Advocacy, Education & Networking for Commercial Real Estate

Winter 2016

Become an Air Aware EmployerPage 2

Our Aging WorkforcePage 3

2016: An Exciting Year for BOMAPage 4

Energy Management CulturePage 5

Window Film Can Equal LEED CreditsPage 7

2018 Super Bowl:Bold North Retail Pop-Up EventBy Carly Broderick, ChairBold North Retail Committee

The Super Bowl is coming to Minnesota in 2018, bringing more than just a game to

our community. Over one million visitors, eager to experience all the festivities that a Super Bowl has to offer, and thousands of members of the press – not only from sports, but lifestyle and entertainment media – looking for a story to tell about what’s new, fun, and different about the community they are in will visit our city. This gives the host a huge opportunity to shine a spotlight on a key driver of this activity: its local businesses.

We’re the Bold North – a state known for innovation, rich in homegrown consumer and retailer brands. This is our time to step onto the international stage and showcase and promote Minnesota businesses. And Downtown Minneapolis is the perfect place to put our retail options on display for the whole world to see.

The Bold North Retail Pop-Up event will bring together the best in Minnesota consumer brands and retailers, aligned with high-traffic locations in downtown Minneapolis, c r e a t i n g a unique s h o p p i n g exper ience for the d i v e r s e a u d i e n c e s who take part in the 10 days of Super Bowl f e s t i v i t i e s leading up to the big game. Families and individuals from across Minnesota as well as our neighboring states and Canada will descend on the Twin Cities, drawn in by the energy and events of the festival. Ticketholders and NFL guests

will arrive in the days prior to the game, eager to experience all that the NFL, the Host Committee and other organizations have to offer. Over 5,500 media will set up shop in Minnesota for the entire stretch, looking for a new angle and a fresh story to tell about all that the Twin

Cities and Minnesota has to offer.The Bold North Retail Pop-Up event will occur during the entirety of the 10 day festivities leading up to the Super Bowl, and brands are already clamoring to be included

in this unique opportunity to elevate their brand and showcase their products, services and retail experiences. The Super Bowl Host Committee’s Retail Committee, organizer of the Pop-Up event, is also exploring the potential for 60-day leases, as some brands

are interested in expanding their participation to include 2017 holiday pop-up events as well.

In the first quarter of 2016, the Retail Committee will begin identifying potential locations in downtown Minneapolis, ideally situated in the skyways, for pop-up retail stores. An educational event will be scheduled, and will include BOMA members, in early 2016 to share

more information on how to get involved and highlight your buildings’ potential as a site for long-term retail. Watch the BOMA E-news for more information, and start thinking about how you can be part of this Bold North effort! t

Page 2 • Winter 2016 • BOMA Greater Minneapolis

Become an Air Aware EmployerBy Dan McLaughlin, Executive DirectorMove Minneapolis

Poor air quality negatively impacts all residents and businesses in the

region. In 2008 air pollution contributed to 2000 deaths, 400 hospitalizations and 600 emergency room visits in the Twin Cities.1 This translates to increased costs for area employers through higher absenteeism, reduced work productivity, and the possibility of more extensive and expensive regulations.

People who are sensitive to the effects of air pollution may not always know it. They know when they feel sick, but they might not realize that air quality can have something to do with it. A “bad air day” is one where air pollution can make

people sick, and one of the best ways to know if we’re having such a day is to check the Air Quality Index (AQI) (http://bit.ly/1GXPWdT), which provides real-time air quality information.

A group of major Twin Cities companies is helping to spread awareness among their employees about the AQI by becoming “Air Aware Employers.” This program started as an initiative of

Clean Air Minnesota to raise awareness of steps people and businesses can take to help reduce the impact of bad air days. Employers who sign

on to participate, pledge to notify their employees when air quality in the Twin Cities metro reaches AQI levels designated “unhealthy for sensitive groups” or worse. They can also encourage their employees to take personal actions that

can improve air quality, such as using mass transit regularly, minimizing use of gas-powered lawn equipment, or burning wood during air alerts. By participating in this voluntary p r o g r a m , employers can get information for use in newsletters and

other wellness messaging to help keep Minnesota’s air clean.

Move Minneapolis, a local transportation management organization (TMO), is working closely with employers and property managers to support and promote the Air Aware Employer program in the workplace. Move Minneapolis recently garnered pledges from four large local employers. These pledges represent

more than 20,000 people whose employers are now sharing information about the connection between air quality and health, and how

participating in e m p l o y e r t ransportat ion b e n e f i t s , w e l l n e s s programs and sus ta inab i l i t y efforts can make a difference. t

1http://www.pca.mn.gov/index.php/about-mpca/mpca-news/featured-stories/life-and-breath.html

Air Quality Resources

beairawaremn.orgbreatheEZmpls.org

moveminneapolis.org

For more information on how to become an Air Aware Employer or how to help promote the program to tenants, please contact Dan MacLaughlin, Executive Director, Move Minneapolis. Email: dan@moveminneapolis.org Phone: 612.466.7324

BOMA Greater Minneapolis • Winter 2016 • Page 3

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I was required during high school, like many of us, to take home economics and industrial arts

classes where I learned basic skills and understanding of how to bake and cook, sew and cut wood. These classes were gateways for many students to obtain skills that could be enhanced with further training.

In recent conversations at meetings with BOMA leadership, we discussed the fact that industrial arts classes are being eliminated from many schools. Additionally, it appears our education system is leaning more heavily towards preparing students for core college programs including science, technology, engineering and math - leaving the aforementioned training out of high school curriculums.

Our society and education system seem to focus on t h e o r y and not a p p l i e d skills, a belief that l ea rn i ng how to swing a h a m m e r or fabricate something from wood or sheet metal is part of a by-gone era. As a society, these skills are not something to strive for. If

“industrial arts” is passé and no longer relevant in the education system, then are we to believe that “hands-on skills training” is no longer needed in the K-12 curriculum or in our workforce? In my opinion, eliminating industrial arts class is short-sighted and detrimental to America’s future.

As my colleagues and I discussed, there are ample opportunities for gainful employment that may not require a traditional college degree. There are many talented young individuals who could thrive with a technical degree.

According to the MN Department of Labor, Minnesota’s unemployment rate is 3.7% through October 2015 – running 1.3% lower than the 5% US national average. Minnesota has always been proud of its low unemployment rate – however, it puts pressure on the employers. During a recent conversation with another colleague and BOMA member, the shortage of engineers and maintenance technicians in commercial real estate careers is concerning.

Consulting firm Deloitte estimates that more than thirty-five percent of

professionals in our industry will retire by 2020 and there is a fear that there are not enough well-trained young professionals to replace

them. There are great colleges offering commercial real estate degrees and many firms have established training programs and

offer designations like BOMA’s RPA and FMA to groom young employees for professional positions. Perhaps more needs to be done to promote and recruit the engineering and maintenance staff into our industry. The aging workforce includes engineers which means there will be a dramatic need for highly trained engineers to serve our buildings in the future. These positions are a crucial part of our successful teams and necessary to successfully run the assets entrusted to us by our clients.

BOMA member companies benefit from not only traditional colleges

offering real estate programs but also the tech schools like our local Dunwoody College of Technology, offering construction and building technology programs and degrees. The fields that Dunwoody prepares for starts in our K-12 curriculum. We should not disregard these “hands on” courses and fight to have them continue in our schools. If you feel this is important to our industry, please help us communicate this message by contacting your local school board and elected officials. t

By Kim Ihle, BOMA PresidentGeneral Manager, CBRE

Our Aging Workforce:Why we need to respond

35% of professionals in our industry will

retire by 2020[ ]

Page 4 • Winter 2016 • BOMA Greater Minneapolis

With the new year upon us,

I want to provide you an update on two significant undertakings we have going on here at BOMA. Both will allow us the chance to somewhat reinvent ourselves without taking our eyes off what is important to all of you.

Rebranding of BOMA As with many companies and organizations, a periodic proactive rebranding is an important element to keep fresh and relevant. More than just a new logo, the goal of rebranding is to leverage existing brand equity to create a relevant and memorable brand story and elements which support and reflect priorities. During the past year, BOMA has been preparing to tackle this endeavor. After

researching several branding and creative companies which were suggested by other association executives, an RFP was distributed to five companies. A thorough review of the received proposals ensued and the field was narrowed to two finalists. The two companies then met with the BOMA staff, reviewed their proposals and answered questions. After careful consideration, the staff recommended Mercury Creative Group to the board.

The project objectives as detailed in Mercury’s proposal are as follows:1. To grow membership with a

younger, diverse demographic2. Strengthen BOMA’s brand

as a thriving and dynamic organization

3. To aid in high member retention

4. To have strong brand recognition

In order to accomplish the above, the process will be completed in phases consisting of brand strategy, member insights, brand elements and marketing collateral. As you can appreciate, this project will take us well into 2016 before the rebrand is completed. Along the way, each of you will have a hand in helping create the brand.

To be clear, the core mission of our organization will remain the same by providing advocacy, education and networking to our members. The rebrand will help launch us into the future to stay relevant with the changing culture and industry.

BOMA Office SpaceOur current location at the TCF

Tower has been our home for nearly 25 years and our current lease expires in August 2016. As with many of you and the tenants you serve, periodic assessments of office needs are analyzed to meet changing demands of businesses. The board, wanting to seize this opportunity, made the decision to explore all options and enlisted NTH, Inc. to conduct an analysis of our needs for today and into the future. The staff provided detailed input and an RFP was distributed. A number of proposals were received (including TCF Tower). The list has been paired down to five buildings, and a decision will be made by the board in the first quarter of 2016. t

By Kevin Lewis, Executive DirectorBOMA Greater Minneapolis

2016: An Exciting Year for BOMA

PAY YOUR 2016 MEMBERSHIP DUES!

Don’t forget to

INVOICES WERE MAILED ON NOVEMBER 25th.PLEASE CONTACT THE BOMA OFFICE AT

(612) 338-8627 TO ADD MEMBERS OR REQUEST ANOTHER COPY

OF YOUR INVOICE.

PAYMENT IS DUE JANUARY 31ST!

Harris Companies is one of America’s most trusted mechanical contractors. Our Twin Cities service team provides maintenance and installation programs that reduce energy and operating costs. Schedule your comprehensive building survey today!

(651) 602-6500www.hmcc.com

Leadership through innovative & responsible solutions

BOMA Greater Minneapolis • Winter 2016 • Page 5

Creating an Energy Management Culture at Your Building!

By Bruce Schuette, Regional Operations Manager, Cushman & Wakefield | NorthMarqVice-President, Engineers Association

Energy management is a discussion that is constantly evolving as new technologies

and new requirements are coming to the industry. Managing the energy in our buildings is a dynamic, ongoing process which requires continuous assessment and revision. When done properly, a new energy management culture can be born in your building! Sometimes, the task can seem daunting, but hopefully this article will simplify the process by explaining 3 M’s to consider when it comes to energy management: Measurement, Metrics, and Management.

MeasurementThe first step in the process is actually very simple; you can’t manage what you don’t measure. It is amazing that building engineers in many buildings don’t see the utility invoices. As a result, these buildings tend to lose efficiency over time. Those who are experienced in managing a building’s energy can usually tell pretty quickly upon entering a building whether or not it is efficiently operating. To start the process of measuring a building’s energy, ask the question, “Do you know how much energy you use?” The answer to this question can be

quite telling. Logging daily energy use during building rounds or by using an automation system works well and is a preferred method, but there are also third party vendors whose energy management software is tied into utility meters and can be very effective in helping answer this question. To start any energy management plan, it is important to start by benchmarking energy use using EPA Energy Star Portfolio Manager. Buildings that keep track of this information manage their costs well and energy management becomes part of the culture of a building.

MetricsNext, it’s important to gather the metrics. Many buildings find it efficient to keep a spreadsheet of energy usage. This keeps track of kilowatt hours per square foot and cost per square foot. It would also track the building’s energy use index broken down between all the different forms of energy used in the building. This helps identify areas for improvement. A major contributor to more energy use is runtime on equipment. The cheapest form of energy is that which is not used! This information assists with the next step, the management team.

Management TeamAn energy management team works together to assess, set goals and track progress. The team should include building engineers, property managers, and sometimes even tenants. It’s a great way to involve everyone and get buy-in on an energy management culture in a building. Once individuals who have no interest in conserving energy see the savings unfold, you then see them engage and even get excited about the initiative to save energy. A good approach to start with is the no cost, low cost, repair and maintenance types of projects. During the meetings, you can identify energy conservation

opportunities and rank them by importance, payback and timing. It works well to have a leader and meet monthly and to limit discussion to energy management topics.

Energy management requires being aware of your usage and taking steps to assess and revise your plan. You will be amazed at the amount of energy you can save and the value you add to your owner’s investment. Try implementing these steps to your building to see a new revival of energy management culture at your building! t

Environmental

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763.788.7713 main 612.327.1630 cell dkrakowski@mavo.com

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Page 6 • Winter 2016 • BOMA Greater Minneapolis

Best of BOMA GalaEvening to include:• Cocktail Hour• Dinner• Awards Ceremony

including TOBY and Best of BOMA Awards

February 11, 2016University of MN • McNamara Alumni Center

2016

It goes without saying that the Minneapolis area commercial real estate community comprises the “best-of-the-best” in the industry. Now it’s time for these leaders and buildings to garner the accolades they deserve. Join us for an evening of dinner, celebration & awards as we celebrate our industry.

Best of BOMA Awards will be presented in the following categories: Senior Property Management Professional of the Year, Property Management Professional of the Year, Engineering Professional of the Year, Emerging Leader of the Year, and Service Partner of the Year.

This year, BOMA is is pleased to have 9 outstanding buildings competing for a TOBY Award in 2016! The TOBY Award is the most prestigious and comprehensive award in the commercial real estate industry, honoring the best properties in 14 categories to recognize those that exemplify superior building quality and excellence in building management.

Thank you to our Platinum Sponsors!

Gold SponsorsABM Onsite Services • Cushman & Wakefield | NorthMarq • Harvard • Kimberly-Clark

Kraus-Anderson Realty Company • LVC Inc. • Target Corporation • The 614 Company • Xcel Energy

Silver SponsorsAccesso Services, Aspen Waste Services, CBRE, CenterPoint Energy, Clean Reponse, Impark, Marsden Building Maintenance,

NTH Inc., Piedmont Office Realty Trust, RJM Construction, Schindler Elevator, Shorenstein Realty Services, ThyssenKrupp Elevator, Transwestern, Zeller Realty Group

Read more in the enclosed brochure!

BOMA Greater Minneapolis • Winter 2016 • Page 7

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Window Film Can Equal LEED CreditsBy Matthew Stendera, Sales ManagerSolar Shield Inc.

Window film is one of the most cost effective retrofit products to help reduce

energy costs for both commercial and residential properties. As such, there are many opportunities to leverage window film when applying for LEED Certification through the U.S. Green Building Council (USGBC.) While some of these categories seem to contradict each other, it is important to review the entire set of opportunities and apply for the areas that will provide the most impact for your building.

To begin, here is a brief introduction to window film from the International Window Film Association. Window film is a thin sheet of window coating, professionally and permanently installed, to deliver a range of high-value benefits. Introduced over 30 years ago, window film now has been engineered using today’s advanced technology to deliver energy savings similar to Low-E windows, in certain cases out-performing them, yet at a fraction of what replacement windows cost. There are a variety of window films on the market with varying VLTs and heat rejection properties, and have earned certification from the National Fenestration Rating Council.

So why choose window film?• ROI in as little as 2 years• One of the lowest cost retrofit

solutions to save energy• Energy Analysis available for

commercial buildings to show the impact prior to applying

• Can fit into several categories to gain LEED credits

• Can update the look of the building, not just the feel

• Can be installed with little disruption to the building’s occupents

According to the Commercial Buildings Initiative, the commercial building industry in the U.S.A. accounts for 40% of the total amount of energy consumed, and up to 40% of carbon emissions. LEED is an integral part of retrofitting today’s commercial interiors with energy efficient upgrades. All buildings applying for LEED certification must meet the EPA ENERGY STAR® rating of at least 65 minimum and 69 to meet the Energy Portfolio Manager Tool Requirement. Window film can help companies meet that initial 65 rating and provide additional LEED credits once the baselines are met.

Below are categories for which buildings could be awarded LEED Points. These are based on window film reducing the amount of heat coming through the windows, upgrading the current energy performance of existing windows and doors, creating a more comfortable environment for occupants, greatly reducing the amount of UV entering the building and providing protection from skin cancer, and the protection from flying glass shards that safety solar films can provide:

• Indoor Thermal Comfort • Energy and Atmosphere• Daylight and Views• Optimizing Energy Use• Internal Windows• Indoor Environment Comfort• Indoor Environment Quality• Reduce Light Pollution (at

night)• O p e r a t i o n s / U p g r a d e s /

Maintenance• Sustainable Sites• Innovations in Operations

and Upgrades• Materials and Resources

This list is meant to be a guide to

help find the areas in which window film can be of help. For specific point values, each project must look at the categories they have covered, and then can use any of the above areas to have window film provide more points towards certification.

The energy saving benefits of window film can help companies to achieve the initial rating of between 40-49 points for LEED Certification, and can provide additional LEED credits once the base-lines are met. t

Installing window film at Ridgedale Mall

121 South 8th Street, Suite 610Minneapolis, MN 55402