arizona facilities february 2011

IN THIS ISSUE: Office Market OutlookArizona

FEATURING:

February 2011

4 I ARIZONA FACILITIES FEBRUARY 2011

Tough competition for occupancy and an absence of construction are

factors that are shaping the commercial real estate market across the

country, as well as in Arizona. Tenants are taking advantage of the

down economy, looking for and buying into higher quality space at

lesser lease rates. Construction is virtually nonexistent in the state as

builders and lenders wait for vacancies to drop. Experts are predicting

little change in 2011 but are hopeful that stabilization will occur in the

market within the year and through 2012.

Stagnancy may bring a sigh of relief to some building owners who

were expecting a crash in the commercial sector similar to the crash in

the residential sector. However, a dormant economy offers its own set

of challenges: high unemployment rates, excess inventory and lending

restrictions. Unemployment will continue to be a drain on the

economy in the upcoming year. The glut of vacant space will take

several years to absorb, with empty storefronts and offices continuing

to take a toll on the industry. And banks will continue to face

regulatory pressure in lending as they work to clean up the aftermath

of the Great Recession.

Building owners, property managers, builders and developers do have

some options while weathering this storm. More than arbitrarily

cutting budgets, property managers can create asset value by increasing

revenue, decreasing expenses, managing vacancies, retaining tenants

and improving their company’s performance. By implementing these

strategies, property managers may maintain and possibly increase their

net operating income despite the economy.

Hopefully, 2011 will mark the real end of the Great Recession, and

the economy will start to recover by 2012. And those who are left

standing will reap the benefits of strengthening their business during

these challenging times.

CONTACTPublisherTravis [email protected]

Managing EditorKelly [email protected]

Editorial AssistantBrooklyn [email protected]

Art DirectorDoug Conboy

Contributing Writers

Managing EditorArizona Facilities

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

Copyright 2011 Arizona Facilities Magazine. Arizona Facilities is a Trademark owned by Jengo Media.

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

EDITOR’S LETTER

Arizona Facilities is a proud member of BOMAGreater Phoenix and BOMA Greater Tucson.BOMA Arizona is a federation of both localassociations and serves as the collectivemembership’s legislative and regulatoryadvocate. Arizona Facilities is also aBOMA National Associate member.

Jacob FullmerNick DavisonMark StrahanDan RussellQuinton

Lamoreaux

Dean KashiwagiJacquie BrennanJustin HimelsteinChris WaltonAl O’ConnorRuth Darby

6

14

26

Building Information ModelingSave on time, materials

Vendor RelationsPutting vendors in charge offacilities management

Office Market OutlookPhoenix will remain a tenant’s market

On the cover:Downtown Tucson. Courtesy Chance Agrella of TucsonRegional Economic Opportunities, Inc.

DEPARTMENTS

FEBRUARY 2011

FEATURES

2024

30

4

1822

28

1713

32

33

Editor’s LetterSmart options during the recession

Building MaintenanceLife cycle costs important in repairs, upgrades

BOMA Greater Tucson

Alternative EnergySolar tax incentives

BoilersNew technology enhancessustainable buildings

Healthcare FacilitiesNew emergency call and life safety technology

Building ControlsControl systems keep buildings green

Property ManagementStand out in a tenant’s market to fill vacancies

Sustainable pruning practicesfavor health, life of shrubs

Tucson Development: Commercial growthdriven by ‘game-changing’ projects

Phoenix International Raceway:It ain’t over ‘til the checkered flagcomes down

ARIZONA FACILITIES FEBRUARY 2011 I 5

Tucson Development: Commercial growthdriven by ‘game-changing’ projects

26

Sustainable pruning practicesfavor health, life of shrubs

Phoenix International Raceway:It ain’t over ‘til the checkered flagcomes down 14

6


By Kelly Lux

Despite the slump in

the economy, Tucsonis seeing growth and

development within itscommercial real estate market,albeit slight. Occupancy ratesare holding steady. Absorptionis expected to remain positive.And a few major projects inthis southern Arizona city aredriving the majority of thedevelopment.

“The good news is that theworst is behind us and recoveryhas begun,” said Tim Prouty,managing director of CBRichard Ellis Tucson. “Yet, Tucson'scommercial real estate market isexpected to bounce along the bottomfor another year. Occupancies, ingeneral, will hold steady andabsorption, albeit nominal, will remain

positive. This stability leads Tucson's

commercial markets to a stronger

footing than many other cities.”

The major projects in Tucson, like

the construction of the UniSource

Energy Building and the extension of

the modern streetcar, areplaying a huge role in thedevelopment of the area,according to Michael Keith,CEO and executive directorof the Downtown TucsonPartnership.The four-mile modernstreetcar, which will extendwest of I-10, has a variety offunding sources, includingthe Regional TransportationAuthority and a $63 millionfederal TIGER. Thestreetcar will be co-managedby the RTA and the city of

Tucson. The project “will literally laythe groundwork for future developmenton the west side of downtown,” wroteTucson City Manager Mike Letcher.The streetcar will connect theUniversity of Arizona to the 4th

Vacancy RatesVacancy Rates Industrial Office Retail

YE2006 5.9% 11.9% 7.5%YE2009 11.7% 16.8% 11.9%3Q2010 11.6% 17.3% 12.2%

Asking Lease RatesAsking Lease Rates Industrial* Office** Retail*

YE2006 $6.96 $22.25 $18.08YE2009 $6.36 $20.57 $18.993Q2010 $6.41 $19.35 $17.93

*NNN **Full Service Gross


Photo courtesy of Chance Agrella/Tucson Regional Economic Opportunities, Inc.

Avenue commercial district, downtown

and the redevelopment area west of

downtown and become a big economic

driver in the city.

The UniSource Tower is the largest

project going on in downtown Tucson

and is expected to be complete by

November 2011. The $65 million

building will house Tucson Electric

Power and will also have retail and

conference space. The project will

increase the employee population of

downtown Tucson, bringing with it

economic revenue as employees lunch

and shop in downtown, said Jessie

Sanders, a project coordinator for

Tucson City.

Tucson's growing bioscience

industry has also spurred growth in

the commercial real estate market in

Southern Arizona. Sanofi-aventis

recently completed its 110,000

square-foot facility which houses its

new research center. The Roche

Group will boost the industrial market

with the recently announced $180

million, 500-job expansion of its

existing Ventana Medical Systems

operation in Oro Valley.

Other notable commercial projects

include the Mercado District of Menlo

Park, an urban residential

neighborhood with live-work homes

and retail and restaurant space, and the

Gadsden Development, which is

planned to include an 125-room

boutique hotel, 400 residential units,

office space, a market, restaurants and

other commercial development.

Retail is seeing the most activity inthe area, with a number of national retailand restaurant chains expanding in theTucson market, locating in mature,high-traffic areas at attractive rates,Prouty said. As one of the larger retailtransactions in Tucson, the MercedesDealership is relocating from its oldfacility to a new one, Sanders said.

These “game changers” are helpingproperty and building owners see abright future and are spurring otherpockets of development in the area, saidKeith, who believes that “Tucson isabsolutely booming despite the worsteconomic climate in 100 years.”

Commercial tenant improvementshave been on the upswing in Tucson.Businesses are looking for inexpensiveways to improve their spaces withouthaving to relocated, Sanders said. Morethan 64 commercial permits for tenantimprovements and new constructionprojects were issued by the city ofTucson Planning and DevelopmentServices Department in November2010, with a total project dollarvaluation at more than $24 million.

The tenant improvement projectswill be significant for the office marketwhere several major tenants areshopping for more quality space atequivalent lease rates, Prouty said.

“Tucson is going to be the next hotspot in the West,” Keith said. “Peoplewho live here aren't going to recognizetheir own town in two years.”

Industrial1. Highland Valley Partners, 6874 S.

Palo Verde Road, 162,478 SF2. Schletter, Inc., 3761 E. Farnum

Place, 65,000 SF3. TMI Acquisitions, 1625 S. Euclid

Ave., 42,500 SF4. Maracana Indoor Soccer, 555 E.

18th Street, 28,500 SF5. Lasertel North America, 7775 N.

Casa Grande Highway, 21,265 SFOffice1. Tucson Electric Power, One S.

Church Ave., 36,320 SF2. Drug Enforcement Administration,

3285 E. Hemisphere Loop,30,630 SF

3. Government ServiceAdministration, 2255 W. InaRoad,19,873 SF

4. Tucson Heart Hospital -Carondelet, 4892 N. StoneAve.,18,976 SF

5. Homeland Security/Customs &Border, 4720-4760 N. Oracle Road,12,580 SF

Retail1. Beaudry RV, 5120 S. Julian Drive,

55,000 SF2. Ross Dress For Less, 18705 S.

Frontage Road, 30,187 SF 3. Orangewood RV, 4710 S. Palo

Verde Blvd., 28,500 SF4. Big Lots!, 18705 S. Frontage

Road, 28,074 SF5. 99 Cent Only Store,4144 N. Oracle

Road, 20,040 SF Tables Source:CBRE Research and CoStar Group

Largest LeasingTransactions in 2010

More Tucson Storiescontinued on page 8


Nearly a decade ago, bioscience

was recognized as an industry

that was poised to grow in

Arizona and benefit the state's economy.

In Southern Arizona alone, 130

bioscience companies have been recently

identified, ranging from small to large

businesses in a variety of bioscience

areas. The University of Arizona, a top

15 research University, played a

significant role in “driving innovation

and discovery,” said Leslie Tolbert, vice

president for research graduate studies

and economic development for the

University of Arizona.

In 2008, Roche, a pharmaceutical

giant, bought Ventana Medical

Systems, a Tucson-based company.

Before that, sanofi-aventis, another

pharmaceutical giant, had purchased

Selectide. Both of the young

companies were spin out of the

University of Arizona by faculty, said

Tolbert.

“Now two of the world's largest

pharmaceutical companies have

facilities right here in Arizona,

employing many hundreds of people.

That's an amazing accomplishment for

Tucson,” Tolbert said. “We clearly are

developing an eco-system for bio

innovation and serious research and

development. ”

Bioscience remains a growing

industry in the Tucson region with the

announcement of a $180 million-

expansion of Ventana Medical

Systems, the recent relocation of the

sanofi-aventis research center to a new

facility and the expansion of the

University of Arizona's BIO5 Institute

into a new BIO5-Oro Valley Facility.

All of these three major bioscience

entities are now located in Oro Valley,

a suburb of Tucson.

The recent addition of bioscience

realty to Innovation Park in Oro

Valley, a biotech hub for Pima County,

will significantly impact Tucson's

economy with Ventana alone bringing

in 500 jobs and $640 million in

economic impact, said Laura Shaw,

senior vice president of marketing and

communications for Tucson Regional

Economic Opportunities, Inc.

“Because of Tucson's strengths in

scientific research, coupled with a

healthy, growing presence of the

industry, we are an emerging

bioscience center and a global hub for

bioscience innovation,” said Shaw.

“The Tucson region has much to offer

any company looking to excel in the

bioscience industry.”

More than $6 billion is produced

annually from the bioscience com-

panies in the area. The University of

Arizona has $600 million in research

dollars, said Tolbert. The University

and Pima Community College, with

more than 20 academic and technical

life science programs, generate a

young, educated workforce and first-

rate training opportunities, she said.

Cutting-edge facilities, such as the

Critical Path Institute, a unique

collaborative whose mission is to

create innovative partnerships in

regulatory science that enable faster

and safer medical product

development, also contribute to

Tucson's standing in the bioscience

industry.

sanofi-aventisSanofi-aventis relocated to its new,

110,000 square-foot facility in

Innovation Park in June 2009. The

growing company, which had been

present in Oro Valley for two decades,

decided to purchase land and

construct a new research center since

no laboratory space was available in

the area. The 11.54 acres for the

facility were purchased in 2006, and

construction began in 2008. DPR

Construction, Kling Stubbins/RSP/

WLB Design Consultants, Genesis

Engineers, Sun Mechanical and

Commonwealth Electric were all

instrumental in the construction of

the facility.

“The facility enables our local

scientific team to enhance the center's

impact on the early stages of the

sanofi-aventis drug discovery pipeline

by laying down the foundation for

bringing new, effective medicines to

patients around the world,” said Early

to Candidate Biologist Mark Pincus.

With nearly 48,000 square feet of

laboratories, and more than 25,000

square feet of office space, the state-of-

the-art facility is nearly double the

company's former building on Hanley

Boulevard. The energy-efficient

research and development facility

promotes interdisciplinary and

scientific exchange and utilizes

operational efficiencies. With offices

on one side of the building,

laboratories on the other side and

common space in the middle, the

building and its systems are easy to

maintain, said Pincus. A chilled beam

system, the first in a sanofi-aventis

building in the United States, was

installed to cool the building

efficiently, one of many energy-

efficient measures taken in the

construction of the building.

The building was designed to

achieve Leadership in Energy and

Environmental Design Gold from the

U.S. Green Building Council and will

likely receive the recognition in

January 2011, said Pincus. The

laboratory consumes 21.5 percent less

energy than a conventional lab

building. The site lighting

reduces the effect of light

pollution. The landscape

irrigation system was designed to

reduce water use by 50 percent. The

urinals are all waterless. Heat recovery

was used on the laboratory exhaust to

reduce energy consumption.

Evaporative cooling was installed,

taking advantage of Tucson's dry

climate. A solar hot water preheat

system was installed on the mechanical

heating hot water system. Low-

emitting products were used

throughout the construction. Overall,

sanofi-aventis reduced the facility's

carbon footprint by approximately 2.3

million pounds.

The BIO5 Institute-Oro ValleyWhen sanofi-aventis moved to its

new facility, the company vacated a

fully-operational research facility. The

BIO5 Institute, a thriving research

institute at the University of Arizona,

recognized an opportunity to expand

their operations to Oro Valley and

collaborate with other bioscience

companies in the area and purchased

the 23-year-old building. BIO5, which

brings together faculty from

agriculture, medicine, pharmacy,

science and engineering, had been

running out of lab space on campus

and needed a place to move some of its

projects, particularly the project led by

professor Chris Hulme who is working

continued on page 10


sanofi-aventis’ new facility in Oro Valley. Photo by Mark Pincus.

Ventana Medical Systems will be expanding its facilities in Oro Valley.


to find chemical compounds for the

treatment of illnesses including cancer,

Alzheimer's and heart disease.

“When sanofi-aventis built their

new facility, they left behind a smaller

building that was beautifully outfitted

for drug discovery,” said Tolbert. The

University of Arizona purchased the

building for $3 million, well below the

actual worth of the facility. “It wouldn't

have sold for $3 million if the Tucson

and Arizona economies were doing

well. And we probably wouldn't have

been able to afford it.”

The 27,000 square-foot facility at

1580 E. Hanley Blvd. comes fully-

equipped with laboratory facilities,

office space and equipment needed for

chemistry labs. The University had to

make only a few minor upgrades and

renovations, totaling $800,00, before

moving two BIO5 teams to the facility,

Tolbert said.

“It was so well outfitted for this

kind of research that what we had to

do was quite minor,” she said. “We

spruced it up with a few renovations in

the laboratory.”

The University of Arizona, which

manages numerous research facilities

across Arizona, is well-equipped to

manage the new facility, Tolbert said.

BIO5 will be providing administrative

support for grants and managing the

operations and maintenance of the

building. Rather than having a

maintenance crew, maintenance issues

will be handled by University staff as

they arise.

BIO5-Oro Valley will concentrate

and streamline the University's drug

research efforts, according to Tolbert.

The Arizona Drug Discovery Center,

the College of Pharmacy, Arizona

Cancer Center and researchers from

the College of Science will all be

housed in the building. The facility

will also have incubator space available

for start-up companies. Initially, the

building will be home to 50-75

researchers, but has potential to grow

to 150 researchers.

“Having a lab presence so close to

major pharmaceutical facilities at

Roche/Ventana Medical Systems and

sanofi-aventis will offer the UA

enhanced research and collaboration

opportunities, as well as a potential

springboard for new business

incubator and technology transfer

programs,” Shaw said.

Ventana Medical SystemsIn October 2010, drug giant

Roche announced it would be

expanding Ventana Medical Systems,

its cancer tissue diagnostic operations,

in Southern Arizona. The expansion is

planned to take place over the next five

years with the construction of new

facilities and a capital investment of

$180 million in Oro Valley. Nearly 500

jobs will be created at Ventana due to

the expansion.

“These new employees will have a

huge ripple effect on services and

retail, in addition to Ventana

purchasing more local goods and

supplies,” Shaw said.

Roche was encouraged to expand in

Pima County through incentives from

Pima county, Oro Valley and the state

of Arizona, totaling nearly $14

million. More than $8 million were

made available through property tax

waivers, $2 million in stimulus funds

and a waiver of development fees.

Other driving factors for the expansion

included workforce quality, available

real estate, timely planning and zoning

approvals, available infrastructure and

property tax rates, Shaw said.

“This decision by Ventana Medical

Systems to expand their U.S.

Headquarters in Oro Valley is a

testament to the strong relationship

Oro Valley has shared with the

company for many years,” said Oro

Valley Mayor Satish Hiremant in a

press release. “The bioscience industry

is a key target growth area for Oro

Valley's economic development

efforts.”

As Tucson continues to grow its

bioscience industry, these companies

will be at the forefront of development

in the area, developing along Tucson's

“bioscience corridor,” Tolbert said.

“It is becoming clear that bioscience

and biotechnology are doing well in

the state,” she said. “What we are

trying to do now is strategically build

on the strengths we have so far so that

we can maximize our impact.”

Photo courtesy of Bob Davis of Grubb and Ellis Realty.

continued from page 9


Tucson secured a $63 million

federal grant for its modernstreetcar during the last week of

2010.The 4-mile modern streetcar

project will steer development inTucson by connecting major activitycenters like the University of Arizona,Arizona Health Sciences Center,University Main Gate BusinessDistrict, 4th Avenue Business District,Congress Avenue Shopping andEntertainment District and theMercado District. The project isexpected to trigger retail, office andresidential development andredevelopment along the route.

“This is a big deal for Tucson,” saidMicheal Keith, CEO and executivedirector of the Downtown TucsonPartnership. “This was the gamechanger in other municipalities. Otherlight rail systems have spurredenormous amounts of privateinvestment. This will be a bigeconomic driver.”

Building owners will likely seeproperty values increase along thestreetcar route as people work, play and

shop along the line. The increasedtraffic will also ignite interest in publicand private development for newbusinesses and mixed-use housing.

Construction of the streetcar isprojected to create 1,200 new jobs,with an additional 1,650 jobs createdas a result of construction activities.Research also suggests that 1,480long-term jobs will be created as aresult of the streetcar.

The streetcar system will be a fixed-guideway electric rail with sevenADA-compliant vehicles that willaccommodate bicycles and have easyroll-on access for wheelchairs andstrollers. The all-electric streetcar willhelp reduce air pollution andgreenhouse gas emissions. Holdingapproximately 130 people per vehicle,the streetcar will reduce trips by busand personal vehicle, reducingcongestion and pollution.

The nearly $200 million modernstreetcar project will be funded withlocal and federal funds. The RegionalTransportation Plan will contribute$88 million for capital and operationscosts. More than $60 million will come

from the federal Transportation

Investment Generating Economic

Recovery Grant funds. The Gadsden

Development Co. will contribute more

than $3 million for improvements in

the Mercado District.

In December, Transportation

Director Jim Glock electronically signed

the paperwork that officially obligates a

$63 million federal grant for the modern

streetcar. The Federal Transportation

Administration announced the

potential funding in February 2010.

By securing the grant agreement

the money is now obligated to the

project, Glock said. Although congress

could attempt to take away any

unspent funding, that is unlikely since

they would be more likely to take away

funds that are not obligated.

"Basically we’re now protected from

any sweeps from the new Congress,"

he said. "It was a long haul to get here."

The streetcar remains in the design

process. Early project scheduling

suggests streetcar service will begin in

2013.


The construction of the $65

million UniSource EnergyBuilding on the southwest

corner of Broadway and 6th Avenue,will be a catalyst for development inTucson. The new headquarters forUniSource Energy Corporation, whichwill own and manage the building, willprovide 170,000 square feet of officespace for more than 400 employees ofTucson Electric Power. The groundfloor of the nine-story office buildingwill have nearly 11,000 square feet ofretail space. The new building will alsohave a conference center, meetingrooms and close to 600 parking spaces,some of which will have electricvehicle charging stations.

“It is the kind of project that createsthe momentum for smaller projects tocome in from behind,” said MichaelKeith, CEO and executive director ofthe Downtown Tucson Partnership.

While most of the space will beused by TEP, the retail space will allowfor new businesses to operate indowntown Tucson. The conferencecenter will be available for communitygroups, especially non-profits. Thewhole project will be an asset toTucson, said Tucson Mayor Bob

Walkup in a press release.“This is going to be a great building

with a magnificent design that showsoff the best of what we hope toaccomplish downtown through strongpartnerships with private investors,”Walkup said. “The timely review andcompletion of this project will help usshow this community that downtownTucson is open for business.”

The UniSource Building, which iscurrently under construction, will becomplete by November 2011. Thestructure will be one of the mostenergy efficient buildings in Tucson,said Joe Salkowski, media contact forTEP. The long, rectangular footprintof the building will minimize itsexposure to direct sunlight. Thewestern side of the building will beequipped with a shade structure,shielding it from the sun. High-efficiency glass and energy-savinglights, HVAC units and othermechanical systems will also be used inthe structure.

As a leader in renewable energythat is at the forefront of solar powerdevelopment, TEP will be installing aphotovoltaic array that will help powerthe UniSource building. The number

of panels and how much energywill be produced from the arrayhas yet to be determined.“We thought it appropriate tohave such a system on our

corporate home since we have been

encouraging our customers to put solar

photovoltaic arrays on their own

homes,” said Salkowski.

A rainwater harvesting system that

will ensure all landscaping needs are

met with recycled water will also be

incorporated into the project. All of

these energy-efficient designs will be

essential in securing Leadership in

Energy and Environmental Design

(LEED) Certification for the new

building from the U.S. Green Building

Council.

Not only will the new building

allow UniSource to demonstrate its

commitment to the environment, but

it will also allow TEP to consolidate its

employees into one building.

“We really do need the space now,”

Salkowski said, explaining that the site

was chosen for its downtown location

and the value of the property. “Our

desire to improve the efficiency of our

operations really drove this process

forward.”

DAVIS is the principal design firm

on the project, assisted by Tucson-

based Swaim Associates. Ryan

Companies is the developer and

general contractor of the UniSource

building. Ryan Companies is using its

in-house design/build services in

conjunction with subcontractors to

build the shell and interiors of the

building. AF


In the green world in which many

facilities and operations managersnow function, the meaning of

“sustainability” has been slightly alteredto include environmental issues andimpacts. Although this has been longoverdue, the meaning of “maintain orpreserve in existence” still includesgetting the longest, cost-effective lifeout of every component of your facility.

While most corporate goals nowaim to reduce consumption ofresources, improve efficiency and movetoward environmentally-responsibleproducts and systems, money for theseimprovements is hard to come by andmust be used wisely. The past serves asa reminder of what the challenges areand how forethought and considerationcan help fight them off into the future.

AgeMany of the building components,

parts and equipment manufacturedtoday, although often superior inefficiency, cost and design, are just notbuilt to last.Time has had its chance towear out even well-maintainedroofing, plumbing, mechanical andelectrical systems on many buildingsbuilt during the commercial real estateboom of the 1980s.

Obsolescence Facility managers and engineers

know how difficult it can be to findrepair parts and components for anyvariety of aged building components.Systems like card access, buildingautomation and fire life safety, to namea few, continue to advance at such arapid pace that support for systemseven five years old can become costlyand difficult.

Labor Costs Labor costs for many specialized

vendors have easily doubled and even

tripled in two decades. Strongcompetition and technologies aremoving so quickly that many companieshave little time or money for employeetraining. Even skilled and seasonedtrades have a hard time keeping currenton systems only a few years old.

Lower BudgetsAs newer facilities that were

designed for sustainability come online, they feature energy advantages aswell as lower maintenance costs onnewer equipment. These properties canshow operating costs that are difficultfor older properties to benchmarkagainst.With the commercial real estateslowdown taking place during the pastfew years, many owners also do notwant to spend capital improvementdollars. When they do, they expect tosee an improvement on NOI.

Each of the above four categoriesoffers lessons on what to consider whenmaking a decision. Getting the biggestbang for your buck can be as easy asusing tools that have always been atyour disposal. Before you make the nextrepair, replacement, improvement orupgrade consider several simple itemsin addition to life cycle costing and timevalue of money.

Talk to others in your industrynetwork. How has their support beenfrom a specific company? Was thecompany overly expensive? Questionyour vendors about products they use.What’s good and bad? And what newtechnology is on the horizon? A fieldtechnician can be the best reporterregarding any product.

Do research as to the quality of pastproducts and service from themanufacturer and servicing company.Have they been around long? Will theybe around when you need them? Makesure more than one company can serviceany installation you consider. Request

more warranty than may be offered

prior to making a capital decision.

Purchase extra or support

components. Many manufacturers and

vendors are taxed on inventory items

they have in stock, because of this, they

are reluctant to keep a large stock of

older equipment on hand. When you

require an urgent repair, this can add

lead time and expense. If you intend a

long life for a VFD, BAS, EMS, FLS or

any other system or component, find

out from a field tech what is likely to go

bad and buy extra (within reason of

course). If it is cost effective, having this

part on hand in the event of future

failure could be invaluable.wh

When trying to get money from an

owner or asset manager for a repair or

upgrade,be sure to calculate in the cost of

maintaining the troublesome or failing

system being replaced. Also represent the

potential loss or damage that could occur

if the improvement is not made. Explain

the long-term benefit of a higher-cost,

sustainable improvement as opposed to

the least expensive option. In the end,

improving a project long term always

increases its value more than a patch or a

short-lived repair.

Reward quality manufacturers and

vendors with repeat business. Let them

know the reason for your loyalty. Learn

from the past decisions you have made

and try not to repeat the bad ones.

Consider any oversight made and focus

greater attention to that aspect of the

decision this time.

Al O’Connor, chief engineer at the Great

American Tower in Phoenix, has worked

in commercial real estate as a facility and

property manager for 17 years. He teaches

building design and operation classes for

BOMA Greater Phoenix and BOMA

International. He can be reached at

602.358.2085. AF

Life Cycle Costs Important Considerationsin Repairs, Upgrades By Al O'Connor

building maintenance

During PIR’s two annual

NASCAR Sprint Cup week-

ends, more than 65,000

seated ticket holders descend upon this

desert oasis – 20,000 of which put on

the brakes and set up RVs and trailers

for an entire week. So running an

operation like this takes more than

turning the lights off at night. There’s

traffic control for upwards of 37,000

cars, a full-service BASHAS’

Supermarket to feed temporary

residents and fans and training of

1,300 seasonal employees. With three-

and four-day events, management puts

in days of planning to be ready for the

checkered flag to come down.

A New Approach toTemporary Labor

To handle the increased employee

base demanded by the large patron

population, Lee Baumgarten, director

of operations, said his company shifted

away from “untrained contractors”

about six years ago. He saw the

benefits of having return employees. “If

you do that, it gets better year after

year.”

To accomplish this, PIR reached

out to nearby military units and

community organizations. Many non-

profit organizations now use race days

as a fund raiser with their members

donating their wages to the group.The

result is a reliable, temporary

workforce that provides a better

experience for the patron. “Here you’ve

got an officer in the Air Force selling

you a hot dog with a smile. We just

don’t order 20 people and put them

here and there,” Baumgarten said.

The process has been so effective

that 80 percent of their seasonal staff

returns for subsequent events.The idea

has also taken root outside the track.

The parking company PIR hires

follows suit in their hiring process.

Keep Your Arms and HandsInside the Ride

To ensure the safety of the more

than 100,000 patrons who attend the

races, PIR starts preparations early.

The Department of Homeland

Security and FBI provide a

vulnerability assessment on nearby

areas of concern, such as a nuclear

power station 20 miles away and a

chemical treatment plant.

PIR has their own 24-hour, 150-

person fire department, a full-time

sheriff ’s department, an ambulance

service and four doctors and multiple

nurses ready in three on-site medical

centers. An emergency line allows fans

to text message a 12-person command

center where people are ready to

respond to problems.

“We can handle anything from a

leaky toilet to a bomb threat,”

Baumgarten said.

Just as important as guest safety,

Baumgarten’s team is responsible for

ensuring visiting celebrities can make

it around the track safely.

“We have to be able to tackle any

challenge the facility throws at us that

may cause a delay or cancellation of

event,” he said. Equipment is on hand

to patch asphalt or rebuild a fence. In

the event of a power outage, the track

and visiting media providers are

prepared to work entirely off the main

electric grid with their own back-up

systems.

Keeping a Clean SlateCleaning crews stay up all night in

between race days to gather and sort

through trash for recyclables. In 2010,

62 tons of waste, or 846 cubic yards,

were recycled. That’s 733,000 drink

containers, 100 cases of plastic bags

and 24 tons of cardboard.

“It’s $20,000 per year savings on

waste fees, but more importantly,

removal of tons of items from the

waste stream,” Baumgarten pointed

out.

PIR uses approximately one

million gallons of water just to keep

down dust in their dirt parking lot.

Nearly 270,000 gallons of human

waste and 18,000 gallons of cooking

grease circulate through the facility

annually. The raceway is currently

connected to a series of water wells and

septic tanks but is making plans to

switch to city services. The switch will

move them off a septic system that

costs $100,000 to empty twice

annually and will allow them to

provide better water for guest services.

With 80 percent of their half-

million dollar energy bill accumulating


Carl Edwards doing his signature backflip at Phoenix InternationalRaceway after his Nov. 14 Sprint Cup victory. continued on page 16


during just more than 4 percent of the

year, Baumgarten is looking for new

approaches to cut energy costs

throughout the off season. “We joined

a program that we can voluntarily offer

to shut down areas of our facility (in

the summer) so (the power company

doesn’t) get a brown out. It’s a new

program we haven’t tried yet.”

Making the TripGetting to and from the facility

presents unique challenges. For the

possible 37,000 cars headed to PIR on

big race weekends, creating traffic

plans and obtaining government

approval is a year-round process. With

only two major roads and seven lanes

of switchable in-bound/out-bound

traffic, Baumgarten said they create a

“well-orchestrated event by every

government agency you can imagine.”

For the past 10 years, PIR has also

operated a park-and-ride program out

of Cricket Wireless Pavilion, located

12 miles away. With about 10 percent

of guests opting for the nominal $7

fee, a car load can park and ride one of

the 70 buses to take them to their own

express entrance gate. The operation

runs at a loss but keeps another three

or four thousand cars from clogging

the lanes.

A Photo FinishTo exceed the expectations of the

fans who support the facility, PIR is

working with Avondale City on a

long-term development agreement

that will improve on their

infrastructure delivery and create a

new zoning standard that better meets

their needs. The move could be helpful

for all players involved: A recent

Arizona State University study

indicated PIR’s activities bring more

than $400 million into the area each

year. And although it may take only

29.5 seconds to make it around the

one-mile track, that level of economic

impact takes careful planning and

effective delivery on behalf of the

facilities managers.

“I think there’s a monumental

difference between a stick-and-ball

event and NASCAR. This is more of a

lifestyle,” Baumgarten said. “An NFL

game gets 65,000 attendees, but they do

so for only three or four hours. Our

event is alive and well for five days.” AF

By the Numbers• 50 full-time employees• 1,300 part-time event staff• 15,000 – 20,000 fans camping

during races• 7,500 RV parking stations• 37,000 parking capacity• 65,000 reserved seating capacity• Tickets from $25 to $117• 50 corporate suites• 80% of annual energy bill

accumulated in two weeks• 1 million gallons of water used

annually for dust control• $500,000 annual energy bill• 25 restrooms• 1,000 portable toilets rented

for big events

continued from page 15

ARIZONA FACILITIES FEBRUARY 2011 I 1717 I ARIZONA FACILITIES FEBRUARY 2011

Mission Statement:To actively and responsiblyrepresent and promote theinterests of the commercialreal estate industry througheffective leadership andadvocacy, through thecollection, analysis anddissemination ofinformation, and throughprofessional development.

2011 Schedule

Jan. 18: BOMA GreaterTucson and IREM jointeconomic forecast

Feb. 22: BOMA GreaterTucson and IFMA SouthernArizona joint meeting

March 29: BOMA GreaterTucson meeting

April 26: BOMA GreaterTucson annual trade show

All events will be held at theSheraton Tucson Hotel,5151 E. Grant Road, Tucson,Ariz.

Membership BenefitsMembership in BOMA Greater Tucson is all about opportunity to learn, to grow andto affect positive change in the building ownership and commercial propertymanagement industry. BOMA Greater Tucson links real estate professionals to theinformation, networking and education they need to succeed. Here are a few of thebenefits members enjoy:

• Be part of apowerful team

• Build ImportantRelationships

• Boost Your Knowledgeand Skills

• Stay Up-to-Dateon the Industry

• Enjoy ExclusiveNetworkingOpportunities

• Access a WorldwideIndustry Network

• Advance YourCareer and Hirethe Right People

• BOMA MembershipSaves You Money

2010 Officers:Gay Jarvis, President

Dana Elcess, Secretary

Andrea Krug, Treasurer

Mona Deane, Past President

October 26: Halloween Family Mixer and Trade Show

I am proud and excited to be leading our association in 2011. BOMA ofGreater Tucson has quite a few exciting events planned for the firstquarter of the year. We kick off on Tuesday, Jan. 18, with the annualBOMA/IREM joint economic forecast. Our keynote will give anoverview of the national economy and how it affects Tucson, along withlending and development in today’s real estate climate.

In February, we always look forward to our joint luncheon with IFMA. This should bean informative meeting with speakers on the new Tucson Certificate of OccupancyOrdinance and emergency preparedness tips.

The March luncheon meeting will focus on HR liabilities for small businesses. Our annualtrade show in April will showcase BOMA associate members and their services.

And, of course, we have a full schedule of education classes planned. I invite everyoneto join us. Check the BOMA Greater Tucson website (www.bomagt.org) for a fullschedule and to register for any of these events.

Gay Jarvis

BOMA of Greater TucsonPMB #140; 3305 N. Swan Rd #109Tucson, AZ 85712Office: (520)299-4956Fax: (520)[email protected]

BOMA Greater Tucson RECENT EVENTS:

PRESIDENT’S MESSAGE

October 31: BOMATeam for AmericanCancer “Making

Strides”


In today’s economy, building

owners and facility managers are

always looking for new ways to

reduce their company’s tax liability,

increase their monthly cash flow,

protect their building against rising

energy costs and increase their

building’s value to prospective buyers.

The good news for Arizona

building owners is that installing a

solar power array on their rooftop will

allow them to take advantage of

federal and state investment tax

credits, utility solar incentive

programs, solar capital equipment

depreciation and Sec. 179 expensing to

offset tax liabilities.

The federal government is currently

offering commercial businesses a 30

percent investment tax credit on the

entire cost of installing a solar power

array on a building’s rooftop. Arizona

provides a 10 percent solar tax

incentive up to $25,000. Utility

companies offer an upfront rebate

incentive for small commercial solar

systems under 30 kilowatts and a

performance-based incentive for larger

solar power arrays.

On Sept. 27, 2010, President

Obama signed the Small Business Jobs

Act (H.R. 5297) into law, reinstating

the 50 percent depreciation bonus for

2010 (retroactive to the beginning of

the year) and increasing Sec. 179

expensing levels to $500,000 for 2010

and 2011.

In addition, the Senate version of

the "Tax Relief, Unemployment

Insurance Reauthorization, and Jobs

Creation Act of 2010" (the "Bill")

contains a one-year extension of the

Section 1603 Treasury Grant program.

Though the maze of solar tax

incentives, utility solar incentives

programs and depreciation schedules

may seem complicated, with the right

financial spreadsheet, a building owner

and their certified public accountant

(CPA) can enter their last 12 months

of electric billing information and

determine whether or not investing in

a solar power array provides a good

return-on-investment in less than 20

minutes.

Most building owners with a tax

liability are surprised to learn that with

the incentives available the total cost of

installing a solar power array on their

rooftop can be completely paid off

within four to seven years, and the

improved cash flow resulting from the

lower energy costs can be reinvested in

their business.

Producing free solar energy

provides a competitive advantage as

Building Owners take Advantage of Tax Credits with Solar Power ArraysBy Nick Davison

Photo courtesy of Ameri-Skills Solar Training


the competition’s energy prices

continue to rise. A company’s solar

power array energy production remains

free for 25-30 years. Additionally, the

benefits of “going green” can be

leveraged to generate free, positive

publicity that will attract new

customers.

For example, if an Arizona car

dealership installed a $500,000 solar

power array, the dealership would

receive a $150,000 federal investment

tax credit, a $25,000 Arizona tax credit

and $171,700 worth of expense and

depreciation tax benefits. The energy

savings of the 100-kilowatt system for

the first six years would be $146,242.

The solar system would pay for itself in

less than five years. The side benefit

would be enabling them to market

their car dealership as a “green

business” to the local community,

which could be tied in nicely with their

hybrid car marketing campaigns.

Nick Davison is the CEO and president

of Smart Solar Solutions. Smart Solar

Solutions is an Arizona-based, full-

service design and solar installation f irm

specializing in turnkey solar photovoltaic

electric power systems for commercial

rooftops and parking lots. AF

alternative energy

FFrreeee SSoollaarr TTaaxx SSeemmiinnaarrThe Solar Tax Strategies for Building Owners Seminar, hosted by Arizona Solar

Power Society, will be held from 6:30 to 7:30 p.m. on Thursday, Feb. 3 at the

Wyndam Hotel, 50 E. Adams Street, Phoenix. Dan Hoskin, Smart Solar Solutions

VP of sales and marketing, will explain solar tax incentive and utility solar rebate

programs and answer questions for building owners. RSVP at 602.326.0940.


Building Information Modeling can Saveon Time and MaterialsBy Dan Russell

Building Information Modeling

(BIM) is a design and construc-

tion application that replaces

standard 2D construction drawings with

multi-dimensional computer models.

These models allow project teams to

identify and resolve issues before a

construction project begins, ultimately

decreasing time, material and cost

inefficiencies caused by change orders,

construction delays, equipment

fabrication and more. Because the

program is electronic, BIM allows for

changes in real-time, thereby eliminating

waste and conserving paper and materials

for drawing and table-top models.

BIM’s additional benefits include

cheaper equipment prefabrication

(shop built and field installed) and a

completed design, offering a clear

picture of the finished product, which

gives clients and owners the

opportunity to virtually tour their

projects before they build.

Here’s a closer look at how BIM

works and benefits the building process

as well as project owners:

Here to StayThere is a perceived notion that

BIM is only for the big leagues. Some

smaller subcontractors have been

reticent or unable to invest in the

technology. But BIM is only in its

infancy and will be around for a while.

Consider CAD’s role in the early 1980s.

By the 1990s, every major project built

was designed and fabricated using

CAD software. By 2020, BIM will be

the standard by which projects — even

single-family homes — are designed

and delivered to maximize resources,

minimize waste and employ a

sustainable construction approach.

Productivity and EfficiencyDuring Construction

BIM’s application goes well beyond

the completion of the model. In the

field, superintendents have the

opportunity to be involved in trade

coordination and to integrate the

CPM schedule with the BIM model,

which provides a visual of how and

when multiple trades are working in

the same area at the same time. This

visual schedule makes it easier to solve

field issues and ensure proper

installation and sequencing of

building components. This also avoids

clashes and maximizes the

productivity of trades.

BIM minimizes field changes and

decreases costly change orders. In the

event an unforeseen incident arises in

the field, models can and must be

updated to reflect the field change.

Each discipline affected by the change

should then update its model to reflect

current field conditions. Keeping

models updated diminishes the impact

of the change on the project timeline,

providing a real-time electronic visual

of the new layout and schedule for a

work sequence in a given area.


Streamline Coordination Trade coordination clashes are

common in the building industry. The

most common clashes happen among

mechanical, electrical, plumbing and

fire protection in the space between the

ceiling and the structure above, such as

piping hitting ductwork, ductwork

hitting structural beams, or mechanical

shafts being too small to accommodate

the amount of equipment set to run

through them. Using BIM for trade

coordination involves checking the

geometry in each disciplines model

against the geometry in other

disciplines' models. Doing this shows

superintendents where different

components are hitting each other and

helps the disciplines in question shift

equipment to avoid each other and

keep the project running smoothly.

BIM also helps avoid clashes related

to scheduling. A BIM model can be

used to ensure proper task sequencing,

such as seeing whether the underground

conduit has been completed in an area

prior to laying the foundation system, or

to see whether the mechanical

subcontractor has finished installing

ductwork above the fire protection

system so the fire protection

subcontractor can begin work. This is

always useful, and particularly so when a

project is on a tight timeline.

Used in As-Built ModelsMost projects are still doing as-

builts or record drawings. However,

some progressive facilities owners are

asking for as-built models because they

want accurate 3D representations.

When considering the as-built model,

it’s important for clients and owners to

be aware that each designer and

subcontractor may be utilizing

different modeling software. Software

tools that work well for design and

engineering are not necessarily the best

tools for creating the fabrication-type

models subcontractors need to run

fabrication equipment. To get a true

as-built model, it’s best for one

company to combine all of the

information from each disciplines

model into a single software platform

at the end of the project.

Facilities Management and O&MIn summary, BIM has become a

valuable tool that makes facility design

and construction more efficient. The

big question then is, how can this tool

be used after construction for the

lifecycle of the facility? These models

inherently contain a wealth of data,

and facility owners and managers can

tap into this data and link it to FM

and O&M tools. Essentially, the

model becomes a web-based graphical

interface between a central database

and existing management tools. This

use of technology can allow facilities

staff to use tablet PCs and PDAs to

access facilities data from the field.

For example, you could right click on

a chiller in the model and select from

a menu of choices such as commis-

sioning documents, O&M manuals,

building control system or main-

tenance records. Selecting the

maintenance records option would

take you to data specific to that piece

of equipment in another application

like IBM's Maximo.

All told, BIM is a tool that

streamlines the construction process

from start to finish and beyond, allowing

clients, owners and project and

management teams to maximize

productivity and collaboration. The

application's impact on the industry is

expected to increase in the years to come.

Dan Russell, LEED AP, is the director of

construction technology at Sundt

Construction, Inc. He has been with

Sundt for 15 years. He can be reached at

480.293.3000 or [email protected].

For more information on BIM, visit

www.sundt.com/building-information-

modeling-bim. AF

building information modeling


T he “go green” concept aimed at

minimizing the negativeenvironmental impact of society

has permeated nearly every industry inthe United States. Changes in theeconomy, such as the rise of gas andutility prices, have caused the averageconsumer to think outside the box interms of energy consumption.Increased environmental awareness andfocus on energy efficiency have driventhe marketplace toward moresustainable construction practices.High performance building has pavedthe way for new adaptive technologiesin the world of plumbing and HVAC.

Over the last several years, the boilerindustry has caught on to this conceptand is now riding the wave of energy-efficient, low-emission products. Boilermanufacturers are finding innovativesolutions to meet the demands of anation determined to go green. One suchsolution is known as condensing boilertechnology. Condensing boilers haveevolved from a once mysterious creatureinto a widely recognized and field-proventechnology dedicated to increasingenergy efficiency and sustainability.

Technology OverviewCondensing technology is based on

the theory of recovering lost heat whichescapes out of the flue exhaust in aboiler system. During the combustionprocess, water vapor is created that inturn captures heat from the flue gases.These hot flue gases are then vented outthe boiler flue and into the atmosphere.

Traditional, non-condensing boilersmight see exhaust temperaturesupwards of 400 degrees Fahrenheit. Acondensing boiler system seeks to lowerthe exhaust temperature by recoveringthe latent heat of vaporization. This isachieved by lowering the entering watertemperature (EWT) to the boiler. Asthe EWT drops below 130 degreesFahrenheit, the water vapor in the stackbegins to condense out, and stacktemperatures begin to drop. Lowerstack temperature means less heat loss,which translates into higher thermalefficiencies at the boiler. Although theconcept seems simple, the properapplication of available products is keyto a successful condensing boiler systemthat is both energy efficient andsustainable.

Adequate attention must be givento all vital components of thecondensing boiler design, includingmetallurgy, burner modulation andcombustion controls. Material usedfor construction of the heat exchangeris of utmost importance, since thecondensate forms a highly corrosivesubstance known as carbonic acid.Theheat exchanger comes in direct contactwith the condensate and must bedesigned to resist the acidity.Although stainless steel is the weaponof choice for a variety ofmanufacturers, cast aluminum alloyholds a much better track recordworldwide in terms of durability andmore efficient heat transfer.

Burner modulation and combustioncontrol strategies also play animportant role in the overall systemperformance. A throttling gas valve andforced draft fan with a variablefrequency drive (VFD) facilitateburner modulation; the ability to varythe firing rate based on watertemperature. This capability allows theboiler to reduce its net heat outputduring periods of lower demand, as


opposed to on-off firing whichemploys an “all or nothing” approach.

Burner modulation is critical whenoperating a boiler in condensing modebecause lower firing rates yield higherefficiencies. In addition, condensingboilers are often installed in what iscalled a modular system. This meansthat in place of one large boiler, severalsmaller boilers are staged in a series toaccommodate the overall systemdemand. The master boiler controlcommunicates to other units in thecascade and determines when to firethe boilers and at what firing rate. Inthe boiler industry, this is called loadmatching. Load matching ensures thatthe boiler system is outputting justenough energy to satisfy the load.Excess BTUs or waste heat is kept toa minimum.

When burner modulation iscoupled with condensing boilers in amodular array, facility owners can becertain they are getting the most out ofevery dollar spent in energy.

Real World Application The Tucson Marriott University

Park Hotel, located at The Universityof Arizona’s main gate, was confrontedwith a challenge common to a myriadof other hotels and resorts throughoutArizona.The introduction of extremely

hard water into the domestic hot watersystem was causing the build-up ofscale in the boilers. This led toinefficient operation and shortenedequipment life. These damaging effectsof scale ultimately resulted inadditional spending on fuel bills andmaintenance. Mathematics of this sortdoes not add up to a green orsustainable design.

A clear solution was to apply theprinciple of indirect heating to acondensing boiler system design. Twoaluminum-alloy condensing boilersmanufactured by Patterson-Kelley wereinstalled, along with a plate-and-frameheat exchanger package. The heatexchanger served to isolate the boilerwater from the domestic hot water loop.This allowed for indirect heating of thedomestic water through the plate-and-frame, which eliminated the risk ofproducing scale inside the boilers.

Low operating temperatures of thedomestic hot water system also provedto be a perfect match for the condensingboilers.Return temperatures around 100degrees Fahrenheit have yielded thermalefficiencies as high as 96 percent. Inaddition, the boilers were equipped withultra-low emission burners, whichproduce less than 9 ppm NOx at highfire. In this case, the low emissionfeature was a fringe benefit to go along

with the more obvious perks of energy

savings: lower maintenance costs and a

longer life span.

ConclusionThe Marriott University Park project

in Tucson is evidence that condensing

technology can be the source of greater

energy efficiency and sustainability by

design. Appropriate metallurgy, fully

modulating burners and modern

combustion control strategies are the

means by which condensing boilers

achieve such sustainability. Reducing

fuel consumption and emissions, while

providing a longer lasting, more durable

product is the goal of manufacturers in

the boiler industry today. Proper

utilization of available technologies is

necessary in furthering the

developments of high performance

building, and will result in a society

more capable of meeting the demands

of an ever-changing world.

Quinton Lamoreaux is the engineered

products manager for McCook Boiler &

Pump Co. He has a bachelor’s degree in

civil and environmental engineering

from Brigham Young University. He can

be reached at 520.623.5788. AF

boilers


T he Performance Based Studies

Research Group (PBSRG)

has been studying the delivery

of services to owners/clients/buyers

since 1994. The technology is called

the best value Performance

Information Procurement System

(PIPS) and the Performance

Information Risk Management

System (PIRMS) and is based on the

Information Measurement Theory

(IMT).

The majority of testing occurred in

the construction industry. Since 2007,

Arizona State University, under the

direction of Ray Jensen and

procurement director John Riley,

allowed the testing of best value PIPS

on non-construction services. From

2007, ASU, proceeded to use PIPS on

the delivery of their food services, the

sports marketing, their document

control, the outsourcing of their IT

networking services, long distance

education and help desk services. From

the first three contracts, the vendors

identified the value of the new best

value processes at $100 million over

the next 10 years (difference in the

revenues that ASU will receive over

the next 10 years that is written into

the best value contracts).

Another dominant test has been

with the General Services

Administration (GSA) in the

heartland region (Kansas City). They

have a four-year plan ($800,000 grant)

to implement the best value PIPS

system into the GSA system. Their

interest is peaked by the:

• Measurement of performance and

deviations on every project.

• The ability to accurately measure

their entire organization’s

performance using vendor risk

information.

• The ability to minimize project

cost and time deviation.

• The potential to increase their

delivery of projects with 10 times

the efficiency.

The University of Minnesota has

been using best value PIPS for the

past five years. As a result of their

performance, Minnesota changed

their law to deliver construction using

the best value PIPS methodology. Five

other government entities in

Minnesota are now testing the

process.

A federal organization has been

testing best value PIPS for the longest

period of time. Without addressing

the procurement of the service, it has

used the deductive logic to motivate

contractors to do the following:

• Pre-plan to manage and minimize

risk.

• Assist the government participants

in the project to be accountable,

doing the right things at the right

time.

• Have a plan (in terms of

performance and time), help the

government to do things in the

right order and time and

document the source of any cost

and time deviations on the project.

• Project cost deviation has been

minimized by 50 percent by

knowing the 10 riskiest projects

weekly, of 300 projects at 26

Putting Vendors in Charge ofFacilities ManagementThe Facilities Manager Model Implements Logic-based Processin Building Management By Dean Kashiwagi

Performance InformationProcurement System:

What makes the technology lucrativeto owners/buyers of services?

• Minimizes up to 90 percent ofthe client project and riskmanagement transactions.

• Vendors make up to 100percent more profit, butdeliver it at a lower cost.

• Value and performanceincrease, and cost and riskdecrease.

• 98 percent of more than 700 tests(1994-2010) have high customersatisfaction, no vendor createdcost or time deviation, and aredelivered at a low cost.

• Client does not need to know theexact product/system/ solutionthey are looking for, they justneed to know what they thinkthey want.


different sites, with a budget of

more than $300 million.

The Western States Contracting

Association (WSCA), of which

Arizona is a member, has sponsored

tests with the states of Idaho, Alaska

and Oregon. They include a $200

million ERP system procurement, a

$30 million DMV system for the

Idaho Department of Transportation

(IDT) and a test to purchase a

software package for the Oregon

facilities group.

PBSRG has also had an

international reach as the Dutch

national government is running the

largest best value PIPS test (delivering

one billion Euro value critical highway

renovations). Best value PIPS tests in

all industries has resulted in huge

efficiencies and value for the

buyer/clients. PBSRG is also ready to

assist the largest and most influential

contractor/developer entity in

Malaysia, who wants to integrate their

entire supply chain, from the

development to the maintaining of the

properties. PBSRG has also run tests

in Gaborone, Botswana, in the

southern section of Africa. The next

country which will test PIPS/PIRMS

is Canada, as the University of Alberta

will be implementing and testing

PIPS.

The PIPS/PIRMS technology

(processes, use of performance

information and deductive logic) is

licensed through AZ Tech, the

technology licensing arm of Arizona

State University. PIPS and PIRMS is

different from all traditional project

delivery systems due to the following:

• It minimizes the management,

direction and control of the buyer’s

organization on the vendors.

• It minimizes the communication,

documentation and paperwork.

• It proposes that the vendor is the

expert and should know what the

end product is, why it is required

and how it will be delivered.

• It proposes that expert vendors can

see the delivery of the service from

beginning to the end, regardless of

the perceived technical complexity,

and can break it down into simple

tasks that the client can

understand.

• Creates transparency so the client

can quickly identify which vendors

can perform and which cannot.

PIPS/PIRMS works because it

aligns expert resources against

requirements. It motivates the vendor

to think in the best interest of the

client, and at the same time maximizes

the vendor’s profits. Lessons learned

from 16 years of testing best value

PIPS include: buying on price is a

“blind man’s game,” a high performer

can always deliver a better value and

the client is his own worst enemy

because they cannot tell the difference

between good and bad vendors, and

they try to bring the high performing

vendors risk by arbitrarily trying to get

them to reduce their price.

Dean T. Kashiwagi,

professor and director

of Performance Based

Studies Research

Group at Arizona

State University, is an

expert in optimizing

the delivery of construction and other

services using performance information.

His structures/processes simultaneously

minimize project/risk management

functions up to 90 percent, increased

vendor prof it as much as 100 percent,

increased performance to 98 percent and

decrease costs. AF

vendor relations


A tremendous amount of

attention within the landscape

industry is being given to the

benefits of applying practices and

methods that promote sustainability.

As defined for landscape applications,

sustainability employs practices which

strive to preserve limited and valuable

natural resources such as water and

plant materials, reduce waste

generation, strive for longevity and

maturity of plant materials, promote

re-use and practices which regenerate

natural systems, reduce and prevent air,

water and soil pollution.

Landscape is nature and should be

treated naturally. Sustainable main-

tenance is not about letting the

landscape take over; it is about

properly managing the landscape using

the plants natural form and growing

patterns according to the designer’s

intent. Landscape professionals do

their best to use flowers, groundcover,

shrubs and trees that will live in

harmony with their environment.

Although ever evolving, it has taken

years of trial and error to develop apalette of native and non-native plantsthat are aesthetically pleasing and thatwill thrive in the local environment.

Few topics in landscaping generatemore discussion than how to prune ashrub. Past practices have dictatedshearing and shaping of shrubs. Societyhas forced the perception in thelandscape industry into thinking that ifyou don’t follow the practices of themeparks and create shapes out of theplants and trees, the job is not doneproperly. In order for sheared plantsand trees to survive, irrigationprinciples must switch supplementalwatering systems into primarywatering systems to help compensatefor the damage done by these practices.

In addition, using the shearingmethod to control growth continuallyrobs the plant of leaves, hindering itsability to convert nutrients into food.Lack of shade at the core of the plantallows more moisture evaporation,creating a need for more supplementalwater. In turn, this increases growth,requiring even more shearing. As the

plant grows faster to replenish shearedfoliage, the diameter of branchesincrease over time and become“woody.” Eventually the shrubbecomes unhealthy, is more prone todisease and the life span is shortened.

Possibly the most abused shrub isthe sage species because it is commonand easily sheared into shapes. Manyneatly trimmed sage bushes are nearlysee through due to shearing. Considerthe colorful alternative of properpruning techniques so you can see thegreen or silver leaves accentuating thebrilliant purple blooms.

Improper maintenance in the desertsouthwest, including portions ofArizona, California and Nevada, can bethe most damaging.Plants in these areastolerate difficult circumstances such aslimited irrigation water supplies (whichhave high mineral and PH content),high temperatures and minimal rainfall.Misguided maintenance practicesfurther compound the impact of theseconditions and create unnecessarydamage to plant materials, diminishingthe value of the investment.

landscapingThe more natural method of

pruning favor the health and longevityof the plant. The intention of mostlandscape designs is to achieve a morenatural, less structured look whichcontributes to the long-term goal ofachieving a landscape that can bemanaged with less water requirements,reduce waste generation, better wildliferefuge and better aesthetics, resultingin sustainability.

Renovation style pruning appliesprinciples to promote an aestheticappearance of shrubs and groundcoversin a designed urban landscape.Typically, this consists of pruning theshrub approximately 1/2 to 1/3 of itsintended size. This type of pruningpermits plants to grow back into thespace throughout the followinggrowing season. Shrub renovationallows people to enjoy the seasonalcolor provided by a variety of plantingsused in open spaces and landscapeareas. No pruning is required whenplants are in bloom and shouldcertainly not be dictated by a monthlyor bi-monthly schedule. Pruning isnecessary for safety related issues, suchas plant materials that encroach oversidewalks, obstruct lines of sight atintersections and driveways or thatblock signage.

For instance, an Orange Jubilee cangrow in excess of 8 feet by 5 feet in aslittle as two growing seasons. When

the shrub exceeds the intended heightfor the location, it can be selectivelypruned prior to exceeding the height,or if it is the proper season for thisspecies, renovation style pruning isrecommended. Use of this method willallow the plant to grow, bloom andprotect itself from the sun naturallywith its leaves.

Sustainable landscape managementis not only about shrub and treepruning methods. It encompassestesting and treating various soilconditions, turf management,irrigation repair and maintenance,water runoff, fertilization and pesticideand herbicide applications. Combininga good sustainable landscape designwith proper landscape and watermanagement can create anaesthetically pleasing atmosphere thatenhances its surroundings.

Board members from the ArizonaLandscape Contractors Association(www.azlca.com), Matthew Johnson ofAsset Landscaping, Will Periera of BlueStar Resort & Golf, Dave Spector ofTLC and Judy Gausman of ALCA,contributed to this article. Allparticipated in the review and editing of“Sustainable Landscape Management”and are involved in the day-to-dayoperations of their respective landscapemanagement f irms. AF

Standards for Landscape

Care Outlined in Book

The Arizona Landscape

Contractors Association

(ALCA) recently adopted the

“Sustainable Landscape

Management; Standards for

Landscape Care in the Desert

Southwest,” written by Janet

Waibel, a licensed landscape

architect and certified

arborist. The publication

contains information about

the best recommended practices

that are known to achieve

high-quality results when

properly applied to typical

situations. A committee

consisting of ALCA members,

representing landscape

management and landscape

supply firms, worked

extensively to edit and advise

the book with regard to

content and efficiency for

practical use. The book is

suitable for industry

professionals, property

managers, homeowners

associations and others who

care for or invest in

landscaping.

“It is our desire for every

professional involved with

landscape management to read

and understand these

principles and standards in an

effort to elevate the quality

and professionalism within

the communities and cities we

live and work,” said Will

Pereira, ALCA board member.Improper pruning techniques



Wireless technology is not

new. Starting with the

earliest commercial radios

in the 1920s to the introduction of cell

phones in the early 1980s, wireless

technologies have been used for years

in our homes, cars and work places.

Now, advancements in wireless

technologies have made installing

emergency call and life safety systems

an easier undertaking.

At its basic level, an emergency call

system uses a button to alert the

appropriate people that a user needs

help. For years, alerts were simply a

light switch with a hole drilled for a

string that, when pulled, turned on a

light and a siren to notify that

assistance was needed. Today,

computer-based systems can track a

person’s movement and send an email

to an iPhone.

Before wireless became the “must

have” technology, the introduction of

computers was the biggest thing to hit

the emergency call market. Now, the

computer is the most common link

between monitoring devices and the

pagers or telephones used for

notification. Computers allow data

recording and reporting, provide more

flexibility in changing settings, enable

tracking of login and personnel and

offer some types of redundancy.

However, they also have limitations,

requiring security updates, patches,

being subject to failure and having a

limited lifespan. Computers greatly

enhanced functionality but also made

choosing the right system more

complex.

Similarly, the advent of wireless has

added another layer of complexity.

Wireless has become the hot product,

offering many benefits. Some things

that should be explored before

purchasing a wireless system for your

building. This may be as simple as

checking with state regulations. While

regulations are catching up with the

available technology, hardwired

systems are still required in some states

due to limitations of some of the

earlier wireless technology.

There are three main advantages to

wireless:

1. It is hard to beat both in terms of

actual cost and time to install;

2. It provides flexibility by allowing

you to move devices more easily;

and

3. It offers greater expandability,

enabling you to add on to your

current system with greater ease.

These features have resulted in the

widespread popularity of wireless but

should be weighed against some of the

constraints of the technology. While

installation is almost always cheaper,

operating costs can be higher. In

comparison to their hardwired

counterparts, the wireless devices

themselves are more expensive and

tend to have a shorter lifespan,

reflecting the more rapidly changing

technology.

Once installed, a wireless system

will require more maintenance and

incur greater recurring expense.

Without a hardwired power source,

devices will use batteries, and batteries

need to be changed. Wireless systems

tend to offer a lower level of

supervision than the hardwired

alternatives, since battery constraints

limit the ability to constantly monitor

the devices.

When it comes to reliability, the

nature of wireless makes it susceptible

to interference. Cell phones drop

calls. Radios make a squawking sound

when cell phones are next to them.

Wireless might not be an appropriate

choice if your facility’s physical

structure or location is such that

interference is always going to be an

issue. Concrete and steel buildings

will find wireless signals are more

limited and may require additional

infrastructure to ensure reliability.

Commercial kitchens, microwaves,

elevators, mirrors and large fishtanks

are also known to interfere with

wireless signals.

If you do choose a wireless system,

a number of frequencies are available

and the best for your facility will

depend on your requirements and

preferences. Lower frequency bands

have been around the longest and are

more established. This equates to

lower costs and a greater availability of

parts. The bandwidth dictates how fast

data can be transmitted, but typically,

the higher the bandwidth the more

power is needed, requiring more

battery maintenance.

Many paging systems fall into the

456-460MHz land mobile category.

902-928MHz is reserved for

radiolocation, which is what many call

systems fall into. Cordless phones are

now available in the 2.4 GHz and

Wireless vs. Hardwired for Healthcare FacilitiesNew Technologies in Emergency Call and Life SafetyMake Installation EasierBy Jacquie Brennan


5.0GHz range. Does it make them

better because they are on a higher

frequency? Not necessarily, part of it is

just that the band may be less crowded

because it was recently released and

fewer manufacturers produce in that

range. Higher frequency are generally

faster but have a shorter range, while

the lower frequency, as a rule, have the

best range.

For many facilities a hybrid option,

including hardwired call stations and a

wireless backbone that enables you to

add devices and pendants, might be

the best choice. This does increase

installation costs but provides the

reliability and lower operating costs

with the flexibility and expandability

of a wireless system.

Prior to selecting a system, an

analysis of the needs and

infrastructure of your building in

comparison to the pros and cons of

the technology needs to be

completed. The location, structure

and purpose of your facility, your

capital budget and operating budget

constraints, your tolerances on

reliability versus flexibility or

expandability and how long you

expect your system to last will all

influence your decision when

choosing between hybrid, wireless or

hardwired options. When choosing

an emergency call system remember

not all technologies are created equal,

and just as important, no two

facilities’ requirements are the same.

Jacquie Brennan has been active in the

design, implementation and operation of

hardwired and wireless nurse call and

emergency call systems during the last 13

years. Brennan is currently vice president

of operations for Vigil Health Solutions,

Inc., which specializes in providing call

and monitoring solutions for long-term

care facilities. AF

healthcare facilities


OfficeMarket

OutlookSteady RecoveryBringing Activity

Back GraduallyBy Ruth Darby

Phoenix Forecast

The office market started to heal

in 2010. While slow, it was an

improvement. Building on

gradual quarterly gains, 2010 finished

with positive net absorption of less

than 500,000 square feet for the first

time in more than eight quarters as the

market leveled out and stayed there.

Absorption will increase in 2011 due to

many economic factors such as job

growth, interest from out-of-state

companies and the surplus of

foreclosures that are currently in

somewhat of a holding pattern. This

will give the market the boost it has so

desperately needed.

Phoenix will remain a tenant’s

market throughout 2011 and into

2012. Rates will continue to fall

through third quarter 2011 when rents

will start to level out. Vacancy will start

to decrease slightly and out-of-state

tenants will come back to Phoenix for

its business-friendly environment and

declining real estate prices. An increase

in jobs will follow as a precursor to

positive absorption gains.

New construction will be

nonexistent through at least 2012 as

the market rebounds and spaces are

absorbed. This could take several years

due to the glut of vacant space. With

more than 12 million square feet of

new speculative completions added

during the last five years, in addition to

the challenging real estate market, it

will take some time for the market to

bounce back.

In 2011, tenants will have the

opportunity to make attractive deals on

space by taking advantage of lower

rents and more concessions. Out-of-

state tenants will continue to migrate

to Phoenix as they did in the past for

the business-friendly atmosphere,

lower real estate costs and affordable,

educated employment base. This will

breathe new life into the Phoenix

economy.

Landlords will renew tenants for

OfficeMarket

OutlookSteady RecoveryBringing Activity

Back GraduallyBy Ruth Darby


the short-term, enabling them to

increase rents when the market rates

trend back up in early 2012 and

beyond. Landlords will remain

aggressive with low rental rates and

more concessions through 2011 to

win new business. The scales will

start to tip slowly back in their favor

later in the year, creating more of a

balance between their expectations

and those of tenants.

Tucson Forecast

A diversified economy makes

Tucson a prime growth area as the

market continues to improve.

Tucson has a good economic

foundation that will serve as a

catalyst when the market

returns. The city is an emerging

world leader in solar

technology, home to the fastest

growing privately held

aerospace company, as well as a

successful technology hub. The

University of Arizona, situated

in the center of the city,

provides a well-educated

employment base for companies

looking to relocate here.

The commercial real estate

market was comparatively

steady through 2010 with no

major ups or downs in

absorption or vacancy overall. The

market will show improvement in

vacancy and absorption numbers as

2011 progresses. Construction will

remain at low levels with the largest

project being the 235,000-square-

foot UniSource Energy Services/

Tucson Electric Power Tower,

scheduled for completion in the

fourth quarter of 2011.

The unemployment rate was 8.8

percent during October 2010, and is

expected to creep up one more basis

point in 2011, where it will level out

by year-end. Job growth will come

from the healthcare, tourism and

high-tech industries, which will

come back to life as consumer

confidence improves.

Economic indicators such as retail

sales are expected to increase, nearly

doubling from the 4.6 percent

annual increase in 2010 to 9.6

percent in 2011. Housing continues

to struggle, as Tucson ranks first in

the state of Arizona and 41st in the

nation for foreclosures. The number

of home foreclosures was cut in half

during 2010 and will continue to fall

through 2011 as the economy heals

and banks work with homeowners

via short sales or loan modifications.

The region’s low cost of living will

help offset other economic concerns

until the market fully recovers.

The market will strengthen in

2011 due to residential population

growth and several established and

growing industries such as aerospace,

solar and healthcare, supporting the

recovering Sun Corridor.

Ruth N. Darby is the director of

research services for Grubb & Ellis

Company Phoenix. She has more than

10 years of experience in the

commercial real estate industry. She

can be reached at 602.343.7426. AF

office market forecast


One well-known benefit of an

Energy Management System(EMS) or a Building

Automation System (BAS) is the abilityto help control energy costs. When abuilding without an energymanagement system is retrofitted, it isnot unusual to save 10 to 15 percent ofthe total energy required to operate thebuilding prior to the retrofit. Withutility rebates of up to 50 percent of theproject cost available in most areas it is ano-brainer to consider retrofitting anexisting building.

EMS control systems in existingbuildings must be maintained tocontinue realizing energy savingsbecause individual components inolder systems fail as they age. As thishappens, the building will inevitablydrift out of control and energy usageincreases. In worst case scenarios,mechanical yards and other airconditioning equipment may beoperating 24/7 just as if an EMScontrol system were never in place.

If energy costs have increased andmaintenance dollars are tight, it may betempting to replace some componentsof the EMS control system withcheaper parts as they fail. This is seenmost often in water source heat pump(WSHP) applications, where an EMScontrol board has been replaced with aprogrammable thermostat attemptingto achieve similar results at a reducedcost. This approach is notrecommended because it disables otherbenefits received by maintaining theintegrity of the EMS control system.Consider the following benefits.

Integrated control of the entireHVAC system helps avoid tenantcomplaints and unnecessary servicecalls while maximizing energy savings.

WSHPs controlled by standaloneprogrammable thermostats do notcommunicate with the EMS controlsystem. This may result in locking out

the compressor in the WSHP if there isever a heating or cooling call from thethermostat and the central plant hasbeen turned off by the EMS.If a lockoutoccurs, a service call will likely berequired to restart the water source heatpump. Now what? This condition willonly repeat if the situation is left as it is.

One alternative is to bypass themechanical yard controls so the coolingtower and condenser water pumpsoperate 24/7. This choice negativelyimpacts energy costs and increases wearon the mechanical system. A betterchoice is to replace failed EMS controlswith ones that communicate with theEMS. Keeping the EMS controlsystem intact allows all WSHPsoperate in conjunction with themechanical yard, avoiding unnecessaryservice calls and tenant complaints.

Remote access allows checking asystem to determine what level ofresponse is required. With stand-alonecontrols, someone must physically goto the unit and determine if it isoperational. An EMS control systemwith temperature sensors in thedischarge air of each WSHP unitallows remote checking. With internetaccess, you can log on and checkwithout leaving your office or home,even if it is after hours. If an area iscalling for cooling or heating, thedischarge air temperature of thecorresponding unit will indicate if it isworking correctly or not. Thiscapability saves an incredible amountof time. It will also eliminate servicecalls to your HVAC vendor to checkunits that are functioning normally.

Temperature trending allows you toevaluate and respond to tenant comfortcomplaints. When a tenant commentsabout comfort in the space, it isrelatively easy to trend the temperaturein the space to determine if the tenantsconcerns are justified. The ability toknow if and when temperatures are

outside of the lease requirements willhelp bring a speedy resolution to anycomfort concerns. You can’t do thatwith a programmable thermostat.

Scheduling and temperature setpoint changes are much simpler andfar less labor intense with an EMScontrol system. Global temperature orschedule changes are murderous withstandalone controls. Imagine the laborinvolved to reprogram 100 thermostats(100X15min/60 = 25 hours). An EMScontrols system with global overridecapability would take about 15minutes to reprogram the entirebuilding and is far less mind numbing.

EMS control systems aresignificantly more resistant to tenanttinkering. Standalone controls requireconstant oversight to be sure theprograms and set points have not beentampered with. In one buildingsurveyed, 23 of the 26 programmablethermostats were overridden to run 24hours per day at the tenant desiredtemperature set point. When thebuilding was retrofitted, the ownerrealized a 10 percent decrease in energyusage, even while allowing significantafter hours timed override of thesetback temperatures. Since EMScontrols use a zone sensor withoutprogramming capability, temperatureset points and allowable offsets canonly be changed through the EMScontrols system. This eliminates tenanttinkering with the “thermostat.”

Mark Strahan is a35-year veteran of theHVAC industry andis currently anaccount manager withBurt-Burnett, Inc.,an HVAC mechanicalservice and digital

controls contractor. Mark can be reachedat 480.695.4168 or [email protected]. AF

A Fully-Functional EMS Control SystemKeeps Buildings Green By Mark Strahan

building controls


Filling VacanciesStanding Out in a Tenants’ Market By Justin Himelstein and Chris Walton

Valley Commerce Center, a Fenway Properties building in Phoenix, at 4745-4747 N. 7th Street.Photo courtesy Dale Hameister Photography.

One look at the numbers con-

firms it’s a tenant’s market

when it comes to leasing

office space in Arizona. The amount of

available office square footage in metro

Phoenix is at an all time high, with an

overall vacancy rate of more than 27

percent. Rental rates continue to drop,

with overall rates in the Valley around

$25 per square foot for Class A space

and $19 per square foot for Class B

space. These rates are expected to dip

further, with rental rates bottoming out

sometime in 2011 or early 2012. The

biggest challenge comes in the

continuing lack of demand for space as

net absorption was negative for six of

the first nine months in 2010, and

overall net absorption was only at

30,700 square feet through the first

nine months of 2010.

For building owners, those numbers

may seem insurmountable. But before

you lock the front door and walk away,

you need to know there are tenants

actively looking for office space in

Arizona. However, tenants who are

shopping for office space in today’s

market are smart. They understand

they can upgrade to newer, nicer

locations at prices that are below what

they are currently paying in older,

second-generation buildings. The

trend of tenants looking to upgrade

their address is known as “flight to

quality,” and it is driving the majority

of the deals in today’s market.

While there are plenty of new, never

occupied buildings to pick from, tenants

are not necessarily only shopping these

buildings, but they are using them as a

baseline when they are comparing

properties. As a landlord, you have to

position your vacant office space to

compete with new, first-generation

space if you want to have a chance of

tenants signing leases in your property.

Invest in Spec SuitesInvest in spec suites by turning a

second- or third-generation, 10,000

square-foot space into four or five

smaller suites. “Spec suites” typically

range from 1,200 to 5,000 square feet

and offer a clean, modern office space

for tenants to immediately occupy.

Focus on the details: new paint,

flooring, lighting and common areas

such as lobbies, hallways and

bathrooms. Tenants are looking at all

aspects of a building. They want to see

great landscaping, clean common areas

and buildings with great “curb appeal.”

If your building has a monument sign,

offer sign space as a concession for

tenants whose overall square footage

wouldn’t have been considered in the

past. Other concessions, including free

rent, free covered, reserved parking and

ample tenant improvement monies, are

a reality in today’s market.

Be AvailableOwners who make themselves or a

representative available to meet with

potential tenants during a showing

provide a level of confidence for

potential tenants. California-based

continued on page 34


Fenway Properties, which owns

multiple office properties in Arizona, is

a great example of availability.

Company Owner Larry Jackel makes

it a point to meet new tenants in

person, joining potential tenants in

meetings and tours whenever possible.

He goes above and beyond to work

with brokers and tenants to get a deal

done and make tenants feel

comfortable during the entire process.

Jackel understands the challenges of

today’s economy and offers tenants the

appropriate market concessions.

Show Financial StabilityThe market challenges have created

a new scenario where tenants want to

look at an owner’s financial stability.

Landlords have always required

financial statements from tenants, but

today’s tenants need to know their

property owner is financially strong

and more than capable to cover their

tenant improvements and fully

compensate their real estate advisors.

Rely on Industry Experts Hire the right real estate landlord

brokers to market your property. They

are going to be your best marketing

asset. Their knowledge, industry

connections and market expertise will

get more lease transactions completed

for you. Be sure to also develop

relationships with tenant representation

brokers and make them aware that you

will pay market commissions if they can

bring you a viable tenant. Tenants

actively looking for office space,

whether it’s relocation, renewal or “re-

cast” of their current lease, are going to

look to tenant representation brokers as

the expert for office space needs.Tenant

rep brokers schedule property tours,

analyze lease proposals, lease

documents, provide financial analysis

and guide their clients in making

important real estate decisions.

With large blocks of office space

available and lower rental rates, a

desirable climate and a well-educated

and available workforce, metro

Phoenix is positioned to attract

companies looking to relocate or add

to their current operations. These

factors should improve leasing as the

Valley looks to 2011 and beyond.

Justin Himelstein is vice president and

Chris Walton is senior vice president of

the Office Services Group of Cassidey

Turley BRE Commercial. They can be

reached at 602.954.9000. AF

property managementcontinued from page 33

h o r i z o n t a l l i f e l i n e s

Q U A L I T Y FA L L P R O T E C T I O N

r o o f a n c h o r sw a l l a n c h o r s

Work safe. Stay anchored.Creating a safe workplace for suspended work on the outside of your facility is a critical requirement. It is imperative that your property meet OSHA regulations and ANSI guidelines for fall-protection.

American Anchor staff is uniquely qualified to assist you in meeting today’s demanding and often confusing OSHA and ANSI fall protec-tion regulations. With over 700 completed projects across the county we have the experience you want. American Anchor will work closely with you to insure your property and your contractors are protected from harm.

The finest quality fall prevention equipment in the country

Stainless steel and hot dipped galvanized construction

Inspections and Certifications of existing systems

Professionally engineered and installed during constructionor retrofit to any existing rooftop

Call us for a free evaluation of your current project andavoid costly liability

www.american-anchor.com

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

arizona facilities february 2011

Documents

boma arizona

arizona facilities magazine

arizona facilitiespo

property managers

andthe economy

dormant economy

great recession

advantage of thedown