June 2008 January 2008 September 2007   

Value Through Innovation

By Russ J. Stacey

The résumé for Webcor Builders reads like a "what's where" in the state of California. Some of the notable structures dotting the landscape that Webcor has built include Oracle World Headquarters, the Letterman Digital Arts Center (the first private development in a national park), California Academy of Sciences, Millennium Tower (the tallest concrete structure in San Francisco), San Francisco's St. Regis Hotel, the W San Diego and the Californian on Wilshire in Los Angeles. But it is a current undertaking in Oakland nearing completion that has proven to be a most challenging - and rewarding - venture for Project Director Todd Mercer and his team.

Covering two square blocks on the shore of Lake Merritt, the Cathedral of Christ the Light is a showcase of stunning architectural features and ambitious technology. The cathedral's unique, oval-shaped edifice has been engineered to last for three centuries and to withstand the force of a 1,000-year earthquake. The project includes a distinctive, 1,500-person sanctuary, a mausoleum, conference and residential facilities, office and retail spaces and a subterranean parking garage.

Over 60,000 tons of concrete were poured to create the project, but it isn't the enormous volume that injects Todd's voice and demeanor with pride. "The complex geometrical shapes formed with the concrete are unique and challenging. To create them, we used self-consolidating concrete - something that we had limited experience with on such a large and complex scale. We had to figure out how to use it, how to incorporate it into the project and how to navigate several roadblocks. The result is some of the highest quality and most complicated exposed architectural concrete in the region." For its work on Cathedral of Christ the Light, Webcor was awarded the 2007 American Concrete Institute (ACI) Award for Architectural Concrete for Northern California.

One might think that with that much concrete, the building would look like a fortress. However, much of that concrete has been used to form a curving base for the soaring and luminous sanctuary that sits atop. This inspired space is covered by 1,028 panes of fritted, transparent glass and topped by an oval-shaped oculus roof over 100 feet high. The cathedral's signature roof and ceiling required a unique "top down" erection sequence with a shoring tower used to support the roof before the installation of the permanent support structure. "We were even able to utilize standard scaffolding," Todd explains. The permanent support structure is as unique as the roof and consists of 26 curving glue-laminated ribs made from Douglas fir and 26 straight fir mullions, which had to be painstakingly put into place.

After breaking ground in 2005, the magnitude of the mission is sinking in as they wind down the project to its completion. "What makes it really monumental is the fact that it's going to be here for a very long time and that it's a community building. I've left a part of me in it," Todd says. "I truly believe that there isn't anybody that could have completed this project at this level of quality, in this timeframe and for the same cost that we did. Webcor's expertise in structural and architectural concrete was critical in achieving the desired design aesthetic and award-winning quality that parishioners and community members will be able to enjoy for centuries to come."

Founded in 1971, Webcor is currently ranked as the largest commercial construction firm in California by volume and is consistently ranked among ENR's top 30 general contractors in the nation. The firm, with over $2.4 billion in open contracts currently in place, has built a reputation for cost-saving collaboration with its clients and its forward embrace of technology. With over 50 million square feet of results, Webcor's experience includes commercial office buildings, high-tech corporate campuses, high-density residential projects, parking structures, luxury hotels, cultural facilities and many renovation and restoration projects as well.

Though Webcor has grown exponentially over the years, Todd's passion reflects the company philosophy. "We become builders because part of us wants to know how things work and how things go together and then be involved in the building. Part of it is we want to be able to point and say, 'Look what I worked on. Look what I was a part of.'"

Whether constructing sustainable, cost-effective solutions for a modest-sized arts organization or erecting a skyscraper for a mammoth corporation, each project for Webcor presents its own cadre of interesting hurdles to dissect, overcome and learn from. Or, as Todd put it, "They all have a different spin to them, but each is special for different reasons."

Webcor's corporate headquarters is located at 951 Mariners Island Blvd., 7th floor, San Mateo, CA 94404. Call (650) 349-2727 or visit webcor.com for more information and for their other locations.

June 2008 Commercial Edition Issue

Graphic Reproduction Provides or the Big Picture

By Russ J. Stacey

Graphic Reproduction's roots go back to 1959 when founder and owner Walt Walker started the company. Now a fixture throughout the San Francisco Bay Area, Walker and his team still pride themselves on a cornerstone of their success: delivering what customers need, when they need it. "Recently we had a customer come in on a late Saturday afternoon," he says. "An architect brought in a job en route to his 52nd wedding anniversary. We delivered his job at 8:00 the next morning. We do live up to our word that we're there whenever you need us."

In the middle of the night, on weekends, during holidays - meeting customer deadlines is serious business. "We're committed to having each printing phase of a construction project done on time," adds sales manager Bret Foster. "That's always been our focus, and the equipment and technology that we've invested in supports that commitment."

The company, with three locations, offers a robust variety of reprographic services for the engineering, design, architectural and construction professions - from CAD plotting, document scanning and binding and finishing services to 3-D printer model making. Foster also emphasizes their comprehensive online plan room and document management service. "We can keep construction drawings and documents in an organized system. It's in a digital format, easy to access, easy to customize and password secured. For more elaborate benefits, the online plan room offers what Foster calls a "cradle to grave building concept." Uploaded files can be taken from the conception of a building project to completion. For instance, drawings and specs can be converted to an OCR format to create smart documents, which can be quickly imported and indexed into the system. All project documents can be stored in the system, including project schedules, bid instructions, punch lists, warranties, contracts, RFIs, MSDS, construction site photos and manuals. Contractors can easily perform their takeoffs electronically. Plus all documents are tracked using a Version Control System, which always knows which document is current. A large construction project currently underway in the plan room is the 1,000+ Clark Construction drawings for the John Muir Hospital expansion in Walnut Creek.

Newly acquired copier technologies like the Konica Minolta 1050 allow Graphic Reproduction to run 12x18 paper stock, which few copiers can do. The advantage it has over standard 11x17 sheet-fed copiers is that the extra inch allows for documents that are typically bound on the left side to be viewed much easier.

For speed, the KIP 9000 series wide-format plotter produces 1,200 prints an hour to produce construction bid sets. With its image-enhancement technology, plotting drawings at 600 dpi renders superior quality line and screened information, smoothing out curved lines to eradicate annoying, choppy, half-dots.

And Graphic Reproduction does its part to be green. "We are able to run copies of half-size drawings two-sided, translating to a 50% paper reduction in putting out construction bid documents," Walker says. The company offers wide-format recycled paper, and their eight large-format plotters, the KIP 7000 and 8000 series, are Energy Star-rated as well as being the only 100% toner-efficient machines in their class, meaning there is no toner waste.

Always looking to the future, Graphic Reproduction was the first reprographic service in Northern California to introduce - and is still the only one to possess - a 3-D model-making printer. An invaluable tool for developers, planners, architects and builders, it produces three-dimensional models of a building project, whether in the conceptual phase or during construction.

For customers who can't or choose not to make a large investment in copy or plotting equipment, Graphic Reproduction offers on-site facilities management services. They can install wide-format copiers, and either train the customer on how to operate the equipment or have one of their technicians do it. "The advantage is the customer doesn't have a huge capital outlay on a piece of equipment that'll be outdated in a year or two," says Oakland branch manager Dave Bethea.

Graphic Reproduction has 34 vehicles to deliver their many services. "The largest dispatch fleet for pickup and delivery," Foster says. "We service the entire Bay Area, plus Sacramento, Stockton, Santa Rosa and San Jose. We use an automated GPS system for monitoring pickups and deliveries that also improves response-time efficiency. We have a sophisticated job order tracking system for scheduling and tracking orders while in production."

"Plus we have a lot more equipment, so the job order turnaround time on larger projects is much quicker compared to other shops," Bethea says. "And we have the expertise."

Graphic Reproduction has three locations: 1381 Franquette Ave., Bldg B1, in Concord; 496 Natoma St. in San Francisco; and 2327 Union St. in Oakland. Call their Concord location at (925) 674-0900 or visit graphic4u.com for more information.

June 2008 Commercial Edition Issue

By Wayne M. Mascia

Looking for new offices or other facilities for your business? Whether your need is for expansion or you are looking for your first space, sublease facilities are and always have been a viable option. Sublease space represents facilities offered by other businesses that, for a variety of reasons, find such space in excess of their current needs.

Typically, technology companies find they have overestimated their space needs because anticipated expansion did not occur, or any of a hundred possible economic or business calculations simply did not materialize. They find themselves locked into excess leased space they don't need that represents an often expensive drain on resources.

For both overall space available and for the subcategory of sublease space, Silicon Valley is no different than any other market - perhaps just more so. Availability is a constantly changing picture, subject to economic shifts and the realities and perceptions of those businesses needing and supplying commercial real estate space.

Our data indicates that for the last five years, the amount of sublease space on the market has varied from a high of 44% of total space - the situation in 2002 during a time of corporate downsizing, buyouts and general consolidation - to a current low of 21%, reflecting economic expansion and buoyant expectations.

Because of the obvious pressure on businesses needing to sublease excess space, such facilities generally provide very competitive rates and sometimes unusual opportunities and therefore should not be overlooked. At the same time, subleases do require careful attention to the details and documents used, to be sure you get what you expected.

Unlike direct-lease transactions of a lessor and lessee, a sublease involves three parties: the master landlord, the lessor and the sublessor. All parties have their own competitive interests in the sublease negotiations. As brokers representing the tenant, we always recommend that our client engage the services of an attorney to review the master lease and sublease documents to assure their own interests and needs are met.

As brokers having negotiated numerous subleases, we have found that several issues consistently surface during discussions that should be reviewed carefully by the tenant. First is to thoroughly review and understand the master lease, which will continue to rule your occupancy. It may be, for example, you who were verbally assured the lease expiration date was fi ve years hence, when in fact the lease says three years. There may be restrictions on use of the building, which would impact your intended business use. If you later find out about these potential limitations, which are locked into the master lease and cannot easily be changed, any bargain may be problematic.

In reviewing the master lease, you should be alert to several other typical issues. For example, in case of default, make sure the lessor cannot terminate the lease so long as you continue to pay the rent to the lessor. You will want to be sure that as a sublessee you have the right to sublease your space should your own situation change. Finally, you will want to be sure that when you surrender the premises at the end of your sublease, you are clear about your responsibility of returning the space to its original condition.

These cautionary notes notwithstanding, as you begin exploring the market with your broker, the inclusion of subleased space could present some intriguing opportunities.

June 2008 Commercial Edition Issue

A Growing Trend in Storm Water Management

By Robia S. Chang and Carolyn Nelson Rowan

Communities are increasingly using an approach known as "low-impact development" (LID) to control storm water pollution. Instead of making large investments in complex and costly engineering strategies for municipality-wide storm water management, LID manages storm water through lot-level design strategies that mimic natural hydrology and processes. LID is customized by development and implemented on site by developers. LID addresses runoff close to the source, for example, by disconnecting roofs and paved areas from traditional drainage infrastructure and directing runoff to natural areas such as vegetated open spaces, which look like landscaped areas but are actually engineered systems that use plants and soil to trap and treat various contaminants. Other common LID practices include rooftop gardens, tree planter boxes and the use of permeable pavement in low-traffic areas, parking areas and walking paths.

For the most part, LID has been a voluntary approach, promoted by localities and adopted by developers. But recent developments in California permitting signal an increasing trend to require implementation of LID techniques.

Earlier this year, the San Diego Regional Water Quality Control Board approved a storm water runoff permit that will require the San Diego County, the Port District and the county's 18 cities to increase the testing and monitoring of runoff, street sweeping and sewer-line cleaning. Significantly, the renewal permit also requires the use of LIDs to control storm water pollution. Specifically, the permit requires routing of runoff from impervious to pervious areas and the use of permeable surfaces for portions of low-traffic areas. All sites greater than one acre will be subject to these same permit conditions within the next three years.

Similarly, a draft permit issued to Ventura County by the Los Angeles Regional Water Quality Control Board requires that all new development and redevelopment projects integrate LID principles into project design. The permittees, including the County Watershed Protection District, the Ventura County and 10 cities within the county, are to develop a LID Technical Guidance Document for use by planners and developers within 18 months of the issuance of the permit.

Most recently, on May 1, 2007, the San Francisco Bay Area's draft permit, which covers 76 municipalities, was released for review. As expected, all "regulated projects" must integrate LID principles. "Regulated projects" include commercial development projects that create 10,000 square feet or more of impervious surface (collectively over the entire project site), excluding interior remodels and routine maintenance or repair. Beginning the fourth year after permit adoption, the square footage threshold will drop to 5,000 square feet.

These regional developments in storm water management signal widespread change within California. As the focus of long-term planning shifts to include a more thorough review of environmental impacts, developers should expect that all state and local jurisdictions regulating storm water will require LID storm water pollution control for future developments.

June 2008 Commercial Edition Issue

By Perry A. Tabor, P.E.

The California Historical Building Code (CHBC) provides specific regulations (alternative building codes) for the preservation, restoration, rehabilitation, relocation or reconstruction of qualified historic buildings or properties so as to preserve their original or restored architectural elements and features. At the same time, it provides for the safety of occupants and for the reasonable accommodation of people with disabilities.

While these alternative solutions are intended to protect historic buildings from the adverse impact of certain requirements of the regular building code, they also translate into cost-effective incentives as described by the California Office of Historic Preservation.

A "qualified historical building" is defined as any building, group of buildings, district, site or object that is listed by any level of government as having historic importance. This also includes those resources listed in the state of California's evaluated inventory, and given any level of significance other than "not eligible." Also included are ships and railroad rolling stock of historical significance.

The CHBC recognizes and endorses the need - on a case-by-case basis - to find and adopt reasonable alternative situations where strict compliance with established statutes or regulations would jeopardize the historic building's appearance or rehabilitation of economic viability (i.e., full upgrade of building).

The "triggers" for full upgrading to current standards, with respect to length of vacancy, change of occupancy or percentage of value of the work proposed, and which exist in other codes, are not recognized by the CHBC, which concentrates instead on the preservation-sensitive resolution of genuine safety considerations.

Structural/seismic upgrading issues are governed by the CHBC, permitting design based on real values (performance) of archaic materials and solutions based on engineering principles and professional judgment (providing a framework within which unique solutions may be custom tailored to the specific problems related to each unique historic resource), rather than solutions limited to code-based (prescriptive) formulas. This flexibility usually translates into a higher degree of retention of the historic fabric.

You may very well benefit if your building qualifies as a "historical building." Places to research whether your prop- erty "qualifies":
- The Office of Historic Preservation - computer lists of the National Register and California Register
- Local planning office - The planning department is usually the best place to find local lists
- Local heritage or history commissions
- Local neighborhood or preservation organizations - These groups may have access to official lists, but can't create official lists
- Local, state and federal agencies that promulgate projects - CalTrans, Department of Water Resources, Department of General Services/Real Estate Services Division, local water agencies and local public works departments

June 2008 Commercial Edition Issue

By Wayne Mascia

On a drizzly day in mid-October, all the brokers in the office bundled onto a bus for a tour of all the new commercial projects under construction and sites planned to be initiated in 2008 and beyond. Intended as more than a simple inventory update, the tour was to give us the collective opportunity to gauge and analyze the trends looming on the near-term horizon and their impact on the landscape and economies of the region.

As confirmed by a view from just about any upper-floor window in the Valley and certainly from our tour bus windows, numerous high-end office projects of three, four and five stories are now under construction and will add 2.1 million square feet of new space in 2008 alone. Spearheaded by developers Jay Paul, Menlo Equities, California Bavarian Construction and others, such projects signal the new building boom is more than a rumor. Among the trends in a market already mature is the fact that much of the new construction is taking place where previous facilities built in the late 1970s and early '80s must be demolished to make way for campuses of two- and three-story buildings. Led by veteran Sobrato Development Companies with 516,000 square feet in Santa Clara and Sunnyvale Town Center, such new facilities are supplementing the previous tilt-ups that characterized these markets in the past.

Even more dramatic, Tishman-Speyer, Hunter-Storm and others are eyeing eight office towers totaling 400,000 to 800,000 square feet in Santa Clara's North First Street area. Such projects not only contain the of- fice towers that are the symbols of the new development dynamic, but also major hotels (in this case featuring 230 rooms) and retail space on the same site.

When it comes to such mixed-use development, few signal the new dynamic more than the area for the city of San Jose's "Vision 2030" in the city's North First Street corridor. A truly bold project on approximately 230 acres, loosely bounded by North First Street, and highways 237 and 101, it envisions 32,000 homes and apartments, retail, schools, entertainment and services within a short distance of the facilities in which the inhabitants work. Like comparable visionary urban projects across the country, Vision 2030 will be characterized by higher density construction, new lifestyle patterns and more intensive utilization of the available area. Realization of the Vision 2030 project will require the demolition of 4 million square feet of existing buildings, but in the larger context of the Silicon Valley, more than 5.5 million square feet has already been razed to make way for residential and supporting development of the new urban infill. While issues of balancing public and private responsibility for costs and other details remain, developers and city officials do seem both committed and enthusiastic.

Certainly, we were all stunned to realize that many of the new projects planned necessitated the destruction of existing facilities, many of which were less than 30 years old. In light of today's environmental sensitivity where recycling is viewed as a virtue, it can be difficult to comprehend that the life of many Silicon Valley buildings is but 30 years. On the other hand, changing space configurations have rendered them obsolete by design and shifting function. Further, the value of the land itself, which has increased from $2 a square foot in 1977 to $60 today, obviously places a monumental premium on obtaining higher use to maximize return on investment.

Our tour disclosed that many of the new projects are staggering in scope and ambition, yet again promising to change the landscape of Silicone Valley commercial real estate. Look at the numbers: 15 new high-rise office buildings totaling 5 million square feet; two hotels with a total of 340 rooms; 15 retail projects totaling another
1.3 million square feet; and countless infill residential units covering the gamut of lifestyle options. While the last building boom in the mid-1980s consisted almost exclusively of single-story buildings suitable for manufacturing, this building boom is characterized primarily by high-rise office buildings designed to attract engineering and business users in close proximity to supporting amenities. Commercial designs in addition to green features are likely to be architecturally imposing, giving the Valley a new face and vibrancy.

As exemplified by products of the new building boom, Silicon Valley promises to become taller and denser, yet ironically more human and environmentally friendly. The new commercial facilities address shifting technology industry demands for working environments that stress creativity while addressing employee needs like never before. Further, these commercial properties are very consciously being developed in an overall community context that, unlike the previous often myopic attention to economic function alone, will see a greener, more livable, more productive Silicon Valley.

January 2008 Commercial Edition Issue

In the Business of Architecture

By Kay Wilthew

A company builds its reputation by focusing on the core areas in which they excel and by "making the main thing the main thing." For architectural firm MBH Architects, the "main thing" is delivering smart, perceptive and intuitive customer service. Communication is the key: When the client's needs are clear, expectations are more easily managed. MBH's approach to communication with their clients is simple; they listen.

"Business is sort of an elusive thing for architects," notes Dennis Heath, one of the principals and founders of MBH. "I've read recently that many architects don't gravitate at all toward business, because they feel it's almost sinful to be a business person if you're a 'true' architect. I think that's awfully naïve." Success hinges on the ability to interpret the customer's objectives and confirm their goal is attainable; then doing everything possible to realize that goal. "Some architects believe the projects are all about them, and in reality it's about the client. And if it's a one-of-a-kind project, it's the client who really has the vision. The architect is there to help them execute it, but ultimately it's the client's vision."

Co-founder John McNulty shares belief in this concept. When McNulty and Heath left San Francisco architectural firm Gensler 18 years ago to form their own company, they adopted many of the same successful philosophies. "We were exposed to a certain way of producing architectural services that was founded on solid business fundamentals. Our goal was to set up a first-class company that would be able to produce high-quality architectural services to businesses that valued our contribution. We would then be able to manage the entire process, from conceptual design through to the project's completion," states McNulty. "It's just amazing how much responsibility the architect has. We must have the chassis in place to stand a chance at making it work successfully day after day."

MBH Architects is well known and respected throughout the Bay Area. Their portfolio includes some of the most prominent restaurant, retail, housing, hospitality and commercial companies in the country and around the world. Their project map extends to 42 states and six countries, spanning three continents. Regardless of location or scope, MBH proactively manages projects from concept to permit filing to construction. Heath understands exactly what their clients hope to accomplish. "They want their project completed and open. If it's a retail center, they want the cash register ringing, and if it's a commercial office building, they want the space leased."

Whether that space is commercial or housing, today's consumer expects sustainable and environmentally responsible elements. Efficient lighting, recycling water, recycling wastewater, effective landscape elements and sprinkler systems all translate into a positive environmental impact. "It's not anything singular that's dramatic, it's the compilation of several logical things over a long period of time that will be effective," McNulty explains. "We're not doing it because it's trendy and green; we're using sustainable elements because it makes sense."

The major challenge from a development standpoint, according to Heath, is urban sprawl. "Green design is great, but I think the mentality is still lagging when it comes to density. People are going to keep moving here, but I don't think our density limits really address that. We're starting to see transportation-oriented developments, and I think that's great, but there must be more height, more density, whether it's for office buildings or retail or housing, so we can minimize the sprawl." The solution, says Heath, is to utilize building sites more efficiently. "Let's go up rather than going out into the Valley. There is an impediment to putting square footage on property. Why put a five-story residential project when you can put up 10, 15 or 20 stories? We should be making developments more dense."

Exciting new product types offer fresh options for efficient development. MBH thrives on designing alternatives such as lifestyle centers; upscale mixed-use retail and restaurant spaces reflecting a vibrant, unique character. "The nice thing about lifestyle centers is that in the early stages you begin to work with the client to see what kind of story you're going to tell. That's how lifestyle centers begin," says McNulty. These developments contrast sharply to homogenous malls and prosaic retail centers by integrating an imaginative mixture of local flavor and historical significance into the design.

"Lifestyle centers usually incorporate a fairly large piece of land," McNulty says, "and that location has a history." MBH determines the reason a site was chosen and, from an architectural standpoint, what that area represents. "We spend a lot of time in the library researching the history and materials that come from that location. We don't want to contrive a design and patronize an area; we want to create it with realism. So we may take elements of a firehouse, or the city hall, or use the limestone that's quarried in an area close to the development. We use those pieces, whether it's in the paving or the light fixtures. They all have a kind of synergy with that particular location."

This attention to detail distinguishes MBH's reputation as a creative leader. Heath and McNulty attribute MBH's award-winning designs and industry success directly to their talented staff. The motto, "It's our people who make great places," encapsulates the company's confidence in the skill, vision and energy of its people. MBH haunts regional architectural colleges and career fairs to enlist the best and brightest graduates. "We're very impressed with the kids that are coming out of school. It gives us a feeling of comfort that the firm, and the profession in general, will be in very good hands," McNulty says. This welcome enthusiasm is tempered with mentoring on the subtleties of customer service. "They embrace technology, and what we try to give them is a little taste of reality as well."

MBH Architects love what they do. Management promotes a culture of philanthropy, fun and positive energy. They treat their customers, partners and local officials with respect, and receive the same consideration in return. And to those businesses looking for an architectural firm that elevates customer expectations to the highest priority, MBH has just one thing to say: We hear you.

MBH Architects' Northern California office is located at 2470 Mariner Square Loop in Alameda, CA 94501. Their Southern California office is located 1300 Dove Street in Newport Beach, CA 94660. To reach the Northern California office, call (510) 865-8663 or visit mbharch.com for more information.

Testimonial

"I attended about 12 years of BIA LAC breakfast and lunch meetings and have never had a main speaker topic so well covered as you did today. The audience whom you treated to your overview of the Tribal/Cultural Resources process as it relates to the development industry thought so too. I have never seen so many people listening, engaged and asking questions afterwards. I too learned a few new things today. Thank you for doing this. Now let's get the county of Riverside to follow the law."

-- Borre Winckel, Executive Director, BIA of Southern California, Inc., Riverside County

January 2008 Commercial Edition Issue

By Wayne Mascia

The biggest story in Silicon Valley commercial real estate in 2006 was the record dollar amount paid for large building portfolios. Continuing in early 2007, the trend is shifting ownership from many of our local developers to large national and institutional owners. The trend within the trend is that the majority of buyers are paying more than the asset's economic value as based on inplace rents.

The buyers support their decisions by pointing to an expected upturn in the market and saying they will be able to raise rents 25% for new tenants and lease renewals for existing tenants. As a result, tenants who want to remain in buildings recently included in a portfolio sale can not only expect increased rents, but also increased taxes as a result of the inflated sales price.

In 2006, from a tenant's perspective, we sat on the sidelines watching the transfer of properties across the valley, secure in the thought that the complex in which our offices reside would not be sold and that we would not suffer the same fate as tenants of buildings that had sold. We were forced into the game in March, after discovering our complex was indeed coming to market and that in all likelihood we would be dealing with a new owner before summer.

Our company offices are housed in the McCandless Towers complex, a pair of 13-story, 211,000-square-foot buildings visible from Highway 101 as you approach Great America Blvd. The first tower was completed in 1984 and is a multi-tenant building. The second tower was completed in 1998 as a built to suit for Informix, which was later purchased by Network Associates. The project was developed by the late BirkMcCandless, who created a design and quality that was ahead of its time. We have been in the complex for 13 years.

When we discovered the buildings would be for sale, we approached our current landlord and exercised our option to renew. We felt it easier and to our advantage to negotiate our option with owners that we have known for many years rather than with new owners who we might not know - and worse - might not be totally familiar with this market. We recommend this same course of action to our clients in such situations. If you have an option to renew your lease, make every attempt to do this before the sale. In the absence of an option, approach your landlord and ask to renew your lease now and extend the term for several more years.

We feel we have dodged a bullet with regard to future rent but are reminded that we must still pay our pro rata share of the increased taxes on a building that has increased in value by 75% - a situation all tenants will have to deal with if the building in which they reside is purchased. We also are concerned about additional changes we might encounter if the new owners need to increase income. After all, the building was built by the Birk McCandless, who had his offices in the complex and therefore made sure it met his high standards. What standard will new owners want to maintain?

Will they institute a fee to use the lap pool, work out facility and exercise room? Will they replace with video screen and phone the affable security guard who opens your office door for you when you forget your key? Will they charge for the underground parking? Will they put on as fabulous a holiday party as McCandless Company has done in the lobby of the building every year?

Pot luck, anyone?

September 2007 Commercial Edition Issue

By Marsha Cheung Golangco

The ancient philosophy of feng shui (pronounced in Chinese "fung shway") has become mainstream in America. Every day, more and more people hear about this concept and desire to know more about it. Even real estate mogul Donald Trump has used the services of feng shui experts. "It is important to adhere to the principles of a large group of people who believe in these concepts," he said in an interview on national TV several years ago. "And if they believe them, that is good enough for me."

Feng shui has been popular in California for decades, particularly in Metropolitan Los Angeles area and the San Francisco Bay Area. This is mainly due to the high concentration of Asian homeowners who prefer to select subdivisions with houses that are considered as "favorable" or "good" feng shui. They believe that the flow of the positive chi, the universal life force, will enhance the quality of their lives. Because of this cultural belief, it broadens the goals of many California builders who find themselves increasingly integrating feng shui principles in their developments.

The concept of feng shui is multifaceted. Many aspects are metaphysical or mystical and sometimes perceived as superstition. Some are practical and commonsensical and can be used as a resource for building the highest-quality environment. With the continuous public demand for green building, feng shui principles can also be applied effectively in every stage of development for conservation and beautification purposes.

Feng shui is a complex network of principles involving both art and science with many interpretations. The metaphysical aspects deal with astrology and astronomy, which many people believe influence human affairs. Fortune telling and celestial calculations are involved in these disciplines. Other traditional feng shui disciplines involve the physical environment, including the atmosphere and the earth, using symbolism, meanings and signs for their interpretations.

From a practical standpoint, feng shui is a systematic approach in building a network of communities. The applications range from building an individual house or building to subdivision development and city planning. Feng shui can be used in every aspect of the building process, including land planning, site development, landscaping, architecture and interior designs. Although feng shui is a complex concept, it boasts of a simple purpose of creating harmony between people and their environment. From my years of experience in working with builders in California, feng shui has been used effectively and economically as a technique to enhance new homes, resulting in higher sales and greater profitability.

September 2007 Commercial Edition Issue

By Perry A. Tabor, P.E.

For over 20 years, we have been actively collaborating with building industry colleagues, acquiring valuable information that we look forward to sharing in this column. Our goal is to help introduce information in our monthly articles that can have a direct and positive impact on your future projects.

We are proud to serve as the structural engineering experts for Builder/Architect, featuring our monthly "Structural Design Corner."

The topics we will bring to you will include design concepts, innovations and trends, as well as practical considerations that can bring value to a wide variety of projects.

Our first column topic is "Structural Engineers Can Do More than Just Calc." More specifically, we will highlight the importance of having your structural engineer serve as a collaborative partner; actively participating from early conceptual design, into design development and construction documents, continuing through construction administration.

Architects are unquestionably the most visible design professional associated with any building project. Who and what a structural engineer does is much less visible to the public and his/her name is very rarely remembered. The satisfaction of efficiently transforming a concept into a tangible object that serves and shelters its occupants is the engineer's reward.

Builders and architects have welcomed a change from the old industry standard in which the structural engineer only became involved in a project after the architect has completed the fully dimensioned drawings with building elevations and sections, having limited input during the design phase and almost no involvement once actual construction began.

Today, structural engineers continue to be more fully involved as an integral part of the project team. There are certain stages of involvement that are particularly important to consider.

CONCEPTUAL DESIGN PHASE

Collaboration meeting(s) between the architect, owner/developer, structural engineer, geotechnical and other engineering professionals during the conceptual design can translate into substantial construction savings. This is the stage when the structural engineer can help by proactively discussing the most viable foundation and building assembly, as well as by identifying other challenges.

DESIGN DEVELOPMENT PHASE

Continued periodic collaboration between the owner/developer, design team and the general contractor can further refine construction savings. Together, they can help to identify opportunities for practical plan modifications, as well as identify potential challenges (e.g., grading, sound, etc.). For example, in a recent project design meeting, the team agreed to adjust the store front opening by eliminating one window panel, which reduced header member sizes, as well as changed the store front lateral system to a shear wall panel system from an inverted column (steel) system. This simplified construction, reduced coordination of different trades (steel fabricator and erector), avoided potential schedule delays and reduced building costs (reducing footing sizes and reducing man-hours/material costs). This is just one example of how a minor change translated into more efficient and economical construction.

On small projects, a schematic design meeting may be more appropriate than the conceptual and design development phase involvement.

CONSTRUCTION DOCUMENT PHASE

As the design is evolving, periodic meetings should be held at milestone stages with the critical team members. Architects have an invaluable opportunity to enlist the participation of the structural engineer, truss manufacturer, framing contractor, MEP engineer/contractor and sound consultant during superstructure discussions. It is also important to enlist the participation of the geotechnical, structural engineer, concrete contractor and civil engineer during foundation discussions.

Their joint collaboration (value engineering) can help to identify appropriate cost saving assemblies prior to finalizing the building design, as well as create an opportunity to introduce alternative assembly or design considerations much earlier than by value- engineering during the construction process.

On small projects, a preconstruction meeting during which the project team briefly can interface may be more appropriate than the above listed construction documentation phase outlined meetings.

CONSTRUCTION OBSERVATION PHASE

Periodic site observations by the structural engineer during various structural stages of construction are critical and will vary by project type, size and complexity. At a minimum, site observations should be conducted at foundation reinforcement, rough framing and interior/exterior/roof shear, as well as after the HVAC/plumbing/electrical installation.

The engineer can often assist to identify noncompliance structural assembly and offer immediate solutions/directions to rectify the assembly, avoiding potential construction delays and reducing their clients' potential liability.

In addition to fully engaging structural engineers throughout the above described phases, it is also important that the structural engineer be encouraged to present viable design innovations and alternatives. Structural engineers can be forward-thinking in implementing new concepts and communicating new methodologies. Becoming familiar with and evaluating alternative materials can often lead to introducing design options that promote greater flexibility, easier installation, reduced delays and lower construc- tion costs overall.

We've highlighted certain design and construction stages in which to involve your structural engineer. These stages can certainly be further elaborated in future articles as well. Do you currently engage your engineer as a collaborative partner to the fullest extent? If not, we encourage you to join the increasing number of building participants that wholeheartedly embrace this valuable concept of increased involvement. By doing so, you can yield cost savings and greater efficiency while producing structurally sound homes and buildings.

September 2007 Commercial Edition Issue