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Case Study – Successfully Navigating a Seismic Retrofit

Property Name: National Distribution Center

Property Location: 1022 W. Bay Marina Dr. National City, CA 91950

Property Description: Industrial, totaling 335,000 square feet

Meissner Jacquét Commercial Real Estate Services, headquartered in San Diego, CA, provides commercial real estate construction coordination services to all property types, including office, retail, industrial, and commercial property owner associations, throughout Southern California.

Recently one of Meissner Jacquét’s Senior Commercial Property Managers worked with the ownership and a large tenant at National Distribution Center in completing a complex seismic retrofit of 250,000 square feet and a 33,000 square-foot tenant improvement project.  Seismic retrofitting is the modification of existing structures to make them more resistant to seismic activity, ground motion, or soil failure due to earthquakes. 

Client Requirements

The U.S. General Services Administration (GSA), a major tenant at National Distribution Center, was planning a large tenant improvement, including structural improvements, in their 33,000 square foot space and discovered during the permitting stage that per lease terms they were required to ensure that the space was seismically retrofitted according to the City and State specifications prior to initiating the tenant improvement. 

Process

Meissner Jacquét provided construction management oversight by successfully navigating the almost year-long, complex seismic retrofit/tenant improvement / structural improvement projects.  In addition to coordinating and providing valuable direction to the project’s key players, including the designer – HTK Structural Engineers, structural & seismic engineer – A. B. Court & Associates, contractor – Harvey, Inc., ownership – Port of San Diego, tenant – GSA, and city – National City, Meissner Jacquét succeeded in reducing the total project cost of the seismic retrofit by enacting value-engineering methodology into the retrofit strategies and techniques.  Thereby increasing the function and reducing the cost while ensuring retrofit performance objectives were met, such as increasing strength, increasing deformability, and reducing deformation demands.  As well as lowering ownership’s cost, the completion of the seismic retrofit and the subsequent tenant improvement / structural improvements, enabled ownership to lease additional space with a long-term tenant and benefitted the other tenants by affording them with a seismically retrofitted building, at essentially no cost and little interruption.     

Result

By examining the project as a whole and enacting value engineering, Meissner Jacquét completed the seismic retrofit project at half of the original proposed cost, completed the tenant improvement / structural improvement project, and leased additional space to a long-term tenant, all while staying within the proposed timeline.

Sources:

Meissner Jacquét Commercial Real Estate Services

commercial property management, commercial property management companies

Case Study – Commercial Property Owners Association Management

Meissner Jacquét Commercial Real Estate Services provides professional commercial property owners association management to over 25 associations, representing over 1,300 acres, throughout San Diego, Los Angeles, Orange, Riverside, and Imperial Counties. Below are Case Studies outlining currently managed commercial property owner associations including, San Diego Spectrum, Bressi Ranch, and TR Office & Retail.

commercial property management, commercial property management companies

Case Study 1

Property Name: San Diego Spectrum Owners Association

Property Location: 8695 Spectrum Center Court, San Diego, CA 92123

Property Description: Commercial Owners Association with 32 Owners and 188 Acres

San Diego Spectrum Owners Association consists of over 30 owners and spans 188 acres.  The former General Dynamics site is located in a prime commercial location at 8695 Spectrum Center Court in San Diego, CA.  The Association is a high profile property, containing diverse property types including retail, light industrial, manufacturing, office space, and residential.  Meissner Jacquét has managed the Association since its inception in 2000 and continues to manage the Association today.

Case Study 2

Property Name: Bressi Ranch Association

Property Location: Southeast corner of Palomar Airport Road. & El Camino Real, Carlsbad, CA

Property Description: Commercial Owners Association with 40 Owners and 129 Acres

Bressi Ranch Commercial Association is part of a Master Association that contains retail, residential, recreational facilities, light manufacturing, research and development uses, parks, trails, and corporate office space.  This development is one of Carlsbad’s largest Planned Developments, consisting of 585.1 acres, of which Bressi Ranch Association consists of planed industrial on 129 acres.  The planned industrial areas comprise a part of the central industrial core of the City of Carlsbad and are bordered by regional arterials, which are located in close proximity to Palomar Airport and lie within the McClellan-Palomar Airport Influence Area.  Meissner Jacquét worked closely with Bressi Ranch Association to assist in the creation of their CC&R’s, By Laws and preliminary budget prior to their incorporation.  Meissner Jacquét has managed the Association since its inception in 2004 and continues to manage the Association today.

Case Study 3

Property Name: TR Office & Retail Association

Property Location: 406 9th Avenue, San Diego, CA

Property Description: Commercial Owners Association with 30 Owners and 1 Acre

TR Office and Retail Owners Association consists of 1 acre, equating to approximately 27,000 square feet, of urban / industrial office suites built above the historic TR Produce warehouse directly across from PETCO Park in Downtown San Diego, CA. The building also includes 19,000 square feet of ground floor restaurant and retail space.

Meissner Jacquét was retained early on as the Association Manager to work closely with the then developer Cruzan Monroe to develop the governing documents, assist in new buyer issues, and prepare preliminary budgets.  Meissner Jacquét has managed the Association since its inception in 2006 and continues to manage the Association today, ensuring that the project is maintained in a first class manner.

Client Requirements

Upon takeover of management of a commercial property owners association, the most important functions of management are to create a long-term stable environment for the owners of the association to conduct their business and to act as community ambassadors for the association.

Process

Meissner Jacquét’s key areas of focus for management of commercial property owners associations include:

Initial Review of Governing Documents

  • CC&R’s and By Laws
  • Articles of Incorporation
  • Historical Board of Directors Meeting Minutes
  • Prior Annual Reports

Communication with Board

  • Provide a leadership role in conducting Board Meetings
  • Establish financial goals and parameters to accurately budget operating expenses
  • Timely response to and completion of requests
  • On time and accurate reporting

Accounting

  • Review current accounting and establish baseline data
  • Establish a billing schedule for dues
  • Resolve pre-existing accounting issues
  • Bring all dues current

Vendor Contract Services

  • Retain professional vendors for cost-effective maintenance and property services
  • All vendor work monitored closely – in some instances services can be modified, consolidated, performed by a more cost-effective provider, or possibly eliminated.
  • Annual contract review and re-bid to ensure maximum cost savings
  • Maintain all Association insurance policies

Result

Meissner Jacquét considers each property owner within an association our client. Therefore, resolving their problems, answering their questions and offering constructive operating solutions are critical aspects in our management goals. This philosophy is intended to project professionalism on the part of the Board of Directors and management, and foster a positive working relationship between property owners, the Board, and management.

Sources:

Meissner Jacquét Commercial Real Estate Services

retail property management, office property management

San Diego County Mid-Year Review – Office, Retail & Industrial Markets

Office

Since the end of the recession, Class A office continues to experience decreasing vacancy rates at a rate faster than Class B space. The submarkets with the lowest vacancy rates include UTC and Del Mar Heights (where speculative development is taking place), as well as Sorrento Mesa (where the biotech industry continues to thrive).

A notable trend in the marketplace is that rents are increasing significantly. Leases that were signed at the bottom of the market are now expiring, leading to increases to market, which is consequently driving up rents and property values.

Another notable trend in the San Diego office market is the redevelopment of older office buildings (and functionally obsolete industrial buildings) into high-tech office space. With tenant improvements at about $50 per square foot, landlords are able to achieve rents about $0.50 per square foot higher than traditional office space. There has not been much speculative office construction in San Diego but the buildings that are being developed have asking rents of at least $4.00 per square foot per month.

As we continue into the second half of 2015 much of new leasing and sale activity is projected to occur in the I-15 Corridor. According to market research and data from JLL, over 750,000 square feet of office space has been signed or are in negotiations. An additional 600,000 square feet has been purchased by owner-users. Factors such as larger space, lower rents, and employment base will continue to drive activity in this market.

Overall, the San Diego office market continues to improve, and is expected to do so over the next 12 to 36 months.

Industrial

Despite increasing rental rates and very low vacancy rates, market participants are still cautious regarding the San Diego industrial market. San Diego industrial prices have yet to return to pre-recession levels, and there is not enough demand to spark speculative development in the near future like other property types. This is partially due to the fact that land itself is expensive in San Diego, which requires high rents to justify development.

That said market conditions are expected to remain positive as the continual decrease in supply drives lease rates upward. The Otay Mesa submarket is expected enjoy the benefits of the continuing recovery. With available land to develop, increasing demand with U.S./Mexico operations (maquilladoras), and the opening of another border crossing, this submarket will continue to be desirable as the barrier to entry is lower than other northern or central San Diego submarkets (where rents and values are higher).

Challenges that the industrial market face include corporate relocations that cause additional inventory to come online, manufacturers moving operations to Tijuana as infrastructure improves, repositioning of industrial buildings for high-tech office use as that particular industry continues to boom in San Diego, and satisfying tenant needs as older buildings need substantial upgrades to appeal to tenants requiring ESFR sprinklers and heavy power or gas lines.

Nevertheless, as the overall economy and infrastructure improves so too will the San Diego industrial market in the near future.

Retail

Compared to the rest of the country, the San Diego retail market is one of the strongest with low vacancy rates and strong fundamentals. There has not been much change in either rental rates or vacancy rates, indicating stable market conditions. However, this is forecasted to change based on interviews with market participants and IRR’s market research.

It is estimated that 2.6 million square feet of retail space will added to the market over the next two years. This includes projects like One Paseo (a proposed, controversial mixed-use project that may have 250,000 square feet of retail space) and Westfield at UTC (an existing mall slated to add 750,000 square feet).

Since the great recession, the San Diego market took five years to recover the 1.2 million square feet of negative retail absorption. Since then, the market is experiencing its highest positive absorption in eight years. Increasing demand coupled with low construction should continue to keep vacancy rates relatively low.

From a rental standpoint, community retail centers experienced the largest increase over the last six months, while regional mall and neighborhood retail centers experienced relatively stable conditions. Desirable submarkets such as La Jolla and the Gaslamp Quarter in Downtown San Diego will continue to attract tenants and command significantly high rental rates ($5.50 to $7.50 per square foot, NNN).

Overall, the outlook for the San Diego retail market is positive. Conditions are the best they have been in the last six years, and it is projected that conditions will continue to improve over the next 12 to 36 months.

Sources:

IRR-logoIRR – San Diego

JLL

commercial real estate property management

How Well Will Your Business or Commercial Property Weather A Disaster?

Disasters are inevitable. They come on suddenly, in a variety of forms, and cause significant damage – earthquakes, floods, fires, power outages, broken pipes – and can be man-made or natural. So how can you prepare your building, your tenants, your staff, and your stakeholders for the unknown?

Calculate Risk

Your first step should be to calculate the financial risk across the entire business and prioritize your business continuity plan accordingly.

Your plan should start by first addressing the most critical components that will need to get up and running after a catastrophic event. It’s likely that communications will top that list, but what comes next may be unique to your business and building. The list must also factor in outside invested organizations and the surrounding community public service entities.

Business Crisis Management Checklist

What does a basic business crisis management checklist consist of?

Keep it Uncomplicated

  • Documentation is key and should include standards, policies, flowcharts, equipment, manuals, and crisis management trees per location or business unit.
  • Take a principles-based approach by using outlines
    • Identify and define a range of emergencies and how to respond to each
  • Align the plan with the culture of your organization
    • Keep in mind that some individuals respond to written material, while others favor verbal or hands-on demonstrations and incorporate all of these styles into your plan

Supply Chain

  • Define and identify the critical suppliers to your business and the possible problems they may have in servicing your organization.
    • What would be the impact if they could not supply you with the goods and services you need to keep your business operating?
    • Where else can you obtain what you need to effectively operate?
    • How can you make sure you will have access to the specialized machinery or facilities essential to run your business (off-site storage, systems redundancy, emergency services, etc.)?
    • Do you have systems in place to ensure that suppliers get paid no matter what?
    • What is the continuity of supplies from utility service providers (fuel, gas, electricity, water)?

Contingency Plan

  • Identify the key components of your organization that are crucial to keep it running.
    • What components can be halted, relocated or delayed?
    • What data is most critical to the business and how can you protect it?
    • What back-up arrangements do you have in place for your most critical resources (IT systems, communication systems, contractors, power supply etc.)?
    • Do your employees have the ability to work remotely if necessary?
    • Who have you identified as your key staff who will keep the most critical elements of the business going?

Crisis Team Design

  • Find a champion (Executive Level Leadership or Management Team) to help reinforce business continuity planning across the organization.
  • Appoint an emergency team and assign roles and responsibilities.
    • The team should meet on a regular basis – not just during an emergency.
    • Together they should determine:
      • Clear cut recovery operations within defined timeframes and processes.
      • Assessment of the condition of the staff, the building, any product and/or service, and how quickly the organization can resume operations.

Communication

  • Identify the stakeholders in your organization and how you can work with them to support each other in times of crisis.
    • These can include key clients, employees, the property management firm, vendors, insurance providers, community organizations, and industry/business associations.
  • Consider involving the news media when the event involves potential threat to surrounding areas or physicals injuries – Appoint and train a company spokesperson who understands how to work with the media.
  • Determine a method of contact and communication on and off site

Training

  • Train staff in basic emergency preparedness and schedule regular training exercises
  • Run practice scenarios
  • Develop debriefs after incidents (real or simulated)
  • Become actively involved  in community response groups

Insurance

  • Check your insurance coverage to ensure that business interruption and supply chain disruption are covered
  • Make sure your data is also insured

Building Crisis Management Checklist

 

Preventative Maintenance

  • Have specialized professionals perform building inspections on a regular basis, including review of such systems as:
    • Roofs
    • Walkways
    • Parking lots and structures
    • Windows and doors
    • HVAC
    • Wiring and electrical
    • Plant machinery
    • Back up generators
    • Redundancy systems

Prepare Occupants

  • If they need to evacuate the building, make sure they know:
    • How much time they will likely have,
    • What they should (and should not) take with them,
    • What the preferred emergency exit route is,
    • Where they should go once they have left the building,
    • Who will be directing them (fire officials, police, company-appointed individuals),
    • What plans are in place for their return
  • If they cannot safely evacuate, make sure they know the following:
    • Where all medications and first aid materials are located (should be placed in waterproof bags and kept in a low-humidity, cool location),
    • Where emergency supplies can be found.

Identify an Emergency Shelter

An emergency shelter should be designated and/or designed either in a lower level of the building or off premises (in the case of a catastrophic disaster).

  • Make sure it:
    • Is easily accessible for all building occupants,
    • Contains all supplies as recommended by FEMA and The Red Cross,
    • Has a communication system setup,
    • Serves as a place for the community and the media to gather.

Crisis Management

The good news is that business owners and property operators don’t need to navigate disaster preparedness or recovery alone. Your commercial property management team should be a key participant in the planning and – when needed – execution of your successful crisis management strategy.

Meissner Jacquét Commercial Real Estate Services, a San Diego-based commercial property management company, employs crisis and risk management techniques to ensure that our clients and their commercial real estate assets are protected. Tim Meissner states that, “Each property management team verifies that all tenants, vendors and contractors are appropriately insured in accordance with the property business plan.  In addition, Meissner Jacquét maintains appropriate levels of corporate liability insurance and employee insurance.”

When a disaster occurs, ensure you are not found unprepared to respond to basic emergencies and – in the worst case – crippling catastrophes. Your business and your property simply cannot afford it.

 

Sources:

  • Meissner Jacquét Commercial Real Estate Services
  • FEMA
  • Be Prepared California
  • SBA
  • Red Cross

 

property management commercial, commercial properties management

Go with the Flow on California’s State-Mandated Water Restrictions

California is currently in a pervasive, 4-year long drought. The historically low precipitation affecting the state and the dire predictions are now the new normal.

The state’s plumbing structure relies heavily on runoff from the Sierra’s snow, and this year that crucial snowpack is only 5% of its normal rate. This past winter was the driest winter on California record – EVER.

On April 1, California’s Governor, Jerry Brown, announced a mandatory 25% reduction in water use, going into effect July 2015. Potentially alleviating measures are in the works – from the $35 billion that passed the House to mitigate California’s situation, to the numerous desalination projects in discussion, to the entrepreneur  who is putting a plan in place to deliver 10 million gallons of Alaskan water to a buyer in California.

More locally, the San Diego County Water Authority (SDCWA) is focused on stabilizing the constancy of the region’s water supply and distributing those supplies in a cost effective and environmentally responsive manner. A statement from SDCWA’s website, “ To maximize the reliability of the region’s water supply, the Water Authority is executing a long-term strategy to diversify the region’s supply sources, make major investments in the region’s water delivery and storage system, and improve water-use efficiency.”

But the measures that may hold the most water for the commercial real estate market is the commitment by all leaders in California government and water organizations to adopt an intensive water conservation program that incorporates not just an across-the-board awareness and restrictions enforcement, but also includes rebates and incentives.

What’s Available in the Rebate/Incentives Pipeline

  • City of San Diego

Grass Replacement and Micro-Irrigation Rebate Programs for commercial landscaping were opened up to businesses a few months ago and had an overwhelming response. More than 350 residents and businesses will receive rebates to replace more than 500,000 square feet of turf. While the funds have been depleted for these programs, the City will once again start accepting applications on July 1, 2015.

Offer Details:

Turf Replacement Receive rebates for removal of grass (lawn) that is replaced with waterwise plant material (artificial turf does not qualify). Rebates available for residential and commercial customers.
Micro-irrigation Rebates for converting an overhead spray sprinkler system to low application rate micro-irrigation (i.e., drip, micro-spray, etc.). Rebates available for residential and commercial customers.

 

  • San Diego County Water Authority

The 20-Gallon Challenge offers free landscape surveys and has rebates for weather-based irrigation controllers (from $230), synthetic turf (50 cents per sq. ft.), and rotating nozzles (up to $4 each).

  • SoCal Water$mart

SoCal Water$mart offers rebates for weather-based irrigation controllers (from $80 per controller for an acre or less; $25 per irrigation station for larger sites), rotating sprinkler nozzles (from $4 per nozzle), and synthetic turf (from 30 cents per sq. ft.), high-efficiency toilets, washers, WBICs (Smart Controllers), grass replacement, rotating sprinkler nozzles, rain barrels and other devices.

  • California American Water

California American Water provides water surveys for their CII and Large Landscape customers at no cost. The organization’s website states, “The surveys are for businesses, institutional facilities, or non-residential customers with dedicated irrigation or mixed-use meters to improve water use efficiency. A certified conservation expert will find water and money saving opportunities by evaluating the property’s current water operating equipment and recommending high efficiency water and energy saving equipment where applicable.”

In addition, California American Water lists these commercial products that qualify for a rebate:

  • High Efficiency Toilets – (Toilets must be water-sense certified to qualify)
    • $50/multifamily toilet
    • $100/Commercial Toilet
  • High Efficiency Toilet Flushometer
    • $100
  • High Efficiency  Clothes Washers
    • $250
  • High Efficiency Urinal
    • $200
  • Weather-based Irrigation Controller
    • $25/station
  • Pop-up Spray Heads or Rotating Nozzles
    • $4/nozzle (Minimum of 15)
    • $13/set Large Rotary Nozzles (Minimum of 8)
  • Turf Rebates
    • $1.50/per square foot (synthetic turf does not qualify)
  • Connectionless Food Steamers
    • $485/compartment
  • Air-cooled Ice Machines
    • $1,000
  • Cooling Tower Connectivity Controllers
    • $625
  • Cooling Tower pH Controllers
    • $1750
  • Dry Vacuum Pumps
    • $125/0.5 HP; maximum of 2HP
  • Laminar Flow Restrictor
    • $10
  • In-Stem Flow Regulator
    • $1/each; minimum qty is 25 regulators
  • Soil Moisture Sensor System
    • $25/sensor
  • Plumbing Flow Control Valves
    • $5/valve; minimum of 20
  • Pool Cover
    • Manual $50
    • Mechanical $200

All of these offers require applications and/or registration – be sure to reach out to the organizations directly to get more information.

Go with the Flow

How does this affect commercial property owners and operators?

Meissner Jacquet Commercial Real Estate Services, a San Diego-based company, participates with NAIOP and BOMA, two leading commercial real estate organizations, to further their efforts in educating and spreading awareness of water reduction to clients, tenants, vendors and employees.

Jerry Jacquet, a Principal at Meissner Jacquét, says that, “the commercial real estate industry plays a key role in adopting and encouraging a water conservation culture amongst property owners and occupiers.  By following the path set by authorities and experts and taking advantage of available rebates and incentives, seemingly costly water-use reduction improvements performed proactively can positively affect the future bottom line.” Plus, it will showcase a commitment and dedication to environmental best practices.

Sources :

  • Meissner Jacquet Commercial Real Estate Services
  • Water Education Foundation
  • The San Diego Water Authority
  • City of San Diego
  • California American Water
  • Metropolitan Water District of Southern California
  • World Economic Forum

A Road Map for Property Operators to Minimize Water Usage

California in a State of Water Emergency

On 5/5/15, the State Water Board adopted the 25% mandatory water conservation regulation, applicable to overall potable urban water use statewide. The required savings could amount to more than 1.2 million acre-feet of water over the next 9 months.

 

Driest Years in California’s Recorded History

2012 – 2013 – 2014 – 2015

What’s Prohibited for Everyone

Effective 6/1/15, the emergency regulation identifies how much water communities must conserve based on their average residential water use, per person per day, using the benchmark of last summer. Every person should be able to keep indoor water use to no more than 55 gallons per day.

The Regulation will Save Water By:

  • Replacing lawns with drought tolerant landscaping
  • Creating a consumer rebate program to replace old appliances with efficient models
  • Requiring campuses, golf courses, cemeteries, and other large landscapes to make significant cuts in water use
  • Prohibiting new developments from irrigating with potable water unless water-efficient drip irrigation systems are used, and banning watering of ornamental grass on public street medians

 

How it Affects Communities

Local water agencies will determine the most cost effective and locally appropriate way to achieve their mandated water conservation standard, ranging between 4% and 36%. The likely result being cutting back on outdoor watering.

Drought Facts

  • Statewide, the snowpack water content was 20% of its average level in January 2015.
  • The State’s two biggest reservoirs, Shasta and Oroville, are both at 57% of historical levels.

How it Affects Commercial, Industrial & Institutional Properties

Those properties that are not served by a water supplier (or are self-supplied, such as by a groundwater well) must either reduce water use by 25% or restrict outdoor irrigation to no more than 2 days per week. No reporting is required but they must maintain documentation of water use and practices.

Enforcement

Local agencies can fine property owners up to $500 a day for failure to implement the water use prohibitions and restrictions.

Ways to Extend Water Resources

Conservation – Recycling – Storm Water Capture – Desalination

How You Can Save Water

  • Water early in the morning or later in the evening when temperatures are cooler. Save: 25 gallons.
  • Choose a water-efficient irrigation system, such as drip irrigation. Save: 15 gallons.
  • Landscape with drought-resistant trees and plants and use mulch to reduce evaporation and keep soil cool. Save: 20-60 gallons per 1,000 sq. ft.
  • Use a broom or non-water dependent device to clean driveways, sidewalks and parking lots. Save: 8-18 gallons per minute.
  • Encourage employees to report leaks and problems with plumbing and irrigation equipment.
  • Replace old toilets and urinals with WaterSense® labeled models, or consider waterless urinals. Plan ahead and budget for replacement of plumbing fixtures.
  • Request a free landscape audit from your local water supplier, landscaper or property manager.
  • Monitor your water bill monthly for unusually high use and check water meters for leaks.

Did You Know?

Commercial property managers can help property owners and operators navigate the drought by coordinating water use audits and planning for renovations by appropriately allocating and budgeting funds. To learn how to be water wise and which rebates or incentives are available for your property, contact a real estate manager at Meissner Jacquét Commercial Real Estate Services.

Sources:

Saveourwater.com

California Environmental Protection Agency, State Water Resources Control Board

United States Environment Protection Agency

Meissner Jacquét Commercial Real Estate Services

commercial real estate management

San Diego County in 2050 – A Glimpse into the Real Estate Landscape

LEAD San Diego’s HOT TOPICS featured an event targeted on answering the question: What will the San Diego region look like in 35 years? The program was led by Clint Daniels of the San Diego Association of Governments (SANDAG), who provided an overview of how San Diego is expected to change and where the growth is expected to occur. Below are the big takeaways on what real estate will look like in 2050.

Where San Diego will grow

SANDAG projects that approximately 333,000 housing units will be built in the next 35 years. Of these units, about half will be developed in the City of San Diego with major growth occurring downtown and in central San Diego along University Ave. and El Cajon Blvd. Growth is also projected to occur in the unincorporated areas of the County; almost 20% of the new housing units are projected to be located in areas like Ramona, Valley Center, and Alpine. Areas that are not expected to experience growth are the North County coastal cities; Del Mar, Encinitas, and Solana Beach have imposed strict regulations on development, so virtually no new housing is projected over the next 35 years.

What will be built

As evidenced by current trends, most of the development in San Diego County will be focused on multifamily projects. Of the 333,000 units, about 80% will be multifamily (apartments, condominiums, etc.). In fact, it is projected that 100% of new housing development in San Diego County will be multifamily development.

The reason for this trend is that the region has essentially run out of land. As of today, about 7% of the County’s 2.7 million acres is developable (189,000 acres), and about one-third of the County has been dedicated as open space. The majority of developable land (both for single family residences and multifamily residences) is in Otay Mesa, Carmel Valley, and the outskirts of Escondido. Due to a lack of land, developers are focusing on infill projects or mixed-use developments.

commercial real estate management

Other takeaways

– California is currently experiencing a drought, but according to the San Diego Water Authority this is not expected to curb development through 2050. There is not enough of a risk to cap development in the short-term, but the question that remains is, what will be the cost of water in the future?

– The San Diego craft beer scene is not projected to significantly expand due to lack of water. With breweries like Stone and Green Flash opening operations on the East Coast, it’s projected that the rate of breweries expanding in San Diego County is expected to decline.

Summary

Of the projected 333,000 housing units to be built in San Diego County by 2050, about half will be developed in the City of San Diego and the remaining in the unincorporated areas of the County. Of the 333,000 new construction units, about 80% will be multifamily (apartments, condominiums, etc.), a trend due to limited amounts of developable land. Remaining construction will focus on infill projects or mixed-use developments.

Sources:

IRR logo IRR – San Diego

 

 

 

  • SANDAG – LEAD San Diego
commercial real estate management san diego

Take The Temperature of Your Workspace – Is It Safe?

Ah! Spring has sprung!

Spending time outside during changing seasons has a surprisingly strong influence over our general mood and energy level. But most of us spend about 75% of our day, 5 days a week indoors – – – working.

What effect does our workspace environment have on our physical and mental well-being?

Due to tighter regulations and standards, the days of unsafe, unhealthy and unregulated workplaces are gone. But standard operating procedures, equipment updates, and mandates are still crucial in keeping workers healthy.

Two regulations in California aim to assist in disclosing new mandates regarding energy use.

California AB 1103

California AB 1103, a Nonresidential Building Energy Use Disclosure Program, mandates that a building’s energy use data and previous year ENERGY STAR rating (as determined by the state board) be disclosed to prospective buyers, lessees and financial lenders prior to the sale, lease, or financing of an entire building.

This regulation came into effect in January 2014 for buildings with a total gross floor area measuring over 10,000 square feet, and will be (as of July 2016) necessary for all buildings with a total gross area of over 5,000 square feet, to be compliant with all stated energy regulations and environmental standards.

Title 24

Also in July of 2014, updated 2013 Standards for Title 24, California’s Building Energy Efficiency Standards for Residential and Nonresidential Buildings, went into effect to reduce California’s energy consumption by incorporating new energy efficiency technologies and methods.

Per ALTA Environmental, with few exceptions, all nonresidential buildings must integrate “manual light dimming and on/off controls, tuning, automatic daylighting (photosensor), and demand response controls in buildings over 10,000 square feet. Use-specific occupant sensing controls are required for a variety of different occupancy use cases. In particular, during a renovation project, existing buildings must meet the new Title 24 Lighting Standards when the project affects at least 10% of existing lighting fixtures, or at least 40 fixtures are modified-in-place.”

What Else Can Germinate Workplace Wellbeing?

In addition to adhering to energy efficiency standards, the goal of many workspace designers is to remove distracting elements from the workplace. By keeping the ambient temperature at predictable, steady levels and controlling lighting, workers are more productive and energy use is more efficient.

But what key component is missing in a majority of workspaces? The answer is natural light. Natural light has been shown to increase happiness and thereby, should positively affect productivity levels.

Bringing in the Green

In addition to natural light, fresh research says that indoor plants benefit workspaces, and people. Natural, living greenery plays a critical role in providing a pleasing, peaceful and rewarding environment.

Studies indicate that live indoor plants:

  • Enhance indoor air quality
  • Reduce sick building syndrome
  • Contribute to overall well-being
  • Can boost performance, productivity and creativity
  • May decrease stress and temper negative feelings
  • Can mitigate noise
  • Enliven your business’s appearance

The Norwegian State Oil Company shared the findings of a key study they conducted to exam the effect indoor plants had on the general health of a group of office workers. A quote from the study states, “Data from about 12 different symptoms were collected, including fatigue, headache, dry facial skin and dry skin on the hands, coughing, and eye irritation. After this time, half of the group was provided with a selection of common interior plants and half had none. Over three months, considerably fewer health problems were reported by those people with plants. Fatigue and headache fell by 30% and 20% respectively, hoarseness and a dry throat fell by around 30%, coughing by around 40% and dry facial skin fell by around 25%.”

Plants can also be effective at reducing office noise levels. If the types of plants and their specific location in the workplace are chosen carefully, they can act as sound buffers.

Besides reducing noise and increasing health, indoor plants can improve your business’s perceived personality too. Companies – especially those that have clients who visit often – should invest in a green plant program. Placing plants in the entry areas, offices, meeting rooms and other public spaces gives the office a welcoming, comfortable, and caring appearance.

Pushing Out the Noise

We’ve talked about the calming, cleansing benefit of plants and how they can minimize noise. But plants are hard pressed to stifle the grating, unharmonious noises that can shatter the concentration of workers and cause them real long-term harm – especially in warehouse and production environs.

The Centers for Disease Control and Prevention (CDC) tells us that, “Occupational hearing loss is one of the most common work-related illnesses in the United States. Approximately 22 million U.S. workers are exposed to hazardous noise levels at work, and an additional 9 million are exposed to ototoxic chemicals. An estimated $242 million is spent annually on worker’s compensation for hearing loss disability.”

NIOSH recommends, “… removing hazardous noise from the workplace whenever possible and using hearing protectors in those situations where dangerous noise exposures have not yet been controlled or eliminated.”

Since 2004, the Bureau of Labor Statistics (BLS) has reported that over 125,000 employees have suffered substantial, irreversible hearing loss. The BLS notes that neither surgery nor a hearing aid can help correct this type of hearing loss. Even experiencing short-term, loud noises can bring on a temporary change in hearing or a ringing in your ears (tinnitus). These effects may go away after you leave the raucous area. However, if you work in that type of atmosphere every day the damage may be debilitating.

Jarring noise can also be unsettling mentally. It adds to stress, breaks concentration (which can cause a safety hazard in itself) and interferes with needed communication. Accidents increase and employee discomfort leads not only to health issues, but also to high employee attrition rates.

Warning signs that your workplace may be too noisy:

  • You hear ringing or humming in your ears when you leave your workspace.
  • You have to shout to be heard by a coworker a short distance away.
  • You encounter temporary hearing loss at your workspace.

So how loud is too loud – legally?

According to the standards set by OSHA, “Legal limits on noise exposure in the workplace are based on a worker’s time weighted average over an 8 hour day. With noise, OSHA’s permissible exposure limit (PEL) is 90 dBA for all workers for an 8 hour day. The OSHA standard uses a 5 dBA exchange rate. This means that when the noise level is increased by 5 dBA, the amount of time a person can be exposed to a certain noise level to receive the same dose is cut in half.”

Ensure Employee Safety and Satisfaction

Maintaining compliance with state and local laws and regulations, ensuring building safety and employee comfort, and staying informed of the latest technology trends to ensure profitability can be a full time job for any property owner. Meissner Jacquét Commercial Real Estate Services, a San Diego-based commercial real estate management firm, employs energy management and sustainability practices in its service offerings to clients to address these issues.

Energy conservation and efficiency efforts help reduce property owners’ operating expenses, improve tenant retention by increasing tenant comfort and productivity, and increase asset value. Jerry Jacquet, a Principal at Meissner Jacquét, says that “our property managers identify all sustainable opportunities in order to position our clients’ assets so that they remain competitive in the marketplace, while meeting ownerships’ sustainability goals.”

Entrusting your real estate asset to a qualified, professional commercial property manager will not only keep your building up to standards, but will positively affect your bottom line.

Sources:

Meissner Jacquét Commercial Real Estate Services
Alta Environmental
Green Plants for Green Buildings
First Choice Hearing

commercial property management san diego

Case Study – India Street Design Center

 

Property Name: India Street Design Center

Case Study: Construction Coordination

Property Locations: 2151 – 2171 India Street, San Diego CA 92101

Property Description: Mixed Use – Office / Retail at 28,000 Total Square Feet

Client Requirements

In March of 2014, H.G. Fenton Company, a private investment firm, contracted with Meissner Jacquét Commercial Real Estate Services to provide professional commercial property and construction coordination services to India Street Design Center. This mixed-use, multi-tenant project, with storefront retail on the ground floor, and office on the second story, is located in the desirable neighborhood of Little Italy in the Downtown San Diego submarket. The objectives for the account include providing superior property management services, while completing a $1 million construction coordination project.

Process

Upon takeover of management in 2014, Meissner Jacquét enacted procedural commercial property operations, including instituting appropriate vendor contract services, preventative maintenance programs, resolving physical plant issues, accounting and reporting, responding to tenant needs, and accomplishing ownership’s goals and objectives.

In Q2 2015, the key goal of ownership is to execute a $1 million tenant improvement project, for which Meissner Jacquét provides the construction  coordination services. Included in the scope of work is the demolition and renovation of 14,000 square feet of existing office space, which is being completed by commercial general contracting company, Harvey, Inc.

Due to the project’s advanced age, many structural aspects and systems require compliance, including the electrical, HVAC, and roofing systems. In addition, the façade of the property will be renovated with new paint, awnings and windows, while the interior lobby and common area restrooms will be updated with new flooring, painting, and address ADA compliance issues.

Equally important to ensuring adherence to regulations and safety standards is tenant attraction and retention. Meissner Jacquét, performing leasing oversight, and leasing agent, Douglas Hamm of UrbanCalifornia, secured a single user, DeskHub, to occupy the entire second floor. DeskHub is a flexible office space that provides the premier network for entrepreneurs looking for a collaborative work environment.

Once the tenant improvement project is complete, the space will feature multiple meeting rooms and collaborative spaces, as well as desks and offices that can accommodate over 100 people. The space will be a best-in-class facility for entrepreneurs throughout San Diego County.

Results

Due to Meissner Jacquét’s teamwork approach to construction coordination by working with the owner, tenants, general contractor, subcontractors, and vendors, the completed $1 million tenant improvement and building improvement projects will deliver modernized retail and office spaces, attain attractive rents, and produce a high performing property in the exceedingly sought after Little Italy / Downtown submarket.

Sources:

Meissner Jacquét Commercial Real Estate Services

construction management services

CRE Market Drives Construction Costs for Office, Warehouse and Retail

As construction in San Diego increases across all sectors, so too does the cost of construction.

The following data from Marshall Valuation Service (MVS), provider of building cost valuation data, summarizes how the average building cost per square foot has changed over the past five years for three property types: Class A Office (glass and steel construction), Class B Distribution Warehouse (concrete tilt-up construction), and Class C Retail Store (masonry construction).

Average Building Cost PSF over Past 5 years

1

Over the past five years, San Diego construction costs have increased at a rate between 3% and 4% overall. The average cost per square foot remained relatively flat in 2011 and 2012, which coincided with an overall stable commercial real estate market.

However, as market conditions began improving over the last two years, construction costs began increasing as well. To date, only Class B construction has experienced an increase over the previous year; Class A and Class C’s average building cost per square foot declined slightly in 2015.

In addition to historical construction trends, IRR San Diego also provides MVS’ forecast for the next three years.

The following table shows the average cost of construction through 2018 for the same property types.

Average Cost of Construction through 2018

2
Overall, construction costs are expected to increase through 2017 as the San Diego market experiences continually improving conditions, though note that no significant increases in construction costs are expected over the next three years.

In 2018, construction costs are forecasted to decline, which generally falls in line with analysts’ projections of a decline in the overall economy. The decline in construction costs is expected to be in the 3% to 6% range depending on property type.

Summary

After a relatively stable market in 2011 and 2012, construction costs are expected to rise through 2017 as economic conditions improve and construction is financially feasible. While it is projected that costs will decline in about three years based on the forecasted decline in the economy, stable to increasing market conditions (as well as construction costs) are expected through that time.

Sources:

IRR logo IRR – San Diego

 

 

 

Marshall Valuation Service