September 2011

SEPT2011 • VOL 19 • ISSUE 3

THE COMMERCIAL REAL ESTATE NETWORK

network the COMMERCIAL REAL ESTATE

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PARKLAND HOSPITAL

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AN AMAZING BUILDING

THE 28 WONDERS

OF THE WORLD P. 40

THE P. 30 CLIDE AWARDS

ON TARGET: P. 18 DESIGNATION DRIVERS

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BIGGER IS BETTER

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28 WONDERS OF THE WORLD ISSUE 3 •

VOL 19 • SEPT2011

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THE NETWORK | SEPT2011

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SINCE 2002

a nontraditional approach to business collections

Time to collect ACCOUNTS RECEIVABLE – TRACKING THEM IS GOOD. COLLECTING THEM IS BETTER. Business-to-business debts require special, focused expertise and finesse… and the selection of your commercial collection service is an important decision. It revolves around Service, Trust and Recovery.

Rates are important, and recovery is the objective (the bottom line) … but there’s more to it.

ARSENAL BUSINESS COLLECTIONS

The company you choose will be handling your money, talking to your customers, and representing you in the marketplace. You want your money as soon as possible – but you don’t want to lose clients.

At ABC, you’re never out-of-pocket for our services. We collect (at prearranged terms) and when – and only when – we succeed (i.e., once we collect money owed to you), do we get paid. There is no fee UNLESS and UNTIL we collect.

Our payment is contingent upon your recovery – so our success is integrally tied to yours.

thearsenalcompanies.com

682.224.5855

As a privately owned company, we make decisions based on what is best for our clients. Our focus is exclusively on improving your bottom line, and we have the knowledge and experience to deliver exceptional results.

G GREEN

BLUEPRINT

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SEPT2011 • VOL 19 • ISSUE 3

DEPARTMENTS GO GREEN

GENERAL ASSEMBLY

13 Scholarship Award • BOMI Graduates 8 LEED at Home

14 TOBY Awards

The why, what and how of it.

The Southwest Region has only one winner in the prestigious international competition.

9 Sustainable Showcase 2011 Energy Star Certification for Buildings and Plants

10 The Dallas Convention Center: LEED Silver EB Dallas takes GREEN seriously.

11 The Omni Dallas Hotel: LEED Silver NC

26 How to Find a Good Medical Office Building Alex Johnson guides us through the analytical process.

28 The Fear Factor is Gone… God Bless Texas James Hancock reports on an optimistic review of the market.

16 LEED Certification and the Appraisal Process 29 Dallas and Fort Worth Chapter News

12 Cooling System Filtration The benefits and the savings.

17 IREM News 18 On Target: Designation Drivers

39

Jessica Warrior explains the routes to and values of becoming a CPM, RPA and/ or CCIM.

32 SMU Cox and CREW Dallas Launch Educational Program • Association Events

21 Technology and the Workplace of the Future A special event.

34 At the Helm Our newest affiliate has a new CEO

35 Brad Mayne receives Legacy Award 22 Tour of Homes 23 Design Awards • Dallas Center for Architecture Upcoming Events

ALSO IN THE NEWS 30 The 2011 CLIDE Awards Recipients Recognized NTCOG announces the winners of its biennial program.

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24 Data DIGest 25 The Construction Education Foundation, TEXO’s Training Arm

39 The Trinity Trust Hosts Mayor Rawlings

SEPT2011 • VOL 19 • ISSUE 3

10 22 14 IN THE WORKPLACE

DIVERSIONS

52 Professionals on the Move • Take a Vacation: Create High Performance

20 Twisted Thinking 24 Are you Smarter than a Commercial Real Estate Professional?

38 Medical Daffynitions: When You’re In The Hospittle 42 Love George; Hate Washington 49 Factoids 57 More (Real) Head(less) Lines 63 Women and Money 63 OneLiner 64 Foreign Misstatements

54 Understanding the Safe Harbor Provisions of the ADA Wally Tirado offers useful insights.

FEATURES 40 28 Wonders of the World Yes – 28! They are all pictured here - and they are all amazing!

42 The Bridge The award-winning structure quietly provides a critical service to the community.

44 Amazing Buildings: Envisioning the new Parkland Hospital Right in our own back yard.

48 Herstory: Jesse Chisholm… Trailblazer

PRODUCT SHOWCASE 56 XtremeMac wireless wall charger, Smartfish Mouse, Scosche switchback, Scosche freeKEY, Handstand for iPad, Powerskin

IN EVERY ISSUE 5 Editor’s Note/Inbox 36 CBRE Marketview 38 NEW TXStats 50 In The Loop 55 NEW The Consignment Page

Great ‘finds’ through our network of readers.

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58 Staycations 60 What’s in a Name?

61 The Links Directory 64 Back Page Inside Back Cover

Match the Nickname to the City Last Issue’s Contest Answers and Winners

A P R CCIM CPM

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18 SEPT2011 | THE NETWORK

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EDITOR’S NOTE ANDREW FELDER

WHAT’S NEW? WELCOME IAVM

We are pleased to welcome the International Association of Venue Managers as our newest affiliate (see pages 34-35). That means you’ll see the IAVM at crest EX PO along with all of our other affiliates (see page 6) and you can read about cross-sector events of interest on these pages.

IS BIGGER BETTER?

We’ve increased the dimensions of the network (from 8.5 x 11 to 9 x 12). Bigger may not always be betfree ter, but it certainly stands out more.

(Ahem!) Tell us what you think.

AND now there’s an app for this!!!!!!

That’s right! You can get the FREE app from iTunes (just search for the network) and read your commercial real estate magazine when you want, where you want. (An android app is under development.) Now you can share the pictures with people without having to have your copy in hand.

the network v

Want to tick off both the US AND Israel? There’s an app for that – iRAN.

JUST BECAUSE WE CAN

I remember reading (in MAD Magazine) the humor that vertically ‘lined’ the gutter (the white space between the two pages of a spread where the publication is bound together):“If Tuesday Weld married Frederick March III, she’d be Tuesday March the third.” (Of course, those were names that everyone knew back then.

Today, many people have told us that they love and look forward to the DIVERSI NS in every issue. Interesting facts – and humor! So we’ve de-

aafelder@crestpublicationsgroup.com Executive Editor & Publisher

cided to expand upon that and give you even more reason to turn every page. Look at the words running up the page to your left (as you read this).

You will see snippets like this throughout the magazine.

TXSTATS

A new feature – by the numbers (page 38).

THE CONSIGNMENT SHOP

Just check it out (page 55). It’s self-explanatory.

FABULOUS COVERS

With every issue, we strive to come up with a cover which is eye-catching and memorable. In June, we featured Dallas Skyline by Susan Rudat, a professional illustrator from Texas who now lives in Massachusetts. On this cover, we are proud to have Fort Worth Skyline 2010 by world-renowned artist Alexandra Nechita (see page 6). It doesn’t get any better than this!

CARING BRIDGE

Joe Marchant, recently retired long-time administrative overseer of all things BOMA, and a respected leader in the real estate industry nationwide, has been fighting a courageous health battle over the last few months. Learn more and reach out to Joe at www.caringbridge.org/visit/joemarchant/en. A dear and trusted friend to all who know him, we’re sure he would welcome your words of support. We look forward to Joe’s being back in The Catbird Seat (his column for this publication) very soon.

Keep Networking,

Andy

INBOX

RETRO-PERSPECTIVE — THE “GREEN” THING

I

n the line at the store, a young cashier told an older woman that she should bring her own grocery bags because plastic bags weren’t good for the environment. The woman apologized to him and explained, “Sorry, we didn’t have the “green” thing back in my day.”

The clerk responded, “That’s our problem today. Your generation did not care enough to save our environment.”

Maybe the older woman shouldn’t have been so quick to apologize. We returned milk bottles, soda bottles and beer bottles to the store. The store sent them back to the plant to be washed and sterilized and refilled, so it could use the same bottles over and over again. So they actually were recycled.

We walked up stairs, because we didn’t have an electricity-powered escalator in every store and office building. We walked to the grocery store and didn’t climb into a 300-horsepower machine to go two blocks. Back then, we washed the baby’s diapers because we didn’t have the throw-away kind. We dried clothes

on a line, not in an energy-gobbling machine burning up 220 volts—wind and solar power really did dry the clothes. Kids got hand-medown clothes from their brothers or sisters, not always brand-new clothing.

But she was right. We didn’t have the “green” thing in our day.

We had one TV, or radio, in the house— not a TV in every room. And the TV had a small screen the size of a handkerchief, not the state of Montana. In the kitchen, we blended and stirred by hand because we didn’t have electric-powered machines to do everything for us. When we packaged a fragile item to send in the mail, we used a wadded up old newspaper to cushion it, not Styrofoam or plastic bubble wrap. We didn’t fire up an engine and burn gasoline just to cut the lawn.

We used a push mower that ran on human power. Imagine that! We got exercise from working so we didn’t need to go to a health club to run on treadmills that operate on electricity.

But she’s right; we didn’t have the “green” thing back then.

We drank from a fountain or glass when we were thirsty instead of a Styrofoam cup or plastic bottle every time we had a drink of water. We refilled writing pens with ink instead of buying a new pen, and we replaced the razor blades in a razor instead of throwing away the whole razor just because the blade got dull.

People took the streetcar or a bus and kids rode their bikes to school or walked instead of turning their moms into a 24-hour taxi service. We had one electrical outlet in a room, not an entire bank of sockets to power a dozen appliances.

And we didn’t need a computerized gadget to receive a signal beamed from satellites 2,000 miles out in space in order to find the nearest pizza joint.

Isn’t it sad the current generation laments how wasteful we old folks were just because we didn’t have the “green” thing back then?

Please consider publishing this for the benefit of selfish old people who need a lesson in conservation from some smartass young person.

— DJ (Sachse, TX) SEPT2011 | THE NETWORK

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network affiliate associations

network the COMMERCIAL REAL ESTATE

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American Institute of Architects (AIA) Dallas www.aiadallas.org • 214.742.3242 1909 Woodall Rodgers Freeway, Suite 100 Dallas, TX 75201 American Society of Interior Designers (ASID) www.asidtx.org • 214.748.1541 1444 Oak Lawn Avenue, Suite 501 Dallas, TX 75207 The Appraisal Institute www.ainorthtexas.org • 972.233.2244 Building Owners and Managers Association (BOMA) Dallas www.bomadallas.org • 214.744.9020 1717 Main Street, Suite 2440 Dallas, TX 75201 Certified Commercial Investment Member (CCIM) www.ntccim.com • 972.233.9107x215 14070 Proton Road, Suite 100 LB9 Dallas, TX 75244 CREW Dallas (CREW) www.crew-dallas.org • 214.890.6490 14785 Preston Road, Suite 550 Dallas, TX 75254 International Association of Venue Managers www.iavm.org • 972.906.7441 635 Fritz Drive Coppell, TX 75019 International Interior Design Association (IIDA) Texas/Oklahoma Chapter www.iida-tx-ok.org • 214.880.1511 1909 Woodall Rodgers Freeway, Suite 100 Dallas, Texas 75201 The Institute of Real Estate Management (IREM) Dallas www.irem.dallas.org • 214.386.2181 13601 Preston Road, Suite 715E Dallas, TX 75240 The Institute of Real Estate Management (IREM) Fort Worth www.fortworthirem.org • 817.259.3549 National Association of Women in Construction (NAWIC) Fort Worth www.nawic.fw.org P.O. Box 162315 Fort Worth, TX 76161.2898 National Association of Women in Construction (NAWIC) Dallas www.nawic-dallas.org North Texas Association of Energy Engineers www.ntaee.org • 214.532.1132 North Texas Association of Facilities Engineers www.northtexasafe.org TEXO (Associated General Contractors of America) www.texoassociation.org • 972.647.0697 11101 N. Stemmons Freeway Dallas, TX 75229 USGBC www.northtexasgreencouncil.org • 214.571.9244 1909 Woodall Rodgers Freeway, Suite 100 Dallas, TX 75201

get your groupnetworked

682.224.5855

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THE NETWORK | SEPT2011

EXECUTIVE EXECUTIVE EDITOR Andrew A. Felder aafelder@crestpublicationsgroup.com ASSISTANT EDITOR Nick Felder nick@crestpublicationsgroup.com CREATIVE DIRECTOR Renée Higgins renee@biglittlecreative.com

ASSOCIATE EDITORS PEOPLE ON THE MOVE Julie Brand Lynch HERSTORY Rose-Mary Rumbley AMAZING BUILDINGS Julien Meyrat ACCESSIBILITY Wally Tirado STAYCATIONS Candace Rozell SUSTAINABILITY Jonathan Kraatz

CONTRIBUTING WRITERS James Hancock Alex Johnson Julie Branch Lynch Michael McDonald Jill MelanÇon Julien Meyrat John Promise James Rohrig Rose-Mary Rumbley Rob Seeds Kenneth D. Simonson Wally Tirado

A quarterly publication of CREST Publications Group 2537 Lubbock Avenue Fort Worth, TX 76109 682.224.5855 www.crestpublicationsgroup.com

PUBLICATION ADVISORY BOARD AIA DALLAS Elly Armistead-Beyhle | Marketing BOMA DALLAS Teresa Foster, CAE | Executive Vice President Michelle Lynn | Publication Liaison CCIM Becky Tiemann | Chapter Administrator IREM Kristin Hiett | Executive Director TEXO Dorothy Shaw | Executive Vice President USGBC Jonathan Kraatz | Interim Executive Director

CIRCULATION Over 16,000 commercial real estate professionals in the DFW Metroplex including the memberships of BOMA, AIA, TEXO, IREM, NAWIC, SIOR, CREW, NAIOP, TAPPA, ASID, AFE, USGBC, IIDA, IAVM, CCIM, NEWH, NTAEE, AI and NTAFE.. Available also by subscription - $15.95 per year. Contact editor@ crestpublicationsgroup.com

The Forest Stewardship Council (FSC) is an international network that promotes responsible management of the world’s forests. FSC certification is globally recognized as being the most credible and strongest system for ensuring well-managed forests. FSC standards are the only standards endorsed by leading environmental groups including Rainforest Alliance, WWF and ForestEthics. The use of this symbol means requires that the forest, paper producer, paper merchant and printer must all be FSC certified.

ON THE COVER Fort Worth Skyline 2010, a mixed media on paper by famed artist Alexandra Nechita.

Her first show was in 1994; by age twelve, she was painting at a level comparable to such greats as Picasso and Matisse. In Whoopi Goldberg’s opinion, “The thumb print of the Great One is on her.” Her career has elevated to a level unimaginable for all but the truest of art masters. Today (at 26), she has become one of the most recognized artists in the world. Her exhibits attract capacity crowds and her paintings sell out to hordes of eager collectors as quickly as she creates them. Her work is available through Milan Gallery of fine art. Go to www.milangallery.com (817-3384278) for many originals and reproductions by Nechita.

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Copyright © 2011 The CREST Publications Group, 2537 Lubbock Avenue Fort Worth, TX 76109. All rights reserved. All information contained herein (including, but not limited to, articles, opinions, reviews, text, photographs, images, illustrations, trademarks, service marks and the like (collectively the “Content”) is protected by copyright and other intellectual property laws. The Content is the property of The CREST Publications Group and/or third party licensors. You may not modify, publish, transmit, transfer, sell, reproduce, create derivative work from, distribute, republish, display, or in any way commercially exploit any of the Content or infringe upon trademarks or service marks contained in such Content. GENERAL DISCLAIMER AND LIMITATION OF LIABILITY: The Network magazine contains facts, views, opinions, statements and recommendations of third party individuals and organizations. The publisher does not represent or endorse the accuracy or reliability of any advice, opinion, statement or other information displayed and any reliance upon same shall be at the viewer’s sole risk. The publisher makes no guarantees or representations as to, and shall have no liability for, any content delivered by any third party, including, without limitation, the accuracy, subject matter, quality or timeliness of any Content. Change of address: Mail to address above or email editor@crestpublicationsgroup.com.

SEPT2011 | THE NETWORK

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G GREEN

LEED AT HOME

W

hile LEED (Leadership in Energy and Environmental Design) is an internationally recognized green building certification program, many people may not know that LEED can be applied to where we live as well as where we work (and play) and can have a myriad of benefits for our families, our environmental footprint, and our wallets.

The LEED for Homes rating system is applicable to single family and multifamily homes and is intended for both market-rate and affordable housing. It measures a home’s performance based on eight categories: site selection, water efficiency, materials and resources, energy and atmosphere, indoor environmental quality, location and linkages, awareness and education, and innovation.

LEED certification recognizes and celebrates leadership in green homebuilding, and allows a builder/developer to clearly differentiate their work. For the homebuyer or tenant, LEED is like the nutrition label that demonstrates in measurable terms that a home incorporates efficient features and techniques, and that the final product has been third party-verified and performance tested.

WHAT IS THE DIFFERENCE BETWEEN LEED FOR HOMES AND OTHER GREEN HOME PROGRAMS?

As a national, third-party certification system for green homebuilding, LEED for Homes is designed to recognize leadership, so the program is rigorous and focused on measurable results.

The program features support for builders and developers who choose to work within the rating system, including Reference Guides, instructor-led workshops and online courses.

There are many other highly regarded local and regional green home building programs in the U.S. Each of these programs is unique, with its own specifications and requirements. By reviewing the checklists for LEED and other available green programs, you can choose the rating system that works best for your goals.

HOW DO I PARTICIPATE IN THE LEED FOR HOMES CERTIFICATION PROGRAM? 1. Connect with the LEED for Homes Provider of your choice. They’ll walk through the checklist with you so that you can see how LEED for Homes applies to your project.

Jonathan Kraatz, Interim Director of the North Texas USGBC

2. Set your project goals. LEED is a flexible system, so you’ll need to choose which credits are aligned with your project’s goals. Your goals should include which level of LEED certification – Certified, Silver, Gold or Platinum – you’re aiming for.

3. Register your project. You can register your project online through the USGBC web site. Registration fees apply.

4. Document and verify. Working with your Provider, a Green Rater will complete onsite inspections of the project to document that you’ve met the LEED requirements.

5. Certify. Once your project is complete and your documentation is ready, your Provider will submit your final LEED checklist to USGBC for certification. Following a rigorous review, your project will be awarded its final certification.

6. Celebrate! We want to help you to celebrate your achievement with a certification packet you can share with your homebuyer and a marketing toolkit to shares the good news with your community.

HOW MUCH DOES IT COST TO PARTICIPATE IN LEED FOR HOMES?

USGBC has worked hard to keep registration and certification fees as low as possible for participation in the LEED for Homes program, with the combined fees as low as $375 (multifamily buildings have a different fee schedule). More information on these fees can be found at www. leedforhomes.org. LEED for Homes also requires completion of on-site inspections prior to certification, so additional Provider and Green Rater verification costs will apply and are based on market prices. Please consult the Provider of your choice for applicable rates and fees.

NEED MORE INFORMATION?

Visit www.usgbc.org/homes or email Homes@ usgbc.org, or call (800) 795-1747. •

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Zip codes were introduced by the US Postal Services in 1963. ZIP stands for ‘Zone Improvement Plan’.

WHY SHOULD I BUILD LEED-CERTIFIED HOMES AND MULTIFAMILY BUILDINGS?

photo by Phillip Shinoda, GreenSourceDFW

SUSTAINABLE SHOWCASE 2011

T

he USGBC North Texas Chapter, the CSI Dallas Chapter, and Dallas AIA’s Committee on the Environment hosted the fourth annual Sustainable Showcase July 14-16 to highlight the latest green building products, technologies and knowledge for commercial and residential use. For this year’s event, Granite Properties provided a venue at 1717 McKinney, which allowed the more than 300 attendees an opportunity to experience this new commercial property in downtown Dallas.

photos by Jonathan Kraatz

Attendees had the option of participating in several tours including hard-hat tours of the Perot Museum of Nature and Science (designed by Thom Mayne) and the Dallas Performing Arts Center.

A new feature of at this year’s event was the GBCI Workzone, an opportunity of LEED Project Teams to meet with LEED credit reviewers to discuss challenges and opportunities with their current projects.

(L-R) Kirby Davis, Laticrete (and president-elect of CSI, Dee Cassell, president of ReSpin, LLC; Chris Mundell, HKS (and president of CSI)

Susan Foster, Parex USA

Thursday’s keynote address by renowned architect Thom Mayne focused on how architects can shape the behavior of those who interact with the spaces that they design and how careful influences on the use of energy and natural resources can positively impact human lives.

Howard “the Dirt Doctor” Garrett highlighted day two of the conference with real-world applications of organic gardening practices in commercial or large-scale settings, citing projects from major corporate headquarters to championship-level golf courses in North Texas.

IMPORTANT NEWS ABOUT ENERGY STAR CERTIFICATION FOR BUILDINGS AND PLANTS In light of requests for more versatile recognition options for ENERGY STAR certified buildings and the resource requirements associated with producing and shipping the ENERGY STAR plaque, the program has switched to a new ENERGY STAR certified building decal for all applications electronically submitted on or after June 1, 2011. EPA will offer these new, professional-quality decals that are better suited and more adaptable for the many different types of buildings in its partners’ portfolios.

EPA will no longer provide the ENERGY STAR plaque, but is working with its supplier to explore the possibility of enabling partners to purchase plaques on their own.

The new ENERGY STAR certified building decal carries the important ENERGY STAR certification mark, recognized by more than 80% of Americans as the national symbol for superior energy performance, along with text clearly indicating that the building is an “ENERGY STAR Certified Building.” Recipients will have their choice of complimentary decal: either the classic blue-and-white ENERGY STAR logo or an elegant “etched-look” decal, which mimics the look of etched glass once applied. Recipients can also opt to receive a certificate of achievement only. For further information, email buildings@energystar.gov.

SEPT2011 | THE NETWORK

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G GREEN

THE DALLAS CONVENTION CENTER LEED SILVER EB

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he Dallas Convention Center (new home of the second annual crestEXPO on March 30, 2012) is a 2.2 million sq. ft. facility that has demonstrated a constant commitment to service, technical and culinary excellence, as well as environmental sustainability. It is a LEED® EB (Existing Building) Silver Certified facility, having been awarded that status by the U.S. Green Building Council (USGBC) and verified by the Green Building Certification Institute (GBCI) in 2010.

LEED EB addresses the operation and working of existing buildings.

Upgrading an existing building to “green standards” is often more difficult than designing and building a new building to operate in a way that it has less impact on the environment. The rating system helps building personnel measure operations, improvements and maintenance on a consistent scale with the goal of maximizing operation efficiency while minimizing environmental impacts. Building upgrades and improvements were combined with an aggressive adjustment to the operational procedures to earn the credits leading to the certification.

The Convention Center’s green building programs and features include: alternative transportation options, energy efficient lighting with reduced mercury content; environmentally sensitive cleaning products and practices; reduction of indoor potable water through low-flow fixtures

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THE NETWORK | SEPT2011

and the replacement of a cooling tower; and a comprehensive recycling program. The Center has achieved a remarkable 58.7% saving on electricity consumption and 55.6% savings on the consumption of natural gas since the start of the project.

Interim Director of the Convention Center Al Rojas said “The LEED Certification exemplifies our commitment to providing the highest quality space for our customers and employees. We understand the importance of these efforts which not only lower costs but improve the Al Rojas environment for generations to come.”

ABOUT THE GREEN DALLAS INITIATIVE

The City of Dallas’s green initiative is aimed at environmental responsibility and encourages both public and private sector involvement.

To find out more about how the City of Dallas is an environmental leader and what residents can do to ‘build a greener Dallas,’ visit the City’s green web site www.GreenDallas.net. Click on “Green Buildings” to find out about more about Dallas’s Green Building policies. For more information on the green features of the Dallas Convention Center, visit www.dallasconventioncenter.com.

THE OMNI DALLAS HOTEL LEED SILVER NC

T

he Omni Dallas Hotel, located in the heart of downtown Dallas, has outlined a sustainability plan that will lead to the property’s LEED Silver New Construction (NC) certification upon opening.

“Earning the LEED Silver New Construction status will be a tremendous accomplishment…” said Nils Stolzlechner, general manager of the Omni Dallas Hotel. “These efforts will continue upon the hotel’s opening to provide an eco-friendly environment for our associates, guests and the community.”

Scheduled to open in early 2012, the property has employed a recycling program for all construction waste. It is also utilizing recycled and regional materials throughout the construction process. For example, the interior design for the hotel’s three-meal-a-day restaurant, Texas Spice, includes reclaimed timber and brick, and certified wood is being used for 50% of the wood-based material to encourage environmentally responsible forest management.

The hotel’s design will reduce the amount of storm water run-off with a 25,000-gallon cistern to capture water as a means of irrigation in lieu of city water, limiting the use of potable water and other resources. The northwest

corner of the property will feature a rain garden designed to help with run-off.

The water softener system is tied to the cooling tower, which will improve the efficiency of the system and reduce water and chemical usage.

Upon completion, the property will have numerous bike racks and onsite changing rooms. All of the 720 parking spaces provided will be covered, which will limit the heat island effect.

Other sustainable efforts include: • Roof materials feature solar reflective indexes to help with heat island effects.

• Systems for lighting and thermal control. Examples include guest rooms equipped with a key switching system where guests put the room key into a slot to turn on lights and have control of the heating, ventilating and air conditioning (HVAC) system. When removed, the HVAC system sets back to a preset temperature and the lights automatically shut off.

• The indoor air quality management plan will reduce indoor air quality (IAQ) problems resulting from construction, and the project is using low volatile organic compounds (VOC) products such as paints, adhesives and carpeting. •

SEPT2011 | THE NETWORK

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G GREEN FEATURE MICHAEL MCDONALD

michael.mcdonald@nch.com

Multimedia filter

COOLING SYSTEM FILTRATION

I

n commercial buildings, the HVAC system represents a major capital investment and is generally the largest consumer of electricity.

In a typical office building, approximately 60% of total utility cost is spent operating the HVAC system, so an effective maintenance program is required to maximize the service life of HVAC systems and keep operating costs low.

A facility’s water treatment program is a critical part of the overall preventative maintenance program. Although filtration is often overlooked in the maintenance equation, it is an important adjunct to the water treatment program for both cooling towers and closed loops and provides many overall benefits for the facility.

The most obvious benefit of filtration is aesthetic. A filter removes visible, suspended and settled solids giving the water a clearer and cleaner appearance. Of greater economic benefit, though not as visible, is the effect cleaner water has on the water treatment program.

Filters provide cost-saving benefits including: • Improved heat transfer due to reduced deposition and fouling • Reduced potential for under-deposit corrosion • Improved biological control • Improved chemical performance • Reduced mechanical wear The main energy consumers in a water-cooled air conditioning system are the chiller, recirculating pumps, tower fans and air handler fans. Deposition (fouling) on heat exchange surfaces reduces transfer and results in higher energy costs. Some deposits are more insulating than others and have a greater impact on energy requirements. For example, calcium carbonate scale deposits transfer heat over four times better than biofilm deposits (bacterial slime). As a result, slime increases head pressure and energy requirements and will shut down a chiller much faster than normal scale. An effective filter greatly reduces the tendency for deposits and fouling and makes it easier to control microbiological growth.

SUSPENDED SOLIDS CAUSE PROBLEMS

Suspended solids are present in both open and closed recirculating water systems. They tend to settle in piping in areas of low elevation 12

THE NETWORK | SEPT2011

CONDENSER DEPOSIT THICKNESS VS. INCREASED ELECTRICITY COST DEPOSIT THICKNESS, INCHES

FOULING FACTOR

PERCENT EFFICIENCY LOSS

INCREASED ANNUAL ELECTRICAL COST DUE TO SCALE DEPOSIT

0 0.01 0.02 0.03 0.04 0.05

0.0000 0.0008 0.0017 0.0025 0.0033 0.0042

0 9 18 27 36 45

$0 $19,790 $39,580 $59,365 $79,155 $98,945

Based on electricity cost of $0.07 per KWH, chiller efficiency of 0.65 KW/ton, power factor of 0.91.

Scale assumed to have thermal conductivity of 1.0 BTU/(hr)(SqFt)( oF)

and areas of low flow, such as a cooling tower basin. This provides a place for bacteria to attach and grow and increases the potential for underdeposit corrosion and microbiologically induced corrosion (MIC). Free-moving solids can be abrasive and cause excessive wear of pump seals and valves. Under high velocity conditions, solids can cause erosion of system piping, particularly with soft metals like copper. The presence of suspended solids also increases the potential for fouling key water flow passages, such as those on the hot deck of a cooling tower or the channels in plate and frame heat exchangers.

The physical properties of size, shape, hardness and malleability of particulate matter contribute to the types of problems that may be experienced and determine the type of filter selected. Most filters placed in HVAC systems are designed to remove particles smaller than the human eye can detect, which is about 40 microns.

Individually, particles less than 40 microns are undetectable to most viewers, but collectively they can produce effects that are visible, such as discoloration or cloudiness, known as turbidity.

PARTICLE

MICRONS

Sand Pollens Saw Dust Mold Spores Bacteria

100 - 2,000 10 - 1,000 30 - 600 10 - 30 3

CHOOSING A FILTER

There are many types of filters available, with granular media filters (sand), bag filters and cartridge filters being most common.

The following factors should be considered when choosing a filter: • Type of application - open or closed recirculating systems • Total system volume • Flow rate • Pressure requirements • Particle size • Total solids loading • Available maintenance staff

ECONOMICS

The above table shows the potential economic impact of deposits on a 500-ton chiller load running 24 hours a day. Actual increased energy use depends on compressor type, efficiency rating, actual operating head pressure and percent operating load.

Coupled with a proper water treatment program, effective filtration reduces the potential for adverse effects due to deposits, fouling and microbiological growth simultaneously. When looking at the total cost of operation for a facility’s HVAC system, even an expensive filter system can have significant payback in terms of improved results and lower operating costs. •

Always remember that you’re unique -- just like everyone else.

Cooling tower with multimedia filter system

Sample water before & after filtration

Michael McDonald is a chemist with over 13 years experience in water treatment.

GENERAL ASSEMBLY

SCHOLARSHIP AWARD

(L-R) Dallas BOMA President Mark Wilshire, BOMI Vice Chair Greg Grainger, Silvia Golisano, BOMI President and CEO Jeff Horn

Established in the name of former BOMA Dallas Executive Vice President Joe F. Marchant and awarded to Sylvia Golisano, Engineering and Sustainability Coordinator for Granite Properties, this scholarship will cover all course registration fees and testing fees for Golisano to pursue a BOMI designation.

DBEI scholarships were also awarded to: Jose Gonzalez, Stream Realty Partners, SMA Designation; Cary Bell, FPG DMT Harwood, FMA Designation; and Judith Lynne, Hejtmanet, RPA Designation.

(L-R) Jeff Horn, BOMI International President & CEO; BOMA Dallas Past President & BOMI International Vice Chair, Greg Grainger, RPA, CPM, CCIM; Eileen Chatterton, FMA, Conifer Health Solutions; Trish Freis, RPA, Granite Properties; Sandie Morgan, RPA, CB Richard Ellis; and BOMA Dallas President, Mark Wilshire, RPA, FMA, LEED AP

CONGRATULATIONS! Dallas BOMA and the Dallas BOMA Education Institute (DBEI) held its annual July membership luncheon recognizing 7 BOMI-designation graduates: Paul Geater of PM Realty Group and Wayne Bonlie of Stream Realty Partners received the SMT designation and Eileen Chatterton of Conifor Health Solutions earned the FMA designation. RPA designation were awarded to Patricia Buchner of Stream Realty Partners, Sandie Morgan of CB Richard Ellis, Trish Freis of Granite Properties and Carole Kennedy Wereldhave Management.

SEPTEMBER MEMBERSHIP MEETING TO MARK 9/11 ANNIVERSARY BOMA Dallas urges you to mark your calendar for Tuesday, September 20, for the membership BREAKFAST — a breakfast rather than a luncheon. At the Westin Galleria, the event will begin at 8 am and the meal served at 8:30. Security specialists Danny Coulson and Roger Jackson will discuss “Where We Were in 2001, Where We Have Been Over the Past 10 Years and Where We are Now”. For details on other events planned to mark the 9/11 anniversary, visit www.bomadallas.org.

SEPT2011 | THE NETWORK

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The secret to success is knowing who to blame for your failures.

inne , WA) North icago, Building ( ce ffi O 0,000 SF • 123il5lage, IL) • 5th and Bell (Seattleento, CA) • 303 W. Madison (C,hPA) • Campbell Mithun Towero(M s u p m a C s nald’ int (Elk Grove V9 SF • 300 Capitol Mall (Sacramour Penn Center (Philadelphia oods (Mississauga, ON) • McDIL) • Federal Reserve Plaza (Bois 0,000 - 499,99 entury Place (Nashville, TN) • Frters (Dallas, TX) • Maple Leaf F ago Regional Office (Chicago, Y) • The Metropolitan Water D ( ION SF • One C Y) • Hunt Corporate Headqua1 Brickell (Miami, FL) • FBI Chicrnational Trade • (New York, NG • BAC Colonnade - Rotundaill er (New York, N& Madison (Seattle, WA) • 70ames L. Watson US Court of Intee, OR) • HISTORICAL BUILDIN DUSTRIAL OFFICE PARK • M l Center (Be l a ic d n, TX) • Fourthcob K. Javits Federal Building/Jnited States Courthouse (Eugen.S. 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B • W (W ) • e T ) tr U , n IL e e , epts UnlimitedStreet (San Francisco, CA) • Quueilding21900 k C o a g n L a io lt ic n a h U (C BURBANK BOULEVARD rk @ arns (S Hills,eCA s, TX) • World PINa GBUILDING Street (Boston, M - 405 Howard • Ralph H. Metcalfe Federal B te BuilWoodland w York, NY) • Koen Center (DallRENOVATED a h (N ig H g 9 in 9 d • by: PM Realty Group ILD A) -ck1, AMILLION tributi another project• RENMETROPOINT TEDMN600BUBUILDING Empire Sta y,Managed e DisCorporation, ns (Chesterfi A • e ik V p ) rd O R a os Angeles, C500,000 rn G Tu r Owned by: Woodland Burbank a • o lm ) J) R e A N e D C St. Louis Park, tl , • o o ISE all (Lit FEET Realty Advisors LOW R& Wakefield ffice Park (Ral Diego (San DiegRBAN OFFICManaged PARby:KCushman Park (Perth Ambal CebynAmerican O n l ing/Sturgis HSQUARE E a e a k S ri a f st L o u n r d le te In G y • o b J) U m FOXAPLAZA ATER, NLtd. ns Medic RIDby:GEBPGWProperties, ark, MN) • SUBR CROSSING (BOwned hesterfield, MOm) P a, ON) • PertLosh (H (C is Angeles,st CAon, TX) • Physicia I u o re L a u t. q (S S g u rk in o a d P E a and owned by: Irvine point 600 Buil ise • 200 & 400 BRIDGEWAT oodland Hills, CA) • Central Coeur, MO) • Gwinnett Com Medical PlazManaged troCompany e M )v X T s, a ll a (D nter IV (Creve ington, MN) • Resurgens Pla e C r o Forest Plaza ) • Suburban Office Park - Mid-R) • 21900 Burbank Boulevard A(W u e o C e v re C • m Wellesley, MA Glenwood Avenue (Raleigh, NC 5 L Street, Inc. (Sacramento, C o)rd, NJ)vNorthland Center (BloCoA) • The United Building (Chic(Ca e, ON) • 3600 Jersey (Washington, DC) • 92tropolitan Center (East RutherfMN) • Fox Plaza (Los Angeles, • Roofing Concepts Unlimited e WA) • 500 NewW. Madison (Chicago, IL) • Mell Mithun Tower (Minneapolis,s Office Building (Oak Brook, IL)Orrick Building - 405 Howard StrCA nto, CA) • 303 r (Philadelphia, PA) • Campbe ga, ON) • McDonald’s Campu rve Plaza (Boston, MA) • The thern California (Los Angeles, a our Penn Cente • Maple Leaf Foods (Mississauce (Chicago, IL) • Federal Resetropolitan Water District of Sou) • Choctaw Building/Sturgis Hh A ers (Dallas, TX) L) • FBI Chicago Regional Offi e • (New York, NY) • The Me de - Rotunda (Coral Gables, FL Park (Mississauga, ON) • Pert a • BAC Colonna E PARK • Millcreek Business morial Hermann Medical Plaz ickell (Miami, F US Court of International TradICAL BSUBURBAN G IN D IL U n L OFFIC , WA) • Me Beach, FL) • Two Forest Pla e STRIAOFFICE u v U e ames L. Watso house (Eugene, OR) • HISTORetroit,PARK D ll e IN (B • r I) te M n e MID-RISE al C edicstories) ter (West Palm ey Office Park (Wellesley, M ellevue M(6-10 n e C ted States Courtodore Levin U.S. Courthouse (D) • GroHOWARD h BCENTER lt te a e ra o H p rp u o HUGHES C ellesl eranté MEDICAL Angeles, CAills, CA) • Esp NC) • The WOFFICE kville, ON) • 3 , a h and, OR) • Therofessional Plaza (Nashville, TNshire (BLos (O ig H st le y e a rl e W (R v r d e a te o n R e e and owned by: Equity nture C BUILDING • Centennial P g (Cincinnati, OH) • 8383 Wil ons (PManaged 235 North Servic• 5th and Bell (Seattle, WA) n• t n, CA) • VeOffice 1 to • n F sa S a 0 le 0 ,0 0 0 1 ) OF SAN DIEGO l Mall (Sacrame PHYSICIANS ge, ILCENTER e VilCAlaMEDICAL ) • 580 Buildin) • Pleasanton Corporate Commakbrook Terrace, IL ) • UNDER est Point (Elk GSan rovDiego, Capito Corp.

• 300Management FHealthcare w S IL (O h 9 a rt 9 z o ,9 Managed by:9Cambridge la N P 5 9 ille, TN) • F 2 4 v ca • ri sh e 0 a ) r (Deerfield,250,000 0 A m (N A ,0 M 0 ce r, id 5 e la 2 M st P • e • ry ) Owned by: Rady Children’ s Hospital San Diego rc ) N o tu eles, CA - O499,999 hestnut Place (WSteeles Avenue East (Toronto,0O,000 - 1 MILLION SF • One CenY) • Hunt Corporate Headqua C ter (Los AngSQUARE e n • F FEET S 9 9 249,9 llas, TX) • 3381ond Centre (Toronto, ON) • 50 Y • Hearst Tower (New York, N& Madison (Seattle, WA) • 701m 100, 000 - 300 a (D r CAPITOL MALL te n e C ce ffi e O CA e Richm E FACILIT g T n A o R Y O • P • InterchangSacramento, R ) on, TX) • Fourthcob K. Javits Federal Building/JdaS X O st T C u , • o g ) in (H N r rv O e , (I Managed by: Hines w a s a w To n a y li tt it o e Ja C C by: 300 Capitol Associates Point at LasOwned ExchaNFngL.P.e Plaza n(Oeapolis, MN) • EARTH • FirstOne Stone Road (Guelph, ON) M• N ) • Wayne Lyman Morse Unrtitland d rl o W • ) X T , g owers (Irvin me Mortgage Campus (Min OVERNMENT BUILDING • tates Courthouse (St. Paul, ) • Pioneer Courthouse (Po • Wells Fargo Houay Terminal (Toronto, ON) • G Federal Building and United S ment Building (North Bay, ON H) • Medical Office Building O A) • Queen’s Q hicago, IL) • Warren E. Burgeralt Lake, UT) • Ontario Govern Union Centre (West Chester, OMA) • 250 Albert St. (Ottawa, n deral Building (Cing (New York, NY) • Kearns (Ster (Dallas, TX) • World Park @ING • 99 High Street (Boston,rfield, MO) • Parkway North Ces C UILD s (Cheste rd Hughe n a e w rd o pire State BuildNJ) • Turnpike Distribution Cengo, CASUBURBAN a OVATED BOFFICE H G N • r E a ) R C • lm N e , ) D h E• ffice Park (Rale•igRochelle Park (Irving, TX) • O e E PARK LOW R(1-5IS, stories) Perth Amboy, al Center of San Diego (San DieBURBAPARK k a IC LOW-RISE L F n F O le G N • J) WATER N CORPORATE RIDGECOMMONS hesterfield, MOo)mmerce Center (Duluth, GA) a• ysicians Medic ding (St. Louis Park, MN) • SUTER CRPLEASANTON (B (C I G re IN a S u S q O S rk a P CA opoint 600 Buil-Rise • 200 & 400 BRIDGEWA (WoodPleasanton, ls, CA) • Centra(Cl reve Coeur, MO) • GwinnettsCPlaza (Atlanta, GA) • The Pointrs il H Managed by: Hines d n la GOVERNMENT IVInvestors, LLC terRoad by: 6200oStoneridge an Towe rb Resurgen U • e ) eur CenMall h N ffice Park - Mid C) • 21900 Burbank Boulevard, CA) •Owned T C M • , e v ) n IL re to , C g o in g om Building (Chica oral Springs, FL) • Wells Fa itedLYMAN ue (Raleigh, N 925 L Street, Inc. (Sacramento rford, NJ)vNorthland Center (Blos, CA) • The UBUILDING n WAYNE MORSE ited (CSTATES COURTHOUSE • nlimUNITED Ruthe -n249,999 Angele U s st ts o a p (L (E ce r a n ncisco, CA) • Q z Eugene, OR te o la ra hington, DC)100,000 n C F P e g C x n n a o fi F o (S ta • o t li e R o ) e p • N o tr ) M S tr IL e s, rd Services Administration Managed4and owned •M FEET Howby:aGeneral Federal neapoli k Brook, 5 e a in 0 lf a (O (M tc g r e g e in Chicago, IL) SQUARE M in d w . d il il H To u u B h n B u lp k ce h a Mit CENTER GWINNETT pbell COMMERCE ld’s Campus OffiPlaza (Boston, MA) • The Orricalifornia (Los Angeles, CA) • Re Rock, AR) • Empire Sta ia, PA) • Cam Duluth, GAuga, ON) • McDona ississaand owned by: Parmenter Southern C Building/Sturgis Hall (Littl ral Reserve f e o Realty Partners d t e F ic • tr Park (Perth A is ) l D a IL r , ri eaf Foods (MManaged o te st g a u a d W ic w In h n y ta (C ta c o li o b o ce h p o Offi •C h Am Physician15s Meddii hicago Regionaal de • (New York, NY) • The Maedtre - Rotunda (Coral Gables, FL) Park (Mississauga, ON) • PertSEPT2011 • ) X T |n,THE NETWORK o st u o oint 600 Buil nternational Tr ICAL BUILDING • BAC Colonn ICE PARK • Millcreek Business orial Hermann Medical Plaza (H allas, TX)vMetrop se

GENERAL ASSEMBLY

JAMES ROHRIG

James.Rohrig@Grubb-Ellis.com James A. Rohrig, MAI, CPA is a Senior Appraiser with Grubb & Ellis Landauer Valuation Advisory Services and serves on the Board of Directors of the Appraisal Institute, North Texas Chapter.

LEED CERTIFICATION AND THE APPRAISAL PROCESS

L

eadership in Energy and Environmental Design (LEED) is an internationally recognized system providing third party verification of environmentally responsible design, construction, operation and maintenance of commercial buildings, institutional buildings and residential development. The U.S. Green Building Council developed the LEED certification process for new buildings and existing building projects in 1998.

THE CERTIFICATION PROCESS

The LEED standards are a complete and comprehensive rating system aimed at improving energy and water efficiency, reducing carbon emissions, and improving indoor environmental quality. The LEED process and standards were developed to address the lifecycle of a building project, from site selection to site layout, building design, materials used and maintenance of the building or project after completion. There are eight main areas of measurement for a project: • Sustainable site • Water efficiency • Energy and atmosphere • Material and resources • Indoor environmental quality • Location and linkages • Awareness and education • Innovation and design A project is awarded points (maximum of 110 including bonus points), based on a 100-point scale, which are summarized in five main categories: • Sustainable site - 21 • Water efficiency – 11 • Energy and atmosphere – 37 • Material and resources – 14 • Indoor environmental quality – 17 Based on the number of total points awarded, including the bonus points, the project is certified as one of the LEED certification categories: Platinum, Gold, Silver, Certified.

16

THE NETWORK | SEPT2011

BENEFITS OF LEED CERTIFICATION

For building owners, LEED certification is a competitive advantage. LEED buildings can mitigate risks against lawsuits stemming from toxic building materials, attract environmentally aware tenants, result in positive response from the media and consumers, provide a higher level of cost effectiveness through lower operating costs, and may result in higher rental rates. All of these items add value and increase the return on investment.

For tenants, leasing space in a LEED certified building can result in lower overall rental costs due to lower utility costs and result in a happier, healthier, more productive work force.

In addition, companies can demonstrate their commitment to reducing their carbon footprint and generate positive public relations by leasing space in a LEED certified building.

APPRAISAL CONSIDERATIONS

The valuation of a LEED certified property requires unique considerations and analysis by the appraiser. Each appraisal method has specific considerations that the appraiser must be aware of in order to provide an accurate opinion of value.

THE COST APPROACH

Here the appraiser estimates the replacement cost of a building. For a LEED certified building, the appraiser must include the unique and environmentally efficient building materials used in the construction process. Using construction cost estimates from a typical building project will underestimate the cost of the LEED project. According to Sustainable Partners, LLC, a LEED certification consultant, LEED certified properties have less maintenance and longer lives for the mechanical equipment, which results in lower depreciation amounts than the typical building. The longer life for mechanical equipments is due to the higher quality and the maintenance requirements of LEED certification.

SALES COMPARISON APPROACH

This involves analyzing sales of comparable properties and adjusting the comparable sales based on the differences between the comparable sales and the property being appraised. Ideally, this approach would use comparable sales of properties with the same level of LEED certification; however, this may not always be possible. The appraiser should adjust the comparable sales for the differences if a nonLEED property is analyzed as ‘comparable’. The differences would include the quality of construction, the condition of the property (specifically the mechanical equipment), the economic characteristics (e.g., lower operating costs) of the LEED property, and a higher lease rate for it.

INCOME CAPITALIZATION APPROACH

In this approach, the appraiser estimates market rent and expenses to arrive at an estimate of net operating income. This estimate of income is divided by an appropriate capitalization rate derived from the real estate market to arrive at the value of the property. Again, ideally, similar LEED certified properties would be used as rent and expense comparables. According to Sustainable Partners, LLC, the LEED certified building (Gold and Silver certified) may see 25-30% less electricity costs and 3040% less water use. Lower operating costs, potentially higher rental rates, and a higher market profile all combine for higher value for a LEED building.

Studies and data of the National Building Institute and CoStar (a real estate research and data company) indicate that participating in LEED certification results in lower costs, and higher income, which results in a higher return on investment for project owners. According to the USGBC, over 6,000 building projects have been constructed with LEED certification and there are over 35,000 registered projects as of August 2010. Real estate appraisers must become familiar with the advantages, construction differences, costs and operating savings of LEED certified projects to accurately conclude to an opinion of value for these projects. •

President Kristin Hiett, CAE with her “Keep The Ball Rolling” motto for her term in office.

(L-R) Institute of Real Estate Management, Dallas Chapter staff and past presidents witness Kristin Hiett’s induction. Susan Nash, CPM®, Linda Jackson, CPM®, Kristin Hiett, CAE, Tommy Hiett, Jack Gardner, Claudia Serrara,CPM®, and Teresa Bristow.

IREM EXECUTIVE DIRECTOR LEADS ASSOCIATION EXECUTIVES

K

ristin E. Hiett, CAE, Executive Director of the Institute of Real Estate Management Dallas, was inducted as president of the Dallas Fort Worth Association Executives at the Irving Convention Center for a one-year term which began on July 1st.

The Dallas Fort Worth Association Executives (DFWAE ) was founded in 1985, and is dedicated to professional development for association executives and their staffs. Through education, they enhance leadership skills for CEOs and association professionals who then share the knowledge within their own organizations thus providing the tools to be successful, sustainable and profitable.

DFWAE provides valuable networking opportunities amongst CEOs, association executives, professional meeting planners, the hotel industry, convention and visitors bureaus and many other service providers to associations, non profits and professional societies.

Congratulations, Kristin!

THE (NOT SO) SECRET SERVICE (L-R) Rebecca Mason, ARM was sworn in by Tessie Nolan, CPM and president of IREM Dallas

At the Dallas chapter’s June luncheon, members of the Secret Service - David Bentz, Group Leader, NTEC (North Texas Electronic Crimes) and Troy Gay, of the department’s Physical Security Specialists - provided thought-provoking insights.

The country’s first investigative unit, the Secret Service, was formed in 1865 to address serious counterfeiting issues and has continued to evolve. The Agency’s Electronic Crime Task Force (ECTF) is the lead agency in protecting our nation’s financial income structure. Its Dallas office is the busiest in the world.

(L-R) Executive Director, Kristin Hiett, CPM; Carolyn Fackler, CPM; and President Tessie Nolan, CPM at Maggiano’s in North Park

GENESIS WOMEN’S SHELTER UPDATES

DECEMBER AT THE “ARTS” On Wednesday December 7th, IREM will host an awards luncheon at the beautiful AT&T Performing Arts Center. Register at www.irem-dallas.org.

The Genesis Women’s Shelter held its 18th annual Mother’s Day Luncheon in Dallas. “The Greatest Generation” was the topic of keynote speaker Tom Brokaw. The event raised in excess of a million dollars and was attended by over 2,000.

Donna Matthews of Prestonwood Landscaping (pictured here) coordinates the chapter’s support of the Genesis Women’s Shelter through the Community Service Committee. A donation drive is under way that has resulted in donation boxes for clothing and household items being placed in over 20 buildings (and counting) for the month of May. IREM is now featured on the Genesis website as a Friend of Genesis.

SEPT2011 | THE NETWORK

17

GENERAL ASSEMBLY JESSICA WARRIOR

jwarrior@graniteprop.com Jessica L. Warrior, CPM®, RPA, LEED AP O&M is with Granite Properties.

She currently serves as IREM’s VP of Education, as the Chair of BOMA’s Lone Star Awards and on BOMA’s Green Task Force.

A P R CCIM

ON TARGET DESIGNATION DRIVERS

CPM

CPM®, RPA, CCIM WHICH IS RIGHT FOR YOU?

I

began my career in commercial real estate while aspiring to be a college professor - taking classes at night and working in property management as a “day job.” In time I realized that “day job” could become a fulfilling career and in one memorable moment, I ‘made the leap’ and devoted myself wholly to the profession, leaving that dream of academia behind me.

Though I moved on and have never looked back, I still carry with me a love of learning. In fact, a big factor in my decision to focus on property management full-time was that the profession lends itself to ongoing education and the continual pursuit of knowledge.

We live in a changing world and real estate is no different. Building systems and the evolving technologies used in management are complex; however, possessing a true understanding of these things will make property managers more effective in their positions and much more valuable to their companies. At the end of the day, real estate is a money business and managing and investing that money effectively translates to more profit – the objective of all property owners. Ongoing education is essential to achieving that goal and, fortunately, there are multiple means of obtaining this industry-specific education within the field.

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The IREM Certified Property Manager® (CPM®) designation and BOMA’s Real Property Manager (RPA) designation stand out as the most widespread designations within the ranks of property management professionals. A CCIM (Certified Commercial Investment Member) designation is also common in the field. Each of these organizations and their resulting designations focus on specific aspects of property management and understanding those focus areas can help you choose which designation path is right for you.

CPM®

The Institute of Real Estate Management’s education track zeros in on the financial aspects of commercial, retail and multi-family property management. Once you become a CPM® candidate, you must complete seven required courses which include the topics of marketing, human resources and building maintenance but center on the core education - Finance, Finance, Finance!

Over half of the CPM® educational program is made up of three classes focusing on real estate financing and valuation, not to mention an additional Financial Tools course that is aimed at helping managers understand everything about budgeting, valuation, taxation and loan analysis.

In days past, the ultimate goal of all this education was to create a complete management plan for a test property assigned by IREM. Candidates would study the subject property, evaluate its current condition, make multiple recommendations to improve that condition, and then assess those recommendations to quantify the financial benefit of the actions. In short, the task was literally to develop a management plan to reach the owner’s objectives and bring the property to its highest and best use. The completed management plan frequently came in at several hundred pages in length and was the product of much blood, sweat and tears. In fact, it is very common to hear the horror stories of the months – and sometimes years – it took people to complete this huge hurdle in their CPM® quest.

IREM has embraced technology with open arms and offers an appealing alternative to its CPM® candidates. The Management Plan Skills Assessment (MPSA) is a four day course which tests understanding of these same critical ideas by having candidates draft select sections of a management plan using the given building test criteria. It is an intense week, preferable to the completion of a full management plan (though that option is still available).

Taking an ethics course and passing a mul-

You spend the first 2 years of children’s lives teaching them to walk and talk. Then you spend the next 16 years telling them to sit down and shut-up.

tiple-choice CPM® certification exam are the final educational requirements necessary to obtaining the CPM® designation. You must also have at least three years of real estate management experience, and you are required to submit three letters of recommendation, as well (in addition to some procedural obligations). Ultimately (upon completion), CPM® designees are able take a property and evaluate it using industry-accepted financial markers, and choose management practices which best target their owners’ objectives.

RPA

The RPA Designation, managed by BOMI (and offered locally through the Dallas Building Owners & Managers Association - BOMA), also includes two financial classes - one focusing on investment and finance and the other providing a thorough study of budgeting and property accounting. However, it is the spotlight on operational skills where the RPA stands out. The remainder of the four required courses run the gamut of building operations with everything from environmental health and safety, law and risk management and (what I consider to be) the cornerstone of the RPA program, two in-depth building design and operations courses.

Part I of the Design, Operation and Maintenance of Building System series provides a comprehensive understanding of the building envelope and central building systems to include the roof, the ceiling and the walls, the HVAC system and the plumbing system.

Part II delves into the other critical physical components of a building structure covering everything from the fire and life safety systems, the electrical system, lighting and elevators to ongoing maintenance all of those components with cleaning, landscaping and pest control.

These are the exact same operations and maintenance courses required for BOMI’s Systems Maintenance Administrator (SMA) designation which is most frequently pursued by building engineers. These classes, in addition to the environmental health and safety course, provide a property manager with an understanding of a building that is often not available by any other means. Managers will not come out of these classes knowing how to operate HVAC equipment, but they will understand the different components and the theory behind those operations.

BOMI also includes one elective course in its program to allow students to expand their knowledge in either marketing, administration or asset management depending on their interests. Like the CPM® program, the RPA program has a three-year experience requirement and a short format course in ethics. Unlike the CPM® program, however, there is no final capstone project such as the MPSA or final exam. In BOMI’s program you are tested at the end of each course to demonstrate mastery of the material.

CCIM

The CCIM designation is also frequently seen within the ranks of property management though it is most commonly known as a broker or asset manager’s designation. It’s educational program focuses heavily on financial and market analysis of commercial real estate investments, negotiation skills and ethics - all ultimately aimed at evaluating real estate investment strategy. The full CCIM program includes four required classes, an ethics course, eight hours of negotiations training, two elective credits, a portfolio of qualifying experience, and the completion of a comprehensive exam. It has a few other (mostly) procedural components.

Most property managers do not complete the full CCIM program; it is more common for them to obtain this designation using CCIM’s ‘fast track’ program, since the portfolio of qualifying experience excludes anyone who does not personally perform lease negotiations or complete transactions. The fast track program provides an alternative option to real estate professionals, including CPM® and RPA designees. Candidates must still complete the entire educational series (with the exception of the electives) and take the comprehensive CCIM exam but they are excused from submitting the Portfolio of Qualifying Experience. By providing this alternate path and reducing the strict transactional requirement, CCIM is acknowledging the industry expertise possessed by CPM® and RPA designees.

CCIM is not unique in offering a fast track program. IREM’s CPM® program excuses RPA and CCIM designees from all seven required educational courses. That said, they must successfully complete all other program components including the Management Plan Skills Assessment (MPSA), which is often difficult to do without the previously mentioned threecourse financial series. The RPA fast track program simply requires CPM® and CCIM designees to take and pass four courses including the two-part Design and Operations series, Budgeting and Accounting and Environmental Health and Safety.

It is also important to note that each of the three organizations discussed here offer multiple educational formats. Students may choose between traditional classroom offerings, instructor-led web-based classes and self-paced correspondence courses.

Until recently, property management has been unique within the commercial real estate industry in that reaching high level positions within an organization has not required a college degree. However, the emergence of real estate specific college degrees and the ongoing desire of companies to set themselves apart from the competition have led changes. Today, some organizations require a college degree of their high level managers. That said, property management continues to be an experiential industry. Theoretical knowledge only goes so

SEPT2011 | THE NETWORK

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GENERAL ASSEMBLY

DIVERSI NS DAFFYNITIONS

Twisted Thinking

» boomerang - what you say to frighten a meringue » brouhaha - a jolly tea party » Carmelite - a half-hearted Buddhist » coffee - someone who is coughed upon » crackerjack - a device for lifting biscuits » diphthong - to wash an undergarment » fecund - the one before fird » Jihad - the cry of a Fundamentalist cowboy » melancholy - a strangely shaped dog » negligent - a man who wears lingerie » pasteurize - too far to see » posthumous - the art of delivering Greek food by mail » reincarnation - to be born again as a tin of condensed milk » relief - what trees do in spring » shingle - Sean Connery’s definition of a bachelor » testicle - an amusing exam question » trampoline - a cleansing fluid for tramps » zebra - the largest size of support garment

far when confronted with some of the challenges that surface in the day-to-day world of building management.

The CPM®, RPA and CCIM designations all target the education needed by property managers. The programs offer the knowledge to put the puzzle pieces together in a property manager’s daily job – and, most importantly, they provide the tools to take management to the next level. We are no longer just asking, “Is the HVAC system working?” We begin to question, “How can we operate the HVAC system most efficiently to save operating costs?”

We start to consider capital improvements not only as cosmetic enhancements, but look at the potential cost with an investor’s eye, determining whether it will add value to the property. This is the true worth of a designation and this is why companies and building owners want designees on staff.

I am often asked whether I think one designation is more valuable than another and my answer is always, “No”. Each one - the CPM®, RPA and CCIM - offers a valuable education. Pursuit of one or another should be decided based on a person’s interest and the expertise they want to bring to their position. The CPM® designation offers an in depth understanding of the financing and valuation of multiple forms of real estate; the hallmark of the RPA program is providing operational knowledge regarding that real estate; and the CCIM’s focus is on investment strategy, taking on a main concern in all real estate ventures – evaluating the profitability of the property.

There are many very effective property managers in the field today who do not have a designation. In a way, time worked in the industry is its own designation. However, having those ‘letters’ after your name signifies a culmination of study and an expertise in the field of property management that is acknowledged by the entire industry. Having a designation may not be necessary in today’s world, but more and more often, it an entry point for the most desirable positions. The addition of a designation sets that individual apart from the competition – always a positive in today’s economy. •

NTAFE won a tour of Cowboys Stadium at the CREST EXPO that was held on March 31, 2011. The tour included stops at the Press Box, Private Suites, Cowboys and Cheerleaders locker rooms and finished with a picture in the end zone.

Thanks crest EX PO!!!!

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THE NETWORK | SEPT2011

TECHNOLOGY AND THE WORKPLACE OF THE FUTURE

C

onsulting Group at JLL spoke to an audience of 100 architects, designers and real estate executives at a Teknionsponsored event at the Nasher Sculpture Center in July.

From cloud computing to virtual teams to workplace robotics, the audience was invited to peer into the future of what our lives will look like in 2020.

“Minority Report is coming”, asserted Miscovich, who provides workplace solutions for global Fortune 500 companies and has been quoted in publications from the Wall Street Journal to LA Times. He spoke for a fast-paced hour on the landscape changes in the global workforce and workplace and how technology is driving a significant shift in how we will do business.

Some intriguing facts from the presentation: • By 2020, 80% of the global population will have access to mobile telephony, and more than 60% will have access to smart phones/tablets.

• The velocity at which technology is moving is evidenced (for example) by the fact that more than 30 tablets are coming into the market in 2011 - and the costs of these devices are plummeting. (Today, in Bangalore, India a tablet is available for $35.)

• 50 billion devices will be tied to cloud computing, a number so high it illustrates the world has more devices than people - and reinforcing the power of technology.

• The world is becoming more and more urbanized.

By 2020, 52% of the world will be classified as ‘middle class’, 54% will reside in Asia, and 55% will live in cities.

• New technologies will enhance healthcare and Peter Miscovich make it easier and more accessible (i.e., the ‘virtual doctor’ will be available online and have access to other doctors who can assist in diagnosis).

• Virtual teams will replace today’s officebased workgroups.

• By 2014, half of the workforce will be classified as millennials (those born between 1980-2000).

• Layoffs will continue, but new positions (jobs that previously didn’t exist) will emerge.

• “Face time” will be virtual, not physical.

Miscovich shared his personal experience. He will be presenting in Singapore in August at a large conference, but he won’t actually be there.

His face will be imposed on a humanoid robot, which will wheel around as he delivers his presentation.

The presentation was followed by a lively question and answer session with questions from how the small business will fare in this changing world to the security of data, and how intimacy and technology can live together in the rapidly changing workplace. •

SEPT2011 | THE NETWORK

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GENERAL ASSEMBLY

TOUR OF HOMES NOVEMBER 5-6

O

pen to the public, the American Institute of Architects’ (AIA) Dallas Chapter is hosting their fifth-annual Tour of Homes. The self-guided tour will feature outstanding residential architecture in the Dallas area (see pictures on this page).

These dwellings feature cutting edge, modern residential design and demonstrate the wealth of talent possessed by our area’s best architects.

Tickets for the full tour are available at the Dallas Center for Architecture (1909 Woodall Rodgers Freeway, Suite 100, Dallas, TX 75201), at aiadallas.org, or at the individual homes during the weekend of the tour.

www.hometourdallas.com

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The Dallas Center for Architecture seeks to foster public understanding of the power of architecture to enrich our city and our lives with a variety of programs, exhibits and tours.

ARCHITECTURE FILM SERIES The Dallas Center for Architecture’s Film Series continues with explorations of architecture from around the world. All screenings are on the second Wednesday of the month and begin at 7:30 p.m. Admission is a $10 donation to the Center. Refreshments are provided. For more details and to RSVP, visit DallasCFA.com.

ARCHITECTURE WALKING TOURS On the first four Saturdays of the month, alternating between the Arts District and the Main Street District. For details and to register, visit DallasCFA.com.

EXHIBITION

The Architecture of the Texas Centennial Exposition September 1-November 11 A celebration of the 75th anniversary of the transformation of the fairgrounds into the Art Deco World’s Fair environment of the Texas Centennial Exposition.

Original models and drawings and other artifacts will illustrate the artistry and expertise of the team of architects, designers and artisans that Centennial Architect George Dahl marshaled for Fair Park’s grand designs. The exhibition will also examine the ongoing efforts to restore and preserve what is now the largest extant group of Art Deco exhibition buildings in the world. Mon - Fri 9-5.

Special Event: ROCKITECTURE 2011 • October 26, 2011 An elegant evening of cocktails and hors d’oeurvres at the historic Filter Building overlooking White Rock Lake. Proceeds from a stylish silent auction featuring items of special interest to architecture and design aficionados benefit the Dallas Center for Architecture Foundation.

For more information, visit DallasCFA.com.

2011 DESIGN AWARDS

The AIA Dallas Design Awards recognizes outstanding work

by Dallas architects, both in the metropolitan area and around the world. The purpose of the awards program is to honor the architects, clients and consultants who work together to achieve design excellence.

The Built Awards

September 21 at The Horchow Auditorium with speaker Steven Ehrlich

The Unbuilt Awards

August 31 at DCFA - a free event with great food and drinks.

On Exhibit at the Dallas Center for Architecture Nov 5, 2011-Jan 6, 2012 In 1936, architect Frank Lloyd Wright coined the term ‘carport’.

SEPT2011 | THE NETWORK

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GENERAL ASSEMBLY

KENNETH D. SIMONSON

simonsonk@agc.org Kenneth D. Simonson is the Chief Economist of the Associated General Contractors of America.

CONSTRUCTION SPENDING HITS 11-YEAR LOW

Construction spending in May totaled $753 billion at a seasonally adjusted annual rate, the sixth consecutive monthly decrease (following downward revisions to April and March data that initially both showed increases) and the lowest figure since 1999, the Census Bureau reported.

ARRA ADDED JOBS

Public investment outlays under the American Recovery and Reinvestment Act of 2009 (ARRA)—much of it for construction—totaled $162 billion as of March, the Council of Economic Advisers stated in its seventh quarterly report on the economic impact of the Act. Outlays in the first quarter totaled $20 billion, down from $23 billion in the fourth quarter of 2010 and $33 billion in the third quarter. The Act “has raised employment relative to what it otherwise would have been by between 2.4 and 3.6 million.” In May, the Congressional Budget Office (CBO) estimated that ARRA (the American Recovery and Reinvestment Act of 2009) “increased the number of people employed by between 1.2 million and 3.3 million…CBO estimates that the employment effects began to wane at the end of 2010 and continued to do so in the first quarter of 2011.” A May 2011 paper by Daniel

Wilson of the Federal Reserve Bank of San Francisco, Fiscal Spending Jobs Multipliers: Evidence from the 2009 American Recovery and Reinvestment Act, found . . .

“The estimates suggest ARRA spending created or saved about 2 million jobs in its first year and over 3 million by March 2011. Across sectors, the estimated impact of ARRA spending on construction employment is especially large, implying a 17% increase in employment (as of March 2011) relative to what it would have been without the ARRA. Looking across types of spending, I find spending on infrastructure and general fiscal aid had a large positive impact, especially on state and local government employment, while restricted aid to state governments to support Medicaid may have actually reduced state and local government employment.”

EMPLOYMENT

Construction employment increased between May 2010 and May 2011 in 120 out of 337 metro areas for which data is available (including divisions of larger metros), declined in 162 and stayed level in 55, an AGC analysis showed. The Dallas-Plano-Irving metro again added more construction jobs (5,600 combined jobs, 5%) than any other area during the past year. •

DIVERSI NS

ARE YOU SMARTER THAN A COMMERCIAL REAL ESTATE PROFESSIONAL? Answers on back page

I Used to Know That… » 1. Who sang ‘Voulez Vous coucher avec moi…”

» 4. Mr. Rodgers Neighborhood went off the air in

» 2. Al-Qaeda means

» 5. Mr. Rodgers first name was

a) The Pointer Sisters c) Queen Latifah a) From the Center c) The Base

b) Lady Marmalade d) Labelle b) Trouble d) Jihad

» 3. The current #2 man in Al-Qaeda is known as a) The Poopster c) Amah Gunnaget U

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THE NETWORK | SEPT2011

b) Iben Waytin Solong d) Nobadeez Shur

a) 1987 c) 1999

a) Robert c) Carl

b) 1993 d) 2003

b) Fred d) Arnold

» 6. What was Elvis Presley’s middle name? a) Aaron c) Prentiss

b) Benton d) He didn’t have one

The fight we had last night was my fault. My wife asked me what was on the TV and I said, “Dust”.

Data DIGest

TEXO’S TRAINING ARM Construction Education Foundation, Inc. (CEF)

T

he Construction Education Foundation (CEF) is now in its 14th year; it continues to provide TEXO members with quality training programs for developing skilled craftsmen and enhancing career development.

CEF was created in 1996 to provide the most qualified, technically trained and safest workers in the construction industry and is patterned after the National Center for Construction Education and Research (NCCER), a national alliance of over thirty trade associations.

A 60,000 square foot training facility, the result of a partnership between CEF and North Lake College, includes 23 classrooms, an assembly room, 2 computer labs and a 30,000 sf “state-of-the art” lab/shop. In 2003, CEF significantly upgraded the labs and equipment, and expanded the welding shop to meet industry-training needs.

CEF offers in-house and customized task training for TEXO members, either at company locations, jobsites or at the DFW Education Center, located just north of the DFW Airport. It provides the instructor, curriculum and materials, and maintains all necessary administrative record keeping for these courses. Veterans who are enrolled in some programs may use the GI Bill to train at CEF. The Foundation is also accredited by the Office of Apprenticeship of the US Department of Labor.

Over 300 volunteers from the industry work on CEF trade councils, quality councils and committees.

Representing TEXO on the 2011 CEF Board of Directors are: • Louis Schindler, MEDCO • Jason Littleton, King Building Services • Mark Rutledge, Momentum Mechanical • Ken Polk, Polk Mechanical • Bruce Helm, Charter Builders • James Belota, DynaTen Corporation • Bob Prange, Bowie-Sims-Prange • Fred Wilshusen, Thomas Feldman & Wilshusen LLP • John LaBelle, Firetrol Protection Systems • Ron Hamby, Fluor Corporation • Maureen Underwood, TDIndustries • Steve Levy, Charter Builders • Jim Cuddihee, Manhattan Construction In 2010, under the leadership of Ken Polk of Polk Mechanical, CEF became one of the first nationally recognized accredited training providers for non-degree construction programs through the American Council for Construction Education (ACCE). In June 2010, 144 students graduated from the program.

The Construction Education Foundation of North Texas (CEF) represents dedication and a commitment to training in construction, and the National Center for Construction Education and Research (NCCER) recognizes CEF North Texas as the model for construction training programs nationwide. To learn more about CEF, call 972-574-5200 or visit www.ntcef.org. • SEPT2011 | THE NETWORK

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GENERAL ASSEMBLY ALEX JOHNSON

alexjohnson@laurexrealty.com Alex Johnson, CCIM is the Principal Broker for Laurex Realty Advisors and a former president of the North Texas CCIM Chapter. He is also the national CCIM Institute Cultural Diversity Chairman and a national CCIM Institute Board Director.

HOW TO FIND A GOOD MEDICAL OFFICE BUILDING

MEDIAN HOUSEHOLD INCOME GROWTH

POTENTIAL NEW MOB REQUIREMENTS

R

2010-2015 POPULATION GROWTH

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Hard work has a future payoff. Laziness pays off now!

MEDIAN HOUSEHOLD INCOME

ight now medical office buildings are the hot ticket in commercial real estate. The first step in finding a good medical office building is to find the good markets. For example, in Texas, there are the 5 major metropolitan areas: We want to determine which has the strongest demand drivers for medical office buildings. We find that Houston and DFW have the largest populations along with higher population growth rates.

Next, we look at the median household incomes and the corresponding growth rates and learn that DFW is higher in both.

We also look at the number of uninsured citizens and how much new medical office space will be created from the Healthcare Reform Act. Using an industry rule of thumb of 1.9 sf of medical office space for every new patient, we project future demand.

Houston and DFW exhibit the higher number of medical jobs and greatest growth rate. This tells me that we are on the right track. We focus on DFW as a primary market; it consists of 12 counties and is often referred to as North Texas or North Central Texas.

The largest cities in DFW are Dallas, Fort Worth, Arlington, Garland, Irving, Plano, Carrollton, Denton, Frisco, Grand Prairie, McKinney, Mesquite and Richardson. There are another 50 cities with populations between 10,000 and 100,000. DFW is a big market, so we need to identify sub-markets on which to focus.

First, we identify the cities with the highest population density, keeping in mind that these are not necessarily the largest (or most populous) cities.

Then we look at income and narrow the search to high median household income. Such an analysis leaves us with Plano, McKinney, Frisco, The Colony and University Park, and with a little research on current hospital locations, we can eliminate The Colony and University Park. Neither has a hospital. That leaves us with Plano, McKinney and Frisco.

At this point we add population growth rate, medical expenditures and mature adults as criteria. Population growth is an important demand driver for all real estate so we will look at it as a foundation block. As a point of comparison, the DFW Growth Rate is 1.94%. (Texas is at 1.65% and the US is 0.76%). Frisco is projected to grow almost 8 times faster than the United States.

Mature adults are an important demand driver for medical office buildings because they are a large user of medical services.

AGE 50+

Plano has 25% of the total population 50 or older; Frisco, 21%. (DFW - 25.5%, Texas - 27.5% and the US - 31.8%).

The following graph shows the annual amount of dollars spent per household. More money spent on medical services translates into additional real estate needed to provide those services.

RESTAURANTS

ASSISTED LIVING CENTERS

MEDICAL EXPENDITURES

Through this analysis, we can narrow down our search to the city of Plano.

With twice the population of McKinney and Frisco, Plano has a large mature population and large expenditures in medical services.

The number one demand driver of medical office buildings is hospitals.

Plano has 9 hospitals. On the map below, green represents high medical expenditures and red represents lower expenditures.

You will note the higher medical expenditures in the zip codes of 75023, 75025 and 75093 - West Plano, home of the higher income households. The 75093 zip code has both high medical expenditures and four hospitals; it is near two more in the 75075 zip code; and it has three major thoroughfares – Dallas North Tollway, Preston Road and the George Bush Tollway. The same zip code is also our best bet based on comparing the percentage of mature population, median income, population size and population growth rate. The 75093 zip code is definitely the place to start looking within the City of Plano.

Now that we have identified a zip code, let’s break it down into zones to apply a laser to our search efforts. If we map the common medical office building amenities within the 75093 zip code, (see maps at right) we see how the different amenities cluster within those four zones. And, within those clusters, two zones contain the most amenities. Zones #1 and #4 are our best starting points.

At this point, we have identified our ideal target market. The next step is to identify your supply side requirements and find your deal. •

BANKS

GROCERY STORES

PLANO, TEXAS MEDICAL EXPENDITURES

SEPT2011 | THE NETWORK

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GENERAL ASSEMBLY JAMES HANCOCK

jim.hancock@svn.com

James T. Hancock, CPM, CCIM is a Senior Advisor with Sperry Van Ness Commercial Real Estate Advisors in Dallas, Texas. He is a member of the Asset Recovery Team and specializes in office and industrial investment sales.

THE FEAR FACTOR IS GONE...

God Bless Texas

C

lose to 100 gathered at the Park City Club yesterday to hear a panel 100% CCIM designee panel. Expert testimony on the conditions in the industrial, office, retail and investment market was given by Allen Gump of Colliers International, Nora Hogan and Steve Williamson of Transwestern and Scot Farber of Grubb & Ellis. Robert Grunnah of Henry S. Miller was the moderator.

Farber reminded us how much fear there was in the investment market during 2009 and maybe a little less in 2010. He said that on January 1, 2011, “The fear factor was gone”. We are finally seeing some price discovery. There is plenty of equity out there to transact. The challenge is finding the deal that makes sense.”

It’s a ‘tale of two cities’ according to Scot. Activity has been strong for a while for the core and net leased properties. He is seeing recent stronger activity in the value add category, less than 50% leased. We are still waiting for that 50%-75% leased category to get moving and make more sense for the buyers.

Although leasing activity over the past 30-60 days has been light, the DFW industrial market saw very strong absorption of over 5 million square feet in the past two quarters. Gump said as long as he could remember in his many years as an industrial broker, there is almost nothing (speculative) under construction. “There have been rate increases of 25% in some submarkets, “ he said. “If you have a user wanting to buy a smaller “Brookhollow type” industrial building, act quickly, they are going fast. The jury is still out as to what will happen during the balance of the year. There seems to be fewer deals in the pipeline.”

PRESIDENTIAL YEAR NET ABSORPTION OF OFFICE SPACE

Net Absorption

Arrow points to 3rd Quarter of the election year

PRESIDENTIAL YEAR NET ABSORPTION OF INDUSTRIAL SPACE

RETAIL SHIFT

Williamson noted that retail was hit very hard during the downturn.

There is still little development, he pointed out, but a new category of retail projects is showing signs of big activity - the outlet mall. Many retail developers are gearing up for the first time in this niche and Steve expects several new developments in Texas. Another phenomenon he noted is that grocery anchored centers are requiring smaller sites. “Grocery stores are offering everything now: flowers, business centers, banking and other goods formerly sold in adjacent shop space. With that kind of competition within the grocery store, most centers will include only 10,000 square feet or so of adjacent shop space.

Frisco…Frisco…Frisco was the mantra, according to Ms. Hogan - the place where many big office users want new build-to-suits. The market is so tight there, she pointed out, that she has to go further south down the tollway to find any deals for her clients wanting attractive concession packages. On an interesting side note, she said that DFW led the nation with positive job growth of 84,000 during the past 12 months. According to her calculations that would mean we should have had 15+ million square feet of net absorption!

The office market has improved, but not that much. Where are all those new job people officing now? Those folks are not being tucked into the racks of distribution centers or the shelves of stores. Maybe office users have become extremely efficient.

Lastly, Nora shared an observation made by Steve Brown of the Dallas Morning News recently about net office absorption during election years. Things look pretty flat in the third quarters of those periods. See the chart Nora prepared below. • 28

THE NETWORK | SEPT2011

Net Absorption

Arrow points to 3rd Quarter of the election year

“I AGREE WITH ALLEN ABOUT THE INDUSTRIAL RENTAL RATE INCREASES. WE HAVE SEEN THEM GO FROM $2.85 NNN TO $3.35 NNN IN COPPELL.” — Ralph Heins, Primera Companies

JILL MELANÇON

jill.melancon@nationalroofingpartners.com

NEWS

Jill Melançon is the National Service Advisor for National Roofing Partners and the president of NAWIC’s Dallas chapter.

THE DALLAS CHAPTER hosted its 2nd annual Industry Appreciation

& Mini Trade Show Dinner Meeting in Dallas, TX. The Keynote Speaker was Shirley Cochrane who offered insights into the changing global economy and how women in other countries are “Breaking through the Glass Ceiling.” The Block Kids and CAD Awards were announced and there was a presentation to the Texas Scottish Rite Hospital Legacy Scholarship Fund with Gladys Kolenovsky accepting the check.

Ethan Moore, a recipient of part of the fund money, spoke from the heart about what NAWIC means to him and how it has been able to help him to achieve his goals. The “new” Spotlight Awards, spearheaded by Ann McCullough, recognized women from the chapter who were nominated by chapter members for doing something special or for going above and beyond the call of duty, and the Longevity Awards recognized members of 15 years and beyond in their membership with NAWIC: Elizabeth Holiday-Sanders (15 years), Ann McCullough (20 years), MaryAnne Doss (29 years), Cindy Cox (30 years), Jackie Hall (30 years), Jane Hanna (32 years), Francis Smith (38 years), Sue Bruns (46 years), and Renee Hallmark (53 years). Congratulations ladies!

President Jill Melançon and Vice President Francine Hawkins-Alegeh spoke at ITT Richardson to construction management students to educate them about the job outlook, emerging technologies and trends in the construction industry.

Bob Bowen, Executive VP of Manhattan Construction (and a member of the board of the Construction Industry Outreach Advisory Council) met with the chapter’s board recently. That organization is eager to partner with local associations to increase diversity in construction firms, offer internships, joint venture and act as a clearinghouse for the needs of women in construction.

Go to the “links” tab at www.nawic-dallas.org to find scholarship applications for college-bound women as well as those pursuing trades training.

NAWIC FORT WORTH The Fort Worth Chapter of the National Association of Women in Construction held its annual golf tournament on June 20th at Sky Creek Golf Club in Keller. The first place winners are pictured below.

(L-R) Bull Wood, Byrne Construction Services; Pat Meadors, NAWIC FW Chapter President; Rodney Shrader, Acton Mobile Industries; Jon Steward, Acton Mobile Industries; Jason Waters, Acton Mobile Industries

SEPT2011 | THE NETWORK

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GENERAL ASSEMBLY REGIONAL VIEWPOINTS JOHN PROMISE

jpromise@nctcog.org John Promise, a Registered Professional Engineer, is the Director of Environment and Development for the North Central Texas Council of Governments. He serves on the board of AIA Dallas and the River Legacy Foundation.

at the NCTCOG General Assembly

T

he North Central Texas Council of Governments announced that sixteen projects were recognized in the Celebrating Leadership in Development Excellence (CLIDE) Awards Program at their General Assembly on June 17th.

Begun in 2003, the biennial CLIDE Awards honor development and planning projects that exemplify the region’s Principles of Development Excellence, which outline a vision for sustainable, livable communities in North Texas. They center on providing choices for how and where people choose to live and work, promoting walkable environments, transportation and resource-efficient growth, and mixed use and environmentally responsible development—all in quality places that people will be proud to inhabit.

This year’s CLIDE Awards jury was comprised of a prestigious panel of nationally recognized experts in the fields of architecture, sustainable development, and planning. The 2011 CLIDE Awards Jury included: • Chair Elizabeth Plater-Zyberk, FAIA, Dean of Architecture at the University of Miami • William A. (Bill) Gilchrist, FAIA, Director of Place-Based Planning at the City of New Orleans • Tom Murphy, Senior Resident Fellow, Urban Land Institute/Klingbeil Family Chair for Urban Development • Alex J. Rose, Senior Vice President, Continental Development Corporation

Downtown Redevelopment & Oak Street Reconstruction

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THE NETWORK | SEPT2011

Environmental Education Center

NEW DEVELOPMENT

• Midtowne: A Sustainable Community in Midlothian –Options Real Estate and the City of Midlothian Texas AgriLife Research and Extension Center in Dallas

The jury identified sixteen projects to receive leadership awards from a record 40 nominations submitted. These awards are bestowed on endeavors that exemplify one or more of the “Principles of Development Excellence” and serve as examples of quality development practices in North Central Texas. The winners were recognized in the following categories:

Midtowne: A Sustainable Community in Midlothian

REDEVELOPMENT

• Downtown Redevelopment & Oak Street Reconstruction –City of Roanoke • Vitruvian Park –UDR and the Town of Addison • Grand Prairie Downtown/Main St. Redevelopment Plan –City of Grand Prairie and Killis Almond & Associates • City of DeSoto TownCenter Redevelopment –City of DeSoto, Trammell Crow Company’s Highstreet Residential, and JHP Architecture/ Urban Design

The Better Block Project

The nightly news is where they begin with ‘Good evening’, and then tell you why it isn’t.

THE 2011 CLIDE AWARD RECIPIENTS RECOGNIZED

Vickery Meadow Improvement District

Lebow Channel Watershed Improvements Program

Dallas City Design: Urban Structure and Guidelines

City of DeSoto TownCenter Redevelopment

PUBLIC PLANNING AND POLICY

• Lebow Channel Watershed Improvements Program –City of Fort Worth and Teague, Nall and Perkins, Inc. • Vickery Meadow Improvement District: future redevelopment study –Vickery Meadow Improvement District and JHP Architecture/ Urban Design • Near Southside Development Standards and Guidelines –Fort Worth South, Inc. and the City of Fort Worth • Bush Turnpike TOD District –City of Richardson, Gateway Planning Group, Inc. and GFF Planning • Denton Downtown Implementation Plan (DTIP) –Jacobs and the City of Denton • Dallas City Design: Urban Structure and Guidelines – City of Dallas City Design Studio • Trinity River Vision Neighborhood and Recreation Enhancement Plan –Tarrant Regional Water District

The Citizen’s Guide to Stormwater Pollution Prevention Winner: The Trinity

Trinity River Vision Neighborhood and Recreation Enhancement Plan

Grand Prairie Downtown/Main St. Redevelopment Plan

RAISING PUBLIC AWARENESS

• The Citizen’s Guide to Stormwater Pollution Prevention –City of Arlington • Environmental Education Center –City of Plano • Texas AgriLife Research and Extension Center in Dallas –Texas AgriLife Research and Extension Center in Dallas • The Better Block Project –BetterBlock.org, Go Oak Cliff, Dallas City Council, and Andrew Howard Transportation Planning Congratulations to the 2011 CLIDE Award recipients for their exceptional vision and strong desire to produce sustainable, innovative projects and programs that exemplify the North Texas Principles of Development Excellence. These award winning projects demonstrate that our region is a nationwide leader in sustainable development and the North Texas region’s commitment to Development Excellence and providing the best quality of life possible for its residents!

For more information on the 2011 CLIDE Awards, visit www.developmentexcellence.com. •

Near Southside Development Standards and Guidelines Bush Turnpike TOD District

Denton Downtown Implementation Plan (DTIP)

Vitruvian Park

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GENERAL ASSEMBLY

SMU COX AND CREW DALLAS LAUNCH EDUCATIONAL PROGRAM Leadership Certificate Program

O

ver the last four decades, many factors have led to a dramatic improvement in women’s economic status. Today, women have become a major driving force in the global economy. Yet in the United States, only 20 percent of top leadership positions are filled by women. The most astute organizations know that women leaders are the untapped competitive edge for the new world, and they are aggressively seeking more women for leadership.

CREW Network conducted the industry’s first benchmarking study in 2005 (Women in Commercial Real Estate: 2005) to measure the status and achievements of women in commercial real estate.

The study looked at three key areas: advancement, compensation, and success and satisfaction. The goal for this study was to document the status of women in the industry. In 2010, CREW Network contracted with the Cornell University Program in Real Estate to administer the study to more than 2900 individuals in a wide variety of specialties within commercial real estate. Respondents were reached through 13 professional associations serving various aspects of commercial real estate.

The study reveals that a greater number of women are now pursuing careers in commercial real estate, along with a number of additional key findings: • More women are entering the field of commercial real estate and finding opportunity: 43% today as compared to 36% in 2005.

• There has been an increase in the number of women with less than five years of experience and women with more than 20 years of experience.

• The wage gap between men and women is narrowing, but still present. More women are now in the $100,000 to $250,000 per year salary category, but still fewer than men. Only 8% of women surveyed in 2005 were at the $250,000 level; in 2010 that increased to 11%. Over that same period, the percentage of men in that compensation category decreased from 34% to 31%.

(L-R) Kym Sosolik, Director of Leadership for SMU CREW Leadership Certificate Program; Julie Lynch, Managing Partner LYNOUS Talent Management and CREW board member; Pam Stein, attorney at Greenberg Traurig LLP.

• In 2010, there were three times more men than women respondents represented at the $250,000 compensation level.

• In 2010, two times as many women as men reported earning less than $75,000 per year as opposed to three times as many in 2005.

• Men still report earning a greater portion of their overall compensation from various forms of compensation such as bonuses, stock options, etc., but both men and women are beginning to report that a higher percentage of their total compensation is drawn from base salary (67% in 2010, up from 58% in 2005).

• A majority of C-Suite positions (President, CEO, CFO, COO) continue to be occupied by men.

• Overall, the number of C-Suite positions was significantly reduced in the 2010 study. Women from 13% in 2005 to 9% in 2010, and men from 32% to 22%.

What are the solutions to keeping the progress of women ongoing? As suggested by authors Linda Babcock and Sara Laschever, one thing is a change in society’s attitudes towards women who assert themselves. Another is encouraging women to speak up for what they deserve, for them to recognize opportunities in their circumstances, to appreciate the value of their work and to ask for what they want.

In response to the 2010 CREW Network Bench-

Front (L-R) Laura Kochan, TCU; Debbie Mehnert, UNT; Love Nguyen, UTA; Jun Yin, UNT; Kim Hube, UNT; LaCrisha Davis, DBU; Connie Lui, UTD. Back (L-R) Tyler Hickey, UTA; Kyle Wahlberg, TCU; Calvin Faison, TCU

5TH ANNUAL ½ DAY OF SHADOWING The UCREW committee hosted 9 local university students with CREW members for a ½ day of shadowing so they could have an opportunity to learn about commercial real estate from professionals. Students spent the morning ‘shadowing’ CREW members at their jobs and learning first hand what they do. Then they attended the chapter lunch at the Park City Club. Universities represented in the shadowing event were UTD, UNT, UTA, and TCU. CREW members who volunteered to be shadowed by a student were: Heather Haralson of Deloitte, Jeanne St. John and Meghan Spencer of Prudential Asset Resources, Carol Coffman-Sosebee of SCM Real Estate Services, Karla Peterson of MetLife, Cindy Harris of Huffines Communities, Kim Butler of Hall Financial, and Cindy Cohn of Parmenter Realty Partners.

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THE NETWORK | SEPT2011

mark study results, the Dallas Chapter has developed the SMU CREW Leadership Certificate program. The innovative program, to contribute to the future career success of Commercial Real Estate Women, will begin in January 2012 and will be devoted exclusively to developing women’s unique strengths and skills to position them for key executive positions within commercial real estate. The program has a series of eight modules.

Armed with the knowledge of the latest research barriers to women achieving top leadership positions, the program is designed to tap the unique strengths women bring to leadership. The certificate program will provide leadership development in convenient sessions that can be taken individually or as part of the certificate program. The 8 hour sessions will be held at SMU’s Executive Education James M. Collins Center once per calendar quarter in 2012-2013.

Those who experience it will be on the leading edge of change. Participant learning goals will be: • Becoming aware of the differences between how women and men approach aspects of work to maximize business results • Understanding individual leadership styles, approaches and their impact on business results • Learning to be a masterful negotiator • Effectively getting your big ideas heard, selected from among others, and implemented within a team environment • Finding your compass to generate high levels of professional performance and life satisfaction with a sense of purpose and meaning • Exploring and articulating your personal values • Identifying the people in your network who will be your power advocates • Creating a networking strategy that will allow you to leverage the best relationships for business results To learn more about the SMU CREW Leadership Certificate program, visit www.crew-dallas.org. •

THE PROGRESS, PLANS & PROMISE OF THE PARK! Linda Owen, Woodall Rodgers Park Foundation President (L) presented the vision for the park at the July luncheon at the Park Cities Club. She is pictured below with Vicky Gunning of Locke Lord Bissell & Liddell LLP, CREW Dallas president.

SEPT2011 | THE NETWORK

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GENERAL ASSEMBLY The Network is pleased and proud to welcome to these pages!

THE INTERNATIONAL ASSOCIATION OF VENUE MANAGERS (HEADQUARTERED IN COPPELL) IS THE WORLD’S LARGEST PROFESSIONAL ASSOCIATION DEDICATED TO ISSUES RELEVANT TO THE MANAGEMENT OF PUBLIC ASSEMBLY VENUES. MEMBERS OF THE ASSOCIATION MANAGE PUBLIC ASSEMBLY VENUES SUCH AS AMPHITHEATERS, ARENAS, AUDITORIUMS, CONVENTION CENTERS/EXHIBIT HALLS, PERFORMING ARTS VENUES, STADIUMS AND UNIVERSITY COMPLEXES; SOME PROVIDE PRODUCTS, SERVICES OR ATTRACTIONS TO SUPPORT THE INDUSTRY. IAVM HAS MORE THAN 3,500 MEMBERS WORLDWIDE. MORE INFORMATION IS AVAILABLE AT WWW.IAVM.ORG.

AT THE HELM

V

REGIONS Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 IAAM Europe

John Siehl

IAAM-VMA Asis/Pacific

HISTORY The International Association of Venue Managers (formerly Auditorium Managers) was founded in December 1924 by six enthusiastic building managers with a vision of the future of public assembly facility management. They met in Cleveland, Ohio, on December 27,1924, to discuss the important issues facing them and from that meeting came the Auditorium Managers Association. What grew from a dedication to the industry is now known as the International Association of Venue Managers, a worldwide organization that maintains the early commitment to their business and profession.

Membership growth in the last twenty years has paralleled a growing need for information, services and programs. To serve these interests and needs, the association relies on the voluntary efforts of many committees to assist its staff and board of directors.

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THE NETWORK | SEPT2011

Vicki Hawarden

icki Hawarden, CMP has been named President and Chief Executive Officer.

She replaces Dexter King, CFE, who announced his plans to retire in late 2010.

Hawarden has more than 20 years of association management experience, most recently having served as Vice President of Knowledge and Events with Meeting Professionals International (MPI). She has also served in executive positions with the National Recreation and Park Association, American Association of Blood Banks, and International Association for Exhibition Management. During her four-year tenure at Meeting Professionals International, Hawarden managed the global training, exhibit, education, research, publishing, and corporate social responsibility departments. She also led the team that rebranded and reinvented the “Professional Education Conference-North America” transforming it into a cutting edge and experimental conference called “MeetDifferent.”

“Vicki brings broad executive leadership, sound strategic vision and excellent tactical abilities to our organization,” said Chairman John Siehl, CFE. “She has a solid track record of establishing strong alliances with diverse partners, and creating innovative programs and improvements that produce desired results.”

“It is a privilege to be selected as IAVM’s next President and CEO,” said Hawarden.

“Venue managers have such an incredible responsibility, not only to help nurture the vitality and economic health of their communities, but also to ensure the safety and security of their guests. In many cases, venues also serve as shelters or gathering points during times of crisis, so it’s critical that IAVM provide its members with the right education and tools to do their jobs effectively. IAVM has a rich history of doing just that and one of my priorities is to extend IAVM’s reach deeper into the venue management community.”

SOME MEMBER FACILITIES

FedEx Forum - Memphis, TN

Arts Centre - Melbourne, Australia

Brisbane Convention Center - Brisbane, Australia

Ford Field - Detroit, Michigan

Brad Mayne, CFE LEGACY AWARD WINNER

T “A lot of fellows nowadays have a BA, MA or Ph.D. Unfortunately they don’t have a J-O-B.” (Fats Domino)

he International Association of Venue Managers Foundation (IAVMF) announced Brad Mayne, CFE as the recipient of the Legacy Award at its VenueConnect 2011 in Phoenix, AZ on July 25, 2011.

The Legacy Award is the only award presented by the IAVM Foundation. Its purpose is to recognize significant financial or nonfinancial contributions by an individual or company which support the mission and objectives of the Foundation and a legacy for the advancement of the venue management industry.

“Brad is a true unsung hero in our industry. He has gone above and beyond in representing the Foundation and putting his money where his mouth is. This award could not go to a more deserving individual,” said Mich Sauers, Senior Vice President, Comcast-Spectacor and Chair of the IAVM Foundation Chair’s Advisory Council. Mayne has been a member of IAVM since 1987, earning his CFE in 1997.

“A donation to the IAVM Foundation has always been an investment in my professional development…. I would not be as successful in my career without the IAVM programs…. I am honored to be recognized for working with the industry professionals in raising funds to invest in our collective future,” said Mayne, who is the President/CEO of the American Airlines Center in Dallas. •

Phoenix Convention Center

STATE-OF-THE-ART TOOL At VenueConnect, 86th Annual Conference & Trade Show in Phoenix in July, the IAVM announced the debut of VenueDataSource, an integrated online portal with quick access to the information venue managers and industry partners need to make strategic business decisions. Expected to be the research portal of the venue management industry worldwide, the database will provide members with information such as overhead cost comparisons and marketplace evaluation for performance measurement.

“Venue industry professionals are under constant pressure to outperform previous efforts. Without pertinent, reliable business intelligence, managing the bottom line performance can be a trial and error affair, said Barry J. Strafacci, Chair, IAVM Research and Knowledge Advancement Council. “VenueDataSource mitigates the risk. This ’go-to’ decision-making tool will be the ultimate resource for quality data comparison and analysis, allowing users to benchmark current performance with their peers.”

For more information, visit VenueDataSource.org.

SEPT2011 | THE NETWORK

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GENERAL ASSEMBLY CB RICHARD ELLIS

Marketview

DALLAS/FORT WORTH OFFICE

F

ollowing a respectable quarter to commence 2011, the Dallas/Fort Worth office market coasted through spring with moderate, but steady activity. The DFW office leasing market closed the quarter with positive net absorption and another decrease in overall vacancy.

Average asking lease rates took a larger downturn than the previous quarter’s drop.

The DFW office investment market held its standing as the 10th most active capital market in the nation, reporting approximately over $500 million in closings year-to-date for properties and portfolios valued at $5 million or greater, according to Real Capital Analytics. The average local sales price within the past 12 months currently stands at $111 PSF, versus the national mean of $220 PSF, both slightly lower than their 1Q11 levels. Similarly, cap rates by the same measurement have been averaging about 7.6%, while the total U.S. figure is closer to 7.5%. For Dallas/Fort Worth, cap rates of stabilized Class A properties have generally decreased by more than 200 bps since early 2010.

Strong demand for these core trophy assets has resulted in a scarcity premium for the relatively small pool of such offerings left in the market, with continued interest in distressed assets, especially those that have already foreclosed. •

Vacancy Rate vs. Lease Rate

Market Statistics

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THE NETWORK | SEPT2011

SECOND QUARTER 2011

CB RICHARD ELLIS

SECOND QUARTER 2011

Marketview

DALLAS/FORT WORTH INDUSTRIAL

M

idway through 2011, the Dallas/Fort Worth industrial market continues on the road to recovery. For the third consecutive quarter, net absorption has increased and vacancy rates have declined. At mid-year 2011, the direct and total vacancy rates have dropped to 10.7% and 10.9%, respectively. Total net absorption has increased to 3.4 million SF, which is an improvement of 0.57 million SF over last quarter’s posting.

Industrial real estate professionals continue to note a boost in leasing activity as more local companies seek new space requirements in response to improving economic conditions in the Metroplex. Smaller tenants have been the primary contributors to this influx of leasing activity in the second quarter, while deals of over 100,000 square feet have been slower to pick up the pace.

However, Dallas/Fort Worth’s industrial sectors are gaining strength and are forecasted to grow throughout the next few years, providing the force necessary to drive demand for industrial space upward from both small and large tenants alike. CBRE Econometric Advisors predicts that employment in the transportation & warehousing, manufacturing, and wholesale trade industries will grow at a faster rate in Dallas/Fort Worth than in the United States from 2011-2016, resulting in a gain of 25,400 industrial-related jobs during the next five years in DFW. •

Vacancy Rate vs. Lease Rate

Market Statistics

SEPT2011 | THE NETWORK

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MILES BETWEEN CITIES 36

Houston San Antonio Dallas Austin Fort Worth El Paso

6,532,724 6,116,371

Austin

161

81

196

San Antonio

Houston

Compiled from various sources.

THE LARGEST CITIES IN THE US BY AREA (sq mi)

(sq mi)

9. Houston 627.5 13. San Antonio 466.7 18. Dallas 385.8

19. Fort Worth 347.9 26. Austin 305.1 29. El Paso 256.3

2,207,612 1,783,974 820,949

199

266 278

745

2,099,451 1,327,407 1,197,816 790,390 741,206 649,121

METROPOLITAN AREA 7/1/11 ESTIMATED 4. Dallas/Ft Worth 5. Houston 24. San Antonio/ New Braunfels 35. Austin/ Round Rock 65. El Paso

553

(source: Wikipedia)

DIVERSI NS MEDICAL DAFFYNITIONS

When You’re in the Hospittle » ARTERY: The study of painting » BACTERIA: The back door of the cafeteria » BARIUM: What doctors do when their patients die » BOWEL: A letter like A, E, I, O or U » CAUTERIZE: To make eye contact with a girl » FIBULA: A small lie » NODE: Was aware of 38

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242

4.

7.

9.

15.

17.

22.

El Paso

4 26

THE LARGEST CITIES IN THE US BY POPULATION (2010)

608

638

Dallas

187

Fort Worth

» OUTPATIENT: A patient who fainted » RECOVERY ROOM: A place to do upholstery » SEIZURE: A Roman emperor » URINE: Opposite of “you’re out” » VARICOSE: Nearby » SECRETION: Something you don’t want anyone to know » VEIN: Conceited

THE TRINITY TRUST HOSTS MAYOR RAWLINGS world-class bridge is being constructed to seamlessly connect Singleton Boulevard in West Dallas to Woodall Rodgers in downtown Dallas. Visit www. mhhbridgecelebration.com.

“I am” is reportedly the shortest sentence in the English language. Could it be that “I do” is the longest sentence? (George Carlin)

Photo by Dana Driensky

D

ays after Mike Rawlings was elected mayor of Dallas, The Trinity Trust held a reception to welcome him to his new job. More than 100 people came.

Dr. Gail Thomas, president and CEO of The Trinity Trust, welcomed everyone and Mayor Rawlings spoke. “It’s fitting that we’re here at The Trinity Center with the bridge models, the large model and map of The Trinity project, all of which reminds us of the scope of this visionary project. One of my main goals as mayor will be to ensure our citizens that The Trinity Project will be done.

“The Trinity River Corridor Project will have more impact on commercial real estate and development than any other project in Dallas’s history. There are also endless educational opportunities. The corridor will become one very large outdoor classroom. And of course, recreational opportunities abound: biking, hiking, kayaking, canoeing, horseback riding and walking. “And have you seen Santiago Calatrava’s handiwork? The Margaret Hunt Hill Bridge is beautiful and will open in March 2012.

“We need to understand and believe in the future of the Trinity River, that it’s real and doable. We need to break down the project in manageable pieces. We must have a team and a sense of urgency, and quality, but done quickly.

Finally, we must create lines of communication between all of us and work together.”

THE TRINITY PROJECT is the most ambi-

tious public works project in the nation, one that is transforming Dallas. The Trinity Trust raises private funds and public awareness to implement the Balanced Vision Plan for The Trinity project in conjunction with the City of Dallas. For more information, visit www.the trinitytrust.org. •

(L-R) Dallas Mayor Mike Rawlings, Dr. Gail Thomas, president and CEO of The Trinity Trust; John Crawford, President/CEO, Downtown Dallas

THE MARGARET HUNT HILL BRIDGE is the first steel bridge

across the Trinity River was designed by internationally renowned artist, architect and engineer Santiago Calatrava of Spain. It is his first vehicular bridge in the United States. The

The Margaret Hunt Hill Bridge

SEPT2011 | THE NETWORK

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28 Wonders

Once upon a time (historically speaking), the 7 Wonders of the World was a listing of seven sites known to the ancient Greeks as the most notable places in their (known) world.

OF THE WORLD 1 THE ORIGINAL SEVEN WONDERS OF THE WORLD

2 3

1 The Colossus of Rhodes 2 The Great Pyramid of Giza 3 The Hanging Gardens of Babylon 4 The Lighthouse of Alexandria 5 The Mausoleum at Halicarnassus 6 The Statue of Zeus at Olympia 7 The Temple of Artemis at Ephesus Since then, many have developed copycat lists, but the only one that has stood the test of time was developed by the American Society of Civil Engineers.

SEVEN MANMADE WONDERS OF THE MODERN WORLD

6 4

8 Channel Tunnel 9 CN Tower 10 Empire State Building 11 Golden Gate Bridge 12 Itaipu Dam 13 Netherlands North Sea Protection Works 14 Panama Canal

7 5 9

11

8

10 12

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THE NETWORK | SEPT2011

13

14

18 15

20

16

19 21

17 22

On 7-7-07, an organization announced a “new” list based on online voting from around the world.

THE “NEW” SEVEN WONDERS OF THE WORLD

23

15 Chichen Itza, Mexico - Mayan City 16 Christ Redeemer, Brazil - Large Statue 17 The Great Wall, China 18 Machu Picchu, Peru 19 Petra, Jordan - Ancient City 20 The Roman Colosseum, Italy 21 The Taj Mahal, India

24

Perhaps because of a tradition of listing “7” spectacular features or accomplishments (e.g., the Seven Seas, the Seven Man-made Wonders of the World, Seven Continents and the SevenAncient Wonders of the World) it is not surprising that that number comes up in considering nature’s wonders.

25

SEVEN NATURAL WONDERS OF THE WORLD 22 Aurora Borealis 23 Grand Canyon 24 Paricutin Volcano 25 Victoria Falls 26 Great Barrier Reef 27 Mount Everest (in Nepal) 28 Harbor of Rio de Janeiro

27

WHY STOP THERE?

In fact, N7W (www.new7wonders.com) has 28 New 7-Wonders of the World finalists and they invite your vote – in 8 different languages. Some of them have been around a while (pun intended) like The Grand Canyon but others (although they too have been around a long time) are new to the ‘lists’ – like the a) Dead Sea, b) Mt. Kilimanjaro, and the c) Maldives just to name (and picture) a few. It’s definitely worth your click! •

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28

B A

C SEPT2011 | THE NETWORK

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THE BRIDGE

THE DALLAS COMMUNITY BENEFITS FROM THE BRIDGE IN MANY WAYS

Most notably, The Bridge will fulfill its mission by leveraging the good work of nonprofit agencies and public services to...

• Close the gap between homeless individuals and crisis response, housing and case management services, • Mentor clients’ transitions into their own homes, • Address clients’ mental illness and substance abuse disorders collaboratively, • Realize dynamic public/private partnerships to solve community problems that revitalize our city and the least of its citizens.

THE BRIDGE IS DALLAS’S PLAN...

to provide a nationally unique multi-purpose facility to solve the problem of homelessness and get people back on their feet and into appropriate homes. The plan is working.

More individuals experiencing homelessness are being served at The Bridge than ever dreamed but it is paying off in many ways: • More than 1,000 individuals experiencing homelessness placed in permanent or affordable housing.

• Almost 2,000 individuals experiencing homelessness have received employment.

• Crime in downtown Dallas has been reduced by 20% since May of 2008.

• Residential population of downtown has tripled. •

THE BRIDGE HAS BEEN FEATURED IN THIS PUBLICATION AS THE WINNER OF A CLIDE AWARD AND AS THE RECIPIENT OF ARCHITECTURAL RECOGNITION. IT WAS ALSO THE RECIPIENT OF ALL PROCEEDS FROM THE PHOTOGRAPHY BOOTH AT crest EX PO 2011.

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LOVE GEORGE; HATE WASHINGTON

» The father of our country was actually born on February 11, 1732, but England changed the calendar (from Julian to Gregorian) in 1751. This added 11 days to the year and old GW had to celebrate his birthday on the 22nd (the date we remember). » On March 4, 1793, Washington gave what is still the shortest inaugural speech ever. It lasted about 90 seconds and had only 135 words. (Supposedly he was having denture problems.)

42

THE NETWORK | SEPT2011

An infracaninophile is a person who champions or favors the underdog.

O

pened in May 2008, The Bridge is a multi-purpose facility based on a unique publicprivate partnership dedicated to serving adults experiencing homelessness.

• The Bridge is the dynamic entry point and serves day and night shelter services to over 1,200 individuals per day.

• Along with partner agencies, The Bridge provides care coordination, primary and behavioral health care services, and job and income seeker services.

• Day shelter services include meals (3 meals/7 days a week), storage, hygiene kits, showers, and even kennel services for Bridge residents with dogs.

• Night shelter services include emergency shelter for 225 individuals and transitional shelter for 100 individuals per night.

• The Bridge continues to shelter and stabilize individuals transitioning from Dallas County hospitals and jails.

• The milieu is designed to return hope and respect to individuals experiencing homelessness.

THE SUM OF THE PARTS . . .

T

he Dallas–Fort Worth–Arlington metropolitan area, a title designated by the US Census as of 2003, encompasses 12 counties within Texas. It is subdivided into two metropolitan divisions: Dallas–Plano–Irving and Fort Worth–Arlington. The Metroplex (or DFW) is the economic and cultural hub of North Texas.

During the period from July 2008 through June 2009, the area gained 146,530 new residents (more than any other metropolitan area in the US). The area’s population has grown by nearly 1.3 million since the last census in 2000 and reached 6,447,615 in July 2009. Our metropolitan statistical area is the largest in Texas and the 4th largest in the nation. It includes 9,286 square miles of total area: 8,991 sq mi is land and 295 sq mi is water, making it larger in area than Rhode Island and Connecticut combined. It is the 4th largest metropolitan area by population.

The Economic Development Corporations of the cities in our 12 county area are the building blocks of what makes the region strong. •

2009 Mone y Magazine Best Places to Live Ranked 24th in the nation!

For your family, for your business, for your life!

SEPT2011 | THE NETWORK

43

AMAZING BUILDINGS

ENVISIONING THE NEW

Parkland Edited by Julien Meyrat

A Collaborative Design for the Community

44

THE NETWORK | SEPT2011

JULIEN MEYRAT

jmeyrat@rtkl.com Julien Meyrat of RTKL Associates is a registered architect, a LEED Accredited Professional and the Chair of the Ken Roberts Memorial Delineation Competition.

A

merica’s largest (and among its most innovative hospital projects) is currently underway at the intersection of Harry Hines and Medical District Drive in Dallas. On November 2008, Dallas county voters overwhelmingly approved a bond package to help fund construction of a new $1.27 billion facility that will replace the existing fifty-five year-old Parkland Hospital. A joint team (comprised of the Omaha and Dallas offices of HDR Architecture and Dallas-based Corgan Associates) was selected to design the 2.5 million square feet project, which will include an 862-bed inpatient hospital, outpatient center, parking and central utility plant. The team’s three lead design architects—Jim Henry and Tom Trenolone of HDR, and Chuck Armstrong of Corgan—graciously offered to share their thoughts about project.

When the client selected the design team for the new hospital, how did HDR and Corgan make the case that this was the best one?

JIM: We recognized that we needed to be a joint venture to win this project because no one firm could go in and meet all the requirements of a project of this scale. We recognized many of the strengths Corgan had (for example, they just successfully finished several bond programs as well as the DFW airport terminal D) and Corgan recognized HDR’s global healthcare design reach. Being that this project is such a “mega project,” only a handful of firms had the experience to take on the project—together.

Since both firms contributed to the new Parkland’s design, how were the responsibilities shared in the design team under this allied structure?

CHUCK: When we created the joint venture, we were asked as part of the interview process to submit illustrations of what the project might look like. We took that as an opportunity—and under HDR’s leadership—we held a big design charrette that pulled in design resources from throughout the country. We created a preliminary design to use as the basis of the interview. So, even before we actually won the project, we were able to convene as a unified team and create a very collaborative atmosphere. We split the documentation halves into two groups: core and shell, and interiors/clinical/ technical spaces. Corgan led the core and shell and HDR led the interiors/clinical/technical spaces.

TOM: As far as the design teams are considered, we had Corgan personnel embedded with the HDR teams, and vice versa. In the true nature of a joint venture, we aren’t looking at our design team as two firms—we’re one firm.

The new hospital’s exterior can be described as simple and sleek, almost betraying all the various viewpoints inherent in an allied design team. How did you all agree to this approach?

JIM: Trying to minimize the footprint of a 2 million square foot, 17 story high building is no easy task. But with the patient experience in mind, we brought everything down to a human scale—creating a structure that is monolithic, but also very approachable.

One strategy involved breaking down the building into usable components. Imagine a two million square foot rectangular building made up of one component. The building would be intimidating, confusing to navigate, and contradictory to the mission of a hospital.

CHUCK: The exterior massing of the hospital, as well as the overall master plan, assigns forms as a functional expression of what’s inside the hospital. For instance, the Women and Infant Services (WISH) inpatient tower is a separate “bar” building that stretches across the esplanade and makes a physical gesture towards Children’s Medical Center. The Medical tower is also represented as a “bar” building that spans the length of the diagnostic and treatment podium, while the mid-level tower represents the Parkland Trauma Institute.

These iconic elements give a scale and description to the function of the building, helping make it more understandable in its formal representation to those using it.

TOM: The bottom line with Parkland is that it was designed to be efficient. Everything in the hospital does what it does because it needs to do it that way.

We didn’t implement any aspect of the design just for looks—everything is there for a purpose.

Explain the concept of ‘hospital in a park’.

How did the team arrive at this concept? Is it very different from the status quo in hospital planning?

CHUCK: We can’t actually take credit for the hospital in the park concept. It’s important to know that the name Parkland came about because the first modern county hospital in Dallas—in the 1890s—was built on a site that had formerly been a park. Parkland as an institution, up until it was replaced in the 1950s, was just a classic sanatorium of a hospital that was sited on a very large tract of land with a beautiful lawn filled with trees. Subsequent to that, we made it a big point to make a park the functional working part of Parkland hospital.

TOM: The building is based around a lot of navigation—so we set out to have the parks do the same. Specifically, this inspired the concept of linear parks. The linear parks are central to the hospitals focus on navigation—meaning that visitors can easily access and travel through the parks easily with the help of visual cues. Facilitating the linear parks, and basically driving the entire site design, is a long diagonal axis (an esplanade) that acts as the central spine to the site. The esplanade offers better orientation and connectivity to UTSW, Children’s Medical Center, and the overall district.

How does this distinctively modern design reflect the history, mission and values of Parkland?

CHUCK: As far as the mission and values go, Parkland, despite the limitations of their physical building that they’ve been in since 1955, has been

SEPT2011 | THE NETWORK

45

AMAZING BUILDINGS

one of the hallmarks of public healthcare in their cutting-edge process and track record in certain areas of excellence. So what we wanted to do was put together a project from a clinical perspective that would complement the mission and give the hospital a much better building to work from. Architecturally we have expressed a graphic on the curtain wall that will incorporate the names of the taxpayers of Dallas County. The graphic is representative of the trees that you’d see in Dallas. The glass curtain wall is also designed to shade gradually, both horizontally and vertically, from dark gray to white. This shading is a symbolical transition from summer into winter—and connects all of us to the transition of life.

JIM: What the client asked us to do was to define the new standards for public healthcare. They understand that they only get a shot to do this every 50 years or so. The hospital is also aligned with the UT Southwestern Medical District, which is a big teaching institution out here and a world-renowned medical education system.

It should also be noted that we are on time and under budget right now—so being good stewards of the tax payers money and exceeding project goals has always been on the forefront of our minds.

CHUCK: From a patient experience perspective, the new Parkland Hospital Design Vision Statement simply states, “The new Parkland Hospital will be a safe, welcoming, and patientcentered healing environment that serves as a sustainable resource for Dallas County.” A key step in realizing this vision was the creation of Parkland’s Patient and Family Advisory Committee (PFAC), comprised of Parkland staff, patients, and family members of current and former patients. This committee helped us tell the patient story—a story that begins the moment a patient accesses a hospital.

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THE NETWORK | SEPT2011

Are there particular planning or architectural innovations featured in this project type that may influence future hospitals?

What strategies were implemented to make it sustainable?

JIM: The building is completely set up on a module—a 30x30 grid—which we think is great flexibility for the future. Nearly all the design decisions that went into the clinical components of the hospital were influenced by evidence-based design. Each of the patient rooms are same-handed, meaning that each room is nearly identical, which decreases medical errors and eliminates the need for excessive training for different room types. Each room is also acuity adaptable, meaning it can be adjusted to meet the needs of patients if the severity of their illness increases or decreases.

We instituted the idea of on-stage/off-stage areas throughout the hospital—so there is total separation of the public from the private, backside of the hospital.

TOM: Both HDR and Corgan make an effort to implement sustainable design into every building we create, but this was especially important for a building of this scale. Energy efficiency, more sustainable materials and a more natural campus were a part of the design from the beginning. We also built in more flexibility, making operations cheaper and less energyintense and future expansions easier. This of course only scratches the surface, but we anticipate the new building receiving LEED silver, or maybe even gold, certification from the U.S. Green Building Council.

What advantages does the hospital’s distinctive curtain wall envelope bring to the hospital’s function?

CHUCK: From an exterior point of view, it’s very clean and maintainable—and that’s one of the

things we thought about as a premise. We felt that a building devoted to healthcare functionality should present it’s best, cleanest, and newest image. Also, from a cost benefit point of view--right now where the market is in construction here in Dallas--we could do this building in that most durable finish in that most durable approach at a better price than you’ll ever probably see again.

TOM: And the glass also really matches the skyline. If you think about it, the progressive nature of Dallas is that the skyline is modern—and that’s what we wanted Parkland to match—we wanted it to fit into its context. The new hospital is intended to be an anchor for a new development that’s happening in the medical district, and we felt it was important for this building to represent the city.

Now that the hospital is under construction, how does the design team maintain its unity and overseeing and reviewing its execution?

JIM: It’s important to note that we were co-located up until the CDs went out the door—with the contractor and the owner. We truly believe that co-location was a key step in creating a truly unified project team. Having project team members working in the same space provided us with the answers, solutions and knowledge necessary to make design decisions in real-time.

CHUCK: I think the primary benefits of colocation rest in the project cost and schedule.

Estimators are in the space daily to inform the design team on any changes in cost that result from design decisions. The estimators, coupled with the proximity of the project team, then keep the project on schedule as conflicts in design are resolved immediately rather than later.

The phrase “you can’t solve a problem with the same mind that created it” is true. •

Parkland HOSPITAL GARAGE A Preview of the Hospital’s New Front Door

T

he first major component of the new Parkland Hospital project, a nine-story, 2,000 parking space structured garage, is currently nearing completion. It will service Parkland’s new patient bed facility, outpatient center, and medical office. Dallas-based firm Omniplan, architects of the original Northpark Center, realized an efficient design that employs innovative technologies and fits into its emergent urban context.

Having recently completed a parking expansion at that same mall a few years ago, the design team sought to transfer lessons from that experience towards the design of this utilitarian building type.

According to Omniplan Associate Principal Philip Jones, one of the major guiding concepts in the design of the garage was to instill a feeling of welcome. For most people, the parking garage serves as the “front door” to a large building, since it is often the user’s first real encounter with a building on its way to the final destination. Borrowing from their design for the new parking structure at North Park, one means of achieving this sense of welcome was to establish a relatively tall ground floor. At a floor-to floor height of 17 feet, this dimension enables generous sightlines and comfortably accommodates preferred ceiling heights for the retail spaces planned along the base of the garage’s north façade.

This retail component also enhances the garage’s urban role within the core of the emerging Parkland medical district. It forms the south edge of a large garden space partly nestled within the new hospital’s intersecting patient tower blocks to the north and west. A tall multi-story façade above the retail podium complements the sleek volumes that define new Parkland’s architectural language; featuring an elegant composition made of glass, aluminum composite panels, decorative metal grate, precast concrete, and topped with a light canopy consisting of photovoltaic panels. These panels are part of other sustainable strategies implemented that will earn the garage at minimum a LEED silver rating. In addition to locally generating a portion of the

energy for operation through its photovoltaic array at the top, the rest of the garage’s energy demand will be met by remote alternative energy sources.

The design no longer specifies high-intensity-discharge (HID) lamps commonly found in this building type, opting instead for much more efficient LED light fixtures to illuminate interior spaces throughout.

Omniplan’s efforts to make the garage more open and inviting ensures that users feel secure at all times thus enjoying an overall sense of ease. Considering the inherent stresses on workers and visitors in Dallas County’s main trauma and surgical center, it benefits users of the garage to be able to effortlessly navigate through it. Upon arrival, LED signs indicate the number and location of available parking spots, relieving drivers the tedium and time spent parking. With the assistance of traffic consultants from the Deshazo Group, cars will be able to enter and leave rapidly through eight access lanes and ascend and descend down double-helix speed-ramps near the south end of structure. Once parked on the deck, people will be treated with abundant views to the outside, and elevators featuring glass cabs will permit passengers to look out through a glazed curtain wall. Upturned concrete beams along the edges of each of the garage’s eight floors help mask light beaming out from car headlights, preventing unwanted glare into the patient rooms nearby. Along with glass-enclosed stairwells, these strategies contribute to an intuitive system of way-finding and orientation often neglected in large parking structures.

As opening day for the garage approaches, Omniplan Associate Dan Vlach, the project architect, is currently managing its design intent and addressing any remaining architectural issues. Meeting the end-of-year deadline will be important, as it will allow the demolition of the existing main parking garage to make way for further phases of the overall Parkland hospital project that still need to be constructed. All phases are scheduled to be completed in 2014. •

COMING NEXT ISSUE BIG - WEST 57TH, NEW YORK

Bjark Ingels Group (BIG) of Denmark has been selected to design a mixed-use project on West 57th in Manhattan.

47

THE LINKS DIRECTORY Accessibility

Disaster Recovery

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Business Development

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1601 Luna Road CONSTRUCTION Carrollton, TX 75006 CONSULTING phone 972-466-1103 INTERNATIONAL fax 972-245-6047

CCI standard services include:

www.sunited.com

gblackburn@sunited.com

• New Construction Design Peer Review and QC Inspections • Building Envelope Condition Survey for Due Diligence, Maintenance Budget, and Water Penetration Bryan S. Stevens, CSI • Remediation Design, Project Management, and QC Inspections President • Forensic Investigation Reports, Deposition, and Trial Testimony George M. Blackburn III, AIA • Storm Damage Analysis and Restoration Management Consulting Manager • Borescope Inspection of Wall Cavity • Davit and Tieback OSHA Testing and Certification Andy Wilson Laboratory Manager • On-Site ASTM Standard Curtain Wall and Window Leak Testing

62

THE NETWORK | DEC2011

Fountains

Janitorial - services, supplies, systems

Furniture

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DIVERSI NS

ONELINER

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DEC2011 | THE NETWORK

63

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DIVERSI NS

FOREIGN MISSTATEMENTS

» Advertisement for donkey rides, Thailand:

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PERSONS ARE PROHIBITED FROM PICKING FLOWERS FROM ANY BUT THEIR OWN GRAVES.

64

THE NETWORK | DEC2011

ANSWERS FOR P. 24 1 d Popularized in 1975 by Patty LuBelle and the Blue Bells (later known as Labelle), the song was entitled ‘Lady Marmalade’.

2 c 3 d 4 d 5 b 6 a

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ANSWERS TO LAST CONTEST ...

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