It’s a Wednesday morning, and an active shooter forces his way into your building and threatens your tenants. This frightening scenario could happen in your building. Is your team prepared with a plan to minimize the danger and communicate with first responders, tenants and the media?

Life-saving lessons were learned during BOMA’s annual emergency pre-paredness drill, conducted by its Emergency Preparedness Committee. The drill simulated an active shooter situation at Kilroy Realty’s 101

Fall

201

4

n Meet BOMA Members • Pages 6 & 7

n New Board at the Helm • Page 11

n What Elections Mean for CRE • Page 11

n Volunteer Appreciation • Page 14

What’s Inside Views...

(Continued on page 12)

BOMA —Your Top Resource for Keeping Your Building Prepared and Up to CodeBOMA San Francisco is the go-to organization for providing your

team with the most up-to-date information on important topics like emergency preparedness and building codes. Two annual

seminars presented valuable information to our members.

Active Shooter Emergency Preparedness Drill

Building Codes: Changes Impact BOMA Members

Ryan Rusler, Har-Bro; Joanne Hayes-White, SF Fire Chief; Sarah MacIntyre, Kilroy Realty; Greg Suhr, SF Police Chief; and Stacia Keisner, CBRE at BOMA’s Emergency Preparedness seminar.

From CALGreen updates to disability access requirements to San Francisco’s over-the-counter permit process, major changes are affecting building design, construction and operations—and there are even more code changes in the works.

BOMA San Francisco’s Annual Codes Seminar speakers enlightened the audi-ence about key updates and how BOMA is helping to shape regulations. “All of these things trickle down to costs for building managers,” said BOMA Vice President, Public Policy Ken Cleaveland. He warned that BOMA will be keeping a close watch on these issues.

Moderator Gordon L’Estrange, senior associate at LIONAKIS, led the seminar, starting with a presentation by Skip Soskin, principal at Huntsman Architectural Group. Soskin shared advice on efficiently working with the San Francisco Depart-ment of Building Inspection’s (SFDBI) over-the-counter (OTC) plan review process.

(Continued on page 8)

Mixing & Mingling... Page 15

2

Platinum SponsorAble ServicesGold Sponsors

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ProTech Security Services, Inc.Recology Golden Gate

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Silver SponsorsAlliance Roofing Company, Inc.

AT&TBNBuilders

CBREHines

Kilroy Realty CorporationMetropolitan Electrical Construction, Inc.

Pacific Gas and Electric CompanyParamount Group, Inc.

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The Swig Company, LLCTownship Building Services, Inc.

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Cole SupplyCTC-California Technical Contracting, Inc.

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LAZ ParkingR.N. Field Construction, Inc.

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Thanks to BOMA San Francisco’s 2014 Corporate Sponsors*

*For sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com

With Blake Peterson,

BOMA San Francisco President

I sat in on a panel interview recently and the candidate was asked “can you tell me about a specific challenge you have faced and how you overcame it?” Cue the awkward silence, followed by a stuttering, predictable sports story. Bo-ring. The reason we ask questions like this is because we recognize that the unanticipated challenges and changes that we face really do shape us as professionals. I’d venture to say that the creative thinking opportunities to solve real problems are the specific experiences that fuel one’s passion for property management. That’s the beauty of the unpredictability factor that we face every day as owners, managers and servicers of real estate.

That’s why everyone loves construction. All the variables. When some-one asks you about your development project, they don’t want to hear about how it came in on time and on budget, they want to hear about how you dealt with the unanticipated challenges. Trade issues? Lead time? Disruption to neighboring tenants? Scope creep? Behind every successful construction project is a very talented professional that I know worked very hard to keep the proverbial train on the tracks and I want to know how they did it, because every journey is different and there is something to be learned from it.

In my own career, I’ve had to deal with many unforeseeable changes and challenges. Maybe I have and maybe I haven’t approved a lease that required the Landlord to provide gas service into the premises, only to learn that there was no gas service at the building. Maybe I had to coordinate the temporary closure of an entire four-lane freeway off-ramp in order to run said gas line into said building. Just maybe.

The ability to understand the fundamentals of a capricious problem, evaluate options, and effectively execute the right solution is both art and science, revealing of character and competence. I’ve been called a Tree Hugger, but I answer most fondly to Decision Tree Hugger.

Switching gears to a macro-perspective, BOMA San Francisco is staying at the forefront of the challenges associated with our economic tech boom. As we address our current challenges of Proposition M, retain-ing a talented workforce and the increasing cost of doing business (and living) in San Francisco, I can’t help but wonder what our next curve ball will be. I have no doubt that we will effectively face these issues with courage, diligence and professionalism. As your BOMA San Francisco President, I look forward to working with my esteemed colleagues on these challenges and adding to my ever-growing collection of lessons learned.

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From budgets to property walks to construction and tenant meetings, Alyssa Freeman juggles diverse responsibilities as Assistant Property Manager for Boston Properties’ Three and Four Embarcadero Center.

“Embarcadero Center is a dynamic place and there are always a myriad of activities,” she says. The holiday season is especially busy, as Embarcadero Center is gearing up for the annual Building Lighting Ceremony. In previous years, she helped with day of festivities. But this year, as assistant property manager, she learned a lot about the engineers’ perspective and the preparation that goes into lighting these soaring towers.

Freeman has been active in BOMA from the start of her commercial real estate career. At an undergraduate real estate event hosted by CREW, a woman recom-mended that she check out the BOMA website. She researched the industry and interviewed with Boston Properties, where she was hired. “Once I joined Boston Properties, I was encouraged to get involved with BOMA’s YP Committee.”

“When I first joined the committee, there were skills I wanted to develop. My advice for other young professionals is to step outside your comfort zone. There’s no better place to take a leap than BOMA! Know your limits, but don’t be afraid to challenge yourself.” She eventually became the chair of the committee. And, at BOMA San Francisco’s annual meeting in October, Freeman was honored as Principal Member of the Year.

When she has some time off, Freeman likes cultural events (ballet is a favorite), traveling and exploring new cities. She also enjoys DIY projects like home-making wine. Cheers to Alyssa for her many accomplishments!

Freeman likes to explore new cities and try out restaurants during her travels.

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As the Director for CodeGreen’s West Coast Operations, Jessica Handy helps clients fulfill their sustainability objectives—earning ENERGY STAR labels, achieving LEED certifications, monitoring and managing their electricity use and sustainability, and complying with local and state requirements.

Handy brings this expertise to her role as vice chair of the BOMA San Francisco Energy & Environment Committee. During her three-year tenure with the commit-tee, “a key trend I have seen is an increase in the general awareness of the value of saving energy.”

“Energy efficiency, and sustainable operations in general, are being demanded by the latest generation of workers, and the biggest and most vocal companies brag about their sustainability efforts. Being more aware of energy and resource conser-vation is rapidly becoming part of the fabric of property ownership and manage-ment,” she adds.

Handy’s involvement with BOMA goes back to 2003 in New York City, where she was on the board of directors before moving to California. She also serves on several BOMA Greater Los Angeles committees. Her experiences at BOMA have enhanced her career. “Because of BOMA, I have been able to learn a lot about California. This is a very big and legislatively active state. BOMA makes it possible for me to stay informed of the legislative changes that impact my work and that of my clients. Through my participation on the BOMA California Board, I’d like to think that I might help influence some of these changes as well.”

Her contributions are appreciated, indeed! Handy was recently named Associate Member of the Year for 2014 by BOMA San Francisco.

When she’s off work, Handy serves as president-elect of the Kiwanis Club of Santa Monica. She is an avid backpacker and hiker of California parks.

Handy enjoys backpacking in Yosemite.

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Code Updates (Continued from page 1)

(Continued on page 10)

Some tips: make sure all sheets are the same size and that no type is less than 1/8” high, and keep project descriptions short.

“If you use an architect or engineer from out of state, we strongly recommend that you have an architect that is familiar with San Francisco and the process review the drawings prior to submittal,” he said. Soskin advised that your architect be present, so they can make changes on the drawings. However, only the contractor or owner can pick up a permit without additional paperwork.

The audience then heard from Richard Halloran and Mark Walls of the SFDBI. The premise for OTC is that for office TI permit submittals, there is one hour of review for every department (mechanical, fire, etc). “We want to do what we can to make the process easier,” said Walls. He advised that if you see a plan checker who writes comments, try to see the same person when you come back. If you use an

expediter, it’s best to have the design professional there or have them available by phone for clarifications.

The SFDBI is seeing problems with plans meeting accessibility requirements. DBI officials said to study the

administrative bulletin (AB 56 for path and travel certifica-tion) which is available online, since it is frequently updated. Halloran said he wanted to “demystify the disabled (DA) checklist.” There are three ways for projects to be DA compliant: 1) Offer equivalent facilitation, 2) Technical and feasible—Show that altering or removing a structural element would be required, and 3) Unreasonable hardship—This is based solely

on cost and must be approved by the city. It would apply in a case in which the cost is going to kill the project. “We don’t want to kill projects,” he said. “We will help you fill out the forms” for technical and feasible and unreasonable hardship.

Seminar chair Gordon L’Estrange leads Title 24 discussion.

Although the current atmosphere is one of uncertainty as to how Title 24 will be implemented and how significant the compliance costs will be, California’s commitment to green building and energy efficiency remains clear. The recent roll out of California Building Standards Commission’s 2013 Title 24 Code Regulations (“Title 24 Regulations”) that took effect on July 1, 2014, reaffirms California’s pledge to achieve its zero net energy goals for commercial buildings by 2030. The Commission continues to aggressively push forward with the next round of 2016 code requirements as stakeholders and policymakers are currently engaged in the “pre-rulemaking” process for the next iteration of 2016 Title 24 Regulations.

As to the 2013 cycle, the most notable change is that Title 24 Regulations now apply to tenant improvements with a permit value of $200,000 or above, as well as building additions of 1,000 square feet or greater. The uncertainty of who will fund these tenant improvements, and more importantly whether building owners will bear the burden of upfront infrastructure costs to accommodate the Title

24-specific regulations, has been the most difficult concept for landlords and tenants to accept. As a result, there has been a great deal of apprehension in terms of how to properly allocate Title 24 compliance costs between landlords and tenants. This, in turn, has led to a decline in the number of building permit applications and, coincidentally, an increase in the number of leases where the parties reach an impasse and walk away from the deal.

What is the solution? Unfortunately, there is no bright line answer, but candid discussions among the parties detailing the tenant’s needs and how those objectives can be achieved in a cost-efficient manner is a starting point. There are a few options to alleviate some of the cost considerations, ranging from the implementation of certain pass-throughs of operating expenses and CAM charges to be spread among all building tenants over the life of the lease term, or the inclusion of certain Title 24 compliance costs as part of the negotiated tenant improvement allowance. One thing is clear—Title 24 Regulations will encourage landlords and tenants to nego-tiate language in their respective letters of intent, leases, and work letters to address compliance costs head-on.

In the past, the voluntary adoption of non-mandatory, incentive-based green building standards was thought of as a good market-ing tool. This is no longer the case. The 2013 Title 24 Regulations are mandatory, when applicable, and while compliance will prove to be navigable (at least until the 2016 cycle takes effect), the new regulatory framework adds a layer of sizable cost considerations that will fuel the ongoing debate between landlords and tenants as to who should bear the ongoing compliance costs.

9

Report by Kimberly Huangfu, Real Estate & Land Use Associate/LEED AP BD+C, and Manuel Fishman, Partner, Buchalter Nemer. They may be reached at 415.227.0900 or khuangfu@buchalter.com or mfishman@buchalter. Visit www.buchalter.com.

Thank you to the Sponsors of the Annual Building Codes Seminar:

Major SponsorEvent Sponsors

Angotti & Reilly, Inc.

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Title 24: What the Future of Energy Efficiency Regulations Means for Commercial Landlords and Tenants

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Code Updates (Continued from page 8)

Title 24 Changes OverviewNext was an overview of how California’s Title 24

Energy Code requirements affect typical office TI with-in an existing building—and the cost of that impact. L’Estrange noted that “in general, we estimate the electrical cost to increase 25-30% from pre-July 1, 2014” (the date regulations went into effect). BOMA members should be aware that the next code cycle for 2016 is already underway with proposed measures for elevator lighting, controls and HVAC modifications.

Strategies to meet requirements were discussed, includ-ing: receptacle control—using controlled outlets to save energy and eliminate vampire loads; occupancy sensors; disaggregation of electrical circuits which separates loads by use for monitoring; lighting control systems; using LEDs in big office spaces; reduced lighting power and density; multi-level controls and daylight sensors.

Julia Grinberg with PG&E said there are rebates and incentives for buildings to get low or no-cost LEDs. Commercial building managers should contact their PG&E representative to learn more.

In making lighting alterations, it’s best to think about the future. More robust controls are more likely to meet future green requirements. “New products are being unveiled from companies like Wattstopper and Leviton,” said Bradley Onstad with CBF Electrical & Tel/Data Contractors. His firm likes to put in flexible systems.

High-Rise Inspections and Lease IssuesSan Francisco fire officials observed that as companies

grow in this bustling economy, buildings often overlook fire and safety procedures. Wiring such as “daisy chains” is commonly seen. Records must be kept for systems like fire alarms and life-safety egress.

Kimberly Huangfu, a real estate attorney with Buchalter Nemer, notes that Title 24 will encourage landlords and tenants to negotiate language into their respective letters of intent, leases, and work letters to address compliance costs head-on. There is no bright line rule that clearly delineates whether landlords or tenants are responsible for govern-ment-mandated regulations. This determination often hinges on whether the upgrade is structural, the aggregate costs at issue and the length of the lease term, and who will ultimately benefit from the improvement. n

“We estimate the electrical cost to increase 25-30% from pre-July 1, 2014.”

— Gordon L’Estrange, LIONAKIS

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The November 4th election brought more Republicans to Congress—in the main—while electing more moderate Democrats in San Francisco. BOMA’s Political Action Committee, the only one actively representing the interests of commercial real estate owners in local elections, had a significant

success rate in the races and propositions on which the organization took a position.

The key race was the one for the California Assembly that pitted Supervisors David Chiu and David Campos against one another. BOMA has had a long and positive relationship with David Chiu, the President of the Board of Supervisors, for years so it was no surprise that the organization endorsed Chiu early on. The BOMA-SF-PAC board appreciated Chiu’s practical approach to lawmaking by building consensus among all impacted parties before pushing legislation forward. Although the race was a close one, BOMA was gratified to see Chiu emerge victorious, and we look forward to his service in Sacramento as our

next Assembly Member. Chiu will join Phil Ting as the two Assembly Members representing San Francisco.

BOMA also did a bold thing in supporting a new director for BART, Nick Josefowitz, as we felt change was needed there with a representative who would push harder to improve the downtown San Francisco stations. Josefowitz won in a surprise upset of the 24 year incum-bent, James Fang.

On the statewide propositions, BOMA supported both of Governor Brown’s top priorities: the water bond and the rainy day fund, both of which passed with wide margins.

On the local level, BOMA supported the $500 million transportation bond, which passed, and opposed the so-called 24% “speculator’s tax” on residential property sales, which failed. BOMA also supported allowing artificial turf on Rec and Park playing fields and an affordable housing policy statement both of which passed. Our only loss was on our support for another policy statement focused on local transportation issues. The transit-first proponents easily defeated our call for a more balanced approach to managing cars in the City.

The BOMA-SF-PAC appreciates the voluntary funding it receives from the membership and welcomes questions at any time. Contact Ken Cleaveland, Vice President/Public Policy, at kenc@boma.com to learn more about the PAC.

Victories for BOMA SF PAC-Backed Candidates and Initiatives

David Chiu will represent San Francisco in the Assembly.

Two new directors have been elected to serve on BOMA San Francisco’s

board of directors. They are Marc Gille, Director of Asset Management for

Embarcadero Capital Partners, and Jeff Needs, Senior Portfolio Manager for

Hudson Pacific Properties.

The BOMA San Francisco Board of Directors has elected new officers, whose

terms run November 2014 through October 2015. Congratulations to

newly elected Treasurer Wes Powell, International Director, Jones

Lang LaSalle; President-Elect John Combs, Principal, RiverRock Real

Estate Group; and President Blake Peterson, Portfolio Manager,

Investor Services, Cushman & Wakefield. Continuing her service

as a member of BOMA San Francisco’s Executive Committee is

immediate past president Sarah MacIntyre, Asset Manager, Kilroy

Realty Corporation.

Members Elect New Directors; BOMA Board Elects New Officers

Marc Gille

Jeff Needs

12

Emergency Preparedness (Continued from page 1)

First Street building in the offices of its tenant, Box. Both the San Francisco Fire and Police departments’ first

responders participated in the exercise.At the recent Emergency

Preparedness Seminar, committee members, police and fire personnel, and property professionals shared some

of the highlights of the drill. “At the end of the day, this is going to save lives,”

said San Francisco Police Chief Greg Suhr about the drill that

allowed the police and fire departments to work with property professionals to improve emergency plans. San Francisco Fire Chief Joanne Hayes-White remarked: “The more

we can plan, the better.” “Our goal for the seminar was for people to have

something they can take back to the office to make them more prepared,” said Committee Chair Ryan Rusler, who led the program. These are some tips shared by the speakers in a panel discussion. Many can be applied to any

emergency situation:• Communicate with tenants. Even if you don’t have all

the details, let tenants know that you are aware that some-thing is going on. Prepare a statement that security can give to tenants and others.

• Communicate with upper management. “We didn’t have a way to communicate with upper management before the drill. We established a company-wide proce-dure,” said Eileen Kong, Senior Asset Manager for Kilroy.

• Prepare materials in advance. Sean Bennett, chief engineer of Able Engineering Services, said it’s important in an emergency that police have keys to your building and be given printouts of every floor in a binder.

• Harness technology. Kelly D’Innocenti, workplace services admin-

istrator for Box, uses an app called XMatters that allows the company to communicate with employees with a simple blast. You can do a roll call of your employees and account for them. As a tech company, Box had in place plans for business continuation in the event of an emergency.

• Tighten access to your building. Captain Ann Mannix of the police department’s tactical unit emphasized the need to “harden your target.” Make it difficult for peo-ple to enter your building and use controls that prevent intruders from operating elevators. The best advice in an active shooter situation is run/hide/fight.

Transamerica Pyramid Center’s Director of Security Jackson Talbot presented some best practices in active shooter situations. Remember “RAIN” — Recognize, Avoid, Isolate and Notify. Learn to recognize sounds of danger such as explosions and screams and call security. n

“At the end of the day, this is going to save lives,” — Greg Suhr, SF Police Chief

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BOMA-SF-PAC Goodbyes

Congratulations to Members of the Year!

BOMA San Francisco members of the year were honored at the Annual Meeting: Associate Member of the Year Jessica Handy, CodeGreen Solutions; Blake Peterson, BOMA SF President; and

Principal Member of the Year Alyssa Freeman, Boston Properties.

The BOMA-SF-PAC said goodbye to three long-serving board members: Mike Freeman, McCarthy Cook, served 19 years on the board and two years as chair; Nancy Gille, Real Systems,

served eight years with three years as treasurer; and Jim Christian, DRA Advisors, served 19 years with four years as chair.

Thank you for your dedication and service to BOMA’s Political Action Committee!

Appreciating Our BOMA Volunteers!Have you enjoyed a BOMA golf tournament or

wine tour? Been inspired at the Innovative EARTH

Awards luncheon? Sharpened your knowledge at

an Emergency Preparedness seminar? Or made

valuable contacts at a BOMA networking event?

If so, you can thank the many dedicated BOMA

members who volunteer their time and talents

to our organization. We appreciate the countless

hours they spend helping make our BOMA such a

vibrant association.

Are you interested in joining a BOMA committee?

Depending on your skills and interests, we can

help you identify one that’s a good fit.

Visit the Committees page on our website for key

committee leadership contacts (www.bomasf.org),

then reach out to the relevant committee chair to

learn more.BOMA Executive Vice President Marc Intermaggio with Emergency Preparedness Committee Chair Ryan Rusler.

15

Mixing & MinglingScenes from the BOMA Young

Professionals Boat Cruise and the annual un-Oktoberfest.

Above left: Team Able – Sam Shapiro, Jeff Dachenhaus, Grant Frazier, Sean Kelly and Craig DeMartini.

Above right (in circle): BOMA YP friend; Ryan Mahoney, McMillan Electric Company; and Mary Milazzo, Cupertino Electric Company.

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

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Far right: crowd scene at the un-Oktoberfest.

Near right: Robert Dawes, ABM and Michelle Funkhouser, Hines, visit with a friend at the event.

Thank you to SC Builders for sponsoring un-Oktoberfest!

Other women serving on our Foundation board include Michelle Funkhouser, Marsha Ramsey and Linda Oubre.

But wait—there’s more! Kathy Mattes chairs BOMA’s Leadership Development and Nominating Committee. She

also chairs BOMA’s Political Action Committee. Nicole Dubee chairs our Careers in Real Estate Committee; Christine Mann chairs our Education Committee, with Amber Miller serving as vice chair of that committee. Our Energy and Environment Committee is chaired by

Jenna Hattersley, and is vice-chaired by both Jessica Handy and Laurie Rummelhart. Lynn Tolin is vice chair of our Government Affairs Policy Advisory Committee. Stefanie Medious chairs our Membership Services Committee. Brooke Barnecut now chairs our Young Professionals Committee, and Julie Venegas is vice chair. The immediate past chair of the YP group is Alyssa Freeman, who notably was selected Principal Member of the Year for 2014!

Let’s not forget the BOMA Staff—where able women provide stellar service. LaMata Lewis is Director of Accounting, Akiba Davis is Education Coordinator, Tory Brubaker is Member Services Director, and Nicole Cui serves as Office Operations Manager.

Look around at any BOMA San Francisco event, and most likely you’ll observe at least half of the participants are women. It should be no surprise that women serve in quite a few leadership roles within our Association. They have undoubtedly enriched BOMA San Francisco’s community of commercial property professionals and have helped keep BOMA San Francisco relevant to the needs of its members!

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Women Leaders Drive BOMA

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The Last Word: Marc Intermaggio

A guest approached me after our recent annual meet-ing and remarked how impressed she was by our cadre of women in leadership positions. Used to be that BOMA might have stood for Bald Old Men of America. Not anymore—and surely not at BOMA San Francisco! As more and more women have entered various disciplines of commercial real estate, property and asset management have certainly benefited. So too, has BOMA San Francisco.

To wit: Sandra Boyle chairs the board of the BOMA San Francisco Foundation and its newest industry-changing endeavor—to identify, train, recruit and diversify commercial real estate’s future workforce. Sandra also happens to have been BOMA San Francisco’s first woman president, elected in 1995. Other women presidents have included Marsha Ramsey, Lisa Vogel, Kathy Mattes, Kirsten Walraven, Margot Crosman, Anne Hinz, and of course our immediate past president, Sarah MacIntyre.

Newly elected president Blake Peterson continues the tradition of women leaders at BOMA San Francisco. Other women presently serving on our board include Elizabeth Trowbridge, Deborah Boyer, and Tawni Sullivan. Tawni is also vice chair of the BOMA San Francisco Foundation.

BOMA women leaders at last year’s BOMA holiday party. From top: Stefanie Medious and Sarah MacIntyre; Michelle Funkhouser; Anne Hinz and Deborah Boyer.

Marc Intermaggio, CAE, is the Executive Vice President of BOMA San Francisco.