BOMA Views Spring Edition-May 2013 by BOMA San Francisco

SUSTAINABILITY REPORT Celebrating BOMA Bay Area 2013 EARTH Award winners and the companies and organizations that support them (begins after page 4).

Commercial Real Estate Salaries Rising

Spring 2013

Good Pay and Benefits Will Attract Industry Newcomers There has been an upward trend to $94,200, with bonuses of 9.6% in CRE compensation in recent years, to 11.9%. Those figures would be according to CEL & Associates Inc.’s inflated by 25% for East Bay execulatest National Real Estate tives, applying Robert Half’s survey. Compensation Survey. Many “Based upon the expected surge commercial properof Baby Boomer ty and facility retirees, once their managers throughretirement future is out the Bay Area secure, a potential are earning the sort shortage of 15,000 of salaries and to 25,000 ‘qualified’ bonuses that should workers per year will also attract career be created within the newcomers to real estate industry,” replace retiring CEL’s CEO Chris Lee Baby Boomers. said in an interview. For example, “Today it is estimated the median base that 80%– 90% of CRE professionals are climbing to salary for a top graduating students positions with higher salaries. property managein robust college real ment executive, nationwide, was estate programs receive a job offer.” $184,400, with an annual bonus of This favorable compensation 44.5%. San Francisco Bay Area manreport is good news for those considagers and executives might expect ering a career in commercial real even more, since a Robert Half surestate. “There are incredible opportuvey shows that employees in the San nities for young people who are Francisco metropolitan area average qualified,” said Lee. He emphasized earning 35.5% more than the nationthat entry-level staffers with some al average. education in commercial real estate At the lower end of the scale, an are preferred. Lee pointed out that as assistant property manager’s median Baby Boomers retire, sometimes income was $52,800, with an average suddenly, companies in the industry bonus of 7%, according to CEL— will need knowledgeable people to fill and the likelihood of a 35.5% bump their positions. one might expect in the higher-paying For more details on CEL surveys Bay Area. visit, www.celassociates.com. To Property managers of buildings find out what the BOMA San from 250,00 sq. ft. to 1,000,000 sq. Francisco Foundation is doing to ft. nationwide earned median-level prepare the next generation, visit salaries that ranged from $72,200 www.bomasf.org.

2 BOMA SF Foundation: Giving = Value With Steven Ring, BOMA San Francisco President BOMA San Francisco’s Foundation was created for a single purpose: to create an educated workforce for our industry to backfill thousands of seats that retiring Boomers will BOMA President Steven Ring soon vacate. To achieve this goal, mentors a young professional. our 501 (c) 3 charitable foundation partnered with San Francisco State University to align industry goals with the undergraduate curriculum offered at the school. Your donations create value threefold.

Industry Value The San Francisco Bay Area is in a talent war, with commercial real estate battling for the same people that other industries such as technology, are attracting. Through SFSU’s curriculum and our scholarship and mentorship programs, BOMA’s Foundation offers new career choices supported by a solid education and the ability to access companies that support the program. Industry employers benefit by being able to recruit job-ready candidates who have an understanding of the industry before accepting their first job. We provide a jump-start for employers looking to develop new leaders within their firms.

Company Branding Value A firm is only as good as the talent it can attract, and having an industry-specific educated workforce brings value to the firm. Value is created in workflow efficiencies, as well as being able to demonstrate to clients that your firm only recruits the best within the industry and holds professional training and education a core principle.

Managed Asset Value Real estate is only as valuable as the talent that is responsible for the asset. Deferred maintenance, lack of cost controls and an insufficient understanding of an asset strategy will influence an asset’s value and the responsible party is whoever has oversight of the asset. Investing in one’s workforce enhances asset value. For over 100 years, BOMA has developed some of the best leaders in the industry and, through the Foundation, BOMA is reinforcing its leadership role for the foreseeable future. Donating to the Foundation ensures our industry’s long-term success and sustainability. Please see http://www.bomasf.org/boma_foundation.vp.html or contact Marc Intermaggio at mli@boma.com for more information.

Thanks to BOMA San Francisco’s 2013 Corporate Sponsors* Platinum Sponsor

Able Services

Gold Sponsors ABM Family of Services NRG Energy Center San Francisco Pacific Gas & Electric Company Recology Golden Gate

Silver Sponsors Alliance Roofing Company, Inc. BCCI Construction Company BWRS-Always Green CAC Real Estate Management Co., Inc. Cypress Private Security LLC Hines Kilroy Realty Corporation Metropolitan Electrical Construction, Inc. Paramount Group, Inc. San Francisco Electrical Contractors Assn., Inc. Universal Protection Service

Bronze Sponsors California Technical Contracting, Inc. CodeGreen Solutions Equity Office Georgia Pacific Hathaway Dinwiddie Construction Co. Hudson Pacific Properties Imperial Parking US LLC - Impark Marble West McMillan Electric Co. RREEF Securitas Security Services USA Shorenstein Realty Services The Swig Company, LLC ThyssenKrupp Elevator Corporation Unique Elevator Interiors Inc.

Friends of BOMA American Asphalt & Concrete Boston Properties C & C RiverRock Newmark Capital Building Maintenance CBRE Cole Supply Cushman & Wakefield of CA GCI General Contractors Langley Investment Properties LAZ Parking ProTech Security Services, Inc. R.N. Field Construction, Inc. Rossi Builders The Lawson Roofing Co. Inc. Waxie Sanitary Supply Young Communications Wilson Meany *For sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com

3 Members on the Move Joe Braucher joined Impark as General Manager in 2013. He was previously a Branch Manager with ABM Parking. In his new role, Joe oversees all of Imparkâ&#x20AC;&#x2122;s Bay Area parking facilities including AT&T Park, Jack London Square and Bay Street in Emeryville. Impark manages and operates more than 40 locations throughout the Bay Area.

Since 1976, businesses in the real estate industry have turned to us for the resources and expertise that help them grow. Our real estate group provides a wide range of services including financial statement audits, income tax planning and compliance, lease and construction cost audits and CAM reviews.

George Shaheen has joined Johnson Controls as an Account Executive in Building Efficiency for the San Francisco Bay Area. He looks forward to working closely with fellow BOMA members in making buildings more comfortable, safe, productive and energy efficient. Josh Toothman joins Jones Lang LaSalle as Vice President, Regional Engineering Manager. He previously spent nine years with ABM in its engineering and facilities division. Josh is tasked with leading Jones Lang LaSalle's engineering group throughout the Bay Area and greater Northwest. Most recently he served on the BOMA labor steering committee, which successfully negotiated a five year renewal of the Collective Bargaining Agreement between BOMA SF and the International Union of Operating Engineers, Stationary Engineers, Local 39.

About BOMA VIEWS Views is published by BOMA San Francisco. Associate Publisher: Tory Brubaker Editor: Henry Eason Ad and Art Director: Ellen Eason Eason Communications LLC

To advertise, contact: Ellen Eason at 415.596.9466 or ellen@easoncom.com

For a complimentary consultation, please call (415) 434-3744. www.oumcpa.com

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Clients Served General Contractors Architecture Firms Property Management Firms Sign Installation Companies For a free cost estimate proposal, contact: Andrew S. Fairbairn andrew@s1permits.com 925.872.9081 www.servicefirstpermits.com Serving San Francisco and the East Bay

4 Unique Elevator Interiors Designs, Fabricates and Installs Elevator Interiors That Enhance Buildings The Unique Elevator Interiors (UEI) team strives to take your vision and make it a reality, with quality engineering behind the aesthetics. UEI designs, fabricates and installs innovative elevator cab interiors for highprofile projects throughout California. Interiors may be of a conventional design or customized, one-of-a-kind elevator cab interiors for a variety of commercial, hospitality, government and residential customers. “Elevators offer visitors one of the their first impressions of a building,” says Jim Haygood, Project Management/Sales, at UEI. “We work to make sure that the elevator cab interior design flows seamlessly into a facility’s overall interior design.” UEI clearly understands its customers’ needs and provides creative design, quality engineering, efficient processes, competitive prices and stellar customer service. Projects include new construction, building renovations, elevator modernization and repair work. Each elevator interior project is tailor-made to fit the customer’s design, budget and schedule parameters. In-house fabrication in UEI’s shop ensures product quality and delivery. The creative design is backed by solid engineering, with each elevator cab interior built to exact specifications for safety and durability. As a Certified Qualified Conveyance Company (CQCC), UEI can take your project from design through installation.

Green Building Expertise

Examples of UEI projects. To see more, visit the online portfolio.

If your goal is to leverage the environmental and economic benefits of Green Building, UEI can help with your elevator cab interior construction, modernization or remodeling. As an FSC-certified fabricator, UEI understands the leading technologies and products that support Green Building needs and can make your elevator cabs green by using low- and no-VOC materials and adhesives, renewable materials, energy-efficient lighting systems and FSC-certified materials. “Our unique service niche makes us an ideal partner for the many firms and buildings doing TI work or new construction,” adds Haygood. “We look forward to partnering with others to take projects from concept to reality.“

To learn more, contact: Unique Elevator Interiors 510.777.9050 info@UniqueElevator.com www.UniqueElevator.com

Green is Gold

Green Pros Wanted

LEEP Saves Energy

City Resources

Sustainably Built and Operated Buildings are More Profitable

Green Buildings Require Many Participants

Greener-Lit Parking Garages and Lots Save Energy

Page 8

Page 9

SF Government Helps Buildings Become Greener â&#x20AC;&#x201C; At No Cost

Page 3

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A special thanks to the sponsors of the BOMA Bay Area EARTH Awards. Lead Sponsor The Sustainability Report is edited and designed by Eason Communications LLC and published by the Building Owners and Managers Association (BOMA) San Francisco and BOMA Oakland/East Bay for the BOMA Bay Area EARTH Awards program.

To learn more about BOMAâ&#x20AC;&#x2122;s sustainability efforts, please visit: www.bomasf.org, www.bomaoeb.org and www.boma.org. Copyright Â© 2013 by the Building Owners and Managers Association San Francisco.

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Luncheon Sponsors

Awards Sponsor

Green is Gold Sustainably built and operated buildings are more profitable and have greater value Evidence is abundant and mounting that green buildings are more profitable to operate—for many reasons. They use less energy and water, command a rent premium, are more marketable, promote lease renewals, require less maintenance, boost building value and sale price and generate better goodwill within the community and among public officials. The Building Owners and Managers Associations of San Francisco and Oakland/East Bay can take pride in being major forces in making Bay Area commercial office properties arguably the greenest in the nation, measured by many standards. San Francisco has the largest urban concentration of ENERGY STAR-certified buildings in the country on a square-foot basis and is No. 6 in the nation in the number of ENERGY STAR-certified buildings, despite being smaller than many other major cities. The area’s reputation for being a highly sustainable community acts as a magnet for new business, especially those staffed by younger, well-educated employees who value a clean environment. BOMA’s unique EARTH Awards and preceding efforts have encouraged sustainability in San Francisco’s commercial real estate community by spreading knowledge of how to operate greener buildings in numerous ways, from garages to rooftops. Buildings that have competed for green distinctions have elevated their value to all stakeholders.

a green, sustainable building. As a result of the steadily increasing market domination of LEED and ENERGY STAR in the Bay Area, being green adds a certain cachet to an asset for a prospective tenant. Even if one ignores the data showing higher rent, effective rent, and building sale prices for sustainable real estate, why put oneself at a competitive disadvantage by not striving to be green?” Green buildings are increasingly important to tenants. “The typical tech firm employee spends far more time at the office location: eating, exercising, working and in some cases, sleeping there, along with recreational activities that include jam rooms, gaming, yoga, dancing and more. The energy level and time commitment to ‘the business’ is great, so providing them a healthy environment is

Green Buildings Are More Profitable $ Use Less Energy and Water $ Generate Higher Rents $ Attract More Tenants $ Increase Building Value $ Enhance Tenant Satisfaction

Green buildings: the bottom line A recent CBRE national survey of 156 buildings totaling 52 million square feet and 588 tenants concluded that green buildings have higher rental rates, better occupancy, increased asset value and decreased operating expenses. Tenants in sustainable buildings reported that green office space aids in employee recruitment and productivity, impresses their visitors and boosts their public image. “Take a stroll through the financial district in downtown San Francisco and witness the ubiquity of LEED and ENERGY STAR plaques on the largest and most attractive commercial buildings,” says Zachary Brown, Sustainability Manager, CBRE’s Asset Services Group. “It should be no surprise that the youth-oriented booming tech companies flooding high-rises place a concrete premium on the often intangible value of leasing space in

vital,” says David Hayes, CEO of Skyline Construction, whose company has built many sustainable offices in the Bay Area. In the many knowledge-based industries in Northern California, employee well-being translates directly into profitability. “The value of investing in good energy management is clear, it increases net operating income and building value and at the same time improves tenant comfort and marketability. As awareness to building energy performance continues to grow, it's critical for building managers to actively engage in ongoing improvement to remain competitive,” says Justin Tiedemann, CEO of EcoCosm. (Continued on page 14)

Sustainability Report

2013 BOMA EARTH Award Winners Large Buildings • Over 500,000 SF 1st Place: One Front Street, San Francisco • Jones Lang LaSalle

2nd Place: Hills Plaza, San Francisco Jones Lang LaSalle

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3rd Place: One Maritime Plaza San Francisco • CBRE, Inc.

2013 BOMA EARTH Award Winners Medium Buildings • 300,0000 to 500,000 SF 1st Place: Russ Building, San Francisco • Shorenstein Realty Services

2nd Place: 650 California Street San Francisco • Tishman Speyer

3rd Place: 2100 Powell, Oakland Hines Interests Ltd. Partnership Sustainability Report

2013 BOMA EARTH Award Winners Small Buildings • Under 300,000 SF 1st Place: 150 California Street, San Francisco • CBRE, Inc.

2nd Place: 501 Second Street San Francisco • The Swig Company

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3rd Place: 633 Folsom Street San Francisco • The Swig Company

2013 BOMA EARTH Award Winners Innovation Awards Innovation of the Year: Landscaping for the Community 101 California, San Francisco Hines Interests L.P.

Recognition of Innovation Cleaning with Orbio (101 California, San Francisco Hines Interests L.P.) A Garden for The Tenants (1001 West Cutting Blvd., Richmond Wareham Development) Tenant Loop Condenser Water Retrofit (One Maritime Plaza, San Francisco CBRE, Inc.) Temperature Sensors for Steam Traps (The Mills Building, San Francisco The Swig Company)

Sustainability Report

Green Buildings Require Many Participants It takes many types of professionals and service and product providers to make a building sustainable: architects, contractors, energy and waste consultants, to name a few. “Building efficiency practices are constantly evolving and ever-improving. As our industry continues to get smarter and more innovative, our consultants are our eyes and ears to educate us on what emerging trends and new best practices may be suited for implementation at other properties,” says Blake Peterson, Senior Property Manager at Langley Investment Properties. Environmental Building Strategies is an example of the type of firm that works with property managers and engineers to green a building. “To benefit from their sustainability goals, building owners and project teams must analyze life cycle costs, materials, construction techniques and operating procedures in order to have a deep understanding of the economics and sustainable opportunities that exist in the renovation,

Sustainability Report

Hathaway Dinwiddie’s tenant improvement project for Morrison & Foerster LLP received LEED Gold Certification, featuring water use reduction, energy savings and recycled and regionally sourced materials.

maintenance and operation of existing buildings. That analysis will optimize the value of their building — hence EBS fulfills these ambitions through comprehensive financial and environmental analysis,” says company Principal Matt Macko. Building owners and managers increasingly seek more sustainable operating environments—and so do their tenants. “The Bay Area is at the forefront of the country when it comes to support for green building and most tenants are increasingly interested in incorporating green building practices and design elements into their projects. As with other developments, such as sophisticated technology, cost is always a factor. However the industry is advancing at a pace that allows for many sustainable features, that would have resulted in a cost impact only a few years ago, to be included at no additional cost,” says Tom Williamson, Special Project Manager at Hathaway Dinwiddie. Saving energy is always at or near the top of everyone’s sustainability list. “Energy efficiency is a resource that can be extracted to improve environmental performance and reduce operating expenses in commercial and industrial buildings. We make it profitable for properties to become carbon neutral through turnkey, customized, and data-driven energy projects,” says Eric Brown, Director of Business Development at Carbon Lighthouse.

Greener–Lit Garages and Parking Lots Result in Extensive Energy Savings If the Building Owners and Managers Association and allied organizations achieve their goal of more efficient energy use in garages and parking lots, enough energy would be saved to power 4,500 homes annually. The recently launched Lighting Energy Efficiency in Parking (LEEP) Campaign encourages the use of high-efficiency lighting technology. Participating building owners and managers agree to evaluate their portfolio to identify potential parking lots or parking structures that can apply high-efficiency lighting technology and to use high-efficiency lighting where feasible and cost-effective. Both retrofit and new construction projects are eligible to participate in the campaign. Existing sites that have been built or retrofitted with high-efficiency technology are also eligible to participate in the campaign, if they were built or retrofitted after January 2010. LEEP’s goal is to have 100 million square feet of parking structure or lot space to use roughly one-third less energy than ASHRAE Standard 90.1-2010. Based on estimates, these energy savings equal more than 51 million

kilowatt-hours. “Tremendous progress has been made in recent years on the quality and cost-effectiveness of LED lighting and other technologies,” remarked BOMA International Chair Joseph W. Markling, managing director of Strategic Accounts at CBRE. “There has never been a better time to retrofit parking lots and structures as state-of-the-art lighting technologies can last two-to-five times longer than traditional outdoor lights. Additionally, these systems pay for themselves quickly by cutting energy costs by up to 70 percent and maintenance costs by up to 90 percent.” The LEEP Campaign website, www.leepcampaign.org, gives interested organizations information on technical and financial assistance, as well as case studies, rebates and incentives. Organizations that join LEEP will be recognized on the campaign website for their participation. Projects with notable energy savings will receive awards from the LEEP campaign and will be profiled on the site. The deadline for submitting project information is November 30, 2013. Results and awards will be announced in February 2014.

Share the Clean Energy Experience NRG Energy Center San Francisco delivers environmentally sound, energy-efficient heating to downtown buildings. The benefits include: Environmentally safer buildings with no on-site fuels or chemicals Lower operating costs with no capital expense for NOx boiler retrofits Reliable 24-hour staffing by district energy professionals

To partner with us, contact our local Energy Center at 415.644.9666.

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NRG congratulates the 2013 EARTH Award winners!

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If less is more, Zero Waste is everything. L

Congratulations to BOMAâ&#x20AC;&#x2122;s 2013 Bay Area Earth Award Winners recologysf.com/zero

Sustainability Report

San Francisco City Government Helps Commercial Buildings Become Greener — At No Cost By Delyn Kies, Waste Diversion Consultant to SF Environment

If you want to reinvigorate your recycling and composting program, free expert assistance is just a phone call away. The San Francisco Department of the Environment (SFE) offers free resources and

“We really needed to improve our buildings’ recycling diversion rate. We conducted our own tenant visits and started a tenant-by-tenant checklist of performance. But we still had a few tenants that were not cooperating. We called in SFE to conduct customized training with photos of their contaminated recycling. They did a demonstration of what’s recyclable, what’s compostable and what’s landfill trash, and then what happens to the materials once they leave the building. It was like a light bulb going off for our tenants! They reported back that they got all their questions answered and now I’m armed with a customized presentation and all the website tools to keep it going,” Sonia Sharma, Hines Tenant Service Coordinator. For information, visit: www.sfenvironment.org/zwbusiness

SF Environment conducting waste audit at 501 Second Street. (Photo courtesy of The Swig Company.)

on-site assistance to set up and improve recycling and composting collection programs. “We took advantage of SFE’s free waste audit. I watched and took notes while the crew sorted my building’s discards into recycling, composting and landfill. It was eye-opening how many recyclables and compostables were still in the landfill trash! We immediately scheduled an educational training for our tenants and showed them everyone’s performance. Believe me, the tenant at only 30% recycling diversion was embarrassed and motivated to improve,” says Assistant Property Manager Jenna Hattersley of The Swig Company. While the Mandatory Recycling and Composting Ordinance requires owners and managers of commercial properties to provide information and training to tenants and janitors each year, sometimes a little professional help is needed. Check out the Commercial Recycling Toolkit at: www.sfenvironment.org/zwbusinesstoolkit. To support implementation of your program, you can get help creating posters and stickers, sample letters to tenants and the template of a tenant training program. But SFE’s help doesn’t stop there. It also provides free multi-lingual janitorial trainings, on-site trouble-shooting for retail tenants, and educational presentations for office tenants.

Or contact: Steven Chiv, Zero Waste Commercial Associate, SF Environment, 415-355-3745, steven.chiv@sfgov.org or Delyn Kies, Waste Diversion Consultant to SF Environment, 415-209-0321, delyn@kies-strategies.com. “The Building Owners and Managers Association of San Francisco (BOMA SF) has shown tremendous environmental stewardship in helping make our City the cleanest and greenest in the country. From early advocacy and support of indoor smoking bans, recycling and composting programs, energy reduction and benchmarking initiatives, and water conservation programs, BOMA San Francisco and its members have led the way to making San Francisco one of the cleanest and healthiest places to live and work. I commend BOMA for continuing to encourage its members to redouble their commitment to energy conservation and sustainability through the EARTH Awards, promoting our City’s zero waste goals and implementing the best environmental policies and programs in commercial real estate.”

— San Francisco Mayor Ed Lee

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Is ENERGY STAR Working? by Mark T. Jewell, Co-Founder, Efficiency Sales Professional Institute

The EPA issued the first ENERGY STAR label for buildings nearly 15 years ago. Today, there are more than 21,000 buildings sporting this designation, collectively saving more than $2.7 billion in annual utility bills and preventing greenhouse gas emissions equivalent to the annual electricity use of more than two million homes in 2012. San Francisco is currently ranked 6th on the list of U.S. cities with the most labeled buildings, at 291.

McAllister’s 2011 study Green Noise or Green Value? Measuring the Effects of Environmental Certification on Office Values, have made the connection between ENERGY STAR labeled buildings and higher base rental rates per square foot, lower vacancy, and/or higher value per square foot. Third, more and more jurisdictions around the country are relying on Portfolio Manager to provide the transparency real estate players need to make better business decisions. San Francisco now requires certain non-residential buildings to benchmark annually and makes their scores publicly available to facilitate market transparency. When California’s AB1103 legislation takes effect later this year, anyone selling, leasing or refinancing certain types of entire buildings will be required to disclose energy performance data to the counter-party in the real estate transaction. In short, energy performance transparency works by providing a wide range of market players the information they need to make better decisions as they move to leverage enhanced efficiency to create genuine value in the buildings they own or occupy.

San Francisco is among the nation’s top green metropolitan areas, with 291 ENERGY STAR-certified commercial buildings.

ENERGY STAR benchmarking “works” from many perspectives. First, the Portfolio Manager tool that EPA uses to benchmark building performance not only gives managers valuable insight into which buildings are most in need of efficiency upgrades, but also motivates them to set improvement targets and track their progress on a normalized basis. ENERGY STAR recently analyzed building data from 2008 to 2011— some 35,000 buildings with complete benchmarking data — and found an overall decrease in energy consumption by 7%. A recent report commissioned by the California Public Utilities Commission found that benchmarking was highly correlated with building energy improvements and management actions and led to increased customer participation in utility rebate and incentive programs. Second, many recent studies have drawn the connection between a high score and improved competitiveness, profitability and value. The financial impacts of ENERGY STAR extend far beyond the utility bill. Several authoritative studies, including Franz Fuerst and Patrick

Sustainability Report

Green is Gold (Continued from page 3)

Detailing sustainability benefits

RUSS BUILDING 235 Montgomery Street

LEED Gold Energy Star Rating of 96 Participant in the Better Buildings Challenge

For Leasing Information Contact: Jim Collins 415.352.7239

SRF-1074 RussBuildingBOMAAd.indd 1

Tom McDonnell 415.772.7086

4/22/13 3:00 PM

“The largest controllable operating expense at most office buildings is utilities: electricity, gas, water, with lighting and HVAC accounting for the lion’s share of electricity,” says Gail Ringer, chair of BOMA San Francisco’s Energy and Environment Committee and vice president at Jones Lang LaSalle. “This,” she says, “is why there is so much emphasis on improving lighting and HVAC. A recent installation of low-wattage T8 lamps will bring a projected savings of $1,000 per year with a payback of three months after rebates.” She adds, “A variable frequency drive (VFD) installed on a 30 horse power motor will save almost $4,000 in electricity costs and have a payback of four months after rebates. Not only is the owner getting a fantastic payback period for their capital investment, but the tenants and owner benefit long-term by the more efficient equipment and reduced consumption costs. Additionally, new lighting technologies last longer than their incumbents leading to both material and labor savings as well as energy savings.”

The Bay Area: A beacon of hope “BOMA members are proud of their contributions to making the Bay Area greener,” says BOMA San Francisco Executive Vice President Marc Intermaggio. “We hope that our achievements will be an example for other communities, because we have very far to go before we become a green nation. Of the more than 5 million office buildings the Department of Energy says there are in the U.S., fewer than 22,000 have earned EPA ENERGY STARs. And the Department of Energy says energy costs rose 18% in the first decade of the 21st century.” “EPA reports that ENERGY STAR buildings achieve significant savings in energy costs. When building owners recognize that investing in greater sustainability will produce a much better yield on their investment, the country will save energy and produce healthier workplaces,” concludes Stephen Shepard, executive director of BOMA Oakland/East Bay. Steven Ring, Meade Boutwell, Melody Thebeau, John Bozeman and others contributed insights and research for this article.

Sustainability Report

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Blue is our color. Green is our creed. Right behind our focus on being customer-friendly, is our commitment to being earth-friendly. It just so happens many of these initiatives also enhance your cost-savings and operational efficiencies. Our daily environmentally friendly practices:

• • • • •

Providing pest management programs to LEED-certified properties, certified organic food manufacturing and other sensitive facilities throughout the Greater Bay Area

Document recycling Eco-friendly maintenance Regular inspection of equipment Energy-saving light bulbs Online financial reporting

Green practices we can help implement:

Congratulations EARTH Award winners! Celebrating 83 years and three generations of effective, state-of-the-art service

www.cranepestcontrol.com 415.922.1666 or 510.536.1222

• • • • • •

Environmentally safe cleaning Electric Vehicle Charging Stations Water recycling Tenant energy awareness and carpooling programs LED lighting retrofits Intelligent wireless lighting controls

For more information call 415.398.1900 or visit www.aceparking.com/green

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5 BOMA SF... Making Buildings More Sustainable The Building Owners and Managers Association of San Francisco has for decades acted in many ways to help San Francisco achieve its coveted status as the greenest city in America. Acting through its board, staff and through several of its committees, BOMA’s members have worked closely with government officials and allied business and labor organizations to create healthier and more productive work environments—and a greener Bay Area. BOMA San Francisco members have: ■ Significantly reduced energy consumption and waste ■ Supported ordinances that require benchmarking and energy audits ■ Crafted and implemented recycling and composting programs ■ Supported clean water conservation measures ■ Promoted healthier office environments by supporting indoor smoking bans ■ Developed green educational programs for building operators and tenants ■ Supported the creation and adoption of San Francisco’s Green Building codes

for new and existing buildings ■ Continued to support the implementation of new and innovative sustainable practices in our members’ buildings through our annual BOMA Bay Area EARTH Awards program

Mixing & Mingling BOMA at the Park The annual BOMA at the Park event on April 9 featured a lively pre-game patio party with member-sponsored food booths, followed by the San Francisco Giants game.

Above: Rich Neves, Pyro-Comm, Erick Sondeno, McMillian Electric, Jacki Nolen, Pyro-Comm, Rich Contreras, McMillian Electric.

Top photo: patio party. Lower photo: Jeanne Naour, KJ Murphy and Alicia Rosario with CAC Real Estate Management Co., Inc.

6 Principal Member Profile

Mike L. Sanford, Senior Vice President, Northern California, Kilroy Realty Corporation

Kilroy Realty has become a major force in the Bay Area in the last few years, thanks to a great extent to the leadership of Mike Sanford, says Marc Intermaggio, executive vice president of BOMA San Francisco. “We’re fortunate to have an industry leader like Mike on the BOMA Board of Directors, and pleased that he encourages and supports others on his team to get involved in our Association,” says Intermaggio. As a corporate generalist, Sanford is responsible for acquisition, development and asset management activities in Northern California and, as such, he values his 20 years as a BOMA member and his role on BOMA San Francisco’s board as an opportunity to keep abreast of all aspects of commercial real estate. His biggest concerns? Hiring qualified entry- to mid-level property managers, an issue he says is being addressed by the BOMA San Mike enjoys spending time with his family and Francisco Foundation, which works to stimulate CRE education. playing sports during his leisure time. Sanford also thinks we have to complete tenant improvement projects in a more timely and cost-effective manner, which he believes can result from streamlining the processes involving government officials, contractors and building owners and operators. His advice to young BOMA members: get involved, be present and don’t be afraid to ask questions. Sanford keeps fit chasing his two young children around (Macallan and Madison) and by swimming and weight lifting. He also enjoys cooking for dinner parties, particularly duck and andouille sausage étouffée.

7 Associate Member Profile

Chris likes to prepare gourmet meals and entertain friends.

Chris Baker, President Baker’s Floor Care

If you’re on a BOMA committee, chances are you know Chris Baker, because he acts as secretary to a number of panels and attends most. He says it gives him a deeper understanding of how to serve his building customers. “As Baker’s Floor Care’s representative in BOMA,” says Baker, “my participation in the organization and relationships I've formed have allowed me to gain an understanding of the challenges facing managers and owners. These valuable insights are incorporated in our metal, stone and wood services to make us a better partner to our clients.” Active on the Government Affairs Policy Advisory Committee, Baker sees the biggest challenge facing the commercial property management industry today as adverse legislation on the local, state, and federal level. “Changes in tax laws are just one example facing commercial property management. BOMA is perfectly positioned to help represent its members on political issues having its own inhouse lobbying team.” He says BOMA acts to “protect our buildings’ assets.” Says John Bozeman, BOMA manager of government and public affairs, “Baker offers his time as committee secretary on multiple BOMA committees. It’s an important role and we’re lucky to have him. He’s also a dapper dresser!” He’s also a gourmet cook who recently entertained friends with the following menu: Seared scallops with a white wine cream sauce, seared filet with brown butter emulsion sauce, truffle mashed potatoes, baked lemon asparagus. Lucky friends.

BOMA-Backed CRE Classes Popular Students are flocking to new classes in commercial real estate, thanks to a successful partnership the BOMA San Francisco Foundation forged with San Francisco State University. The College of Business there offers one of the country’s few degrees in finance with a certificate in commercial real estate. The BOMA/San Francisco State alliance CRE classes are a sell-out, as students show strong will help the CRE industry replace high interest in the field at a crucial time. levels of anticipated Baby Boomerretirements in the coming years with educated and mentored graduates able to quickly assume responsibilities in this complex field. “It is important to form relationships between the university and industry,” College of Business Dean Linda Oubre told BOMA leaders at a special event at the university April 25. BOMA Foundation Board Chair Sandra Boyle said, “The mission of the BOMA SF Foundation is to promote, sustain and strengthen the commercial real estate industry through education and workforce development.” The Foundation-backed curriculum at SF State focuses on “problem-solving approaches to commercial real estate,” said David Hysinger, an instructor in the program. “We need every company in the industry that has a stake in quality staffing to step up and help us better fund the work of the Foundation,” said BOMA San Francisco Executive Vice President Marc Intermaggio. Contact him at mli@boma.org.

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The Last Word: Ken Cleaveland Proposed Tax Hikes Would Sucker Punch California’s Economy Proposals to hike taxes by changing Proposition 13 and the Split-Roll Tax threaten to reverse California’s hard-won economic gains in the aftermath of the Great Recession. Commercial building tenants — most of which are small businesses — would suffer higher operating costs, making California a less desirable place to do business. California just celebrated an unemployment rate that dropped below 10% for the first time since the economic downturn. Higher taxes will equate to layoffs, triggering a cascade of economic events that will actually reduce revenues for state and local government programs. The unintended consequences of tax increases are actually revenue decreases: less money for education, social services, infrastructure improvement and a host of other public services. Legislators would better serve their constituents by supporting an agenda that stimulates the sustainable economic growth of the private sector. Diluting business strength by diverting resources to government programs will further discourage business formation in California at a time when we need to be doing all we can to make San Francisco and other California cities more appealing than other states or nations that are less expensive and more business-friendly.

California Citizens, Companies Oppose Tax Hikes Proposition 13 is working exactly the way it was intended by not allowing huge yearly reassessments, tax increases without solid justification and broad voter support —and keeping property taxes stable and predictable. And recent polls show a majority of Californians opposes changes to Proposition 13, including lowering the 2/3 requirement to impose tax increases. Businesses of all sizes throughout the state are coming together to oppose unsustainable tax-hike proposals currently introduced in the State Legislature because they would create an unstable and unpredictable business climate in which the cost of doing business in California would change from year to year as political winds blow through Sacramento. Companies require stable governmental climates to thrive. The pro-growth group Californians to Stop Higher Property Taxes says: “Small businesses typically lease properties where the cost of property taxes is passed through to the tenant. Raising property taxes, either at the state or local level, will result in employment losses which would be disproportionately concentrated in small businesses, and especially those owned by women and minorities.” It’s essential that business leaders — especially small business leaders — explain to their legislators the economics of how property tax hikes ultimately result in less revenue. Take the time to spell out your own company’s situation to the Assembly and Senate members who represent your area. Remind them that companies aren’t required to operate in California. They do so by choice. And they are constantly offered opportunities to do business elsewhere, taking their jobs with them. Ken Cleaveland is the Vice President, Public Policy of BOMA San Francisco.