2012 ANNUAL REPORT BUILDING OWNERS AND MANAGERS ASSOCIATION OF CHICAGO™ 2012 BOMA/CHICAGO OFFICERS + BOARD OF DIRECTORS 2012 BOMA/CHICAGO STAFF WHO WE ARE PRESIDENT Lance Knez Michael Cornicelli The Building Owners and Managers Association of Chicago Robert M. Six Hines Executive Vice President (“BOMA/Chicago”) is the premier trade association repre- senting the commercial office building industry in the City Zeller Realty Corporation Kevin M. Purcell Lisa Bluhm of Chicago. As of January 2012, BOMA/Chicago member- MB Real Estate Director of Education VICE PRESIDENT ship included over 260 commercial office, institutional, and Robert Quast Edward M. Bury public buildings, constituting over 143 million square feet George Kohl Director of Marketing & Communications CBRE, Inc. Lincoln Property Company of rentable office space or more than 75% of all the com- Beth Halat mercial square footage in downtown Chicago, as well as over J. Michael Reilly Director of Membership 170 allied suppliers and professionals that provide goods and TREASURER Behringer Harvard T. J. Brookover Paul Jost services to those buildings. BOMA/Chicago members include Buck Management Group, LLC Paul Saccone Comptroller 96% of downtown Chicago’s Class A office buildings, 77% of Able Engineering Services the Class B office buildings, and 30 governmental, BOARD OF DIRECTORS Ron Tabaczynski educational, and institutional facilities. Richard R. Saulig Director of Government Affairs Alicia M. Berg CBRE, Inc. The mission of BOMA/Chicago is to enhance the value and Diana Zamora Columbia College impact of the commercial real estate industry and its profes- Lenny Sciascia Manager of Information & Data Services sionals through thought leadership, advocacy, professional Harvey B. Camins Tishman Speyer Properties Means Knaus Partners LP development, research and civic engagement. Katherine K. Scott To accomplish that mission, BOMA/Chicago provides Patrick J. Caruso U.S. Equities Realty, LLC L. J. Sheridan & Company members with extensive advocacy capabilities, educational Philip C. Stafford programming and networking opportunities in seven major Robert DeMarke Colliers International areas: energy and sustainability, building codes and stan- Transwestern dards, education and professional development, diversity and Diana M. Vaughan corporate social responsibility, labor relations, research and Thomas G. Glavin General Services Administration Glavin Security Specialists government affairs. Charles W. Wagener Thomas M. Kennedy Lillibridge Healthcare Services, Inc. Consultant Stephen V. Zsigray, Jr. Thomas Kienzle Jones Lang LaSalle Americas, Inc. Golub & Company LLC 2 INFORMATION A MESSAGE FROM THE PRESIDENT BOMA/CHICAGO CONTINUES LEADING THE NATO SUMMIT’S STEPS FORWARD TOWARD A TO DEMONSTRATE STRENGTH, EMERGENCY PREPAREDNESS COMMERCIAL SMART GRID SOLIDARITY AND LEADERSHIP Shortly after Chicago was selected to host the Summit last For five years we’ve championed the concept of a commercial IN CHICAGO’S BUSINESS COMMUNITY May, BOMA/Chicago took decisive measures to prepare smart grid designed to give office buildings real-time data members so they could protect the real estate assets they’re on electricity usage. BOMA/Chicago has contracted with an Business leaders are expected take charge of charged with managing as well as the people who work in Affiliate Member vendor to launch a pilot smart grid starting the situation. This should be the case when them. We presented best practices through meetings and in 2013. This new information technology will be combined things are working well, and especially electronic communications, and we partnered with the with the traditional electric power infrastructure to improve when extra effort needs to be exerted and Chicago Police Department and government officials to share operations and extend greater control to buildings, which tough decisions need to be made to make things right. information and news in real-time. What was learned from should not only result in improved efficiency, but also lower During the two years I’ve served as President of BOMA/Chicago, this experience will make our members better prepared for electricity costs. our organization and the city have witnessed a gradual im- any future emergency. These developments and many others are the result of a lot of provement to the business climate and the overall economy. hard work from BOMA/Chicago leadership, its members, its From a purely commercial real estate perspective, developers FIRST IN PROFESSIONAL staff and its outside consultants. Collectively, our dedication, have announced the intent to construct a number of new of- DEVELOPMENT OPTIONS talents and drive have done much good for the organization, fice towers downtown, and office vacancy rates have declined BOMA/Chicago ranks at the top among BOMA federations our membership and the overall Chicago office building industry. for five consecutive quarters. Major corporations, many of anywhere in the entire world for offering education courses, them technology firms, have leased large blocks of office workshops and seminars. And, we’re consistently one of the Concluding my term as President is a bittersweet experi- space in Chicago’s central business district. And, the new top two in the number of professionals taking RPA/FMA ence. I have greatly enjoyed the opportunity to work with the administration at City Hall has demonstrated its commitment designation courses. This year, we opened the door on an en- representatives from our more than 260 Building Members to working with the commercial real estate and business com- tirely new interactive education series called “Ask the Expert.” and 175 Industry Affiliate Members—the foremost suppliers munities to keep Chicago vibrant and competitive. These mid-day workshops feature a panel of experts who of services and products in the office building industry. provide insight that participants can put to use immediately. However, rest assured that I plan to continue working We all should take notice of the progress made in recent tirelessly on behalf of BOMA/Chicago. There’s still much months; but we’ve not totally recovered from the recessionary ECONOMIC IMPACT STUDY COMPLETED work that needs to get done. forces that gripped the economy, starting in the last decade. Consequently, the Board of Directors, our volunteer leaders Work was completed on an extensive research report Very truly yours, and I have had to work harder and do what we believed was in designed to gauge and analyze where BOMA/Chicago build- the organization’s best long-term interests to keep ings rank in six key areas. The study was the first fresh-up of BOMA/Chicago moving forward. The commitment, dedica- the original economic impact study conducted since 2006. tion, diligence and passion demonstrated by this group are The results revealed member buildings continue to fuel very gratifying to witness first hand. Chicago’s economy through property tax revenues, jobs and consumer spending—and also lead the nation in sustainability. Robert M. Six Reflecting back, our labors provided value to our members through initiatives and programs that took place in 2012, BOMA/Chicago President which laid the foundation for others that will debut next year. Here are four that I believe stand out. PRESIDENT’S MESSAGE 3 ADVOCACY Since its founding in 1902, BOMA/Chicago has been the leading role in preparing building members for any emergency situation State of Illinois. In 2012, BOMA/Chicago took a major step advocate for the Chicago office building industry. In fact, over the or logistical demands in connection with the NATO Summit held forward in this initiative by selecting a technology partner for a past several decades, many laws and initiatives—some landmark May 20–21. Leadership and staff leveraged their long-standing 40-building pilot to be rolled out before year end. This ground- in nature, others less well-known—were championed or guided relationships with the Chicago Office of Emergency Manage- breaking program will provide participating member buildings by BOMA/Chicago. ment and Communications, Chicago Police Department, federal with greatly enhanced information about their energy usage and authorities and other public and private sector organizations to new opportunities to reduce energy costs and to monetize those Here are four ways BOMA/Chicago works as a proponent for prepare. BOMA/Chicago held three open security meetings to efforts. The aggregation of energy usage data will also better en- the interests of office buildings in Chicago. convey best practices and sent out dozens of communications able member buildings to participate collectively in new revenue before and during the Summit to ensure members were informed opportunities through sophisticated and lucrative demand re- DRIVING PUBLIC POLICY as events unfolded. sponse programs that would not be available to them individually. Lobbyists and staff keep a close watch on existing and pending legislation to monitor developments at City Hall and in IN THE WEEKS LEADING UP TO ECONOMIC IMPACT STUDY Springfield that may impact tax codes, inspection practices and Later this year, BOMA/Chicago will unveil a detailed study that other regulations governing how office buildings are managed. THE SUMMIT, BOMA/CHICAGO measures the impact of BOMA/Chicago building members in BOMA/Chicago’s efforts and expertise in those areas have WAS RECOGNIZED AS A six key economic areas: market share, labor, rents and operat- earned the association a seat at the table with