Better Times Forecast for the East Bay“California leads the nation’s economic recovery, and the Bay Area is driving

California,” economist Jordan Levine told an Oakland audience at the Bay Area RealEstate Outlook 2014 conference, sponsored by BOMA Oakland/East Bay earlier thisfall. The Beacon Economics director predicted that the East Bay will pick up evenmore steam because of its favorable strategic location within the Bay Area.

A number of the speakers said East Bay employment, business investment,demand for commercial construction and permits are up, with the apartments’ market leading the way. Venture capitals investments are up more than 34% inAlameda County and 9% in Contra Costa at a time when overall investments inventures in California are down 9%. New commercial development in California as a whole has risen a whopping 34% during the last year.

The commercial office real estate environment is complex, says Cassidy TurleySenior Managing Director Ric Russell. He said there is a lack of available space inmany areas, but that will change when new product soon comes on the market in2015. “Tenant demand has slowed from white hot to very warm.” The current8.7% vacancy rate in San Francisco, for instance, will go down even further in2014. Many five-year deals made during the recession will be up for renewal in2014 and prices will rise. Cassidy Turley reports that recent average commercialoffice asking rates hit $47.69 in San Francisco, a 51% increase over the recessionlow in 2009.

Lack of office availability at moderate rates in booming San Francisco will makethe East Bay more attractive.

Walter Finch Golf Classic

BOMA Member Profiles

This event at Wente Vineyards offereda great networking opportunity. The winning foursome: Dave Calhoun,BSM; Kevin FitzPatrick, Boston Properties; Jay Martinovich, BSM; and Ray Page, BSM. (More on page 7.)

Meet loyal BOMA members, Cliff Horner and Don Rogers.

(See pages 4 and 5.)For additional information on the Bay Area economy forecasts, visit: www.beaconecon.com, www.btcommercial.com, www.mbaa.org, www.trepp.com

The East Bay is expected to pick up even more steam because of its favorable location.

CRE Talent ShortageBOMA San Francisco Foundation isaddressing the challenge of replacingretiring Boomers with qualified youngprofessionals. (See page 2.)

Imagine a tenant who visits a property manage-ment office with a serious problem that affects theway the tenant operates. Instead of being greetedby an experienced, trained real estate professional,the tenant has to deal with someone who does notunderstand industry best practices or even basicbuilding rules and regulations. Or what wouldhappen if the cooling system went down on a 100degree day and the new building engineer had limited experience with such a problem and didn’t

even know which service company to call? Or whatif your property manager or facility manager suddenly takes ill and doesn’t showup and there is no one to back fill because of HR shortages?

These types of scenarios are ones that we are actually facing in our industry.How did we get into such a predicament? The answer is simple: numerous BabyBoomers are retiring within the next few years, and there aren’t enough competentreplacements.

Everyone who owns, occupies or services buildings will be affected. Conse-quently, it’s up to all of us to pitch in and solve this problem. That’s the messagethat is being broadcast by the BOMA San Francisco Foundation created to meetthis challenge. I applaud their initiative and urge everyone associated within thereal estate community, principals and associate members, to do your part.Educating our youth about the growing opportunities in commercial real estateand associated alliances needs to happen now.

Recently, BOMA San Francisco Foundation chair Sandra Boyle called togetherleaders of most of the major commercial real estate associations in the Bay Areafor a summit to describe this issue and invite others to form a joint effort. In asubsequent letter to us, she said, “This impact will affect all our respective realestate associations. It’s bigger than any one group can address on its own, and we’d like to explore ways we can collaborate.”

Boyle added, “While BOMA San Francisco may have taken a first step withthe program we’ve started with San Francisco State University, that program canbe replicated throughout the California State University System. Furthermore, the program can be expanded and enriched with additional courses to include curriculum developed by other real estate associations, to ensure that the disci-plines everyone represents are well served. Each of our associations complementsthe education that can be provided—whether it is brokerage or facility manage-ment—whether it is asset management or property management—whether it is residential or office!”

She called for creation of a multi-association task force to tackle this problem. I am convinced that by harnessing the brains and efforts of groups like IFMA,BOMA, IREM, CREW, NAIOP, CoreNet and others, we can develop and imple-ment a plan and generate the necessary resources to fund the education, training,mentorships, internships and scholarships needed to ensure that the Bay Area continues to provide the finest commercial real estate environment in the world.

Will you join us in this effort?

Thanks to Our 2013 Partners

2

Thebeau is President of BOMA Oakland/East Bay and Director of Operations -

Northern California LBA Realty.

Platinum PartnerUniversal Protection Service

Gold PartnersAble Services

ABMAlliance Roofing

PG&E

Silver PartnersArborwell

Biagini WasteCagwin & Dorward

Heathorn Mechanical ServicesHorner & Singer, LLPPerfection Sweeping

SecuritasUnisource

Principal PartnersBramasole Properties LLCBrandywine Realty Trust

CBRE, Inc.CIM

LBA Realty

President’s Corner

Melody Thebeau

BOMA HORIZONS is published byEason Communications LLC for BOMA Oakland/East Bay.

Editor: Henry Eason

Ad and Art Director: Ellen Eason

Eason Communications LLC

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

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Associate ProfileQ: Describe your BOMA involvement over the years, and comment on the value of your

participation to your company and your personal career.

A: I’ve been a member of BOMA for well over a decade now. I’ve participated on thePrograms Committee, given and chaired presentations at the luncheons, have presented atvarious BOMA Local, National and International Conferences, and am currently a memberof the Oakland/East Bay BOMA Board of Directors. Being involved in the commercial realestate industry as a commercial property owner, landlord and tenant and as an attorney witha plethora of large and small commercial real estate owner, developer, landlord and nationaltenant clients, BOMA has been a valuable resource to me in both building lasting relationships and in keeping me up to date with respect to the most recent industry issuesand challenges.

Q: What sort of things would you like to see BOMA support or engage in during thecoming year or so?

A: BOMA Oakland/East Bay currently supports some very worthwhile causes and endeavors through its charity committee, supporting charitable agencies in the community, and also advocating for its members with governing leaders and agencies including,for example, implementing reforms to California ADA law, and fighting the split parcel tax and other anti-commercial real estate billsand measures. BOMA Oakland/East Bay is also a great educational source for its members offering for example RPA/FMA courses,and energy benchmarking with energy smart programs and awards including assistance in achieving LEED certification.

Q: What advice do you have for new BOMA members?

A: I would suggest that new members get active and get involved in their local BOMA. This means at a minimum coming tothe luncheons each month and meeting the members, getting involved in the committees and taking advantage of the educationalseminars and other opportunities afforded.

Clifford R. Horner, Attorney, Horner & Singer, LLP

Cliff and his family on vacation.

5

Don Rogers is the type of guy you want in any organization, but particularly inBOMA. He prefers doing business with BOMA vendors and hires from BOMA’s jobsbank. But his commitment to the organization goes far beyond that, and he donateshis time and energy because he has gotten a lot out of his BOMA membership overthe years.

“My involvement has evolved over the years from taking to giving,” says Rogers.” I began my involvement by taking RPA classes. I have been going to the luncheons for networking and using the job bank for career networking. Now I am involved inleadership. I first started on a committee and am currently on the Board of Directors.Working in these leadership roles has provided many skills and resume support for my advancement.”

He says it’s never been more important for property managers to be in BOMAthan now, because of the looming workforce challenges. “BOMA can provide education and networking for PM’s to learn techniques to deal

with increased workload demands. And we need new young professionals to join the industry to rejuvenate its aging workforce.BOMA’s outreach to colleges and veterans is an excellent effort to meet this need,” he says.

In the future, Rogers would like to see BOMA’s mission grow “to reach out to all of the different product type ownerships inour geographic region to expand our membership to include industrial, Class B offices, medical office, colleges and universities.All can benefit from BOMA offerings.”

Rogers runs and bikes in his spare time and tries to catch Raiders games.

Donald Rogers, Vice President, CIM GroupPrincipal Profile

Don enjoys bowling with his family.

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7

BOMA members and guests played a spirited round of golf, at the Walter Finch Golf Classic,

while others enjoyed a wine tour.

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WOW! I cannot believe I have been in my position asExecutive Director for almost two years. I want to take thisopportunity thank the Board of Directors for their vision ofwhat this organization is moving toward and you the membersfor the support you have given me. We have had a quite a year!

Our Education Programs and Seminars this year wereextremely well received. The committees put in a lot of volunteer hours to bring these great programs to the members.BOMI recognized BOMA Oakland/East Bay as the numberone BOMA local with new entrants into the RPA program.We were awarded a $3,000 contribution to our new RPA Scholarship Fund. Congratulations to our new RPAs and FMAs.

New RPAsMelissa de Boer, CAC Real Estate ManagementRobert Pratt Garriso, Sierra Pacific PropertiesAnna Marie Chu, Harvest PropertiesLaura Millett, Beacon AdvisorsSteven Van Horn, Contra Costa County Public WorksGail Meyers, Contra Costa County Public WorksDavid Silva, Contra Costa County Public WorksGail Ringer, Jones Lang LaSalleLynell Fuller, CBRE, Inc.Helen Kaslin, River RockMichael Hahn, CIM Group

By Stephen Shepard,Executive Director

BOMA Oakland/East Bay

New FMAsLee Ratcliff, Department General Services: State of CAAndrea Kirkpatrick, Swig Company

This year would not have been as great as it was if not forthe extra support provided by the Partners listed below. Pleasemake sure you thank them when you see them. They made itpossible for us to grow the benefits and programs we offermembers.

BOMA PartnersPlatinum: Universal Protection ServiceGold: Able Services, ABM, Alliance Roofing and PG&ESilver: Arborwell, Biagini Waste Reduction, Cagwin &Dorward, Heathorn Mechanical Service, Horner & SingerAttorneys at Law, Perfection Sweeping, Securitas, andUnisource.Principal: Bramasole Properties, Brandywine Realty Trust,CBRE, CIM Group, and LBA Realty.

Last but not least we need to thank your outgoing BoardMembers for their selfless service to the organization and thisprofession: Deanna Drake-Copelan, CBRE, Inc.; HelenKaslin, River Rock; and Don Rogers, CIM Group.

Now for your Board of Directors for 2014-2015 as electedat the November Membership Meeting and TOBY Luncheon.

President: Manny Moreno, CBRE, Inc.Vice President: Anne Sparks, Nevada Pacific ConsultingPast President: Melody Thebeau, LBA RealtyTreasurer: Mike Meyer, Cushman & WakefieldDirectors: Principal Members: Caroline Grafft, Jones LangLaSalle; Lynn Linhares, Kennedy Wilson Properties; StaceyMcCarthy, PM Realty Group; and Myra Wright, CBRE, Inc.

Directors with one-year term remaining:Principal: Marc Barkdull and Diana HernandezAssociates: Cliff Horner and Sue Rinetti

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BOMA Oakland/East Bay1000 Broadway, Suite 200-KOakland, CA 94607

510.893.8780www.bomaoeb.org

In & Around Your BOMA