The BOMA Magazine July/August 2012 by lprats

Achieving High Performance Through Innovation

JULY/AUGUST 2012

Better by Association Highlights from the BOMA 2012 Conference in Seattle

Plus: Where America Goes to Work—The Economic Impact of Office Building Operation TOBY® Regional Winners Integrating Healthcare Delivery and Facility Needs

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July/August 2012 Volume 8, No. 4

BOMA 2012 Rocks Seattle

Board of Governors Highlights

Where America Goes to Work

2011-2012 TOBY® Regional Winners/ International Nominees

Amanda Marsh and Blythe Lawrence BOMA 2012 draws attendees from across the United States and abroad for CRE’s most important education and networking event.

For advertising rates and information, contact Paul Hagen at Stamats Business Media 866-965-4205. Connect with BOMA Join BOMA on Facebook

Laura Horsley BOMA leadership gets down to business during the Board of Governors meeting at BOMA’s annual conference.

Follow BOMA on Twitter: BOMA President Henry Chamberlain @HenryBOMA BOMA Vice President Lisa Prats @LisaPratsBOMA Volume 8, No . 4 The BOMA Ma gazine July/August 2012, (ISSN 1532-4346), Copyright 2012. The BOMA Magazine is published bimonthly in January/February; March/April; May/June; July/ August; September/October; and No vember/ December by the Building Owner s and Manag ers 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 addr ess changes t o: The BOMA Ma gazine, Attn: List Depar tment, 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.

These winning buildings stand out from the crowd.

DEPARTMENTS 6

Message from the Chair 32 Trends Tracker

Better by Association.

Legislative Update

BOMA passes new policy position, the “fiscal clif ” is coming, BOMA and RMI tackle split incentive, notes from NAC.

Join BOMA on LinkedInJoin the EER and BOMA 360 User Groups See BOMA on YouTube: www.youtube.com/ bomainternational

Stephanie Oppenheimer, APR and Laura Horsley New study shows the economic impact of office uilding operations.

14 State & Local Update

BOMA/Metro Detroit takes on the nonrecourse battle, BOMA/Cleveland claims a victory.

16 Codes & Standards Update

BOMA success at ICC Code Hearings, updates for ASHRAE Green Building Standard 189.1.

18 Leading the Way

Meet the new chair, Joe Markling—BOMA leader, NASCAR fanatic.

20 around the industry

Kilowatt Crackdown winners announced, CBRE report shows signs of global recovery, In Memoriam—Dub Hill.

Gerard Smith Vet Your Vendors—screening steps to ensure your vendor is top notch.

34 GREEN SCENE

Clinton Clark 10 easy steps to a successful office recyclin program.

39 Research Corner

2012 EER results: Income up, utilities down.

40 EYE ON EDUCATION

Laca Wong-Hammond Integrating healthcare delivery while evolving facilities’ needs.

42 Trade Tools

Patrick T. Copps, MS, B.C.E Sustainable operations and pest management

44 BUYERS’ GUIDE

Check out the latest products and services straight from the BOMA 2012 Every Building Expo.

On the Cover: Waterway Plaza I & II, The Woodlands, Texas, was named the 2012 TOBY® winner in the Suburban Office Park Mid-Rise category. The property is managed by Daymark Realty Advisors, Inc. and owned by NNN Waterway Plaza, LLC.

July/August 2012 The BOMA Magazine

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Message from the Chair

Better by Association In life, nobody can go it alone. You have to have associations or relationships, whether that’s your family, friends, your church, business colleagues, clients or even competitors. We are all better when we work together. It makes us “Better by Association,” and it is this connectivity that makes BOMA stand out.

Publisher: Lisa M. Prats, CAE Editor: Laura Horsley Contributing Editors: Karen W. Penafiel, CAE; Ronald Burton; Henry H. Chamberlain, APR, FASAE, CAE; Liz Hazleton; Emily Naden; Megan McGeever; Tanner Johnston Designers: Elisa Geneser, Art Director; Gwen Dyrland, Graphic Artist

BOMA members often compete with each other for clients, deals and market share, but when we sit down together to do the work of BOMA and to better our industry, that all gets left behind. And the best part: Along the way, we become friends. Anyone who attended BOMA’s annual conference in Seattle this past June got to see this firsthand. We heard world class speakers and took part in the industry’s best education, but just as important, we shared ideas and challenges and discussed new strategies on how we’re going to strengthen commercial real estate. Those ideas and strategies have been simmering and now we have the opportunity to put words into action; we do this by continuing to work together for a common set of goals. Defending our industry, educating ourselves and the next generation and deepening our working and personal relationships will move us towards those goals. One of the immediate goals is advocacy, and how we work together in defense of the industry. The issues are staring us right in the face—leasehold depreciation, carried interest, capital gains, to name just a few. On Capitol Hill, we have some huge supporters in the House and Senate, but many legislators either don’t understand or don’t care about our issues. We have

a strong voice, but we are up against some formidable, but not insurmountable, odds. Our job is to remind lawmakers that deals get done and jobs are created only when the business environment allows it, and that onerous legislation and regulation will stop progress dead in its tracks. This is an important message to take straight to your Senators and Representatives as they visit their home districts in August, and it is a message that will resonate for the foreseeable future. But we all have to stay informed. Watch the news, go online and make sure you know what’s going on in the economy, your Statehouse and in Washington. BOMA International needs you to be armed with knowledge and passion so we can succeed together. The great thing about BOMA members is that we have survived over the years by adapting to changes in our industry and to economic conditions. For the last 105, BOMA has done the same and, working together, BOMA will continue to adapt and even reinvent itself to meet the challenges ahead. Change isn’t easy, but working together, we can continue to build on our solid foundation, reinforce where we lead and explore new ideas and business models that will drive the future. I look forward to the year ahead, and I know we are strongest when we work together. We are “Better by Association.”

Joseph W. Markling Chair and Chief Elected Officer

Published by: Building Owners and Managers Association (BOMA) International BOMA International Officers Chair and Chief Elected Officer Joseph W. Markling CBRE Los Angeles, Calif. Chair-Elect Richard W. Greninger, CPM Carr Properties Washington, D.C. Vice Chair John Oliver, CPM Wells Real Estate Funds Atlanta, Ga. Secretary/Treasurer Rebecca B. Hanner, CPM, RPA Cassidy Turley Raleigh, N.C. President and Chief Operating Officer Henry H. Chamberlain, APR, FASAE, CAE BOMA International Washington, D.C. Call for Nominations: Vice Chair and Executive Committee Members

BOMA International’s Nominating Committee is seeking candidates for the position of vice chair and for five principal members and one associate member 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 absolut e 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.

The BOMA Magazine July/August 2012

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legislative UPDATE

BOMA Approves New Policy Position During BOMA International’s annual conference in Seattle, a new policy position on lease accounting standards was approved by BOMA’s Government Affairs Committee on June 23, followed by unanimous approval by the Board of Governors on June 24. The position warns against proposed changes to the Financial Accounting Standards Board (FASB) standard that would alter the way that landlords and tenants account for their leases, potentially leading to a dramatic increase in the level of debt that appears on some corporate balance sheets, without there being any real change in the economic condition of the tenant. BOMA International’s new policy reads:

Chair of BOMA’s Government Affairs Committee Susan Engstrom at the Board of Governors Meeting.

BOMA International opposes altering the current lease accounting standards in such a way that will negatively impact the real estate industry and economy as a whole by requiring businesses to unnecessarily burden their balance sheets with

additional liabilities that do not recognize true economic reality.

Congress Likely to Face ‘Fiscal Cliff’ at Year’s End—BOMA’s Grassroots to Respond Should it fail to act prior to the November elections, Congress will have to address what has become known as the “fiscal cliff” during a lame duck session, as a wide array of temporary tax rates will expire and a variety of spending cuts will take effect that together total roughly $7 trillion. In addition, Congress must also consider how to handle the tax “extenders,” most of which expired at the end of 2011, including the 15-year leasehold depreciation provision. Among the tax provisions set to expire are: the Bush-era tax cuts; reduced rates on dividends and capital gain; the payroll tax break; reduced rate and exemption levels for the estate tax; and the patch to the alternative minimum tax (AMT). On the spending front, Congress must decide how to address automatic cuts to defense and domestic programs that were triggered as a result of the failed Super Committee, as well as reductions in Medicare reimbursements for doctors and emergency benefits for the long-term unemployed that will run out. In preparation for many of our key tax issues to be under consideration in the anticipated lame duck session, BOMA International is calling on its local

associations to reach out to their U.S. Senators and Representatives throughout the months of August and September. BOMA’s advocacy staff held a free webinar on July 25 to provide “how to” information and talking points on tax issues to prepare members to address these issues with their elected officials. The webinar has been archived and is available anytime. We will also send “leave behind” folders to each local association that participates in this “local edition” of the National Issues Conference.

Landlord-Tenant Collaboration Guide Conquers the Split-Incentive BOMA International, in collaboration with the Rocky Mountain Institute, has released Working Together for Sustainability: The RMI–BOMA Guide for Landlords and Tenants, a free e-book filled with resources to help landlords and tenants collaborate on energyefficiency goals for buildings. The guide outlines five steps both tenants and landlords can initiate that impact and address green lease and split incentive issues. The e-book also includes dozens of online Continued on page 10

The BOMA Magazine July/August 2012

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legislative UPDATE resources across the five major “steps” of collaboration. Working Together for Sustainability can be downloaded for free at www.boma.org.

House Bill Would Limit EPA’s Regulation of Lead On June 7, Rep. John Sullivan (R-Okla.) introduced H.R. 5911, the “Lead Exposure

Reduction Amendments Act of 2012,” to amend the Toxic Substances Control Act relating to lead-based paint renovation and remodeling activities. The intent of the legislation is to clarify some outstanding issues related to recent regulations that have already gone into effect for residential real estate, and to apply them to any future rulemaking for commercial

buildings. The legislation would also prohibit the U.S. Environmental Protection Agency (EPA) from proposing any new regulation applicable to target housing or commercial and public buildings until EPA conducts a study demonstrating the need for such an action. The bill has 14 co-sponsors. The Senate companion bill (S. 2148) was introduced March 1 by Sen. James Inhofe (R-Okla.).

LEED Balloting Pushed to 2013

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In response to concerns from key members, the U.S. Green Building Council (USGBC) has pushed back balloting for LEED 2012 until approximately June 1, 2013. Worries that there would not be enough time to adequately review the extensive changes posed for the new LEED version were pervasive through the various comment periods. USGBC has allowed that, if “the market indicates readiness for the ballot,” they will be open to pushing it up into the spring of 2013. Due to the process extension into the 2013 calendar year, LEED 2012 will now be referred to as LEEDv4. BOMA International welcomes USGBC’s decision and applauds them for listening to the concerns of their members and stakeholders. BOMA International has been and will continue to be very active in all the LEEDv4 comment periods, as well as communicating with USGBC leaders about how the proposed changes impact our members.

NLRB’s ‘Ambush’ Election Rule Struck Down The U.S. District Court for the District of Columbia struck down the “ambush” or “quickie” union election rule put in place by the National Labor Relations Board (NLRB) last year. The court held that the Board lacked the authority to issue the rule with only two members in place. As

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The BOMA Magazine July/August 2012

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it stands currently, the Board may not conduct an election using the procedures set forth in the rule. The NLRB is expected to file an appeal; however, the earliest a court would rule on the appeal would be October or November. Had it gone into effect, the rule would have enabled union elections to take place in as little as 10 days after filing a petition. The current median for elections is 38 days, with 95 percent of all elections taking place within 56 days.

DOJ Postpones Compliance Deadline on Permanent-PoolLift Requirements In a significant victory for the real estate industry, the Department of Justice (DOJ) postponed the compliance deadline with new federal requirements for permanent pool lifts under the ADA 2010 revised requirements until January 2013. Under the revised requirements, public access pool owners were required to retrofit their pools with permanent, hard-wired pool lifts by March 15, 2012, even though DOJ had never asked for formal comment from affected stakeholders about the substance, terms, economic impact or feasibility of the permanent-lift requirements. In response to real estate industry concerns, DOJ issued an extension of time for public comment on whether the final compliance deadline should be extended. DOJ noted the significant concerns of a substantial number of pool owners and operators with respect to what was required. This includes an insufficient supply of pool-lift equipment in the United States, safety of children around unmanned pool lifts and significant costs that would be imposed for the purchase and installation of the lifts. The full House of Representatives approved an FY2013 appropriations bill that includes real estate-supported

language prohibiting the Justice Department from using any 2013 funds for enforcement of the new permanentpool-lift requirements Whether the policy “rider” on the ADA pool lifts survives in the Senate remains to be seen. Continued on page 13

Belco Pipe Restoration Renovates Valuable New York City Projects Belco has been in constant development of its lining technology in New York City with over four million dollars invested in research and developbefore ment. The mission is to bring together the most capable technologies and the financial resources to buy and employ the best in the industry. Belco has managed to establish itself in an industry marred by inadequate contractors. The relentless pursuit of perfection coupled with an ongoing backlog of halmark properties has New York City and regional property owners taking notice. Belco’s General Manager stated “The competitive landscape is marginal, solutions are used based on the companies capabilities. Other companies have one technology and force feed the solution. Clearly the field of pipe restoration consists of a great wealth of technology that has been misapplied.”. Belco’s answer has been to cherry pick the strongest technologies and address issues that arises by applying the wealth of technologies at their disposal. Belco has worked among the most valuable properties in the United States lining pipe at a high rise on Park Avenue in New York City. Belco was able to line 700 feet of dual temperature condenser risers in one weekend with cascading sizes of 1¼ to 4 inch pipe in a noninvasive process and a fraction of the cost of replacement. Belco has tested the coatings since the application with help of national structural engineering firms confirming the capabilities of their proprietary coating process.

cleaned

lined

Investments having paid off-- since completing the requisitioned 2100 ft of pipe of 8400 ft to be scheduled at a hallmark high rise property on Park Avenue, business has been steadily coming to Belco. The company has managed to draw references at Sak’s 5th Avenue where the building avoided closing major areas of premium retail space by lining 500 ft of 5 inch roof drain with Belco’s state of the art robotic technology. Carnegie Hall was able to avoid the excavation of the main lobby by employing a robotic spray lining for a 120ft roof drain. The New York Stock Exchange faced similar issues where decommissioning any area of the floor for any length of time was impossible. Belco averted closure by the employ of robotic lining. Pier 66 on the Chelsea Piers was able to reinstate 100 ft of waste water lines riddled with holes ranging up to 3 inches in diameter with the use of our cured in place pipes lining system which allowed tenants to use their restrooms and scrap the use of portable restroom. The innovation of robotic spray systems with cured in place pipe and blow through epoxy lends itself to attacking any pipe matrix in a building or industrial/ municipal facility. The references demonstrate the wherewithal of the applicator and the strength of the contractor’s capability to stand behind their work.

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BOMA’s National Advisory Council Reaches ‘New Heights’ in NYC By Karen W. Penafiel, CAE

Cushman & Wakefield’s Ken McCarthy.

To kick off the meeting, Ken McCarthy, Cushman & Wakefield’s senior economist, predicted that we are just about at the point of economic recovery where hiring will resume. But after 10 quarters of recovery, our economy has only grown 6.2 percent and we’ve gained back less than half the jobs we lost. The lack of leadership in Congress and the lack of certainty in our tax code have delayed the decision to hire. Washington, D.C., New York City and Houston are the only markets where jobs have grown over the past three years and vacancy rates have declined. McCarthy predicted that nearly every major market should see improvement in vacancy rates over the next four years. Scot Horst, senior vice president of the U.S. Green Building Council (USGBC), focused on the growing dilemma at USGBC over recertification vs. ongoing certification. NAC members vehemently expressed their frustration with USGBC’s

changing requirements and the direction the LEED program is moving in, especially for existing buildings. Horst’s participation at the NAC meeting is just the beginning of the dialogue between USGBC and BOMA. We are were pleased that, shortly after airing our concerns, USGBC made the decision to slow down the next version of LEED (LEEDv4) and hold an additional public comment period. Jeremy Moss of Silverstein Properties, Matt Duthie of Jones Lang LaSalle and Jim Doran of Vornado participated in a panel discussion on what it takes to be “state of the art” in downtown Manhattan. All agree that tenants are not necessarily looking for a LEED Gold or Silver label, but they are looking for a commitment to sustainability. However, they pointed out that tenants are still often unwilling to pay for it. Cogeneration is not paying for itself, even with New York’s utility rate structure. Phil Mobley of Kingsley Associates joined us to share Kingsley’s insights from capital sources. This included their predictions on the availability of funding from various capital sources, as well as tenant trends, satisfaction and projected space needs. In response to a 2012 Q1 space needs survey, 50.2 percent of respondents expected no change; 27.5 percent were unsure of future space needs; 14.6 percent said they would need more space; 4.5 percent reported they’d need less space; and 3.1 percent of respondents plan to move out of their space. The survey is of multitenant space, which was contrasted with reports of corporate space users giving back 20 to 30 percent of their space over the next five to 10 years, as reported by IFMA and CoreNet Global. The highlight of the conference was the tour of Tower 1 of the World Trade Center, organized for us by BOMA/New York member Jim Kleeman of the Port

NAC members’ view of 1 World Trade Center.

Authority of NY & NJ. We toured the building on Friday, and then on Monday they erected the next level of steel to surpass the Empire State Building as the tallest building in the city. The tour highlighted many of the “lessons learned” from 9/11. The new tower has much wider stairwells with ample landing space to allow people exiting the building to stop and take a rest without impeding the flow of egress. They also have a third stairwell dedicated to first responders, so that rescue workers ascending the stairs aren’t working against the occupants who are leaving the building. The tower has two cement cores that will prevent progressive collapse should another airplane strike the building. However, this comes with a price, and without major tax breaks and other incentives, the new World Trade Center buildings would not be able to offer competitive leasing rates, even by New York standards. The National Advisory Council is made up of senior executives from the nation’s largest companies that own and manage commercial real estate and is chaired by Patrick Tyrrell, COO, Vornado/Charles E. Smith. The NAC Fall Conference is being planned for October 4-5, 2012, at the Phoenician in Scotts dale, Ariz. For more information about membership in NAC, contact Karen Penafiel at kpenafiel@boma.org. To see meeting presentations and materials, go to www.boma.org/membership/nac. BOMA

On April 26-27, BOMA International’s National Advisory Council (NAC) convened in New York City to discuss industry trends, the economy, USGBC’s vision for LEED and what it takes to be a highperformance building in New York. We topped it off with a tour of Tower 1 of the World Trade Center. Great presenters, strong attendance of industry leaders, very interactive group discussions and a great venue for business networking made it one of the best NAC events ever.

July/August 2012 The BOMA Magazine

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state & LOCAL Update

BOMA/Cleveland Victory CONGRATULATIONS TO BOMA/CLEVELAND, whose efforts were instrumental to the passage of Ohio H.B. 18, which will benefit commercial real estate owners, managers and business enterprises alike. H.B. 18 authorizes a $500-per-employee

Ohio Governor John Kasich signs Ohio H.B. 18 into law.

grant for a business that expands into a facility that has been vacant for 12 months. This grant will not only assist in filling long vacant commercial space, but will encourage small businesses to rent space.

BOMA/Metro Detroit Embroiled in Effort to Maintain Nonrecourse Carve Outs (Portions of this update item were contributed by Paul S. Magy with Clark Hill PLC.) Two recent court cases in Michigan have prompted much concern around the real estate industry on the potential for a borrower to be held personally and financially liable in the case of insolvency with a commercial mortgage-backed securities (CMBS) loan. In Wells Fargo Bank, NA v. Cherryland Mall and 51382 Gratiot Avenue Holdings Inc. v. Chesterfield Development Company, the court has chosen to ignore the basic purpose of CMBS loans and the rationale behind SPE (“single or single-purpose entity”) status. Instead, the court parsed intricate contract language to determine that

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The BOMA Magazine July/August 2012

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New Jersey Court Holds Vacant Property Owners Liable

applies only to commercial property owners, not residential or owners of vacant commercial lots (i.e. vacant land). Previously, owners of vacant commercial property were able to argue that their non-revenue generating commercial property was more akin to a commercial lot; the Gray decision changes that dramatically. m

On May 7, New Jersey Appellate Court issued a ruling in Gray v. Caldwell Wood Products, stating that liability could be imposed on vacant commercial property owners who fail to keep their sidewalks in good repair and free from such other hazards as snow and/or ice. This ruling

BOMA

insolvencies, caused by the economic downturn, transform nonrecourse guarantees into full recourse guarantees. One of the attractive features of CMBS loans is that the borrower or guarantor is shielded from any personal liability. However, the loan documents failed to specifically say such and the court therefore ruled in contradiction of common industry practice. The question before the courts is whether a borrower in a nonrecourse CMBS loan must remain solvent to retain its status as an SPE. Cherryland is now pending on application for review by the Michigan Supreme Court and Chesterfield is on appeal to the United States 6th Circuit. The Michigan Court of Appeals wrote that, if its decision in Cherryland appeared “incongruent with the nature of nonrecourse debt” and could result “in economic disaster for the business community in Michigan,” it was a matter of public policy best addressed by the legislature (Cherryland at 16). So, BOMA Michigan did just that. On March 29, Michigan’s governor signed the Michigan Nonrecourse Mortgage Loan Act into law, following overwhelming bipartisan support in the Senate (37-5) and the House (97-12). It expressly declares a borrower’s “solvency” unavailable as a triggering event for a nonrecourse carve out in a commercial mortgage loan on Michigan property, characterizing such a springing recourse as a deceptive trade practice and, as such, unenforceable. The act was applied retroactively to cover future claims that may be brought on existing loan documents, as well as claims that are currently pending or being litigated through the courts, including those that may have already resulted in a judgment so long as the cases are under appeal. The lender now plans to challenge the constitutionality of the new law (or at least its retroactive provisions). BOMA International’s Industry Defense Fund helped fund BOMA/Metro Detroit’s amicus briefs to the courts, and this issue is one that we’re all watching very closely. Its ramifications may extend well beyond Michigan. The question of whether a post-closing insolvency covenant should ever trigger nonrecourse carve out guarantor liability is one with billions of dollars of implications for the real estate industry around the country.

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July/August 2012 The BOMA Magazine

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Codes & Standards Update

BOMA Success at ICC Code Hearings Public hearings to consider modifications to the next editions (2015) of five of the 13 building codes published by the International Code Council (ICC) were held in Dallas, April 28-May 7. More than 1,600 proposals were considered, and BOMA’s codes and standards advocacy team was on hand to represent the interests of BOMA members and the entire commercial real estate industry. BOMA, working with other real estate groups, was successful in gaining committee approval for our major objectives, including: • BOMA supported proposals to harmonize the ICC codes with the revised ADA standards (effective March 2012)—all proposals were approved. • Mandatory retrofit of firefighter breathing air replenishment systems was proposed for new and existing commercial

buildings, including costly annual inspections and testing. BOMA joined the National Multi Housing Council in forging an agreement with proponents to instead put these provisions in an optional appendix that must be adopted separately—a major victory for our industry. • BOMA led opposition to mandatory installation of water leak detection systems on all plumbing fixtures and when ANY piping is replaced—these proposals were defeated. • Mandatory tornado shelters in all new and existing commercial buildings in high-tornado-prone areas were disapproved. • Requirement for potable water system purging following any repair was deleted.

• Change requiring fire-protected openings in existing buildings adjacent to new construction was disapproved. • Proposal mandating special inspections for roof gardens and landscaped roofs was defeated. Final voting on all proposals will take place at hearings this October in Portland, Ore. For more information on the ICC code development process, visit www.iccsafe. org. To inquire about BOMA’s preparations for the 2012 final hearings, contact Dave Tyree at dtyree@boma.org or Ron Burton at ronburton@ptwadvisors.com. Also follow Ron’s ICC updates on Twitter @ronburtonBOMA.

Updates for ASHRAE Green Building Standard 189.1 The development committee for ASHRAE 189.1, Standard for the Design of High-Performance Green Buildings approved updates to the next edition (2014) during ASHRAE’s Annual Conference this June in San Antonio, Texas. BOMA holds a seat on the committee and continues to

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The BOMA Magazine July/August 2012

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Coalition for Current Safety Codes (CCSC)

broader support for the adoption of the latest editions of ICC and NFPA model codes. The joint ICC/NFPA announcement stated: “We will use this new platform (CCSC) to explain the benefits of public-/private-sector partnerships that provide the United States with a robust system of codes and standards development involving industry, manufacturers, code administration professionals and the public.” The coalition also plans to address “Economic challenges and state and local budget cuts (that) have at times obscured the benefits of updating building, sustainability, electrical and life safety codes and standards in a timely manner.” The activities of the CCSC could certainly impact local and state code adoption efforts, and BOMA’s advocacy team will work closely with BOMA locals to help stay current on CCSC actions.

Runs in:

development cycle in 2014. The ICC “family” of model codes is developed on a three-year publication cycle, with the next editions due in 2015. Because of the large volume of code change proposals ICC must process for each of its 13 codes during the publication cycle, ICC initially divided the codes into two groups, each with a oneyear development process, starting in 2012. However, the expected crush of proposals to modify the IgCC has now forced the Board to institute an additional development cycle in 2014. The current 2012 cycle is processing changes for the commercial building, plumbing, mechanical, fuel gas and private sewage disposal codes. The 2013 cycle will now process proposals for the energy, existing commercial buildings, fire, property maintenance, residential, swimming pool, wildland-urban interface and zoning codes. For more information, contact Dave Tyree at dtyree@boma.org.

ICC Establishes IgCC Code ICC and the National Fire Protection Development Cycle in 2014 Mar/Apr, July/Aug, Nov/Dec

Association (NFPA) recently announced the formation of a new coalition, with the goal to create more public awareness and

The ICC Board of Directors recently voted to move the International Green Construction Code™ (IgCC) into a separate

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Boma Salsbury Industries

BOMA

represent the interests of BOMA members and the larger commercial real estate community in the ongoing development of this green building code. A number of critical issues proposed for inclusion in the standard were debated and balloted—many with potentially significant impacts on existing commercial buildings, including: • Addition of “lighting quality” to the scope of the standard—BOMA was successful in eliminating vague “health and safety” goals and adding limits on applications in multi-occupant spaces. • BOMA led efforts to defeat a proposal to eliminate an exemption to full building commissioning for buildings less than 5,000 square feet. For more information, contact Ron Burton (ronburton@ptwadvisors.com).

July/August 2012 The BOMA Magazine

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leading the way

Meet the New Chair

Joe Markling BOMA Leader, NASCAR Fanatic

What’s ahead for BOMA over the next year? We don’t want to bite off too many things, but the things we do bite off are going to be big chunks as we work inward and outward. Inward, we’re going to focus more on the relationship between BOMA International and the BOMA local associations. We want to support their needs more, which vary local by local, to help their businesses grow and thrive. Outwardly, we need to look at our industry partners and how we are or aren’t working together to defend our industry. In many cases, we have great coalitions and partners that we work with, and I want to nurture and expand those partnerships. There are some areas where we go it alone. In those instances, it’s time to put pressure on our partners to step up and help us more so we’re not rowing the boat all by ourselves.

Any insights from what’s happening in California that might translate to the national level? Nothing surprises me anymore about California. I’m a native of southern California, but the infrastructure and how the state, counties and cities are run are unsustainable. Other states are watching to see how California is going to deal with our fiscal crisis. Heads have been in the sand for decades now, and it’s going to come to fruition here very soon. You can’t just tax your way out of the problem; there has to be some serious austerity. I think how California goes, also goes much of the rest of the country. The commercials that I see every night are trying to lure businesses to move out of California. It’s staggering and scary for a place that I call home.

We have some big legislative and regulatory battles ahead. What should BOMA and its members be doing in defense of the industry? My passion has always been about advocacy and defending our industry from regulation and legislation that just doesn’t make sense. I’m not a big fan of broad-brush solutions. The easy thing to do is to take the broad brush and say we’re not going to do this anymore, but there are often unintended consequences. We’re trying to punish or regulate the action of certain groups of people, but many others suffer as well. The proposed tax increase on carried interest is a great example. That’s designed to punish Wall Street hedge fund managers. When we go

to Capitol Hill and talk to legislators, most of them have no idea that most private real estate investments are made up of partnerships or LLCs, and how we raise capital from private individuals relies on carried interest. Those individuals are willing to take the risk because they have a reasonable reward. If the reward is not there, there is no reason for them to take that risk. Advocacy begins for me with educating lawmakers. I don’t expect legislators to be experts on everything, but it amazes me how out of touch some of them are.

How does someone get the most out of their BOMA membership? I tell people, when you become a BOMA member, you will get the most out of it if you commit yourself to doing the work of BOMA. You may be a vendor, a manager or a property owner, but when you come to a BOMA event, you are there as a BOMA member doing the work of BOMA on behalf of the industry. This is how we are ultimately “better by association,” and that association or relationship makes us want to do the work of BOMA.

Tell us something about yourself that others may not know. I’m a huge NASCAR fan. For my 40th birthday, my wife surprised me with a trip to the Daytona 500 and it was the best thing ever. I follow it very closely and I just love it. If you ask me who my favorite driver is, the answer is always the same—anybody but Busch. m BOMA

JOSEPH W. MARKLING was sworn in as the 2012-2013 chair of BOMA International during the Every Building Conference & Expo this past June. Markling has worked in commercial real estate in southern California for more than 30 years, and as managing director with CBRE’s Strategic Accounts Group, he oversees 60 million square feet of office and industrial properties nationwide. He served three years as chairman of the board of BOMA/Greater Los Angeles and served on the Executive Committee of BOMA International.

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AROUND THE INDUSTRY

Kilowatt Crackdown Winners Announced THE BENTALL KENNEDY TEAM IN SEATTLE recently received the 2012 Kilowatt Crackdown Award. The Kilowatt Crackdown, first pioneered by BOMA/Seattle-King County, has been a tremendously successful program as part of a larger strategy to encourage market transformation. â&#x20AC;&#x153;BOMA/Seattle-King County is committed to working with and for our members and as partners with our local utilities and BetterBricks to educate, inform and achieve energy reduction through best practices, innovation and commitment to improving the energy use in the built environment,â&#x20AC;? says BOMA/Seattle-King County President Rod Kauffman.

CBRE Report Shows Signs of Global Recovery Office markets are transitioning from contraction to recovery, according to CBREâ&#x20AC;&#x2122;s latest report, â&#x20AC;&#x153;Prime Office Occupancy Costs: Office Markets in Transition.â&#x20AC;? Of the 133 global office markets tracked in the

report, office occupancy costs increased in 80 markets during the first quarter of 2012 year-over-year. On average, costs increased by 3.6 percent globally. Asia Pacific and the Americas saw the largest increases, at 7.8 percent and five percent, respectively. Europe, the Middle East and Africa (EMEA) experienced minimal increases of 0.4 percent for the EMEA region. Asia Pacific markets now

BIRD S#*T HAPPENS

The Bentall Kennedy team accepts the Kilowatt Crackdown Award.

have six of the 10 most expensive markets; Hong Kong is the most expensive market. Characteristics of the most expensive markets and those that reported the largest occupancy cost gains include growth dynamics, resurgent Central Business District locations, diversified economic bases and shortage of quality space. Download the full report at www.cbre. com/EN/research.

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The BOMA Magazineâ&#x20AC;&#x192; July/August 2012

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BOMA lost a great leader and good friend when W.D. “Dub” Hill passed away at age 93. Hill was the executive director for BOMA/ Dallas for 32 years, during which time the local association flourished, BOMA International became an effective national voice and BOMA became synonymous with commercial real estate in Texas. Beyond BOMA, he was also active within the City of

AlliedBarton Makes LearningElite List AlliedBarton Security Services has been recognized as a LearningElite Company by Chief Learning Officer magazine for the second consecutive year. Honorees and rankings were announced on Sunday, April 1, at a gala at the Loews Miami Beach Hotel in Miami Beach, Fla. AlliedBarton was the only security officer services company to be honored. AlliedBarton’s professionally designed and executed approach to training and

Dallas, serving on several boards and commissions, including the Dallas Fire Council and the Economic Development Council. In addition, he was a member of the Board of Trustees at Methodist Hospital for 12 years, served on many boards at Preston Hollow United Methodist Church and taught high school Sunday school at Glen Oaks Methodist Church. Hill is survived by his wife of 62 years, Mary Elizabeth Hopkins Hill, and their four children and 13 grandchildren, as well as countless people in real estate he influenced in many ways.

development, the AlliedBarton EDGE , provides employees at all levels comprehensive and ongoing training in a variety of formats, including eLearning. The LearningElite program honors the best organizations for learning and development. The peer-developed benchmarking program recognizes organizations that employ exemplary workforce development strategies to deliver significant business results, which are beneficial to their organization, industry and the learning and development field. Learn more at www.AlliedBarton.com.

BOMA Mag Snags Apex Design Award The BOMA Magazine and designer Amy Belice won a 2012 Apex Award for magazine design for the September/October 2011 issue. The APEX Awards for Publication Excellence is an annual competition for publishers, editors, writers and designers who create print, Web, electronic and social media. BOMA

rd.

In Memoriam—Dub Hill

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BOMA 2012

Rocks Seattle

By Amanda Marsh and Blythe Lawrence

Gates on Security and Global Policy Security! When BOMA-ians think of the word, it’s usually on a building level. At Sunday’s General Session sponsored by Yardi, however, Bush and Obama Defense Secretary Robert Gates moved the topic into the realm of leadership and global policy. The political events of the past 18 months will present more challenges than opportunities, said Gates. Another concern: Our allies are increasingly not taking risks and being full partners in war. Doing so here on the defense and intelligence side would be a “grave mistake,” he said, and we can’t repeat the mistakes of the past—which happened for the decade before 9/11—without rebuilding at great cost.

Big 5 BOMA Concerns What’s on the mind of BOMA members (besides what they would be wearing to the TOBY® Awards)? During the State of the Industry address, BOMA President and COO Henry Chamberlain sliced it down to bite-sized nuggets. The top five pressing issues: vacancy rates, demands/life balance, real estate asset values, job security and a qualified workforce. We’re dealing with a lot this year, so a “fiscal cliff” is ahead—tax cuts, tax extenders, alternative minimum tax, sequestration, healthcare and the debt ceiling. There is better news, though; vacancy rates are down to 16 percent overall, 12.8 percent in downtowns and 17.8 percent in the ’burbs. The hightech markets are rebounding the quickest, while a lack of new Class A supply is kicking up rental rates in top-tier markets. But the big question is on the future of the workplace, now that CoreNet Global reports that corporate users will be shedding 40 percent of their space by 2020, while Kingsley Associates doesn’t see reduced space demands for multi-tenant buildings—all pointing toward a bifurcated market.

Real Estate 2020—The Shape of Things to Come

The Monday General Session industry panel, moderated by ALM’s John Salustri, was a group well ensconced in the corporate world. Gensler’s Karen Thomas said her clients want to do more with less, have better space flexibility, more mobility and less personal space.

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She said that one billion people globally are already fully mobile. Shorenstein’s Andrew Friedman noted that there used to be a much bigger focus on the Central Business Districts (CBDs), but now all sorts of firms, from tech to financial services, are migrating into larger floor plates not necessarily found in those towers. Instead, they’re looking at emerging centers right outside those CBDs. Gordon Feller with Cisco said they spend a lot of time holding the hands of owners, managers and investors to find technology not being harnessed, and showing them how it can make buildings “cleaner, greener, smarter and less expensive to operate.” AT&T’s Ron Cook said there’s a greater amount of people who want to work remotely, so its focus is shifting to shared office space and office “neighborhoods” grouping together like employees. “It’s difficult to devote resources on a dedicated basis if [space] is used only 40 percent of the time,” he explained.

More than 160 buildings achieved the BOMA 360 Performance Program® designation the past year. BOMA 360 Council Chair Dan Chancey congratulated the new class during the Monday General Session, joining many of the designees on stage (pictured). A Kings ley Associates survey found that there is higher tenant satisfaction in 52 out of 54 categories for BOMA 360 buildings, and a designee said that, in order to remain competitive, the designation must be in an owner’s arsenal. Leading the overall BOMA 360 count: CBRE, with 60 properties; Brookfield Office Properties, with 43; and Piedmont Office Realty Trust, with 29. The top cities: Houston, Dallas and metro Washington, D.C.

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Premier Education BOMA 2012 featured more than 40 education sessions across five tracks, and the sustainability and leadership sessions were hopping. LEED isn’t enough—that’s what The CADMUS Group’s Natalie Bodenhamer and Sustainable Performance Institute’s Barbra Batshalom (pictured) suggested during a session on institutionalizing sustainability. There’s an organizational gap between sustainability on an individual project basis and the ability to do it all the time, Batshalom said. Why aren’t we there yet? We keep focusing on end-of-pipe solutions (e.g., LEED). “It’s a good vehicle but only a temporary focus,” she continued. “It’s not company culture, systems or processes.”

Thompson, Cousins Properties’ Linda Beauchamp and Mayberry Electric’s Lisa Hollingshed are actually from Atlanta. Not only did they come to the BOMA Conference in Seattle for the educational sessions and networking, but also for the cool weather—they left behind sweltering temps in the mid-’90s.

Happy Birthday BOMA/ Seattle! 1912, the year BOMA/Seattle-King County and BOMA/Spokane were incorporated, was also the first year Seattle hosted the BOMA International annual conference. It took place at the Fairmont Hotel, and it took the Chicago delegation five days to arrive on the train. Seattle has hosted the convention four more times: 1931, 1950, 1992 and this year. BOMA/Seattle-King County President Rod Kauffman (pictured) sees the city hosting the convention again on the centennial of its founding as coming full circle. (The incorporation papers were delivered on horseback.) For the 100th anniversary, BOMA/Seattle-King County hired UW students studying urban planning to put together an exhibit of clips and articles chronicling the organization’s century in Seattle.

Attendance from Across the Globe The BOMA Show had one of its best turnouts of international delegates in years, with attendees from Australia, Brazil, Canada, China, Japan, Korea, Mexico, New Zealand, The Phillipines and the UK, to name just some of the countries represented. Pictured are some of the delegates who chocked up the frequent flier miles to attend, all decked out and having a blast at the TOBY® Reception.

An Energized Expo

Opening Party Takes Flight What do you do after touchdown in Seattle? Find yourself surrounded by planes again … at the Opening Party at the Museum of Flight, hosted by BOMA/Seattle-King County, of course. Although it took some coordination to get the astronaut in the group photo, Behringer Harvard’s Steve Sauriol proclaimed, “Houston, we have no problem.” Of course they don’t—he, EPIC Response’s Jen

The only place brimming with more open-door anticipation than the opening of the Every Building Expo is Best Buy on Black Friday. The expo floor had more than 400 exhibits, from pest control to lighting control, toilet sensors to toilet paper and, of course, Muzak—all the fun things that make building owners and managers tick. (Or it may have just been the games of mini golf and swag being handed out at the booths.) Why does M-M Properties Senior Manager Cindy Magouirk (pictured with fellow Texan Mark Lallier of Waste Management) have an enormous grin? By sinking a putt down the middle of a false green provided by Waste Management, she qualified to enter a raffle for a free set of clubs and other goodies. Continued on page 24

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Building management stars came out to play for commercial real estate’s version of the Oscars during The Outstanding Building of the Year® (TOBY®) Awards sponsored by Kimberly-Clark Professional*. (Except Billy Crystal had nothing on our hosts, Stream Realty’s Ray Mackey, Jr. and JP and Associates’ Jim Peck.) Ninety-two (92) buildings from 59 cities competed this year, including a first-ever from Arkansas. One of the most important parts: The transfer of BOMA International chairmanship from Hokanson Companies’ Boyd Zoccola to CBRE’s Joe Markling (pictured). “I follow a model of faith, family and friends,” Markling said in an emotional speech. His theme for BOMA in 2012-2013: “better by association,” encouraging members to form coalitions, expand outreach and be influential in defense of the industry.

2012 is the third year that BOMA welcomed local students to soak up advice from real estate pros who mentor them in special sessions during Student Day. Enrollment—this year, 66—was the highest ever. Pop quiz: Can you tell who’s the student and who’s the real estate pro? Obviously, there’s something about this job that keeps CBRE’s Melissa Jones young (pictured, on the very right; did you guess correctly?).

There are not only outstanding people but outstanding buildings at BOMA. Pictured are BOMA Chair Boyd Zoccola, Kimberly-Clark Professional*’s Dan DeCriscio, Jones Lang LaSalle’s David Hopwood, Irvine Co.’s Mike Bennett, BOMA/Chicago’s Michael Cornicelli and TOBY® Chair Bruce Koehler celebrating Irvine Co.’s 49-story, 1.5 million-square-foot, LEED Platinum Hyatt Center in Chicago, which won the TOBY® in the Over 1 Million Square Foot category. See all the International TOBY® winners in the next issue of The BOMA Magazine. If you can’t wait, check out BOMA.org right now. BOMA

Outstanding People, Outstanding Buildings

Congrats to the inaugural class of BOMA Fellows honored during TOBY® night: Rob Brierley, Brookfield Office Properties; J. Michael Coleman, AlliedBarton Security Services; P. Marc Fischer, Trans western; Patrick M. Freeman, Wells Real Estate; Thomas W. Gille, CAC Real Estate Management Company Inc.; Murray S. Greene, Greene Commercial Real Estate Group; David. W. Hewett, davidwhewett, inc.; John G. Oliver, Wells Real Estate Funds; Larry F. Soehren; Kiemle & Hagood Company; and Brenna S. Walraven, USAA Real Estate Company.

About the Authors: Amanda Marsh and Blythe Lawrence are reporters for Bisnow and wrote the Show Dailies for the 2012 Every Building Conference & Expo. Find out even more about what happened at the event by reading their Show Dailies e-blasts at www.boma.org. Learn more about Bisnow at www.bisnow.com.

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Board of Governors Highlights By Laura Horsley BOMA leadership got down to business during the Board of Governors meeting at BOMA’s annual conference in Seattle in late June. During the General Consent portion of the meeting, name changes were approved for two BOMA local associations. BOMA/ Birmingham’s name was changed to BOMA/Alabama and BOMA/ Huntsville’s name was changed to BOMA/ Northern Alabama. BOMA/Utah’s region change was approved from Pacific Southwest Region to Pacific Northwest Region. BOMA Chair and Chief Elected Officer Boyd Zoccola, BOMA/Indianapolis, presented Life Memberships to Wayne Baldock, RPA, CPM, BOMA/Nashville, and John P. Kelly with BOMA/Minneapolis. ZocGlenda Simcox receives cola also presented Distinguished Serthe Distinguished Service Award. vice Awards to Retired Executive Director Glenda G. Simcox with BOMA/Fort Worth and Kent D. Warden, RPA, retired executive vice president of BOMA/Minneapolis. Zoccola delivered his Report of the Chair remarks, thanking the Board of Governors for their strong support over the past year and reminding them that BOMA gives members a strategic advantage at a time when budgets and resources continue to be cut. “The state of the association is strong and we are positioned for success as your national partner with new initiatives around asset management and more,” said Zoccola. “But we do have challenges to solve together, and a hallmark of BOMA throughout 105 years has been our ability to remain relevant and to reengineer ourselves to create value.” BOMA Chair Boyd Zoccola BOMA 360 Council Chair delivers the Report of the Chair. Dan Chancey, BOMA/Memphis, reported that 462 buildings had achieved the BOMA 360 designation. Chancey also announced the winners of the BOMA Local Participation Awards:

• More than 300 Members category—BOMA/Metropolitan Washington won, with 16 designated buildings in the past year. Honorable mentions went to BOMA/Dallas and BOMA/Houston, with 13 buildings each. • 150-300 Members category—BOMA/Ft. Lauderdale and The Palm Beaches won, with five buildings designated in the past year. Honorable mentions went to BOMA/Baltimore and BOMA/ Orange County, with four buildings each. • Less than 150 Members category—BOMA/Miami-Dade won, with six buildings designated in the past year. Honorable mention went to BOMA/Sacramento, with

four buildings. • Most Corporate Submissions category—BOMA/Houston won, with nine Brookfield Properties. Honorable mention went to BOMA/Minneapolis, with five Ryan Companies buildings. BOMA/Houston receives the BOMA Earl Wayman, BOMA/Seattle, Local Participation Award for Most delivered the Education Advisory Corporate Submissions. Council Update, noting that the 2012 Medical Office Buildings and Healthcare Facilities Conference achieved a record attendance of 710 attendees and that the Foundations of Real Estate Management course continues to be successful, with 15 courses scheduled by BOMA local associations this year. He also reported that the Asset Management Council is working on developing the first course of an Asset Management series of programs and that this year’s conference education included 46 sessions being offered across five tracks. BOMA International Vice Chair Rich Greninger, CPM, BOMA/ Metropolitan Washington, reported that the 2012 Experience Exchange Report included operating income and expense data from 5,460 buildings in 257 markets for 125 cities, with more than 824 million square feet represented. (See more about the 2012 EER on page 39.) Energy & Environment Committee Chair Bill Moebius, BOMA/Dallas, announced the formation of a new task force to

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BOMA

assess and implement the next steps in BOMA’s market transforsaw record participation, with more than 60 students and faculty in mation strategy. attendance. Ragans also announced that a careers brochure will be John Scott, chair of the Sustainability Task Force , BOMA/ coming out soon and that BOMA will be reaching out to veterans to Tampa Bay, reported that several BOMA members have made help them pursue careers in CRE. impressive strides in energy reduction through BOMA’s 7-Point Chair of the National Associate Member Committee JonaChallenge, which concludes at the end of 2012. Their achievements than Peck with UGL Services reported that, beginning in July of 2012, will be recognized at the Winter Business Meeting in January 2013. a NAM member will hold a spot on BOMA International’s ExecuThe deadline for submitting challenge completion information is tive Committee. For the third year in a row, the NAM Committee Oct 1, 2012. sponsored a blood drive on the show floor and encouraged those Chair of the BOMAPAC Committee Steve Hrbek, BOMA/Suburwho could to participate. ban Chicago, reported that BOMA raised $56,000 in 2011 and supGuest speakers included Stephen Fuller, Ph.D., University Profesported 24 members of Congress. So far in 2012, $22,000 has been sor, George Mason University, and author of BOMA’s new Economic raised, supporting 16 incumbents. Conference PAC fundraising is Impact Study (see pages 28-29); Dolores Bocian and Greg Grainger projected to bring in an additional $10,000 and BOMA/Seattle raised with BOMI International; and BOMA Canada Chair David Judge. $10,000 for the BOMAPAC Administrative Fund. Chair of the Industry Defense Fund (IDF) Oversight Committee Cary Fronstin, BOMA/ Ft. Lauderdale and The Palm Beaches, reported that the current balance of the IDF is $756,413 and that recently approved projects include $20,000 to BOMA/Metro Detroit for the amicus brief to the Michigan Supreme Court for the Wells Fargo Bank, NA v. Cherryland Mall case. Past Chair of the Preparedness Committee Joe Donovan reported that BOMA’s new Emergency Preparedness Guidebook was released in June and that the Real Estate Information Sharing and Analysis Center (REISAC) is being restructured to align with the banking Officers and members of BOMA’s 2012-2014 Executive Committee take the Oath of Office. and financing ISAC. Chair of the Codes and Standard Committee Kent GibBOMA International’s new vice chair and 2012-2014 Executive son, BOMA Utah, reported that BOMA participated in recent ICC Committee members were approved during the meeting. and ASHRAE meetings. At the New Vice Chair : John Oliver, CPM, managing director, Wells Real Estate Funds, Atlanta, BOMA/Georgia. recent codes hearings, BOMA 2012-2014 Executive Committee Members: staff reviewed and/or testified on 1,600 code change proposals. • Robert M. Brierley, vice president of operations, Boston Region, (Read about BOMA’s ICC victoBrookfield Properties, BOMA/Boston, elected to serve a second ries on pages 16-17.) Gibson also two-year term. reported that the 2012 Industrial • Brian D. Cappelli, RPA, vice president, Forest City Commercial Standard received ANSI accreditaManagement, BOMA/Cleveland, elected to serve a second twotion and BOMA plans to create a year term. Campus Addendum to the Office • J. Michael Coleman, vice president of marketing-commercial Floor Measurement Standard. real estate, AlliedBarton Security Services, BOMA/Philadelphia; BOMA’s first allied member to serve on the Executive Committee. During the Financial Update, Rebecca Hanner, CPM, RPA, • Brian M. Harnetiaux, vice president, Transwestern, BOMA/ BOMA Secretary/Treasurer Rebecca Orange County. BOMA secretary/treasurer, Hanner gives the Financial Update. BOMA/Raleigh-Durham, reported • Wade W. Lange, RPA, FMA, CPM, vice president of property manthat, although YTD revenues were slightly lower than budgeted, agement, Langley Investment Properties, BOMA/Oregon, elected membership numbers remained steady and BOMA’s Partnership to serve a second two-year term. Program continued to strengthen. Hanner also reported that atten• Keith Major, property director, Bentall LP, BOMA/Greater dance at the Medical Office Buildings and Healthcare Facilities ConToronto. ference continued to grow in 2012 and that the annual conference To read an even more extensive report from Board of Governors, attendance was the highest since 2007. visit www.boma.org/Resources/news. Vice Chair of the Careers in Real Estate Task Force Laura Ragans, BOMA/Orlando, reported BOMA’s annual Student Day

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Where America

Goes to Work New Study Shows Buildings’ Operations Contribute $205 Billion to GDP; Support 3.8 Million Jobs

By Stephanie Oppenheimer, APR and Laura Horsley The commercial real estate industry plays a significant role in the U.S. economy. This may seem most obvious during the construction phase, as cranes dot the horizon, workers scramble across scaffolding and trucks deliver a seemingly endless stream of equipment and supplies. But the far larger—and longer-lasting—impact actually comes after the ribbon cutting, when the significant annual operating expenses associated with office buildings help support the local economy’s vitality, create new jobs, generate personal income and contribute to the local tax base year after year. BOMA International’s new economic impact study, Where America Goes to Work: The Contribution of Office Building Operations to the Economy, 2012, details the impact of commercial office space on the national and local economies. The report, an updated version of a study first published in 2009, shows that the short- and long-term expenditures that sustain office building operations—management, maintenance, repairs, building services and utilities—generate significant, continuous and growing expenditures that support local businesses, create job demand and contribute significantly to U.S. gross domestic product (GDP). The 2012 study finds that the 9.9 billion square feet of commercial office space located within the 94 markets served by BOMA International’s 93 local associations generated $80 billion in direct operating expenditures in 2011 to the benefit of workers and businesses within their host jurisdictions— enough to build 1 World Trade Center 20 times over. The results of the Where America Goes to Work study were announced during a press conference on June 25 in Seattle

The 2012 Study finds that the 9.9 billion square feet of commercial office space located within the 94 markets served by BOMA International’s 93 local associations generated $80 billion in direct operating expenditures in 2011 to the benefit of workers and businesses within their host jurisdictions— enough to build 1 World Trade Center 20 times over.

during BOMA International’s annual conference. The author of the report, Stephen S. Fuller, Ph.D., Dwight Schar faculty chair and University Professor, and director, Center for Regional Analysis, George Mason University, delivered the results. Key findings included: • For each dollar spent on office building operations, the national economy gained $2.57, with the result that $79.7 billion in annual operating expenditures contributed a total of $205.1 billion to the gross domestic product (GDP) in 2011—equivalent to the state of California’s annual budget; • For each dollar spent on office building operations, workers in the United States realized an increase of $0.76 in personal earnings, generating a total of $61 billion in new earnings for workers residing within these 94 office market areas and respective state economies in 2011; • For each $1 million in expenditures for office building operations, 19.6 jobs were supported nationwide. As a result, $79.7 billion in annual operating expenditures supported a total of 1.6 million indirect jobs across all sectors of the national economy in 2011—about the same number employed by McDonald’s worldwide—in addition to an estimated 2.2 million more jobs directly related to the on-site management and operations of the buildings; and • The 9.9 billion square feet of commercial and government-owned office space located in the 94 markets served by BOMA’s 93 local

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Market by Market The Impact of Building Operations on Five BOMA Local Association Markets Seattle-King County Metropolitan Areas Direct Operating Expenditures $1.1 billion Contribution to U.S. Economy $1.9 billion New Personal Earnings $596 million Direct Jobs Supported 31,102 Indirect Jobs Supported 15,557

Dr. Steven Fuller delivers the results of Where America Goes to Work during a press conference in Seattle.

$570 million $1.2 billion $375 million 15,919 10,845

Los Angeles Direct Operating Expenditures Contribution to U.S. Economy New Personal Earnings Direct Jobs Supported Indirect Jobs Supported

$3.4 billion $7.1 billion $2.2 billion 96,226 52,236

Washington, D.C. Metropolitan Area Direct Operating Expenditures Contribution to U.S. Economy New Personal Earnings Direct Jobs Supported Indirect Jobs Supported

$4.2 billion $7.5 billion $2.4 billion 100,321 61,923

Raleigh-Durham Metropolitan Area Direct Operating Expenditures Contribution to U.S. Economy New Personal Earnings Direct Jobs Supported Indirect Jobs Supported

$259 million $502 million $150 million 7,246 4,506

Download the report for free at www.boma.org to see all 94 markets.

Economic Impact of Office Building Expenditures in 94 Markets Served by BOMA Local Associations Total Office Space (SF)

9.9 billion

Average Annual Operating Cost (SF)

$8.05

Total Building Operating Expenditures

$80 billion

Impacts on U.S. Economy Contribution to GDP

$205 billion

New Personal Earnings

$61 billion

Direct Jobs Supported

2.2 million

Indirect Jobs Supported

1.6 million

Sources: BOMA International, CoStar Group Inc., GMU Center for Regional Analysis

BOMA

associations provided workspace for an estimated 44.3 million office jobs. “When you also consider the secondary benefits resulting from how the money generated by building operations is spent and respent, the true impact to local, state and national economies is very significant,” said Fuller. “Whether a tenant supports an in-building dry cleaner, hails a taxi, takes a business associate to lunch at a nearby restaurant or grabs a soda from a sidewalk vendor, it all goes toward supporting significant job growth directly and indirectly, and helps generate new personal earnings that further stimulates the economy.” 2011-2012 BOMA International Chair Boyd Zoccola noted, “The study reveals just how significant a role the commercial real estate industry, and office building operations in particular, has on the U.S. economy. The annual operating expenses associated with office buildings help support local economies by creating new jobs, generating personal income and contributing to the local tax base.” During the press conference, Fuller gave reporters a big picture perspective of the significance that building operations have on the greater economic engine, explaining that the 9.9 billion square feet of office space represented across 94 markets houses 44.3 million workers. On average, each of these office workers contributed $116,200 to GDP; and, all together, these office workers contributed a total of $5.15 trillion to U.S. GDP. The analysis of the study was limited to commercial office space in buildings with a minimum of 10,000 square feet and excluded buildings owned by their occupants (not available for leasing for general purpose office use), as well as government-owned office buildings. The report also drills into the economic impact of office space in each of the markets served by BOMA’s 94 local associations.

Indianapolis Direct Operating Expenditures Contribution to U.S. Economy New Personal Earnings Direct Jobs Supported Indirect Jobs Supported

July/August 2012 The BOMA Magazine

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2011-2012 TOBY® Regional Winners/International Nominees Corporate Facility One West Indianapolis, Ind. Management Company: Duke Realty Owner: Duke Secured Financing 2009-UNM 575 Fifth Avenue New York, N.Y. Management Company: Cushman & Wakefield, Inc. Owner: Metropolitan Life Insurance Company Hamilton City Hall Hamilton, Ontario Management Company: City of Hamilton Owner: City of Hamilton Hunt Corporate Headquarters Dallas, Texas Management Company: Hunt Office Management Owner: Hunt Consolidated, Inc. Kilroy Santa Fe Summit San Diego, Calif. Management Company: Kilroy Realty Corporation Owner: Kilroy Realty Corporation Newport Corporate Center Bellevue, Wash. Management Company: Bentall Kennedy Owner: Newport Corporate Center, LLC Quintiles Plaza Durham, N.C. Management Company: Tri Properties, Inc. Owner: FSP Emperor Boulevard, LLC-Franklin Street Properties Corp. Target Plaza Minneapolis, Minn. Management Company: Target Corporate Real Estate Owner: Target Corporation

Earth 75 State Street Boston, Mass. Management Company: Brookfield Office Properties Owner: Brookfield Properties 75 State Co. LLC 200 Las Olas Circle Fort Lauderdale, Fla. Management Company: Stiles Property Management Owner: 200 Brickell, Ltd. Alley24 East Seattle, Wash. Management Company: CBRE, Inc. Owner: Alley24 East, LLC Centre CDP Capital Montréal, Quebec Management Company: Ivanhoé Cambridge Owner: Société immoblilière Camont Inc.

Energy Plaza Dallas, Texas Management Company: Transwestern Owner: Energy Future Holdings Hammond Federal Courthouse Hammond, Ind. Management Company: General Services Administration Owner: U.S. Government USAA Phoenix Campus Phoenix, Ariz. Management Company: USAA Owner: USAA

Government Building Bellevue City Hall Bellevue, Wash. Management Company: City of Bellevue Owner: City of Bellevue Coleman A. Young Municipal Center Detroit, Mich. Management Company: Hines Owner: Detroit Wayne Joint Building Authority Health Building/47 Trinity Atlanta, Ga. Management Company: Georgia Building Authority Owner: Georgia Building Authority Martin Luther King, Jr. Federal Building and Courthouse Newark, N.J. Management Company: General Services Administration Owner: U.S. GSA Milwaukee Federal Building and U.S. Courthouse Milwaukee, Wis. Management Company: General Services Administration Owner: U.S. Government Robinson Place Peterborough, Ontario Management Company: Infrastructure Ontario Owner: Infrastructure Ontario on behalf of the Ontario Ministry of Infrastructure San Francisco Federal Building San Francisco, Calif. Management Company: General Services Administration Owner: General Services Administration

Historical Building CityCenter at 735 Milwaukee, Wis. Management Company: Compass Property Management, LLC Owner: Compass Properties, LLC Dexter Horton Building Seattle, Wash. Management Company: CBRE Owner: LaSalle Investment Management

Sun Life Building Montréal, Quebec Management Company: Bentall Kennedy (Canada) LP; ITF Sun Life Assurance Company of Canada; and SITQ National Inc. Owner: Sun Life of Canada and SITQ National Inc. The Newbry Boston, Mass. Management Company: CBRE-N.E. Partners, LP Owner: TIAA-CREF The Rookery Chicago, Ill. Management Company: Buck Management Group LLC Owner: The Rookery LP

Industrial Office Building 1800 W. Central Road Mount Prospect, Ill. Management Company: Colliers International Owner: CRP-3 1800 W. Central, LLC, an affiliate of Colony Realty Partners, LLC Gateway Commerce Center Drive III—Westway III Edwardsville, Ill. Management Company: Cassidy TurleyProperty Management Services Owner: Gateway Commerce Center III LLC Goodyear Commerce Center Goodyear, Ariz. Management Company: Cushman & Wakefield/NorthMarq Owner: Hanover Goodyear LLC Meadowvale North Business Park Mississauga, Ontario Management Company: Bentall Kennedy (Canada) LP Owner: 2725312 Canada Inc. Rainier Park of Industry Sumner, Wash. Management Company: LBA Realty, LLC Owner: LBA; PPF Industrial Associated; and West Valley, LLC Turnpike Distribution Center Dallas, Texas Management Company: Holt Lunsford Commercial, Inc. Owner: Principal Real Estate Investors, LLC Walnut Creek Business Park Raleigh, N.C. Management Company: Duke Realty Owner: Duke Realty Limited Partnership

Medical Office Building Ninth & Jefferson Building Seattle, Wash. Management Company: Wright Runstad & Company Owner: NJB Properties 3455 Medical Pavilion Wheat Ridge, Colo. Management Company: Lillibridge Healthcare Services Owner: LHRET, Wheat Ridge, LLC McAuley Medical Office Building Phoenix, Ariz. Management Company: CBRE Owner: LaSalle Investment Management Mercy Physicians Plaza Rogers, Ark. Management Company: Healthcare REIT, Inc. Management Services Group Owner: Healthcare REIT, Inc. Piedmont West Medical Office Park Atlanta, Ga. Management Company: Cassidy Turley Owner: Carter H.M. MOB I LLC Sheldon M. Chumir Health Centre Calgary, Alberta Management Company: Bentall Kennedy (Canada) LP Owner: Alberta Health Services

Renovated Building One Datran Center Miami, Fla. Management Company: USAA Realty Company Owner: USAA 53 State Street Boston, Mass. Management Company: Lincoln Property Company Owner: 53 State Street Lessee LLC 101 North Wacker Chicago, Ill. Management Company: Hines Owner: Hines VAF II 101 North Wacker LP

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Jamboree Center Irvine, Calif. Management Company: Irvine Company Owner: Irvine Company

Waterway Plaza I & II The Woodlands, Texas Management Company: Daymark Realty Advisors, Inc. Owner: NNN Waterway Plaza, LLC

McAllister Plaza San Antonio, Texas Management Company: Travis Commercial Real Estate Services Owner: RBL McAllister LLC

Under 100,000 Square Feet

Wells Fargo Plaza Bloomington, Minn. Management Company: Zeller Realty Group Owner: INVESCO

Suburban Office Park Low-Rise

Balfour Beatty Center Plantation, Fla. Management Company: Pointe Group Advisors Owner: The Realty Associates Parkway Corporate Center Montvale, N.J. Management Company: Grubb & Ellis Management Services Owner: TIAA-CREF

Butler Plaza Jacksonville, Fla. Management Company: Liberty Property Trust Owner: Liberty Property Trust

Rochelle Park Irving, Texas Management Company: Parmenter Realty Partners Owner: Parmenter Rochelle Park LP

Delmar Gardens Chesterfield, Mo. Management Company: Cassidy TurleyReal Estate Management Services Owner: Delmar Gardens at Conway Ridge, LLC

Torrey Pines Court La Jolla, Calif. Management Company: The Muller Company Owner: Mullrock 3 Torrey Pines, LLC

Eisenhower/280 Corporate Center Roseland, N.J. Management Company: Mack-Cali Realty Corporation Owner: Mack-Cali Realty Corporation San Gabriel Valley Corporate Campus Irwindale, Calif. Management Company: CBRE Owner: MetLife Real Estate Investments

Suburban Office Park Mid-Rise Concorde Corporate Centre Toronto, Ontario Management Company: Crown Property Management Inc. Owner: Artis REIT Meridian Cool Springs Franklin, Tenn. Management Company: Boyle Investment Co. Owner: Boyle Investment Co. New England Executive Park Burlington, Mass. Management Company: Equity Office Properties Owner: Equity Office Properties Roosevelt Commons Seattle, Wash. Management Company: CBRE Owner: RREEF The Alhambra Alhambra, Calif. Management Company: The Ratkovich Company Owner: The Alhambra Office Community, LLC, a partnership of The Ratkovich Company and AIG Global Real Estate

Woodlands Technology Campus Bothell, Wash. Management Company: CBRE, Inc. Owner: Teachers Insurance and Annuity Association of America

100,000-249,999 Square Feet One Kennedy Square Detroit, Mich. Management Company: REDICO Owner: Kennedy Square, LLC 200 Kimball Drive Parsippany, N.J. Management Company: Grubb & Ellis Management Services Owner: 200 Kimball Drive, LLC 6775 Financial Drive Mississauga, Ontario Management Company: Bentall Kennedy (Canada) LP Owner: 2725312 Canada Inc. Adobe Waterfront Seattle, Wash. Management Company: Cushman & Wakefield Owner: Union Investment Real Estate GmbH

URS Center Denver, Colo. Management Company: Westcore Properties Owner: Westcore Carson Tufts, LLC; Westcore Orchard Tufts, LLC; and Westcore Vasona Tufts, LLC

Watt Plaza Los Angeles, Calif. Management Company: Watt Management Company Owner: 1875/1925 Century Park East Company Wells Fargo Center Seattle, Wash. Management Company: CAC Real Estate Management Co., Inc. Owner: Beacon Capital Partners, LLC

250,000-499,999 Square Feet 100 Congress Austin, Texas Management Company: CBRE Owner: Metropolitan Life Insurance Company

Woodfield Corporate Center at 150/200 Martingale Road Schaumburg, Ill. Management Company: CBRE Owner: SMIII 150/200 Martingale LLC

303 West Madison Street Chicago, Ill. Management Company: CBRE, Inc. Owner: 303 Madison Chicago, LLC

Over 1 Million Square Feet

350-450 Las Olas Centre Fort Lauderdale, Fla. Management Company: Stiles Property Management Owner: USAA Realco

230 Park Avenue New York, N.Y. Management Company: Monday Properties Services, LLC Owner: 230 Park Avenue Holdco, LLC

1625 Eye Street Washington, D.C. Management Company: Brookfield Office Properties Owner: Brookfield Office Properties

Bay Wellington Tower Toronto, Ontario Management Company: Brookfield Office Properties Owner: Brookfield Properties Ltd.

2201 Westlake Seattle, Wash. Management Company: CBRE Owner: 2201 Office LLC

Columbia Center Seattle, Wash. Management Company: CAC Real Estate Management Co., Inc. Owner: Columbia Center Property LLC

Canada Square—2180 Yonge Street Toronto, Ontario Management Company: Northam Realty Advisors Limited Owner: 2180 Yonge (Canada 8) Holdings Limited

Hyatt Center Chicago, Ill. Management Company: Jones Lang LaSalle Owner: Irvine Company

Mission Tower II Santa Clara, Calif. Management Company: Shorenstein Realty Services Owner: SRI Mission Towers II, LLC

IDS Center Minneapolis, Minn. Management Company: Inland American Office Management LLC Owner: MB Minneapolis 8th Street LLC

500,000-1 Million Square Feet

The Gas Company Tower Los Angeles, Calif. Management Company: MPG Office Trust Owner: Maguire Properties-555 W. Fifth, LLC

225 Franklin Street Boston, Mass. Management Company: Equity Office Owner: Equity Office Bank of America Plaza St. Louis, Mo. Management Company: Jones Lang LaSalle Americas, Inc. Owner: St. Louis BOA Plaza, LLC

Highwoods Bay Center I Tampa, Fla. Management Company: Highwoods Properties Owner: Highwoods Properties

Bell Trinity Square Toronto, Ontario Management Company: Northam Realty Advisors Limited Owner: BTS Realty Limited Partnership

Interchange Office Center Dallas, Texas Management Company: CBRE Owner: CBRE Global Investors

Georgia Power Headquarters Atlanta, Ga. Management Company: Cassidy Turley Owner: Georgia Power

Roseville Corporate Center Roseville, Calif. Management Company: Hines Owner: Hines

The Urban Towers Irving, Texas Management Company: CBRE Owner: SP Millennium Center, LP

The Tower at Cityplace Dallas, Texas Management Company: Stream Realty Partners, LP Owner: Dallas CPT Fee Owner, LP

Kimberly-Clark Professional* is the Official Sponsor of the TOBY® Awards and Banquet through 2014.

U.S. Cellular Plaza Chicago, Ill. Management Company: Parkway Realty Owner: Parkway Realty Services

July/August 2012 The BOMA Magazine

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trends tracker

Vet Your Vendors Screening Steps to Ensure Your Vendor Is Top Notch By Gerard Smith A RECENT ARTICLE IN THE PRESSENTERPRISE reported that the San Bernardino County district attorney’s office began laying out its case against a local disaster-restoration company charged in a multi-million dollar forgery and insurance fraud case. Investigators allege three defendants were involved in a scheme in which they cashed insurance company checks by forging homeowner signatures and fraudulently endorsing mortgage companies’ banking information on the back of the checks. Work that the checks were meant to pay for was not completed by their company and, in some cases, no work was done, which, according to investigators, led to more charges. How many companies utilize service providers like this without knowing who they are getting into or continuing to do business with? More than 80 percent of companies conduct formal background checks on their full-time employees, but less than 20 percent do any type of screening of their vendors, suppliers and subcontractors. This gap in due diligence and compliance management is a significant area of risk for organizations that should not be ignored. With the continued globalization of business, exposure to financial and reputational losses is increasing and awareness of the need for “know your supplier” programs is fast becoming one of the top risk management objectives for companies today. Is your company certain you know the vendors with whom you conduct business? The truth is, if you are not continually monitoring the backgrounds of your

vendors, you may not be fully aware of your risks when conducting business with them. Key questions your company should consider when evaluating your vendors: • Does my vendor appear on any governmental watch list? • Do I have a compliant certificate of insurance? • Do I have a compliant W-9 tax form? • How financially stable is my vendor? Like many companies, the answers to these questions may be uncertain or vague at best. The lack of current and accurate information in any of these areas can result in significant issues of financial and reputational loss for your company.

Potential Consequences for Your Company Does my vendor appear on any governmental watch list? Most companies are familiar with the U.S. Patriot Act. In addition to the U.S. Patriot Act, companies that operate internationally must be in compliance with the Foreign Corrupt Practices Act and the UK Anti-Bribery Regulations. In recent years, the U.S. Federal Government has significantly stepped up its enforcement of compliance with these acts. The fines for a single infraction can be astounding, let alone the reputational loss that your company can experience from doing business with any person or any company on any of these lists. Many companies working with property managers require the screening of all current and prospective vendors against these lists and hold their property managers liable for the thorough and accurate

due diligence when screening vendors. Do I have a compliant certificate of insurance? One of the most time-consuming and daunting tasks every business, especially property management firms, must contend with is correctly assessing and managing certificates of insurance (COI). In nearly every contract, there is a specific level of insurance coverage that is required from the vendor, which has been negotiated by highly skilled attorneys and risk managers. The task of collecting and managing the COI to ensure that it meets the contracted requirements is generally handled by a manager or administrative person who may not have any training in managing COIs. In many cases, only after an incident occurs or a company’s auditor arrives, does a company become aware of the fact that the COI is either missing, expired, fraudulent and/or non-compliant. Our experience indicates that more than 90 percent of current COIs are noncompliant, and the ramifications of this problem can be significant. Do I have a compliant W-9 tax form? The IRS requires every person or business to collect a signed and dated W-9 tax form from each vendor. Most companies simply file the forms and fail to thoroughly verify if the W-9 tax form is the most current version and is properly completed. How financially stable is my vendor? One of the greatest unknowns for any company is the financial well-being of its vendors. Most companies assume their vendor companies remain financially stable; however, in the current economy, circumstances have changed for many

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vendors and typically this only is discovered when the vendor fails to perform. This creates enormous issues—especially for the real estate industry, as projects are delayed, payments lost, move-ins delayed and liens filed against the property. As a property manager, how do you explain that due diligence was not fully performed on the subcontractor to your client?

The Solution

BOMA

Establishing a contract with a vendor without verifying credentials and licensing or uncovering any unfavorable financial or criminal background can have significant legal, financial and reputational ramifications. Even existing vendors may have changes in the stability of their company or may allow licensing and certifications to lapse. With the increasing number of global vendors that move throughout organizations today, the need for enhanced due diligence and compliance management is essential to risk management. However, this can be a difficult task for companies to accomplish effectively. Selecting a qualified and competent outsourced third party with the resources to implement a formal vendor screening and compliance management program that is consistent, equitable and effective is critical to safeguarding the future of companies today. About the Author: Gerard Smith is president of Global Risk Management Solutions, the leading outsour ced vendor screening and compliance management compan y. Visit www.GlobalRMS.com/BOMA or e-mail sales@GlobalRMS.com for more information.

BOMA Member Benefits Programs Global Risk Management Solutions participates in BOMA International’s Member Benefits Programs, providing BOMA members with a nocost vendor screening and certificate of insurance management program. Learn more about BOMA’s Member Benefits Programs at www.boma.org/ Membership/BenefitPrograms.

BARTLETT. BECAUSE CUSTOMER SERVICE, JUST LIKE TREES, SHOULD BE A BREATH OF FRESH AIR. We’re Bartlett Tree Experts and we’ve been exceeding our customers’ expectations for over 100 years. No matter the size or scope of your tree and shrub needs, our experts bring a rare mix of local service, global resources and innovative tree care practices that makes landscapes thrive. Trees add value to your property. And Bartlett adds value to your trees.

For the life of your trees. PRUNING FERTILIZATION PEST & DISEASE MANAGEMENT REMOVAL

CALL 877 BARTLETT 877.227.8538 OR VISIT BARTLETT.COM

July/August 2012 The BOMA Magazine

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green scene

10 Easy Steps to a Successful Office Recycling Program By Clinton Clark

1 Find a good partner. Look for a recycling services provider that collects a wide range of recyclable materials in the volumes typically generated by your building. Make sure your partner can provide educational support like bin signage and decals to encourage correct recycling. Your provider should be able to train your staff and tenants in proper recycling processes, and track and share recycling progress. 2 Evaluate your current standing by conducting a waste assessment. You and your services provider will identify the composition and quantity of your waste stream—for example, 50 percent office paper, 20 percent plastics (bottles) and 20 percent metal (cans). In addition, a certain percentage may include such hard-to-recycle items as electronic waste, batteries, fluorescent tubes and ink cartridges. Next, identify any weaknesses in your current system. Do you have containers dedicated to various materials? Where are those containers placed? How often are they emptied? Why aren’t items being recycled? 3 Set goals. You can’t measure how far you’ve come unless you know where you want to go. Once you learn what your current diversion rate is, you can work with your waste services provider to set achievable goals and a timeline for reaching them.

4 Develop a plan. Driving systemwide improvements through service optimization and recycling diversion opportunities is the cornerstone of a recycling program. Ask yourself how you can make the most efficient use of trash compactors, dumpsters and other waste collection assets. How many of these assets are required and in what sizes? How often should collections occur? Would a monitoring service be worthwhile? Would solar-powered compactors make financial and environmental sense? Would a desk-side recycling program be beneficial? Also, which programs and tools could help you reach your recycling and diversion goals while minimizing costs? Single-stream recycling boosts participation because tenants don’t have to segregate the waste themselves. It may be beneficial to offer an organics program to manage waste from food service areas or a recycling program for electronic waste and fluorescent tubes. 5 Provide clear direction. In addition to providing easily accessible recycling containers, you should provide sign age that makes it clear to tenants what to put in them. The easier it is for your tenants to understand the expectations of the program, the more likely they will be to participate. Providing engagement programs and contests, holding a kick-off event and discussing progress in a newsletter will raise awareness and inspire participation. 6 Train the troops. Training your building and office cleaning staff is critical to make sure your recycled materials don’t end up in the dumpster. By partnering with a provider that implements training and educational support, you ensure that recyclable materials are collected properly throughout the building and placed in the correct container for pick up.

7 Track your progress. How will you know if your efforts are succeeding? Work with a partner who can offer you a waste management, diversion and tracking tool that shows your progress at a glance. If you manage more than one property, having a partner who can help you benchmark properties across your portfolio will save you time and pinpoint properties with the most room for improvement. 8 Don’t be intimidated by information overload. Sustainability issues

can get complicated fast. Your recycling partner should have expertise in complying with applicable environmental regulations and be able to guide you in implementing any of the steps covered here. 9 Recognize the size of the opportunity. A comprehensive office recycling

program goes beyond printer paper and used cans. Other materials that should be recycled include batteries, fluorescent light bulbs, old computers and cell phones, cardboard boxes and printer cartridges. What other materials are going out with your trash that could be recycled instead? 10 Get started today. There’s no time to waste. With the right partner, you can have a recycling program up and running in just a few days. BOMA

WORKPLACES ACROSS THE COUNTRY are literally throwing away valuable resources. Nearly 90 percent of an office’s solid waste could instead be recycled, benefiting both the environment and the company’s bottom line. As a building owner or manager, you can help stem the tide of wastefulness by setting up a successful recycling program for your tenants. The tips below can help you get started.

About the Author: Clinton Clark is director of Segment Operations at Waste Management. Clark helps identify and develop solutions that help Waste Management customers increase their revenues, improve their brand image and lower their overall cost of operations. Reach him at cclark3@wm.com.

The BOMA Magazine July/August 2012

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SUPPLIER Showcase of products & Services Special Advertising Section

American Anchor, Placeholder Placeholder Inc. Save lives, protect your property from liability, protect your corporate image and meet OSHA and ANSI requirements. American Anchor can make your rooftop a safe place to work, protect your façade workers from a fall and protect you from a wrongful injury lawsuit. As the controlling employer, you must provide a safe workplace. For a free site review anywhere in the country, call American Anchor at 800-371-8221.

AP&G Co. Inc. Placeholder

™ Flying Insect Trap by CatchGLOstik Placeholder master™—A NEW APPROACH TO FLY MANAGEMENT. Designed for use in areas with occasional flying insects, the GLOstik™ is an economical and effective fly management solution. The Blue LED light is attractive to multiple common species and delivers 200+ hours of performance on one set of batteries. The GLOstik™ is economical enough to be used as a disposable “one use” clean out tool, or the adhesive coated tube can be replaced with a refill and the LED base can be reused. www.catchmasterPRO.com; info@catchmasterPRO.com; 1-800-458-7454.

AsphaltKingdom.com Placeholder

Asphalt Maintenance Placeholder Equipment & Supply Specialists. We have what you need for: • Crack Filling • Pothole Repairs • Sealcoating • Line Striping Contact us for your parking lot repairs and maintenance needs: e-mail buildings@ asphaltkingdom.com; website www.asphaltkingdom.com; phone 1-866-399-5562.

Bird-B-Gone, PlaceholderInc.

Professional Placeholder Grade Bird Deterrents: Bird-B-Gone, Inc. manufactures professionalgrade bird deterrents, offering effective solutions to prevent birds from landing in unwanted areas. Products include Bird Netting, Spikes, Electric Track Systems and more. Bird-B-Gone has a devoted team of Bird Control Engineers to help in all aspects of bird control, including design and installation. Visit www.birdbgone.com or call 1-800-392-6915.

American Services Group Placeholder

Omeganomics.Com: a code avoidance technology (CAT) so simple, you will never write another line of software code. “Private Labeled” so you can re-engineer the product with your own name. Use it or sell it. Application data for Preventive Maintenance; Equipment Descriptions; Categories; Modeling for most of the building, facilities, services, properties and disciplines for all trades that include thousands of procedures and tables. Code Free development with over 500 fields of data, over 200 data tables and programs for work orders, equipment, schedules, contracts, billing, parts/material, purchase orders and more. Over 40 years of development and application deployments. omeganomics.com; cmmsworks.com; workorderangel.com; pmangel.com. 800-333-1157.

Placeholder

Aquatherm, Inc. Placeholder

Polypropylene Placeholder to the Rescue! Tired of rusting, leaking, corroded pipes and copper theft? Aquatherm’s green, rust-free, highly engineered polypropylene solves these problems in plumbing, HVAC and industrial applications. Aquatherm—Changes What’s Possible! www.aquatherm.com; Charlie Clark, Inside Sales Manager, Charlie.clark@aquatherm.com, 801-805-6657.

Baltimore Aircoil Placeholder Placeholder Company BAC is pleased to release the 2012 Parts & Maintenance Guide. Filled with information about available BAC parts, product spotlights and maintenance reference material, the 2012 Parts & Maintenance Guide is important for every maintenance professional. Contact your local BAC Rep for a copy! www.baltimoreaircoil.com/ boma; 410-799-6200; www.facebook.com/baltimoreaircoilcompany.

BITZER U.S., Inc. Placeholder

BITZER CSW Screw Placeholder Compressors are optimized for lowcondensing temperature applications, making these models ideal when replacing old, inefficient Screw or Recip models in water-cooled chillers or air-cooled systems operating under moderate climate conditions. With marketleading energy efficiency, particularly under part load operation, CSWs provide equivalent EERs to complex oil-less, centrifugal models but at a much more competitive price. Approved for R134a, R22 or R407C. Contact: BITZER U.S., Inc., 4031 Chamblee Road, Oakwood GA 30566; phone: 770-503-9226; e-mail: sales@bitzerus.com, techsupport@bitzerus.com and customerservice@bitzerus.com. July/August May/June 2012 The BOMA Magazine

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SUPPLIER Showcase of products & Services Special Advertising Section

Cleaning Services Group, Inc. Cleaner, healthier environments with Cleaning Services Group: As a national leader in the industry with over 25 years of experience, CSG will provide your business with customized programs to fit your janitorial needs AND help you maintain a cleaner, healthier environment for your customers and employees. More information on Cleaning Services Group, Inc. at www.cleaningservicesgroup.com. Phone: 800-683-6572; Fax: 800-789-5440. Consult with our green cleaning experts for your green cleaning needs. Call us today!

Directory Solutions, Inc. TouchSource, by Directory Solutions is the 25-year leader in electronic and touch screen building directories. Unlimited listings that can be updated in seconds from your office. Wide variety of features and directory styles.Visit www.TouchSource.com or call 800-704-3458.

Garlock Safety Systems GUARD ROOFTOP LADDER ACCESS—STOP FALLS! LadderGuard™ creates an OSHA-compliant egress/ingress control zone for permanently mounted rooftop ladders. Installation is non-penetrating, so you don’t need to worry about damaging the roof. Lightweight, modular components clamp in place and are easy to transport to the site. Design works on parapet walls and flat roofs, and round or flat ladder rails. Set-up only takes a few minutes. Call Garlock Safety Systems at 763-694-2614 or visit us online at www.railguard.net/pages/ladderguard.asp.

Gee Asphalt Systems, Inc. Asphalt Preservation Specialists! • Family Owned and Operated—62+ Yrs. • Recognized and Trusted Nationwide. • Environmentally Sound, EPA Approved GSB-88. • Experienced and highly trained technicians & craftsmen. • Understand the Buildings Industry inside and out. Taking care of your good pavements while they are still good is what Asphalt Preservation is all about. Preserving your good asphalt pavements can save you up to 10 times over what it costs to replace them. Serving clients Nationwide. For more information, contact us at 800-747-8567 or log on to www.geeasphalt.net.

Continental Control Systems, LLC WattNode AC (kW) power and (kWh) energy meters for LEED certification. Available metering products include BACnet, Modbus, LonWorks and standard PULSE-OUTPUT Watt/ hour WATTNODE transducers for sub-metering AC loads. Current Transformers available in Split Core, Solid Core, Bus Bar, Mini and High Accuracy Designs are all compatible with the WattNode Meters. For more information on energy meters, associated current transformers and accessories, call 1-800-928-8663 (1-800-WattNode) or visit www.wattnode.com.

Eagle Technology, Inc. Proteus CMMS helps building owners and facility managers track and report on the maintenance needs of their buildings and assets. Proteus is easy to use, and offers complete work order management, service requests, mobile capabilities and more.Visit www.eaglecmms.com for your free 90-day demo of Proteus or call 1-800-388-3268 to learn more.

Gatski Commercial Real Estate Services With an extensive Las Vegas history, Gatski Commercial delivers in-depth market knowledge and perspective. Services offered include: • Property Management • Leasing • Sales • Property Tax Analysis • Building Maintenance Since 1993, Gatski Commercial has served Southern Nevada commercial real estate owners and currently represents the largest portfolio in Nevada at 8 million square feet. For information, call 702-221-8226, e-mail info@gatskicommercial.com or visit www.gatskicommercial.com.

General Elevator Parts Inc. Single Source Supplier: 1-800-848-3329 or 773-491-1927; Fax: 1-800-578-6349 or 773463-2827. Otis, Westinghouse, Dover, Imperial, etc. Surplus Motors and Generators: Rotors— IMO Pumps; Armatures—Door Motors; Machine Parts— Controls; ✓Obsolete’s Largest Supply. Networking your inventory is like fishing. Just send over your list and we will hook you up! Otis turtleback longneck and shortneck hoist 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 www.elevatorexchange.com; GeGeLu@comcast.net.

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SUPPLIER Showcase of products & Services Special Advertising Section

Grailey Materials, LLC GoGrailey ROOF LEAK DIVERTERS deliver dependable protection from any size leak. Fast and easy to install with our easy hang kits; manufactured out of heavy-duty reinforced, puncture- and tear-resistant PVC. GoGrailey Leak Diverters can be installed to protect person, equipment and inventory in an emergency. They are also commonly used as a preventative measure over highly sensitive areas to protect interior contents. When water leaks from above need to be controlled, call on GoGrailey. To order, call 800-617-5936 or visit www.graileyleakdiverters.com.

Magnetek, Inc. Magnetek’s Quattro® Elevator Drives are the green solution for buildings worldwide. Quattro drives can improve energy efficiency and may help your projects qualify for utility rebates. Available in AC or DC, Quattro drives provide lower installation costs, long-life reliability, familiar control interface and superior ride quality. Visit www.elevatordrives.com or call 800-236-1705.

Permatron Corporation Are You Prepared for Cottonwood Season? PreVent® HVAC Air Intake Filters capture debris before it enters your HVAC system, clogging fins and coils. Easy to install and clean. Save on Energy • Save on Labor • Save on Repairs. Check Out Our Animated Video! Visit www.permatron.com. Call 800-882-8012.

RAB Lighting Designed for Performance. Priced for Payback. RAB’s WPLED52, which replaces 250W MH wallpacks, is designed to reduce energy consumption by 80% and priced to pay for itself in under 18 months. Installed in Tuscaloosa VA Medical Center in the summer of 2010, the wallpacks have already paid for themselves. Get a free sample in your hand … visit www.RABProLED.com.

Hamilton Blake Safety Unique Solutions for Rigging, Safety and Training … we offer hands-on training for window cleaners and specialized technology, such as the 121 Ft. Omme Lift for rent or purchase. Call Us Today—702-307-4477; or visit www.hamiltonblakesafety.com.

NIXALITE of America, Inc. STOP PEST BIRDS! 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.

Predictive Service We are a global leader in Electrical Infrared Inspections. Why Clients Choose Us: • Complete, standardized process is the best approach to ensure your inspections are done the right way, every time. • ViewPoint® manages all assets through an innovative, web-based reporting platform. • Aerial Infrared pinpoints roof moisture issues before there are visible signs or structural damage. • Risk reduction and improve energy efficiency. Give us a call at 1-866-603-5389, check out our website at www.predictiveservice.com or e-mail sales@predictiveservice.com for more information!

Radiant Electric Duluth Radiant Electric Duluth Infrared Radiant Heating from Radiant Electric Duluth: • Reduce heating costs 30-60% • ROI 2-3 years • Clean Room use • Zero emissions • Low operating temps • Reduced fire risk • Zoned individually or with building maintenance systems • 10-year no-maintenance guarantee • Allergy-free/sinus friendly • Portable, baseboard, wall, cove, suspended ceiling units Manufactured by Radiant Electric Heat. Call: Radiant Electric Duluth, 218-525-5002. July/August 2012 The BOMA Magazine

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SUPPLIER Showcase of products & Services Special Advertising Section

Rentokil Pest Control As the world’s largest commercial pest management company, Rentokil is the leading provider of Integrated Pest Management services. In addition to General Pest Control, we provide Bed Bug, Termite, Bird Management,Vegetation Management, Fumigation and Bioremediation Services. Our operations specialize in multi-site facilities across North America. Contact us at 800-665-4361 or Rentokil.com.

RoofConnect RoofConnect 24/7/365 Nationwide Service for All Your Roofing Needs. RoofConnect specializes in complete roof management services. Call us for your ANNUAL ROOF CHECKUP, emergency leak response, coordinated disaster planning and disaster response, re-roof/roof restoration and green energy solutions. One call offers peace of mind for your reactive roofing emergencies and proactive roof asset planning. Nationwide 24/7/365. Call 877-942-5613 or visit roofconnect.com.

Security Door Controls Major Brand Locksets Electrified by SDC. Electra Mod Series, SDC electrified, failsafe and failsecure cylindrical lock brands include Schlage,Yale, Sargent, Best, SDC and Dorma. Most brands available through SDC shipQUICK inventory, or distributors may provide mechanical locksets to SDC for electrification. REX output standard with SDC and optional with select brands. www.SDCsecurity.com.

Special Pathogens Laboratory Get Ready for Proposed ASHRAE Legionella Standard 188. Keep the water in your building safe with Special Pathogens Laboratory, The Legionella Experts. Laboratory services, risk assessment and outbreak consultation and the latest on detection, control and remediation of Legionella and other waterborne pathogens. A2LA and NELAP accredited; CDC-Elite certified. 877-775-7284 or www.specialpathogenslab.com.

Total Door Systems Total Door Systems®: Not Just Another Pretty Door. Total Door Systems delivers: • Lower upfront costs • Durability 10 times greater than conventional doors • Lower maintenance costs • Unmatched security • Fast delivery • Free comprehensive maintenance and installation training • Quick installation—no assembly required • New, retrofit and custom • Manufactured in the United States Visit www.totaldoor.com; or contact sales@totaldoor.com or 800-852-6660.

Sentry Protection LLC Park Sentry®—from Sentry Protection—is highly visible, easily installed and specifically designed to protect columns and vehicles from collision damage in multi-story parking structures. Made of ARPRO®—the highperformance material used in automobile bumpers—Park Sentry’s space-saving modular design fits any square, rectangular or round concrete column. Toll-free: 888-265-8660. E-mail: info@sentrypro.com. Website: www.sentrypro.com.

T2 Site Amenities

Upscale Recycling Bins, Benches & Planters...Finally. Great looking recycling bins for lobbies, meeting spaces and offices. Extraordinary benches and planters. Huge array of styles, colors and materials. T2 Site Amenities. www.t2-sa.com. Call 847-579-9003. lori@t2-sa.com.

Wausau Window and Wall Systems Wausau is an industry leader in building façades for commercial buildings. Products include energy-efficient aluminum windows, custom curtainwall systems, sun shades and light shelves. WWW.WAUSAUWINDOW.COM; Phone 877-678-2983; Fax 715-843-4350.

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RESEARCH corner

By Tanner Johnston THE 2012 EXPERIENCE EXCHANGE REPORT® (EER) DATA revealed a 2.5 percent increase in private-sector base rent income, which could hint at a more sustained market recovery for commercial real estate. The private sector also saw modest increases in rental and total income of 2.7 percent and 1.7 percent, respectively. This is encouraging news after last year’s income numbers dipped. On the expense side, utility costs declined 2.5 percent—a third consecutive year of declines—as BOMA members continued to refine their asset management skills and control utility usage. Standard operating expenses increased 1.3 percent and operating plus fixed expenses increased 4.2 percent in 2011. Other key income and expense data include the following.

Income Trends • Private buildings •

in the United States saw a 2.5 percent increase in base rent, from $21.61 per square foot (psf) in 2010 to $22.15 psf in 2011. The average building’s rent abatements increased 14 percent, from $1.07 psf in 2010 to $1.22 psf in 2011, reflecting the ongoing competition to retain and win tenants.

than a 15 percent Administrative 12% change in vacancy Roa Se d c u Grou s/ 5% rity or more than a 10 nds Fixed 2% percent change in 34% square footage of their assets. Much Utilities like “same store 19% sales” data used by retailers to gauge Cleaning Repair/ performance, these 12% Maintenance “same building 16% analyses” allow for a more accurate gauge of changes in the overall office building industry, relative to income and expenses. This year’s comparison was based on 2,561 buildings across the United States and Canada. The Experience Exchange Report, published in collaboration with Kingsley Associates, is commercial real estate’s premier income and expense data benchmarking tool. The 2012 EER provides valuable insights into the performance of more than 5,400 buildings, in 250 distinct markets, across 125 cities in the United States and Canada. 2012 EER data is now available at www.bomaeer.com. BOMA

2012 EER Results: Income Up, Utilities Down

2011 Private-Sector Expense Ratios

Look for It: An in-depth analysis of trends from the 2012 EER will be published in the September/October issue of The BOMA Magazine.

Expense Trends • Utilities decreased 2.5 percent, from $2.38 psf in 2010 to $2.32 psf in 2011. Repair and maintenance costs saw a 2.7 percent increase, from $1.87 psf in 2010 to $1.92 psf in 2011. • Cleaning expenses decreased 3.7 percent, from $1.54 psf in 2010 to $1.48 psf in 2011. This sizable dip could indicate funds shifting into repairs and maintenance. • Security costs increased 3.2 percent, from $0.63 psf in 2010 to $0.65 in 2011. The EER findings also indicate that the number of square feet per office worker decreased 2.9 percent last year, from 315 square feet per person in 2010 to 306 square feet per person in 2011. This data is consistent with other industry trends showing office space per worker is decreasing as organizations turn to more mobile work options and open office floor plans. “As the commercial real estate market makes its way back to normalcy, building owners and managers are beginning to see income levels improving,” comments 2011-2012 BOMA International Chair Boyd R. Zoccola, executive vice president, Hokanson Companies Inc. “The market is recovering but still tenuous. The EER numbers also indicate that property professionals continue to operate their buildings as efficiently as possible, making strong asset management more critical than ever.” The EER analysis is based on a control sample of buildings that reported data for both 2010 and 2011, and did not experience more

•

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July/August 2012 The BOMA Magazine

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EYE ON EDUCATION

Integrating Healthcare Delivery, Evolving Facilities Needs A Recap of the 2012 Medical Office Buildings and Healthcare Facilities Conference

By Laca Wong-Hammond, Head of Healthcare Real Estate, Raymond James | Morgan Keegan; 2013 co-chair, Medical Office Buildings and Healthcare Facilities Committee AT THE 2012 MEDICAL OFFICE BUILDINGS AND HEALTHCARE FACILITIES CONFERENCE, held May 2-4, 2012, in Atlanta, more than 715 healthcare and real estate executives gathered to explore the challenges of creating integrated delivery models and leveraging medical office and other types of healthcare real estate to facilitate these emerging healthcare models. Integrated care and delivery can take a

variety of forms, but generally speaking, integration of care requires some level of cooperation and coordination between various healthcare providers—physicians, healthcare systems and insurance providers being the three largest groups. The opening general session of the conference explored Accountable Care Organizations (ACOs), the integrated delivery model favored by the Accountable Care Act (commonly known as healthcare reform), from a variety of perspectives— a large physician group administrator, a private health network and a public corporation. While all speakers agreed that ACOs, as described by healthcare reform legislation, are difficult models to achieve, all also agreed that the goals of ACOs are important to strive for. Speakers

shared their perspectives and firsthand accounts of changes in their operating strategies to adjust for patient quality and risk management, the transition to bundled payments and shared their lessons learned. Integrated healthcare delivery models create real estate challenges and opportunities, and many sessions at the conference examined the ways in which real estate could help to facilitate care coordination. The “Provider Strategies” track examined the wide-ranging models of physician alignment—from direct employment to directorships to affiliation agreement. Several sessions examined strategies for aligning the interests of physicians and hospitals, including physician ownership of real estate. Other sessions examined some of the new modalities of care that are emerging, including wellness centers and free-standing Emergency Departments (EDs). Preventative care has emerged as a critical component of most systems’ strategies for driving down healthcare costs; and wellness centers, along with patient education and resource centers and free-standing EDs, figure prominently in those strategies. Increasingly, these facilities serve as anchors in critical healthcare markets, and after the patient base has been cultivated, additional facilities, including MOBs, are added. The “Leasing and Management” track also explored how changing dynamics within healthcare delivery are affecting the tenancies of MOBs. Inertia about healthcare reform has subsided, so hospitals and physicians are refocused on discussing space options. Non-traditional real estate, such as retail, repurposed general office and stand-alone facilities, appeals to physicians and hospitals seeking outpatient locations with enhanced access and visibility for patients. Savvy landlords and tenant-rep brokers are pursuing those opportunities. Electronic medical records (EMR) and technology advances continue to “open” space previously dedicated to medical records and files. Landlords need to anticipate changing technology to attract physician tenants. There seems to be greater emphasis on turnkey tenant improvements, as both hospitals and physicians are concerned

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BOMA

about initial cash outlays for real estate. Concerns about capital constraints among healthcare systems were echoed in the sessions focused on the capital markets. While investor appetite for healthcare real estate remains strong, transaction volumes, especially large monetizations of medical office portfolios, have continued to be lighter than expected. Development activity has also been slower, and many healthcare systems are weighing the merits of using third-party capital vs. their own, particularly with historically low financing rates. Not-for-profit (NFP) systems increasingly report significant capital challenges, including concerns about taxation, as cash-strapped states are looking for additional revenues. One session examined options for managing credit quality, debt financing and mechanisms for creating taxable subsidiaries and financing vehicles for NFPs. On June 28, 2012, subsequent to the conference, the U.S. Supreme Court upheld the constitutionality of the Patient Protection and Affordable Care Act (PPACA). While the court has ruled, uncertainty remains as opponents of PPACA suggest a campaign to repeal the act. Regardless of whether the ruling stands or is repealed, most healthcare system executives agreed that their focus will remain on reducing the cost of care and improving outcomes, as all expect that Medicare reimbursements will continue to decline. Declining reimbursements will continue to stress systems’ operating margins, and most do not expect the capital constraints that have plagued healthcare systems to abate any time soon. But most speakers and attendees also agreed that healthcare real estate, especially real estate dedicated to outpatient uses, will remain appealing to investors and will continue to be a centerpiece of healthcare systems’ overall strategies. The types of facilities that will be developed and deployed will likely evolve alongside the evolution of care delivery models, and “traditional” medical office buildings that simply house physician practices will likely give way to facilities that can house a variety of outpatient clinical procedures, wellness and perhaps even retail-type tenancies.

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TRADE TOOLS [PEST MANAGEMENT]

Sustainable Operations Should Include Sustainable Pest Management By Patrick T. Copps, MS, B.C.E.

One of the most important ways to help deter pests is to get your tenants on board with your IPM program through communication and training programs.

Facility maintenance needs to be on board with the pest prevention process by sealing cracks and crevices that allow pests to gain entry into a building.

implementing preventive techniques, such as ongoing sanitation and meticulous facility maintenance, you can reduce your property’s attraction to pests while also reducing the need for chemical pesticides. One of the most important ways to help deter pests is to get your tenants on board with your IPM program. Many pest management providers offer training courses to help educate tenants about the importance of proactive sanitation and the elimination of pest-conducive conditions. Facility maintenance and landscaping professionals also need to be on board with the prevention process. Facility maintenance professionals need to keep the building in good repair by sealing cracks and crevices that allow pests to gain entry, while landscape professionals need to keep vegetation trimmed and irrigation systems in good condition. 3. Identification—Correct identification of pests is also crucial, as it allows the pest management professional to use the appropriate pest control strategies. Without accurate identification, the treatment protocol may not be effective. For example, pheromone traps can be used to target certain insects by incorporating synthetically replicated versions of their pheromones to lure the target pest to a sticky trap. Similarly, insect growth regulators (IGRS) use synthetic hormones to disrupt pest insect life cycles and prevent them from reaching full maturity. This prevents reproduction

and limits the pest population. 4. Action thresholds and control measures—The action threshold is a point when pest populations or environmental conditions indicate that pest control action must be taken. Work with your pest management professional to determine the appropriate threshold and control measures for your facility. Determining and documenting these action thresholds is particularly important in attaining LEED credits. Also, as part of this process, create a plan for notifying tenants of any necessary treatments. 5. Monitoring—Document the corrective actions taken to help eliminate a pest problem and continually monitor the effectiveness of this process. In the long run, documentation can help you to identify pest population trends and better determine appropriate corrective actions to continually improve your program. As you pursue sustainable designations, set aside some time to evaluate your pest management program to ensure it is supporting—and not detracting from— your sustainable operations goals. BOMA

Consumer appetite for sustainable practices makes employing environmentally friendly building and operations standards more than a socially responsible move. It’s a competitive advantage. What was once innovation in the eyes of the tenant is now a preference for which they are willing to pay a premium. As you seek eco-focused designations for your property or portfolio, keep in mind that pest management is an area that can earn you points when you employ best practices. A sustainable approach to pest management involves an Integrated Pest Management (IPM) program, which uses proactive methods to remove the elements that attract pests and help reduce the need for chemical treatments. An IPM program accounts for seasonal fluctuations in pest presence, indigenous pests and the aspects of your facility that draw pests to it. The goal is to deter pests by limiting access to their basic necessities—food, water and shelter—through improved sanitation practices and facility maintenance. This approach is proactive and holistic, employing low-impact chemical treatments only as a last resort. Building a strong IPM program can earn your facility points for designations, such as LEED and BOMA 360, which, in turn, can be marketed to the sustainably minded tenant as one of your property’s chief assets. An IPM program is based on a five-tier approach: 1. Inspection—A thorough inspection of the property allows a pest management professional to assess existing pest activity and identify potential points of pest entry or areas of the property that present conducive conditions for pests. It’s the starting point for developing a customized IPM program that meets the specific needs of your property and for creating a proactive plan to address ways to reduce food, water and shelter for pests. 2. Prevention—The key to any successful IPM program is prevention. By

About the Author: Patrick Copps is technical services manager for Orkin, LLC’s Pacific Division. A board-certified entomologist in urban and industrial entomology, Copps has more than 35 y ears of experience in the industry. He can be reached at pcopps@ rollins.com. For more information, visit www.orkincommercial.com.

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CMY

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Buyers’ guide

Buyers’ Guide to Building Products and Services In June, the tradeshow at the 2012 Every Building Conference & Expo in Seattle featured hundreds of vendors and suppliers with innovative solutions to solve the operational challenges property professionals are facing today. Here are just a few of the offerings that were on hand.

PRODUCT

DETAILS U.S. Pavement Services Launches Its Made in America Campaign For more than 25 years, U.S. Pavement Services has been a leader in the pavement industry and pr ovides a wide range of solutions for a variety of pavement needs. The company recently launched its “Made in America” campaign, which highlights a commitment to buy only American-made products, equipment, goods and services. U.S. Pavement created a guide for pavement contractors to identify the best suppliers and service providers throughout the United States and aims to support jobs across the country.

For more information, visit www.uspavement.com

Tork Introduces Elevation DoorMate Tork, a brand of SCA, of fers a complete range of pr oducts and services modeling hygiene and sustainability expertise in the commercial sector. Its new restroom hand protection system, Tork Elevation DoorMate, is a folded tissue dispenser and five-liter bin that creates a system to protect hands from door handle germs and helps eliminate waste on the floo. Not only does the DoorMate have a sleek design, it is easy to install, refill and clean. Refills e 100 percent recycled.

For more information, visit www.sca-tork.com

Firestone Building Products Offers High-Tech Skylight The Sunwave SMRT (solar motion response technology) skylight uses mirrors and satellite technology to reduce the electrical need for lighting by 50 to 80 percent. This allows buildings to operate strictly with daylighting for up to 10 hours. The diffuser produces light without shadows and blocks harmful ultraviolet rays. Electricity is also saved through lower air conditioning costs, as the skylight gives off no heat. Sunwave SMRT can withstand high winds, heavy rains and weights of up to 1,200 pounds dropped from six feet.

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

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Placing facility management at the head of the table. Successful facility management links the role of the facility to an organization’s core business strategies. What you learn at IFMA’s World Workplace ensures that you’re a part of C-suite conversations—contributing to the triple bottom line through innovative programs that cut costs, boost revenue and enhance the performance of facility operations, employees and the business itself.

Smart facility management drives smart business. Come, Learn, Get Connected.

www.worldworkplace..org/

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Buyers’ guide PRODUCT

DETAILS Ingersoll Rand Security Technologies Turns Smartphones Into Credentials A leading global provider of security and safety solutions now has an aptiQ multi-technology r eader that accommodates proximity cards and smart cards and, more importantly, works with NFC-enabled smartphones. As smartphones become NFC-enabled, tenants will simply use their phones to enter buildings in place of their smart-card ID badges. To do this, Ingersoll Rand Security Technologies has developed the aptiQmobile app, which is easy to install, extr emely secure and transforms any smartphone into credentials.

For more information, visit http://w3.securitytechnologies.com/irst/Pages/default.aspx

KONE Polaris Improves the Efficien y of Your Busy Elevator This advanced system uses a Destination Operating Panel (DOP) to impr ove elevator performance by utilizing passenger information, such as the desired floor destination and the number of waiting passengers. During periods of high trafic, this improves wait times, increases capacity and results in fewer intermediate stops and enhanced passenger comfort. Imagine organized lobbies, uncrowded elevator cars and passengers who arrive to their destination in less time.

For more information, visit www.kone.com/countries/en_US/modernization/modernizationsolutions/Elevators/destinationcontrol/Pages/default.aspx

Kimberly-Clark Professional* Combats Germs Through Healthy Workplace Project Each year, absenteeism costs the average business about $1,685 per employee. The Healthy W orkplace Project was put into effect to help property managers educate tenants with an innovative pr ogram designed to help them understand, eliminate and prevent the spread of cold and flu germs within their o fices. The program uses a three-step protocol and utilizes hygiene products, marketing materials and online tools to help employees create a healthier work environment. The first Healthy Workplace Project Award was given to Rotech Healthcare during the TOBY Awards at BOMA 2012 in Seattle.

For more information, visit www.healthyworkplaceproject.com

ADVERTISING INDEX

WHEN DISASTER STRIKES Coit Cleaning & Restoration Services can respond within one hour to reduce further property damage. We Provide: • Emergency water removal & flood damage restoration • Fire/Smoke damage restoration & odor control • Structural & contents cleaning & drying. Restoration of carpet, upholstery, draperies, blinds, area rugs & HVAC systems • Mold Remediation • Asbestos & lead abatement

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1 - 8 0 0 - F OR-C OI T 1-8 1 - 8 0 0 - 3 6 7 - 2 6 4 8

Comp any

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AAON..............................................................Cov 4 American Anchor................................... Cov 2, 35 American Services Group..................................35 Angus Systems......................................................16 AP&G Co. Inc........................................................35 Aquatherm Inc.-HQ............................................35 Asphalt Kingdom..................................................35 Baltimore Aircoil Co. Inc.....................................35 Bartlett Tree Experts...........................................33 Belco Pipe Restoration.......................................11 Bird-B-Gone Inc....................................................35 Bird-X Inc...............................................................20 BITZER U.S. Inc.....................................................35 BOMA International.....................................Cov 3 BOMA Nevada......................................................44 CEDES.......................................................................3 Cleaning Services Group....................................36 COIT Cleaning & Restoration Services.........46 Continental Control Systems...........................36 Covanta Energy Corporation...........................14 Disaster Kleenup International (DKI).............21 Diversified Pu e Chem ......................................21 Eagle Technology...................................................36 Garlock Equipment Co.......................................36 Gatski Commercial Real Estate Services.......36 Gee Asphalt Systems Inc.....................................36 General Elevator Parts........................................36 Georgia-Pacific Gypsum-DensDec .................7 Grailey Material LLC...........................................37 Hamilton Blake Safety.........................................37 IFMA........................................................................45

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Keyscan Access Control Systems....................19 Magnetek................................................................37 NIXALITE of America.........................................37 Orbio-Tennant Co................................................10 Orkin Pest Control................................................4 Permatron Corp....................................................37 Predictive Service.................................................37 RAB Lighting..........................................................37 Radiant Electric Duluth-Black Goose Chimney & Duct...............................................37 RC Musson Rubber Co.......................................33 Reliable Paving.......................................................20 Rentokil...................................................................38 RoofConnect.........................................................38 Rubbermaid Commercial Products.................25 Salsbury Industries...............................................17 Security Door Controls.....................................38 Sentry Protection LLC........................................38 SERVPRO Industries Inc........................................9 Shortridge Instruments Inc................................44 SIGNARAMA........................................................12 Special Pathogens Laboratory...........................38 Spot Coolers..................................................... 13A T2 Site Amenities.................................................38 Total Door.............................................................38 Touchsource-Directory Solutions...................36 U.S. Green Building Council-USGBC..............43 Watco Manufacturing Co...................................15 Wausau Window & Wall Systems....................38 xpedx.......................................................................41 Zeag Canada Ltd...................................................39

For special offers:

The BOMA Magazine July/August 2012

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EERAd_2012Full_Chef_Layout 1 6/15/12 3:29 PM Page 1

Performance MATTERS How Does Your Building Measure Up?

Subscribe today at www.bomaeer.com Get the ingredients you need to measure and manage asset performance with the 2012 EER®...

NEW FOR 2012! Use expanded search options for more in-depth trend analysis than ever before...

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We asked our engineering department to design a commercial 2-6 ton HVAC unit that has:

❧❧ A❧high❧efficiency,❧long❧life,❧belt-free❧fan ❧❧ A❧durable,❧variable❧capacity❧compressor Complete❧hinged❧door❧access❧with❧double-wall,❧R-13❧ ❧❧ ❧❧ insulated❧cabinet❧that❧can❧last❧40❧years❧or❧more ❧❧ ❧The❧ability❧to❧obsolete❧all❧constant❧volume❧units❧by❧ operating❧as❧a❧single❧zone❧VAV❧unit.

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They did it in a unit that operates up to

SEER

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er QS

R Defining Quality. Building Comfort.

Contact❧your❧local❧AAON❧representative❧to❧find❧out❧more❧about❧other❧ products❧we’ve❧engineered❧for❧you. Rooftop Units • Outdoor Mechanical Rooms • Chillers • Boilers • Condensing Units • Air Handling Units • Geothermal Units

AAON - Premium HVAC equipment • www.AAON.com

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