Utah Facilities January 2011

IN THIS ISSUE: Snow and Ice Management

2 I UTAH FACILITIES JANUARY 2011

4 I UTAH BUILDINGS FALL 2010

UTAH FACILITIES JANUARY 2011 I 5

42

28Developing DowntownSalt Lake City forges ahead, despite economy,with several commercial building projects

Property ManagerTodd Maybe, senior property managerfor Zions Securities Company

Office Market OutlookPositive trend continues

Property Management CompaniesValuing a property management company,beyond profit and loss

BOMA Utah Newsletter

Snow and Ice ManagementWell-run snow management contractors

On the cover:Aerial view of City Creek development. Photo courtesy CCRI.

FEATURES

JANUARY 2011

DEPARTMENTS

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Publisher’s LetterUtah Buildings is now Utah Facilities

FlooringIndoor air quality and floor care

CareersKeys to recession-proofing your career

Fire Alarm SystemsUpgrading to new technology

ContractsThe anatomy of construction defects

Building ControlsControl systems can maximize efficiency

ConstructionCost of materials flat in Utah

Public HealthPreparing for a pandemic

Fall ProtectionBuilding owners are responsible for safety

JanitorialCleaning for the Holidays

LEEDIs LEED EBOM in your budget?

LegalTax consequences of a commercial loan workout

Energy-efficient windows capture energy savings

Think outside the cubein an office redesign

Energy-efficient windows capture energy savings

As you may have noticed, Utah Buildings is now Utah Facilities, Solutions forBuilding Owners & Managers. This is one of the many exciting changes coming tothe publication. We have changed the name to more accurately reflect the magazine’spurpose, which is to help building owners and managers make informed decisionsregarding the construction, modernization and management of their facilities. Inaddition, Utah Facilities will be published bi-monthly rather than quarterly, beginningwith this issue.

Involved in a variety of disciplines, facility managers play a significant role in therealization of business objectives as well as the daily operations of buildings and theorganizations that use them. Many of our readers are high-level decision makers,contributing to strategic planning. Considering the current economic climate, buildingowners and managers have a more difficult job than ever.

One year ago financial and real estate experts were telling us to sit tight and ride out2010 because we wouldn’t see any meaningful economic recovery until 2011. Now thequestion remains, will 2011 bring a rebound to the commercial real estate sector? Willbusinesses be willing to expand? Will entrepreneurs be able to launch new companies,and will Utah’s commercial real estate industry see positive growth in leasing and newdevelopment?

The outlook for commercial real estate seems to have improved from a year ago, butour enthusiasm should be tempered by the challenges that remain. The frustratingthing is that the future of commercial real estate is not completely within our control.Whether you are a property manager, building owner, builder or developer, yourproblems are bigger than real estate, and the answers are beyond the scope of thisindustry. Problems include jobs, inventory and lending.

Despite optimism about employment growth, nobody knows where the jobs are goingto come from. Empty storefronts and vacant offices continue to be a problem andmore inventory is coming online. Banks are facing regulatory pressure to clean upbalance sheets loaded with overvalued real estate. This trifecta causes many to believethat the other recessionary shoe may still drop. And this fear continues to hurt thecommercial real estate industry.

There is some good news. Though economists have toned down their estimates for2011, most dismiss the likelihood of a second recession. Employment in the publicsector has contracted, but the private sector has finally started to add jobs andconsumer confidence is up for the fifth straight month. 2011 may be the year that theprivate sector finally takes over for the public sector in attempting to drive growth.And if the new Republican Congress cuts government spending, many anticipate astimulative effect on the economy.

CONTACTPublisherTravis [email protected]

Managing EditorKelly [email protected]

Editorial AssistantBrooklyn Ashy

Art DirectorDoug Conboy

ContributingPhotographerDana Sohm

Contributing Writers

PublisherUtah Facilities

The publisher is not responsible for the accuracy of the articles in Utah Facilities. The information containedwithin has been obtained from sources believed to be reliable. Neither the publisher nor any other party assumesliability for loss or damage as a result of reliance on this material. Appropriate professional advice should besought before making decisions.

Copyright 2010 Utah Facilities Magazine. Utah Facilities is a Trademark owned by Jengo Media.

Kyle C. JonesKynan WynneMark T. WoolleySean MurphyThomas CarlsonRich Thorn

Utah FacilitiesPO Box 970281Orem, Utah 84097Office: 801.224.5500Fax: 801.407.1602JengoMedia.com

PUBLISHER’S LETTER


Brent LaPorteD. Kevin DyrengDarin MellottEric BaxterJill RasmussenJohn AllinJosh Elder

Utah Facilities is a proudBOMA National Associate member.


13526 South 110 WestDraper, Utah 84020Telephone: 801.990.1950

3284 East Deseret Dr, Suite 7St George, Utah 84790Telephone: 435.635.0205

2230 South Cole Rd, Suite 130Boise, Idaho 83709Telephone: 208.323.8088

[email protected]

Lighting Control Solutions

Energy SavingsWith a lighting control system installed by Utah Yamas Controls, you’ll seean immediate return on your energy-saving investment. Compared withother energy-saving technologies, a lighting control system can provideboth a lower initial capital outlay and a quicker payback.

Easy Installation (Great for Retrofits) Our Powerlink lighting control systems are housed in the lighting panelboard.No extra boxes to mount. No relays to wire. No complex panels to decipher.Installation takes no more time than mounting a standard lighting panelboard.

Code Compliance and LEED Certification The ASHRAE/IESNA standard encourages energy-efficient design for bothinterior and exterior lighting. Utah has recently adopted energy codes based on these standards. Efficient lighting control is required for certificationunder the Leadership in Energy and Environmental Design (LEED) initiative.

Lighting Control Solutions

Energy SavingsWith a lighting control system installed by Utah Yamas Controls, you’ll seean immediate return on your energy-saving investment. Compared withother energy-saving technologies, a lighting control system can provideboth a lower initial capital outlay and a quicker payback.

Easy Installation (Great for Retrofits) Our Powerlink lighting control systems are housed in the lighting panelboard.No extra boxes to mount. No relays to wire. No complex panels to decipher.Installation takes no more time than mounting a standard lighting panelboard.

Code Compliance and LEED Certification The ASHRAE/IESNA standard encourages energy-efficient design for bothinterior and exterior lighting. Utah has recently adopted energy codes based on these standards. Efficient lighting control is required for certificationunder the Leadership in Energy and Environmental Design (LEED) initiative.


Photo courtesy CCRI


Between the City Creek Project, Gateway Five and

Six, 222 S. Main, the Hyatt Place Hotel, the

Performance Center on Main, the Utah Film and

Media Center, Broadway Park Loft, the O.C. Tanner

flagship store, the Leonardo, the Public Safety Complex,

the Frank E. Moss Courthouse, Harmons, and the

Questar Corporate Headquarters, downtown Salt Lake

City is rising.

“Salt Lake City is really coming into its own,” said

Jason Mathis, executive director of the Downtown

Alliance. “The challenges in the national economy have

created an opportunity for Salt Lake City to forge ahead.

It has given us a leg up on moving forward to become a

real regional capital.”

Looking toward the future, political, community and

religious leaders in Salt Lake City have strategically

planned the development of downtown Salt Lake City,

Mathis said. The City Creek project is the lynchpin in

the development of downtown, leading the way for other

projects like 222 South Main and the OC Tanner

Flagship store, he said.

“We affirm that a vibrant metropolitan center is an

important economic engine for the regional community

and supports economic development that energizes

downtown,” according to the 2010 Public Policy Guide

released by the Salt Lake Chamber. “A strong downtown

is essential for the economic strength of the entire region.”

Salt Lake City is growing its portfolio of commercial

office buildings with Gateway Five, a four-story, 65,000-

square foot building completed in 2009 by the Boyer

Company, plans for Gateway Six, the Questar Corporate

Headquarters and 222 S. Main, Salt Lake City’s first

LEED Gold Certified high-rise. Developed by Hamilton

Partners, the 460,00 square feet of 222 S. Main is nearly

60 percent leased, an indicator of the leasing climate in

Salt Lake City.

“We hope that we have made a positive contribution

to the overall tapestry of downtown,” said Bruce

Bingham, a partner with Hamilton Partners, in reference

to 222 S. Main. “Our office building is first class in every

way. We see downtown Salt Lake City as becoming

nothing but better and stronger as the years go by. …

Pound for pound, Salt Lake City has more going for it

than any other city in America.”

The residential component provided by City Creek is

also playing a major role in the development of the

Central City. Approximately 700 residential units will be

constructed in City Creek, including Richards Court and

Promontory. The Church of Jesus Christ of Latter-day

Saints’ role in the City Creek residential buildings is

serving to bring a new demographic of members of the

Church to Utah’s capital. Their participation is

portraying a safe, clean and comfortable downtown,

Mathis said.

“The residential component of City Creek is

wonderful,” said Jake Boyer, president of The Boyer

Company. “To get more people living downtown is a

positive for everybody in the downtown area.”

Other condominium projects, including the Broadway

Towers, the Westgate Lofts and the Patrick Dry Goods

Lofts, are also helping to bring young professionals and

retired baby boomers to the area, Mathis said. All of these

projects could potentially triple the population in

downtown, bringing with it significant change and

supporting the current development.

“The influx of residential living is an important

component to the growth of downtown,” said Danica

Farley, public relations representative for the Downtown

Alliance. “More residents will make the city more

vibrant, as they will be contributing economically to

downtown.”

The population growth will be welcomed with retail

and office space, introduced as needed, as well as with

better transportation to and from the city, within the city

and to the Salt Lake International Airport. Residents will

also be accommodated with the construction of a full-

service grocery store, the only one of its kind in

downtown Salt Lake City. The construction of the Utah

Performance Center and the conversion of the Utah

Theater into the Utah Film and Media Center will add

more entertainment venues to the downtown portfolio,

enhancing the nightlife for Utah residents.

“Each project is a big deal in its own way,” said

Mathis. “It is easy to get excited about each one of them.”

Salt Lake City will continue to develop its downtown

with proposals for a 1,000-room convention center hotel

next to the Salt Palace Convention Center, a streetcar line

that connects the Broadway District to The Gateway and

City Creek and a year-round public market that would be

akin to markets in other large cities.

“There is something different everyday,” Farley said.

“We see new businesses all of the time. There is such a

vibrancy and a great network of people who all work

together ...There has long been the foundation for this to

happen. With the right timing and the right people, it all

came together.” UF

Downtown stories start on page 10


Six Gateway will be the capstone

building to the Rio Grande

Street at The Gateway in Salt

Lake City’s downtown, completing a

multi-use project that began in

December 1999 with the $16.5 million

renovation of the Union Pacific Depot

and opened in 2001 in time for the

2002 Winter Olympics.

“The vision behind the project was

to provide a mixed-use environment

that would unite retail, office, cultural,

residential and entertainment space in a

location that would enliven the

downtown area and give people in Utah

a reason to pass regional suburban malls

and head downtown,” said Jake Boyer,

president of the Boyer Company, which

owns and manages the office buildings

at The Gateway. “Over the years, the

critics have been silenced by Gateway’s

success and its ability to bring people

and sales tax revenue back into

downtown Salt Lake.”

Six Gateway will add to the

continued success of the Gateway and

downtown Salt Lake City, Boyer said.

“Six Gateway is another addition to

a lot of great stuff going on in terms of

growth in our downtown,” said Boyer.

“The Gateway is an important part of

the downtown area.”

The Boyer Company carefully

considered what to build in the vacant

lot, contemplating the construction of a

Nordstrom or another large retailer on

the site. Eventually, the company

responded to the needs and demands of

the market and settled on building

more office space. Boyer was close to

moving forward on the project nearly

two years ago when the economy

collapsed. At that time, the company

and its investors decided to “put the

project on ice”and wait for the economy

to turn, Boyer said.

Now, a year and a half later, the

financial market has stabilized and

tenant interest has increased enough to

breathe new life into the project, Boyer

said. The Boyer Company is currently

negotiating leases with several

companies in hopes to secure an anchor

tenant and generate more leasing

interest. If all goes well, construction on

Six Gateway could begin as early as the

Six GatewayBuilding Owner:The Boyer Company

Building Type:Office Commercial


end of 2010 with a year-long

construction schedule. The completion

of Six Gateway will bring the total

office space of The Gateway to

approximately 760,000 square feet.

“Six Gateway will further build upon

the success of the other office space

being built in the area,” Boyer said. “We

are excited about what it will do. We are

excited about The Gateway’s continued

success.”

The 105,000-square foot, five story,

Class A building will be the sixth and

final office building at The Gateway, an

open-air destination providing

shopping, dining and living in one

location. Positioned adjacent to the

newly built 128-room Hyatt Place hotel

and the Fidelity Investment building,

Six Gateway will have views of Rio

Grande Street and the Olympic Legacy

Plaza. Designed by Babcock Design

Group, Six Gateway will be similar in

design to the Union Pacific Station

with a red brick facade rather than the

stucco used on the other Gateway

buildings. The building will likely be

Leadership in Energy and

Environmental Design (LEED)

Certified and will have the most

advanced mechanical systems available.

“Once people see it coming out of

the ground, it will generate a lot of

interest,” Boyer said. “There is office

space to be found in downtown, but this

type of product in this type of

environment is not as common as you

might think. So it is pretty appealing.”

Historically, The Gateway has had

few vacancies and currently is leasing 98

percent of its office space. Its location

and amenities play a vital role in its

appeal, Boyer said. Its proximity to

Interstate 15, Trax, the commuter train

and the future light rail make The

Gateway offices ideal for many tenants,

Boyer said. With 13 full-scale

restaurants, a food court, a fitness

facility and the Hyatt Place hotel, the

amenities are hard to beat. Employees

have easy access to shopping, the

Olympic Legacy Parkway and other

downtown sites. Additionally, Boyer

said, The Gateway provides a safe

environment for its tenants and patrons.

“The Gateway is a place for people

to office, to live, to work, to shop and to

play,” Boyer said. “It is the whole

experience. A 24-hour, seven-day-a-

week experience.”

The Utah Performance Center on

Main will be a 2,500-seat theaterfor Broadway shows and other

community activities and events. As acontinuation of City Creek, thePerformance Center will “provide aneconomic catalyst on Main Streetthrough a state-of-the-art venue for artsenthusiasts that will present touringBroadway, local performances, andexceptional cultural experiences toengage, excite, unite and inspire,”according to the Salt Lake CityRedevelopment Agency.

A development team, which includesSwisher, Garfield, Traub as thedeveloper, VCBO Architecture and

Moshe Safdi as the architects and

Hamilton Partners as the private

developer, is moving forward on the

financing and feasibility of the

Performance Center. The proposed

facility will be approximately 148,000

square feet, with an estimated 150

performances per year and close to

300,000 patrons annually. The Center is

expected to have a yearly citywide

economic impact of $27.3 million.

In addition to the Performing Center,

Hamilton Partners plans to develop an

office building on the corner of Main

Street and 100 South. Still in the

conceptual design phase, the office

building is expected to be approximately

400,000 square feet with about 20

stories. Hamilton Partners will not begin

construction on the building until the

economy has stabilized and the market

has need of more office space, said Bruce

Bingham of Hamilton Partners.

“We believe that the office building

and Performing Center will be a

complement to the quality and design of

City Creek,” said Bingham.

Lisa Harrison Smith, deputy director

of communications for the RDA, said

the Utah Performance Center is still in

the early stages of development. Before

construction can begin, the RDA will be

working to finalize a plan of finance,

perform fiscal and economic impact

study, finalize operating models and

market analysis and analyze theater

impact on existing venues and arts

groups. Once the design has been

completed on the Center, construction

will take approximately 36 months.

Once approved and complete, the

Utah Performance Center will increase

the livability and viability of downtown

Salt Lake, Harrison Smith said. The

Center will draw visitors who will

patronage local restaurants and

businesses, acting as an economic driver

for the city, she said.

“The performing arts center will be a

centerpiece of Main Street attracting arts

lovers, building new audiences for all

downtown arts organizations, generating

stronger patronage for downtown

businesses, raising property values and

welcoming the region to Utah’s Capital

City,” according to the RDA.

The conversion of the Utah Theater

into the Utah Film and Media Center

will also complement the Performance

Center.The RDA, which owns the Utah

Theater, wants to phase this

development with street front retail or

development of art and cultural facilities.

UtahPerformanceCenteron MainBuilding Owner:Salt Lake City

Building Type:Arts and Culture Building


City Creek, a 20-acre mixed-use development project

sponsored by The Church of Jesus Christ of Latter-day Saints, is an integral part of the revitalization of

downtown Salt Lake City. The project, one of the biggestdevelopments in the United States with eight office towers, adepartment store-anchored regional shopping center, 700residential units and 5,000 underground parking stalls, isnearing completion after nearly 10 years since the project wasfirst conceived.

“We are in the final miles of a marathon,” said Mark B.Gibbons, president of City Creek Reserve, Inc., the downtownSalt Lake City redevelopment arm of the LDS Church.“Today we are probably at the 23-mile mark of that 26-milemarathon.”

On March 22, 2012, the 900,000 square-foot City Creekretail center, anchored by Nordstrom, located mid-block onWest Temple, and Macy’s, located on the east side of MainStreet, will open, concluding the final piece in the constructionof the three-block project. Managed mostly by TaubmanCenters, more than 80 retail stores, some open air and somelocated beneath a retractable roof, will flank Nordstrom andMacy’s, bringing more than 2,000 jobs to downtown. Thetotal retail square footage will be less than was available beforethe City Creek development began to better accommodateThe Gateway, allowing both projects to coexist and remain

viable to downtown, Gibbons said.A food court opened in the summer of 2009 and currently

has nine operating kitchens. Vendors include A Taste of RedIguana, Bocata, Chang Chun, Great Steak, McDonald’s,Roxberry Juice, Sbarro, Subway and Suki Hana. HarmonsGrocery Story is currently building a full-service grocery storyat 135 E. 100 South.

By reconfiguring the available retail space in downtown,CCRI hopes to revitalize the Center City and strengthenUtah’s economy, Gibbons said. More than 10 million visitorsare expected to visit City Creek per year, doubling the numberof yearly visitors to Temple Square, he said.

CCRI hopes the development and the addition of 800,000square feet of residential space will encourage populationgrowth in downtown. Approximately 700 residential units willbe built, some of which will be rentable properties. Theresidential buildings, Richards Court, The Regent at CityCreek and Promontory, should all be completed by mid-2011,he said.

The 2.1 million square-feet of office space will also be vitalin revitalizing downtown, Gibbons said. A six-story officebuilding is under construction on South Temple and isexpected to be complete by mid-2011. The KeyBank Towerhas been remodeled. The Deseret Building, also known as theFirst Security Building, has been almost completely restoredand is now “a beautiful jewel,” Gibbons said.

The entire development will encompass green space, waterfeatures and open walkways.The flow path of the south fork ofCity Creek, the lifeblood for the Mormon pioneers who firstarrived in the Salt Lake Valley in 1847, will be reintroducedinto the development as part of the seven acres of gardens andlandscaped open space. Walkways will follow historic routesfrom pioneer days, allowing mid-block access to residential,

T he General Services Administration will

own, operate and manage the newfederal courthouse which will be built on

the former site of the Historic Odd Fellows Hallon the block between 300 and 400 South and

Frank E. MossFederalCourthouse Building Owner:General Services Administration

Type:Commercial Office

Building Owner:City Creek Reserve, Inc.

Building Type:Mixed-Use

City Creek

Main Street and West Temple.A new federal courthouse was

necessary for Salt Lake City becausethe Frank E. Moss Courthouse doesnot have sufficient security nor does itmeet the new standards for federalcourthouses, said Al Camp, GSAproject manager on the courthouseproject.

The GSA will be responsible for the409,000 gross square-foot building,comprised of 10 stories of above-ground office space and two stories ofunderground parking. The buildingwill consist of 14 courtrooms, 16judge’s chambers, a floor for U.S.Marshal’s Services and space for otheradministrative uses, Camp said.

Planned to be built under theLEED (Leadership in Energy andEnvironmental Design) Goldstandards, the Federal Courthouse willhave high-efficiency boilers, chillersand glazing. The building controlsystem will also be comprised of themost up-to-date technology,minimizing the building’s energyconsumption.

“The whole building is kind of aspecial feature,” said SergeyAkhpatelov, associate with NaylorWentworth Lund Architects, thearchitectural firm on the project.

Okland Construction, who wasawarded the bid on the project, will

begin construction on the courthouseonce final approval has been given onthe funding. The building will take 38months to build. The U.S. FederalCourts will be moved into the newbuilding upon completion, at whichtime the Frank E. Moss Courthousewill be renovated to later house theBankruptcy Court and the U.S.Attorney’s Office.

“The economy is such that thebidding climate is favorable. It is theperfect time to build, from an owner’sperspective,” Camp said. “We areanxious to move forward on theconstruction funding and build it.”

office and retail elements of the community.To maximize the available open space, all parking at City

Creek will be underground. Approximately 5,000 stalls will beavailable for retail, residential and office parking. Gibbonsboasted about the innovative features of the parking garages,noting flat parking decks, columns which are only located at thetops of parking stalls and highly-automated parking machines.

Once completed, the entire development will revitalize

downtown Salt Lake City, ensuring a viable future for Utah’sresidents, Gibbons said. Not only will City Creek breathe newlife into Utah’s City Center, it will also “preserve and enhancethe world headquarters of the Church of Jesus Christ ofLatter-day Saints and respect the history and the heritage thatexists in that location,” Gibbons said. “It is a gift to this city,this community and this state by the Church of Jesus Christof Latter-day Saints.”



Rendering courtesy EDA Architects

When The Leonardo opens

in the spring of 2011 in the

renovated Salt Lake City

Main Library, the building will operate

on updated mechanical and electrical

systems, contributing to the energy

efficiency of the more-than 50-year-old

structure, located at 209 E. 500 South.

The 113,000 square-foot building is

being converted into a museum for on-

site exhibits, workshops, classes and

teacher training that explore the

multidisciplinary worlds of science,

technology and art, courtesy of The

Leonardo, said Larry Migliaccio, The

Leonardo project manager. The

renovation of the building, which

began in July 2010, is being funded

through a $10.2 million bond. The

building will be completely remodeled

inside, while the exterior of the

building will be enhanced and

preserved.

“We are trying to upgrade systems

so they meet current building codes

and last another 50 years,” said Fred

Broberg, a mechanical engineer with

Colvin Engineering Associates and

senior project manager on The

Leonardo.

All of the old electrical systems will

be replaced with up-to-date, energy-

efficient systems, said Dave Whitton,

principal at Envision Engineering,

electrical consultants for The Leonardo

project. The transformers, which were

old and leaking, are being replaced with

new, pad mounted oil transformers.

New electrical panels will be installed.

And wiring devices will be replaced

with new switches and outlets.

A 30 KW photovoltaic system will

be installed on the roof to generate

additional energy for the building.

New, more energy-efficient light

fixtures will be used throughout the

building. Daylight harvesting, a control

system that reduces the use of artificial

lighting provided by interior electric

lamps by utilizing natural daylight

instead, will be implemented in offices

with perimeter windows.

TheLeonardoBuilding Owner:Salt Lake City

Building Type:Art, Culture and Science Center

Construction has begun on the six-floor, 171,000

square-foot Questar Corporate Headquarters, with

plans for tenants to occupy the space at 333 S. State

Street by February 2012.The shell and core of the building will

be complete in August 2011, at which time the building will be

turned over to Questar for tenant improvements.

Wasatch Commercial Management Inc. is developing the

new office tower, which will house 600 Questar employees, as

a new LEED Silver-certified building. In addition to the office

space, the ground floor of the building will have 6,500 square

feet of retail and restaurant space. Wasatch is partnering with

Zions Bank to build the $45 million building. Sub-contractors

on the project include EDA Architects, Inc., Dunn Associates,

Colvin Engineering Associates, Inc., EELD Associates,

Psomas Engineers and Arcsitio Landscape Architects.

Wasatch Commercial Management will manage the

Questar building in addition to the City Center building,

which occupies the same block, adding to its already extensive

downtown building portfolio of the Wells Fargo Center, the

Ken Garff building and 50 and 80 West Broadway buildings.

As general contractor and owner of the building, Wasatch

Commercial Management has a vested interest in ensuring

long-term durability while lowering life-cycle and

maintenance costs. Tait Ketcham, principal at

Dunn Associates, the

structural engineers for the Questar building, said the project

is a good example of value engineering, the process of finding

a system or product that saves money without sacrificing

function.

Communications between Wasatch and its architects and

engineers has been thorough and efficient, contributing to a

more economical build of the Questar building, Ketcham said.

For example, when the tenant, Questar, requested some design

revisions on the building, Wasatch was able to participate in

the discussions regarding the changes.

“They were able to coordinate with the sub-contractors to

implement those changes in a way that was quicker than the

former process of revising and submitting changes for

approval,” Ketcham said. “They were able to inform their subs

of upcoming changes sooner than what would have otherwise

been accomplished. Obviously as a design evolves, there are

changes that occur. With Wasatch building and owning the

building, they can comprehend the impact of those changes

more fully.”

Not only is Wasatch making the most of its position as

general contractor, the company is also making the most of the

current economic conditions in Salt Lake City. John

Dahlstrom, executive vice president of general council of

Wastach Commercial Management, said the timing of the

construction of the Questar building couldn’t have been better

with the City Creek development nearing completion and the

low cost of building supplies. And since the building will be

mostly occupied by Questar, the additional office space to

downtown Salt Lake City should have minimal impact on the

market, Dahlstrom added.

“We think the timing is perfect,” Dahlstrom said. “We hit

the building market at a time when a lot of projects were on

hold, and those that were being developed were reaching the

end of their development cycle. It is a favorable time in the

economic construction cycle in Salt Lake City to build at a

cost that we couldn’t have a year or two ago.”


Additionally, the HVAC, mechanical,

plumbing and fire protection systems will

be completely updated in the building,

said Broberg. The HVAC system will

have new coils and controls. New

plumbing and piping fixtures and the

addition of overflow drains will bring the

building up to code, he said.

“We are replacing older equipment so

it will last longer. Putting in new controls

so it will control better,” said Broberg.

“We are updating it to meet current

building code, which is important for life

safety and ventilation.”

The combination of the new

mechanical and electrical systems will

contribute to the building acquiring

LEED (Leadership in Energy and

Environmental Design) Silver

Certification, a new requirement of all

Salt Lake City-owned buildings. In

addition, the seismic upgrades and the

abated asbestos will contribute to a

healthier and safer building for tenants

and visitors.

“Many changes will take place that

will not be visible to people who are

walking through the building,” Broberg

said. “But the building will function

better overall.”

The renovation of The Leonardo is

expected to be complete in the spring of

2011, with an opening date scheduled for

April 15. Ascent Construction is the

general contractor on the project. AJC

Architects were the designers on the

renovation.

“This will be a show piece for the

residents of Salt Lake City and is

expected to be a draw for tourism,” said

Migliaccio, who works for Parsons

Brinckerhoff.

Questar CorporateHeadquartersBuilding Owner:Wasatch Commercial Management Inc.Building Type:Commercial Office and Retail

Construction has begun on the

43,410 square-foot CityCreek Center Harmons, the

only full-service grocery store in SaltLake City’s central business district.

“This will be the first grocery storeto really be right downtown,” saidFrank Lundquist, vice president ofstore development for HarmonsGrocery Stores. “I think there is adefinite need for a grocer down there.”

Harmons had been looking for asite to build a downtown store whenthe Church of Jesus Christ of Latter-day Saints invited the grocer to be apart of the City Creek development,offering the site at 135 E. 100 Southfor the construction of the building.

“We’re certainly grateful to the LDSChurch for seeking our local grocerychain for this opportunity,and we’ve beenresearching, planning and testing thelatest trends in fresh foods, services andprocesses in the grocery industry sincethe announcement of this store nearlyfour years ago,” said Bob Harmon, co-owner and vice president of Harmons.

As part of the City Creek Center,Harmons will provide downtownresidents with signature fresh foods,including artisan bread, a carving

station with hot entrees, Italian gelatoand a large delicatessen full of freshly-prepared foods, said Lundquist. Theground level of the grocery will housefresh foods, a pharmacy, a floraldepartment, a deli, a pizza oven, agourmet cheese island, salad and olivebars, a custom meat counter, a producedepartment and other groceries. Theupper level will consist of a 18,412square-foot mezzanine with a creditunion, a Temper gourmet cookingproduct section and a cooking school,much like the Bangerter Crossingstore, he said. An upscale seating areawith a fireplace, couches, tables andchairs and Wi-Fi access will beavailable to customers.

Due to limited surface parking indowntown, a parking garage, fullyequipped with elevators, will be builtabove the store — an unusual featurefor a grocer in Utah.The parking garagewill mimic those found above grocerystores in San Francisco and LosAngeles. Two hundred stalls will beavailable for Harmons customers, withthe remainder being reserved for theLDS Church. Lundquist said theenclosed parking structure will be

especially beneficial during rain or snowstorms, helping to keep customers andtheir groceries dry. He suspected thatmanagement of the garage wouldrequire a slightly different skill set thanmanagement of the typical field parkingfound at other Harmons.

Harmons City Creek will look quitedifferent from the traditional Harmonsstores. The company has decided toforgo its traditional solid brick design,replacing the facade with expansiveglass exteriors, complying withdowntown ordinances, Lundquist said.

The design and construction teamon the downtown Harmons includesOkland Construction, Skidmore,Owings and Merrill, LLC, PrescottMuir Architects, City Creek Reserve,Inc, MHTN Architects, SpectrumEngineers and ProfessionalEngineering Services. Construction onthe City Creek Harmons is expectedto be complete by late 2011.

“Harmons is doing its part to boostthe local economy through the CityCreek project, and we appreciate thecommunity’s enthusiasm and supportof our locally-owned downtown store,”said Harmon.

Building Owner:Harmons

Building Type:Commercial Grocer

Harmons



N early 10 years ago, Layton Construction Company

started Interior Construction Specialists, Inc. to

meet the needs of commercial tenant improvement,

renovation and remodel markets. Their services have been

especially beneficial for owners and tenants of Salt Lake

City’s downtown office buildings who are trying to stay

competitive in a market where a significant amount of new

office space is being introduced, said Alan Rindlisbacher of

the Layton Companies.

“The bottom line is there is activity going on in downtown

and it is opening up opportunities for tenant improvement,”

Rindlisbacher said. “It is all part of the fact that downtown is

rising.”

As Hamilton Partners secures new tenants in its Boston

Building in downtown Salt Lake, tenant improvement work

is being completed throughout the entire building, as well as

a core upgrade including HVAC and seismic work. Recently,

EDA Architects relocated to the Boston Building after 20

years in the Broadway Center. The 7,400 square feet now

occupied by EDA was renovated to show the history of the

downtown office building. Demolished interiors were from

an earlier era where all elements of the building’s structure

were hidden behind drywall and dropped ceilings. The space

now has exposed floors, beams, columns and masonry and

includes 40 workstations, multiple collaborative breakout

spaces along with large conference spaces.

“The move to this historic structure symbolizes EDA’s

continued commitment to the downtown community,”

according to EDA’s website.

PriceWaterhouseCoopers, an accounting firm, is also moving

into space that was recently renovated by Interior Construction

Specialists in the One Utah Center on Main Street. The 4,700

square feet of office space will be completed by early January 2011.

Organizational changes associated with KSL TV, KSL

Radio and the Deseret News led to the renovation of two

floors of the Triad Center. Build-out is also occurring on two

additional floors of the Triad Center.

In the past decade, Interior Construction Specialists has

completed nearly $500 million in renovations and tenant

improvements. That work comprises a long list of “small

projects” that have added up to big business for tenants such

as American Express, CB Richard Ellis, Discover Card

Services, Ernst & Young, Holme Roberts & Owen and

Squatters Pub Brewery. UF

Keeping Up with the Jones’Building Owners Turn to Tenant Improvements,

Renovations to Stay Competitive

Interior of EDA Architects officespace in the Boston Building.Photo courtesy Chris Knoles

of The Layton Companies

CommunicationKey toEffectivePropertyManagement By Kelly Lux

Todd Maybe, Senior PropertyManager for Zions Securities

Company. Photo by Dana Sohm.

Todd Maybe was introduced into

the property management world

at a young age. His father, who

was a building manager in downtown

Salt Lake City, would bring the young

Maybe to work with him and show him

the chillers and the high speed motors

that kept the buildings operational.

During these outings, Maybe learned to

love building equipment and systems.

“I’ve been around this stuff for a long

time,” said Maybe, who is now the

senior property manager for Zions

Securities Company LLC. “Buildings

intrigue me.”

Maybe was employed as a master

electrician in the 1980s when his father

invited him to work at the JCPenney on

310 S. Main in Salt Lake City as a

building engineer. Maybe accepted,

wanting to come in from the cold.

Eventually, Zions Securities offered

Maybe his father’s job managing the

JCPenney Building. Maybe had been

anticipating the offer and had prepared

himself by going back to school and

getting his bachelor’s degree in business

management. Maybe would later

become the senior property manager for

Zions Securities.

“I wanted to get rid of my suit and

put my Levi’s back on and actually take

care of the equipment side, where you

can see what is broken and you can go in

and take care of it and see the results of

your work,” Maybe said.



“I am very interested in what makes

the buildings tick and the structure of

buildings.”

Primarily over the management of

the 500,000 square-foot Triad Center,

located at 55 N. 300 West in Salt Lake

City, Maybe manages the operations

staff for each building at the Triad

Center and works with another

property manager who oversees

additional properties owned by Zions

Securities. The complex nature of the

commercial property of the Triad

Center can be challenging at times,

Maybe said. The Triad Center consists

of the BYU Salt Lake Center, the LDS

Business College, the Devereaux

House, the Carriage Cafe and two

other office buildings, as well as

parking facilities, creating a challenging

mix to manage.

“It is such a big mixed-use property

and there are so many different people

involved that I sometimes feel like I

am the juggler keeping the stack

together and keeping it moving,”

Maybe said. “I just have to make sure

that everyone is aware of the changes

and that we make sure we consider

everyone who is involved.”

As an older facility built in 1984,

Maybe said the Triad Center is

undergoing a series of upgrades,

including restoration work,

modernization of elevators, fire system

upgrades and new, energy-efficient

mechanical systems. All of these

changes require Maybe to maintain

communications with all tenants,

keeping them involved and aware of

what is going on in their buildings.

These upgrades are part of Maybe’s

focus on preventative maintenance. He

believes that foresight in determining

what systems need to be maintained

and what systems need to be upgraded

is the best way to protect the building

owner and their assets.

“It is just putting that five-year plan

together and making sure that you put

forward the work and the effort to make

sure it is the best solution to fix problems

or upgrade systems,” Maybe said.

Besides maintaining the building,

Maybe feels it is also important to keep

tenants happy.

“I want to make sure the property

looks nice, that people are treated fairly

and honestly and that the tenants are

respected,” Maybe said. “We make sure

we take care of our tenants and that

they are happy with the services they

get from us. … I wouldn’t be in

business if the tenants didn’t want to be

in my property, if I didn’t treat them

fairly and provide them with the

services that they need.”

This management style may be part

of the reason why the Triad Center is at

full leasing capacity. The economy has

had little impact on the property,

Maybe said. Operating as an

educational center has also played a

role in the buildings’ success and its

future, which is to convert the entire

Triad Center into an education facility.

During this transition, Maybe plans

to continue with operations as usual at

the Center. And, as the president-elect

of the Building Owners and Managers

Association of Utah, he will continue

to look for new opportunities to

improve his skills and gain knowledge

about the industry.

Maybe believes that participation in

BOMA, or any similar organization,

can be a great benefit to property

managers. BOMA provides oppor-

tunities for building owners and

managers to exchange ideas and

perspectives. Maybe calls it education

without the cost of tuition.

“It goes way beyond being a

member of an organization and having

lunch,” Maybe said. “It is school in

itself. It is a place where you can better

yourself and improve your skills.” UF

property manager


Office demand picked up

during 2010, but remainedat subdued levels. Looking

ahead to 2011, it’s expected thepositive trends will continue andsteadily improve. Much like 2010,the first half of 2011 will be affectedby a handful of large transactions.The Cottonwood submarket isprobably the most dramatic exampleof how large transactions can inflatemarket indicators.

When several tenants move intotheir recently leased space during thefirst half of 2011, Cottonwood ClassA vacancy is estimated to fall toaround 3 percent. This year,Cottonwood’s performance will bemost affected by Fusion-io, arelatively new company that isdeveloping solid state storageproducts. Their expansion at theCottonwood Corporate Center willtotal almost 118,000 square feet, orroughly 8 percent of Class A space inthe entire submarket. Although thisrebound is exemplary, not all

submarkets will achieve anywherenear that level of success in 2011.

A few key developments will aidrecovery on a market-wide basis overthe next year. First, most office spaceinventory will be on the market by thebeginning of 2011, including formersingle tenant properties. Additionally,the duration of the “Great Recession”and accompanying problems in thefinancial sector caused a tremendousrestriction in credit availability. As aresult,many projects were not funded,preventing large amounts of newsupply from entering the market.Without new office construction,demand will increase for existingspace, allowing the market to morequickly reach supply and demandequilibrium. Vacancy rates can beexpected to decrease this year andasking lease rates will stabilize. Highdemand areas are even likely toexperience upward pressure on askinglease rates by the second half of theyear. Furthermore, favorabledemographics, which cushioned the

state’s economy from reaching lowerlevels, will amplify positive trendsduring the coming year.

Current economic forecasts for2011 give reason to be optimistic.Arthur Jones, senior economist at CBRichard Ellis Econometric Advisors(CBRE-EA), expects job growth inSalt Lake to outpace 2010 levels andaccelerate during the second half of2011. Professional service sectors,which drive office growth inparticular, will show a markedimprovement during the coming year.By the second quarter of 2012,CBRE-EA expects a total of justmore than 16,000 new office jobs tobe created before normalizing athistoric trend levels. Office product inSalt Lake will benefit more thanother markets due to a local economythat is strongly oriented towardprofessional services.

Although Salt Lake’s economyboasts many favorable attributes thatwill help it recover, a dramaticturnaround in demand for office space

Office Market Outlook for 2011Positive Trends Expected to Continue, Improve SteadilyBy Darin Mellott

Photo by Dana Sohm

should not be expected. However,conditions will continue to improve andoutperform national averages. Many ofthe same business strategiesimplemented during 2010 will berequired in 2011.

From a property managementperspective, not much changes accordingto Gary Coker, managing director ofAsset Services at CBRE.No matter whatthe general economic outlook, Cokersaid, “Sound property managementfundamentals are always important, butin a downturn, we place an even strongeremphasis on tenant relations andretention.” CBRE building managersstrive to find and employ the most costeffective methods to maintain assets.According to Coker, “Our managersfocus on lowering operating expenses,which become even more critical topreserve asset values during a downturn.”

From a leasing perspective, landlordsneed to remain aggressive. Althoughdemand trends are encouraging, largeamounts of shadow and former singletenant space entered the market over thelast year. For that reason, vacancycontinues to remain at elevated levels inspite of a return to positive absorption.Incremental improvements in demandwill not translate into decreasedcompetition for landlords during the near-term due to an excess amount of inventoryalready on the market in most areas.

Moving forward, new spaceutilization techniques will be a drag ondemand. One of the most dramaticexamples nationally, is the accountingfirm Deloitte’s new headquarters in SanFrancisco. Although the company plansto increase its current workforce by 10percent, total square footage occupiedwill shrink by roughly 40 percent.Similarly, in Salt Lake City, investmentfirm Goldman Sachs is on the cuttingedge of creating more efficientworkspaces. Goldman will be locatingan estimated 1,250 employees in154,000 square feet of office space, or123 square feet per employee. Deloitte’splans allocated almost exactly 100square feet per employee.

Both Deloitte and Goldmanrepresent a dramatic departure from the200 square feet per employee average

currently used to calculate space needs.Interestingly, companies will now be ableto lease space in newer buildings that canhandle increased density, feature greentechnology and boost prestige, all whilepaying lower rent on a per employeebasis. First Vice President TabCornelison at CBRE commented aboutrecent trends saying, “Whenorganizations evaluate their office needs,they are focused on employing the mostefficient and creative office designsavailable. Additionally, tenants areexpecting deep discounts due to thegenerally subdued state of the economy.”

The year 2011 will not usher in thesame type of euphoric growth that wasobserved in commercial real estateduring the last decade. Barring anyexternal economic shocks, 2011 will bemuch like 2010 with incrementalimprovement, but at an accelerated rate.Aside from a few large movements,underlying trends will be lessimpressive. Consistently robustabsorption will only return as the jobmarket recovers. Furthermore, tenants

will require less square footage as officespaces are designed to be more efficient.Lease renewals during the coming yearwill be signed in many cases byorganizations that emerged muchleaner from the recession. As a result,space inefficiencies created by workforce contractions will be correctingthemselves, further dampening growth.Continued challenges facing the marketwill require landlords in particular tomaintain an aggressive approach totheir business.

Darin Mellott is a research analyst atCB Richard Ellis. Additional contributionand editorial review by StephanieMarthakis, research manager at CBRE.CB Richard Ellis offers strategic adviceand execution for property sales andleasing; corporate services; property,facilities and project management;mortgage banking; appraisal andvaluation; development services;investment management; and researchand consulting.Visit their website atwww.cbre.com/slc. UF


office market outlook


Conserving natural resources

and improving the indoor

environment of retail locations

to make it more advantageous for

customers to visit is a common interest

among building owners. The causes of

poor indoor air quality are better

understood today, yet options that lead

to better air quality are sometimes

overlooked. Not only are basic design

elements, such as ventilation systems,

critical, but architects, designers and

facility managers need to also recognize

the impact of building materials and

cleaning processes.

The choices we make for carpet

cleaning can impact these

environmental concerns and should be

taken into consideration. Along with

the focus of using environmentally-

friendly (green) cleaning products, it is

also important to review the amount of

water used during cleaning and the

amount of organic particles (mold

spores) released into the air due to

excessive moisture in the carpet.

Dusts and bio-aerosols are common

contributors to ongoing poor indoor air

quality. (Bio-aerosols can be pollen,

bacterial, fungal or mites.) Therefore, it

is essential that buildings be kept clean

and dry. Poor cleaning practices will

contribute to the accumulation of dusts

and biological debris.

Inadequate frequency of cleaning or

incorrect cleaning can result in poor

indoor air quality due to soil

contaminates that build up in the

carpet without proper removal.

Airborne particulates and organic

growth increases as the soil levels grow.

The introduction of substandard

cleaning chemicals can trap and attract

soil more rapidly.

For decades, the popular choice for

carpet cleaning has been hot water or

steam extraction,

which utilizes a

high volume of

water and

detergent solution

to rinse the soil

from the carpet.

This method takes

an extended time

to dry and the

moisture left behind can breed mold and

mildew spores that may be released into

the indoor environment. Some

extraction chemicals can also cause rapid

re-soiling due to the detergent residue

left in the carpeting after it dries. This

method should only be used for

restorative purposes and be followed by

fans that dry the carpet as quick as

possible.

Another alternative is dry

compound “powder” cleaning. This

absorbent mixture, resembling wet

sawdust or powder, is spread over the

carpet. A machine brushes the mixture

into the carpet to absorb the dirt.When

the mixture dries, it is vacuumed out.

This method does not have over-

wetting or moisture concerns, but

certain soil levels might not be fully

removed and powder particulates are

sometimes left in the carpet and may be

released into the indoor environment.

This method usually requires an annual

hot water extraction to remove any

powder or excessive soil residues.

A technology that is gaining strength

for retail spaces is low moisture

encapsulation cleaning. Encapsulation

utilizes a specialized polymer

technology that removes soil from the

carpet fibers and encapsulates or

surrounds it in a crystalline coating that

dries brittle for easy removal with a

HEPA filter vacuum. This method

utilizes a foam/spray application with

brush or pad agitation which minimizes

the water required for effective cleaning.

The following are the most

noteworthy benefits of encapsulation

carpet cleaning:

• Powerful Polymers: These

detergent polymers encapsulate

and suspend ground-in dirt. The

polymers also enhance the

efficiency of routine vacuuming,

allowing for continued removal of

residual soils after the initial

application. This preserves the

appearance of the carpet fiber

long term with less disruption.

• Stain Resistant: Encapsulation

solutions also contain stain

resistors that provide superior

protection from acid dyes

commonly found in food and

other items.

Proper Floor CareImproves Air QualityBy Thomas Carlson

Indoor Air Quality• The levels of some pollutants in

indoor air have been found to beconsiderably greater than inoutdoor air.

• The average person spendsapproximately 90 percent of his orher time indoors.

• OSHA estimates 30 percents ofcommercial buildings have indoorair quality problems — potentiallyaffecting about 21 million people.

• Surface Tension Modifiers:

These chemicals enhance the

product’s efficiency and are

particularly effective in removing

oils and greasy dirt found in many

commercial carpets.

• Continued Protection: Correct

cleaning frequently, utilizing high

quality encapsulation products,

can keep the carpeting looking

great with little visual

degradation between cleanings

due to the soil and stain resistant

properties that are introduced

with each cleaning.

• Water Conservation:

Significantly less water is used for

encapsulation cleaning versus

conventional hot water extraction,

which enables use of carpeted

areas sooner. This keeps the

carpeted areas accessible to

customers and also eliminates

problems which can be caused by

lingering moisture.

• Indoor Air Quality: Creates

fresher, healthier environments

by reducing odors and soiling

caused by either excess water or

sticky residues. Organic

compounds such as oils,

particulates, mold, mildew and

fungus are encapsulated and

many times eliminated from

existing contaminated carpet.

• EPA (dfe) designed for the

environment “Green”: dfe

Certified encapsulation carpet

cleaning products will not harm

the environment. They are free of

hazardous air pollutants that can

negatively affect indoor air quality.

In addition, the product contains a

light, clean, fresh scent as opposed

to unpleasant chemical odors,

which are emitted from traditional

carpet cleaning solutions.

With Indoor Air Quality (IAQ)

being an area of increased government

and building occupant concern, it is

apparent that the focus on cleaning will

be equally important for health reasons

as well as appearance levels. An

efficiently planned, regular maintenance

program for your commercial carpet will

create a more pleasant environment for

your customer, prolong carpet fiber life

and improve carpet appearance. The

correct carpet cleaning methods will

help conserve natural resources and

provide a clean indoor environment for

your patrons.

Thomas E. Carlson, president of

Commercial Service Solutions, has nearly

three decades of experience in all aspects of

the carpet industry, including production,

installation and maintenance. UF


flooring

Keys to Recession-Proofing Your Careerin Property Management


careers

A s the nation struggles through

the current recession, theunemployment rate remains

unstable, threatening the stability ofmany property manager’s careers.Proactive measures like increasing yourjob performance and setting goals canhelp to recession-proof your career.

“To recession-proof your career,do anhonest self-assessment, accept the truthand move forward to change your futureand your career,” said Michael Cowley,president of CE Maintenance Solutions,at the Facility Decisions Conference &Expo in Las Vegas. Property managerswho want stability in their careers shouldanalyze their job performance throughhonest critiques, performance appraisalsand peer evaluations, he said.

Honestly assessing your career is thefirst step to solidifying your employmentduring unstable times, Cowley said. Askyourself whether you are below average,average or above average, he suggested.Most people feel they are above average.The reality is, however, that most peopleare average, meaning you get to work ontime, complete assignments, do what isexpected and do it well, he said. Strivingto be above average, going above andbeyond the call of duty, will place youabove your peers.

“Ask what makes you special. If youwant to grow, you have got to be special,”Cowley said. “That is the key topromotion.That is the key to your future.”

Cowley offered several suggestionson how to become an above averageemployee: continue your education,volunteer for assignments, joinprofessional organizations or becomea teacher.

Put some effort into increasing yourknowledge about your profession,Cowley said. He suggested takingcourses, attending training seminars andeducational conferences and signing upfor Webinars.Read books and magazinesrelative to your industry, he added.

“There is a bunch out there. Thereis a bunch you can learn,” Cowley said.“Pursue higher education. It will giveyou information and skills to learn andto grow.”

Offer to do something outside ofyour normal assignments and dutieswithout being asked, Cowley suggested.Help with meetings. Volunteer to speakat conferences. Do something thatmakes you uncomfortable, he said.

“Your boss will be surprised andimpressed,” he said. “He will know hecan depend on you.”

There are hundreds of professional

organizations available for property

managers to join. Find one that is right

for you, Cowley said. Choose one that

allows you to network with peers in your

profession who will understand your

world. Networking allows you to gain

knowledge and develop new ideas. It can

also open up new job opportunities.

Teaching courses or seminars on

property management is the best way to

learn more about your profession, he

said. You learn more as a teacher than

you do as a student.

“Be a teacher of your profession, not

a student. Be a player, not a pretender.

Be a leader, not a follower,”Cowley said.

“Teach a class in your facility or

maintenance organization to share your

knowledge. Assist those entering the

profession by becoming a mentor.”

Distinguish yourself from your peers

by always looking toward the future and

investing in your career, he said.

“Step out of your comfort zone, take a

long look in the mirror,and begin planning

for your future,” Cowley said. “Mainte-

nance needs and expertise will always exist,

so if you have the credentials and the drive,

the profession will need you.”UF

W ith the constant techno-

logical advances in our

world, it’s not surprising

when we are told that our laptop

computers are simply too old to

upgrade or repair and that our

Smartphones are simply antiquated.

We are then forced to break into our

wallets and spend a few hundred or a

few thousand dollars on the new and

improved version. For the most part, we

all have come to accept this in our lives

and budget accordingly. But what

about other types of equipment that

utilize processors or electronics, are

they any different? And what about

technology that protects life and

property?

Fire alarm systems have been

around in some form for many years.

Like anything else that is electronic or

technology based, alarm systems

started out in a simple form with

simple functions and have evolved into

what can be a complicated system of

panels, devices and technical building

integration. Fire alarm systems utilize

circuit boards and processors, just like

your laptop and smart phones. And just

like those pieces of technology, they

can wear out or become antiquated to

the point that they are simply too

difficult or impossible to repair or even

find parts for.

Fire alarm systems are generally

designed to last 10 to 15 years. They

can last longer with proper

maintenance and/or limitation on

expansion, but maintenance is vital.

Once these systems get a certain age,

the technological advancements simply

outpace the demand for the old parts or

support. It is common for major

manufacturers to simply stop

supporting the old technology. In most

cases, the old technology cannot meet

the new code requirements or the spec

requirements of the engineer. (This is a

common practice for all types of

electronics

and software; try

getting a 15-year-old

laptop repaired.) It then can

become problematic to repair older

systems and even more difficult to

expand an existing fire alarm system.

Even if you’re lucky enough to scrape

enough of the older parts together,

sometimes the labor involved to piece

these devices together outweighs the

material savings.

If your building employs an older

fire system, and you’re considering an

expansion or remodel, you should hire

an inspection company to evaluate the

system and see if an upgrade is

required.

Try to make decisions based on

future needs. If you think you will have

frequent remodeling or changes, then

you will want to start any major fire

alarm upgrades early in the plan. Keep

in mind, those old devices such as horn

strobes and smoke detectors will

probably not be compatible with a

newer system. There are many listings

that fire alarm systems are required to

have, and that means you cannot always

mix and match devices and rarely can

you mix and match brands that are not

designed to work with each other.

Also, when deciding to install a new

system or renovate an existing system,

take time to research the manufacturer

of the product. There are many brands

but only a handful of major

manufacturers. If you make the

wrong decision, you could be left

with a brand with such strict

limited distribution that you end

up only having a single choice in

fire alarm contractors and service

providers in your area.

The most important decision you can

make is to ensure that your fire alarm

system is properly maintained and

inspected on at least an annual basis.

This is all in accordance with the code

requirements.There is not much point in

having a fire alarm system that does not

operate in the event of an emergency.

Well-maintained systems are the smart

choice when developing your building

maintenance and budget plan.Fire alarm

systems are your first line of defense in

an emergency situation. Prudent and

practical maintenance will not only

ensure proper operation but will help you

get the maximum life out of your

valuable investment.

Josh Elder is the

R/S/I manager for

Firetrol Protection

Systems, Inc.

He can be reached at

801.485.6900. UF


Technological Changes in Fire Alarm SystemsRequire UpgradesBy Josh Elder

fire alarm systems


As I am writing this article, I can

already hear a few of you ownerand management types asking

yourself, “Why do I need to know aboutconstruction defects? Isn’t that someoneelse’s responsibility?” Or perhaps, “Thatsure does not effect me!”Neither responsecould be further from the truth. Thecorrect response should be, “What is aconstruction defect, and how does thisaffect the building I own and/or manage?”

Today, with the rising costs ofenergy, the need to conserve and beenvironmentally conscious, along withthe cost and benefit of any real propertyimprovement, it is paramount to havean understanding of constructiondefect elements and of applying themto your portfolio, as this providestremendous benefits and should be anintegral component of your operationsand risk management.

In reality, there are four elements ofconstruction defect avoidance: contracts,design defects, product defects andinstallation or labor defects. As there isnot space in this article to cover themeach in detail, nor to cover specificconcerns on individual properties, I willexplore each element briefly in this andin a subsequent article.

ContractsSome experts leave out the first

element of contracts simply because theysee it as another dimension to the overallprocess,which is not construction relatedand therefore not a defect. Throughoutmy career I have seen and experiencedmany cases where the element of thecontract would have completely avoidedthe end result of other defects anddeficiencies, had the contracts beenproperly thought through, prepared,executed and followed.

Using construction terminology orsymbolism, the contract is the keystoneor foundation for all the other elements.It should represent the entire agreementbetween the parties, outlining suchthings as the standard for any work being

proposed, the payment for those servicesand materials and a scope of work foreach and every aspect of the work to becompleted. It also should include theguidelines for completion, time lines ofthe proposed work, work conditions andpayment provisions, as well as anypenalties for non-completion or timedelays affecting the contract.

Recently, I was engaged in the resolveof a conflict due to inadequate contractdocuments. Although the issues weremany and complex, the root of each coreissue pointed to the original contract,which lacked clear and specificperformance details as well as adequatelanguage detailing which party was to dowhat and when it had to be performed orcompleted. In essence, the parties failedto clearly state the objectives andoutcomes sought and were not on thesame page. They were going downcompletely different paths, neither ofwhich would appease both sides to theagreement. Work was not completed ascontemplated, deadlines andopportunities were missed and eachparty blamed the other for the failure.

I am continually amazed by thenumber of projects I encounter, whichhave no written contract. Many others,such as the example I have given above,have weak or non-existent performanceelements with no clear understanding asto who will do what. This is a recipe forproblems down the road.

It is to your benefit to engage yourlegal council early in the process to makecertain you are covering the necessaryelements in any contract prior toexecuting it. Dollars spent now will yieldsavings in the future.

DesignDesign represents the construction

drawings and plan specifications whichdetail the proposed work andimprovements. It is just as important inremodeling and mechanical upgrades asit is for new construction. The designprofessional preparing the documents

must be familiar with the project andmust make certain the specifications andplan details can be built according to anymanufacturers specifications andperformance guidelines.

This is often missed or glossed overby some design professionals. Somepractitioners state that this responsibilityfalls to the team or company who isdoing the actual work; nothing,however, is further from the truth.Design guidelines and documents mustinclude the details and the specificationsnecessary to clearly outline both theintent and the application particular tothe environment of the project.Engaging a design professional andrequiring a complete set of constructiondocuments with sufficient detail is thesurest method to ensure problems andpotential defects are limited orpreempted.

Adhering to the first two elements,that of well-prepared contracts anddetailed design documents, greatlyreduces liability and exposure should anylegal action occur later.The other defectsof product and installation will becovered in my next article.

By applying these principals on eachand every project, from a new build totenant improvements or whole structuremechanical and other upgrades, thelongevity and durability of the structureincreases and the operating costs arelowered. This might well provide a greatcost benefit to you as the owner ormanager.

Mark T. Woolley is the founder andpresident of Buildtec Solutions, an industryconsultant, specializing in constructionrelated issues, including defect avoidance.Mark represents owners, contractors andinsurance firms as well as their legaladvocates in resolving defect issues andclaims. He can be reached [email protected] or801.550.9996. UF

contracts

The Anatomy of Construction DefectsWell-prepared contracts and detailed design documents reduce liabilityBy Mark T. Woolley


Cash is king when it comes to

valuing a property manage-ment company, according to

Don Drysdale, managing member ofDrysdale Valuation PLLC.

“A company can have all kinds ofearnings, their income statement canlook good, but they can still be cashpoor, even if their profit and lossstatements look good,” Drysdale said.

The value of a company depends onthe cash flow as well as the risk associatedwith the business, Drysdale said.Valuation companies will carefullyconsider a company’s cash flow, looking atthe past and the present and assessing thefuture.The future state of the company isimportant in determining risk.

“We are careful in looking at cashflow because the past doesn’tnecessarily equal the future,” Drysdalesaid. “We make sure there aren’t issuesand items that would change thefuture cash flows.”

A company with an equal amount ofcash flow but less risk than anothercompany will have a higher overall value,Drysdale said.Unfortunately for propertymanagement companies, the risk is fairlyhigh either way due to the current state ofthe economy, or what Drysdale called

macro-environmental factors.“We can see that the economy, these

external factors, have had a huge impacton the value of companies in the realestate industry,” Drysdale said. “And wecan’t ignore that.”

Property management companies, aswell as any real estate-related business,have lost value because they are perceivedas more risky than they were five yearsago, Drysdale said. Fortunately, there areways for these companies to retain theirvalue and reduce their risk.

Valuations can be done for a numberof reasons, said Drysdale. But no matterwhat the reason, Drysdale says anycompany, even property managementcompanies, can benefit from avaluation. A valuation company canassess the value of a company andprovide options for property managersin terms of increasing value.

“If done properly, business valuationscan provide a wealth of information tothe business owner, things they may nothave even thought about,”Drysdale said.“We can help business owners increasethe value of their property. We can comein and assess the business and providethe business owner with a whole host ofways and manners that they can improve

their business — make it more valuable.”The owner of a property manage-

ment company can trim the costs oftheir operations and increase efficiency,Drysdale said. An owner can be moreselective in their tenants, leasing tobusinesses that show more long-termhealth and provide adequate cash flow.Consider paying bills on time insteadof early, suggested Drysdale. Inaddition, owners always have theoptions of increasing prices and cuttingcosts, he added.

“There are other things that can bedone,”Drysdale said.“Sometimes it takessome creativity to look at those things.”

Valuation companies that have abusiness valuation credential andmembers who are knowledgeable as wellas specialized will be more beneficial ingiving direction to property managerswho wish to increase the value of theircompany, Drysdale said.

“Valuing a business is not a science,”Drysdale said. “You can’t just run someformulas and calculations and say, hereis the value.There is a level of art that isnecessary. In reality it is a craft, muchlike a surgeon. You need the technicalknowledge as well as the skill.” UF

Value of a Property Management CompanyDependent Upon Cash Flow, RiskBy Kelly Lux

Commercial buildings

account for 19 percent of

energy consumed in the

United States, according to

the American Council for an Energy

Efficient Economy (ACEEE).

Although most of the energy used by

commercial buildings goes toward space

conditioning and lighting, installing

energy-efficient windows in new

construction or retrofits can help reduce

energy use and costs.

An opening in your commercial

building’s envelope (its outer shell) is

called fenestration, a term that

includes windows, skylights and doors.

The amount of energy lost through

windows can be significant. According

to ENERGY STAR, it is estimated

that nearly 30 percent of a commercial

building’s energy dollars are simply

going “out of the window.” Since there

are usually numerous windows in most

buildings, they represent a large source

of unwanted heating and cooling loss.

Energy-efficient windows can

improve the overall comfort and

energy efficiency of a commercial

property and provide cost-saving

benefits for many years. Energy-

efficient windows have lower heat loss,

less air leakage and warmer window

surfaces that improve comfort and

minimize condensation. In addition,

they can provide increased light and

lower heating and cooling costs.

Two or three layers of glass and

invisible reflective coating provide

insulation and repel the sun’s heat

while stabilizing your building’s indoor

climate. Savings realized from

installing energy-efficient windows

can be significant if the window

replacement rectifies issues such as

long-term air leakage.

To find energy-efficient windows,

simply look for the ENERGY STAR

logo or look for efficient windows with

a U-value of 0.30 or lower. For

guidance, you can always check with

your local window provider.

Installing new, energy-efficient

windows will improve your building’s

energy performance and may improve

its appearance, functionality and

efficiency. In addition, various tax

credits and rebates are available for

installing energy-efficient windows.

Check with your local utility to see if

there are rebate programs available to

help you offset the cost of installing

energy-efficient windows and stop

throwing your money out the window.

For more information about energy

eff iciency, technical assistance and how to

take advantage of rebates for natural gas

equipment, contact Questar Gas

Company about their ThermWise

Business program at ThermWise.com or

800.323.5517. Additional resources and

incentives may be available for electric

equipment by visiting

rockymountainpower.net/utsave. UF


✔ Select windows with low U-values tomaximize energy benefits.

✔ Look for the National Fenestration RatingCouncil (NFRC) label; it means thewindow’s performance is certified.

✔ Select windows with air leakage ratingsof 0.3 cubic feet per minute or less.

✔ Remember that new windows must beinstalled correctly by a reputable,qualified installer to avoidair leaks around the frame.

Tips to choosingthe right type

of energy-efficientwindowfor your

commercialproperty:


Today’s buildings are designed

to maximize the productivity

of the people who work

inside. Modern building codes ensure

there is plenty of quality light,

adequate fresh air to keep workers alert

and healthy, and climate control

systems to keep the people efficiency

factor as high and productive as

possible.

Most buildings are equipped with

some sort of control system to tie all of

the pieces together and make the

building operate effectively. For the

most part, the control system does its

job silently in the background. Only in

the event of a problem do we tend to

turn our attention to the building

controls.

Control systems have many built-in

tools to help manage buildings better,

but many of these tools are seldom

used. Quite often these tools already

exist in the building’s control system.

We don’t even have to buy them. The

control system is programmable and

can be easily modified and customized

to suit management needs.

Equipment Utilization ReportsReporting capabilities of a building

control system are powerful. Monthly

utilization reports offer statistics from

the building that managers seldom see.

These reports can show the fraction of

equipment usage by month or year.

Equipment usage can be tracked

against baselines. Most control systems

have reporting capability included

with the software.These reports can be

customized to include daily run-times,

which allow for easy performance

comparisons between periods. Month-

to-month or year-to-year comparisons

are easy to create. Weekend, holiday

and other unoccupied period

performance can also be evaluated.

Sub-MeteringHave you ever invested in an

energy-saving strategy and wondered

what actual savings were realized?

Sub-meters installed inside the

building can answer these questions.

Control systems can provide real-time

data to show what portions of energy

consumption are currently allocated to

lighting, HVAC and other building

systems. Energy usage goals can be set

and the daily and hourly achievement

of these goals can be measured by a

variety of sub-metering techniques.

Sub-meters also define what fraction

of energy bills are used for lighting,

outside lighting, snow melt, HVAC,

manufacturing process and other

systems to help us identify over-usage

and building deficiencies. Sub-

metering is also frequently used to

track utility bills for accuracy.

Tenant or Department BillingWith run-time monitoring and

sub-metering systems in place, it can

be possible to evaluate which areas of a

building are using the most energy.

Energy budget dollars can be divided

and allocated to the responsible party.

This can create incentives for

departments to be more energy

conscious and budget minded. In

tenant leasing situations, profit centers

can be created by negotiating leases to

include tenant billing for after hours

usage of building systems. Monthly

billing reports can be generated by the

control system.

Energy DashboardAn energy dashboard is a window to

the control system that shows building

occupants the current performance of a

building. Energy goals are displayed

and real-time achievement of these

goals can be monitored. Typically, the

energy dashboard is located in a place

where all persons who do business there

are able to see it — a lobby or common

entry area are favorite places. In

addition, the energy dashboard can

describe energy features and other

characteristics of the building and show

graphically how each system is

functioning. If solar or wind energy is

generated on-site, the energy dashboard

can describe the process. LEED points

or Energy Star achievement levels can

also be displayed.

Building AlarmsAlarms are something building

control systems do well, but typically

the alarm information is not delivered

to the right person or in the right way.

Many times the control system

generates such a high number of

alarms that the alarm notification

system gets ignored. Alarms in a

building are only good if they are

customized to the building operator’s

needs.

Is it appropriate to send an alarm if

the CO2 level in a space rises above

1500 ppm? Does a valid alarm

condition occur when a space

temperature rises above 80 degrees?

Every building is different and its

operators respond in different ways.

Alarms need to be prioritized and can

easily be configured to be a more

effective tool. Today’s control systems

can now easily generate emails and text

messages to notify operators about

certain conditions. Energy alarms can

also be created to send a message when

a pump or air handler which is

supposed to shut down at night

continues to run for a 24-hour period.


Control Systems Maximize Efficiencyof Building OperationsBy D. Kevin Dyreng

SummaryControl systems in buildings are

powerful. Their capabilities are often

underutilized. Many of the tools they

have and, in most cases, that we already

own, can be used to our advantage. We

just have to know what the tools are

and how we can use them effectively.

Kevin Dyreng,

energy services

manager for Utah

Yamas Controls, has

been in the controls

industry for more

than 30 years. He is a

certif ied energy

manager and has served on the board of

the Utah Chapter of Energy Engineers.

He specializes in commissioning

buildings and energy management

through controls optimization. UF


building controls



MissionBOMA Utah is the standard of excellence,providing best in class industry leading practices,strong education, local advocacy and friendlynetworking unity.

Contact InfoTo learn more about BOMA Utah or to join,please visit our website atwww.BOMAUtah.orgor contact us [email protected],801-710-2590PO Box 13697Ogden, Utah 84412

Inside2010 Sponsors

The Outstanding Buildingof the Year Information

Emergency Preparedness

BOMA Utah Information,Officers, Board of Directors

and Committee Chairs

Calendar of Events

EER Information

Thursday, January 13, 2011Monthly LuncheonMark Bouchard, senior managing director,CB Richard Ellis, Salt Lake City

January 23-26, 2011BOMA International Winter Business ConferenceLake Buena Vista, Fla. (Walt Disney World)

February 10, 2011Monthly LuncheonThe Outstanding Building of the Year (TOBY) Awards

Calendar


The Outstanding Building of the Year Award: It Could Be Yours! Be a member of Utah’s real estate elite by entering your property in The Outstanding Building of the Year (TOBY) competition.Be a local, regional and international winner and get recognized!

Who Should EnterBuilding owners and managers who want to showcase their property andmanagement teams should enter their building(s) into this year’s competition.Go to www.BOMA.org to view BOMA International’s TOBY requirements andfor general information about categories, eligibility, portfolio specifications,submissions registration information and content and judging and buildinginspection forms.To facilitate owners and managers in preparing their properties for thecompetition this year, BOMA has implemented a number of significant changesto the judging process.The TOBY committee and BOMA Utah strongly encourage your team to preparea portfolio in conjunction with preparing your property. All entries must completethe local application form (available now) and register their building online withBOMA International.Guidance provided by the TOBY Committee and BOMA has proven to beextremely valuable to our Utah entrants and will continue in 2010/11. To assistyou in your winning efforts, we will be happy to work with you and your buildingteam throughout the process.Become part of the elite group of owners and managers in Utahwho have won the TOBY, proving their dedicationand commitment to commercial realestate and having the vision tocontinue to improve the standards towhich we all strive to achieve.

About TOBY AwardsThe prestigious TOBY Award is bestowed asthe highest mark of excellence foroutstanding building management and is themost all-inclusive program in the commercialreal estate industry. All facets of a building’soperations are thoroughly evaluated duringthe judging process by a panel comprised ofindustry professionals.The evaluation criteria for the TOBY Awardsinclude tenant relations programs,community involvement, emergencyevacuation procedures and continuingeducation for building personnel. Winners ofthe local competition advance to regionaland international competitions.

QuestionsIf you have questions about the TOBYs,contact Renee Schmid, TOBY chair,at [email protected] 801.506.5005or TOBY Vice Chair Dave Shepardat [email protected] 801.237.8955.

The Outstanding Building of theYear (TOBY) Sponsors

Visionary Sponsor - Varsity Contractors, Inc.Silver Sponsor - ISS Facility Services, Inc.

Bronze SponsorsCB Richard EllisRBM Services, Inc.Securitas Security Services USAUtah Disaster Kleenup

Supporting SponsorsOtis ElevatorQwest CommunicationsRoderick EnterprisesUtah Facilities

April Luncheon SponsorAmerican Shredding, Inc.

2010 BOMA/Securitas Golf Tournament

Tournament Sponsor - Securitas SecurityServices USA

Breakfast Sponsor - Varsity Contractors, Inc.Welcome Gift Sponsor - Spectra FlooringLunch Sponsor - ComcastRaffle Sponsor - RBM Services, Inc.Golf Cart Sponsor - Commercial Service SolutionsGold Sponsor - G4S Secure SolutionsSilver Sponsor - Centimark CorporationDrink Sponsor - The Lawn ButlerPutting Green - Utah Disaster Kleenup

Contest Hole Sponsors5Star Family of ServicesAmerican Shredding, Inc.Big-D ConstructionMechanical Service & SystemsSchindler Elevator Corporation

Hole SponsorsAmerican Building MaintenanceBELFOR Property RestorationBell Janitorial Supply, Inc.Carrier BSS/Otis Elevator Co.CB Richard EllisCCI MechanicalDaw Construction GroupDouble Take Commercial

Carpet CleaningDynamond Building MaintenanceJacketta SweepingRiverPark Management

& DevelopmentRoto Aire Filter Sales & ServicesSecuritas Security Services USAThyssenKrupp ElevatorWestern Waterproofing

Company, Inc.

Generosity of Sponsors have made 2010 a Great Year for BOMA UtahAs 2010 draws to an end, we must thank and recognize our sponsors for their continued support throughout the year. It isbecause of this generosity BOMA Utah is able to continue its growth and provide quality programs and events.

2011 TOBY Sponsors to date:


More reasons why BOMA Utah is the Standard of ExcellenceThis has been a whirlwind year for BOMA Utah. Membership renewal rate was 90 percent this year. We held our TOBYAwards in February with six local buildings competing. March was the tour of the 222 S. Main Street building and ourannual vendor only brunch. April was a member social with a scavenger hunt and lots of fun times. In May, our VendorExpo consisted of more vendors and booths than ever before. In August, we held the 2010 BOMA/Securitas GolfTournament. It was the biggest and best in BOMA Utah’s history, raising $5,200 for the Road Home and our first BOMAHelping Hands work day. Partnering with the Road Home to donate upwards of $47,000 in materials and volunteer timewas a definite highlight of the year.

We can’t forget the unsung heroes: our members serving on various boards and committees with BOMA International;the Pacific Southwest Region and Utah’s Private Sector Homeland Security Steering Committee and Council. We’veexpanded our online presence to Facebook, LinkedIn and Twitter. We’ve worked hard to make BOMA Utah known in thereal estate community through the Utah Facilities Magazine, a quarterly publication soon to be bi-monthly.

Don’t forget our first medical office buildings seminar or the Kearns Building winning the Regional TOBY Award andadvancing to the international competition. We have a new website. And our leadership and committees put forthcountless hours to ensure BOMA Utah remains the “Standard of Excellence.”

With everything that BOMA has accomplished this year, it’s time to pass the torch on to new leadership. We are pleasedto announce the 2011 BOMA Utah officers, board of directors and committee chairs:

President: Jim Derrick, Miller Management CompanyPresident-Elect: Todd Mabey, Zions Securities CorporationVice President: Lorrie Ostlind, Hines GS Properties, Inc.Secretary/Treasurer: Casey Killian, Varsity ContractorsPast President: Dave Jones, City Creek Reserve, Inc.

Board of Directors:Scott S. Bennion, Commerce Real Estate SolutionsJon H. Carlson, Lincoln Harris CSG Gary L. Coker, CB Richard EllisEric S. Pauly, CentiMark CorporationDavid D. Penrod, Zions Bancorporation - Zions BankRussell Shinrock, Securitas Security Services USA, Inc.

Committee Chairs:Community ServicesChair: Ali Williams, SimplexGrinnellVice Chair: Brett Parry, Harris Companies

Disaster Preparedness/Business ContinuityChair: Eric Fairbanks, Utah Disaster Kleenup

EducationChair: Rick Rice, Zions Securities Corporation

GolfChair: Jerry Pace, CCI MechanicalVice Chair: Terrell Sparks, RiverPark Management& Development

Local AdvocacyChair: Stephen West, Cottonwood Management ServicesVice Chair: Paul Porter, Bell Janitorial Supply, LC

Medical Office BuildingsChair: Jon H. Carlson, Lincoln Harris CSGVice Chair: Chris R. Day, The Boyer Company

MembershipChair: Eric S. Pauly, CentiMark Corporation

ProgramsChair: Casey Killian, Varsity Contractors

Public RelationsChair: Travis Barrington, Utah Facilities MagazineVice Chair: Kelly Lux, Utah Facilities Magazine

TOBY (The Outstanding Building of the Year)Chair: Renee Schmid, Roderick EnterprisesVice Chair: Dave Shepard, Qwest

Becoming involved in a committee is one of the best ways to enhance your BOMA experience. Committee participationprovides countless networking and leadership development opportunities. Participating on a committee is also arewarding way to gain a better understanding of the association.

To sign up for a committee or learn more about one, please contact the BOMA Utah office at 801.710.2590 or emailShelli at [email protected]. You may also visit our website for a complete listing of each committee.

36 I UTAH FACILITIES JANUARY 201136 I UTAH BUILDINGS SUMMER 2010

Connect with BOMA Utah – Join us on Facebook, Linkedin and Twitter

BOMA Utah leading the charge in Emergency Preparedness

Various agencies from across Salt Lake County know the importance of BOMA Utah and the critical role our members canplay during an emergency. The Salt Lake County Emergency Office Center (EOC), Salt Lake City Emergency Management andthe Utah Department of Public Safety, Homeland Security Division, along with BOMA Utah, have begun implementing apublic-private emergency preparedness notification plan and strategy for protecting occupants.

While it’s rational to assume that Salt Lake City and surrounding areas are not a key terrorist target, Utah is vulnerable to otherthreats, including severe snowstorms, tornadoes, dangerous floods, energy black-outs, fires and earthquakes. To betterprepare for such disasters, the Utah ShakeOut Earthquake Exercise is scheduled for April 2012. The Utah ShakeOut isdesigned to enhance the capabilities of Salt Lake County, local jurisdictions and Salt Lake Valley residents to effectively respondto and recover from a catastrophic earthquake occurring along the Wasatch Front.

BOMA Utah, along with city, state and federal agencies are creating a plan to boost communications and strategic thinkingin the midst of an emergency. In doing so, the state is at the forefront of creating an integrated disaster plan. The private-public cooperation has been undertaken to develop strategies for shelter, evacuation and early warning.

Our goal is to strengthen communication between our members who own properties and local emergency response officials. It isalso important that we know and communicate well with our neighbors, especially in coordinating emergency plans and procedures.

One communication capability that exists within the Salt Lake Valley is the Public Information Emergency Response (PIER)System. The PIER System is an all-in-one, web-based solution for crisis communications management, mass notification, publicand media relations and business continuity. Our members arestrongly encouraged to register on PIER, under the BOMA Utahgroup, at www.utahemergencyinfo.com/go/mailinglist/2515/

Currently, BOMA Utah has representatives that sit on the PrivateSector Homeland Security Coordinating Council as well as the Lt.Governor’s Private Sector Homeland Security SteeringCommittee. We have been asked to join the newly created SaltLake Valley Steering Committee and recently participated in theSalt Lake Valley Venue Evacuation workshop and FEMA RegionVIII ShakeOut tabletop exercise.

As part of our continued effort, we will begin to update our onlinemember database and will ask every member to provide detailedinformation regarding buildings owned/managed by members,key tenants, 365-24/7 contact information for every facility,vendor services provided, key personnel, etc. This is critical andnecessary information from our members if we are to succeed.

Property/facility managers, if you are not currently a member ofBOMA, you will be missing out on some of the most importantplanning and disaster preparedness programs in the industry, asno other real estate organization in the state of Utah has beenasked to participate on any level.

Think it through for a moment. Your building is being evacuated.Your neighbor’s building is evacuating. Are youroccupants/tenants all congregating to the same area? How areyou accounting for your employees and tenants? Do you have amemorandum of understanding with various buildings? How willyou be notified of an after-hours emergency? Do you have a 72-hour kit at your office and what does it consist of? Do you shelter-in-place or evacuate? And who makes that call?

It’s not if a disaster will occur and impact businesses, it’s a matterof when. Fire drills and other preparedness drills seeminconsequential when deadlines are pending. However, buildinga dynamic communications plan, knowing where to go and whatto do, is a serious matter in the event of an emergency andBOMA Utah will be your source for that information.

Measuring building operating performance has neverbeen easier. The online EER allows you to track incomeand expense performance of assets in hundreds ofmarkets with just a few quick mouse clicks. Customsearches allow you to examine specific types of assets,such as MOBs, corporate facilities, all electric buildingsand building characteristics, including building age,height and tenant types.

Share Data. Improve Performance. AchieveExcellence. That’s what EER is all about.


The cost of construction materials

in Utah have stabilized while

contractors in other states

nationwide are feeling the squeeze of

rising prices for key construction

materials.

Nationally, prices for materials used

in construction jumped by 0.6 percent

in October and 4.8 percent over the

past 12 months, while the price for

finished buildings remained flat,

according to an analysis of the October

Producer Price Index figures released

by the Associated General Contractors

of America. So not only is the

construction industry facing declining

demands and dramatic layoffs, but now

the industry must pay more for key

materials while charging the same for

finished products, according to the

AGC of Utah. These factors will likely

cause many builders to struggle like

they have never struggled before, which

could add to the already staggering

17.3 percent unemployment rate for

the sector nationally.

In Utah, the cost of most

construction materials have flat-lined,

said Glenn Beckstead, chief cost

estimator for MHTN Architects.

Labor is flat.The cost of construction is

flat. Oil has stabilized. Only copper and

steel have gone up slightly, he said.

Scott Parson, CEO of Staker Parson,

said the cost of concrete and asphalt has

declined slightly as the demand for

these materials has dropped, creating an

over-supply of the products.

“There’s intense competition for

available construction materials because

residential, commercial and trans-

portation construction opportunities

are down,” Parson said. “And when that

happens, pricing will decline.”

Concrete prices remained

unchanged nationally from the previous

month and are down from a year ago.

Prices for asphalt paving mixtures and

blocks dropped 0.5 percent in October

but were still 4.8 percent higher than

last year. Across the nation, lumber and

plywood prices declined 0.9 percent

since September but rose 6.7 percent

during the past 12 months.

The price of diesel fuel is up 7.2

percent since September and 20

percent since October 2009. Steel mill

products have increased in price by 1.4

percent since September and 12

percent over the past 12 months.

Nationally, contractors will likely

feel the squeeze of rising materials

prices, the AGC predicted. In Utah,

Parson suggested that those who are

looking to build and who have the

resources should build now while the

cost of materials is low.

Now is an excellent time to build a

project since building owners will get a

lot for their money. Beckstead would

agree, saying that most projects are

coming in with 25 to 35 percent lower

costs than two years ago.

“If you have the money to build

right now, it is a great market,”

Beckstead said.

Construction costs in Utah will

likely remain flat through 2011 but

could increase as the rest of the country

sees rising prices, Beckstead predicted.

Optimists are forecasting a 1 to 3

percent inflation rate, which would

mean things are looking better

economically, he said.

“We hope it happens. But it won’t be

until March before we have a better

understanding of what the trends are,”

Beckstead said.

Rich Thorn is the

president and CEO of

Associated General

Contractors of Utah, a

position he has held since

1982. Rich can be

reached at 801.363.2753. The AGC of

Utah is the state’s oldest and largest non-

residential construction trade association

representing more than 500 members

who perform the majority of all non-

residential construction in the state. UF


When the H1N1 flu virus

started to spread across theUnited States, Zions Bank

already had the policies and proceduresin place to minimize the impact of apotential influenza pandemic,according to Brian Garrett, senior vicepresident and director of businesscontinuity for Zions Bank. Handsanitizer was placed throughout theapproximately 150 branches of ZionsBank. Employees were reminded ofgood health practices, to wash theirhands with soap and water, to covertheir mouths when sneezing orcoughing and to stay at home if theywere sick. Zions made sure tocommunicate with its employeesregarding the outbreak, informingthem of any special precautions thatneeded to be taken.

A pandemic such as H1N1 (Swineflu) could result in lost business revenueand high employee absentee rates,according to “Pandemic Influenza: AreYou Prepared,” a resource availablethrough BOMA International. Multi-tenant buildings are especiallysusceptible to influenza outbreaks,making it imperative for building

owners to implement containmentmeasures that will limit the spread ofthe disease.

Communicating with building

tenants and employees is essential in

preparing for and preventing a flu

outbreak in a commercial building, said

Theron Jeppson, a health educator for

communicable diseases at the Utah

Department of Health. Building owners

should take the initiative to share

educational information on preventing

the spread of germs, posting reminders

in common areas, break rooms and

bathrooms. Much like the procedure

followed at Zions Bank, hand sanitizer

stations should be placed in several

locations throughout a building,

especially near doors and bathrooms.

“People don’t have to do a whole lot

to keep from getting sick and to stop

the spread of germs,” Jeppson said.

“Many things can be done behind the

scenes by building owners to help

prevent the spread of disease.”

Maintaining a clean building isessential to preventing an outbreak of avirus, Jeppson said. Janitorial staffshould focus on keeping hand railings,

door knobs, desks and countertopssanitized. Employers should createpolicies encouraging employees to stay

Building Owners take Precautionsto Prepare for Influenza PandemicBy Kelly Lux

Preparing fora Pandemic

• Develop a plan with buildingmanagement before a pandemicoccurs.

• Appoint a representative tocoordinate the plan with buildingmanagement.

• Make sure plans and policies areunderstood by management,tenants and employees.

• Keep an open line ofcommunication betweenmanagement, tenants andemployees before and during apandemic.

• Increase health measures inyour building by coordinatingwith the janitorial staff/vendor.

• Encourage tenants andemployees to practice sanitarypersonal hygiene.

at home if they are sick, he said.Building owners should develop a planfor safe and healthy business practicesin case an outbreak does occur.

Working with human resources,facility management, security andexecutive management, Garrett saidZions Bank was able to develop abusiness continuity and emergencypreparedness plan addressing influenzapandemics. The bank identifiedemployees who could work fromhome, offices that could operate on asplit shift to reduce the number ofpeople working in high density workspaces and other points of failure in theworkplace. A plan was also put in placeto minimize the number of customerswho enter the building during times ofoutbreaks by utilizing the drive-thrufor most of the bank’s business.

Additionally, a system was createdto monitor the sick time being used byemployees within each Zions branch.This way, Garrett said, measures couldbe taken in the affected buildings tostop the spread of the virus within theindividual branches as well as theoverall company.

Communication will be the key toensuring policies and procedures arefollowed during a pandemic, Garrettsaid. Zions has memos andnotifications which can be easilymodified and sent out to employees

and customers as needed. Garrett alsokeeps a comprehensive list of contactinformation for employees, suppliersand vendors in his office and his car foreasy accessibility during an emergency.

“Getting ahold of people is goingto be the way you are going to be ableto get things done,” Garrett said.“You can live or die by yourcommunications.” UF


public health

W e’ve all seen them hanging

from the side of a buildingand thought to ourselves,

“Man, I would never do that. Thoseguys must be crazy.”

Well, to be honest, some of themare, but most are not. The fact is, theprofession of washing windows onhigh rise buildings is actually very safewhen all of the standards andregulations are followed properly. Ofcourse, it still takes a tremendousamount of courage to climb over theside of a building and into aboatswain’s chair or to power that stagedown when there is nothing separatingyou from the ground other than a thinaluminum floor.

So how do these folks do it? Whatmakes them secure enough to make acognitive decision to walk off of aperfectly good rooftop and into thinair, where, for the next hour or so, theywill be suspended from lines as thin asyour thumb, all the while cleaning theglass of your office or condo building?

The answer is, or should be, safety.Safety is the most important factor

when any suspended maintenancework is being performed. Who isresponsible for this safety, and whatdoes working safely really mean?

The first question is being asked allacross the United States every day withrespect to window cleaning,particularly window cleaning donefrom a boatswain’s chair. Up until now,there was no clear definitive rule withrespect to boatswain’s chair work underFederal OSHA. Federal OSHA doesaddress cleaning windows using a

powered platform. While some ofthose rules can be applied to chairwork, there are so many areas ofuncertainty that Federal OSHA hasmade proposed changes to Sub Part D– Walking Working Surfaces wherethey include some rules with respect tothis common form of window cleaning.

The new document and the existingANSI Standards clarify that it is theresponsibility of the building owner toprovide anchorages for these windowcleaning professionals to attach their


Building Owners Responsible for Safetyof Window CleanersBy Brent LaPorte and Kynan Wynne

suspension and safety lines. This isimportant when the workers areutilizing boatswain’s chairs becausemore often than not, they are riggingdirectly to the rooftop anchors for boththe suspension and safety lines. Therules and regulations both state thatthe suspension (the line supporting theworker) and safety lines (used in theevent the suspension line fails) shouldbe attached to separate andindependent anchorages.

The standard form of anchorage isa rooftop anchor attached to thebuilding’s structure that has beenideally installed during construction.We do know, however, that mostbuilding’s do not have thesepermanent rooftop anchors. Thus, thewindow washing professionals arerequired to make do with whatstructure is available on the rooftop.We cannot expect a window washingcontractor to obtain permission to drillthrough the roofing and down into thestructure and attach a rooftop anchoras, quite simply, they are not qualifiedto perform this type of work.Therefore, it is incumbent upon theowner of the building to ensurerooftop anchors are available forworkers to attach to prior tocommencing their work.

The next burning question,assuming we have rooftop anchors orsome other form of structure, is howare these workers to attach safely?

Many buildings, maybe even yours,have some form of window washingsystem installed. Unfortunately, moreoften than not, they are not incompliance with today’s rigidstandards and proposed regulations.We often see derelict davit bases at anunprotected roof edge. These davitbases were originally designed to beused for suspended stages. However, asyou know, most window cleaningoperations are performed using aboatswain’s chair. So, how do thewindow washers work safely if thereare no independent rooftop anchorsavailable? The workers do what theymust to ensure they can complete thework as safely as possible. This doesnot mean they complete the work in

compliance with all the codes andstandards. It means they do what theymust, which, at times, really is crazy.They will attach to vent stacks, stairrailings or cinder blocks piled on theroof, none of which are designed totake the applied loads of a fall.

Further, if these davit bases areexisting at the roof edge, often thewindow washers will attach a tag linebetween the davit bases and attachboth the suspension and safety lines tothis line. The problem is the tag linehas not been engineered, and in theevent of failure of this line, bothsuspension and safety lines areattached to the same “anchorage.” Thefailure of one line leads to acatastrophic failure of this un-engineered system, resulting in seriousinjury or death of the worker.

Now, realizing this is a lot ofinformation to take in, I expect youhave a lot of questions about the codesand standards. What is required? How

do I know? Etc. The test is simple.Take a walk out onto your rooftop andask yourself, “If I had to, would I attachmy entire life to that anchorage?” Ifthere is any doubt in your mind at all,contact a rooftop anchor designprofessional and have your buildingassessed for compliance and safety.

Once you have the buildingassessed and certified and whensomeone asks you if those windowcleaners are crazy, you can confidentlyanswer, “Not as crazy as you think.”

Kynan Wynne has 22 years in thewindow cleaning industry, seven yearsin the fall protection industry, and is aformer president of the InternationalWindow Cleaning Association. Wynne iscurrently the vice president of RooftopAnchor, Inc. Brent LaPorte has 21 yearsof experience in the fall protectionindustry and is currently RooftopAnchor’s national sales consultant. Theycan be reached at 801.839.2900. UF


fall protection

These days, the word cubicle has

become synonymous with prisoncell. You’ve seen the photos and

movies that depict a large office spacewith tall gray panels as far as the eye cansee. We can all agree that no one wantsto work in a space like that.Furthermore, with distractions such asFacebook, YouTube and the 2 p.m.cubicle nap, excessive privacy isn’talways a good thing.

Well then,what are the alternatives? Ifyou’re looking for a new office space orrevamping an existing one, there are a lotof creative ways to make the most of yoursquare footage while maintaining privacy.

Don’t Be Such a SquareFirst, get rid of the idea of a 6x6

cubicle with a little doorway. When youbegin to reconfigure your open areas,consider keeping some of that openness.Today’s panel systems can make use offiling and other storage units as divisionsbetween workstations. Instead of panelwalls that completely surround theworker’s space, use a combination ofshort panels and other dividers to givedivision of space and only as muchprivacy as is needed. Adjacentworkstations can be separated by a shortpanel or translucent screen. You’d besurprised. Employees in these open

workstations adapt to theirsurroundings, lowering their voicesaccordingly. For workers that spend a lotof time on the phone, higher panel wallscan be used sparingly while maintainingthe benefits of a spacious floor plan.

In addition to rethinking the overallfootprint of a workstation, there arenewer schools of thought concerning theactual desk or work surface. The L-shaped wraparound work surface wasdesigned for a bulky CRT monitor inthe corner, but today’s flatscreenmonitors require less space. Often, asingle rectangular or wedge-shaped worksurface is all that is necessary, leaving


Think Outside the Cube in an Office RedesignBy Sean Murphy

more space for storage that can keepbooks and files off of the desk.There area lot of options here. A reputable officefurniture dealer can show you the ropes.

Less is MoreToo often, what’s new is also what’s

expensive. In the case of rethinking thecubicle, this is not necessarily the case.Fewer bulky walls and less raw materialare better for your wallet and better forthe environment. New quality officefurnishings are usually at least 80percent recyclable, and use fewerresources to manufacture. You canactually fit more people in your spacewhile reaching “green” goals and savingmuch-needed capital.

There are other savings, too. Lowerpanel walls allow for more natural lightto find its way into the inner reaches ofyour space, reducing the need forexcessive overhead lighting. Someworkstation dividers leave open spaceunder the desk, improving air circulationand cutting material cost. You can alsoget rid of those under-desk filingpedestals and opt for a single storagetower with several types of filing andshelf space. Another benefit of today’spanel systems is that storage space canbe added later on an as-needed basis.

Spaces that Work Twice as HardWalls are coming down. More and

more companies are opting for moreopen workstations in lieu of largeenclosed offices. One of the benefits ofa large enclosed office is that the

employee can collaborate privately with

coworkers, clients and vendors. That

dialogue is essential to making your

office work, so small informal meeting

places are a necessity in your new open

space plan. Instead of having three-

person meetings in your boardroom,

create a few small quiet spaces in your

office where employees can sit down

for 15-minute collaborations. Instead

of a small conference room with high-

back leather chairs, consider breaking

up the cubicle farm with a café table

and stools or a small cluster of firm-

sitting lounge chairs. These spaces are

multifunctional and encourage idea

sharing. What’s more, a short walk to

an impromptu meeting area will lessen

fatigue and improve focus when

employees return to their desk.

You’re only as strong as your weakest

link. Don’t let an uninspired office

interior hinder your potential. A

contemporary office environment will

attract higher-caliber tenants. With a

little searching you can find someone to

buy your used cubicles (some

companies buy used panels to refurbish

and resell). You can also sell or donate

your old furniture to a start-up

company or charity. So tear down those

walls and create an efficient space for

your tenants to flourish!

Sean Murphy is a space planner with

ROSI Office Furniture in Salt Lake City.

He can be reached at [email protected]. UF


space planning

Communication Keyto Juggling People,Cleaning PrioritiesDuring the HolidaysBy Jill Rasmussen

F rom pre-planned detail cleaning to unexpected

disasters, property managers can struggle to find time

to enjoy the holiday season. Tenant staffing levels

become low during the year-end holiday break, making it the

perfect time to perform detail cleaning without interrupting

business.

Prioritizing RequestsHigh traffic and busy schedules during the holiday season

make it difficult for property managers to address complaints

and foresee issues that might arise. Property managers often

have to juggle different personalities among tenants and

cleaning priorities in their buildings. Managing a building is

one thing, but it takes an entirely different skill set to manage

people.

Michael Jordan, facility manager for Marriott

International, manages several buildings with more than 400

employees. At year-end, he receives many cleaning requests

concurrently, making it difficult to please everyone. Jordan

said he has learned to prioritize requests and communicate

his responsibilities with Marriott employees, helping them to

understand his time frame in processing their demands.

“I try to resolve a problem with conversation,” Jordan said.

Property managers who are faced with conflicting

priorities and too many cleaning requests at one time can

explain that they understand the problem, have a solution and

can commit to completing the project within a reasonable

time frame.

“I’ve learned to treat people as my customer,” Jordan said.

“Everyone has a vested interest in different things. I have to

make them feel important or give them a good reason why

their request is not important at that particular time.”


Detail Cleaning PlanImplementing a detail cleaning

plan to prevent complaints is a great

start to a new year. Working with a

well-managed janitorial company can

help ease many year-end burdens.

Building a good relationship with your

janitorial company allows you, as a

property manager, to rely on the

janitorial company to manage detail

cleaning projects.

“It’s nice to know that I can rely on

our janitorial company to carry out the

terms of the contract,” Jordan said. “It’s

important to check references to make

sure the vendor you hire is going to do

what they say.”

Vendors that don’t follow through

with the terms of the contract don’t last

long.The dirt speaks for itself. If people

see dust, they assume they are breathing

dirt in the air and working in a

unhealthy building. Employees tend to

notice visible dust on lights, air ducts,

base boards and in their work areas.

“It’s all about perception,”Jordan said.

“If employees see a vendor performing

detail cleaning, then they feel like the

company is investing in them.”

Detail cleaning can boost morale,

increase appreciation and decrease

turnover if it is witnessed by employees,

Jordan said. When a business takes

action to improve the work

environment, people feel valued. People

feel more comfortable when they know

their work environment is clean and

sanitized, especially during flu season.

Marriott focuses on sanitizing

restrooms and eating areas to help

employees feel comfortable. Detail

cleaning is scheduled twice a year to

clean air ducts and glass, for high

dusting and vacuuming, and for

complete sanitizing of restrooms and

eating areas.

Cleanliness is best communicated to

tenants and employees through action.

Temporarily relocating people into

different work areas for large carpet

cleaning projects communicates that the

property manager cares about its tenants

and their workspace. If a project is

scheduled after-hours or on a weekend,

it’s important to notify tenants or

employees before the cleaning.

Vendor Communication Open communication with vendors

is essential for a good working relation-

ship. Building a good relationship with

vendors can decrease the bottom line

because “they are more willing to do

things they would not normally do,”

Jordan said. For example, Marriott

worked directly with its vendor to

implement a recycling program at no

extra cost.

Communicate with your vendors so

they are aware of their responsibilities.

Vendors should know you expect them

to plan ahead, foresee problems and

communicate daily.

“Our vendors inform me when

there are security issues like doors that

won’t lock or strange people lurking in

the parking lot,” Jordan said. “They

have even helped us prevent disasters

when they told us they smelled smoke

and found a water leak.”

When it comes to juggling people

and priorities, property managers can

benefit from taking time to find a

sharp janitorial company to rely on.

Jill Rasmussen and

her husband, Roger

Rasmussen, are

co-owners of All Pro

Cleaning, a janitorial

building services,

water damage and

restoration services, carpet and

upholstery cleaning, tile and grout

cleaning and air duct cleaning located in

Sandy, Utah. Contact Jill at

801.330.8585. UF


janitorial

Every year property managers,

property owners and

businesses with parking lots or

sidewalks have to go through an

exercise most dread: soliciting pricing

from snow contractors. This exercise

often feels like just that — an exercise.

Most purchasers of snow and ice

management services believe anyone

can do that kind of work. It’s easy. And

besides, aren’t these fellows just

individuals who can’t find real jobs?

Being in the snow and ice

management business requires a

substantial capital investment in

equipment, materials and labor. If the

company you hire does all their work

with their own forces and equipment, it

is likely they are not a large entity and

are limited in their experience. It is not

good business for a snow contractor to

own all the iron associated with

providing exemplary service. Leasing

equipment is the norm all over North

America as opposed to investing capital

in equipment which may, or may not,

be utilized year-round.

Good companies understand their

costs and are focused on working hard

to lower their cost, especially in light of

the current economic times. And yet,

some purchasers of this necessary

service still try to insist the contractor

own all the equipment.This pushes the

contractor’s costs higher and higher,

resulting in increased costs to the

property manager.

Another area of concern for snow

and ice management is insurance

coverage. Too often contractors are not

savvy in this important area, resulting

in under-insured or inadequately

insured businesses. Yes, every purchaser

of this service demands a certificate of

insurance with some specific limits of

coverage. And, unfortunately, some

contractors supply certificates that have

been doctored for purposes of saving

money. Never allow the contractor to

supply you with this important

document. Always insist the certificate


Well-Run Snow Management ContractorsMake Better PartnersBy John Allin

come from the insurance broker or

agent. Even then, one is not out of line

by making a quick phone call to the

contractor’s agent to confirm all the

data is correct and accurate.

Contractors who supply snow and

ice management services should be

versed in the technology available to

them to properly protect the

property owners and managers they

service. In today’s advanced

technological age, snow contractors

can allow their customers access to

real-time data to ascertain when

their property was serviced, what

services were provided, and (in some

cases) what charges have been

incurred performing these services.

Make sure your contractor knows

the physiology of how salt works. In

fact, 500 pounds of rock salt per acre is

adequate. Studies show as little as 100

pounds per acre will do the job. It is

the rare snow contractor who invests

more than $65,000 in a single piece of

equipment that can distribute rock salt

at low distribution rates. Snow

contractors normally utilize slide-in or

under-tailgate spreaders, which can be

calibrated not lower than 300 pounds

per acre. Talk to prospective

contractors about their knowledge of

distribution rates, how salt works, how

long it takes to react when applied.

One important thing to note: If your

parking lot is still white the day after a

storm, it is likely due to over

application of rock salt, and is

definitely NOT because the contractor

was trying to make you happy.

There is a science to everything.The

same holds true with snow and ice

management contractors. A well-run

company making a viable profit makes

for a better partner in your overall risk

management. Let’s face it, if someone

slips and falls on your property, nobody

wins (except maybe the lawyers). And it

is incumbent upon the entity in charge

of the site to ensure that the site is safe.

Most property owners and managers

cannot correctly do the work

themselves. They want to pass the risk

on to the snow contractor. However,

realistic expectations are required so the

contractor can do the work, ensuring

those who visit your sites are safe.

John Allin is a full-time consultant for

Innovative Property Maintenance in

Utah. His former company, Snow

Management Group, did all of the snow

and ice management for the 2002 Winter

Olympic Games held in Salt Lake City.

He can be reached at 814.452.3919 or at

[email protected]. UF


snow and ice management

A s a building owner or property

manager, two primary busi-

ness goals are to maximize net

operating income and provide tenants

with a comfortable, well-functioning

building. In recent years, the U.S.

Green Building Council’s LEED for

Existing Buildings Operations &

Maintenance (LEED EBO&M)

rating system has been used

successfully on hundreds of buildings

to help meet these business goals.

LEED EBO&M provides building

owners, property managers and

operators with guidance on how to

incorporate green building operational

practices, offers standardized methods

to rate building performance and acts

as a third party evaluation platform to

recognize achievements. The rewards

for completing this process include

reduced operating expenses, and a

green differentiator to maintain and

attract existing and prospective tenants.

The rating system is fairly simple in

its layout. Any building seeking

certification must meet both basic

prerequisite requirements and accrue

points from a variety of

optional credit strategies. Basic

requirements include: verifying

minimum water and ventilation system

performance thresholds, conducting a

baseline energy analysis of the

buildings systems to identify cost-

savings opportunities and establishing

building operational guidelines to

encourage sustainable purchasing,

waste management and cleaning

practices. Additional credit strategies

could focus on: exterior site features

and maintenance practices, water and

energy using systems performance,

material purchased for building

operations and tenants, waste and

recycling performance or indoor

environmental quality improvements.

The cafeteria style rating system allows

project teams to customize their

certification program based on building

ownership requirements, budget and

building infrastructure attributes.

Evaluation criteria are different for

every project, usually balancing

operational cost savings, marketing

impact and tenant satisfaction. In the

commercial real estate market, most

teams focus on LEED strategies with a

good simple payback that

yields a quantifiable return on

investment. For instance, it

may sound like common

sense to optimize when air

conditioning and lighting turn on and

off each day in different areas of the

building, but these quick payback

opportunities and years of operational

cost savings often remain untapped.

Many building improvements yield

simple project cost paybacks of less

than two years and thousands of dollars

of annual savings. On one LEED

project, scheduling changes like these

required approximately $13,000 of

controls contractor programming

assistance but yielded an estimated

$104,000 of annual operating savings.

There are also strategies that create

financial payback while simultaneously

improving tenant conditions, such as

addressing issues with HVAC system

economizer cycles. When working

properly, these cycles should optimize

outside air use for climate control and

minimize use of the system’s mechanical

compressors. But these economizers

often operate incorrectly, using excessive

energy and creating poor indoor air

quality. Correcting this helps your

bottom line and provides a positive,

tangible story to share in releasing

negotiations and in conversations with

potential tenants.

Even though

the benefits are

clear, you’ll still

need to be aware

Should a LEED EBOM CertificationFigure Into Your Next Fiscal Year?By Eric Baxter



LEEDof and justify the costs of a LEED

certification program. Basic costs

incurred on all projects will include

registering the project and paying for

the independent third party review of

your certification submission. Other

costs could include outside consulting

assistance, investments in equipment

infrastructure and small changes to

procurement practices. Many of your

service subcontractors (window

washing, landscaping, pest manage-

ment, cleaning, etc.) are willing to

move to greener operational practices

for little or no cost premium to keep

your business.

Buildings with more than 20,000

square feet typically find a good

balance of costs-to-savings potential,

and an assessment process will solidify

what strategies make the most sense.

Smaller buildings can still find savings

and improved occupant experiences

with the same strategies larger

buildings use, but certification costs

may not make sense for them. On

many projects a $50,000-$100,000

working budget range is a good

placeholder to start planning your

project before you assess for energy

saving opportunities in your building

systems.

Overall project costs range from as

little as $0.10 per square foot to $1 per

square foot. Though most projects

begin with a focus on cost savings,

many building owners discover equal

value in quick payback measures and in

operating and maintaining their

facilities to a higher level of

performance — a great benefit for

their tenants, marketing , occupancy

rates, the environment and, yes, their

bottom line.

Eric Baxter is the existing buildings group

director at Brightworks Sustainability

Advisors. He can be reached at



Many who have successfully

negotiated a reduction of

their loan obligations have

been caught by surprise when they

receive a 1099 showing ordinary income

equal to the debt reduction. This is

generally known as cancellation of

indebtedness (COD) income and is

explicitly identified in the definition of

“gross income” in Section 61(a)(12) of

the Internal Revenue Code. Borrowers

need to understand the tax consequences

of each of the proposed options as part of

the decision-making process.

While a detailed treatment of COD

income is beyond the scope of this

article, an overview of some of the key

concepts and provisions may prove

helpful. Borrowing money from a

lender does not result in taxable income

because the receipt of the money is

offset by the obligation to repay the

loan. However, if the repayment is for

less than the amount owing, the

borrower obtains an economic benefit.

As is common in tax matters, the

Internal Revenue Code sets forth a

number of exceptions to the

recognition of COD income.

Two of the most frequently used

exceptions are a discharge of debt when

the taxpayer is insolvent or is discharged

as part of a Chapter 11 bankruptcy and

a discharge involving indebtedness on

the taxpayer’s personal residence. While

insolvency would normally sound

promising, the determination of

insolvency is made at the taxpayer level.

Accordingly, for any entity taxed as a

partnership (such as most LLCs), the

determination takes place at the owner

level rather than the entity level. The

owners would have to be insolvent to

take advantage of that exception.

Additionally, the exceptions do not

offer a “free lunch.” The borrower pays

the price with a reduction in basis or

other relevant tax attributes.

Finally, Congress has provided

additional but temporary relief by

allowing the taxpayer to elect to

recognize COD income over a five-

year period. To qualify, there must be a

“reacquisition of an applicable debt

instrument.” The term “reacquisition”

includes complete forgiveness of the

debt or any of the following: a purchase

for cash or other property, an exchange

of one debt instrument for another, an

exchange of debt for stock or

partnership interests, or a contribution

of debt to the capital of a company.

Property owners will need to

understand the practical impact of

these tax considerations in order to

fully assess the desirability of their

workout options and to avoid surprise

COD income at a time when they may

be least able to pay. Consultation with

tax professionals is strongly advised.

Kyle Jones is an

attorney with the law

firm of Fabian &

Clendenin and is a

shareholder in Fabian’s

Business Organization,

Tax and Transactions

practice group. He can

be reached at 801.531.8900 or


Know the Tax Consequencesof a Commercial Loan WorkoutBy Kyle C. Jones

legal


Utah FacilitiesP.O. Box 970281Orem, UT 84097-0281

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