Q4 2018
What a Year! Reflecting on 2018... Looking to the Future An event to “Connect, Reflect While the CRE scene was and Celebrate” capped off an eventful booming, a number of legislative year for BOMA. The Annual Meeting and regulatory issues threatened our & Directors’ industry, and Election CelebraBOMA’s comtion in October mittees provided brought members strong support together for the to tackle them. new format of “We were blindnetworking and sided by the programming. introduction of “What a two proposed Year!” exclaimed commercial rent outgoing BOMA taxes in the San Francisco June election: BOMA members gather at October event. President Marc Propositions C Gille in his opening and D.” A major remarks, noting that in San Francisco mobilization occurred by BOMA the year brought a 6.3% increase in members. Although Prop. D was asking rent, 3.5 million square feet in rejected, Prop. C passed by a slim net absorption— the highest annual margin. BOMA is joining other amount in history, resulting in 4.5% business groups in a lawsuit to vacancy — the lowest in 18 years. challenge the legality of the measure. “And just like the market, BOMA Other advocacy efforts included: San Francisco continues to deliver working with the City in the crafting value to members.” of the Tall Buildings Seismic Study, (Continued on page 14)
Codes Seminar Highlights Political Challenges, Tall Buildings Safety Issues Following the recent election, commercial real estate interests will work with a majority of members of the San Francisco Board of Supervisors who may not fully understand the business community in San Francisco, attorney Manny Fishman told a packed audience at BOMA’s Annual Codes Seminar. Fishman, whose firm Buchalter focuses on commercial real estate, appealed to members of BOMA San Francisco to get involved in government affairs and to better educate supervisors about the need to keep the City an appealing place to do business. (Continued on page 12)
What’s Inside Views... n n n n
Q&A with New BOMA President • Page 2 Cyber Threats and Resiliency • Page 4 Zero Waste by 2020 • Page 7 Meet BOMA Members • Pages 8 & 9 Left: Scene from the wine tour. See more photos on page 19.
2
Q &A With Bill Whitfield, Newly Elected President of BOMA San Francisco
You took office at an eventful time for the association, with a hot CRE market that is facing both opportunities and challenges. As you preside over BOMA San Francisco in the next year, what are your key objectives? Primarily, I want to continue to support the objectives, efforts and programs that are currently a focus for BOMA SF. My involvement on the BOMA board has provided an inside view of the extensive work that is happening on behalf of owners, managers, employees and tenants and the scope is impressive. The market remains positive and BOMA’s efforts should be to continue to emphasize and preserve that. As president, I consider it my duty to support and guide BOMA’s current agenda, since it has clearly already demonstrated a valuable benefit. Looking forward, however, BOMA SF will also help our collective industry understand trends and be prepared for what lies ahead by unifying our members, looking at the big picture, representing what is good for commercial real estate and presenting a strategy for upcoming years. Defending against frivolous and onerous taxes, assuring a commitment to sustainability and developing our workforce remain top priorities for me. How did your career lead you to commercial real estate? What is the top piece of advice you would offer young professionals who are involved in BOMA? My career path was so varied (and long) it would be difficult to suggest it was even a path. Going back to even before college... I was an activities director working at a facility for developmentally disabled adults, owner of my own retail custom furniture building store, visual manager and facilities manager with Nordstrom, carpenter and construction field engineer working on the restoration of the historic Fairmont Hotel, facilities manager for IKEA and, ultimately, a manager for Shorenstein. I am so grateful that Shorenstein took a chance on me for a unique opportunity in Oakland eleven years ago, because I definitely and finally found my career. Property management utilizes every bit of experience that I collected over the years, and I am sticking with it. My advice to young professionals is that commercial real estate is a great career. I should know, I have tried a few! What resources from BOMA San Francisco and BOMA International do you and your colleagues rely on for training, staff development and networking?
(Continued on next page)
Thanks to Our 2018 Corporate Sponsors* Platinum Sponsor
Able Services Gold Sponsors
ABM CenturyLink NRG Energy Center San Francisco Pacific Gas & Electric Paramount Group, Inc. ProGuard Security Services, Inc. ProTech Security Services, Inc. Recology Golden Gate San Francisco Electrical Contractors Assn., Inc.
Silver Sponsors Allied Universal CBRE Columbia Property Trust Comcast Business GSH Group Hines Hudson Pacific Properties Kastle Systems McMillan Electric Metro Electric Service by Medallion SP+ Unique Elevator Interiors, Inc.
Bronze Sponsors Boston Properties CBF Electric & Data. Cushman & Wakefield GPPro Hathaway Dinwiddie Construction Impark JLL Kilroy Realty Corporation LAZ Parking Marble West Perfection Services Inc. RiverRock Real Estate Group Securitas Security Services USA, Inc. Shorenstein Realty Services The Swig Company
Friends of BOMA Alliance Roofing Company Inc. CB2 Builders Incorporated eWaste Direct Field Construction McNevin – Bay Area Cleaning Specialists Rossi Builders, Inc. Swinerton The Lawson Roofing Co. Inc. Township Building Services, Inc. Wilson Meany Young Electric + Communications
Media Sponsors California Buildings News San Francisco Business Times The Registry *For 2019 sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com
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President’s Q&A (Continued from previous page)
As a commercial real estate manager, having such an array of materials, webinars, educational programs and workshops available to us is a great advantage and value in working on employee development and staff growth. In addition to a variety of prepared materials and courses, the BOMA SF educational events are topical and relevant, utilizing experts in the field to present. This gives attendees a chance to learn from and network with industry professionals. I was most recently involved in a panel discussion about zero waste and sustainability and it was humbling to work with a group of people with such a wealth of experience and knowledge all converging to produce and share information. I was a panelist representing the property management perspective and left with a much greater knowledge of the topic. I am sure the attendees did as well. (Read about the zero waste program on page 7.) Shorenstein has been a leader in sustainability, with its flagship Russ Building achieving LEED Platinum, truly impressive for an older building. How might other BOMA buildings be more sustainable as the City strives for zero waste?
Working for a company with such a commitment to the environment is energizing (excuse the pun). I personally have a strong commitment to sustainability; some might even say it is an obsession with recycling. Shorenstein encourages and promotes that passion for not only me, but also company-wide. Buildings are among the largest users of energy, producers of waste and destinations of transit, so it is imperative that buildings make an effort to positively affect the environment through conservation and reduction. Providing enthusiastic guidance, education and support to tenants, the occupants of the building, is the best way to address sustainability at the source. What activities do you enjoy in your leisure time? As can be surmised by my work experience, I have a passion for construction and building. My biggest achievement was building my house with my husband. There is always a project going on in the woodshop, around the house or in the yard, which keeps us active and occupied. Other than that, I always look forward to spending time with the dog and traveling whenever possible.
Whitfield is President of BOMA San Francisco and a General Manager for Shorenstein Realty Services.
4 Preparing Buildings to Be Resilient to Cyber & Other Threats Emergency Preparedness Seminar Keeps BOMA Members Informed About Best Practices “With everything from wildfires to mass shootings intrusion protection, what’s to stop a hacker from getting occurring, it’s never been more important for the into your building systems and ruining your building? The BOMA San Francisco Emergency Preparedness seminar explored these cyber threats and more. Committee to remain City Officials Stress strong,” said Committee Cooperation, Resiliency Chair Bonnie Kalbrosky in “Cybersecurity and loss of dispatch her introductory remarks at are our biggest risk,” said Michael this fall’s annual Emergency Cochrane, Assistant Deputy Chief Preparedness Seminar. of Homeland Security for the San “Educating members about Francisco Fire Department. “Thank how to react to emergencies you for offering us your buildings.” helps tenants and properties Having access to BOMA members’ stay safe.” high-rise buildings for training purposIn this increasingly highes has been invaluable. tech and interconnected The department has world, the demands on a done tabletops with physical building are many, BOMA members. with most of our systems not only automated, San Francisco Chief but also running on software located in the cloud, of Police Bill Scott Kalbrosky noted. Although our properties are warned “threats are made of steel, concrete and glass, the systems out there,” such as running these buildings are no longer manuearthquakes and terally hand-cranked valves or toggle switches. rorism in our iconic Even restroom fixtures often operate via sensor. places. He stressed that Security in most buildings is no longer a concierge resiliency can prevent pushing elevator buttons for tenants and guests. buildings and people Top photo: Seminar attendees share ideas. The various components of our building from being easy tarLower photo: SF Police Chief Bill Scott and management systems often run on dedicated gets. “Resiliency doesn’t SFPD Commander David Lazar. computers with their own IP address connected to happen by accident… the Internet. You may think that since it is your we build resiliency by training. One great thing about equipment and your computer, you have nothing San Francisco is its great network of people. Hats off to to worry about, but you do. this group and this community.” “Your building controls are vulnerable to a wide Cybersecurity Counter Measures range of risks from both physical and cyber threats. Sophisticated cyber actors who exploit vulnerabilities The City has “a robust program to counter cyber have developed the capabilities to disrupt or threatthreats,” noted Mary Ellen Carroll, Executive Director, en the delivery of essential services to your building San Francisco Department of Emergency Management. and tenants,” said Chris Tallerico, Division Manager, Cybersecurity is especially important since utility controls MNetworks. “The team at MNetworks has put together are cyber. A City emergency management group coora Unified Threat Management platform for protecting dinates with various departments. The private sector, buildings, one that employs a security fabric covering the especially the building community, is viewed as a critical entire network end to end, both wired and wireless.” partner with the City. We’ve all heard about companies whose computer Carroll recommended signing up for AlertSF, San systems were hacked. If this can happen to multi-billion Francisco’s emergency text message system. The system dollar companies employing advanced firewall and will send alerts and instructions to mobile subscribers (Continued on page 16)
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7 Zero Waste by 2020 Program Highlights Smart Reuse & Recycling Strategies Zero Waste by 2020 in San Francisco was the focus of their Recology bills based on their diversion of materials BOMA’s recent Knowledge & Network program, which to recycling and composting. took place at the rooftop terrace and meeting venue at w Whitfield, whose team manages the Russ Building for 221 Main Street, provided by Columbia Property Trust. Shorenstein, acknowledged that zero waste is not really Panelists shed light on where achievable in an office building, we are as a city with zero but said “it’s an aspirational waste and what’s achievable. goal.” His team uses the diverZach Brown with CBRE sion rate as a tool to discuss moderated the panel, which recycling with tenants and to included Dan Kling, Recology reward them for good practices. Golden Gate; Jack Macy, w Macy noted that there is not SF Environment; and Bill only residential and commerWhitfield, Shorenstein Realty cial waste, but also construcServices. tion materials and debris as a Event Sponsor Metro result of the building boom in Services’ founder, Michael San Francisco. Demographics Oddo, welcomed attendees and habits have also affected and described the company’s the diversion rate, which has Panelists Zach Brown, Jack Macy, Dan Kling and Bill Whitfield. commitment to sustainability leveled off. Newcomers to the since its inception: “We did what was considered green City need to be educated about waste. There is too much even before it was mainstream,” he said. Metro Services use of single-use items, was the first janitorial company to earn the San Francisco such as plastic utensils Green Certification. and drinking straws. Reusable food ware Some highlights shared by the panelists: (utensils and dishes) w Zero Waste by 2020 is a “very aspirational vision” is less expensive than for San Francisco, said Macy. City residents have been single-use. There are required to sort waste by recyclables, compostables and services that will pick landfill since 2009. The San Francisco Commission on up buildings’ dirty dishes the Environment came up with the year 2020 as an every night and clean “ambitious goal for doing all we can toward reducing them. waste.” San Francisco was the first city in the U.S. to w Whitfield said that claim such a goal; it has now become more common. the biggest step to get “Zero waste does not mean no discards,” he added. tenants on board for The focus is on reducing disposals. (See informative video a zero waste program about zero waste on the SF Environment’s home page at is teaching them about https://sfenvironment.org/zero-waste-by-2020.) composting: “It’s all w In 2010, the City had achieved an 80% diversion rate, about education and the best in the U.S. The additional 20% is challenging. having a member of In terms of reaching zero waste, “Recology has solutions your management team for 95% of materials,” said Kling. Recology, which is who is enthusiastic. responsible for picking up and handling waste in the City, San Francisco gives us has made significant upgrades to its sorting facilities. San the tools.” The Russ Francisco is the vanguard for composting and has the Building incorporates best infrastructure for handling composting. Commercial customers receive a diversion discount on the base rate of (Continued on page 10)
8 Principal Member Profile
Kevin Whalen, Vice President, Group Manager Jones Lang LaSalle Americas, Inc.
Jones Lang LaSalle Vice President Kevin Whalen enjoys working with his team to partner with clients, tenants, and vendors. “We bring a lot of pieces together every day to provide a safe, enjoyable, and productive workplace, and I thrive on that collaboration,” says Whalen. He is responsible for overseeing the management of assets in San Francisco’s South Financial District and North Waterfront submarkets. Whalen began his commercial real estate career in the Washington, D.C. area, working for a small family-owned business that provided maintenance services to commercial landlords. Networking helped him realize his goal of working in property management. “When moving out to San Francisco, I was fortunate to connect with Todd Robinette, as I had long admired JLL and was seeking a transition to property management. I could not be more grateful for the opportunities and mentorship I have received from Todd,” he notes. After serving on the BOMA San Francisco Board of Directors for a year, Whalen was elected Kevin Whalen treasurer at the recent annual meeting. “Serving on the board over the past year has been an incredibly enriching experience,” Whalen says. “I am energized by the great work BOMA does for our members and by the volume of talented people in our community who contribute their time. I am excited to continue my involvement as treasurer next year.” The end of the day finds Whalen “rushing out of the office to get home to spend time with our five-month-old son, Rowan.” He is looking forward to getting up to Tahoe this winter to snowboard and to taking Rowan on his first camping trip next spring.
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Associate Member Profile
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Peter Garza, Marketing Political Representative Northern California Carpenters Council
As marketing political representative for the Northern California Carpenters Council, Peter Garza is the point man at the City and County of San Francisco—from the mayor’s office to the planning commission and other agencies. “The Carpenters have always worked with City Hall on legislation and public policy that affect the building trades,” notes Garza. “My other responsibility is marketing the Carpenters Union to general contractors, developers and city planning departments.” “BOMA members are both our partners and customers,” Garza says. “All if not most buildings represented by BOMA were union built dating back to 1883 and have continued to use union general contractors to repair and maintain their buildings, including tenant improvement work.” At BOMA, Garza lends his unique perspective to the work of the Government Affairs Policy Advisory Committee (GAPAC). He also serves on the boards of SPUR San Francisco and the San Peter Garza Francisco Community Alliance for Jobs and Housing. Like many in the built environment, the Carpenters are passionate about training the next generation. “We participate in job/career fairs to attract young people and present the building trades as a viable option to a four-year degree without massive debt at the end. In addition, the union invests over $200 million dollars each year in training and educating both apprentices and journeyman Carpenters,” says Garza. For a diverse range of projects — high-rise buildings, hospitals, single- and multi-family homes, schools and universities, Carpenters are on the job from ground-breaking to handing over the keys to the owners at the end of the project. “But that is just the beginning,” Garza explains. “Union Carpenters will continue for the life of the building and be involved with the maintenance and tenant improvement.” During his leisure time, Garza enjoys golf, travel and watching his grandson grow. An adventure awaits: “Next spring my wife and I will be going to Hawaii for 10 days, but what she doesn’t know is the return passage will be on a container ship for a five-day sail from Hawaii to Oakland. Surprise! I guess I’ll be able to cross it off my bucket list.”
10 Special Sponsored Report
Stolen Tools?...Center Hardware’s Tool Replacement Program Combats Tool Theft from Vehicles and Jobsites Vehicle break-ins hit a historic high in San Francisco last year, reaching 31,122 reported incidents. “However, we know that many trucks had tools stolen right out of the back and people didn’t file a police report,” says Jamie Gentner, Chief Operating Officer of Center Hardware. “To ease our customers’ frustration over stolen tools, Center Hardware launched a first-of-its-kind Tool Replacement Program for the Bay Area and asked Milwaukee Tool to partner with us. The program was designed to combat theft at jobsites. If you or your company had tools stolen at the jobsite or from a work vehicle, this program is for you!” Here’s how it works: File a detailed report with tool inventory that was stolen with the appropriate agency (some like the San Francisco Police Department have online reporting tools) and contact Center Hardware with a copy of the report. They will work directly with you and Milwaukee to discount the replacement tools and get you back on the jobsite quickly.
“Missing tools do not have to be Milwaukee branded, but will be replaced with Milwaukee unless an alternate isn’t available,” adds Gentner. If Milwaukee does not manufacture a replacement, Center Hardware will work with the appropriate brand. The program will have access to the entire Milwaukee Catalog which is available through Center Hardware. Incidents will be reviewed on a case-by-case basis, and items eligible for replacement must be noted on the police report. Supplying San Francisco and beyond since 1880, Center Hardware is a family-owned independent full-service commercial and industrial hardware store located in the Dogpatch neighborhood of San Francisco. It proudly serves customers in all nine Bay Area counties. Since it began 1924, Milwaukee Tool is an industry-leading manufacturer of heavy-duty power tools, accessories and hand tools for professional users worldwide.
To learn more about Center Hardware’s Tool Replacement Program, contact Jamie Gentner: 415.861.1800 u jamie@centerhardware.com Visit: www.centerhardware.com
Zero Waste by 2020 (Continued from page 7)
something about zero waste into every show tenants what and how to recycle. lobby event, such as handing out Russ (Visit https://sfrecycles.org/signs.) Building mugs and utensils, to promote w A good resource from Recology is reuse versus single use. “Better At The Bin.” This initiative w Recology’s resources for commercial encourages everyone to sort discards corbuildings include stickers and posters rectly and reduce waste by making reusZERO WASTE able bottles and containers part of their about what and how to recycle. Its team can also do walk-throughs with property regular routine. (See https://www.recoloBY 2020 management staff. Kling recommended gy.com/recology_news/better-at-the-bin/ that recycling pods be set up throughw Waste diversion challenges include the out an office in lieu of trash cans at each desk. (Added need to keep recycling loads clean so that China and bonus: It also promotes wellness by making it necessary other countries will accept them. Tips for clean loads: for employees to move around.) There can be no plastic in composting, as farmers use it. w SF Environment offers a toolkit for office buildings No food or liquid can be in recycling bins, like half-full and a custom sign-making tool that buildings can use to bottles or cups.
11
We build homes in a factory… Then we install them in the field... It’s what we do….
Meet us on Facebook.com/NCCRC Meet our partners at factoryos.com and radurban.com or learn about Carpenter’s apprenticeship at CTCNC.org Photo by Chip Chipman
12 BOMA Codes Seminar (Continued from front page)
The “progressive” board may “view the business community as a bit of a deep pocket,” said Fishman. “We have to reach out to these people…They don’t understand real estate.” He said city government and voters have recently been heaping taxes on commercial real estate without understanding that landlords must pass through these burdens to tenants, creating a ripple effect on the entire economy. BOMA’s Government Affairs Policy Advisory Committee (GAPAC), staffed by Government and Industry Affairs Director John Bozeman, holds monthly meetings and is open to all members who want to participate in political action. Members can also make a difference in how their industry is regulated by attending the Codes and Regulations Committee.
Can Tall Buildings Be Made More Resilient to Earthquakes?
Strategy, which was released in October 2018. Learn more at: http://onesanfrancisco.org/resilient-sf. Contributing to the discussion were Brian Strong, San Francisco’s Chief Resilience Office and Director of the Office of Resilience and Capital Planning; Structural Engineer David Bonowitz; Stanford scholar Anne Hulsey; and John Hooper, Senior Principal and Director of Earthquake Engineering at Magnusson Klemencic Associates. Hooper’s Seattlebased company was involved in engineering many San Francisco buildings. Tom Hui, Director of the San Francisco Department of Building Inspections, and other City officials were also present and promised they would lean heavily upon BOMA and its members to produce plans and regulations that were realistic. “We will work closely with you,” Hui promised City and industry experts are working together the BOMA audience. to make tall buildings more resilient.
City officials and industry experts told the seminar audience they will work together to develop a master plan of appropriate regulations and practices to ensure that when the next major earthquake occurs, San Francisco’s office and apartments towers will be able to survive and return to business as quickly as possible. It is a daunting task, given that there are an estimated 749 buildings in San Francisco that are 240 feet high or greater. These buildings are comprised of various structures, old and new, and are built on differing qualities of soil and bedrock. Tall office buildings comprise 64% of the square footage and residential another 33%. Extensive failure and damage to one building, they said, could impact adjacent buildings and neighborhoods, so the resiliency plan must reflect the interdependence of all downtown structures. Sixteen public policy recommendations have been made, stemming from a study of 156 tall buildings in San Francisco: San Francisco’s Tall Buildings Safety
Floor Measurement Standards Are Changing…Again Architect Skip Soskin, LEED AP and Senior Associate at Huntsman, and Peter Stevenson, President and CEO of Stevenson Systems, said that BOMA’s measurements— updated every few years over a century — have melded with the International Property Measurement Standards group to produce commonly used guidance for the purpose of leasing and building purchase worldwide— important since so many properties are owned by foreign interests. The biggest new standards change increased measurement of floor space to recognize how common spaces have expanded so much with balconies and rooftop-designed spaces used more by modern workforces that work more collegially. This important change could result in increased profits for building owners and managers. More detailed information from the seminar is available by contacting John Bozeman at johnb@boma.com.
Thank you to the sponsors of the Codes Seminar: Able Services, Buchalter and the San Francisco Electrical Contractors Association. Want to get involved in codes issues? Learn more about the Codes and Regulations Committee at www.bomasf.org
13 Special Sponsored Report
San Francisco Needs to Overhaul Its Policy on Business Taxes By Manuel Fishman, Buchalter law firm If a City administration wanted to come up with a more byzantine way of taxing an industry that creates thousands of jobs in the City and is directly responsible for so many iconic symbols and incubators of a thriving economic downtown community, it would be hard pressed to duplicate the various taxes imposed on the commercial real estate industry in San Francisco. I count six major taxes that the City and County of San Francisco levies on the real estate industry—even without including the community benefit districts where owners of commercial buildings vote to tax themselves to augment City services to maintain our sidewalks, sweep our streets and respond to persistent violations of commonly accepted norms of behavior in front of our buildings. There are (1) the gross receipts tax on all receipts from real estate activities in San Francisco, (2) the payroll tax on qualifying compensation paid to employees of companies in the real estate industry, (3) the commercial rent tax on rents from leasing of commercial space in San Francisco, (4) the supplemental gross receipts tax adopted this past November on companies earning in excess of $50,000,000 in gross receipts in San Francisco, (5) the annual business registration tax that is linked to a company’s gross receipts in San Francisco, and (6) the San Francisco transfer tax imposed on the sale of properties in San Francisco (and the increased fees associated with the recordation of documents evidencing any real estate transaction). In one form or another, all of these taxes get passed through to the businesses that are the tenants who occupy the buildings, adding to the tax burden of these businesses and reducing the competitiveness of the City. Our industry needs to educate the City on basic real estate accounting principles and practices. Most expenses incurred by a landlord are not expenses attributable to the landlord’s business, but are expenses attributable to the tenant’s business, and do not affect the income of the landlord (for example, replacement of light bulbs and fixing malfunctioning doors, HVAC, etc. in a tenant’s premises; paying contractors for tenant improvements requested by a tenant;
providing for excess janitorial services; or paying utility bills directly attributable to a tenant’s consumption of electricity). The City handles the treatment of property taxes differently based on a test of whether the reimbursement is by means of a separately stated charge to a tenant. Why? Another inconsistency: for purposes of determining the gross receipts tax, rent from all tenants are included in gross receipts, but for purposes of the San Francisco commercial rent tax, rents received from nonprofits or governmental entities are excluded from the revenue on which the tax is included, as are rents from non-formula retail tenants. In addition, the tax is limited to gross receipts from the lease of commercial space in properties in San Francisco, including subleases—but not other gross receipts (so gross receipts from the construction of tenant improvements and certain building amenities may be exempt). In addition, the supplemental gross receipts tax ordinance specifically excludes from the definition of gross receipts any rents subject to the commercial rent tax. Banks and insurance companies are exempt from the gross receipts tax (and the commercial rent tax) if they own their buildings, and large corporate businesses with administrative services offices in San Francisco pay a reduced gross receipts tax, but must pay a supplemental gross receipts tax. And, of course, the Presidio pays no gross receipts tax on the rents it receives, although businesses in the Presidio pay such taxes. Confused? You should be. It creates uncertainty and inconsistent application depending on the nature of a building’s ownership, tenants and the services provided. The goal for BOMA San Francisco in 2019 is to energize its members around a restructuring of the various business taxes and to establish effective lines of communication with the administration to establish industry standard practices for recognition of revenue and expenses. The recent letters received by property managers and owners of commercial buildings from various City departments undermines such communication. Lastly, our industry needs to be at the table to ensure accountability for the hundreds of millions of dollars that our industry is contributing to the City for services that benefit all San Franciscans.
Manuel (“Manny”) Fishman is a former member of BOMA’s Board of Directors and former chair of the Government Affairs Committee. He serves as BOMA’s industry lead on interfacing with the City on the gross receipts and commercial rent taxes. He is a partner at the Buchalter law firm, and has an active practice in representing building owners and tenants in all aspects of real estate transactions. He may be reached at 415.227.0900 or mfishman@buchalter.com. Visit www.buchalter.com.
14 Annual Meeting (Continued from front page)
BOMA SF: 2018 Highlights Advocacy • Fought commercial rent taxes • Participated in Tall Buildings Seismic Study • Helped ease compliance of Accessible Building Entrance rules • Opposed mandatory hiring of refuse sorters • Supported quality candidates
Education & Professional Development • Achieved record attendance in Foundations of Real Estate Management Program • Hosted RPA Classes & Career Success Workshops • Informed members at the Annual Emergency Preparedness and Codes & Regulations Seminars
Events: Fun With a Purpose • Held a lively TOBY Gala • Attracted record-breaking crowd to BOMA at the BALLPARK • Held successful 64th Annual Elmer Johnson Golf Classic and Wine Tour • Informed members at Reverse Trade Show • Boosted sustainability knowledge at Fast-Pitch Sustainability Showcase • Hosted sold-out Young Professionals Boat Cruise
Debuted New Program Styles • Launched Knowledge & Network Series — Late afternoon programs followed by networking opportunities
Community Service • Supported CREATE through Gala and other activities • Collected toys for the SF Firefighters Toy Drive • Volunteered at SF-Marin Food Bank
Member Recognition • Featured members in BOMA SF Views profiles • Recognized outstanding building teams with TOBY Awards • Honored Members of the Year
and working with the City on the Accessible Business Entrance Program to extend the time-line to comply. In addition, BOMA is fighting a mandatory hire proposal that would require buildings to hire waste sorters. “Our members have a solid track record of advancing and leading sustainable, operational practices in buildings,” said Gille. “But there are better ways to improve sustainability.” Beyond advocacy, BOMA SF offered our members extensive opportunities for education and professional development opportunities. As Treasurer Christine Mann reported, the Foundations of Real Estate classes attracted a record number of students. “And the best part was the majority of these students were Young Professionals,” she said. Finally, we launched a new program format: a new series of programs called Knowledge & Network. These late-afternoon, short educational sessions are followed by networking.
Fun With a Purpose But there’s more to BOMA than advocacy and education! “Now you’ll hear about the fun — but fun with a purpose,” said President-Elect Bill Whitfield. “That purpose is to help you build and cultivate professional relationships that can support your company’s performance objectives and can lead to new business.” This year BOMA: held a lively TOBY Gala; had a record-breaking crowd for BOMA at the BALLPARK with terrific food, beverages and networking; held a successful 64th Annual Elmer Johnson Golf Classic and a fabulous wine tour; had a full-house at the Reverse Trade Show; boosted sustainability knowledge at the Energy & Environment Committee’s Fast Pitch Sustainability Showcase; and co-hosted with BOMA Oakland/East Bay a sold-out boat cruise for Young Professionals. BOMA SF also afforded members ways to serve our industry and our larger community, including supporting the CREATE program, donating to the SFFD Toy Drive and volunteer activities. Stay tuned for more ways to give back in 2019. Gille wrapped up the 2018 overview by sharing some of the efforts to recognize members. “We have a hard-working staff, and their efforts are complemented by a tremendous group of engaged volunteers.” Members are recognized in profiles in the quarterly BOMA San Francisco Views. And “we further highlight our members with TOBY awards and members of the year.” And at the TOBY Gala, we spotlighted building operational excellence in several property categories, with a new event format that provided better networking and interaction. Congratulations to these awardees: Engineer of the Year, Larry Newton; Associate Member of the Year, Jeff Palmer; Principal Member of the Year, Jim Collins; and Winner of the Raymond C. Naan Distinguished Service Award to Howard Fish. The program proceeded to the official business of electing new directors. (See article on next page.)
15 New Officers and Board Members Poised to Lead BOMA in the New Year BOMA SF principal members formally elected new officers and directors to lead our organization at the Annual Meeting, following the recommendations of the Leadership Development and Nominating Committee. Bill Whitfield of Shorenstein was re-elected to the board and will be your President in 2019 (see his Q&A and photo on page 2-3). Whitfield is completing his first term on the BOMA board. In addition, Christine Mann (Paramount Group) has been elected by the board to serve as PresidentElect, and Kevin Whalen (JLL) was elected to serve as Treasurer. Also re-elected to the board was Gail Ringer of Kilroy Realty. Ringer is just completing her first term on the board. Gail Ringer BOMA members also elected two new board members to serve our organization: Amber Miller of Boston Properties and Nicole DuBee of Columbia Property Trust. DuBee is Senior Property Manager for Columbia Property Trust. She has led BOMA San Francisco’s Careers in Real Estate Committee for several years, and she established
the mentoring programs that support our workforce development initiatives. With eighteen years of real estate management covering office, retail and residential sectors, she has a thorough knowledge of commercial real estate, including leasing, legal matters, construction, accounting, and tenant relations. Miller is Property Manager for Boston Properties. She has chaired BOMA San Francisco’s Young Professionals Committee and, most recently, served as vice chair of BOMA’s Education Committee.
Join us in congratulating these BOMA SF board members at upcoming events. Be sure to share your insights about our association with them.
Nicole DuBee
Amber Milller
On the Move: Jim Carbone Named President and CEO of The Swig Company Jim Carbone joined The Swig Company in 2018 as President and Chief Executive Officer and is responsible for all aspects of the company’s operations, asset management strategies and investment activities. He is also primarily responsible for building and maintaining relationships with financial partners and reporting to the Company’s Board of Directors and ownership group. Carbone has spent the last 38 years in multiple facets of commercial real estate including brokerage, development and institutional advisory, including the last 22 years as a partner at RREEF and its successor company, Deutsche Asset Management. Throughout his career, Carbone has demonstrated success in value creation, successful investment realization and strategic planning. He is a member of Lamda Alpha, ULI, NAIOP and ICSC, in addition to BOMA.
Send personnel changes or news for Members on the Move to Tory Brubaker at toryb@BOMA.com.
16 Emergency Preparedness (Continued from page 4)
following a natural disaster or major police, fire, or health emergencies. (See www.alertsf.org)
if there is a restraining order on a spouse. Southers advised to make no assumption about what should be reported to authorities. Southers emphasized the importance of taking all threats seriously. Finally, have a crisis communications plan in place that outlines how to handle public relations and media.
Security Expert Shares Intelligence on Threats
Security experts have learned that “in an emergency, you will do what you are trained to do,” said the keynote speaker, Dr. Erroll G. Southers, Tabletop Examines Possible Managing Director, Physical Security Digital Attacks & Procedures Keynote speaker Dr. Erroll Southers shares Management/Risk Assessment, TAL Attendees participated in a tabletop research on terrorism and other threats. Global, who helped develop the exercise to discuss how to react to national infrastructure protection plan with Department situations involving one or more digitally compromised of Homeland Security. Security and safety is a dynamic building systems. Moderator Jeff Ellis, CPP, Director of process, so planning and training should be continuous. Security and Life Safety of the Paramount Group, Inc., “Don’t have a report done (for emergencies) and put it said that “it’s important to promote cooperation between on the shelf,” he warned. He recommends that you disciplines...we don’t do a good job if we stay in our reverse engineer attacking your own building to assess silos.” Members shared best practices and suggestions for ways the structure and processes may be vulnerable. Are dealing with scenarios that evolved as new information you an easy or a hard target for a terrorist or other type became available. Some takeaways: The easiest systems of physical attack? to hack are AC, building management systems, lighting, Workplace violence, such as active shooting, by security and elevators. In an emergency, make certain that former or current disgruntled employees is yet anothalternative networks are set up. Develop a business contier concern for building managers. Domestic violence is nuity plan for your building in the event of a cyber attack. often a trigger. Employees should inform their employers Thank you to the Emergency Preparedness Seminar sponsors: Able Services, Allied Universal, Center Hardware, HARBRO Emergency Services & Restoration and MNetworks. Learn more about the Emergency Preparedness Committee at www.bomasf.org
Two Ways to Train Real Estate Teams in 2019 Foundations of Real Estate Management Foundations of Real Estate Management is a 5-module, 28-hour entry-level course, covering the fundamentals of commercial real estate administration, management, building systems, accounting and reporting, contract management, and more. This course is aimed at new-hires and is a refresher for those returning to operations. 2019 dates: February 2, 9, 16, 23 and March 2. For information: (415) 362-8567 x1125 or akibad@boma.com
2019 BOMI Courses March 27-29 June 19-21 April 24-26 May 15-17 Sept. 20 Oct. 23-25
Budgeting & Accounting Design Operations & Maintenance of Building Systems, Part 1 Asset Management Environmental Health & Safety Ethics is Good Business Design Operations & Maintenance of Building Systems, Part 2
For information: https://www.bomi.org
17 Special Sponsored Report
Revolutionary Laser Restoration Process Comes from Europe
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utdoor stone and concrete surfaces experience extreme wear and tear. In addition to foot and bicycle traffic, these surfaces are also subject At left: surface before laser to extreme weather conditions. While these materials are built to withstand restoration. extreme weather and traffic, the surfaces eventually wear out and need to be cleaned, re-surfaced or replaced. Baker’s Floor and Surface, which specializes in updating and improving outdoor stone surfaces, demonstrated the effectiveness of its stone restoration process on stairs at an outdoor plaza in San Francisco. (See photos.) “Stone restoration is used for a number of reasons,” says President Chris Baker. “It might be used for surface roughening. In this case, we engraved tiny craters or thin tracks on stone to improve slip resistance. Customers choose this process when they want to improve the safety of their property and help eliminate trip and fall hazards.” Restoration is also used to grind At right: Top tapedflat concrete floors, loosen old floor coatings such as paint and epoxy, off area shows the and create a smooth, even surface. The process comes from the European surface area that has been restored. art restoration world and can eliminate the cost of replacing materials that are still in good condition. After the initial restoration process, many customers choose to seal the stone. This step protects it from surface damage, corrosion, and staining and can also save time and money in the long run. Sealing blocks water from penetrating the surface, helps keep out salt, EPOXY ~ CONCRETE ~ METAL ~ STONE ~ WOOD chemicals, dirt, and plant growth, and extends the life of the stone. Businesses throughout the Bay Area turn to Baker’s for maintaining 650.652.9440 u chris@bakersfloorandsurface.com and enhancing metal, epoxy, concrete and stone surfaces. Do you have www.bakersfloorandsurface.com an upcoming project? Contact us to arrange a property visit.
Planning Your 2019 Marketing? Reach Your Targets in BOMA Views Like many BOMA associate members, you are probably planning your marketing and advertising strategy for 2019. There’s no better way to reach your prospects in BOMA than showcasing your company in BOMA Views. The quarterly print and digital publication offers a unique opportunity for you to influence decisionmakers who buy or influence purchases of products and services like yours. There are two ways you can tell your story to this targeted audience a display ad and a sponsored report.
A display ad showcases the benefits of your products or services. In addition, you may demonstrate the value you deliver through a sponsored report. Presented in an article format, these are very persuasive. Telling prospects how your company’s services or products benefit them—using statistics, photos, graphics, charts and testimonials—is an effective way to increase sales. You can also post these on your own website. BOMA Views is mailed to BOMA members and distributed at events. The digital version is emailed and hosted on the BOMA website. Digital ads will include a link to your website or any URL you provide. To learn more, contact Ellen Eason at 415.596.9466 or ellen@easoncom.com
18 Your commercial IPM/green/LEED specialists
BOMA SF Young Professionals joined with BOMA Oakland/East Bay Emerging Professionals for the 11th Anniversary Boat Cruise.
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Last Word (Continued from back page)
practices is but one example. Tackling our industry’s talent crunch with our workforce development initiative is another. Furthermore, opening up the opportunity to participate in BOMA to anyone employed at any member company, no matter their role or years in the business, has remarkably invigorated our organization. BOMA San Francisco will continue to serve its members’ interests by addressing their fundamental needs. But those needs will change. It is our responsibility to anticipate how they will change and to develop ways to meet them, even before our members realize they have some new challenge. Think of BOMA as that lighthouse whose beacon helps you navigate turbulent waters and unseen risks. And while we’re taking care of your fundamental needs, we’re always striving to be opportunistic and create something new for your benefit! Marc Intermaggio, CAE, is Executive Vice President of BOMA San Francisco and Executive Director/CEO, of the BOMA San Francisco Foundation whose mission is to recruit and train the industry’s next-generation workforce.
19 Mixing & Mingling Scenes from the 64th Annual Elmer Johnson Golf Tournament and Wine Tour.
From top right: Wine touring group enjoys the vineyards. Paul Faleschini and Eric McConn, both with Able Services. Thanks to our wine tour planning team: Valerie Lane, CBRE; Larklyn Milstein, Lewis & Taylor; Fred West, Marble West; and Linda Foster, CBRE. Erik Carlson, Able Services; and Marty Grienke, Conklin Bros. Carpets. Jacki Nolen Neves, Pyro-Comm Systems, Inc.; Henry Eason, California Buildings News; and Chenay Kilgore, Brookfield Property Partners.
About BOMA VIEWS Published quarterly by BOMA SF Associate Publisher: Tory Brubaker Editor: Henry Eason Managing Editor/Ad Director: Ellen Eason Eason Communications LLC Contact Ellen Eason at 415.596.9466 or ellen@easoncom.com
Thank You to Our Sponsors: Event Sponsor: Able Services, 2018 Platinum Corporate Sponsor 19th Hole Sponsor: HARBRO Emergency Services & Restoration And thanks to our members for their generous donations of prizes!
BOMA San Francisco 233 Sansome Street, 8th Floor San Francisco, CA 94104-2134
415.362.8567 www.bomasf.org
Printed on recycled paper.
The Last Word: Marc Intermaggio Built to Last, Committed to Lead:
BOMA is Your Rock of Stability in a Sea of Change BOMA San Francisco is 107 years old, and though we’ve been around for more than a century, we’re as strong and vibrant an association as ever. Why is that? Any organization (or any individual, for that matter) cannot expect to continue to survive, let alone to enjoy ongoing success and to thrive, simply by being around for a long time. While durability requires having a very strong foundation and continually taking care of the fundamentals, success is not guaranteed by that alone, and leadership surely isn’t. You need to be willing to stretch, take some risks, and change. BOMA has certainly done that. The Greek philosopher Heraclitus is credited with the statement that “the only constant is change itself.” As correct an observation as that may be, even Heraclitus Image: Adobe stock.
could not possibly have foreseen the magnitude and the velocity of change in our world today. The number of influences on our daily lives and business practices, and the speed and profound strength at which we are bombarded with these forces has increased exponentially since Heraclitus’ time (575 to 435 BC). BOMA San Francisco has remained relevant to its members and the industry we serve because we have remained faithful to our organizing principles and mission—enhancing the commercial real estate industry through advocacy, professional development, and knowledge-sharing. Our driving principles reflect our commitment to support those who own, operate and service commercial buildings and to enhance and preserve the value of our members’ commercial property assets and related businesses. While we continue to adhere to our principles and carry out our mission, we are always looking for new ways to deliver meaningful programs, by studying leading edge performers and developing new “best practices,” and where possible, by taking vanguard actions that lead change, and deliver new programs, products, and services (e.g. new member benefits and enhanced member value). How we’ve led on environmental stewardship and sustainable operating (Continued on page 18)