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BUILDINGS NEWS Bay Area March/April 2014 BOMA’s New Innovative EARTH Award Winners Flooring Trends: Greener, More Stylish Tech Enhances Your Hotel Experience How Green is Your Building? ...and How Green Does It Need to Be?

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Page 1: Babn march:april

BUILDINGS NEWSBay Area

March/April 2014

BOMA’s New

Innovative EARTH

Award Winners

Flooring Trends:

Greener, More Stylish

Tech EnhancesYour Hotel Experience

How Green is Your Building?...and How Green

Does It Need to Be?

Page 2: Babn march:april

BUILDINGS NEWSBay Area

Features

Hotels Chase Tech to Pursue

Better Guest Experiences

Major Contractor Says Cost to

Build Green Can Be Recouped7

How Building Managers

Can Plan for Title 2415

How Green is Your Building? 8

Greener Parking Garages

Can Slash Energy Costs10

Being Green Advocates

Enhances Managers’ Careers

17

21

Bay Area Buildings News Team

Zachary Brown, CBREBob Eaton, Eaton Hospitality InvestmentsNancy Gille, REAL SystemsDavid Hysinger, San Francisco State

University College of BusinessRich Lerner, Construction ConsultantKatherine A. Mattes, Real Estate ConsultantCarlos Santamaria, Glenborough LLC

Editorial Board

Advertising Information

Henry Eason, Editor

[email protected] Eason, Associate Publisher & Art Director

[email protected]

© Copyright 2014 Eason Communications LLC425 Market Street, Suite 2200San Francisco, CA 94105 • 415.242.5244

Ellen Eason, [email protected]

It may be argued that San Francisco’scommercial buildings are the most sus-tainably built and operated in the country,but that certainly doesn’t mean that The City has achieved opti-mal green goals. All you have to do is walk down streets in SanFrancisco, Oakland, San Jose or any city in the Bay Area to noticethat the majority of buildings do not proudly display LEED orBOMA 360 plaques.

In spite of federal, state and local governments’ sustainabilityleadership—as well as that of all buildings major industry associ-ations—we still have a tremendous amount of work to do toreduce buildings’ energy and waste. Check out some of the statis-tics in this issue’s cover story “How Green Is Your Building?” Theanswer is, in most cases, not very green.

Many seem weary of sustainability campaigns and unwilling to invest in future savings. One top industry executive told merecently, “I’m really tired of green.” It’s understandable, since it seems like every company advertises that its products and serv-ices are somehow “green.” And yet we cannot reduce our effortsto achieve a more sustainable world. We must applaud the con-tinuing efforts of such programs as the Bay Area Building Ownersand Managers Associations’ “Innovative EARTH Awards” andother groups’ initiatives.

We’ve got more than a century of Earth-unfriendly behavior tocorrect. Let’s just hope it doesn’t take that long to make amends.

Green…Sustainable…What’s Next?Anyone who was made to read Chaucer’s Canterbury Tales has

a pretty good idea of how language constantly evolves. Often thesame thing goes through many naming fads. When I first startedcovering such topics as a Washington newspaper correspondentback in the 1970s, the word “ecology” was much in vogue as aword to rally folks against pollution. But ecology was way toobroad, so we narrowed it down to “environment,” but after a whilethat became too encompassing and could mean bad environmentas well as good. Then we got more poetic and began referring toactivities that would result in a less polluted world as “green.” Afew years ago we got more philosophical—perhaps even sociolog-ical— and started using the word “sustainability,” in spite of itsvague and multi-syllabic tone. Later “clean” emerged in our lexi-con. That made sense too—short, sweet, opposite of dirty. “Earth”is often used in various ways, usually as an adjective.

The use of any of these words gets traction, of course, butthere are semantic problems with all of them if you debate themover a few beers, and some folks get passionate in their advocacyof one or the other. To me, a nature lover who bemoans the pas-sage of a more pastoral era and the rise of a brown industrial age,I like the enduring word “green.” It’s good enough for the U.S.Green Building Council, and it’s also my favorite color. But I’mopen to next year’s word, whatever that may be.— Henry Eason, Editor Members of: BOMA, IFMA, IREM, SMPS, SPUR.

www.baybuildingsnews.com

We Are Not Yet Green

Antiterrorism Engineer

Says No Region is Safe,

But All Areas Can Be Safer

19

Bay Area Buildings

Recognized for Innovations12

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Flooring Trends: Greener, Sturdier and More StylishThe increasingly bike-to-work ethos of downtown San Francisco is great for the environ-

ment and accommodates the lifestyle of the city’s droves of new tech workers, but black

rubber tires can be rough on floors. Knowing that, the renovation team at 799 Market Street

decided on polished concrete flooring in the remodeled office lobby, but they also wanted

flooring that was attractive and in sync with the industrial chic that appeals to young

techies. So Baker’s Floor Care and GCI General Contractors chose Ardex PC-T topping to

implement architect Gensler’s design vision. (Continued on page 4)

Background photo: floor in 799 Market Street lobby using Ardex PC-T topping.(Photo credit: Alyssa Tomfohrde.)

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Bay Area Buildings News • March/April 2014

“This durable (Ardex) flooring finish is a smart choicefor the tenants who often ride their bicycles to work. Thelobby also includes a gallery-like bike wall installationwhich represents these tenants well. When an existing concrete flooring or structure cannot be finished as desireddue to issues such as the floor leveling, flatness, or composi-tion, the addition of a topping surface is another greatoption and it can provide a more consistent finish. Thislobby and its flooring represent the popular design aestheticof expressing raw materials being used and contrasting themagainst other more modern finishes,” says GCI ProjectManager Kyle Larson.

“Ardex PC-T produces a very high-end decorative, industrial look, and the maintenance cost is much lower,”says Chris Baker, whose floor care company installed theproduct.

Sustainability is also a major theme in flooring productnews, particularly with the introduction by Mats Inc. toNorth America this year of a new class of products madeaccording to a German-invented formula called PURLINEunder the wineo® umbrella brand of flooring—comprisedalmost entirely of organic materials.

Using a combination of natural ingredients and science,inventor Matthias Windmöller did not start with a baseflooring product and then adjust or replace ingredients. Hewent back to the drawing board to test plants, formulationsand processes. With advanced technology and precisionengineering, Windmöller produced a new class of flooringwith nearly 90% renewable and natural raw materials, aftermore than six years of research and development.

Made from of rapaseed, castor oil and the natural fillermaterial chalk, PURLINE is extremely durable with a molecular surface structure that is tenaciously stain- andwear-resistant and therefore easy to clean and maintain. Itssimple maintenance requirements do not involve finishing,waxing, buffing or stripping and allow for time and cost savings in even the most demanding healthcare environ-ments and public buildings. And it’s said to be easy to installand requires much less water and care products.

The PURLINE commercial flooring collection features abroad range of dramatic color and a wide variety of neutraltones and patterns that are ideal for mixing and matching todefine spaces or create unique effects within high-trafficenvironments.

Fred West of Marble West says that, in spite of materialinnovations, natural stone continues to be popular.

“To this day Terrazzo enjoys a wide variety of uses notonly because of its infinite variety of patterns and colors, butits durability makes it a popular choice for public spaces likeairports, convention centers,” says West. “It is even beingutilized as an art form in the San Francisco Transbay

Terminal currently under construction in which a number of artists have designed artwork that will be part of the floorconstruction.”

West adds, “Present day usage of natural stone is stillprominent in commercial construction. Marble, granite,travertine, limestone, slate and sandstone are available and used in a much greater variety of colors, patterns andfinishes than before.”

While tradition and breakthroughs abound in hard sur-face flooring, McNevin Cleaning Specialists Vice PresidentsNate Osgood and Bill Nicolay say other innovations withgreat impact are in carpeting. Specifically, they say carpettiles made of recycled materials are becoming very common.“And luxury tile with custom designs and colors that lookgreat and are sustainable,” are popular, says Nicolay.

Carpet modules or tiles dominate in new flooring proj-ects, says Tom Jennings, vice president of the World FloorCovering Association—for many reasons—much more thanthe older broadloom carpeting methods. Many carpet tilesare recyclable, easily replaced, installed without much diffi-culty and can be used in a myriad of designs, says Jennings.“If you have a serious accident, you can restock stained oneswith a minimum of downtime.”

“Carpet tile continues to be popular in commercialdesign with its increased functionality and ease-of-mainte-nance benefits,” says Milliken’s Stacy Walker, director of customer experience for Milliken’s global floor covering divi-sion. “Designers are even taking the flexibility of modularcarpet one-step further and creating large patterns, in addi-tion to the original carpet design, by using color and strate-gically placing carpet tile in a space. Gradations of colorwith an ombré effect are very popular, as well as expansivepatterns,” says Walker. “An additional benefit of carpet tile

PURLINE Timber Missouri Oak flooring. (Photo courtesy of Mats Inc.)

Flooring (Continued from page 3)

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Bay Area Buildings News • March/April 2014

is that it can be easily switched for a different pattern orcolor. This allows designers and end users to have greaterflexibility and easily update office spaces over time.”

Other Sustainable Innovations in FlooringWood continues to maintain its place in commercial

markets and is used in interesting new ways.“Today, wood floor trends include featuringmulti-directional installations, non-linear patterns, multiple wood species, mixed media, darker species or finishes, wider planks, and distressed flooring,” says Michael Martin, presi-dent of the National Wood Flooring Association.

“Using gray stains or finishes that range fromsubtle to dark, even black, is an emerging trend.Mixed media combines wood with other flooringoptions like stone, tile, carpet, or even metal, fur-ther defining functional areas within the large,open-space floor plans. Installing wood floors in anon-linear format is increasingly popular. Customparquet patterns are one way to accomplish thislook, but installing the floor on a curved line, orfollowing the lines of other architecture in theroom, also achieves the non-linear appearance,”says Martin.

Wood, also sustainable, can be obtained inmany new and popular wide designs, such as those produced by Somerset. Its Wide Plank Collection is a newselection of flooring that includes Appalachian oak in 7”wide widths, and maple and hickory in 6” wide widths. All flooring in this collection is SolidPlus™ engineered con-struction, which features a 3mm thick solid dry sawn wearlayer, and is packaged in random lengths up to 6-1/2’’—sowhen installed, the appearance is the same as a traditional3/4” solid floor. The dimensional stability provided by engineered construction is the perfect choice for widerwidth plank, and the eco-sensible use of raw materials is anadded plus. It’s also available in a range of colors created tobe appealing to designers, such as natural red oak, natural

white oak, gunstock, colonial gray, midnight, maple mist,hickory toast and hickory saddle.

Another marked trend in flooring is bolder and moredramatic design—even in offices. “Commercial flooring is taking on the design characteristics of what would tradi-

tionally be categorized as hospitality flooring,” saysMilliken’s Walker. “Designers are expanding their use ofbold colors in office interiors and exploring alternate scaleswith creative use large of patterns, which infuses an ener-getic and innovative environment.”

Sustainable materials have gone beyond ethics to becomea necessity, in many cases. Mats Inc.’s Vice President JoAnnDurette says, “Over the last several years, product sustain-ability has taken on a whole new, all-inclusive meaning andproduct transparency has been added to building industry’svernacular thanks to Pharos, USGBC, HPD Collaborativeand other organizations. Now, with the launch of LEED v4during this past November, it is no longer enough to complywith low VOC emissions, include recycled content, excludechemicals of concern or be FloorScore certified. Productmanufacturers must now reveal all material ingredients andsources, detail production and distribution processes andauthenticate the facts with 3rd party verification.”

Specialized market-focused flooring solutions are alsoemerging, such as Mannington’s award-winning new productaimed at the healthcare industry. The product is calledEnlighten, a development in resilient sheet—in a PVC-freeformulation. Its polyolefin/rubber composite formulationprovides a vinyl alternative in a homogeneous sheet ideallysuited to the demands of healthcare spaces. Enlighten combines a strong aesthetic in the right gloss level with highperformance, low maintenance, comfort underfoot andenhanced acoustical properties.

Milliken’s carpet products incorporate bold colors and patterns that designers like to use intoday’s offices. (Photo courtesy of Milliken.)

Flooring Trends

• Carpet tiles: flexible and decorative

• High-gloss floors, polished concrete

• Larger format natural stone, colored

• Materials engineered from organic sources

• Reclaimed wood, wider floorboards

• Recycled parquet flooring

• Rustic, textured wood finishes

• Chic black slate

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Bay Area Buildings News • March/April 2014

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Bay Area Buildings News • March/April 2014

Since this issue focuses on green buildings, we should ask you toestimate the percentage of your clients that require some or all sustainable features in projects?Nearly all of our clients want sustainability integrated into their projects—certainly more than 80%. Our developer clients want to see it so theirbuildings are easier to market. Our corporate clients want to see itbecause it aligns with their corporate philosophy, can save money onoperating costs, and generally is the right thing to do.

Are your clients willing to accept higher costs to achieve green status? Given project features, how much more can a client expectto pay for a LEED designated office or building?

Most clients are willing to pay more for LEED, but the reality is most ofour projects are achieving LEED without any kind of noticeable costincrease. Projects that are simply targeting a goal of certified or Silver frequently don’t have additional construction cost, merely the cost of certification through the USGBC. When projects target a higher Gold or Platinum certification, we may start seeing a 1-5% premium on theconstruction costs. But even these additional first costs frequently reducethe operating and life cycle costs of the facility, and many clients are willing to make this investment.

Do you ever encounter clients who say that attaining higher levelsof LEED, like Gold or Platinum is too costly?

Absolutely. I have run into many clients who associate LEED and sustain-able construction as synonymous with expensive. I also find that when we educate clients with the real cost drivers of a project,many are surprised that the cost of a LEED Gold or Platinum facility is far lower than it was 10 years ago.

Your firm provides services to many sectors in the buildings industry. What are hottest: multifamily, offices, etc.?The corporate office and developer building rehabilitation projects seem to be the hottest markets. There are certainly a lot ofmulti-family projects going, and we are seeing more activity in both the healthcare and biotech markets. We are fortunate to be in the hottest market in the country.

In a recent issue of our magazine, a major architectural firm’s principal suggested that the open-office trend is actuallycounter-productive for workers, because it can distract them from focusing on their duties. What’s your take?

I’ve heard the criticism of the open office trend, and we believe the ideal workspace leverages both open and enclosed areas—creating spaces within the space. As someone who came from a closed office environment, I can attest that it takes a bit of gettingused to an open office plan. But our firm embraces the open office environment. It certainly allows more interaction and helpsbreak down the barriers between departments. I also like seeing our senior leaders more accessible to the entire staff. A balance of open and private spaces works well for our team.

What future plans do you foresee for BNBuilders?

We will continue on our vision to be recognized as a premier builder in the Bay Area for our key market segments—commercialoffice, developer campuses, healthcare, biotech, mission critical and education. We strive to be the most advanced in utilizingsmart technology in ways that allow us to deliver higher quality buildings to our clients at a lower cost. And we will continue toexpand in the San Francisco and Silicon Valley markets.

Major Contractor Says the Cost to Build

Green Spaces is Usually Recouped

Sean Truesdale of BNBuilders.

Sean Truesdale is a principal of BNBuilders, a West Coast general contractor that specializes in highly technical commercial construction projects.

Q&A with Sean Truesdale, Principal of BNBuilders

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Bay Area Buildings News • March/April 2014

8Gr

een

Build

ing

Focu

s

How green is your building? The short answer is—inspite of all the ad nauseam green-washing noise—veryfew buildings are said to be as sustainable by anyrespectable group. Of the nearly 5 million commercialfacilities in the United States, only 18,000 of them contain areas that are LEED Certified by the U.S. GreenBuilding Council, and there are only slightly more than700 BOMA 360-certified buildings nationwide. Of thetens of thousands of commercial buildings in the SanFrancisco Metropolitan Statistical Area, the USGBC saysfewer than 700 contain LEED or ENERGY STAR projects.

A great deal more work must be done to reduceenergy use and waste produced in the buildings wherewe work and live. We have just begun an effort that hasthe potential of significantly reducing building operat-ing costs and improving our environment, since build-ings use more than 40% of energy.

The World Business Council for SustainableDevelopment says that the global building sector needsto cut energy consumption in buildings by 60% by2050 to help meet global climate change targets. It says the building sector must achieve greater energyefficiency through a combination of public policies,technological innovation, informed customer choicesand smart business decisions.

So the question naturally follows: How green doesyour building need to be? It’s an important businessquestion—and a legal one now too—thanks not onlyto strong tenant demands but also because ofCalifornia’s comprehensive new Title 24 regulationsthat take effect in July. It’s a touchy subject, with a lot of folks posturing and others being very candid,because being “green,” depending on how you calculateit, can be expensive for building owners and tenants ora great way to save money.

In candid interviews with well-placed sourcesthroughout the buildings industry, the picture emerges

of efforts to achieve sustainable buildings operations that are complex and driven by many motivations.

Do You Need a Green Plaque? An executive with a firm that provides services to numerous and varied buildings says, “Not all tenants really

care about operating in green buildings. You might lose some trendy venture capital tenants or tech tenants, but by and large they just want to see you went for LEED and achieved it. However, you will see some nice costsavings over the life of your building between LEED Certified and LEED Silver. Even between LEED Gold versusLEED Silver, you will see some increased savings over the life of the building. Savings start to dissipate when yougo from Gold to Platinum. Getting Platinum is really just to brag about it, as most people don’t have it. The ini-tial cost of achieving Platinum is so large the ROI is not worth it to some clients—unless you are aiming for aGoogle or Facebook.”

“However,” the source continued, “to ensure occupant health is being properly looked after, it does help toget equipment in the building that utilizes HEPA filters to increase indoor air quality. It also helps to get low

The Cushman & Wakefield-managed Transamerica Pyramid recently attained the coveted U.S. Green Building Council’sPlatinum certification for practicing the highest level of sustain-ability in energy use and environmental design. Its green featuresinclude an onsite cogeneration plant, a program of reduced gas,electricity and water cost of $2.5 million over four years, 70% wastediversion, numerous LED lighting retrofits, enhanced buildingautomation and 12 EV charging stations.

How Green is Your

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Bay Area Buildings News • March/April 2014

VOC items placed in the buildings (saves money on out-gassing) and increase IAQ. Proper ventilation seems to be the new trend and it can save you loads of money on HVACsystems use. A green building is a high initial cost, butachieves long-term savings over the life of the building. Alsoyou can most likely avoid lawsuits against your buildingwith fewer toxins in the space. If a tenant gets sick due tooff-gassing of some chemical, they will sue the folks with themoney. More often than not, the building owner has moremoney than the janitorial company.”

In some cases, clients are intent on operating in green-certified buildings. CBRE broker Meade Boutwell says heoften gets client directions to only show them LEEDPlatinum spaces. “We recently did two deals specificallybecause they were LEED Platinum,” Boutwell said and addedthat tenants often ask him if a building has ever won anEARTH Award conferred by the Building Owners andManagers Association.

The USGBC’s LEED certifications and BOMA’s 360 programs—along with EPA’s ENERGY Star—are leaders inauthenticating levels of buildings’ sustainability. USGBC isfocused primarily on sustainable practices, and BOMA 360encompasses both sustainability and high building opera-tional standards.

Nevada Pacific Consulting’s Anne Sparks says, “Except for the General Services Administration or large corporationsthat specify a particular USGBC certification in its lease, thetypical, smaller tenants do not know LEED or care about thelevel of certification.”

“‘Green’ is assumed in Class-A California buildings,” saysSparks. “However, it is not always delivered. A Class-A build-ing has to provide, at a minimum, a clear recycling program,water-efficient fixtures and low/no VOC cleaning. Tenantswant clean building, but do not want to smell the ‘clean’(bleach, lemon, etc) that we used to associate with clean.They don’t understand HVAC and energy management, nordo they really want to participate.”

Many say there is a lot of confusion about ratings.“Ratings are not advertised and explained enough for tenantsto understand them,” continues East Bay-based Sparks. “Theydo not know that BOMA 360 rates the management companyversus the level of ‘greenness’. Very few of us research the different certifications that are out there in the world.”

“Here’s what it boils down to: You understand NASCAR.Winning cars have LOTS of sponsoring decals. Buildingswith LOTS of decals on the front doors look more importantthat those that do not. Our tenants probably do not knowwhat the decals mean, but it makes the building look reallygood and noteworthy,” she concluded.

Sustainability Imparts HR and Cost Benefits Most in the industry interviewed—like Facilities First

CEO Lois Steiner—seem to strive for higher levels of sus-tainability. “Whether we voluntarily provide buildings thatare green, or follow prescriptions provided by BOMA 360,the latest energy codes, the USGBC or even what level ofgreen to me is not the issue. I believe we as facilities and realestate professionals should be proactive leaders in providing,

rebuilding and initiating the absolute best in green technology, materials and practices that are available for ourcollective portfolios. Not only is it a ‘good consciousness’response, it is good business, promotes healthy environ-ments, and, incidentally is saving precious resources for ourchildren and our children’s children.”

Many say that being green is fast becoming a huge humanresources benefit. Increasingly people—particularly youngerworkers—want to be proud of their green workspace, andthey don’t want to work in unclean conditions. This is amajor issue in a talent-driven economy.

Larry Morgan is regional operational excellence and sustainability expert for North and Latin America for globalsoftware solutions firm SAP. Does Morgan think sustaina-bility certifications matter?

“I would say not to the extent that it is a game changerwhen it comes to leasing. What is a game changer is if thebuilding is as efficient as possible considering the infrastruc-ture requirements and related operational components.ENERGY STAR-rated building are sought after. The net for

Building?...Not Very Green, In Most Cases

(Continued on page 18)

Source: Center for Sustainable Systems, University of Michigan.

U.S. Commercial Sector Primary Energy End Use, 2011

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Bay Area Buildings News • March/April 2014

Having a cleaner planet is a great motive for greeningparking garages, but there are dramatic savings to be had as well. An Acuity Brands study showed that a 420,000-sfgarage cut annual energy use from $216,800 to $32,000 by instituting green best practices in lighting and ventila-tion. That got the attention of attendees at a Green ParkingCouncil event held recently in San Francisco and moder-ated by Cushman & Wakefield executive Steven Ring.

The council, organized by Propark CEO John Schmid,brought together the many players whose efforts arefocused on making parking more efficient. Mass transit,walking and biking are sure ways to make for a more sustainable world, but most people still use vehicles. Andthey have to be parked. So improvements in parking—from metered spaces to garages—have immense promise.

Companies like Acuity offer sustainable lighting solu-tions, making use of advanced wireless technology. NagleEnergy Solutions can vastly improve and lower garage ven-tilation costs. Nissan is fostering the spread of electriccharging stations in garages. The event drew in an impres-sive array of firms and consultants dedicated to making“mobility” more environmentally responsible.

San Francisco Municipal Transportation Authority’s“SFPark” program alerts drivers to available street parking

by installing sen-sors and partneringwith companiesthat create apps.SFMTA has alsoimproved metersand engineeredthem to acceptcredit cards with“demand-respon-sive” parking feesthat vary pricesaccording to usepatterns accordingto Jay Primus.

BMW is rethink-ing the wholeurban automotiveexperience, callingit “mobility,” a termthat’s gatheringmore adherence inthe industry asplayers try to think

more broadlyabout betterways people move about. Its DriveNow service offers a package of park-ing solutions thatrange from finding,booking, using anddropping off vehi-cles in a more convenient fashionthan some of itscompetitors to EVservices offered by ParkNow.

The Green Parking Council is an affiliate of theInternational Parking Institute. Its certification programcovers an array of topics on the management, technologyand structure design of parking garages. The council promotes sustainable power consumption, recycling programs, electric vehicle charging stations, more efficient lighting systems, alternative fuel vehicles, waterconservation, carpooling, vanpooling, hybrid vehicles,motorcycles and scooters, automated payment systemsand bicycle incentives.

Greener Parking Garages Can Slash Energy Costs

EV charging stations are one solution that makes parking facilities more

sustainable. (Top photo courtesy of Propark America © 2014.)

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Bay Area Buildings News • March/April 2014

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Bay Area Buildings Recognized

he new Bay Area BOMA Innovative EARTHAwards contest stirred up a lot of excitement thisyear, as the staffs of more than two dozen com-mercial buildings in San Francisco and the East

Bay sought recognition for their unique approachesto making their facilities more sustainable. Theprogram is orchestrated by BOMA SanFrancisco’s Energy and EnvironmentCommittee, and applications are open tomembers of both BOMA San Franciscoand BOMA Oakland/East Bay.

Five buildings were named winners (see box below.) The innovationswere surely innovative. For instance, LeviStrauss used its recycled jeans to insulate.Kilroy Realty Corporation’s 201 Third Streetbuilding sponsored an Earth Week Twitter contest for its tenants to tweet their earth-friendly activities.Shorenstein Realty Services’ Russ Building at 235Montgomery Street uses Modlets for tenant plug loadmonitoring. Langley Investment Properties’ OrrickBuilding at 405 Howard Street minimizes solar loads byhaving their janitorial staffs close window shades duringweekends. Hines’ Pleasanton Corporate Commonsinstalled EV charging stations and developed an onlinetenant cooperation program.

Energy and Environment Committee Chair JennaHattersley said, “We are excited about the new BOMA

Innovative EARTH Award program and the number ofapplications we received. The Bay Area is on the cuttingedge of sustainability, and this program really highlightsall of the creative and inspiring practices that Bay Area

building owners and managers have implemented.”Committee Co-Chair Jessica Handy said,

“The Innovative EARTH Award gives thosewho innovate the opportunity to inspire

others, and we hope to encourage all those innovators out there to take the time

to inspire!”“Building owners and property

management groups showcased their efforts to bring environmental stewardship to a new level of excellence,” says Energy andEnvironment Committee Co-Chair

Laurie Rummelhart. The unique awards were created by the Buildings

Owners and Managers Associations of San Francisco and Oakland/East Bay. The program recognizes andrewards buildings whose owners and managers haveimplemented innovative measures in pursuit of environ-mental sustainability.

Innovations should address, at the building level, atleast one of the following topics: waste diversion, energyconservation, water conservation, hazardous materialsmanagement, purchasing, transportation, tenant education or any other applicable sustainable category.

Five buildings were named winners:

• Levi Strauss & Co., World Headquarters, San Francisco

• 201 Third Street, San Francisco

• Russ Building (235 Montgomery Street), San Francisco

• Orrick Building (405 Howard Street), San Francisco

• Pleasanton Corporate Commons, Pleasanton

T

Innovative

EARTH

Award

Winners

Orrick Building (405 Howard Street)

Langley Investment Properties, Inc.

Innovation: Minimized solar loads by having window shades closed during the weekends

Innovative EARTH Awards Given By Two Ar

Page 13: Babn march:april

13

for Innovations in Sustainability

Russ Building

(235 Montgomery Street)

Shorenstein Realty Services

Innovation: Provided tenantsModlets to monitor and help reduce energy use(Modlet photo courtesy of ThinkEco.)

201 Third Street

Kilroy Realty Corporation

Innovation: Sponsored a Twitter contest during Earth Weekfor its tenants to tweet about their sustainable activities and practices

Pleasanton Corporate Commons

Hines

Innovation: Created EV charging stations and an online etiquette group for tenants

Levi Strauss & Co. World Headquarters

Interland-Jalson

Innovation: Used recycled denim in walls and ceilings for thermal insulation

rea BOMAs for a Variety of Green Practices

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Bay Area Buildings News • March/April 2014

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The new Title 24 requirements scheduled to go into effectJuly 1 represent a major step towards the state’s goal ofachieving Zero Net Energy (ZNE) for new commercial build-ings by 2030 and enabling existing buildings to move quick-ly towards that same goal. While Title 24 contains changesthat impact both residential and commercial property, thisarticle will focus only on the commercial property impacts.

The origins of Title 24 go back to 1978 when the EnergyEfficiency Standards for Residential and NonresidentialBuildings were created by the California Building StandardsCommission. These requirements fall into Part 6 of theCalifornia Building Standards Code, which is Title 24 of theCalifornia Code of Regulations, therefore the reference toTitle 24. The standards are updated periodically by theCalifornia Energy Commission to allow possible incorpora-tion of new energy technologies and methods.

The 2014 updates take the original intention to the nextlevel with two significant objectives:

• It moves the design of new buildings toward “compre-hensive building solutions,” by first reducing energy con-sumption through the integration of the newest technologiesand then towards the installation of renewable energy gener-ation like solar panels.

• It intends to strengthen demand for the newest tech-nologies that will reduce or replace energy consumption inorder to drive the cost down for those products. This will becoupled with new financial incentives offered through utili-ties to encourage energy efficiency investments by buildingowners.

Current thresholds for code upgrades in existing build-ings, especially for mechanical and electrical systems, havebeen lowered. This will trigger compliance with the newTitle 24 provisions on the majority of a building’s capital andtenant improvement projects. In addition, Governor JerryBrown has directed that state agencies take measures towardsachieving ZNE for 50 percent of the square footage of exist-ing state-owned buildings by 2025.

Here are some examples of the changes in Title 24:• Plug loads, like those generated by computers, refriger-

ators and copiers, represent at least a third of the electricconsumption in a commercial building. Title 24 strives toreduce “phantom power consumption” by requiring that120-volt receptacles be enabled to turn off at the receptacle.This results in a new requirement to install a controllableoutlet within six feet of most existing outlets.

Bay Area Buildings News • March 2014

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How Building Managers Can Plan for New Title 24 RequirementsBy Kathy Mattes

(Continued on page 16)

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Bay Area Buildings News • March/April 2014

Mattes is an Independent Real Estate Consultant. She can be reached at [email protected]

• Through the use of new technology, energycontrol systems in the smarter buildings will beable to respond directly and immediately todemand reduction actions during critical-peaksupply time periods.

• Title 24 accelerates the installation of moreefficient lighting technologies by mandating auto-mated daylighting (using sensors to measure theamount of natural light) and adjusting the lightfixtures accordingly. Most building projects willtrigger the requirement to utilize daylight harvest-ing within 10 feet of the window line.

• Independent air conditioning units (five tons+) for conference rooms and other gatheringplaces will be required to have a dedicated sourceof outside air rather than use circulated, condi-tioned air.

These changes were originally scheduled to gointo effect on January 1, and that date was pushedback to allow the State to complete the necessarysoftware for processing forms for permitting, aswell as to provide training to all municipalities inthe implementation of these new code require-ments. That date could change again if the Stateneeds more time.

It is still difficult to estimate the additional costfor these new requirements. John Grcina, with RNField Construction, has made a point of becomingan expert on the new Title 24. Without actual proj-ects to go by, Grcina is estimating that the addi-tional cost could be $10-12 per square foot for newbuildings over a warm shell. The cost for existingbuildings will vary greatly, based on existing condi-tions and the scope of new work. Jose Guevarawith Cushman & Wakefield at Post MontgomeryCenter, has been advised to expect additional costsof $4-7 per square foot. But Post MontgomeryCenter is way ahead of the curve on LEED compli-ance and, according to Guevara, has alreadyinstalled some of the systems that will be requiredby Title 24.

Besides the obvious cost for additional outlets,BMS and other equipment, as well as new commis-

sioning requirements, there will be costs associated with design and plan preparation. There will be more paperwork to complete,and more complications in plan check, depending on how the cities choose to interpret these new requirements. Plan for moreconfusion in plan preparation and permitting, and definitely allow more time to obtain permits and final sign off.

Advice—meet with your general contractor and your mechanical and electrical contractors and begin to get an understand-ing of what will be required for your building. Then share the information with your owners so that they will be informedbefore you present a new construction budget to them.

Title 24 (Continued from page 15)

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Bay Area Buildings News • March/April 2014

Facility managers, engineers and property managers who develop and advocate sustainability programs can gaingreater career status within their organizations. Senior man-agement appreciates man-agers who lower energy andwater costs, reduce wasteexpenses, reduce emissionimpacts, lower operationalcosts, boost occupant pro-ductivity, improve occupantshealth conditions andimprove community impact.

Larry Morgan, who isregional operational excel-lence and sustainabilityexpert for North and LatinAmerica for global softwaresolutions firm SAP, recently outlined how facility and other building managers canbecome more valuable to their firms in an address to the International Facility Management Association of Silicon Valley.

The Institute of Building Efficiency says green buildingsexperience an average net operating income that’s 5.9% high-er than a traditional building and attain greater market value.

“In a survey of more than 1,000 CEOs from 43 countries,79% agreed that sustainability is vital to the success of theirorganization,” says Morgan. Becoming a sustainability

“champion” requires that man-agers learn more about the bene-fits of sustainability, understandhow to become better advocatesand focus intently on their goals,says Morgan. There are benefitsand risks involved.

“Without (management)buy-in and support, sustainabili-ty initiatives are difficult toimpossible to achieve,” saysMorgan. That means managersmust become strong advocatesarmed with compelling statistics.

Understanding an organization’s comprehensive goals isessential to this effort.

Morgan advises managers to build a business case for sus-tainability. “A business case is a tool to support planning anddecision-making for a change within an organization. It pro-vides the reasoning for initiating the project. It demonstrateshow the project supports the organization’s strategy andgoals. It demonstrates how the project will drive results.”

Being Green Advocates Enhances Managers’ Careers

Here are questions Morgan says managers should ask:• What are we doing that is climate-neutral or increase

our use of renewable energy?• How are we influencing others in our supply chain?• How is our product or service benign or sustainable?• What are we doing that is water-neutral or reduces our

water use?• What materials are we using from renewable sources?• What do we contribute to solve community problems?• What are we doing to get closer to zero waste?• What are we doing to reduce our impact on environment?

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Bay Area Buildings News • March/April 2014

Green Buildings (Continued from page 9)

Gordon Prill assisted Equinix obtain a LEED Certified rating for the LA4Data Center Retrofit project. GP exceeded the client’s expectations andthe project was certified LEED Silver Commercial Interiors. The two-story,tilt-up building was originally built in 2002 and retrofitted in 2009 tohouse an IBX data center and offices on both floors. The project chal-lenge was to achieve a prudent balance of energy efficiencies within theinfrastructure while maintaining a robust functionality of equipment ina world-class data center environment.

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certifications and maintaining the certifications when the ROI or IRR doesn’t pencil out. Example: If I am tenant soand so and I am in a building that has a fair market CAMexpense would I pay x amount extra to be in a LEED build-ing on a five year lease? Maybe not. It’s also a strategic deci-sion. Some companies or tenants will pay extra to show corporate responsibility and have marketing plans driven off that. That’s an alignment decision.”

Judith Sayler with the architectural-engineering firmGordon-Prill says, “I think in Silicon Valley there are manytenants who do care a great deal about working in a greenenvironment. The role of the facility manager in some com-panies has morphed from providing standard tenant servicesinto providing a workplace that appeals to a younger genera-tion more focused on sustainability than previous genera-tions. The FM’s roles may even overlap with that of talentrecruitment and involve working more closely with HR andsocial responsibility managers to define work place strate-gies. I believe that tenants do care about green elements, i.e., daylighting which promotes better health, energy-efficientlighting and controls that don’t waste energy when a room isempty, access to charging stations, recycling programs, etc.These types of things are becoming the ‘standard’ in provid-ing great tenant services to a generation who cares aboutbeing green.”

Awareness of the need to make facilities more sustainableis widespread, but the tasks ahead are enormous and wehave only just begun.

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Bay Area Buildings News • March/April 2014

You and your firm are well known for developing engineering strategies to protectbuildings that might be targeted by terrorists. Does the threat persist, and has itchanged much since 9/11?The interest in antiterrorism has declined in recent years, which is typical for extreme eventsthat have not happened in a while. The human brain is wired to act in response to immedi-ate danger, not intermittent dangers. The events of 9/11 were more than 12 years ago and thesense of urgency around terrorism has waned. The focus has shifted to natural hazards dueto events like Hurricane Sandy. Nature has become more unpredictable with climate change,giving us the same uncomfortable feeling that terrorism does. Of course, much of our crum-bling infrastructure is reaching the end of its useful life, which has added an element ofRussian roulette to the situation. The professionals involved with disasters are promoting‘resiliency’ as the antidote to this issue. Resiliency refers to mitigation and preparation beforea disaster, taking action during a disaster, and recovering quickly after a disaster. What iscompelling to me as an engineer about resiliency is that it is for all hazards not just one.How do you achieve resiliency when you don’t know what the hazard is? That is a challengethat we are taking on as a research project as a firm right now.

Recently, you have spoken out about our need to protect our energy grid from terrorist attacks. How can terrorists damage our energy infrastructure, and whatmight be done to thwart their efforts?I was at a conference a couple of years ago where I sat next to an electrical power engineer. I asked him whether it was true that thegrid was as fragile as the media portrayed it. He told me that it was not an exaggerated claim. He told me that 12 well placed bulletsshot at a ‘substation’ could take down the grid regionally. Recently when it was made public that 13 out of 27 transformers were disabled by military style weapons in Silicon Valley, it was eerie to remember this conversation. Fortunately, there are physical security measures that can be taken which can make substations less vulnerable. Not all substations are critical, so not everyoneneeds to be protected like Fort Knox. The level of protection and associated cost can be tailored to its respective risk. In this caserisk would be expressed as a function of the level of redundancy of power supply at that location, the number of people affected,proximity to a road and other such factors. Making it more difficult to reach the site using multiple layers of barriers, hiding thetransformers behind an opaque fence (with cameras to detect activity behind the fence), shorter response times, and providing hardening for the transformers are some ideas. It is totally doable.

Much of your firm’s work has been protecting government buildings, such as the new Federal Building in San Francisco.Do you think companies should also better protect themselves from attack on buildings where they do business?If the company has reason to believe it is a target for terrorists, than it should consider having a risk assessment of its buildinginventory performed. Terrorism is very rare, so I would only recommend it only for those who are truly at risk. One threat that isreal for major corporations is coastal flooding. The majority of the U.S. population is in coastal areas. Right here in the Bay Area for instance there is a major risk in Silicon Valley, which is only a few feet above sea level and is apparently not taking this situation seriously. Given how much this area contributes to the economy of California it seems this should be taken more seriously. Given the attack on a substation in Silicon Valley that I mentioned before, I would recommend a terrorist risk assessment as well.

Are cities in the Bay Area as likely to be targeted as New York, Washington, Chicago and LA? If so, why?The federal building in Oklahoma City was bombed in 1995 and no one anticipated that they were a target. When only big cities are protected, smaller cities become attractive because no one is expecting terrorists to attack there. Living in the Bay Area myself, I understand how easy it is to be lulled into believing that nothing bad can happen here. It is so beautiful here and terrorism seemsso far away. We are deceiving ourselves by believing this. The truth is that we need to be realists about terrorism. Thomas Jefferson is credited with saying that “The price of freedom is eternal vigilance.” If we don’t protect what we have in the Bay Area, it will betaken away.

Antiterrorism Engineer Says No Region Is Safe, But All Areas Can Be Made Safer

Q&A with Eve Hinman, President of Hinman Consulting Engineers

Eve Hinman is president of Hinman Consulting Engineers, whose offices in San Francisco, Washington, DC and New York City offer services to stateside and global projects.

Engineering expert Eve Hinman.

Industry

Profile

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Bay Area Buildings News • March/April 2014

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Bay Area Buildings News • March/April 2014

raveling people have a relationship with their hotelsand guest rooms. The hotel industry has been, attimes, a harbinger of consumer wishes and aspira-tions and at other times a follower.

Consider the “color” TV. In the 60’s, hotels and motelsproudly announced on their neon signs and billboards theavailability of color TV and air-condi-tioning. Many who sought those proper-ties had neither of these “upscale ameni-ties” in their own homes. The samecould be said for “king-size” beds,touch-tone phones and whirlpool baths.Over time these “amenities” becamecommonplace for many homes in thewestern world. Hotels in that era gotreservations through “ports” like: toll-free telephone lines, yellow pages, bill-boards, U.S. Mail, and travel agents.

Since the computer age and theInternet has become so dominant in allour lives, hotels rarely lead the techno-logical parade. Hotels are now aspiring to keep up with this faster world we now inhabit. There are good reasons for this lagging role. In the capitalexpense part of the hotel business, owners typically plan to renovate guestrooms every four or five years. As tech-nology is now a great part of travelers’lives, their changing needs and wants can’t wait for five years.

There was a hotel group that hoped to “leap” ahead in thetech world in 1982. Their idea was to rent “pagers” to guestsand provide a toll-free phone number the guest could givetheir family and company and a “mailbox” to receive andmake recorded messages, all toll-free! The device could evennotify you when it got a message. If you were close to a payphone, you could call and retrieve the messages. This wasStar Wars stuff at the time, but shortly cell phones becameaffordable for travelers, and who knows what happened to allthose pagers.

So today, hotel guest rooms are changing to meet theneeds of a steeper demand curve for the hotel experience.The hotel industry’s target has become providing the guestthe same access, and communication options as they haveresidentially. The guests will bring their own content forentertainment or get it while staying in the hotel using hotelWi-Fi. The good news for hoteliers is that the guests’ smartphones will soon control their guest room from beginning to

end, and all hotels really need to provide is a great TV, lots ofpower strips and super big bandwidth.

The effort currently consuming hotels is how to “mone-tize” those guest services’ capital related expenses. On the onehand, the guests are rapidly rejecting the idea of paying forWi-Fi in their rooms. Most brands are attempting to tie their

rewards and frequent user programsto getting the service free, othersare experimenting with a “tiered-service” approach, that providesbasic Wi-Fi for each guest. But ifguests require access for morebandwidth, they pay à la carte. Bythe time the industry figures it out,there will be more evolution of ourtech needs, and we’ll be stuck witha bag of beepers.

Here are some examples of tech-nological and lifestyle changesbeing made in and around the hotelbusiness. It appears hotels will atbest staying even, but seldom willthey be a leader. Technology is nowthe leader, and the hotels and theirmanagement are only trying to staycurrent.

Consider where we’ve come: • In place of billboards and toll-

free numbers, hotels receive themajority of their business over the Internet. According toAlexa.com, in 2013 Internet booking revenue has grownmore than 73% over the past five years and over 65% ofsame day hotel reservations were made from a smartphone.

• The Internet and smart phones help most hotel guestslocate the right room at the right price instantly.

• Smart phones are soon becoming an “everything”device, including confirming individual pre-arrival prefer-ences, the guest room key itself, a concierge-type app or connection to all hotel services, the in-room thermostat, andtext messaging for ordering room service, asking housekeep-ing for some clean towels and checking out.

It’s hard to see where these things will end with impacton hotels, their guests and the experience they provide, butdon’t be surprised to someday find a box of “smart phones”in the corner that aren’t needed anymore.

Hotels Chase Technology to Pursue Better Guest ExperiencesBy Bob Eaton

Eaton is president of Eaton Hospitality Investments.

Hotel industry veteran Bob Eaton says hospitality technology is revolutionizing the industry.

T

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Bay Area Buildings News • March/April 2014

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Bay Area Buildings News

S p e c i a l S p o n s o r e d R e p o r t

Vanir Builds Out Chic Urban Space for WeWorkA privately held company that builds communities made up of entrepreneurs and small businesses, WeWork empowers

its members by providing functional workspace, collaborative environments, connective technology and meaningful services.WeWork currently has offices in New York, Los Angeles, San Francisco, Seattle, Washington D.C. and Boston.

WeWork contracted with Vanir in October 2012 to build out its space at 25 Taylor Street in San Francisco. The CM/GC cost-plus-fee contract enabled WeWork to start construction before the design documents were 100% complete.

Much like WeWork’s philosophy, thedesign and construction team worked collaboratively to create an exciting andchic workspace. Adjacent to the GoldenGate Theater, the seven-story office building is 90 years old and had beenunoccupied for 10 years.

The project team was tasked with bringing life back to this historicalbuilding that had been boarded up and abandoned.

After the initial abatement and demolition, Vanir moved forwardwith the new infrastructure requirements and finishes. A major part ofthe improvement work was installing new utility systems including electrical, fire sprinklers, fire alarm and heat into the building.The substantially complete first phase of the project allows WeWork members to enjoy the 45,000 square feet of space.

Vanir and WeWork recently finalized a contract for the next phase of the project, which will be Design-Build services for theremaining three floors of the building. Anyone interested in leasing space from WeWork may schedule a tour by visitingwww.wework.com.

Since 1980 Vanir has provided construction services for nearly $16 billion dollars in construction throughout the nation. During each phase of planning, design, construction and close-out, Vanir continuously focuses on achieving the owner’s goals for success. Owners throughout the private, education, healthcare, justice andcivil market segments appreciate the level of quality and personal service received by Vanir’s team. As your construction expert, Vanir can provide many services including project scheduling, equipment and material procurement, general contracting, quality assurance/quality planning, and commissioning. In addition, Vaniroffers construction management, design-assist, design-build, and integrated project delivery services.

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Bay Area Buildings News

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To what extent are managers of largeapartment complexes like small-citymayors?

To a very large extent especially since our resident profile in the Bay Area isextremely diverse. Furthermore, we aredealing with people's homes which can be a very emotional experience at times.

With shortages of available apartmentsin the Bay Area, do apartment managersstill need to devote many resources tomarketing?Yes, as we endeavor to maximize buildingvalue and NOI (net operating income),well-placed marketing dollars are vital tosecuring top rents. Given the same closingratio, increased prospective rental trafficwill lead to a higher number of new rentals,less availability and the ability to test evenhigher asking rents.

How much of your job is spent on maintenance and repairsupervision? Which issues are the most challenging?

A significant amount of time is devoted to R&M supervision as we strive to exceed our existing residents' expectations which will ideally lead to reduced turnover. Environmental issues such as units with mold tend to be the most challenging as they are difficult to correct and often require the temporary relocation ofthe resident(s).

Are you seeing new technologies coming online that makeoperations more efficient?

Yes, such as automated revenue management systems which re-price available units daily based on a variety of factors.

All of these types of automationsallow site personnel more time tolease apartments and better service residents, thus building relationships in lieu of completingpaperwork and administrative tasks.

Do you foresee a demographicshift to rentals, given the recentcosts and upheavals in home ownership?

Only in the near term as owning a home remains the Americandream. The demand for rentals in the Bay Area remains strong as fundamentals for the rental market remain strong: steady jobgrowth, low availability in the for-sale market, and somewhat

rising interest rates.

To what extent are state or localgovernment ordinances and regulations a problem managing a property? Are there troublesome issues managers face nowin your area?

Fortunately our industry is represented by the CaliforniaApartment Association which plays a vital role in monitoring proposed new legislation and working with government officials to craft policies which are palatable. The threat of rent controlremains an age-old issue which ultimately results in the lack ofreinvestment and deterioration of rental property.

Belmont CA-based Woodmont is one of the most prominent real estate man-agement firms in Northern California, managing a diverse portfolio of office,retail, industrial and multifamily properties valued at over $3 billion.

Jeff Bosshard at one of Woodmont’s Bay Area communi-ties, which serves an extremely diverse group of residents.

Industry

Profile

Exec Says New Technologies Improve ServiceQ&A with Jeff Bosshard, President of Multifamily Operations,

Woodmont Real Estate Services