Advocate - June 25, 2015
Volume 21, Issue 6
(Print All Articles)

California Senate Constitutional Amendment 5

 
A new effort to change Proposition 13 protections for commercial real estate has manifested. On June 10th, Senate Constitutional Amendment 5 - a split roll property tax measure - was introduced. 
 

On June 10th, Senate Constitutional Amendment 5 - a split roll property tax measure - was introduced. 

With a two-thirds vote of the Legislature, SCA 5 would to amend the California State Constitution to allow for regular reassessments of commercial and industrial property to their fair market value, starting with the 2018-19 fiscal year. However, the constitutionally mandated 1 percent tax rate would be retained, and Proposition 13 protections would continue to apply to residential rental property and agricultural property. 

The measure would also provide for a five-year phase-in of regular fair market value reassessments for certain commercial and industrial property owners; and exempt from personal property taxes $500,000 of tangible personal property used for business purposes, beginning January 1, 2019.

If approved by two-thirds of the California State Legislature, the measure would be placed on the November 2016 ballot. The Governor’s signature is not required. 

BOMA California members are coordinating with Californians to Stop Higher Property Taxes and allied groups such as the California Chamber, CalTax, and Howard Jarvis, to respond to this attempt to amend Proposition 13, through news media, social media, and direct contact with legislators. 

Regardless of what you may see or hear from the media, please know that BOMA California is pushing back. Click here for materials that can help you respond locally should you engage with the press or local opinion leaders.

Click here for the text of the split roll property tax measure SCA 5 (Mitchell & Hancock)

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UPDATE - May 12, 2015

A new effort to change Proposition 13 protections for commercial real estate has manifested. 

Indeed, a group has formed to engender public opinion in support of changing Proposition 13 to include split roll and advance legislative efforts to introduce a bill in the California State Legislature to change existing property tax law. As leaders of the commercial real estate industry in California, please remain vigilant and conversant about the issue to help counter the political hyperbole. 

Sign-up for updates from Californians to Stop Higher Property Taxes - a BOMA California partner organization, to stay appraised of the latest news.

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Original Post - May 16, 2014

L to R: Asm. Ammiano; Asm. Bocanegra

California State Assemblymembers Tom Ammiano (San Francisco) and Raul Bocanegra (Pacoima), announced an agreement recently to amend the change of ownership rules under California’s Proposition 13 through Assembly Bill AB 2372. The amendments are supported by a diverse group of stakeholders including the California Business Roundtable, the California Chamber of Commerce, the California Business Properties Association, which includes BOMA California, and the California Tax Reform Association.

Over the years, a few complex property purchase deals have given the appearance of an attempt to avert  the Proposition 13 change of ownership rules.  The transactions have been highlighted and used to commove the reform proponents of the property tax law.  This current agreement between stakeholders is meant to update some of the laws implementing statutes to address this viewpoint.

Currently, a property is reassessed when it is sold and/or changes ownership.  However, if none of the purchasers acquires more than a 50% interest, reassessment may not necessarily be triggered.  AB 2372 will be amended to clarify that as long as 90% of a property is sold, a reassessment would be triggered, regardless of whether any individual buys more than 50% of the property.  Safeguards are being negotiated by your BOMA California advocates in Sacramento now to clarify that the change of ownership amendments do not apply to normal turnover of stock for publicly traded companies.

As our organizations have done in the past, BOMA San Francisco and BOMA California will continue to defend Proposition 13 - an initiative that protects both residential and commercial properties.  However, part of an effective defense of the property tax law is to recognize that the intent of the original language may need to be updated to assure the voter approved goals of the initiative are being met.  BOMA believes this agreement does just that.

Split Roll Measures Still Loom

For 2014, various members of the California State Legislature continue to pursue public policies that would undermine the intent of the property tax protections approved by voters under Proposition 13.  Indeed, there are upwards of nine California Constitutional Amendments seeking to lower voter thresholds to amend the initiative's tax protection on properties from 2/3rds (66.66%) to 55%.

Rest assured that your fellow BOMA California members are working hard to protect the industry's interest.  Stay tuned for updates in future blog posts.

 

Topics Included Prop. M Development Limits and Legacy Business Registry in San Francisco

 
San Francisco Board of Supervisors member, David Campos, spoke to BOMA representatives recently at San Francisco's City Hall. 
 

BOMA's Government Affairs Committee members have been meeting with public officials recently to represent your interests.San Francisco Board of Supervisors member, David Campos, spoke to BOMA representatives recently at San Francisco's City Hall. 

Supervisor Campos' Background

Synopsis

This meeting was held to update Supervisor Campos on the fast-paced commercial real estate market in San Francisco. Proposition M, the Office Development Annual Limitation Program, was mentioned and Campos was receptive to our member's concerns. Even so, he would need to review a legislative proposal and hold further discussions with BOMA members to understand the impact of any change to the law.

Supervisor Campos' Legacy Business Registry program was mentioned and Campos has kindly agreed to attend the next Government Affairs Committee meeting on July 8th to provide context regarding his proposal to BOMA members.

Meeting attendees informed Campos of the economic benefits for all of San Francisco, i.e., taxes and jobs generated, from our industry and from the tenants that lease space from BOMA building members.

Lastly, our members' effort to address an imminent labor shortage via the BOMA Foundation and our partnership with San Francisco State University was detailed.  The Foundation's effort to introduce underprivileged youth to the commercial real estate industry through our partnership with Juma Ventures was also discussed.

BOMA San Francisco members appreciate Supervisor Campos' time and are honored to be a resource for her constituents. 

 

San Francisco Public Utilities Commission Orders Mandatory Water Reduction on July 1, 2015

 
BOMA San Francisco's Energy & Environment Committee and Government Affairs Committee members met recently with San Francisco Public Utilities Commission (SFPUC) representatives for an update on the current drought conditions.
 

BOMA San Francisco's Energy & Environment Committee and Government Affairs Committee members met recently with San Francisco Public Utilities Commission (SFPUC) representatives for an update on the current drought conditions.

Please click here to review the presentation.

Email johnb@boma.com with any questions you may have.

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UPDATE - May 29, 2015

In response to the drought and to State-mandated outdoor water use restrictions the SFPUC implemented a Mandatory Irrigation Allocation Program in 2014 that required a 10% reduction in outdoor water use for all potable irrigation customers. This first mandatory reduction applied to all billing periods beginning on or after October 1, 2014 through June 2015 with water allocations determined using 2013 baseline water use data and is expressed as gallons per day (gpd).

Allocations from October 2014 – June 2015 will be totaled and compared against your actual usage during the mandatory reduction period. If total water use exceeds the total allocation, an Excess Use Charge of 100% of your applicable water rate will be charged for each unit of water exceeding the allocation. For the October 2014 to June 2015 restriction period, the Excess Use Charge is a one-time assessment that will be added to your July 2015 bill and will be in addition to normal charges.

Due to continuing drought conditions and the State's expanded outdoor water use restrictions, the SFPUC's Mandatory Irrigation Allocation Program will be extended through 2016 and require customers to reduce irrigation water use by 25%. The SFPUC will provide each irrigation customer with their water use allocations for the next restriction period including billing periods beginning on or after July 1, 2015 through February 2016. Water use allocations will continue to use 2013 as the baseline.

Additional information

Irrigation Allocation Appeal Form

SFPUC Resolutions adopting mandatory reduction for irrigation customers: 10% and 25%

SFPUC Regulations and Restrictions for Excess Use Charges

SFPUC Resolution adopting Excess Use Charges

Amendments to Excess Use Charges

Recycled Water Truck Fill Station

Restricted outdoor water use activities

Other resources to help you save

Water-Wise Gardening Guidebook

Large Landscape Assistance Program

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UPDATE - April 1, 2015

Following the lowest snowpack ever recorded and with no end to the drought in sight, Governor Jerry Brown Jr. announced actions that will save water, increase enforcement to prevent wasteful water use, streamline the state's drought response and invest in new technologies that will make California more drought resilient.

"Today we are standing on dry grass where there should be five feet of snow. This historic drought demands unprecedented action," said Governor Brown. "Therefore, I'm issuing an executive order mandating substantial water reductions across our state. As Californians, we must pull together and save water in every way possible."

High resolution photos of previous snow surveys are available here.

For more than two years, the state's experts have been managing water resources to ensure that the state survives this drought and is better prepared for the next one. Last year, the Governor proclaimed a drought state of emergency. The state has taken steps to make sure that water is available for human health and safety, growing food, fighting fires and protecting fish and wildlife. Millions have been spent helping thousands of California families most impacted by the drought pay their bills, put food on their tables and have water to drink.

Click here for the full executive order issued by the Governor.

Every Californian should take steps to conserve water. Find out how at SaveOurWater.com.

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UPDATE - August 4, 2014

In response to the ongoing severe drought, the State Water Resources Control Board recently passed emergency regulations beginning on August 1, 2014 to ensure all Californians reduce outdoor water waste or face potential enforcement. The SFPUC is continuing its ongoing and comprehensive water conservation programs and educational efforts to ensure that citations are issued only as a last resort.

Californians can be cited for:

  • Washing down driveways and sidewalks except when needed for health and safety purposes.
  • Watering outdoor landscapes in a manner that causes excess runoff. 
  • Using a hose, without a shut-off nozzle, to wash motor vehicles; and, 
  • Using drinking water in fountains or decorative water features unless the water recirculates. 

The State’s requirements are similar to water waste restrictions the SFPUC already has in place and are consistent with water saving tips and guidance we provide our customers rain or shine. 

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Image credit: Randall Benton, Sacramento Bee

Original Post - February 20, 2014

Like most businesses and households, BOMA San Francisco members are acutely aware of California's declared drought and are looking at ways to further conserve water during this unprecedented dry winter.  Indeed, BOMA members have been at the forefront of energy and water conservation for some time though our Energy and Environment Committee and the Commercial Water Conservation Ordinance.

BOMA San Francisco's Energy and Environment Committee (E&E)

BOMA's E&E Committee is one of the organization's most active member groups focused specifically on energy and environmental sustainability in commercial high-rise buildings.  At the committee's most recent meeting, San Francisco Public Utilities Commission (SFPUC) representatives presented on water-saving tips for commercial properties:

  • Determine how and where your water is used on site. If you need assistance, the SFPUC provides free Water-Wise Evaluations.
  • Assign a conservation champion to develop and monitor water conservation efforts.
  • Educate tenants and visitors about water conservation practices; put up signs encouraging water conservation in kitchens, restrooms, locker rooms, and other public areas.
  • Inform vendors that water efficiency is a priority (cooling tower maintenance, landscape, laundry and dishwasher)
  • Install water-efficient fixtures and plumbing devices, such as high efficiency toilets and urinals, faucet aerators, and pre-rinse spray valves. The SFPUC provides fixture rebates and free devices (details below).
  • Identify water conservation opportunities specific to your facility or business and prioritize no or low cost options. 
  • Use a broom, pressure washer, or hose equipped with an automatic shut-off nozzle to clean sidewalks, driveways and pavement.
  • Conduct preventative maintenance to ensure water-using fixtures are working properly.
  • Assess your irrigation system to identify inefficiencies such as leaks, broken sprinkler heads and run off. 
  • Track water consumption through meter reads or monthly water bills to measure water savings achievements and monitor for leaks.

There is not a mandatory water reduction for San Francisco at this time although there is a request from the SFPUC that businesses and households reduce their consumption voluntarily by 10%

Commercial Water Conservation Ordinance (2009)

Our members are fortunate to have had the foresight to work with the City and County of San Francisco on the Commercial Water Conservation Ordinance that applies to any commercial property owner.  The law requires that a building owner repair plumbing leaks and install water efficient plumbing fixtures to obtain a Certificate of Compliance either upon major improvements or by January 1, 2017.

Compliance

Inefficient plumbing fixtures manufactured and installed prior to 1994 must be replaced with efficient fixtures. The SFPUC offers financial incentives and technical assistance for the replacement of inefficient plumbing fixtures. The Ordinance established the following water efficiency guidelines for commercial properties:

  • All showerheads have a maximum flow of 2.5 gallons per minute (fpm);
  • All showers have no more than one showerhead per valve;
  • All faucets and faucet aerators have a maximum flow rate of 2.2 fpm
  • All water closets (toilets) have a maximum rated water consumption of 1.6 gallons per flush (gpf) or the flush volume set by updates to the San Francisco Plumbing Code. Effective July 1, 2011, new toilet fixture installations may not exceed 1.28 gallons per flush, the maximum rated water consumption established in the San Francisco Plumbing Code, Chapter 4, Section 402.2;
  • All urinals have a maximum flow rate of 1.0 gpf. Note: To achieve compliance with the Ordinance, new urinal fixture installations shall not exceed 0.5 gpf, the maximum rated water consumption established in the San Francisco Plumbing Code, Chapter 4, Section 402.3;
  • All water leaks have been repaired.

Click here for more information on how you can help to conserve our most precious resource.

 

BOMA Member Participation is Requested by July 17, 2015

 
The Port is soliciting submittals from the citizenry of San Francisco - including BOMA members - who would like to serve on a new Waterfront Plan Working Group (Working Group) and Advisory Teams.
 

 

The Port of San Francisco is undertaking a robust community process to update its Waterfront Land Use Plan, which sets policies for land use improvements on Port-owned property. 
 
The Port is soliciting submittals from the citizenry of San Francisco - including BOMA members - who would like to serve on a new Waterfront Plan Working Group (Working Group) which will hold public meetings to address the Waterfront Plan update issues. The Port welcomes interested members of the public to apply online for the Waterfront Plan Working Group through July 17, 2015 to help improve the future of San Francisco’s waterfront.

The Waterfront Plan has guided dramatic changes at the Port for more than 17 years. The Port recently published a comprehensive report on these changes as well as emerging policy issues for the waterfront that dictate the need for an update to the Waterfront Plan. 

With aging historic piers, the challenges posed by rising tides and need for seismic repair of the City's Seawall, there is important work ahead to continue to enhance the waterfront for Port maritime uses, and public use and enjoyment. 

The Port seeks robust public exchange and discussion as part of the process and invites interested citizens from San Francisco and the Bay Area to serve on the Working Group, representing Citywide and regional viewpoints, as well as issue-specific knowledge and expertise. The Working Group also will include staff members from the San Francisco Bay Conservation and Development Commission (BCDC) and the California State Lands Commission (State Lands) and liaisons from the Port’s existing advisory groups to ensure a flourishing cross-exchange of information and opinions.

In addition to the Working Group, the Port seeks stakeholders with special knowledge or expertise to serve on Advisory Teams. The Advisory Teams will be a resource for the Working Group providing technical details and knowledge on specified topics, including waterfront resilience; recreation and open space; historic preservation and urban design; and Port financial needs. People who would like to serve on Advisory teams also should submit their interest online.

Submittals of interest will be accepted online through Friday, July 17, 2015. The Port’s selection and response to applicants for the Working Group is anticipated by September 2015 with the Advisory Teams to follow shortly thereafter. 

The public process for the Waterfront Plan Update is scheduled to start in late September 2015 and is expected to take 18-24 months. Details about the planning process schedule and policy topics that will be addressed are described on the Port’s website.

The public process is intended to support the exchange of diverse views and knowledge to produce informed amendments to the Waterfront Plan. In maintaining a clear policy framework that is well understood by the public, the Waterfront Plan will continue to guide future improvements that maintain a diverse, activated Port that serves the needs of the City and the region.
 
About the Port

The Port of San Francisco is a self-revenue generating agency of the City and County of San Francisco, which manages a broad range of commercial, maritime, and public-access facilities along 7½ miles of the city’s waterfront that are held in public trust for the people of California. 


Elect These Leaders for San Francisco This November

 
The BOMA SF-PAC is looking forward to the November 3, 2015 election and our members have already endorsed candidates for elected office in San Francisco.
 

 

BOMA San Francisco's Political Action Committee's Slate Card

The BOMA SF-PAC is looking forward to the November 3, 2015 election and our members have already endorsed candidates for elected office in San Francisco. The PAC will consider any propositions that may be on the November ballot as they are known and assessed by the Committee.

Jim Collins with Shorenstein is leading the effort for BOMA San Francisco

Donate today!

 
Help BOMA Advocacy Leader, Jim Collins (pictured above), as he leads the effort for BOMA San Francisco to ensure that congressional seats are held by individuals who understand real estate’s issues and challenges and can have a positive impact on your livelihood.
 


BOMAPAC is BOMA International’s political action committee. It enables BOMA International’s advocacy team to raise money to re-elect political candidates for federal office who know and understand – and support – commercial real estate issues.

Whether or not you are politically aware, there is no better way to support the candidates and the issues that impact your professional and personal lives. Your contribution, combined with the donations from your BOMA colleagues from across the U.S., will help ensure that BOMA International has the power to back those members of Congress who show leadership and commitment to commercial real estate issues. So let your voice be heard!

Help BOMA Advocacy Leader, Jim Collins (pictured above), as he leads the effort for BOMA San Francisco to ensure that congressional seats are held by individuals who understand real estate’s issues and challenges and can have a positive impact on your livelihood.

Can we count on you to send a check or fill out this form with your credit card information? Members typically donate $100 to $250, but any amount would help the cause. Checks or credit card information should be sent to:
 
BOMA San Francisco
Attention to: Ken Cleaveland (kenc@boma.com
233 Sansome Street, Suite 800 
San Francisco, CA 94104
 
Your support of the BOMA International PAC enables them to pursue their vital effort to protect and enhance our industry in the following ways:
  • BOMAPAC is the only voice solely representing multi-tenant office building owners and managers in Washington, DC.
  • BOMA has been the lead organization in pressing for a permanent 15 year Leasehold Depreciation schedule with Congress.
  • BOMA has been a key leader in promoting tax credits for energy efficiency upgrades to commercial real estate.
  • BOMA was one of the key groups who lobbied Congress to renew the Terrorism Risk Insurance Act coverage for commercial property owners, which was recently passed.
  • BOMA continues to lobby to retain the so-called carried interest tax obligation on real estate developments as a capital gains tax item rather treating it as ordinary income. 
  • BOMA International is the only commercial real estate organization that is active and effective in the international building codes writing and adoption process. New codes or amended existing codes can have a huge and long-lasting impact on our industry.
*Federal law requires political action committees to report the name, mailing address, occupation and employer of each individual who contributes in excess of $200 in a calendar year. Contributions are not tax deductible. Corporate contributions or contributions by foreign nationals are prohibited.

EV-Ready Building Standards Set to Take Effect on July 1, 2015

 
These new EV-Ready building standards will apply to projects for which the permit application is submitted to the local building department on or after July 1, 2015. 
 

 
In response to an Executive Order issued by the Governor in late-2012, the California Building Standards Commission (CBSC) and the Department of Housing & Community Development (HCD) have adopted regulations to require the installation of Electric Vehicle (EV) ready infrastructure. As opposed to installing fully operational (and costly) charging stations for electric vehicles, these EV-ready building standards would be limited to items which would facilitate the later installation of the charging stations at a significantly reduced cost. 

For example, new commercial buildings having parking lots containing more than 49 spaces will be required to have an electrical panel with enough empty plug slots to allow for the later installation of EV charging equipment. In addition, there will also need to be one-inch wide conduit (piping) provided for the later installation of the wiring connecting the electrical panel with a point in close proximity to the designated EV service space. 

Environmental organizations and the Air Resource Board (ARB) had argued for the installation of fully functioning EV charging facilities, however, after hearing concerns expressed by us, the CBSC has chosen to move forward with only “EV-ready” regulations. Doing this also helps avoid issues related to disabled accessibility that will take much longer to resolve. 

For commercial building parking facilities, the required number of EV-Ready parking spaces shall be 1 EV-ready space for every 50 parking spaces. 

These new EV-Ready building standards will apply to projects for which the permit application is submitted to the local building department on or after July 1, 2015. 
 

Costs May Increase for Elevator Maintenance

Your feedback is requested

 
Amendments that may be adopted could make California unique as having the strictest and most expensive elevator requirements in the country.
 

To represent our members' interests, BOMA San Francisco's Codes and Regulations Committee representatives had a rare opportunity to discuss the proposed elevator code changes with the California Department of Industrial Relations, Occupational Safety and Health Division, Elevator Unit (Cal/OSHA) chief, Dan Barker recently. The purpose of the gathering was to help the Department understand any negative impacts, e.g., cost, availability, safety issues, et cetera, that may result from these changes. 

Also, National Elevator Industry, Inc. (NEII) is making building owners aware of the efforts underway by the Cal/OSHA to develop theGroup V elevator codes.  Cal/OSHA has proposed over 60 pages of changes - more than 125 specific modifications - to the ASME A.17.1 (2013) /CSA B44-13 Safety Code for Elevators and Escalators.  

The draft amendments to the ASME Code under discussion are so significant and controversial that, if enacted through formal rule making, they will drastically alter current elevator designs for all of the major elevator companies and impose significant new costs and construction delays on California building owners.

Key areas of concern in Cal/OSHA's pre-rule making draft and initial estimates of potential costs are set forth below.

KEY AREAS OF CONCERN:
  • Prohibits certain machine-room-less (MRL) designs in California.
  • Adds new restrictions for other MRL designs.
  • Prohibits elevator controls from being located in the building hoistway, requiring control rooms to be constructed.
  • Significant cost increases and delays for new construction.
  • Significant cost increases for elevator maintenance on existing buildings.
  • No demonstrable safety benefit; in fact, creates new workplace safety issues.
  • Lack of empirical data to support changes.
  • Disproportionate impact on low to mid-rise buildings.
  • Stunts technological innovation and eco-efficient building designs.
  • Moves California building transportation backwards 20 years.
SIGNIFICANT NEW COSTS:
  • Elevators unique for California
    • $100K-$200K per elevator
  • Larger cars, larger hoistways, less space to rent
    • $25M annually
  • No Hydraulic machine room-less elevators
    • $25M annually
  • Control rooms must be outside of hoistway
    • $100M annually
  • Licensed mechanics required to perform new tasks
    • $33.6M annually
The draft proposed rules are currently under review internally at Cal/OSHA. Formal rule making has not commenced, but we expect the rule making package to be completed and ready to file by late summer. 
 
If you have any feedback, please send it to mhargrove@cbpa.com.
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UPDATE - May 29, 2014

BOMA San Francisco's Codes and Regulations Committee members reviewed a letter that the National Elevator Industry Association wrote to the head of the California Department of Industrial Relations. Click here for a presentation related to the missive and here for an attachment to the letter.

The communication states that the 60 pages of amendments that the Department is considering adopting would make California unique as having the strictest and most expensive elevator requirements in the country.

Please be aware of these proposed changes for elevator maintenance if they are permanently adopted. 

If you have any feedback, please send it to mhargrove@cbpa.com

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UPDATE - April 28, 2014

Since 2012, members of BOMA San Francisco's Codes and Regulations Committee have been working with BOMA California and the California Division of Occupational Safety and Health on changes to statewide elevator maintenance rules.  Our members' feedback was detailed in a BOMA amended 2012 Division Circular Letter.

On April 22, 2014, the Division held a meeting to review a draft of new elevator regulations regarding:

  • Elevator maintenance;
  • The qualifications for elevator inspectors and/or mechanics;
  • And, requirements for other conveyances.

BOMA California members continue to maintain their feelings that routine upkeep of elevators - specifically those that do not affect the safe operation of the system - may eventually require Division mandated oversight by a certified elevator mechanic.  Any proposed changes along those lines would increase the time and cost for the maintenance of elevators and add a modicum of value to the safety of the elevator system.

BOMA San Francisco Board Member Kevin FitzPatirck kindly attended the April 22, 2014 meeting for BOMA members and relayed their comments.

If you have any questions or feedback regarding the draft proposal of new elevator regulations, please contact kenc@boma.com.

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Original Post - October 12, 2012

Elevator Categories of Work Circular Letter Withdrawn

BOMA California representatives are pleased to report that the California Division of Occupational Safety and Health has given notice that it has formally withdrawn Circular Letter 11-01 in its entirety, effective immediately.   Prior to this retraction, BOMA San Francisco's Codes and Regulations Committee members suggested edits to the Circular Letter which was sent to the Division on May 12, 2012.

According to the Division, the Circular Letter was initially published because they had received inquiries regarding if certain work on conveyances were covered by state law. After receiving more information from the elevator industry the Division has decided that clarifications are more appropriately addressed through a formal rule making process. BOMA California members agree and applaud the Division for this decision.  BOMA thanks our colleagues in the elevator industry for their diligence.

There will be future efforts by the Division regarding rule making so this issue is likely to be revisited by year end.

 

BOMA San Francisco Members Advocate for Prop. 13 and More

 
Recently, the annual California Commercial Real Estate Summit (CCRES) was held in Sacramento and attended by over 80 real estate leaders - including BOMA San Francisco members.
 

 

Recently, the annual California Commercial Real Estate Summit (CCRES) was held in Sacramento and attended by over 80 real estate leaders - including BOMA San Francisco members - who converged on California’s Capitol to advocate on behalf of the commercial, retail, and industrial real estate industry. The attendees allowed for seventeen teams of industry advocates who met with almost half of the California State Legislature.

The focus of this year’s CCRES was support for a number of bills that reform our state’s ADA laws as well as support for a measure that would fund energy efficiency PACE programs and a measure to reform the AED statutes.

Members also pressed hard to support Proposition 13 and oppose a recent call by to move forward with a proposal to create a split roll property tax. 

CCRES representatives were also pleased to present our 2015 Legislators of the Year award to Assemblymember Ken Cooley (D-Sacramento) and Senator Jean Fuller (R-Bakersfield). 

Delegates also heard from two statewide Constitutional Officers State Treasurer John Chiang and Insurance Commissioner Dave Jones. As well as Governor Brown's Secretary for Natural Resources John Laird

The goal of the California Commercial Real Estate Summit is to increase public policy and political awareness of state issues impacting commercial, industrial, and retail real estate, and to foster collaborative efforts among business leaders from all sectors of California and their representatives in the State Legislature.

Thank you to our BOMA members who took the time to attend the CCRES!
 
 

Quarterly Update

 
The Economic Barometer reviews general economy-wide employment indicators, as well as major sectors of the City's economy, including real estate and tourism.
 

The purpose of the Economic Barometer is to provide the public, elected officials, and City staff with a current snapshot of San Francisco economic indicators. The Economic Barometer reviews general economy-wide employment indicators, as well as major sectors of the City's economy, including real estate and tourism.

Issuance of the Economic Barometer will be on quarterly basis. Indicators will be updated at sfbarometer.weebly.com, which will include data visualizations of the economic indicators along with a PDF of the quarterly summary. Data on the website will be updated throughout the quarter as it becomes available.

Highlights:

  • San Francisco's unemployment reached a new low of 3.4% in April, the city's lowest April unemployment rate since 2000.
  • Technology industry employment is accelerating in San Francisco and San Mateo counties. Jobs in the Computer Systems Design and Related Services industry, the largest technology industry in the San Francisco, grew 18% in twelve months through March 2015. While tech growth had slackened somewhat during 2013, the second half of 2014 saw its employment growth return to levels seen in the early stages of the area's economic recovery.
  • Class A office rents have followed the same trend. According to JLL, asking rents grew 15% over the past 12 months, after growing only 6% from March 2013 to March 2014. Class A vacancy has dropped from 11.3% to 9.9% by March of this year.
  • Across all industries, private non-farm employment grew 5.1% annually through March, somewhat slower than the rates seen in 2012. However, five years into a period of economic expansion, current rates of employment growth remain very high by historical standards.
  • On the other hand, while housing prices are still rising rapidly, growth has slowed. According to Zillow, the city's median housing value rose by 11%. In 2013, prices were growing at a 20% annual clip.

From the San Francisco Department of Building Inspection

 
Please review the San Francisco Department of Building Inspection's data for use in calculating a building's valuation for building permits.
 

Please click here to review the San Francisco Department of Building Inspection's data for use in calculating a building's valuation for building permits in the City and County of San Francisco.  This schedule is effective as of June 1, 2015.

For additional information, please contact the Department's Technical Services Division at (415) 558-6250.

 

Seeks Buildings-Related Problems to Solve

 
The U.S. Department of Energy's Building Technologies Office is partnering with the successful SunShot Catalyst crowdsourcing initiative to identify and solve problems related to software development, data, and/or automation.
 

The U.S. Department of Energy's Building Technologies Office is partnering with the successful SunShot Catalyst crowdsourcing initiative to identify and solve problems related to software development, data, and/or automation.

In the first Ideation phase of the initiative, those working in the building technology space are invited to submit problem statements describing challenges that need to be overcome in order to promote better engagement with building occupants and to improve the ability to balance energy and occupant comfort objectives in a building. In addition to submitting problem statements, participants are invited to vote and comment on ideas that have already been submitted. To browse buildings-related statements that have been submitted, follow this link.

Individuals who submit a problem statement will have a chance to win a $1,000 cash prize!

Problem statements need to be submitted by July 15, 2015.

So what are you waiting for? Go and submit your problem statement by clicking here. You will need to:

  • Add a title and description of the problem statements
  • Make sure that Ideation is selected in the Campaign drop down box 
  • Use Buildings tag for your problem statement 
  • Add up to 5 URL links to the idea (optional) 

For more information about the SunShot Catalyst and complete contest rules, visit the SunShot Catalyst website.

Competition phases following Ideation will focus on developing products that address submitted problem statements, and contestants will have a chance at up to $1,000,000 in total prizes.