMA International will supply the resources, including talking points, leave behind packets and a “How to Lobby” workshop on March 8 at 2:00 p.m. Eastern Time. BOMA Chair Ray Mackey, Jr. introduced BOMA’s newest initiative—BOMA STARS—during the Town Hall. BOMA STARS encourages BOMA members to benchmark their energy data to ENERGY STAR® Portfolio Manager and share that information with BOMA International to help make the case to legislators that BOMA members are already taking the voluntary steps to reduce energy consumption because it makes good business sense. Learn more about BOMA
Far Left: John Scott, chair, Sustainability and Marketplace Initiatives Taskforce.
Left: BOMA members Laura Ragans and Rick Beaver at the Welcome Reception.
STARS in “State & Local Update,” pages 12-13. Other Town Hall topics included a discussion of Whole Building Data Acquisition (see “Legislative Update,” beginning on page 8) and the evolution of the 7-Point Challenge. John Scott, chair of
BOMA’s Sustainability and Marketplace Initiatives Taskforce, reminded BOMA members that, by endorsing the 7-Point Challenge, they also pledged to benchmark through ENERGY STAR® and share their data with BOMA International. Next year, BOMA will deliver the results of the 7-Point Challenge to lawmakers and will recognize those companies that have made proactive strides in meeting the goals of the Challenge.
PAC and Fun The BOMAPAC Golf Tournament, sponsored by BOMA/Orlando, earned nearly $14,000 for the PAC. Learn more about the golf tournament and all things PAC on page 11 in “Legislative Update.” Attendees also found time to network, relax and have fun during the Welcome Reception, sponsored by Naylor, LLC, and a Calypso-themed Closing Party, hosted by ThyssenKrupp Elevator. Board of Governors continued on page 32
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March/April 2011 The BOMA Magazine
31
Far Left: BOMA President Henry Chamberlain. Left: BOMA Secretary/Treasurer Kent Gibson.
Board of Governors Highlights During the Board of Governors meeting, BOMA Chair Ray Mackey, Jr. announced the approval of membership applications for five new Life Members: • John D. Anderson, CPM, BOMA/ Dallas. • Joseph D. Dobbs, RPA, CPM, BOMA/ Dallas. • Al Horstmann, CPM, BOMA/Dallas. • James L. Johnson, CPM, RBM, RPA, BOMA/Dallas. • James A. Milby, CPM, RPA, BOMA/ Virginia. A new local association—BOMA/Central Pennsylvania—was also approved. During his Report of the Chair, Mackey commented on how BOMA capitalized on a challenging year by listening carefully and responding to the needs of members on a broad range of issues—taxes, energy, building codes, education—while always reinforcing the value of joining and being involved with BOMA. Remarking on his travels and experience as chair, Mackey noted, “Whether you are visiting the local BOMAs in the United States or having the honor of representing BOMA with the Property Councils of Australia and New Zealand, or the Real Estate Roundtable or before codes groups and other industry conferences, you really see how our 100plus associations and $118 billion-plus U.S. marketplace IS leading the future.” BOMA President Henry Chamberlain was presented with a certificate of a resolution from the Board of Governors, thanking him for his dedicated service to BOMA International for more than 25 years and his renewed commitment as BOMA president for the next five years.
32
During the Finance Report, BOMA International Secretary/Treasurer Kent Gibson reported that BOMA had a positive bottom line in 2010 and saw only a twopercent drop in membership; budget predictions had been for a five-percent drop. BOMA Chair Ray Mackey announced the 2010 Local Association EER Participation Awards. Overall Winners: First Prize—BOMA/ Metropolitan Washington; Second Prize— BOMA/San Antonio. 300 Members Plus: BOMA/Houston, BOMA/San Francisco, BOMA/Suburban Chicago. 150 to 300 Members: BOMA/Austin, BOMA/Pittsburgh, BOMA/San Diego. Less than 150 Members: BOMA/Little Rock, BOMA/Southern Connecticut, BOMA/Milwaukee. Susan Engstrom, chair of the State Government Affairs Committee presented the Government Affairs Awards of Recognition (the “Govies”) to BOMA/Suburban Chicago for Outstanding Government Affairs Program or Seminar and BOMA/San Francisco for Outstanding Government Affairs Committee. Read more about the “Govie” winners in “State & Local Update” on pages 12-13. Cary Fronstin, chair of the Industry Defense Fund (IDF) Oversight Committee, reported that 2010 was a busy year for the IDF, with grants supporting the campaign to stop Amendment 4 in Florida, as well as an ad campaign to fight proposed increases on the carried interest tax. BOMA was successful in both campaigns. Active grants for 2011 include: BOMA International, Real Estate Stormwater Coalition; BOMA International,
The BOMA Magazine March/April 2011
Lead Paint; BOMA/Denver, Xcel Energy Case; BOMA/Denver, International Fire Codes; and BOMA/San Francisco, Economic Recovery San Francisco Coalition. Guests included BOMA Canada Chair Wendy Cardell, who reported on programs, initiatives and events of BOMA Canada, including the annual conference and exhibition (BOMEX), which will be held in St. John’s, Newfoundland, Sep. 25-27, 2011. Cardell briefed attendees on the success of the BOMA BESt program, an industry standard for environmental certification for existing buildings, and announced that the national overall vacancy rate in Canada remained in the single digits at the end of 2010 at 8.8 percent. BOMA International Chair Mackey concluded the Board of Governors meeting by saying how he was looking forward to seeing everyone at the BOMA International Conference and The Every Building Show®, June 26-28, 2011, at the Gaylord National Resort® & Convention Center in the world-class National Harbor complex on the shores of the Potomac River in Washington, D.C.
More News from Board of Governors • Read a complete recap of the Year in Review, presented by BOMA Chair-Elect Boyd Zoccola and BOMA Vice Chair Joe Markling, and the BOMA Pulse, presented by BOMA President Henry Chamberlain, in “Trends Tracker,” page 34. • Learn about the two new policy positions passed at Board of Governors in “Legislative Update,” page 8. • Read a more detailed recap of Board of Governors and other highlights of the Winter Business Meeting at www.boma. org.
Top 5 Reasons Why You Must Attend BOMA 2011 1. The Industry’s Best Programming – Bar None
4. Location, Location, Location
BOMA 2011 will be at the fantastic new Where else will you find political guru David Gaylord National® Resort & Convention Center in the National Harbor area of Gergen, finance and investment king Sam Washington, DC—conveniently accessible Zell and real estate strategist extraordinaire by plane, train or car. Dr. Peter Linneman under one roof? Add to that the industry’s best education, and you’ll have a full plate of great ideas 5. Flexible Registration Options and strategies to position you and your We offer affordable options for full organization for success. conference, one-day, team admission and more. And if you’re not 100% satisfied with 2. Your Networking Path to Success your investment at the BOMA International Conference, we’ll refund your registration The best way to come out on top after a fee. The only risk is not attending. recession is to be in the company of the best and the brightest. That’s the company you’ll find at BOMA 2011, where you can network and share ideas with the best minds in commercial real estate.
3. Innovative Solutions at The Every Building Show®
Register for BOMA 2011 today! Visit www.bomaconvention.org
All the leading suppliers and state-of-theart products and services for your buildings will be here—all under one roof. You’ll find solutions to help increase operational efficiencies, enhance property values, reduce costs and boost NOI.
“The BOMA conference shows that the true power of knowledge is sharing—and this is the perfect event for doing just that. The sessions are dynamic, engaging and very relevant within the commercial real estate industry with educational tracks and speakers always giving me something I can take away and immediately apply to my work.” Robert M. Brierley Vice President, Operations Brookfield Properties Boston, MA
trends tracker
Trends and Takeaways from the Winter Business Meeting Reflecting on Accomplishment and Looking Toward New Priorities By Laura Horsley BOMA Pulse AT THE BOARD OF GOVERNORS, BOMA President Henry Chamberlain delivered the BOMA Pulse, a look at how the trends and performance of the overall economy affect commercial real estate. Key points from the BOMA Pulse include: • GDP growth is predicted to be 3.5 percent in 2011, up from 2.8 percent in 2010, which will generate another 2.5 million new jobs. Vacancy rates are starting to come down. Office is recovering to 16.4 percent in 2011 and 15.3 percent by yearend ’12 (currently at 17.5 percent). • Commercial real estate is resetting in this new economy around: sustainability/ energy-efficient/high-performance buildings, integrating new technologies, new workplace designs, development by mass transit and an interest in balancing live/work/ play and quality of life.
The marketplace must be getting stronger! BOMA President Henry Chamberlain finds something to smile about during the BOMA Pulse presentation.
• Long-term trends spell a long, slow recovery: Downsizing of businesses and state and local governments will curb demand growth for office and business space.
• NAC/ROC members tell us that all concerns and priorities hinge on the state of the economy and job security. • Recruiting and retaining top talent are still top concerns. The perception abounds that the industry isn’t attracting new blood and improving its prominence as an attractive industry for top new talent. • This is the Era of the Property Manager. All attention is now focused on property management—enhancing asset value and increasing NOI. • BOMA’s Pulse of the Industry Survey reveals: ❍
Most pressing short-term challenges: recruiting qualified leadership and maintaining volunteer engagement; available operating revenue against program needs; member renewals.
❍
Most pressing long-term challenges: development of future volunteer leadership; finding additional revenue sources of income; recruiting/retaining younger generation members.
❍
Most pressing issues facing members: economy as it relates to distressed tenants, vacancy; work/life balance; real estate asset values; job security.
❍
End of 2011 vacancy rates: Decline (more than 20 percent); Remain the Same (close to 70 percent); Increase (10 percent).
❍
End of 2011 CRE hiring: Decline (less than 10 percent); Remain the Same (70 percent); Increase (more than 20 percent).
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The BOMA Magazine March/April 2011
BOMA officers Boyd Zoccola and Joe Markling deliver the Year in Review.
Year in Review During their Year in Review presentation, BOMA Chair-Elect Boyd Zoccola and BOMA Vice Chair Joe Markling looked back on a year where BOMA rolled out new products and services, increased participation in programs, retained its status as the No. 1 business network and grew revenue—all during a time when most other associations were pulling back and waiting for the marketplace to recover. Just a few of the accomplishments of the past year include: • Delivering three new, ANSI-approved floor measurement standards for Office, Retail and Multi-Unit Residential buildings. • Releasing an Economic Impact Study detailing the value of commercial office buildings on the national and local economies, contributing $118 billion to the economy and supporting nearly a million jobs. • Extending the 15-percent tax rate on capital gains through 2012, and the 15-year timeline for depreciating leasehold improvements through 2011. • Testifying before Congress on building maintenance issues. • Securing key codes victories, including changes to the International Energy Conservation Code after securing modifications that eliminate major concerns for building owners and managers. • Winning the 2010 ENERGY STAR® Award for Sustained Excellence, BOMA’s fourth consecutive win. The primary initiative BOMA was honored for was the 7-Point Challenge. • Introducing a new webinar series, “Strategies for Supporting Sustainable Building Operations,” which helps property professionals implement green practices to enhance asset value and net operating income, improve tenant satisfaction and benefit the environment. • Expanding BOMA’s Partnership Program. • Hosting a thought-leader symposium, in collaboration with the BOMA Foundation and Georgetown University, examining the future of commercial real estate.
GREEN SCENE
The Green Way to Beat Drain Build-up in Your Building Gaylord Case Study By John Knope IN JUNE, THE BOMA INTERNATIONAL CONFERENCE and The Every Building Show® come to Washington, D.C.’s Gaylord National® Resort & Convention Center. A stunning example of first-class conference and meeting facilities and service, each unique Gaylord property faces a familiar challenge found in buildings of many types and sizes: how to effectively manage wastewater systems in an environmentally conscious manner. For decades, facility managers struggled with accumulations of grease and organic build-up generated from food production, processing and preparation activities in drain lines and collection systems. The resulting problems remain common today: slow drains and backups, foul odors, expensive (and often ineffective) pumping for grease traps and interceptors and, in some cases, local fines and surcharges. These are hardly acceptable, especially for Class A office buildings, high-end restaurants or world-class resorts. Traditional treatment with caustics and acids is often ineffective. Solvents and free enzyme products often liquefy grease and send it downstream to treatment facilities. Resulting concerns for employees and environmental exposure have led to a breakthrough: biological (bacteria) treatment solutions. It is well-established and documented that removal of organic waste from any wet waste stream or effluent produced in the normal course of food production, processing or preparation is best accomplished through biological treatment. Used at wastewater treatment facilities to treat and recycle wastewater for years, biological treatment utilizes a complex mixture of microorganisms to degrade and decontaminate raw sewage for discharge into water sources. Under proper
conditions, biological systems impact nearly all components of wet waste, reducing them to carbon dioxide and water. Upstream, the challenge has been finding the right types of bacteria, along with an effective, consistent means to apply treatment. The majority of available biological treatment products attempt to reduce organic material by providing a mixture of spore-forming microorganisms that can be easily manufactured and maintain stability. These “bug in a bottle” microbes produce enzymes that reduce some organic matter, but none are capable of metabolizing the primary by-product, extra-cellular fatty acids, from fats, oils and grease (or FOGs). In nearly all drain lines, grease trap and collection systems, FOGs are the largest contributor to blockages, excessive pumping and maintenance, foul odors and often unsanitary conditions. In addition, spore-forming bacteria are typically dormant when applied, requiring four to six hours to awaken and begin breaking down organic material. The Gaylord National® Resort & Convention Center tried green drain products previously with disappointing results, furthering the impression that An automated bacteria delivery system helps prevent build-up from grease, fats and oils.
a green solution could not be effective. While waiting for the bacteria to awaken, drains were exposed to hot water from dishwashers, additional water and waste from kitchens and harsh cleaning products—all detrimental to bacterial growth. The remaining live bacteria were minimal and unable to make a significant impact. Today, the Gaylord uses a drain maintenance system that produces beneficial, live bacteria in a controlled environment on-site. Each day, five different types of bacteria are incubated and automatically dispensed into drain lines to digest and remove FOGs. The amount of bacteria, types of bacteria and dosing system work together to form a highly effective maintenance system. Over 30 trillion live, vegetative bacteria are generated and delivered every 24 hours—a dose 1,000 times stronger than traditional spore-forming bacteria. The green drain maintenance system installed in the Gaylord has reduced FOG levels and water consumption. This patented system, with more than 3,000 units in place worldwide, has also been awarded LEED® Innovation Credits. The system offers several benefits for green building initiatives: • Contributes to the U.S. Environmental Protection Agency (EPA)’s Environmentally Preferred Purchasing program. Bacteria are 94-percent biobased, according to independent studies, and are a naturally derived, rapidly renewable resource. • Aids compliance with EPA’s Clean Water Act and local discharge requirements. • Reduces waste stream output. This unique technology requires only a one-gallon container of product per month, eliminating drum storage and disposal concerns. • Saves on energy required for frequent hydrojetting and pumpouts of drain lines and grease traps. Documented case studies show an average decrease of $12,000 in drain line maintenance costs after installation. • Reduces employee hazards and spill concerns associated with harsh acids, caustics and solvents frequently used for drain treatment. About the Author: John Knope is a marketing manager for ChemsearchFE, (www.chem searchFE.com) a global leader in products, technology and solutions for facility engineers.
March/April 2011 The BOMA Magazine
35
research corner
Measuring Up: How the EER Helps Buildings Perform Better Play Your Part and Submit Your Data By Lindsay Tiffany
COMMERCIAL REAL ESTATE PROFESSIONALS know that one of the most important ways to increase NOI is to diligently benchmark their buildings’ income and expense data. Benchmarking can help building managers track performance, identify trends and target areas that need improvement. With owners, investors and tenants all scrutinizing the bottom line more closely, tracking building performance is more critical than ever. When it comes to benchmarking, one key tool property professionals turn to is BOMA’s Experience Exchange Report® (EER). Widely used throughout the industry for 90 years, the report helps building owners and managers compare performance, market their buildings to prospective tenants, justify their budgets to stakeholders, perform due diligence and more. The 2010 report, with data from 2009, contains data from more than 768 million square feet across 4,200 buildings in 250 markets. A partnership with industry research firm Kingsley Associates brought the report online in 2008, which allows users to query data by market, submarket, building size, building type, age of the building and ownership type. For Transwestern’s Central Region Senior Vice President Karrie McCampbell, the EER serves as a way to show her owners how their buildings compare to competitors. “We’re asked throughout the year how our budget compares to other buildings in our market and we turn to the data in the EER to answer that question,” she says. “The information we get from the report is really valuable and we use it all year long. It’s really the industry standard, and people recognize the fact that it’s the tool you should use to compare your property’s performance.”
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The BOMA Magazine March/April 2011
Mar 16, 2011
Budgeting & Accounting
May 4, 2011
Design, Operation & Maintenance II
Jul 20, 2011
Law & Risk Management
Aug 24, 2011
Real Estate Investment & Finance
Sep 14, 2011
Technologies for Facilities Management
Oct 5, 2011
Leasing and Marketing
Oct 26, 2011
Facilities Planning & Proj Mgmt
Nov 2, 2011
Environmental Health & Safety Issues
The EER serves as a common denominator for many property professionals looking to make performance comparisons across regions or even nationally. “I can easily pull up the data for Houston, San Antonio, Austin—the other big markets in Texas—to compare how my buildings in Dallas are faring against wider regional data. It’s really a baseline standard for comparing building performance,” explains McCampbell. The data from the report also helps property professionals when preparing to enter new markets. It can confirm what brokers and other sources in the market are saying and help with budget forecasting. “The EER is particularly helpful when we’re entering a new market we don’t know. I know the standard cost of cleaning per square foot in Dallas, but if I were going into St. Louis, I would look up that data in the EER,” notes McCampbell. “We also use the data when doing due diligence. When we’re looking at a new property, we’ll create a budget for it and compare it to the EER data in that market.” While many property professionals have friends or peers locally on whom they call to exchange benchmarking information, that type of information has its limits. Explains Becky Hanner, CPM, RPA, senior vice president, Cassidy Turley: “While most of us enjoy collaboration and share information with each other in this industry, there is only so much information we are willing to divulge. I may be willing to share a general idea of my per-square-foot operating expense amount, but I won’t provide a detailed breakdown of expenses to my competitor.” Hanner also notes that, because of variables like building size, occupancy and location, it can be hard to get a true measure of how your building performs just by calling on a colleague. “The way in which we submit data to the EER helps keep the numbers ‘apples to apples,’ so it is much more useful than calling Joe competitor.” Both Hanner and McCampbell stress that the quality of the data is directly proportional to the number of people who submit. “The more people that submit, the more accurate and useful the data is. Not only do you make the report better, but you also receive a great personalized report of how your building compares,” says McCampbell. “I believe it is a property manager’s responsibility to submit data to the EER.
We all want the information, but we need to be willing to give it, too!” says Hanner. “The BOMA-Kingsley partnership provides a neutral ground where managers can submit comprehensive data without feeling like their confidential building information is compromised. And, now it is easier than ever to submit because you can migrate your accounting info into a spreadsheet that is uploaded right into the survey.”
Play your part and share your data It’s easy, fast and free. By submitting, you will get a free expense performance comparison, priority access to 2011 EER reports and save 25 percent or more on all EER product purchases. To learn more, visit www.bomaeer.org.
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EYE ON EDUCATION
Rx for Healthcare Real Estate Success
BOMA’s 2011 Medical Office Buildings & Healthcare Facilities Conference, May 4-6, 2011, Dallas
By Lorie Damon, Ph.D. The passage of the 2010 Affordable Care Act, known as healthcare reform, appeared to be a boon for healthcare real estate. Brokers, bankers and other prognosticators were quick to speculate about a surge in demand (60 million square feet, by some estimates) for MOBs and other ambulatory-care facilities to meet the demand of the newly insured patients. Fast forward to this year, and the prognosis of the Affordable Care Act is very much in question, as it faces both legal challenges in the courts and a newly elected Congress reconsiders funding its provisions. While these governing bodies debate the fate of the legislation, most healthcare systems are in the difficult position of preparing for legislation that may not stand. Add to these challenges
continued capital constraints, proposed changes in lease accounting standards (known as FASB 13) and consolidation among both healthcare systems and real estate companies, and we have enough symptoms to confound even the most sophisticated diagnosticians. Diagnosing these and other emerging trends in healthcare, the capital markets and real estate will be the focus of BOMA International’s 2011 Medical Office Buildings & Healthcare Facilities Conference, presented jointly by Ventas Healthcare Properties and Lillibridge Healthcare Services. Scheduled for May 4-6, 2011, at the Hyatt Regency Downtown in Dallas, the conference expects to draw nearly 600 attendees, including leading experts from healthcare systems, developers and property and facility management firms. Leading investors, financiers, advisors,
Changing Times in Property Management By Mark S. Johnson, CPM I WAS THINKING RECENTLY about the many ways the property management business has changed since I managed my first building, The Old Colony Building. Designed and built in the late 1800s, at 17 stories it was the tallest building in Chicago when it was completed. When I managed the property in 1986 (no, not 1896), there were three elevator operators and an elevator starter on staff. The starter, Chester, had worked in the building for more than 30 years. We always knew when a tenant was meeting with a real estate broker because, after the elevator operators took them up and brought them down, they would share all the pertinent information they had overheard in the elevator. To say things have changed is an understatement. When I started managing Old Colony, we did not have personal computers or printers at our desks, much less smartphones, e-mail or the Internet. Real estate companies were local to their city and typically provided brokerage, development and management services. The property manager of a high rise office building oversaw the
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The BOMA Magazine March/April 2011
entire operation, including accounting, leasing, renovations and operations.
Adapting to and Taking Advantage of New Technology New technology and media are available and helpful for all professionals, whether you’ve been in the industry for 30 years or three years. Experienced industry veterans, like myself, can and should take advantage of some of the technological innovations that have emerged in the last few years. I suspect many of us are still unaware of the power of social media and the Internet, especially as it relates to our careers. Now is the time to change that. The vast majority of you reading this article use e-mail, a computer and have some type of mobile phone. But are you current with the social media technologies and services available? I recently read that more than 40 percent of jobs are sourced from social networking sites, such as LinkedIn, MySpace and Facebook. A quick search on LinkedIn found 619 property management jobs listed on LinkedIn alone. While you might think that your
HR department can take care of posting jobs on those sites (and they surely will), don’t lose sight of how important having a presence on them can be for yourself. First, you may already know some candidates and may be able to identify good prospects. Second, you can learn a lot about a person from his or her social media profiles and what they share about themselves online— both professionally and personally. That information can help you determine if a potential candidate will be a good fit for your team. Third, good candidates may be looking at your profile and thinking about whether they want to work for you. If you haven’t ventured into social networking yet, I strongly encourage you to do so. A quick Google search can point you toward resources to learn more about how social media works and the different mediums available. Professional associations are also a great way to dip your toe into social media. BOMA International has a strong presence on LinkedIn, Facebook, Twitter and YouTube. For those in healthcare real estate, BOMA has a Medical Office and Healthcare Real Estate Forum on LinkedIn with
architects, general contractors, attorneys and even physicians are also among the attendees.
• Higher Acuity Uses in MOBs.
The conference education program will feature both general and breakout sessions designed to address the complex interplay between healthcare and real estate. Many of this year’s general sessions will focus on the long-term fate of healthcare reform and offer clarity about how healthcare systems are planning for future patient demand, continued capital pressures and improved efficiencies throughout their operations.
• Achieving Property Management Excellence.
Concurrent breakout sessions will be grouped topically into three tracks: Leasing and Management; Capital Markets; and Healthcare Provider Strategies. Among the topics those sessions will address are: • Healthcare Reform Uncertainty: How Healthcare Systems are Coping. • Real Estate Implications of the Surge in Hospital-Employed Physicians. • Mergers & Acquisitions Among Healthcare Systems and Real Estate Firms. • The Equity and Debt Markets for MOBs. • STARK Compliance in the Wake of Healthcare Reform.
• Synthesizing Healthcare and Real Estate Strategies. • Healthcare Real Estate Development: Signs of Vitality? • How Healthcare Systems are Coping with Capital Constraints. • And, much, much more. This year’s keynote address will be presented by humor columnist Dave Barry, who promises to inject some levity into the conference. Barry, a long-time columnist for the Miami Herald, is well-known for his wry and amusing observations and will share his insights on healthcare. In addition to education, the conference offers tremendous opportunities for attendees to network with one another and with the expert speakers. Evening receptions on both Wednesday and Thursday are scheduled, and the conference will include exhibits that feature a variety of real estate firms, including REITS, developers, capital providers, advisory firms and the like. Additional information about the conference program and registration is available at www.boma.org/TrainingAndEducation/ MedicalOfficeBuildings.
more than 1,000 members. This Forum also allows HCRE professionals to network, share ideas, pose questions, gain feedback and post useful articles and resources.
The Right Mix of New and Traditional
For those in healthcare real estate, the BOMA Medical Office and Healthcare Real Estate Forum on LinkedIn has more than 1,000 members.
As you explore social networking sites and take advantage of the connections and resources through BOMA and other sources, keep in mind it is still important to nurture your professional development in more traditional settings. Educational opportunities are available from many organizations, including BOMA. If you don’t have an RPA, FMA, SMA or other real estate designation next to your name, or are not pursuing one, you should consider investing in yourself and obtaining this training. BOMA also offers conferences, such as the Medical Office Buildings & Healthcare Facilities Conference, May 4-6, 2011, in Dallas. This two-day conference may be of particular interest to property managers, developers and other industry professionals trying to expand their knowledge in order to take advantage of the boom in healthcare real estate. The annual BOMA International Conference, held June 26-28, 2011, in Washington, D.C., is another great opportunity to meet and
connect with property managers of all sort of assets. Check out the Education tab at www.boma.org for information on numerous educational opportunities. The old maxim, “It’s never too late to learn,” is great advice for property professionals of any “vintage.” While seasoned industry veterans have a lot to teach the next generation about managing an asset and building a career, we can also learn from younger professionals. And, taking advantage of new forums for learning helps differentiate your talent from others—especially when you can point to your educational accomplishments. I want to emphasize the fact that there are many opportunities available to all of us in the property management industry. BOMA and other organizations offer many ways for you to find a job, improve your skills and network with others in the industry. Take advantage of these resources and continue to grow, both personally and professionally, as new technologies are developed and adapted to our industry. About the Author: Mark S. Johnson, CPM, is senior vice president and director of property management with Lend Lease DASCO LLC, www.dascomed. com. He can be reached at mjohnson@ dascomed.com.
March/April 2011 The BOMA Magazine
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SUPPLIER Showcase Special Advertising Section
BAC Factory-Authorized Parts at Cooling Tower World Cooling Tower World is the only place to purchase BAC Factory Authorized Parts online. BAC’s parts are manufactured to meet rigorous cooling tower duty specifications and are guaranteed to fit your unit and perform as original equipment. Cooling Tower World offers Free 2-Day Shipping on all orders placed, and all parts carry a full 1-year warranty backed by BAC. For more information, visit www.CoolingTowerWorld.com.
Cisco’s Smart+Connected Real Estate Solutions Cisco Smart+Connected Real Estate solutions incorporate technology into each step of the real estate life cycle. The net results are innovative services that improve the user experience and productivity in the built environment, creating revenue-generating business models and positively impacting building management and operations. More information at www.cisco.com/web/strategy/trec/index.html.
Affordable, Practical Skylight Fall Protection from Garlock Safety Systems Sky-Dome™ is a freestanding, 1-piece system that provides temporary or permanent skylight protection. To use, simply set in place and walk away—no mechanical attachment to the skylight or roof is required. When installing multiple skylights, you can easily reposition as work progresses. Design complies with OSHA 1910.23(e)(8). Sizes from 2- by 2-foot to 6- by 12-foot. All steel construction, stackable, powder-coated safety yellow finish. Custom colors and galvanized are available. Call 763-694-2614 or visit www.railguard.net/pages/skydomeprotector.asp.
Asphalt Preservation from Gee Asphalt Systems, Inc. Asphalt Preservation is about taking care of your good pavements while they are still good. We’ll show you how to preserve your asphalt pavements for a fraction of the cost to replace them. Serving clients Nationwide. For more information, contact us at 800-747-8567 or log on to www.geeasphalt.net.
General Elevator Parts Inc.
“The Asphalt Preservation Specialists”
Single Source Supplier: 1-800-848-3329 or 773-491-1927; Fax: 1-800-578-6349 or 773-463-2827. Otis, Westinghouse, Dover, Imperial, etc. Surplus Motors and Generators: Rotors—IMO Pumps; Armatures— Door Motors; Machine Parts—Controls; ✓ Obsolete’s Largest Supply. GeGeLu@comcast.net: Networking your inventory is like fishing. Just send over your list and we will hook you up! Otis turtleback longneck and shortneck hoist motors size 1 1/2, 2 1/2, 3 1/2, 4 1/2, 5 1/2, etc. Otis wound rotors type 1ac, 2ac, 3ac, 5ac, 7 1/2ac, etc. Otis 63g, and all other dc hoist motors leg mount and flange mount. Westinghouse dc flange mount 63a, 93 and 93.5 frame. See the website at elevatorexchange.com.
LEDtronics’ T8 Tube Lights USA-made, UL-listed, Long-Life, Energy-Efficient Fluorescent Equivalent LED T8’s tube lights by LEDtronics. White LED T8 Tubes, G13 BiPin, 2 ft., 3 ft., 4 ft., 8 ft., *Clear or frosted Lens*, Only 8 to 37 Watts. Phone: 800579-4875; Web: www.ledtronics.com.
Maxton’s SafeTach™… Finally, the Optimal Elevator Performance Evaluation Tool Are your elevators wasting energy, operating outside of specs, not passing inspections? Stop grasping at straws! See exactly where problems lie in real-time without risky tactics using the SafeTach™ Elevator Performance Meter. Problems Identified Safely. Resolution Confirmed. Inspections Passed. Call Maxton Manufacturing 1-775-782-1700 or go online www.safetach.com.
Big Spheres from Meltdown Glass Utilizing the beauty and durability of cast-glass, Meltdown Glass’ Big Spheres product offers a clean, geometric solution to partition walls while preserving the organic qualities of cast-glass. This product allows designers to create spaces that allow light transmittances while still maintaining privacy. Meltdown Glass textures are available in oversize panels and can be tempered to meet safety codes. For more information, please visit meltdownglass.com or call 800-845-6221.
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The BOMA Magazine March/April 2011
SUPPLIER Showcase Special Advertising Section
Vending Solutions from National Vending National Vending is a full-service vending management solution—All at No Cost to You! We are dedicated to delivering superior service and value through our new state-of-the-art, energy-efficient vending equipment. National Vending is a single-source vending solution program focusing on customer service, consistency/access and results. Call 800-548-1982 or visit www.nationalvending.com today!
NexFloChex by Nexus Valve The NexFloChex by Nexus Valve is an Automatic Flow Limiting Valve, check valve and dual isolation valve used for domestic hot water returns. Contact Nexus Valve today for more information: www.nexusvalve.com or phone 888-900-0947.
Stop Pest Birds with Nixalite Solutions Keep your buildings and facilities clean and free of pest birds. Since 1950, Nixalite of America has manufactured and supplied effective and humane pest bird and animal control products. To request your free catalog, please call 800-624-1189 or visit www.nixalite.com.
Purgers for Centrifugal Chillers from Redi Controls Inc. OAM-Purger for Centrifugal Chillers regains capacity, saves thousands of $$$ per year in energy savings. Sustainability, Green Product, Energy Savings, opportunities for Green Building and LEED points, utility rebates. Video at www.RediControls.com. Phone: 317-865-4130.
Safety Chairs: Evacuation Chairs and Safety Devices Safety Chairs emergency evacuation chairs are the best value in the evacuation chair industry. Our emergency evacuation chairs have the highest weight capacity, are lightweight and are the only devices designed to move evacuees safely down AND up stairs. They are also the only emergency evacuation chairs on the market that are ergonomically designed for the safety of all parties involved. Are you prepared in the event of an evacuation or emergency? Manufactured in U.S.A. and the company is U.S. veteran owned. Learn more at www.safetychairs.net.
SignValue Billboard Services Are you getting enough money for your billboard lease? Do you need help negotiating a billboard lease? E-mail info@signvalue.com or call 480-657-8400 to talk with a billboard lease consultant today.
A ‘Total Door’ Solution The only comprehensive integrated door system that reduces maintenance, provides exceptional security and is extremely abuse resistant. Visit www. totaldoor.com or contact 800-852-6660.
Landscape Management from U.S. Lawns U.S. Lawns Strategic Accounts department can work with you locally, regionally or nationally to help you manage the landscape at your offices, parks and commercial facilities. Phone Number: 800-USLAWNS; or visit www.uslawns.com.
March/April 2011 The BOMA Magazine
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trade tools [restrooms]
Reducing Environmental Impact in the Restroom By Peter Leahy WASTE IS NOT ONLY CREATED when used items are discarded. Waste is also generated through inefficiencies in raw materials extraction, processing, manufacturing and transportation.
With this in mind, it’s important, when choosing products for your facility’s washroom, to understand that environmental impact occurs through the entire life cycle of the products you select—from raw materials sourcing through final disposal of the product. Source reduction—the practice of designing, manufacturing, purchasing or using materials, packaging and products in ways that eliminate waste from the start— is a strategic way to reduce environmental impact. Washroom products, designed with source reduction in mind, can help users consume less through improved performance and/or more reliable/controlled dispensing. If less product is consumed, there is less waste to manage and fewer resources needed during manufacturing and distribution to deliver on customer needs and complete everyday tasks. Kimberly-Clark Professional* employs sustainable manufacturing strategies to reduce environmental impacts on its natural resources. To illustrate how this helps customers like Brandywine Realty Trust eliminate “hidden waste,”
Kimberly-Clark Professional* employs a Greenmeter Analysis tool. By choosing environmentally preferred washroom products from Kimberly-Clark Professional*, Brandywine successfully saved 21.5 tons of fiber, nearly 1.5 million gallons of water, 477-plus million BTUs and 11,029 pounds of packaging waste over the course of a year. In addition to overall source reduction, it’s important to consider the source of raw materials, especially those that are wood fiber-based. Tissue products should contain fiber that is responsibly sourced, such as recycled fiber and/ or sustainably harvested virgin fibers— preferably those that have received third-party certification, such as Forest Stewardship Council (FSC) certification. It’s easy to find out how restroom product selection impacts a building’s environmental and cost performance with Kimberly-Clark Professional*’s Greenmeter tool. Visit www.kcpreduce today.com for more information. About the Author: Peter Leahy is office building segment manager for Kimberly-Clark Professional*.
Las Vegas
Where education and fun come together www.BOMANevada.org EDUCATIONAL COURSE SCHEDULE 2011 Location: Las Vegas, Hilton DATE
COURSE
March 14-17
Environmental Health & Safety + Ethics
April 18-20
Real Estate Investment & Finance
May 16-18
Budgeting & Accounting
June 13-15
Facility Planning
July 11-13
Leasing & Marketing
August 15-17
Managing the Organization
September 12-14
Asset Management
October 17-19
Law & Risk Management
November 14-16
Technologies for Facilities Management
December 5-7
Design, Operations and Maintenance I
For Information and Registration call BOMA Nevada’s office at 702-938-BOMA
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The BOMA Magazine March/April 2011
BOMA’S 2011 ALL-STAR LINEUP Looking for market advantage in 2011? BOMA has you covered. Check out our three new publications to help you do your job even better in the New Year.
YOUR WELL BUILDING EXAM CHECKLIST Preventive Maintenance Guidebook: Best Practices to Maintain Efficient and Sustainable Buildings The latest edition of BOMA’s top-selling publication provides maintenance practices and tools for creating, managing, monitoring and improving a preventive maintenance program. Look for additional information on predictive maintenance with more emphasis on sustainability, commissioning, use of electronic tools and resources, and renewable and recovered energy.
HIGH PERFORMANCE LEASE FOR HIGH PERFORMANCE BUILDINGS BOMA International Commercial Lease: Guide to Sustainable and Energy Efficient Leasing for High-Performance Buildings This update to BOMA’s best-selling Green Lease Guide includes more “green” clauses reflecting the evolution of the market over the past several years as well as updates to the “non-green” clauses. This definitive guide helps property professionals execute a lease that addresses building operations and performance to maintain an energy efficient and high performance property.
HELP FOR MIXED USE CAM ALLOCATIONS Allocating Common Area Maintenance (CAM) Charges in Mixed Use Properties and Other Strategies for Managing Live-Work-Play Developments This resource guide helps demystify the complexities and confusion of CAM charges by outlining methods and guidelines that can be applied to existing or new mixed use projects. It is a best-practice resource including a number of real-world case studies for managing live-work-play developments. This unique publication is a must-have resource for anyone involved in mixed use properties.
Order Online Today at http://Shop.BOMA.org
conference connection
The Green Solution The Every Building Show® Exhibitors Offer Sustainable Products and Services USING GREEN PRODUCTS AND SERVICES in a building can result in greater energy efficiency, save operating dollars and help tenants meet their corporate social responsibility requirements. This year, exhibitors at the Green Pavilion and ENERGY STAR® Showcase at The Every Building Show®, June 26-28 in Washington, D.C., will help property professionals find the smartest solutions for their buildings. Here are just some of the exhibitors:
3M Purification Inc. 3M Purification Inc. has added two new filters to its portfolio. Designed with an innovative open filtration media structure, precision pleat structure and high-surface-area, mini-pleat design, the new filters help decrease energy use.
AEG Power Solutions AEG Power Solutions provides turnkey solar photovoltaic systems to help buildings utilize renewable energy. These smart-grid-enabled systems feature solar panels, solar inverters, monitoring, diagnostics and communications equipment.
designed to reduce operating costs; improve water and energy efficiency; and enhance occupant comfort and health.
offers innovation, superior field experience, roof system design and unsurpassed warranties— all while maintaining a green mindset.
BITZER U.S., Inc.
ChemsearchFE
BITZER U.S., Inc., is a global leader in screw, scroll and large semi-hermetic reciprocating compressors for commercial A/C systems.
ChemsearchFE is a global leader in products, technology and solutions for property professionals. Offering water treatment, drain maintenance, HVAC maintenance programs and certified green products, ChemsearchFE helps reduce downtime, water usage and energy consumption with its patented technologies.
Bluebeam Software, Inc. Go paperless with Bluebeam PDF Revu, a fully functional PDF editor designed for building and construction. Mark up PDFs with customizable text, highlights, measurements, images and more.
Cab Solutions, LLC Ambius Ambius, a premier global creator of ambience for businesses, offers a full spectrum of services to enhance the interior space of commercial buildings, including ambient scenting, interior landscaping, holiday décor and more.
Ashland Hercules Water Technologies Ashland Hercules Water Technologies offers a comprehensive array of water treatment programs for the commercial and institutional market
44
Cab Solutions designs, engineers and remodels elevator cab interiors. Its services cover wall panels, ceilings, lighting, floors, cladding and more. Cab Solutions prides itself on evaluating the cost and quality impact of green products for its customers.
Carlisle SynTec Incorporated For nearly half a century, Carlisle SynTec has been the leader in energy-efficient single-ply roofing. Carlisle SynTec
The BOMA Magazine March/April 2011
CTG Energetics, Inc. CTG Energetics is a consulting firm specializing in sustainability services that improve building performance. CTG combines expertise in energy modeling, commissioning and environmental design with leadingedge tools in greenhouse gas analysis, carbon offset programs and more.
DCS Global Enterprise Canada Inc. DCS Global Enterprise offers a proven Day Cleaning™ conversion program, comprised of work loading, cleaning specification adjustment, tenant communications and contractor training.
Diversey, Inc. As a leading global provider of commercial cleaning, sanitation and hygiene solutions, Diversey, Inc.’s products, systems and expertise make facilities safer and more hygienic for consumers and building occupants.
CNR Lighting CNR is a leader in energyefficient lighting systems. From replacement lamps and ballasts to designing a completely new system, CNR offers fine products and competitive prices.
E-Mon E-Mon, an industry leader in submeters, manufactures a complete portfolio of energy monitoring products for energy management, tenant billing, usage analysis, metering and verification, load control and cost allocation.
CSI International, Inc. CSI is an integrated facility services company that offers a full range of facility services, including janitorial, mechanical and corporate services, pest control, document restoration and more.
ECS/EcoPath EcoPath™ is the world’s first 100-percent perpetually recyclable entryway matting solution with bio-based content. With a striking appearance and unsurpassed performance durability, EcoPath can help facilities achieve their highest green potential.
The Gordian Group Excel Dryer The XLERATOR® high-speed, energy-efficient hand dryer completely dries hands in 10 to 15 seconds, uses 80-percent less energy than traditional hand dryers and delivers a 95-percent cost savings vs. paper towels.
FLIR Infrared Cameras FLIR has a wide selection of infrared cameras with best-inclass performance with flexible, easy-to-use software. FLIR also offers post-sale technical support, customer service and training to the industry.
GAF Materials Corporation GAF is committed to finding innovative ways to reduce the amount of natural resources used in making and sourcing roofing products. GAF’s products include a comprehensive portfolio of roofing and composite decking systems, which are supported by a national network of contractors.
Georgia-Pacific Corporation Georgia-Pacific Professional is a provider of environmentally responsible hygiene products to office building facilities. Georgia-Pacific Professional is committed to better hygiene, greater efficiencies and richer knowledge that create significant business advantages.
The Gordian Group provides single-point responsibility for all of the products and services necessary for a successful job order contracting program. Gordian develops and supports all contract and bid documents, task catalogs, technical specifications and more.
Halco Lighting Technologies Halco Lighting Technologies® is a leading manufacturer of lamps and ballasts designed for industrial, commercial, residential and special lighting applications.
Sika Sarnafil Nalco Company Nalco provides innovative solutions for water, air and energy management and facility maintenance. Nalco’s programs are focused on reducing energy costs, protecting building assets, minimizing risk and increasing tenant satisfaction.
Nu Flow America Nu Flow renovates and extends the useful life of pipes in buildings and underground, using trenchless epoxy coatings and CIPP structural liners.
RAB Lighting Jessup Manufacturing Company Photoluminescent Egress Path Marking Systems from Jessup Glo Brite use lower-level lighting and signs to guide people to safety in the event of a blackout or fire, and can even be seen through varying degrees of thick smoke.
Leonardo Academy Inc. Leonardo Academy is a nonprofit organization dedicated to advancing sustainability. Leonardo Academy develops new methods, metrics and standards for environmental improvement and helps businesses implement sustainable solutions.
LiveRoof, LLC Combining the best elements of proven green roof technologies, the LiveRoof Hybrid System is the only green roof solution that is installed with fully grown plants thriving in a connected ecosystem established on the day of installation.
Sika Sarnafil provides thermoplastic, single-ply membranes for a wide range of roofing and plaza deck waterproofing applications. Sika Sarnafil offers complete roofing system solutions, from single-ply thermoplastic membranes, vapor retarders and insulation to fasteners and adhesives and more.
RAB Lighting is a leading manufacturer of sustainable outdoor lighting fixtures, including LED, HID, CFL and motion-sensing technology.
Schneider Electric As a global specialist in energy management, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in energy and infrastructure, industrial processes, building automation and data centers.
Servidyne Servidyne provides comprehensive energy-efficiency and demand response solutions, sustainability programs and other products and services that significantly enhance the operating and financial performance of existing buildings.
SimonsVoss Technologies Inc. SimonsVoss manufactures wireless digital cylindrical locks, mortise locks, mortise cylinders and RIM cylinders that can protect elevators, parking gates and other equipment.
Solutia’s Performance Films Division Solutia’s Performance Films Division is a leading producer of high-quality, after-market window films. Solutia manufactures films that provide comfort, aesthetics, energy savings, safety and security when applied to glass.
Spartan Chemical Company, Inc. Spartan Chemical is an international manufacturer of quality-branded cleaning products, such as industrial cleaners, disinfectants, skin care, laundry care, ware wash and floor care.
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March/April 2011 The BOMA Magazine
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conference connection
U.S. Energy Group Sundial Solar Sundial Solar is a nationwide solar developer, specializing in commercial/industrial solar electric solutions. From the very small to the extra large, Sundial designs, builds and commissions all types of solar electric systems for every climate and need.
ThyssenKrupp Elevator ThyssenKrupp Elevator recognizes the great potential for reducing the environmental impact of existing elevators through modernizations and upgrades. Upgrade opportunities come in many packages, which can increase energy efficiency, reduce toxins and eliminate unnecessary waste.
U.S. Energy Group has developed a comprehensive energy management solution to help commercial building owners and managers monitor and control heating costs and conserve energy and water.
UNI-SOLAR United Solar, a leader in manufacturing building-integrated and rooftop photovoltaics, manufactures, sells and installs thin-film, flexible solar laminates that convert sunlight into energy, using proprietary technology.
VRTX Technologies VRTX Technologies specializes in environmentally friendly, chemical-free treatment of water used in cooling towers and evaporative condensers. The VRTX system utilizes controlled hydrodynamic cavitation to control scale, corrosion and bio-fouling without the hazards of chemical treatment.
Westcoast Innovative Pro-Pads Westcoast Innovative Pro-Pads gives customers 100-percent biodegradable, flame-retardant, cotton-filled pads to protect elevator cabs. Its patented “universal hanging system” streamlines ordering and installation.
Waste Management, Inc. Using the world’s most advanced technologies and its unique expertise, Waste Management partners with customers and communities to manage and minimize waste while recycling valuable resources and creating clean, renewable energy.
ADVERTISING INDEX Company
Page No.
360Facility....................................................................................... 31
Page No.
AAON.......................................................................................Cov 4
Maxton Manufacturing......................................................................40
American Anchor..........................................................................Cov 2
Meltdown Glass Art & Design.............................................................40
Antenna Site Management................................................................. 36
National Vending...............................................................................41
AP&G Co. Inc.—Catchmaster............................................................. 13
Nexus Valve.....................................................................................41
Baltimore Aircoil Co. Inc.—Cooling Tower World...................................40
Nixalite of America............................................................................41
Bartlett Tree Experts...........................................................................11
Pro-Bel...........................................................................................14
BOMA Atlanta................................................................................. 36
Redi Controls Inc..............................................................................41
BOMA International.................................................................... 33, 43
Safety Technology International, Inc. ....................................................10
BOMA Nevada................................................................................42
Salsbury Industries.............................................................................21
Cisco Systems Inc.............................................................................40
San Jamar..........................................................................................3
COIT Restoration Services...................................................................11
Scientific Conservation .......................................................................4
Concept Development Associates Inc.—Safety Chairs..............................41
SERVPRO ........................................................................................9
Easy Lobby....................................................................................... 15
Shortridge Instruments Inc..................................................................42
Energetic Lighting.............................................................................19
Siemens Industry Inc......................................................................... 27
Garlock Equipment Co......................................................................40
SIGNARAMA................................................................................... 17
Garvin Industries.................................................................................11
SignValue.........................................................................................41
Gee Asphalt Systems, Inc...................................................................40
Total Door.......................................................................................41
General Elevator Parts Inc..................................................................40
U.S. Lawns.......................................................................................41
Johnson Controls Inc...........................................................................7
Waste Management......................................................................Cov 3
JP Obelisk........................................................................................12
Watco Manufacturing Co................................................................... 37
Keyscan Access Control Systems......................................................... 22
46
Company
LEDtronics Inc.................................................................................40
The BOMA Magazine March/April 2011
We asked customers what they looked for in commercial heating and cooling equipment. They told us:
Reliability, Quality, Durability, Serviceability So, we made sure we had all of these covered... and added one more:
d
up to 16 EER
up to 14 IPLV (AC) / 24 IPLV (EC)
Se lfC Un ont its ain e
lle rs Ch i
up to 13 EER / 4 COP
up to 19 EER / 6 COP
G W eot SH he P rm Un a its l/ Ai r Pu -So m urc p e Un H its eat
up to 14 EER
La Sy rge st Sp em l s it
up to 17 SEER
Sm Sy all st Sp em l s it
p rg e Un Ro its oft o
La
Sm al l Un Ro its oft o
p
Energy Efficiency
up to 14 EER
up to 19 SEER
High Efficiency
Contact your local AAON representative to learn more about AAON products and discover the many heating and cooling solutions AAON can provide.
www.aaon.com (AC) = Air Cooled (EC) = Evaporative Cooled
Rooftop Units • split systems • GeotheRmal heat pUmps • aiR-soURce heat pUmps • chilleRs • self contained Units