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Management Acquisition LANGLEY Purchases Management Entity Healthcare Facilities A Study on Efficiency LEED Office Space Earns Platinum Rating 12 8 5

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Page 1: Oregon Facilities Jan-Feb 2012

Management AcquisitionLANGLEY Purchases Management Entity

Healthcare FacilitiesA Study on Efficiency

LEEDOffice Space Earns Platinum Rating

11228855

Page 2: Oregon Facilities Jan-Feb 2012

2 I OREGON FACILITIES JAN/FEB 2012

Page 3: Oregon Facilities Jan-Feb 2012

OREGON FACILITIES JAN/FEB 2012 I 3

DEPARTMENTS

JAN/FEB 2012

FEATURES

5

10

12

4

16

15

13

18

22

8LEED

On the Cover: Milwaukie aims for comfort and efficiencyin its south downtown plans for transit-oriented development.Photo courtesy TriMet.

8LEED

Transit-Oriented DevelopmentTransit Spreads to Milwaukie

Management AcquisitionLANGLEY Purchases Management Entity

Healthcare FacilitiesA Study on Efficiency

21

Editor’s Letter

Tenant ImprovementsA Vital Part of Medical Office Leases

Building Information ModelingThe Evolution and Implementation

Energy ManagementA Complicated Study in Typical Challenges

RoofingInexpensive Roofing Options

Briefly

Pest Control

Page 4: Oregon Facilities Jan-Feb 2012

4 I OREGON FACILITIES JAN/FEB 2012

CONTACTPublisherTravis [email protected]

Executive EditorKelly [email protected]

AdvertisingBrian [email protected]

Editorial AssistantKristen [email protected]

Art DirectorDoug Conboy

Contributing Writers

Executive EditorOregon Facilities

Oregon FacilitiesPO Box 970281Orem, Utah 84097Office: 801.224.5500Fax: 801.407.1602www.OregonFacilities.com

EDITOR’S LETTER

Tom BergmannSteve BryantJonathan CohenMary Coolidge

Jeff HarrounAlexandra

IonescuChristopher

Sonnenberg

When compiling content for Facilities Magazines, I often get pitches from our

contributors for articles on sustainability, greening a building or environmentally-

friendly practices. Sometimes I wonder if the topic of green has become too much

of a focus in our publications – and in the commercial real estate industry in

general.The thought crossed my mind while I was attending educational sessions

at the International Facility Management Association’s World Workplace, held in

October in Phoenix, Ariz.The topic of sustainability was a common thread

throughout all of the classes – even in sessions where green would seemingly be

unrelated to the subject matter.

In one class, Crossing the Sustainability Chasm: Strategies and Tactics to Achieve

Sustainability Goals, John Clark, director of corporate marketing for TRIRIGA,

pointed out that commercial real estate facilities release the greatest percentage of

greenhouse gases.Their impact on the environment is substantial.Thus, building

owners have the greatest opportunity to reduce carbon emissions and make the

greatest impact on improving our environment.

The opening speaker at World Workplace, Bjorn Lomborg, author of ‘Cool It: The

Skeptical Environmentalist’s Guide to Global Warming’, addressed a new form of

thinking when it comes to tackling sustainability issues – such as global warming.

In his speech, Lomborg suggested the key to solving environmental issues is not

necessarily through energy-efficient measures, especially considering the costs of

such measures. Issues that have been tied to global warming need to be analyzed

more critically and researchers need to determine and attack the root of the

problem, Lomborg said. In the meantime, building owners and facilities managers

need to do the research on sustainability and implement energy-efficient measures

in their facilities that are both affordable and effective, he said.

“I believe today’s facility professionals need to focus on environmental solutions

that make cold financial sense, while emphasizing policies that will do the most

green good for the money spent,” Lomborg said.

The benefits of green practices are infinite. Building owners are saving money and

energy.They are improving the conditions of their buildings and the environment.

In addition, buildings that are energy efficient are more likely to find long-term,

happy tenants. So for the time being and for as long as energy-efficiency is

important in the industry, we will continue to publish articles on sustainability.

The publisher is not responsible for the accuracy of the articles in Oregon Facilities. The information containedwithin has been obtained from sources believed to be reliable. Neither the publisher nor any other partyassumes liability for loss or damage as a result of reliance on this material. Appropriate professional adviceshould be sought before making decisions.

Copyright 2012 Oregon Facilities Magazine. Oregon Facilities is a Trademark owned by Jengo Media.

Oregon Facilities is a proudBOMA National Associate member.

Page 5: Oregon Facilities Jan-Feb 2012

OREGON FACILITIES JAN/FEB 2012 I 5

T ransit-oriented development is spreading like

wildfire throughout the western states. A recentarea experiencing the heat: Milwaukie, Oregon,

an inner-ring suburb of Portland. The Portland regionis expecting to add one million new residents and nearly100,000 new jobs within the project corridor by 2030.The $1.49 billion light rail project, expected to open in2015, along with Milwaukie’s south downtown plan willbe the perfect transport-regulating solution for thegrowing population.

The Portland-Milwaukie Light Rail Transit Project willbe complemented with a station building at the TriangleSite in downtown Milwaukie.The station is being built forretail development, including bike shops and coffee shopswhere people can comfortably gather as they wait for trainsor passengers. The plans for the Milwaukie station areseparate from the light rail project, although both the cityand TriMet, Portland’s regional public transportationagency, are hoping to have the station building finished bythe time the light rail is completed.

continued on page 6

Milwaukie Aims for Comfort and Efficiency in its South Downtown PlansBy Kristen HutchingsAssociate Editor

Photo courtesy TriMet

Page 6: Oregon Facilities Jan-Feb 2012

6 I OREGON FACILITIES JAN/FEB 2012

“The station is an important parcel,and the city has strong ideas of whatshould be built there,” said KatieMangle, planning director for the Cityof Milwaukie.

The city has taken measures toensure the community, even the localhigh school students, have ampleopportunities to voice their concernsand see their ideas implemented at thestation. As of now, downtown willcontinue to be occupied by localbusinesses.

A Bridge to the FutureIn addition to maintaining a local

feel, the community expressed theirconcern over the construction plans ofTriMet’s Kellogg Creek light rail bridge.The original plan for the large concreteinfrastructure would block too muchsunlight, diminishing the cozy,hometown effect the community hadenvisioned. To combat this, the city andTriMet came up with a few solutions.The columns of the bridge will beminimized in size, and many will beeliminated completely. In addition, noneof the columns of the 700-foot bridgewill be submerged in Kellogg Creek, abrighter and greener move for theenvironment. The bridge’s abutments,the areas where the bridge supportstouch land, will have surface treatmentsat a pedestrian scale, especially innorthern downtown, and will include

texture and lighting that will make it afriendlier, safer place to walk, Manglesaid.

“The bridge really could have lookedlike a highway bridge, all concrete andreally bulky,” said Mangle. “Instead,TriMet worked with the community touse materials like Corten steel tubs thatare more earthy than concrete andintroduced details like special railingsand texture on the columns that will addsome more craft. Even though it’s still avery large infrastructure, it will have alittle bit more human feel to it.”

Excess car traffic is discouraged insouth downtown. In fact, Milwaukie’shistoric neighborhood has alreadyembraced the biking industry, an aspectthat goes hand-in-hand with TOD.Future mixed-use development in thearea will make walking, biking andtransit easier for residents and visitors.

Store Front ImprovementBusinesses have also taken part in the

planning process, which is why part ofthe south downtown plan includes thestore front improvement grant program.Financial funding is available to retailersfor basic touch-up projects that abide bythe design standards the businessowners and managers have agreed toimplement, said Mangle.

“It’s amazing what a difference just anew paint job with a few differentaccent colors can make to really brightenup a building,” Mangle said. “Other

buildings are replacing windows, one isreplacing a sign, some are replacinglighting.These are generally the projectsthat business owners have been thinkingabout for years. Once they know the citywill pay half of it, they are finally gettingthe estimates and getting the workdone. Most of it is superficial work thatdoesn’t require a lot of permits, doesn’trequire a huge investment, but will makea huge difference to how vibrant mainstreet looks.”

Mangle continued, “We are doing alot of coordinating, writing policy,encouraging private property owners todo things and connecting them withoutside resources.”

The city is encouraging localbuilding owners to work together onmarketing strategies as well as otherareas that need improvement.The SmallMoves Program helps owners identifyways to better utilize their property.Property and business owners who aremore organized are able to get involvedin the community and make smallchanges, helping the area increase

continued from page 5

Photo courtesy Ankrom Moisan Associated Architects

Page 7: Oregon Facilities Jan-Feb 2012

profits. The seemingly small changeswill enhance the aesthetics of the areaand pave the way for biggerimprovements. The area is alreadybeginning to see a booming change,Mangle said.

The Boom Begins“We were talking to a commercial

real estate broker recently who isstarting to really work on the Milwaukiedowntown, and because of the light railand the cumulative effect of peoplemaking investments in Milwaukie, we’reactually seeing the beginning of aboom,” Mangle said. “I think there’smore development and retail activityhappening now then there was threeyears ago at the peak of everyone else’sboom.”

Milwaukie will eventually link toPortland by light rail, decreasing trafficand use of cars between the two cities.Milwaukie’s TOD will enhancetransportation efficiency in under-served communities and createcomfortable public areas.

“The light rail project will alsoincrease the value of the buildingsdowntown,” Mangle said. “That’s whatbusinesses outside of Milwaukie aretelling us. People are starting to noticeand think about Milwaukie in adifferent way now that the light rail iscoming. So, it will have a positive impacton the businesses on Main Street, partlybecause it will be on the radar of peoplewho haven’t really thought aboutMilwaukie before.” OF

Photo courtesy TriMet

OREGON FACILITIES JAN/FEB 2012 I 7

Page 8: Oregon Facilities Jan-Feb 2012

8 I OREGON FACILITIES JAN/FEB 2012

The Northwest Energy Effici-

ency Alliance’s office space,located in the historic

Commonwealth building in downtownPortland, has achieved U.S. GreenBuilding Council LEED forCommercial Interiors (LEED-CI)Platinum Certification. The rating isthe green benchmark for the tenantimprovement market and therecognized system for certifying high-performance green interiors. Thesespaces are noted for being healthy andproductive places to work. LEED-rated offices are less costly to operateand maintain and have a reducedenvironmental footprint.

“We are honored to be able to useour office space as a vehicle to promoteenergy efficiency while walking ourtalk,” said Claire Fulenwider, executive

director of NEEA. “We used the sameapproach to green leases that wepromote through our initiativeBetterBricks, including findingpartners with like-minded values andpriorities. The takeaway is that nomatter what kind of tenant or landlordyou are, energy efficiency is good foryour bottom line, for workplaceproductivity and for the environment.”

The partnership with NEEArepresents a commitment betweenlandlord and tenant, said Brett Phillips,director of sustainability for UnicoProperties LLC, the building’s owner.

“When you marry a green buildingwith a sustainability-minded tenant,you create high-performing buildingsystems that maximize environmentaland economic efficiencies,” Phillipssaid. “NEEA has become an important

ally to Unico both as a tenant and as apartner in the sustainability world.And, as an owner with a distinct focuson sustainable building operations, wehave made numerous investments atthe Commonwealth Building to enabletenants like NEEA to more easilyachieve LEED-CI certification. We arehonored to collaborate with NEEA onits efforts in achieving this premiergreen benchmark.”

In addition to Unico, thecollaborative team includedBrightworks, Ditroen Inc., ColliersInternational, Convia Inc., GreenBuilding Services, Herman Miller,Lloyd Johnson Consulting, LUMALighting, Pacific Office Furnishings,Russell Construction Inc., SmithCFI,Steelcase Inc. and WGS Interiors.

“There was a large team of partners,

Photos courtesy of NEEA

Page 9: Oregon Facilities Jan-Feb 2012

OREGON FACILITIES JAN/FEB 2012 I 9

manufacturers, designers and vendorsinvolved to make this all happen,” saidSusan Hermenet, who was in charge ofthe relocation and maximizing energyefficiency in the new space. “Theirprofessionalism and knowledge were akey component in a seamless transitioninto our space while giving us the toolsneeded for a LEED Platinum rating.”

NEEA’s office space utilizes manysustainable and green attributes thathelped garner its rating. The office’sLighting Power Density (LPD) is.52/W/ft2 and uses 53 percent lessenergy each year compared to Oregoncode.

Open and closed office areas havedaylight sensors that dim overheadlamps in response to increased daylightthrough the large windows. Employeeworkstations are wired into the Conviaenergy management system thatmonitors energy used (by both lightingand plug loads) at employeeworkstations. An occupancy sensor ateach workstation allows for equipment

to be turned off automatically when theworkstation is vacant, resulting inreduced plug loads.

Marmoleum floors and bamboocountertops were used for the kitchen,which also includes a recycling stationfor composting food scraps and paper.No-VOC paints were used for theentire office, while employees who bikeinto work can park their bikes in one ofthe many bike spaces within the offices.

As part of its “green lease,” NEEAagreed to seek and maintain LEED forCommercial Interiors certification andnot use or operate the building in a waythat does not conform with thecertification. Meanwhile, the buildingowner agreed to separately sub-meterNEEA’s exclusive electrical usage andcooperate with NEEA during itspursuit of the LEED rating. NEEA hasbeen sharing its practices with othertenants and landlords transparently.

“NEEA is ‘walking the walk’,” saidPhillips. “By earning Platinum LEEDstatus for its office space, NEEA is

demonstrating that energy retrofits haveboth environmental and economicadvantages for tenants, owners,buildings,communities and the entire region.”

NEEA is located in the historicCommonwealth building, originallynamed the Equitable Building when itwas built in 1948 by renownedarchitect Pietro Belluschi.The buildingwas the first in the U.S. to use a double-glazing window system and the firstlarge commercial building in the nationto use heat pumps for heating andcooling. The rating is the ninthachieved in the Portland metro area.

The Northwest Energy EfficiencyAlliance is a non-profit organizationworking to maximize energy efficiency tomeet their future energy needs. NEEA issupported by and works in partnershipwith Bonneville Power Administration,Energy Trust of Oregon and more than100 Northwest utilities. For moreinformation, visit neea.org. OF

Some of the key highlights of the LEED-CI Platinum Certification include:• 84 out of 88 points were awarded

• High-performance lighting uses 53 percent less energy than required by Oregon code

• Water-efficiency measures use 44 percent less water than a comparable space without these efficiencies

• 100 percent of the furniture is certified as meeting requirements for healthy indoor air quality

• Most of the building materials contain no or low-VOC content, a key component of indoor air quality

• During construction, 95 percent of the waste was diverted from landfills, while 29 percent of construction materialscontained high-recycled content

Page 10: Oregon Facilities Jan-Feb 2012

10 I OREGON FACILITIES JAN/FEB 2012

Former Ashforth PacificCEO Purchases

Company AssetsScott Langley Plans

to Create aMore Efficient

Business Model

By Kelly LuxExecutive Editor

LANGLEY INVESTMENT

PROPERTIES, a newly-formedinvestment management company

by Scott Langley,has bought the manage-ment entity of Ashforth Pacific, Inc., aConnecticut-based commercial real estatecompany with a strong presence on theWest Coast. LANGLEY will be anequity provider along-side its institutionalpartners in future acquisitions anddevelopments.

The acquisition will give Langley,former president and CEO of AshforthPacific, control of approximately threemillion square feet of Class A mid- andhigh-rise office space and nearly 100

Photos courtesy LANGLEY INVESTMENT PROPERTIES

Page 11: Oregon Facilities Jan-Feb 2012

employees in Portland, Seattle and SanFrancisco. The LANGLEY portfolioincludes the Pacwest Center, nearly523,000 square-feet of Class A officespace, the Lloyd Center Tower, another434,000 square feet, the Liberty Centre at278,000 square feet, the Orrick Buildingat 504,000 square feet and the ExchangeBuilding with approximately 300,000square feet of Class A office space.

Langley worked with Ashforth formore than a decade and doubled thesize of the portfolio in that time. Hewill continue to focus on investment,development and management servicesas an owner, partner and operator,providing asset, property, parking,construction and developmentmanagement expertise as well as leasingand building engineering services. Bycentralizing ownership of the company,Langley hopes to create a more efficientbusiness model.

“Everyone is excited about thetransition and the local ownership,”Langley said.“There is a strong, positiveattitude about bringing the company’sheadquarters locally – to the WestCoast.”

The company will continue similaroperations under the new name with apush toward expansion in Portland,Seattle and San Francisco and otheropportunities along the West Coast.

Growing LANGLEY INVEST-MENT PROPERTIES Langley withnew and existing partners will be a toppriority for Langley.

“We are always looking for otherexisting assets in which to invest. Weare also contemplating futuredevelopment,” Langley said. Currentlyin the planning stages, LANGLEY andAmerican Asset Trust are wellunderway in the development of theLloyd District Superblock. TheSuperblock will be a mixed-usedevelopment featuring office, retail andhousing nestled in the Lloyd BusinessDistrict along the new street car line,minutes from downtown Portland,blocks from the Rose Garden andConvention Center.

“Our vision is to strengthen andexpand LANGLEY’s portfolio, to invest,manage and develop as owners, operatorsand partners of prime commercial officespace,”Langley said.“We will continue tofocus on existing markets. From anoperational standpoint, this transactionshould be seamless to our tenants,vendors and contractors.”

LANGLEY INVESTMENTPROPERTIES will also continue tomanage their buildings on a sustainablelevel – a management style alreadyimplemented by Ashforth Pacific, saidWade Lange, vice president of propertymanagement. Many of the buildings in

LANGLEY’s portfolio have beenrecognized with a Leadership

in Energy and Environ-mental Design

Certification. OF

Scott C. LangleyPresident and CEO

Scott Langley is president andCEO of LANGLEY INVESTMENTPROPERTIES. His career nowspans more than 30 years ofdiversified real estateexperience.

As chief executive, he isresponsible for overall strategicdirection and profitability ofLangley and its partnerships. Heoversees all operating divisionsincluding investment anddevelopment, leasing andmarketing, asset, property andparking management,construction management andgeneral contracting, as well asaccounting and finance.

Prior to founding LANGLEY, hewas the president and CEO ofits predecessor, Ashforth Pacific,for 11 years. Langley previouslyserved as senior managingdirector of Cushman &Wakefield and was responsiblefor institutional markets and TheBoeing Company relationship.

A frequent speaker to businessand industry, Langley is activein the community and hasserved on numerous business,community and non-profitboards. He is the former boardchair and founder of thePortland State University Centerfor Real Estate and a currentboard director of the PortlandBusiness Alliance.

Langley is a graduate of theUniversity of Oregon, LundquistCollege of Business, majoring inReal Estate Finance. Accredita-tions and memberships include:the American Society of RealEstate Counselors (CRE), UrbanLand Institute (ULI), AppraisalInstitute (MAI), NationalAssociation of Industrial andOffice Properties (NAIOP) andthe Building Owners andManagers Association (BOMA).He is also a licensed real estatebroker in both Oregon andWashington.

OREGON FACILITIES JAN/FEB 2012 I 11

Page 12: Oregon Facilities Jan-Feb 2012

12 I OREGON FACILITIES JAN/FEB 2012

T he Legacy Salmon Creek

Medical Center in Vancouver,Washington, was built to

perform more efficiently than thetypical United States hospital in termsof electricity and natural gas. The456,086 square-foot facility wasconstructed with several energy efficientfeatures, including relatively aggressivesupply air temperature reset, heatrecovery on 100 percent of outside airsystems and on steam boiler blow-down, variable frequency drive capacitycontrol on the chillers, high efficiencylight sources, daylighting controls anddirect digital controls for HVACsystems. Because of its reputation forefficient energy use, the 220-bed

medical center, which was built in 2005,was an ideal research hospital for afederally-funded energy studyconducted by the University ofWashington’s Integrated Design Laband Eugene-based Solarc Architectureand Engineering Inc.

“For the purposes of the researchproject, the study hospital needed to bea new facility within an acute careprogram area of about 500,000 squarefeet, preferably located in the WesternUnited States. Legacy Salmon CreekMedical Center satisfied all of thesecriteria,” said Michael Hatten, principalof Solarc. “In addition, the researchteam, and its Northwest EnergyEfficiency Alliance (NEEA) sponsor,

has a longstanding relationship withLegacy Salmon Creek Medical Centerinvolving retro-commissioning andtune-up efforts. This relationshipcontributed to positive communicationand facility support for being involvedin our research effort.”

The study, which was conductedduring a one-month period in January2011, was performed to confirmassumptions about how and wherehospitals in the United States useenergy. The national study, whichreceived funding from the U.S.Department of Energy, through theAmerican Recovery and ReinvestmentAct, and the Northwest EnergyEfficiency Alliance’s BetterBricksInitiative, was conducted in response toa regional study which called intoquestion conventional design andoperation assumptions related to energyuse, Hatten said.

“This kind of detailed data is simplynot available to experts in hospitaldesign, construction and operationsnationally; it is much needed andanticipated by those seeking to develophigh performance hospitals,” saidHeather Burpee, research assistantprofessor with the University ofWashington Integrated Design Lab.

National societies, such as theAmerican Society of Heating,Refrigerating and Air-ConditioningEngineers, along with key engineeringfirms and the U.S. Department ofEnergy, will be able to use the data fromthe study to make more informeddecisions when working with designteams and hospital owners who want tosave energy at their facilities.The resultswill be helpful for both newconstruction and retrofitting.

The University of Washingtonproject team was provided access tobuilding drawings, electricaldistribution systems, facility details anddata on various devices to conduct thestudy at the Legacy Salmon CreekMedical Center, said Pat Lydon,sustainability coordinator for LegacyHealth. Portable data loggers wereinstalled. Extensive trend loggingwithin the hospital’s digital controlsystem was implemented. Data fromthe collection and analysis of electricaland natural gas submeters was archived.And a detailed, fully-calibrated building

Legacy Salmon Creek Medical Center StudyShows How Hospitals Use EnergyBy Kelly LuxExecutive Editor

Page 13: Oregon Facilities Jan-Feb 2012

energy model of the hospital wasdeveloped. Facilities operations staff atLegacy Health worked closely with theproject team to better understand theprocesses of gathering andunderstanding the data collected duringthe study, Lydon said.

“Some hospitals have extensivesubmetering, where they can track andmeasure energy consumption. We don’thave the level of submetering necessaryto provide the level of detail this studyproduced,”Lydon said. “This study gaveus the ability to learn more for ourselveswhere energy is actually being used.”

The study was informational abouthow energy is used at Legacy SalmonCreek Medical Center and generalizeshow energy is used in hospitals acrossthe nation, said Hatten.

“Our participation in this study wasbeneficial since it provided us with amuch deeper level of understandingrelated to energy use in the building,”Lydon said. “This information is usefulto us in tuning our systems foroptimum efficiency and to identify andprioritize additional energy-savingopportunities.”

In the Legacy Salmon Creek study,end uses of fossil fuels, such as centralheating, reheat, potable water heating,cooking, humidification and steriliza-tion, were determined. The end uses ofelectrical systems such as lighting, fanmotors, pump motors, coolingequipment and electric receptacle loadswere also evaluated. Additionally, anumber of miscellaneous end uses wereanalyzed, including elevators, specialtyimaging equipment, compressed air,vacuum pumps, pneumatic shuttlesystem, water purification and freezeprotection.

Findings countered some of theconclusions from the preceding study,said Hatten. The original findingssuggested that potable water heatingaccounted for between 10 and 11percent of the hospital’s annual energyuse. The Legacy Salmon Creek studyindicated that potable water heatingamounted to about 2 percent of theannual energy used. Additionally, theimaging equipment at the medicalcenter uses less energy than had beenanticipated.

Tenant improvements (TIs)

are an important part of any

commercial real estate lease,

but they are especially important for

medical users. Medical TIs are more

expensive and complex and tend to

take longer than non-medical office

space improvements. Hiring a

commercial real estate broker to

negotiate the lease and tenant

improvement package provides

tenants with an expert who can

leverage for the best possible

outcome.

Tenant improvements for non-

medical office space generally fall

between $20 and $40 per square

foot. Medical offices typically

require more extensive work, and

users should expect a significantly

higher cost for TIs. For a general

medical practice, they are likely to

range from $70 to $100 per square

foot, while dentistry TIs can fall

between $100 and $130 per square

foot. These estimates are simply

guidelines; TIs may be higher or

lower depending on factors such as

what shape the space is in and the

quality of finishes desired.

Some needs that are unique to

medical office space are load-

bearing floors that can support

heavy machinery, rooms specially

suited for equipment such as X-rays

and CT scans and higher electrical

capacity to operate these machines.

In addition, medical suites generally

require more extensive plumbing,

especially in the case of dental

offices, along with specific lighting

requirements, which is an important

criterion for cosmetic surgeons and

dermatologists.

While typical office build-outs

will likely take about 30 to 60 days,

medical office build-outs will

generally take longer than

traditional offices. Expect about 10

to 12 weeks for medical space, and

an average of 12 weeks for dental

office space.

Due to the cost of relocating a

practice and performing tenant

improvements, medical tenants

often sign longer leases and stay in

the same space for a longer term

than other office users. So when

signing a medical office lease, it’s

important to think carefully about

square footage. Many doctors add a

partner within five years of opening

a practice, so if this is a possibility, it

makes sense to lease and improve a

slightly larger space than a practice

may immediately need.

Many medical tenants are now

considering retail space for their

offices, as retail spaces may be

conveniently located in high

visibility areas with good signage.

ZoomCare, which has a unique

business model and has quickly

expanded to eight clinics in

Portland, mostly in high-traffic areas

like Hawthorne Boulevard and

Alberta Street, recently opened its

first location outside of the area in

Seattle’s Capitol Hill. While office

leases are typically full service, retail

leases are calculated on a triple net

basis, in which case tenants are

responsible for expenses such as

property taxes, building maintenance

and utilities. So it’s important to take

all costs into consideration when

negotiating a lease.

At the height of the recession,

the office market was unquestion-

continued on page 14 continued on page 14

OREGON FACILITIES JAN/FEB 2012 I 13

Tenant ImprovementPackage a Vital Part ofMedical Office LeasesBy Alexandra Ionescu

Page 14: Oregon Facilities Jan-Feb 2012

ably a tenant’s market. In order to

attract tenants, landlords gave

generous terms, including rent

abatements or larger TI allowances.

The overall economy has improved

since then, but office vacancy in

certain submarkets, especially in the

suburbs, has remained relatively

high. As a result, many landlords are

still offering attractive tenant

improvement packages. But these

concessions will decrease as the

market improves, so it’s a good idea

to start exploring renewal or

relocation options now.

Hire a broker who will do their

due diligence and help guide tenants

through the process. A good broker

has extensive market knowledge and

resources that are not at most

tenants’ disposal and can assist in the

especially complicated tenant

improvement process. And in a

majority of cases, tenant

representation won’t cost a company

anything; landlords generally pay the

fee charged by the tenant’s broker.

With a large population of aging

baby boomers and health care reform

causing many more Americans to

seek medical care, we expect the

demand for medical office space to

continue to increase in coming years.

Medical tenants can ease the process

of finding space and negotiating a

lease, while saving both time and

money, by hiring a broker.

Real Estate

Broker

Alexandra

Ionescu

specializes in

Portland-area

off ice leasing

and sales,

particularly medical space, at NAI

Norris, Beggs & Simpson, a real estate

brokerage and asset/property

management company. Contact her at

[email protected] or

503.273.0314. OF

continued from page 13

It was also discovered that the largestsingle energy user at the hospital wasthe air-reheating equipment. Air iscooled to a common low temperaturethroughout the hospital, and thenreheated to provide comfortable airtemperatures in individual rooms.Opportunities to reduce the amount ofreheating done in hospitals is limitedbut promising, according to a pressrelease from Legacy Health.

“Most of the documented energystatistics are relevant for most modernacute care hospitals across the country,”Hatten said. “We have shared theresults with other hospital energyresearch efforts that are ongoing inparallel to this one.Energy us that is notdependent upon climate can begeneralized across many hospitals.Several interesting results have made forcompelling thinking on the part of

other hospital energy stakeholders.”Currently in the process of

implementing energy efficiencymeasures as a result of a previous study,Legacy Salmon Creek Medical Centerwill continue to evaluate itsmanagement plans to improve itsefficiency, Lydon said.

“Through this study, we canunderstand which measures have thehighest potential for return,” saidLydon. “This study validated the firststudy. It has been a great learningexperience for us. I was aware of thebenefits of tracking energy use at thislevel of detail, but this gave us somehands-on experience with placing dataloggers, and confirmed we could do sowithout creating any disruption toclinical processes. It also confirmed itwas possible for them to remainundisturbed long enough to gather thenecessary data for a useful report.” OF

14 I OREGON FACILITIES JAN/FEB 2012

Legacy Salmon Creek Annual Energy End Use Breakdown:EUI 215 kBtu/sf-yr

Misc. Equipment: 13 PercentInterior Lighting: 8.2 Percent

Fossil FuelReheat: 42.3 PercentPreheat: 3.5 PercentService Hot Water: 1.7 PercentProcess Steam: 6.2 PercentKitchen, Labs, Etc: 1.2 Percent

ElectricHVAC Fans: 10.6 PercentPumps: 5.7 PercentHeat Rejection: 0.2 PercentCooling: 4.2 PercentElevators: 0.7 PercentPlant Med. Equipment: 0.8 PercentImaging: 0.8 PercentKitchen: 0.9 Percent

continued from page 13

Photos courtesy Legacy Salmon Creek

Page 15: Oregon Facilities Jan-Feb 2012

OREGON FACILITIES JAN/FEB 2012 I 15

T he commercial construction

industry has made significant

advancements in using and

understanding the benefits of three-

dimensional modeling in pre-

construction coordination. BIM

coordination can be used in clash

detection and coordination between

trades. Coordination is usually managed

by either a mechanical contractor or

(general contractor, while having the

drafter work collaboratively with a field

electrician on a project team provides

the best opportunity for success.

The BIM model is a template to

build prefab items and assemblies. This

begins early in every project where

prefab opportunities are reviewed for

underground raceways and temporary

power. As the project continues, the

BIM model is used in identifying

prefab opportunities with supports,

raceways, equipment mounting, box

assemblies, panels, fixtures, devices,

labeling and more.

Layout of hangers, sleeves and

inserts prior to concrete pours are

included in the BIM model and

reviewed through clash testing, BIM

surveying and detailing coordination.

Working and installation clearances can

also be worked into the BIM model

through the use of a separate layer, all

while coordinating with subcontractors.

The model is updated throughout the

project life cycle while coordinating

with the project team and other trades

involved. This effort makes it possible

to deliver three-dimensional as-built

drawings to the owner when the project

is completed.

Benefits of BIMThe primary benefit of having a

collaborative model of a project comes

when potential conflicts or clashes can

be managed prior to installation. All

trades have the opportunity to see their

portion of scope overlaid with the rest

of the team. Answering questions and

establishing resolutions before they

impact a project not only saves money

but establishes open lines of

communication that may not have been

forged prior to construction.

When the BIM team coordinator

fails to update the live model for all

trades associated, BIM does not work.

In rare instances, BIM may be managed

incorrectly where issues are not

discussed or caught prior to

construction. This is the result of

undefined expectations and a limited

understanding of the use of the

program. Recovery from

mismanagement may be time

consuming up front, but the benefit of

no further clashes and clear project

planning makes up a major portion of

the cost and time. All parties involved

need to be fully committed to the use of

the BIM model to receive the benefits.

If a project is continued without

recovery of the BIM model, further cost

and schedule delays will occur.

Jeff Harroun and Steve Bryant are

BIM/Cad Coordinators at Oregon

Electric Group. Tom Bergmann assists

with scheduling and planning at Oregon

Electric Group. They can be reached at

503.234.9900 or visit www.oregon-

electric.com. OF

The Evolution andImplementation of BIMBy Jeff Harroun, Steve Bryant and Tom Bergmann

building information modelingProject Profile

Randall Children’s Hospitalat Legacy Emanuel

Randall Children’s Hospitalrecently utilized BIM throughout theentire construction lifecycle. Theproject required a significant effort intime management, particularly fordeliveries and prefab, especially dueto the heavy pedestrian foot trafficand limited site access.

This job required coordination of10 floors as well as undergroundlevels with the mechanical,plumbing, fire sprinkler andpneumatic tube contractors, alongwith the architectural and structuralengineers. Complex conduit routingunder the basement floor to the mainswitchgear, emergency switchgear,automatic transfer switches anddistribution panels, avoidingunderground plumbing and concretefootings, were modeled into theprogram. From there, massiveconduit racks, busway runs, andcable tray were modeled tosometimes share rack with plumbingor mechanical pipe, while avoidingconflict with any other trades.Placement of support racks withinthe model, including threaded rodand seismic support, allowed a vastnumber of pre-fabricated rackassemblies, as well as pre-placementof support anchors in the ceilings.Each floor’s electric rooms includedsets of stacked transformers, withsteel support racks which were alsoprefabricated. The electricians on siteused their laptop computers and thefinished models to facilitate theirinstallations, following their conduitruns through the model to clarifyexactly how everything piecedtogether.

The finished product ended uplooking similar to the BIM model.The BIM model contributed to theoverall safety of the site throughimproved communication amongtrades. Having a positive buy-inattitude resulted in fewer clashesamong trades and enhanced timemanagement.

Page 16: Oregon Facilities Jan-Feb 2012

16 I OREGON FACILITIES JAN/FEB 2012

A Complicated Study in Typical Challengesat St. David’s Episcopal ChurchBy Jonathan Cohen

L ike many non-profit owned

facilities that do not have

enough funds to go around,

spending money on improvements is

often a difficult choice to make. Many

buildings, like St. David’s Episcopal

Church in Southeast Portland, are 60

to 80 years old – not quite old enough

to have changed a major HVAC

system. As a result, there is an

antiquated, poorly-operating original

system, with many, many undocu-

mented scabs and improvements

installed over the years.

St. David’s had many problems

other than its age. The church rents

out all of the space, not just for

religious services and events, but also

for community groups, day care and

small non-profits. As such, there are

disparate comfort needs and a

complicated weekly schedule. Making

the rooms comfortable in time for

events without slurping too much

energy is a challenge for the staff. And

how does the building shell fit into this

situation? Is it working with the

HVAC system, or against it? The result

is a frustrating situation for the staff,

with no clear answers as to how to

address severe comfort, controls and

energy efficiency problems.

Unknotting the IssuesGetting caught up in the challenges

and complaints can be easy for the

staff, who will want to lunge at the first

problem – the giant, old, oil-burning

boiler. But stepping back and

attempting to sort out and untangle

the various issues is an important step

before taking action. It requires an

engineering approach.

A simple energy audit, examining

the layout of the HVAC system,

controls and building shell, was

performed at St. David’s. Here’s what

was found:

HVAC: An original 1950s

steam/hot water boiler with an oil

burner upgraded in the 1980s. The

boiler connected to 10 hydronic fan

coils throughout the building. Some

zones had pumps per units, others have

one pump for multiple air handlers.

Thermostatic controls were basic.

Room thermostats sent signals to

thermal-mechanical mixing controls,

which reduced temperature of water to

air handlers. Pumps and fans

continued to run, despite satisfied

stats. Duct distribution was decent

with fresh air intake controls. There

were duplicate, mislabeled controls,

with separate pump and fan switches

in the boiler room, plus breakers and

duplicate switches in the upstairs hall.

Building Shell: The building is

about 25,000 square feet with a full

basement and a single-story brick

facade (with concrete block) and fixed

single pane glazing with wood frames.

The walls, basement and attic were not

insulated. Evidence of significant air

leaks was present.

Electrical Consumption: Lights,

domestic hot water, plug loads, HVAC

fans/pumps and kitchen appliances all

ran off electricity. The baseload was

high with no clear cause.

SolutionsEnergy Cost: Current annual oil

costs were more than $12,000, even

with oil averaging $2.50 per gallon. In

previous years, it had peaked at more

than $4 per gallon and required

Before (Average)Energy Usage Before:4,800 gallons per year of heating oil

Energy Costs Before:$12,000/year average (last four years,$2.50/gallon average price, but up to $4/gallon)

Carbon Footprint Before:53.4 tons of CO2 emitted per year

After (Predicted)Energy Usage After:5,088 therms per year of natural gas

Energy Costs After:$5,500/year average ($1.12/therm current price,as high as $1.4/therm two years ago)

Carbon Footprint After:0.33 Tons of CO2 emitted per year

ReductionsEnergy 24 Percent Reduction / Costs 54 Percent Reduction / Carbon 99.4 Percent Reduction (Wow!)

Page 17: Oregon Facilities Jan-Feb 2012

OREGON FACILITIES JAN/FEB 2012 I 17

constant gaming (What time to buy in

the season? When to fill the tank?) to

get a good deal in the volatile market.

Besides obvious low boiler efficiency,

fuel choice was the problem. Switching

to natural gas would easily half fuel

costs, if not more. Upgrading to a new

natural gas furnace would solve

combustion losses of the old oil burner,

as well as take advantage of the low

natural gas costs. Controls would

follow.

High electrical costs stemmed from

the HVAC system controls, which

operated the pumps and fans 24/7, 365

days a year. A new control system

would be necessary to reduce energy

consumption, provide finer control and

better scheduling.

Most building shell improvements

are difficult to access, so not cost-

effective, except for the attic. R-30

closed-cell spray foam could easily be

applied to the majority of the attic

(except for the vaulted chapel),

providing air sealing and insulation

benefits. Savings were estimated at 10

percent.

Comfort and Controls: The

system consisted of a decently

arranged duct system with no ability to

individually control half of the existing

fan coils, which are all on the same

circuit, except with crude mixing valves

or manually shutting off controls in

the hall. A new control system would

allow each fan coil to be shut off

individually, preventing cool air from

blowing and reducing base electrical

loads substantially. Due to the size of

the building, wireless, seven-day

programmable thermostats were

selected. Despite the heavy

construction, the wireless Honeywell

system worked flawlessly across 100

feet. New hydronic zone controls

actuated each pump and fan upon a

thermostat call. The ability to program

allows for better scheduling of events

and comfort.

Mixing valves were disabled and

fresh air controls were left as is. The

old (more-than-two ton) boiler was

cut up with a torch and removed.

Asbestos insulation was abated. New

permanent labeling, manuals and

documentation eliminated confusion

from the old system.

The engineering approach was to

understand the existing goals and

conditions, and then implement

improvements in stages to achieve the

goals of a more comfortable, efficient

building. A complicated problem was

solved.

Jonathan Cohen is an engineer andprincipal at Imagine Energy, LLC, thecontractor and consultant at St. David’sEpiscopal Church. Cohen can be reachedat [email protected] or503.477.9585. OF

energy management

Page 18: Oregon Facilities Jan-Feb 2012

A renewed focus on integrating

green technology such as

rooftop photovoltaic (solar)

panels, wind turbines and vegetative

roofs onto new and existing buildings

has been driven and largely funded by

the federal government to reduce the

nation’s carbon footprint and increase

focus on clean renewable energy.

However, with ROIs that can push out

20 years or more, it is simply not

financially feasible for building owners

to incorporate these types of green

technologies.

Fortunately, several affordable and

environmentally-friendly methods,

materials and technologies can be

utilized. Many of these are simple

specification or material adjustments

that can save money on the installation

cost as well as future utility,

maintenance and replacement costs.

RecycleAlmost all materials used in

commercial roofing can be recycled.

While the technology exists to recycle

these materials, the location of the

recycling centers are far and

inconvenient, which can make the

separation and transportation of waste

materials costly.

However, some materials separate

and transport easily and can save in the

cost of paying for disposal containers

and landfill fees. Most single ply

membranes are recyclable and easy to

remove and transport. Lightweight

membranes can be folded or rolled and

strapped down to a flat bed truck,

making it easy to transport large

quantities and minimizing the cost of

transportation. Other lightweight,

recyclable materials like foam plastic

insulation can also be easily and

efficiently transported.

This economy of scale is only

applicable with large re-roofing

projects that will produce enough

recyclable material to fill a flat-bed

truck. Partial loads can be arranged as

well, but the cost of transportation is

excessive when compared to the cost of

disposal.

ReuseReuse the materials on a roof that

are still in good condition and won’t

affect the performance of a new roof

system. IBC (International Building

Code) allows for up to two roof

systems to be installed on a

commercial building. Thus a new roof

can be installed over an existing roof

and retain the existing R-Values, vapor

barriers and roof slope.

Obviously, if areas of insulation

have become wet or damaged in some

way, they will need to be removed

before installing the new roof.

Technology, such as infrared cameras,

can locate specific areas of wet

insulation, which can then be marked

and replaced prior to re-roofing. A

new cover board can be installed, along

with a new roof membrane with the

same performance and warranty as a

roof that was removed and then

replaced with new components.

The cost savings in this scenario

can be substantial. Consider replacing

a roof on a 100,000 square-foot

warehouse with an R-Value of 21 in

rigid foam polyisocyanurate insulation

(approximately 3.5 inches). To remove

this entire roof system to the roof deck

and install new insulation and

membrane would cost at least

$200,000 more than if this system

were to be overlaid with a new cover

board and roof membrane. Obviously,

local costs for tax, disposal,

transportation and labor would

contribute to the price.

Cool RoofsCool roofs in commercial, low slope

applications are those with a solar

reflectance value of 0.65 or higher

when new. That means 65 percent of

the sun’s total radiant heat energy is

reflected back into the atmosphere,

Save Money and the Environment withInexpensive Roofing OptionsBy Christopher Sonnenberg

18 I OREGON FACILITIES JAN/FEB 2012

Page 19: Oregon Facilities Jan-Feb 2012

rather than being absorbed by the

building. Cool roofs primarily

accomplish two things: substantially

reduce the amount of energy needed

for cooling and reduce peak electrical

demand by an overall 10 to 15 percent.

Cool roofs reduce the urban heat

island effect caused by heat-absorbing

infrastructure that raises urban

ambient temperatures and creates an

inversion, which traps air pollution and

creates smog.

Most manufacturers have created or

enhanced viable roofing membranes

that are Energy Star rated and

economical. Some roof membrane

systems also include 25- to 30-year

warranties.

Some conditioned buildings can

experience a 20 to 30 percent savings

in energy costs by simply switching

from a non-reflective to a cool roof

membrane. This can be enhanced with

rebates or incentives provided by state

and city governments and local utility

companies. Most of these incentives

need to be applied for before the

project begins.

DaylightingDaylighting, the use of natural light

to illuminate the interior space of a

building, is now a popular way for

building owners to save energy and

money and increase worker

satisfaction, sales and productivity.

Prismatic skylights refract the sun’s

rays into thousands of tiny micro

sunbeams, diffusing the direct sunlight

into a softer, brighter light. Building

owners can reduce their electrical

lighting requirements by as much as 70

percent when using prismatic skylights

in as little as 4 percent of the roof

surface.

Light sensors and lighting controls

often allow enough light to enter the

building through the prismatic

skylights, eliminating the need for

artificial lighting during most of the

day. This can make a substantial

impact on utility bills for the building

user, often yielding ROIs in less than

two years. With effective material life

spans matching that of commercial

roof systems (20 years or more), the

savings add up and the amount of

carbon emitted is reduced

substantially.

Christopher Sonnenberg is the senior

project manager for CentiMark

Roofing’s Portland branch. He has

worked with CentiMark in the

commercial roofing industry for more

than 12 years and is responsible for all of

Oregon and Southern Washington. OF

OREGON FACILITIES JAN/FEB 2012 I 19

roofing

Page 20: Oregon Facilities Jan-Feb 2012

Oct. 14, 2011, warrented some

good news for birds.The U.S.

Green Building Council

introduced a pilot bird-safety credit to

its Leadership in Energy and

Environmental Design (LEED)

library. The credit is the latest (and

probably the most trend setting) move

to reduce the incidence of birds

colliding with building windows, an

occurrence that kills up to one billion

birds every year.

Most people have heard the

distinctive thud of a bird hitting a

window or have found a stunned or

dead bird under a window. Birds

misinterpret reflections of sky and

vegetation as a continuous flight path.

In other cases, birds are fooled by

windows meeting at corners or closely-

spaced windows (think sky bridges)

that appear to allow an unobstructed

fly-through. With vast improvements

in energy-efficient glass, the use of

glass as a building material has

increased, resulting in far greater

collision risk. In fact, the percentage of

unmarked glass on a building face is

the strongest predictor of its strike rate.

However, don’t assume this credit is

going to steer architectural trends

toward windowless warehouses. On the

contrary, pilot credit 55 directs

architects and designers to types of

window materials that have been tested

and rated for their visibility to birds.

Good design solutions can include

patterned window glass, opaque glass,

exterior screens, shutters and louvers –

anything to create visual noise that

alerts birds to the presence of a barrier.

The credit divides buildings into

higher and lower risk zones. Higher

risk zones must achieve a lower Bird

Collision Threat Rating than the lower

risk zones. Areas considered high risk

include the first three floors above

ground level, the first floor above an

eco-roof and all windowed corners or

fly-through conditions. The building

must also develop a three-year

effectiveness monitoring program.

In addition to a façade treatment

and monitoring, the credit requires that

overnight lighting be designed to

minimize light spill from both interior

spaces and exterior fixtures. Abundant

evidence suggests that birds are

attracted to light. Many songbirds are

night migrants, reliant on celestial cues

to guide them on their precarious

seasonal journeys. Lit areas can dilute

these critical navigational cues and lure

birds in, especially on overcast nights.

Some birds may strike buildings

outright. Some circle buildings until

they drop from exhaustion, where they

face myriad other threats, including

deceptive daytime window reflections.

Birds are not the only species

impacted by windows and artificial

light. Research into ecological light

pollution has revealed that the

carefully-timed, long-evolved life cycle

activity of mammals, amphibians,

20 I OREGON FACILITIES JAN/FEB 2012

LEED Adds a Bird Safety CreditBy Mary Coolidge

Page 21: Oregon Facilities Jan-Feb 2012

OREGON FACILITIES JAN/FEB 2012 I 21

insects and plants are also impacted by

artificial lighting schemes. The new

bird-safety credit addresses the hazard

of light pollution by requiring

properly-shielded fixtures, as well as

establishment of manual or automatic

shutoff programs from midnight to 6

a.m. (Safety lighting is exempt.) The

credit is synergistic with other LEED-

spirited goals. It minimizes waste of

electricity (and money), helps to reduce

carbon emissions, minimizes impacts

to wildlife and preserves our age-old

cultural heritage of stargazing.

To date, 22 cities in the United

States have initiated Lights Out

programs, in which building owners and

managers are asked to reduce

unnecessary overnight lighting to

minimize sky glow. For more

information on the Lights Out Portland

program, visit audubonportland.org.

This new LEED credit dovetails

well with a number of other existing

programs. Numerous municipalities

have produced bird-friendly building

guidelines, including San Francisco,

Chicago, New York City and Toronto

and the state of Minnesota. American

Bird Conservancy has now developed a

template that updates and universalizes

guidelines for use in any city. Guidelines

can be found at www.abcbirds.org/

newsandreports/BirdFriendlyBuilding

Design.pdf

Portland may be the first to use the

ABC template. In 2003, Portland

became one of seven cities to pledge

ongoing stewardship of their urban

bird populations when it signed a U.S.

Fish and Wildlife Service Urban Bird

Treaty. Under a Challenge Grant to

reinvigorate the program, Audubon

Society of Portland and the City of

Portland will draft its own voluntary

Bird Friendly Building Guidelines.

Bird safe volunteers have been out on

the streets, tracking collisions for five

seasons now at a small sampling of

buildings in Portland. Audubon’s

Wildlife Care Center brings in 200

window-strike victims per year.

The establishment of the Bird

Collision Deterrence credit demon-

strates the USGBC’s commitment to

expand the standards of its green

building program to include

ecosystem-level considerations in its

rating system. After all, environ-

mentally-friendly buildings should also

be safe for birds and wildlife.

Developers and architects who use the

new credit will be at the leading edge of

exciting and truly innovative

architectural trends.

Mary Coolidge is the assistant

conservation director for the Portland

Audubon Society. She can be reached at

[email protected] or

503.292.6855. OF

pest control

Page 22: Oregon Facilities Jan-Feb 2012

22 I OREGON FACILITIES JAN/FEB 2012

Three rural Oregon SchoolDistricts, Days Creek,Estacada and Oakridge,celebrated the unveiling ofnew biomass boilersdesigned and installed byMcKinstry, a leader in energyinnovation and integratedconstruction services. Theinstallations represent not onlyguaranteed energy cost savingsfor the districts, but a boost tostate and local economies as well.

The three school districts replacedaging, inefficient systems with theresource-efficient biomass boilersystems, which are estimated tosave an average of $27,000annually. These savings wereutilized as part of a uniquefinancing model, which leverageda combination of grants, taxcredits and bonds to ensure theprojects were budget neutral foreach school district.

Estacada received a $450,000dollar ARRA grant, Oakridgereceived a $235,000 State EnergyAward, and Days Creek was thefirst school district in Oregon toreceive an Energy Trust of Oregonincentive.

“McKinstry’s energy performancecontracting model has thepotential to be a real game-changer in Oregon. We go aboveand beyond for school districts bynavigating all the complicatedfunding sources so they can makethese great investments on limitedbudgets,” said Tom Konicke, wholeads the Energy and FacilityServices team for McKinstryOregon.

The boiler installations alsoemployed local contractors in thecommunities of Estacada, DaysCreek and Oakridge, and thesystems themselves were

produced in Oregon by SolaGen,a St. Helen’s-based company. Thewoody biomass fuel will also besourced locally from BearMountain Forest Products inBrownsville. This type of localsupply chain has been heraldedby Oregon Gov. John Kitzhaber,and he applauded thepartnerships that McKinstry hasforged around the state.

“McKinstry’s work in our schooldistricts is a model that can helpput Oregonians back to work inevery part of the state,” saidKitzhaber. “These projects saveenergy, create good, local jobs,and help ensure that we provide agreat education to the nextgeneration of Oregonians. This ishow we foster a great future forthis state.”

A stable outlook was givenin the NAI Norris, Beggs &Simpson Third Quarter 2011report for office industrial, retailand multifamily commercial realestate issued in October.

Central City office vacancy roseslightly to 12.88 percent during thethird quarter, with a number of salesof older downtown buildings,including the Medical DentalBuilding and the CommerceBuilding (now called BroadwayCommons). Suburban officevacancy fell slightly to 23.2 percent.Vancouver vacancy fell significantlyto 14.37 percent, withPeaceHealth’s lease at ColumbiaCenter at Columbia Tech Centeraccounting for 162,000 square feetof positive absorption.

The industrial market saw significantimprovement during third quarter, asvacancy fell more than two

BRIEFLY

Page 23: Oregon Facilities Jan-Feb 2012

OREGON FACILITIES JAN/FEB 2012 I 23

percentage points to 14.35 percentand 916,859 square feet wasabsorbed. Many of the large leasesthat were signed had long been inthe works, including SoloPower’s225,250 square-foot lease at MarineDrive Distribution Center.

Retail vacancy remained fairlystable at 6.38 percent. Much of thenegative absorption of the quartercould be accounted for by theclosures of four local Bordersstores, all at around 25,000 squarefeet.

The multifamily market remainshealthy, with just 2.78 percentvacancy, and rental rates have risensignificantly year over year.Institutional investors remain activeplayers in the marketplace, primarilyseeking Class A core properties.Development activity should pick upin 2012 and 2013.

For full reports, visitwww.nai-nbs.com.

NBS Real Estate Capitalhas relocated offices andchanged its name toMorrison Street Capital.NBS Real Estate Capital wasfounded in 2002 by CEO RanceGregory and Norris, Beggs &Simpson. Ownership of the firmremains unchanged. The namechange will eliminate confusionbetween the original name and theMorrison Street series of fundsmanaged by the company. Manyof the firm’s investors arerepresented by institutionalinvestment consultants who arefamiliar with the Morrison Streetname and the change will simplifycommunication going forward.

Morrison Street Capital acts as theinvestment manager of the

Morrison Street series of funds,which invest in commercial realestate through the use of a varietyof investment structures includingequity, preferred equity,mezzanine debt, B notes andcommercial mortgage backedsecurities. The primary producttypes include office, retail,industrial and multi-family assets.As a direct owner, the companyinvests in Colorado, Oregon,Washington California, Utah,Nevada, Idaho and Arizona. As alender, the company prefers thosesame target markets butoccasionally invests nationwide.

Remaining active since the creditcrisis emerged, in just the pastthree years, Morrison StreetCapital has completed 43transactions involving $101.8million of equity and totaltransaction value of $399 million.Over the past nine years, MorrisonStreet Capital has completed 78transactions involving $207.4million of equity and totaling morethan $868 million in totaltransaction value.

WoodWorks, a cooperativeventure of major NorthAmerican woodassociations, recentlylaunched an onlinecalculator that allows users tocompare the building or shellconstruction costs of wood vs.non-wood buildings. Developed inpartnership with RSMeans, thetool allows users to select abuilding type and location, thendraws on data that is updatedquarterly to provide a current costcomparison. The calculator isavailable at www.woodworks.org,under the Resources tab.

“This is an important tool forarchitects, engineers, developers,builders and anyone who wants tobetter understand the costimplications of different buildingmaterials and designs,” saidDwight Yochim, national director ofWoodWorks. “Wood constructioncan save a project money in a lotof ways – from material costs tospeed of construction to theavailability of a large andcompetitive labor pool. Nowdesign and building professionalshave access to a tool thatprovides instant, current examplesof the cost of wood buildings.”

For example, the calculator showsthat using wood to construct theshell of an average one-storyschool in the United States saves21 percent in construction costsas compared to an aggregate ofother materials while overall costsare 3 percent less. This examplewas reinforced with construction ofthe new 320,000 square-foot ElDorado High School in Arkansas,where designers saved $2.7million by changing from a steeland masonry design to woodconstruction.

Those who want a more detailedanalysis can visit RSMeans atwww.rsmeans.com for additionalcosting tools. In addition to thecost calculator, WoodWorks willsoon release a carbon calculatorthat estimates the carbon benefitsof wood buildings. This includesthe amount of carbon stored in thewood products and greenhousegas emissions avoided by notusing steel and concrete.

To use the cost calculator andlearn about other WoodWorksresources, visitwww.woodworks.org.

Page 24: Oregon Facilities Jan-Feb 2012

24 I OREGON FACILITIES JAN/FEB 2012

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

CHANGE SERVICE REQUESTED