You are on page 1of 24

VOLUME 2

IDAHO BUSINESS REVIEW

PROPERTY

2016

INSIDE
Property management
news and trends in Idaho

Management

CBC ADVISORS
www.CBCadvisors.com | #CBCAdvisors

The Intermountain Wests


largest privately held
Commercial Real Estate firm

A PROPERTY
MANAGER
WITHOUT A
CPM
IS LIKE A
SKSCRAPER
WITHOUT AN
ELEVATOR.
Upcoming Events

January: Economic Update


with Brian Gerber
Thursday, January 14th,
11:301:00 at the Stonehouse
February: Commercial Update
with Angie Emmons
Wednesday, February 10th,
11:301:00 at the Stonehouse
March: Multi-Family Update
with Moe Therrien
Wednesday, March 9th,
11:301:00 at the Stonehouse
March: Investment Real Estate:
Financial Tools (FIN402)
Tues & Wed, March 15th & 16th

Trust a CERTIFIED
PROPERTY MANAGER
to Maximize The Return
On Your Investments.
A CPM has:
Expertise on salvaging, maintaining, and marketing your real
estate assets
Pledged a commitment
to the highest ethical standards
Proven experience in maximizing ROI in any economic climate

Meet Idahos IREM CPM Members:


Fred
Tricia
Kali
Tammy
Danielle
Nancy
Jake
Renee
Steve
Tim
Mindy
Andy
Dianne
Joe
Victoria
David
Melani
Andrew
Cathleen
Jeff
Ben
Karen
Justin

Beguin
Callies
Carringer
Cox
Dahlberg
Dudek
Durtschi
Fender
Fender
Graver
Gronbeck
Haskell
Hunt
Iglesias
Johnson
Johnson
Moore
Propst
Rosera
Shaffer
Shalz
Thomas
Vogel

CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM
CPM

Beguin Enterprises, Inc.


Complete Property Management
Prime Commercial Real Estate
Cushman Wakefield
Thornton Oliver Keller
Jacob Grant Property Management
Verity Property Management, Inc.
Verity Property Management, Inc.
Prime Commercial Real Estate
Hawkins Companies LLC
American Property Management, Inc.
Syringa Property Management, Inc.
Thornton Oliver Keller
Hawkins Companies LLC
The Boston Group, Inc.
Hawkins Companies LLC
Park Place Property Management
Perrine Investments
Thornton Oliver Keller
Thornton Oliver Keller
Thornton Oliver Keller
Colliers International

For questions regarding our events, education, or


membership, please contact irem107sec@gmail.com
or visit our website at www.iremboise.com

IBR masthead_Layout 1 2/10/15 2:03 PM Page 1

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

| 3

IDAHO
For property managers, time
BUSINESS for a customer service tune-up
REVIEW
Volume 2 Number 1 January 15, 2016

855 W. Broad Street, Suite 103 | Boise, ID 83702

PUBLISHER
Bill Cummings 503-802-7202
bill.cummings@thedolancompany.com

REGIONAL VP
Joni Brooks 503-802-7202
joni.brooks@journalrecord.com

EDITOR
Anne Wallace Allen 639-3530
anne.allen@idahobusinessreview.com

SPECIAL SECTIONS EDITOR Jeanne Huff 639-3518


jeanne.huff@idahobusinessreview.com

WRITER Teya Vitu 639-3515


teya.vitu@idahobusinessreview.com

WRITER Benton Alexander Smith 639-3524

By Anne Wallace Allen


Idaho Business Review

If the recent economic recovery has had a


clear impact on one professional group, its
property managers.
In December, the U.S. Commerce Department reported that construction spending was at its highest level since 2007. The
construction of single-family homes and
apartments also reached its highest level
since 2007. That was also the case in Idaho,
where Boise saw record levels of multi-housing construction that started in 2014 and
continued through 2015. Ada County issued
only two permits for apartments in 2010. In
2014, it was 1,675, according to Mountain
States Appraisal and Consulting.
The same activity that is sparking economic growth for managers is also changing
the landscape for them. New property devel-

opers are arriving


from out of state
to build multifamily housing in
the Treasure Valley and beyond.
Often, they bring
their own management companies
with them, who
look for other
properties to add to their portfolios.
Meanwhile, many of the people moving
into these apartments are coming for jobs
from out of state.
The new competition, and the new mix
of tenants, means property managers need
to be better at their jobs than ever. They need
to stay on top of whats happening in their
industry and use current technology, for example, mobile payment systems for tenants.
It means being flexible with renters who

expect their needs for pets, storage space or


other amenities to be accommodated. If customer service isnt up to par, a newly mobile
large generation of renters will just move to
another spot when the lease is up.
Another change on the horizon is licensing. Idaho is one of only five states with no
real estate broker or property management
licensing requirements for property management companies, and some managers
would like to see that change.
Read about the changing rental market
and savvy managers responses about licensing, and about other shifts underway in the
world of property management in this edition of Square Feet, Idaho Business Reviews
quarterly publication on residential and
commercial real estate.
Anne Wallace Allen is editor of the Idaho
Business Review and of Square Feet, IBRs
quarterly publication on Idaho real estate and
construction.

benton.smith@idahobusinessreview.com

NEWSROOM ASSISTANT Erika Sather-Smith 639-3510


erika.sather-smith@idahobusinessreview.com

ADVERTISING DIRECTOR Cindy Suffa 639-3517


cindy.suffa@idahobusinessreview.com

ACCOUNT EXECUTIVE Rocky Cook 639-3519


rocky.cook@idahobusinessreview.com

ACCOUNT EXECUTIVE Corey Wong 639-3526


corey.wong@idahobusinessreview.com

For advertising, email


advertising@idahobusinessreview.com

PUBLIC NOTICES

publicnotice@idahobusinessreview.com

ADMINISTRATIVE ASSISTANT / PUBLIC NOTICE / REPRINTS


Laura Butler 639-3528
laura.butler@idahobusinessreview.com

For TopList questions, email


toplist@idahobusinessreview.com

Idaho BOMA looks ahead . . . . . . . . . . . . 4


Offices offer new looks . . . . . . . . . . . . . . 5

To place orders, make changes to your account and


for other subscription inquiries:
Phone: (800) 451-9998 Fax: (800) 329-8478
Email: subscriptions@thedolancompany.com

New construction adds office space . . . . . 6

Online: Go to www.idahobusinessreview.com and click


subscribe to place an order or manage your account.
Follow the subscribe instructions to place an order or in the
Manage Your Account box, enter your username and
password for immediate account access.

Continuing ed is a priority for managers .. 7

To register for online access and


obtain a username and password:
Go to www.idahobusinessreview.com and click subscribe.
Follow the link at the top of the page under Already a
subscriber? and follow the instructions to register. Please have
your account number and the zip code on your account handy.

Economy spurs demand for short-term space . . 8

For technical support:


If you need help with our website or your login and password,
please call (800) 451-9998 or email
subscriptions@the dolancompany.com.

Animals enter the workplace. . . . . . . . . . . 9

To submit subscription or renewal payments:


Phone: (800) 451-9998
Mail: Idaho Business Review, Subscription Services,
SDS-12-2632, P.O. Box 86, Minneapolis, MN 55486-2632
If your newspaper is damaged, missing, or late:
If your newspaper is damaged or missing,
call 800-451-9998 and we will send you a replacement
immediately.If your newspaper frequently arrives late
contact your letter carrier or local postmaster.
To order back issues:
Selected back issues are available. Call 800-451-9998
or email subscriptions@the dolancompany.com.
The IDAHO BUSINESS REVIEW [ISSN 8750-4022] is a newspaper
of general circulation published weekly. Subscription is
$
129 annually. (Includes Idaho sales tax for Idaho residents.) The
IDAHO BUSINESS REVIEW is an Idaho Corporation doing business at
855 W. Broad Street, Suite 103, Boise, ID 83702. Periodical postage
paid at Boise, ID. POSTMASTER: Send address changes to IDAHO
BUSINESS REVIEW, P.O. Box 8866, Boise, ID 83707.
Entire contents copyrighted 2016 by IDAHO BUSINESS REVIEW.
All rights reserved. Material published in the IDAHO BUSINESS
REVIEW may not be republished, resold, recorded or used in any
manner, in whole or in part, without the publishers express written
consent.
Reprints available at reprints@idahobusinessreview.com.
Opinions expressed by the columnists are not necessarily the
opinions or the policy of the IDAHO BUSINESS REVIEW.
The IDAHO BUSINESS REVIEW is an affiliate of The Dolan
Company.

Millennials drive workplace design . . . . . . 10


Group pushes property manager licensing . . 11
Parking faces new expectations . . . . . . . . 12
Meeting the obligations of the FHA . . . . . . . . . 13

Property management takes sensitivity . . . . . . . 16

Short-term rentals need long-range planning . . 14

Water efficiency is critical . . . . . . . . . . . . . . . . . 18

Standards separate pros from amateurs . . . . . . 15

People. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

ON THE COVER: The office of Fahlgren & Mortine, a Boise marketing and communications firm. Photo by Pete Grady.

4 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

Idaho BOMA looks ahead


By Anne Wallace Allen
Idaho Business Review

You cant make everyone happy, but this


year, the members of BOMA Idaho are going
to give it a try.
BOMA, the Building and Managers Association, has a long list of issues to watch in
the coming year. Among them: city impact
fees for developers, energy costs, flood insurance, and security. With a busy construction
season underway, the group is examining
ways to keep tenants content when theyre
being inconvenienced by heavy construction
at the building next door. With homelessness
a visible problem in Boise, BOMA is keeping an eye on the visitors who are spending
time in the warmth of their building lobbies.
And there are also the ever-constant considerations in any building such as property taxes,
landscaping, service animals, Internet access,
snow and ice removal, and bicycle parking.
Any matter that could affect buildings,
were on the lookout, said Krisjan Hiner,
BOMAs president. Were constantly focused on educating our members on how to
more effectively manage their properties.
BOMA rolled out a new identity for itself
in February 2015. The 30-year-old group,
part of a federation of 92 U.S. associations,
had previously focused on the Treasure Valley, but last year it changed its charter to
include the state of Idaho. BOMAs international network of building managers means
that BOMA members can find an answer to
almost any problem by asking around.
There are very few issues that a building
owner manager will face that someone in a
different market hasnt faced, Hiner said.
BOMAs leaders expect to keep their focus on the southern half of the state, as the
northern Idaho communities have an allegiance to BOMA in Spokane, Wash.
One of those issues is the flood plain, said
Justin Cranney, a
real estate lawyer
at Hawley Troxell
who is chairman
of government affairs for BOMA.
The Federal Emergency
Management Agency is
in the process of
updating and expanding its floodJustin Cranney
plain map, and it
will affect a lot of
property owners in Idaho, Cranney said.
Anyone who falls within the federal
floodplain, residential or commercial, will
have to get flood insurance if they have a
federally backed mortgage, Cranney said.
The groups leaders expect other issues to
come up mid-session.
There are always concerns from a property management standpoint that we dont
know about until later, said Ryan Cleverley

Photo by Pete Grady

Kari Davis of Ledger Commercial Property Management at one of the medical buildings she manages in Meridian.
of Gardner Company, BOMAs vice-president.
Security is another big issue for property
managers, and one that affects Cleverleys
company directly, because its working closely with Boise State University as Gardner Co.
develops the computer science building in
the heart of downtown, next to Gardners
headquarters at the U.S. Bank Building. Boise States security protocols add another
layer of complexity, Cleverley said. Meanwhile, over the last year, BOMA has offered
its members several programs on how to
handle an active shooter in a building.
Guns themselves present a tricky scenario
for building managers.
With Idaho being an open carry state,
you cant just kick people out of your building because they have a gun, Cleverley said.
Landscape maintenance comes up frequently for building managers, partly because maintenance is expensive, said Hiner,
a co-founder of the Stack Rock Group, a Boise landscape design firm.
As a commercial property owner, the two
largest recurring costs are janitorial and landscaping, he said. Some ways of mitigating
those costs are using less grass and watering it
less, he said, but developers often leave landscaping to the last minute and then choose
whatever is fastest and least expensive.
Its overlooked 98 percent of the time,
Hiner said of sustainable landscape choices.
The landscape is the last thing that goes in
on a project.
Whatever the season, Cleverley said he
spends much of his time talking to tenants who

want different temperature levels in their offices.


Its a constant battle, and youre trying
to keep energy costs down, he said. We
are always trying to find technology that
will help us decrease overall usage. You cant
make everyone happy, but you can change
the vents so youre getting different airflow
in different offices.
Internet is a big issue for some property
managers in downtown Boise, whose tenants only have access to a few choices of service providers.
For us its been pretty good, Cleverley
said. We bring in multiple providers to one
spot in the basement, and we invite them to
come in early to the construction process.
Were always being asked, what company is
available in the building?
Medical office buildings present some
slightly different concerns for building owners and managers, said Kari Davis, whose
company, the Boise -based Ledger Commercial Property Management, handles several
in the Treasure Valley.
They have more visitors to their buildings
than my other tenants, said Davis. So as a
property manager I have way more liability,
because I have elderly people and patients.
My doctors demand that the snow removal
be perfect. If I dont have the handicap ramps
completely clear by 6 a.m. and throughout
the day, those are potential liabilities.
For downtown properties, parking is a
huge issue for cars, and, increasingly, for
bicycles. Car parking is expensive to build,
but the construction cost can be recovered

through parking fees. Not so with bicycle


parking, said Cleverley. He said bike parking, while less expensive than car parking,
still does carry a cost. And bicyclists arent
used to paying for their parking.
With City Center Plaza, you have a
younger, more IT-based workgroup out of
Clearwater, and bicycle parking is a bigger
issue to them than some of our other tenants, said Cleverley of the $75 million
project Gardner is constructing downtown
for Clearwater Analytics and the Boise State
computer science department.
Yes, I can build a parking space, but
unless you can get the tenant to lease that
whole space, then its just an employee
amenity youre paying for, he said.

Photo by Patrick Sweeney

Krisjan Hiner (left) of Stack Rock Group


is the president of the Idaho Building
Owners and Management Association,
or BOMA, this year. Ryan Cleverley
(right) is the vice-president.

Were Not Your Cookie Cutter


Management Team

Commercial & Multifamily Full Service Property Managment


Construction Services * Due Diligence
Receivership * Financial Services
Thomas Felter, CSM - Property Manager
1109 W. Main Street, Suite 200, Boise, ID 83702 * (208) 343-4611 * GriffisBlessing.com

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

| 5

Photo by Pete Grady.

Staff and visitors at the offices of Fahlgren Mortine, a marketing and communications firm in Boise. Shown here are (l-r) Ben Hedrick, an event planner with TMN
Events, Shea Andersen, associate vice president at Fahlgren Mortine, Tom Steward of TMN Events, and John Curtis, Fahlgren Mortine's senior vice president and
managing director.

Office space has a new look and feel


By Eric Hayes
Special to the IBR
Offices are taking down their walls and
opening up the floor to discussion.
Meanwhile a decrease in per-person office space ratios means co-workers are sharing tighter quarters than ever. Between the
years 2000 and 2010, the average per-person
office space allotment in the U.S. dropped
from 250 to 200 square feet. Today, that
average has dropped to 185 square feet per
person, and some industry experts expect
that figure to drop beneath 135 by 2020.
Were seeing a shift to smaller offices
and larger meeting rooms, said Gary Christensen, the developer of the Banner Bank
building in downtown Boise.
Industry analysts agree that this shrinkage is at least in part an effect of cost-cutting measures that relocated many businesses from larger to smaller offices during the
Great Recession. But generational changes in
office culture spurred largely by the tech
industry may explain why the spaces are
shrinking and the walls are coming down as
the underlying economy expands.
Most tech companies dont require the
same space ratios of professional offices of
the past. Theyre looking for warehouse-style
space, with open floor plans and minimal
walls, said Ephraim Greenwall, a Bay Area

sible for changing traditional office layouts


that affect per-person spatial ratios, Jeremy
Malone of Oppenheimer Development Corporation is a building manager who has
noticed the change in other professional industries.
Everyones looking for smaller spaces today, said Malone. Attorneys seem to be especially interested in creating smaller individual offices with more conference rooms and
public areas, and computers have a huge impact on reducing the amount of storage space
needed for organizing physical documents.
The shift in office layouts has produced
some unexpected benefits in productivity, as
well.
Diminishing space ratios creates a
change in communication that affects the
whole business, said Malone. What some
people might consider a lack of privacy also
causes a lot of good ideas to arise from coincidence. A junior employee might overhear
something said by a senior employee that
helps them understand the business better, or the person whos been there longer
might get a fresh idea from someone who
just showed up.
Some experts have also pointed out
that less individual space puts more eyes
on employees, limiting their ability and
desire to surf the Internet or take personal

locked into long-term rental agreements


could not immediately find smaller quarters
when their staffing was reduced.
DJ Thompson
Changes in space-per-person cause alterations in maintenance and amenity needs.
As office density increases, a ripple effect in
plumbing, HVAC, janitorial, and (perhaps
most importantly) parking needs create
additional expenses for building managers
that are sure to affect tenant costs.

While city planners in areas like Boise


hope to counteract limitations in parking
by creating high-density urban living space,
D.J. Thompson of Cushman & Wakefield
Commerce thinks nature will have a say in
the end.
We know that younger professionals like
the idea of walking or riding a bike to work,
said Thompson. But the will to leave your
car at home decreases when the temperature dips below freezing and the wind starts
blowing.

NOT A FAN OF COOKIE CUTTERS?

Were seeing changes in the perception of office


hierarchies, and obtaining the iconic corner office isnt
a top priority for people used to getting work done at
home or the coffee shop.
Ephraim Greenwall, owner of buildings in Boises BoDo and San Francisco

investor who owns buildings in Boises


BoDo and San Francisco.
Cellphones and laptops make any area
with a chair and an electrical outlet a potential workspace, and if an employee needs
privacy they can utilize a conference room
or a room set aside for privacy, he said.
Greenwall said that a shift in the goals of
younger professionals has also influenced
spatial needs.
Were seeing changes in the perception
of office hierarchies, and obtaining the iconic corner office isnt a top priority for people
used to getting work done at home or the
coffee shop. Theyre often more interested
in office amenities like game rooms and entertainment areas that can be shared by all
employees.
While the tech industry is largely respon-

calls on-the-clock. In this way, reductions in


productivity created by ambient noise and
conversing with co-workers can be offset by
limitations in a workers ability to get on
Facebook or play games online.
But, as with so many things, many things,
fluctuating markets have the most to do with
the use of available space. These ratios are
often a matter of timing. As the economy
improves a company might increase its employee base by a significant percentage, and
its difficult to find new space to accommodate that growth when leases run three to
five years, said Bill Beck, of Tenant Realty
Advisors. Becks reasoning is supported by
statistics from U.S. Department of Labor.
They show a brief spike in the per-person
square feet ratio in the year 2010, a result of
the grey space created by the loss of employees during the recession. Companies

NEITHER ARE WE.


Experience the Group One
Property Management difference!

PROPERTY
MANAGEMENT

208.287.5050

www.groupone-pm.com | info@groupone-pm.com

6 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

Photo by Pete Grady.

The new headquarters of the J.R. Simplot Co. are going up along Front and 11th streets in downtown Boise. When completed, they will add 325,000 square feet
of office space to the downtown market.

Brokers: Surge of new office space


wont dampen demand
By Eric Hayes
Special to the IBR
People who spend much time socializing in downtown Boise these days have
grown accustomed to conversational pauses
brought on by the grinding clack of jackhammers and the buzz of electric saws from
nearby construction projects.
Two projects largely responsible for the
daytime cacophony of construction are the
nine-story City Center Plaza at Eighth and
Main streets, and the new Simplot headquarters at Jacks Urban Meeting Place, a
large block occupied by millions of dollars
worth of Simplot-related construction between Front, Myrtle, Ninth and 11th streets.
City Center Plaza will add 206,000
square feet of office space to the mix. The
Simplot headquarters will add 325,000. Together, they contribute a significant block of
office space to downtown Boise.
Class A office space rates in Boise have
gradually returned from a 2010 low of
$15.65 per foot to current asking prices
above $18 per foot. Those rates are still 20
percent to 40 percent lower than those in
neighboring markets such as Salt Lake City,
Portland and Seattle.
A surplus of space would lower rents and
make it more difficult for developers to find
the financing they need for new projects in
downtown Boise, the largest office space
market in the state. But brokers say theres
enough demand to absorb the new space.
People who dont understand the downtown market have worried about that, said
Gary Christensen, developer and manager
of the Banner Bank building. But a large
group of people are attracted to the amenities
of downtown. Were seeing tech companies
choosing to locate downtown rather than in

the suburbs, and I think it has a lot to do with


the impact of the 25-to-40-year old generation. They dont want to drive cars, they like
to get together with friends easily, they want
to meet for coffee, they want to associate easily, and they want to live in the North End.
Theyre making an impact on businesses.
Christensens optimism is shared by others in the industry. A mid-year market report
from Thornton Oliver Keller (from which
this article draws most of its statistics) predicts lease rates for Class A office space in
Boise will continue to moderately rise in
2016, and absorption rates are expected to
remain comparable to the last four years.
With over 6 million square feet, downtown represents the largest market for office
space in the Treasure Valley and the state. Yet
it also claims the lowest regional vacancy
rates for Class A office space. Overall vacancy
rates for Class A office space in the Treasure
Valley recently dropped below 11 percent for
the first time since 2007, and downtowns
vacancy rates dipped below 8 percent in October 2015.
New construction is unlikely to disrupt
these indicators, as most of City Center Pla-

zas space has already been leased to Clearwater Analytics and Boise State University,
and less than 15,000 square feet were listed as available late last year in the Simplot
complex. Though a ripple effect of vacancies
will be created as tenants migrate to their
new spaces, absorption rates are expected
to stay strong as downtowns desirability for
new businesses grows.
New construction is simply meeting
current needs, said Bill Beck of Tenant Realty Advisors, a firm exclusively representing
the interests of tenants. Weve been telling
clients that if theyre looking for space in
Boise, theyll need to start looking early.
According to Beck, large companies looking to re-locate downtown (such as the tech
firm Cradlepoint, which consolidated its offices to 50,600 square feet at the Boise Plaza
Building) might even find it difficult to locate downtown office space.
Businesses looking for 20,000 contiguous square feet or more have limited choices
in the downtown market. Currently, only
four buildings are capable of providing that
kind of space and the timing must be
right to make it possible, Beck said.

A large group of people are attracted to the amenities


of downtown. Were seeing tech companies choosing
to locate downtown rather than in the suburbs, and I
think it has a lot to do with the impact of the 25-to-40year old generation.
Gary Christensen, developer and manager of the Banner Bank building

That timing will


certainly be right in
August, when Simplot plans to move
out of the 100,000
square feet it occupies at One Capital
Center.
Though
filling that space
represents a challenge, the buildBill Beck
ings managers are
optimistic.
Weve already had potential tenants examining layouts at One Capital Center, said
Jeremy Malone of Oppenheimer Development Corporation.
Malone said the success of leasing the
Simplot space will depend on making a
range of options available.
Focusing on flexibility is important because the needs of tenants change so rapidly, he said. Were in a good position because the buildings floor plates allow us to
work between traditional office models and
Plug-and-Play set-ups that the tech firms
are looking for.
New vacancies caused by the construction will provide some opportunity for economic development, said Krisjan Hiner, the
president of the Idaho Building Owners and
Managers, or BOMA.
With Simplot vacating those corporate
offices, that leaves a lot of space for the
(Boise Valley Economic Partnership) and
other companies to bring some large corporations that were looking for Class A space
that previously wasnt there, Hiner said. In
the past there were companies that wanted
to come to Boise but couldnt find the right
space so they passed.

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

| 7

Residential management group emphasizes continuing ed


By Anne Wallace Allen
Idaho Business Review

Southwestern Idahos professional group


for residential property managers, NARPM,
is readying its members for a changing rental landscape as apartment construction accelerates and newcomers arrive to take jobs
in the state.
Like so many people in business,
NARPMs president, Cory Tanner, is watching closely to see how the behavior of
millennials will affect his own operation,
Bolton Property Management. And hes positioning his group, the southwestern Idaho
chapter of the National Association of Residential Property Managers, to respond to
upcoming market changes professionally.
Idaho NARPM held a strategic planning
session in October to come up with priorities for the coming year. One priority was
professional development. NARPM will

hold sessions this year for its members on


issues such as fair housing law, account collections, and tenant safety.
Another topic was licensing, which is not
now required for residential property managers in Idaho. NARPM doesnt hold a position on the issue, but discussed it at the strategic planning session. Within the 60 or so
members of Idaho NARPM, there are those
who support licensing as a way to weed out
bad actors and bring more professionalism
to the industry, and those who oppose it as
a violation of their privacy.
Tanner, who falls into the former camp,
is licensed as a property manager in Utah,
where he also manages real estate.
The Division of Real Estate audits my
trust account, theyve audited my operating account, they do an annual evaluation
that some may look at as a hassle, Tanner

said. All theyre doing is making sure that


if were using a trust account were using it
appropriately. There is some value to it. But
there are other property managers who say,
I dont want somebody poking their nose in
my business.
Apart from licensing, NARPM members
are also trying to increase their community
service activity.
Tanner, who has an MBA from Purdue
University and a BA in communications
from the University of Utah, worked for
Johnson & Johnson in New Jersey for a decade before returning to Idaho and starting
his property management business. His
company manages about 250 properties
around the Treasure Valley. He has watched
local building trends closely and said he expects them to affect local property managers
eventually.

Photo by Pete Grady.

Cory Tanner uses his smartphone to take a photograph. Like many property managers, Tanner uses an app that helps him
coordinate unit inspections.

We have certainly seen an increase in


multi-housing complexes and units across
the valley, Tanner said. At the same time,
the vacancy rates have remained fairly low.
Weve been able to continue to fill those
vacancies. But at a certain point, thats going to have to level off. You cant build indefinitely.
Phyllis Barker,
the majority owner of Group One
Property Management in Boise, said
property managers
at her company
are working with
professionals who
are moving from
Phyllis Barker
out of state to take
jobs at companies
such as the St. Lukes and Saint Alphonsus
Health Systems, Micron, Hewlett-Packard,
and Albertsons.
These renters are looking for mobility.
Most want to rent for 6-12 months to
study the valley and choose a neighborhood
that fits their desires before they buy, said
Barker. They prefer to be as close to downtown as possible.
Like the professionals who work with
Barker, millennials tend to rent rather than
own, which is good news for property managers. But Tanner said the millennials he
works with tends to demand mobility even
within the traditional structure of renting.
Even within lease terms, they want some
flexibility, he said. If they need to up and
leave for some service project in Africa, they
want to be able to do it.

25

COMMERCIAL REAL ESTATE

years

FOR SALE OR LEASE

1991 - 2016

BOISE | EAGLE | MERIDIAN | NAMPA | CALDWELL | KUNA | KETCHUM | TWIN FALLS

SHOPS AT STATE & BLOOM

COLUMBIA BUSINESS PARK - A

OWYHEE PARK PLAZA

WASHINGTON GROUP PLAZA

Thornton Oliver
Keller HPH

GOING HOME SIDE OF STATE ST.

FLEX-OFFICE BUILDING

QUICK ACCESS TO I-84 & BOISE AIRPORT BOISES LEGACY OFFICE LOCATION

BRIANNA MILLER | JOHN STEVENS

MIKE GREENE | PETER OLIVER

PATRICK SHALZ

WESTGATE SHOPPING CENTER

16,230 SF CENTER - FOR SALE OR LEASE (+3,000 SF) 1,197 to 7,856 SF - FOR LEASE OR SALE (16,275 SF)
Great tenant visibility and access. Priced below Flexible design. Easy access to I-84 & downtown.
replacement cost. Value-add opportunity.
Excellent professional location in SE Boise.

2,042 to 17,500 SF - FOR LEASE


Attractive interior finishes. On-site storage.
Secured underground parking.

599 to 30,232 SF - FOR LEASE


Boises legacy office location. On-site Bistro.
Loaded with amenities. Close to everything.

FAMILY CENTER AT FEDERAL WAY

FEDERAL WAY COMMERCE CENTER

11760 EXECUTIVE DRIVE

BELOW MARKET ASKING RATES

NEW TO THE MARKET!

LAST SPACE AVAILABLE!

CONVENIENT WEST BOISE LOCATION!

MARK SCHLAG

BOB MITCHELL

DAN MINNAERT | DEVIN PIERCE

GAVIN PHILLIPS

10,523 to 22,105 SF - FOR LEASE


2,100 SF - FOR LEASE
Tenant improvements negotiable. High traffic Retail shop space. 99% leased! Highest family
counts. Terrific opportunity in Mall vicinity.
incomes in Boise.

OFFICE

MIKE GREENE | AL MARINO

5,766 SF - FOR LEASE


3,727 - FOR SUBLEASE
Easy access to I-84, Broadway Ave., Federal Way & 1,816 SF Showroom/Office with 1,911 SF Warehouse.
Downtown Boise. Excellent freeway visibility.
Quality construction. Signage. Sprinkled.

INDUSTRIAL

RETAIL

BOTTOM-LINE RESULTS FROM THE TEAM THE MANAGES THE BEST PROPERTIES IN IDAHO.
250 S. 5th St., 2nd Floor

Boise, Id 83702

208.378.4600

tokcommercial.com

8 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

Spread of short-term office rentals


is a sign of the times
By Oliver Nevin
Special to the IBR
Short-term and virtual office services
are enjoying a run of popularity in these
post-recession years, as entrepreneurs leave
their home offices behind for more professional surroundings.
The global short-term and virtual office
provider Regus is opening new offices in the
Treasure Valley after operating for a decade
from a space in the Banner Bank building in
downtown Boise. In the last year, Regus has expanded to The Village at Meridian and Library
Square in Nampa, said Chris Beagley, who
manages the Banner location for Regus. He
doesnt see the trend slowing anytime soon.
I take calls from prospective renters
nearly every day, Beagley said.
Virtual and short-term office rentals provide an array of services and settings to help
the self-employed avoid the high cost of a
permanent office lease, yet meet occasional
needs for professional meeting space. Many
offer answering services that will take messages and make
appointments.
Joseph Eiguren
opened his Intelligent Office branch
in the new Eighth
and Main building in late 2014.
Intelligent Office,
an
international
firm with dozens of
franchisees in the
Joe Eiguren
U.S. and Canada,

promotes its virtual and short-term services by


reminding would-be renters that the company
will help them avoid the tiresome details that
accompany leased space and hired staff. With
Intelligent Office, the company says, workers
dont need to worry about workers salaries,
bonuses, overtime, sick days, seminars and
training, lunch breaks, or web surfing.
There are lots of small law firms and
individual professionals that either work in
Boise but do so alone, or work all over the
region or country and need to save money on
having more than one office, said Eiguren.
For $150 per month, renters at Intelligent
Office get a mailbox with a downtown Boise
address, their business name listed on Intelligent Offices building directory, and 16
hours a month in one of the companys two
rental conference rooms. Each room can accommodate 12 to 16 people and four to five
people respectively. Janitorial services, kitchen amenities, and a range of administrative
services are also included in the package.
In addition to those virtual office solutions, Intelligent Office also offers ten permanent offices that function much like a
traditional rental with lease terms of a year
or more. Lessees can secure a 120-squarefoot space for from $600 a month for a fully enclosed unit to $1,800 per month for a
corner office that looks out over downtown.
Each of those units is currently occupied.
Although Eiguren now keeps one office
available for virtual clients to rent for $15 an
hour, he anticipates a growth in the number
of virtual clients and plans to make more of

Leaders in Landscape Services

Choosing a landscape contractor


is an important decision.
Leading the way in innovation and
elevating the client experience.

Maintenance | Design | Construction | 208.378.4588

Photo by Pete Grady

The reception area at Intelligent Office, a short-term office rental company in


Boises Eighth and Main building.
those permanently leased offices available
for hourly rentals.
CPA and forensic accountant Denise
McClure chose to use a virtual office at Key
Business Center after renting one of the 22
permanent offices there and realizing it was
more than she needed.
Im a one-person operation and I just
dont need traditional office space, she said.
Still, I do need an address where I can securely receive important documents and count
on a highly skilled, professional administrative support staff to handle my calls and keep
me connected with all of my clients.
As far as the virtual office industry is concerned, short-term space is here to stay. It reflects a desire on the part of younger workers
for more flexiblity, customized space, and
sustainability. Bringing your own device to
work instead of using one provided by an
employer is a new workplace trend, according to a 2014 Cisco report that was cited by
Virtual Strategy Magazine, an online publication that covers the many realms of the virtual business world.
The popularity of short-term space is also
a response to the recent recession, said Fernando Ferreira, an associate professor of real
estate, business economics and public policy
at the Wharton School of the University of
Pennsylvania. Ferreira said temporary office
solutions are a perfect example of what the
Great Recession did to businesses, as well as
a stop on the road to full recovery. First, the
recession tossed a lot of office workers out of
their jobs and into their garages and spare
bedrooms to create their own consultancies
and start-ups. Also, many businesses have
shown over the past few years of the gradual
economic recovery that theyre still very leery
of making large investments.
With the economy gaining strength,
short-term office rentals will start to go away,
Ferreira said.
Big established firms will feel more
confident that they can invest in more
permanent office space, he said.
Idaho, and especially Boise, are a good
test of Ferreiras thesis. Idaho experienced

the largest increase in employment growth


among states in the last 12 months, according to the Idaho Department of Labor. As
workers and businesses fortunes improve,
some professionals may be able to choose
whether they hold on to the freedom of a
temporary office, or they return to the expense of the traditional office space.
Its well known that rising generations of
workers are demanding more comfortable,
accommodating, healthy and sustainable office space than prior generations dared to do.
Ferreira said that as employees feel more confident about their positions, they will begin
to demand better workplace amenities. Companies, accordingly, will build space that is
more attractive to workers than in past years.
He points to markets like San Francisco
as an example of that trend.
Silicon Valley recovered fast from the
downturn, Ferreira said. Now, really successful businesses in the area, like Apple, are
building huge campuses with amenities like
gyms, gourmet cafeterias, and transportation for employees to and from work.
Ferreira thinks of businesses like Intelligent Office, Key Business Center, and Regus
as niche operations. They wont go away, he
said, but theyre currently taking outsize advantage of an economy that is still finding its
feet, especially among sole proprietors who
can work from anywhere and may not want
to make big expenditures quite yet. As the
economy continues to gain traction he said,
those people will likely want to go back to
work in more traditional settings.
McClure chose the virtual route for the
freedom and the cost savings and she plans
to continue using it. But here are aspects of
life in a traditional office that she misses.
I do miss some of the personal interaction that comes with working in a traditional office space, she lamented. For lack of a
better term, I just dont get that water cooler
talk and office camaraderie that I used to get.

Silicon Valley recovered fast from the downturn,


Ferreira said. Now, really successful businesses in
the area, like Apple, are building huge campuses
with amenities like gyms, gourmet cafeterias, and
transportation for employees to and from work.

Fernando Ferreira, an associate professor of real estate, business economics and


public policy at the Wharton School of the University of Pennsylvania

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

| 9

Indoor animal policies are


increasingly common and more
complex than ever
By Eric Hayes
Special to the IBR

Photo by Pete Grady.

Downtown Boise real estate owner Clay Carley in his office with Buster. Carley,
who allows dogs in the buildings he owns and manages, said he brings Buster
into work when his schedule allows. When hes here, hes a very popular guy,
Carley said.

If the trend of dogs in offices continues on its present course, mason jars full
of bone-shaped biscuits may become as
common as magnetic paperclip holders on
desktops.
In San Francisco, everyone wants to
bring their dogs to work, said Ephraim Greenwall, who owns commercial property in
Idaho and California.
Greenwall said a no pets policy can
be a deal-breaker because an employer can
lose prospective talent when they dont allow dogs.
These animals often play a surrogate
for young professionals that choose not to
have children, and having their dog at work
is important to them, he said. As Greenwall
spoke by phone, he mentioned that a colleagues dog was sitting in a chair across the
desk from him.
So maybe Im biased, said Greenwall.
But I feel that dogs create a more human
workspace, and psychological studies have
shown that animals in office environments
increase focus and decrease stress.
Greenwall is right; studies back up findings that say individuals who bring their
dogs to the office make happier workers.
One, conducted by Virginia Commonwealth
Universitys School of Business, found that
employees who brought their dogs to work
reported lower levels of stress at the end of
the workday than employees who didnt
bring dogs to work. While workers say they
feel less stress, scientific research hasnt

backed that up researchers observed no


difference between control groups in stress
hormone levels when measured via saliva
samples.
Though countless other studies have verified the calming effect pets have on their
owners, little hard information is available
on the link between productivity and dogs
at work. Although the VCU study found
that workplace pets can serve as a low-cost
wellness intervention [that] may enhance
organizational satisfaction and perceptions
of support, researchers ultimately determined further research with larger sample
sizes was needed to replicate the findings of
the initial study.
Data probably wont affect the attitudes
of people who already enjoy bringing their
dogs to work, though.
Cheryl Bloom, a Boise resident who is
also an advocate for users of service animals,
said basic obedience training is necessary to
minimize the fear and annoyance of nondog lovers.
Some people who rely on their dogs for
emotional security havent trained their pets
to get along in public. Unfortunately, this
can have a negative impact on peoples attitudes toward service animals in general,
she said.
Bloom noted that a pet that helps an
owner deal with mental health issues like
anxiety or depression cant be considered a
Service Animal unless its been trained to
perform tasks for a person to help overcome
See ANIMAL POLICY, page 23

10 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

Photo by Maxmilian Frank of the (Baltimore) Daily Record.

From left, Ellen & Tucker employees David Konapelsky, analyst; Zach Reichenbach, manager; and David Frankenberger, marketing coordinator, enjoy a game of
pool in the company dining and entertainment area on a recent Friday evening after work.

Millennials are not the only


workers driving new office designs
By Adam Bednar
Dolan Media Newswires
The popular narrative that companies are
moving to dense urban areas with a preference for open, collaborative spaces in a bid
to placate and attract younger employees
may not be the full story.
Examining how millennials, technology
and e-commerce are shaping commercial
real estate, researchers, brokers and marketing professionals gathered at a recent conference hosted by Saul Ewing LLP, agreed
changes in the office space attributed to
millennials wouldnt be happening if older
workers didnt like them, too.
Moving to an open floor plan wasnt
something that only millennials like. It was
something everyone liked, said Sara B.
Queen, executive vice president of New Yorkbased Brookfield Property Partners said.
Edwin R. Brake, managing director for
accounting firm Ellin & Tucker, can speak
to the divide firsthand. The firms new office

space at 400 E. Pratt St. in Baltimore was a


huge departure from previous spaces and
put a heavy emphasis on innovation, Brake
said in an interview.
The new workspace features more open
space with lower work stations and fewer isolated offices. It even includes a fun
space, a multimedia center with a bar and
fridge stocked with beer.
Brake said he kept most employees in
the dark during the planning stages for fear
they would complain simply because of the
change.
Younger employees loved the space immediately, he said, while some older employees were not as thrilled. He asked skeptics to give it 90 days. Now, some of the
biggest critics have embraced the new space,
he said.
Theyre not opposed to it, Brake deadpanned.
Younger employees may drive changes in
working spaces, but older workers typical-

Building owners, do you have a property


that is thriving or merely surviving?
Are your tenants feeling neglected and
unimportant?
Have you lost tenants because of your
Property Management company?
Does your building look sad and tired?
Is your rent roll a mess?

ly occupy the management positions that


make decisions about the type of office and
where a firm will be located. So if the older
workers were not on board and embracing
the changes they wouldnt be happening.
Behaviors are changing, said Bronwyn
E. LeGette, vice president at Cushman &
Wakefield in Baltimore.
Some trends in commercial real estate,
ostensibly being driven by technology-obsessed youth, range from smart buildings
aimed at making an office more efficient
and comfortable to well buildings that are
built to promote health. Although some of
these changes could be viewed as catering to
the whims of millennials, some have both
practical and performance impact.
A study published this summer in the
journal Nature Climate Change showed
women often feel colder in an office than
men. Thats often amplified because indoor
climate regulations were set on a model
from the 1960s, when offices were dominat-

ed by men. In the modern workforce, with


more female employees, a smart building
that allows for greater climate control can be
very attractive amenity.
But whether these modern workspaces
will continue to be located primarily in urban areas or will begin migrating to the suburbs is up for debate.
People like living in cities, and were going to see that grow, and grow and grow,
Queen said.
But Adam Ducker, managing director
Bethesda, Maryland-based RCLCO, pointed
out that most corporate executives still prefer to live in the suburbs. Recent polls have
shown the majority of Americans still embrace the suburban idyll as their preferred
lifestyle. Theres also the fact that suburban
office space is often cheaper than city competitors.
The price trade-up to me seems compelling, but pick wisely, Ducker said.

With Ledger Commercial Property Management, you get more than the typical
property management company; We believe tenants are important to our
business and without them no one makes money. We will return your tenants
phone calls and build relationships that last longer than the lease term.
Our team will work within your budgets, saving you thousands of lost dollars
during the leasing, design and construction process. We work diligently to
increase your NOI through proactive maintenance by actually going to your
property to see what is needed. We have 15 years in the Boise Valley successfully
managing Class A Medical/Office.
We are your property management services team
promising the solutions to having a thriving investment.
Contact Kari Davis at
208-869-8090 or
Kari@LedgerCPM.com
200 S. Cole Road, Boise, 83709 | www.ledgercpm.com

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

| 11

Photo by Pete Grady.

Andy Propst (right), president of Park Place Property Management, with Tyler Hildebrand with Anderson Construction and Autumn Boulton with Park Place
Property Management. The three are shown at the Cantabria Apartments, a new complex that Park Place manages.

When it comes to property


manager licensing,
Idaho is still the Wild West
By Teya Vitu
Idaho Business Review
Barbers, beauticians, and shorthand reporters all need to obtain a license before
they can set up shop in Idaho. But for a
would-be real property manager, the process
is as easy as signing up a client.
Idaho is one of only five states with no
real estate broker or property management
licensing requirements for property management companies. Its the Wild West Barbers, beauticians, and shorthand reporters
all need to obtain a license before they can
set up shop in Idaho. But for a would-be real
property manager, the process is as easy as
signing up a client.
Idaho is one of only five states with no
real estate broker or property management
licensing requirements for property management companies. Its the Wild West Barbers, beauticians, and shorthand reporters
all need to obtain a license before they can
set up shop in Idaho. But for a would-be real
property manager, the process is as easy as
signing up a client.
Idaho is one of only five states with no
real estate broker or property management
licensing requirements for property management companies. Its the Wild West when
it comes to keeping track of rent payments
and security deposits, or keeping track of

those who collect them, said Andy Propst,


the president of the National Association of
Residential Property Managers.
If the property manager wants to take
the money and run, theres nothing (the

manages 2,500 units, including 900 single-family homes and 12 apartment complexes.
Propst is crusading to bring Idaho alongside nearly all other states with property
management laws and licensing. But there is

If the property manager wants to take the money and


run, theres nothing (the property owner) can do. It is a
civil matter, not a criminal matter.
Andy Propst, president of the National Association of Residential Property Managers

property owner) can do, said Propst, who


is an Idaho property manager. It is a civil
matter, not a criminal matter.
Idaho also has no requirements for
property managers to secure rents or security deposits in trust or escrow accounts and
no regulatory agency audits or monitoring
these funds, something that is commonplace in nearly all other states.
Propst is president of Park Place Property
Management in Meridian, the Treasure Valleys
largest property management firm. Park Place

no universal endorsement to license property managers, even among other Treasure


Valley property managers who have been
national presidents of NARPM.
Im happy with the status quo, said
Marc Banner, owner of Realty Management
Associates in Garden City and the NARPM
president in 2005. Having a license does
not solve the problems. Government creates
more problems than it solves.
Tony Drost, president of First Rate Property Management in Boise, wrestles with

positive aspects of free enterprise that he associates with Idahos tradition of relatively
minimal regulation. Its balanced by a lack
of accountability regarding what property
managers do or dont do.
Its tough, said Drost, NARPMs national president in 2011. I do like that we have
small thriving businesses because we dont
have a lot of bureaucracy. (But) I think the
barrier of entry has got to be a little harder.
There have to be some kind of requirements.
The thing that concerns me is where do you
stop it (how much regulation).
Propst, Banner and Drost, despite their
varying stances about property manager
regulations, are themselves all licensed real
estate brokers.
The local NARPM is all over the board
(about licensing), Propst said.
Their contrasting viewpoints mirror the
for-and-against dynamic across the property management and real estate community.
The lack of consensus has stifled any action
from Idaho Real Estate Commission, said
that groups executive director, Jeanne Jackson-Heim.
Its one of those things some people really want it, some people really dont want
See PROPERTY MANAGEMENT, page 23

12 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

Group seeks green parking garages


By Garrett Andrews
Special to the IBR
They occupy massive amounts of land
and are seen as enablers of fossil fuel consumption. But now parking garages and lots
often considered antithetical to sustainability are being recognized for their green
aspects.
Weve had a lot of interest from people looking for recognition for the things
theyve done, said Trevyr Meade, program
manager for the Green Parking Council in
New Haven, Conn.
The council was formed five years ago by
a group of parking operators and real estate
professionals after the U.S. Green Building
Council stopped doling out Leadership in
Energy & Environmental Design ratings to
developments with more than 75 percent of
their space dedicated to parking.
They saw an opportunity to create a certification standard in the industry, and also
to educate, Meade said.
The GPC spent four years developing
version 1.0 of its Green Garage Certification
system, and last year launched the beta version. And in October, the GPC announced
that seven sites around the country were the
first to earn Green Garage status. Four are
located at office buildings, one is at Cornell University in Ithaca, N.Y., one is at the
Charles Hotel in Cambridge, Mass., and the
other is at Denver International Airport.
As with LEED, GPC certification is awarded via a points-based rating system; the categories are management practices, programs,
structure and design. Points are awarded,
for instance, to owners that institute recySee GREEN PARKING, page 22

IDAHO BUSINESS REVIEW

IBR file photo.

Myrtle Street Parking Garage in Boise. A New Haven, Conn. group is setting up guidelines for green parking certification.

2016

schedule
FEB. 9
ApRIL 5

Our panels bring together experts who


discuss timely, business-focused topics.

Compensation: Idahos
rate of pay
public Transit in
Idaho

juNE 7

Idahos travel industry

Aug. 9

Commercial real estate


and urban renewal

OCT. 11

Technology companies

DEC. 6

Learn and Network at


IBR Breakfast Series

The future:
what 2017 holds

For more information, please contact


IBR Editor Anne Wallace Allen at
anne.allen@idahobusinessreview.com

To register for an upcoming Breakfast


Series, visit idahobusinessreview.com
and click on Events.

For advertising or sponsorship


opportunities, contact the advertising dept.
at advertising@idahobusinessreview.com

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

| 13

Meeting the obligations of the Fair Housing Act


By Zoe Ann Olson
Special to the IBR
Disability discrimination is the No. 1 fair
housing issue were asked about at the Intermountain Fair Housing Council.
The council is a nonprofit organization
whose mission is to ensure open and inclusive housing for all people. Most of the
requests for technical assistance we get are
from housing providers, consumers, governmental employees, and advocates. Service
animal and accessibility issues are the majority of requests for assistance. In the past
three years, IFHC has conducted over 20 design and construction assessments. Of those
assessments, only two buildings were fair
housing-compliant. Many of the same housing providers also had noncompliant service
animal policies, practices and forms.
Recent systemic design and
construction settlement
To illustrate this point, recently, the National Fair Housing Alliance, Intermountain
Fair Housing Council, and Northwest Fair

Communities
can do a better job
of addressing concerns by providing
design and construction education, by reviewing
developers design
plans to make sure
they comply with
state and federal
Zoe Ann Olson
building
accessibility
requirements, and as a last resort, by withholding
building, occupancy and amenity permits
until buildings are in compliance with FHA
design and construction requirements for
accessible housing.
These three steps will reduce costly fair
housing violations and limit the need to
retrofit buildings after they are built. These
steps will also help reduce the number and
cost of reasonable modifications that property managers and landlords must grant
when dwellings are built inaccessibly under

Design and construction violations cost housing


providers money. And they deny or limit access to
housing to persons with disabilities.
Housing Alliance have settled a housing accessibility lawsuit against Rudeen Development, LLC and several co-defendants. The
lawsuit alleged violations of accessibility
requirements at River View Apartments and
Villas at River View Apartments in Coeur
dAlene, Mountain View Apartments in
Ponderay, Bentley Apartments in Spokane,
Wash., and Mirabolante Apartments in Spokane Valley, Wash.
The agreement settles claims that Rudeen
and other defendants designed or constructed multifamily dwellings, and commonand public-use areas, without the accessibility features required under the federal Fair
Housing Act.
The Defendants agreed to make improvements and modifications at the five apartment complexes identified above which will
enhance the accessibility of apartments and
common areas for persons with disabilities.
The Defendants also agreed to pay the fair
housing centers $225,000 in damages, costs,
and attorneys fees.
Design and construction violations cost
housing providers money. And they deny or
limit access to housing to persons with disabilities.

the design and construction standards. If the


dwelling was built for first occupancy after
March 13, 1991, but does not meet the Fair
Housing Acts design and construction requirements provided at 42 U.S.C. 3604(f)
(3)(C), the housing provider must pay for
the costs of any structural changes that were
required to be included at the time of construction.
Fair housing basics
Under the Fair Housing Act, seven basic
design and construction requirements must
be met. HUD has explained these requirements in the Guidelines with a Supplemental Notice: Questions and Answers About
the Guidelines published in 1994.In 2013,
the U.S. Department of Housing and Urban
Development and the U.S. Department of
Justice issued a joint statement on multifamily accessibility requirements under the
Fair Housing Act.
Under the Fair Housing Act, design
and construction requirements apply to
covered multifamily dwellings designed
and constructed for first occupancy after
March 13, 1991. However, buildings where

TIPS FOR AVOIDING VIOLATIONS OF THE FAIR HOUSING ACT


1. Attend fair housing and
diversity training annually.
Prejudice in a housing program
may translate into treating
people differently based on a
protected class.

4. Address tenant/neighbor fair


housing disputes in a timely
manner and interview all parties to provide due process and
prevent or minimize allegations
of discrimination.

2. Dont assume the Fair Housing Act doesnt apply to you.


When in doubt, research the fair
housing issue. When housing
providers incorrectly assume the
law does not apply to them, the
conversation about a fair housing
issue gets off to a difficult start.

5. Address reasonable accommodation and modification requests


from persons with disabilities in
a timely, interactive fashion.

3. Make sure that ads, social media, public statements, policies,


procedures dont discriminate
based on a protected class.

6. Monitor and review your policies, procedures, and practices


to make sure they are compliant
with the Fair Housing Act and
other civil rights laws.
7. Get help from people or agencies in the know such as HUDs
Fair Housing and Equal Opportunity Office, IFHC and/or a knowledgeable fair housing attorney.

SEVEN BASIC DESIGN AND


CONSTRUCTION REQUIREMENTS

Under the Fair Housing Act, seven basic requirements


must be met to comply with the access requirements of
the Act:
1. An accessible building entrance on an accessible route;
2. Accessible common and public use areas;

3. Usable doors (usable by a person in a wheelchair);

4. Accessible route into and through the dwelling unit;

5. Light switches, electrical outlets, thermostats and other


environmental controls in accessible locations;

6. Reinforced walls in bathrooms for later installation of grab bars;

7. Usable kitchens and bathrooms.

These seven requirements are usually where IFHC finds the most
design violations such as inaccessible routes and community rooms or
bathrooms, narrow door openings, light switches that are too high or
outlets that are too low. HUD recognizes ten safe harbors for compliance
with the Fair Housing Acts design and construction requirements.
Education and a good expert are the best medicine for fair housing
design and construction compliance.

the last building permit was issued on or


before June 15, 1990 are not covered by
the design and construction requirements.
HUD regulations define first occupancy as
a building that has never before been used
for any purpose. Design and construction
requirements do not cover buildings that

are rehabilitated even if the rehabilitation


occurs after March 13, 1991 and even if there
is substantial rehabilitation.
See HOUSING, page 23

14 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

Short-term rentals need


long-range planning
By Tim Tyree
Special to the IBR
We hear from clients excited to place
their homes into the short-term rental market, and we hear from home owner associations ranting about the problems associated
with short-term rentals.
A myriad of regulations need to be considered before placing a home into the residential rental market, be it short-term or
long-term. Home owner associations may
have recourse depending on the terms of
the covenants, conditions and restrictions
governing the subdivision. Regardless, one
of the most important decisions is whether or not the rental will be managed by the
homeowner or by a property management
company.
Effective property management is key to
the rentals financial success, or lack thereof. Its also key to whether the property will
draw the ire of the home owner association.
There are many factors to consider. They
may differ in importance depending on the
property, but lets consider a few of the most
common decisions.
Promoting the property on a variety of
websites will lead to more rental use and
higher revenue. If you employ a property manager, does that manager advertise

available rentals
only on its website or does it
also advertise on
VRBO,
AirBnB,
Homeaway
and
similar sites? How
effective is the
advertising?
Are
there multiple pictures of the home
Tim Tyree
that make it look
inviting and promote the best aspects of the home, or is the
listing not much more than the fill-in-theblank Craigslist advertisement?
What is the customer service level? When
you call the property manager, does someone pick up the phone? Can you contact
the same person consistently and is that
person familiar with your home? If you are
struggling to reach a live person, your tenants are likely to have the same problem. I
recently cancelled my property management
relationship with an Oregon-based company that focuses on short-term rental management for this very reason. I spent hours
trying to correct their accounting errors and
rarely spoke to the same person twice. The

accounting problems are still not resolved.


Ive since listed my property with a local
well-established real estate company with
far greater success and service.
Will the property manager collect and remit all taxes and fees associated with short
term rental use? Rentals of less than 30 days
are subject to a tax collected by the Greater Boise Auditorium District. The Districts
boundaries are wide-reaching, encompassing more than just downtown Boise. The
failure to pay to the tax can result in penalties and interest and may ultimately lead to
a lien on your property. Even if your property is outside the boundaries of the Greater
Boise Auditorium District, there may be other taxes and fees applicable to your property.
Understanding what taxes and fees apply
and how to properly and timely remits those
costs are important considerations.
Finally, can your property be used as a
short-term rental? Do not rely on your property manager to make this assessment. Local laws differ from city to city and change
over time. Some cities and towns, especially
resort communities, may actively promote
short-term rental use as an economic driver, while bedroom communities are more
likely to restrict short-term rental use. As the

prevalence of short-term rental use grows,


we are expecting more cities and towns to
implement regulations concerning shortterm rentals. And, we know more and more
homeowner associations are addressing
short-term rental use. If properly drafted,
the covenants, conditions and restrictions
governing the subdivision can restrict and
out-right prohibit short term rental use.
Whatever your decision, whether to go
it alone or hire a property manager, there
are many issues to address before entering
your home into the short-term rental market. Undoubtedly the market is growing, if
only based on the number of calls we receive
both for and against short-term rentals. So
making your short-term rental a financial
success will depend greatly on your ability
to stand out in a crowded market.
Tim Tyree is a partner at Hawley Troxell in
Boise. He handles all types of commercial transactions, including business formations, mergers,
acquisitions, sales, leases, development, franchising, permitting, and financing. He is the chair
of the business group and a member of the real
estate group and renewable energy group with
extensive experience in renewable energy project,
permitting, and financing.

2016

Women of the Year


A night to remember

Join us as we celebrate these women and their accomplishments


Karen Appelgren
Renee Avram
Nora J. Carpenter
Erin Cave
Karen Echeverria
Colleen Asumendi Fillmore
Charlotte G. Borst
Catherine Chertudi
Winnie Christensen
Julie M. Fogerson
Ashley Ford-Squyres
Janice E. Fulkerson
Brandie Garlitz

Erin Guerricabeitia
Johanna (Joey) C. L. Hale
Carolyn Holly
Beth Ineck
Sarah (Xiaoye) Jin
Katherine Johnson
Autumn Kersey
Dana Boothe Kirkham
Diana Lachiondo
Marcia T. Liebich
Brooke Linville
Barbara Zanzig Lock
Corinne (Cori) Mantle-Bromley

Deneen May
Molly Mettler
Amy J. Moll
Terri Muse
Nancy K. Napier
Mary (M.C.) Niland
Rebecca L. Noah Casper
Patricia M. Olsson
Julia Rundberg
SeAnne Safaii-Waite
Carole Skinner
Stacie States
Shannon Stoeger

February 25, 2016


5:30-9 PM at the Boise Centre

Register at idahobusinessreview.com/events/woy/
Publication date: February 26
Presented by

Sponsored by

Ann Swanson
Olga Tijerina-Menchaca
Gloria Totoricagena
Jill Shelton Wagers
Shawna Walz
Amanda Watson
Carrie Westergard
Jennifer Wheeler
Cheryl A. Wright
Mary York
America Yorita-Carrion

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

Separating the pros


from the amateurs
By Seneca Hull
Special to the IBR
Adherence to national standards for best
practices is what separates the pros from the
amateurs.
Professionalism is very important to
the landscape industry. When youre hiring
someone to do landscape work, it can be
difficult to wade through the choices to find
a service that can be trusted. Some people
believe that if you mowed lawns as a teenager or helped your uncle put in his sprinkler
system, youre an expert!
However, there is a lot to know and there
are a lot of mistakes that can cost people
money. Safety hazards, such as incorrectly
built retaining walls, or improper grading
and drainage practices are just a few reasons
to make sure you are using a professional.
But how do you know if you are hiring a
professional? One of the ways our industry is
trying to raise the quality and professionalism of its members is through certification.
Earning a Landscape Industry Certified designation provides a benchmark of professionalism and sends a message that the job is being done with experience that can be trusted.
The National Association of Landscape

Professionals, or
NALP, has a number of certification
programs that provide members with
training and also a
way of measuring
their knowledge.
Certification entails
completing
a rigorous trainSeneca Hull
ing regimen that
includes the very
latest techniques for design, installation and
management of landscapes.
Each state association holds tests using
their strict guidelines and testing materials.
Idaho started doing this in 2001. To date
there are 142 Landscape Industry Certified
individuals in the state. The goal for the Idaho Nursery and Landscape Associates when
it began administering the program was to
not only raise the knowledge and professionalism of the industry but to provide the
end user with a way to be able to measure
that as well. Whether it is a homeowner
hiring a landscaper or a general contractor
qualifying bidders, certifications can help

level out the playing field and give everyone


who is interested in raising the bar a way to
show it.
As an employer, certification helps separate out individuals who are interested in
their education and future in the industry.
Someone who is just going to do this until
something better comes along isnt going
to invest the time and energy is takes to pass
this test. It is not only a written Q&A, but
also a hands-on test where you go through
stations and do things like plant a tree, wire
a controller and run a skid steer. The completion of the testing process is indicative of
the ability to perform under pressure and
meet deadlines which is necessary in this
business. It is also required that the certification-holders recertify with continuing education that keeps them current in new issues
and trends in the industry. Certifications include certified manager, technician (exterior
and interior landscape), horticulture technician and lawn care rechnician.
We have additional Idaho certification
programs, including the Certified Nursery
Professional and the Certified Plant Diagnostician. These certifications relate more
to the retail segment of the green industry.

| 15

The College of Western Idaho horticulture


program uses the CNP as part of their graduation requirements, which means students
come out of the program with a solid base
of knowledge that employers can use to base
where they start in the industry.
With the shortage of skilled workers in
the industry, it is important for us to support these programs and the elevation of
being a skilled professional. We must overcome the stigma that if you have a pickup
truck, a dog and a wheelbarrow you can be a
landscaper. We create beautiful and sustainable projects, we provide shade and oxygen.
There is so much more to it than meets the
eye. Next time youre talking to a landscape
professional, ask them about certification
and their experience in the industry. If they
are certified, you will find a qualified, proud
and creative individual who can be distinguished from the rest of the competition.
Seneca Hull is President of Franz Witte
Landscape Contracting, Inc., a 45-year-old
company providing landscape, maintenance and
nursery services with locations in Boise and McCall. She has spent many years involved in state
and national landscape associations promoting
the industry and the people in it.

PROPERTY MANAGEMENT

SYNCHRONIZING
YOUR SPACES
208 345 9000 | colliers.com/boise

16 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

Commercial property management


takes skill and sensitivity
By Tim Reid and Tammy Cox
Special to the IBR
Commercial property management is
not for the faint of heart. A good property
manager has to be equipped with a number
of skillsets. They are part construction manager, part accountant, part engineer, part
psychiatrist, part interior designer, and part
landscape architect the list goes on and
on. For this reason, most owners opt to hire
a property management company to service
their real estate assets. Throughout the selection process, property owners must know
what questions to ask and how to know if
they are receiving a fair deal.
Certification and licensure
Perhaps one of the most important factors in choosing a property manager is
whether or not they are a Certified Property Manager (CPM). Through this and other credentials (such as licensing, which is
not currently required in Idaho) a property
manager demonstrates a level of education,
dedication and expertise to the industry that
a lay person would
not have. Furthermore, it is not an
endeavor that can
be achieved quickly or easily. Much
like the Certified
Commercial Investment Member
(CCIM) designation, the process
takes roughly two
years, and the apTammy Cox

plicant must take a number of classes and


pass a rigorous final exam to even be considered to earn the designation.
When a property manager has one or numerous forms of certification or licensure, it
shows that they are in the business for the
long haul rather than just punching a time
card. In many states, being licensed in real
estate is a requirement to work in the property management field. Keeping up with
regulation is much easier when you hold a
license, certification, or are involved in some
sort of professional organization.
Involvement in concurrent professional
organizations such as Commercial Real Estate Women (CREW), the Building Owners and Managers Association (BOMA),
and so on is also a mark of a competent
property management professional. Having a consistent source of knowledge and
resources to pull from sets experienced
professionals apart from those who may
not be the best fit.
Communication
It is no secret that tenants appreciate a
property manager who is a good communicator, responsive to concerns, and proactive
in building maintenance. A good property
manager is able to quickly provide assistance
for any need that may arise, as well as anticipate issues before they become problems.
Knowledgeable managers who provide timely assistance build trust and rapport with the
tenants. Satisfied tenants typically remain,
unhappy tenants relocate. Establishing a
presence and familiarity with each property

is extremely important, as tenants


and owners want
to know that property managers can
respond quickly to
tenant and building needs.
When property management is
quick to respond
Tim Reid
it speaks leagues
to the tenants and
owners. Nothing shows care to those being
served more than dedication and a fast solution to whatever problem they may have.
That is the heart of why they are paying for
property management services, after all.
Trust
Above all, owners must be able to trust
the property management company they
employ. They need to know that the property manager will do everything in their power
to keep the building up to par and keep it
from falling into disrepair. They also must
know that they are going to be treated fairly
from a monetary standpoint as well.
An owner may expect to pay around four
percent on gross collections. Anything exorbitantly higher should raise an eyebrow and
some deeper investigation on the part of the
property owner.
Every step should be taken to ensure that
a property manager is legitimate, dedicated,
competent, and above all else, honest. When
looking for a property manager, ask for ref-

$75

Tickets by January 21

$85

Tickets after January 21

$85

Non-BOMA Members

19TH ANNUAL

COMMERCIAL
REAL ESTATE SYMPOSIUM

REGISTRATION
RATES

February 9, 2016
Stueckle Sky Center,
Boise State University
Breakfast & Program
6:30am - 9:30am
BOMAIdahoSymposium.org
www.ctagroup.com

erences and dont be afraid to call on those


references to get the facts. Reputation should
be a guiding factor in the decision.
Trusting a real estate asset, specifically a
commercial real estate asset, to a property
management company is akin to trusting
someone with their child. It is important to
know the ins and outs of how business is
conducted on the property managers part
as well as how qualified and productive they
are at carrying out necessary tasks (e.g. snow
removal and HVAC fixes).
By asking a few simple questions and
comparing notes, commercial owners can
guard against incompetence and dishonesty
and trust that their assets are in good hands.
For more information on the property
management industry, what is entailed in
credentialing and for other resources, visit the Institute of Real Estate Management
(IREM) website at www.irem.org.
Tammy Cox is the Senior Property Manager / Asset Services Specialist with Cushman &
Wakefield | Commerce focusing on property and
asset management in the greater Boise area. She
has more than 18 years of experience and extensive knowledge of commercial property management for various types of commercial, retail
and office. Tammy.Cox@comre.com. Tim Reid
is Market Leader of the Idaho region of Cushman & Wakefield | Commerce where he leads
brokerage services, drives business development,
oversees recruitment and client relationships,
and supports the brokers in assisting clients with
transactions. He has more than 20 years of experience in the Idaho commercial real estate market. Tim.Reid@comre.com

CONFIDENTLY
GLOBAL, EXPERTLY
LOCAL.

2016

Delivering value to our clients


in Boise, Idaho
and around the world.
Tenant/Landlord Representation
Real Estate Advisory
Investment Sales
Property Management
Engineering/Maintenance
Portfolio Administration
Project Services
Development Services
Facility Management

call for nominations


The IBR Money Makers program celebrates financial professionals
whose fiscal accomplishments set a high bar for their company
and Idahos business economy. Honorees will be profiled in IBRs
Money Makers publication and recognized in four categories:
Banking, Corporate, Investment and Professional. Plus, the Midas
Touch award will go to the top financial professional.

DeaDline for nominations


is feb. 3, 2016
(208) 287 9500 comre.com

For more information, go to:


idahobusinessreview.com/events/money-makers/

Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance

Electronic 2016
Book of Lists
Dont forget, all the information on the TOPLISTs
can be sorted! Get the files in Excel format and
import directly into your own list.
Just call 208-639-3528 to purchase the electronic
version of the 2016 Book of Lists.

46
892
4,460

INSIDE

The possibilities are endless!

LISTS

LOCAL
S
COMPANIE

CONTACTS

2016 Idaho BusIness RevIew Book of Lists


sponsored by

18 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

Water efficiency means cost savings in multifamily housing


By Klaus Reichardt
Special to the IBR
Developers of multi-housing developments in the U.S. are becoming increasingly aware of the need for these developments
to use water much more efficiently. Unlike
water conservation, which is usually a shortterm solution to address a temporary water
shortage or drought condition, water efficiency refers to long-term measures to reduce water consumption over years to come during
wet and dry periods. Much of this awareness
is due to the four-plus years of severe drought
in California. And even though the state expects considerably large rainfall events next
year, that state has already put into place a
number of rather significant water restrictions that are likely to stay in place no matter
what water conditions are in the future.
However, water concerns are not just a California issue. Drought conditions have surfaces in most all parts of the country over the
past decade often in areas that traditionally
due not have water concerns and more are
expected. Plus, the U.S. Environmental Protection Agency estimates U.S. consumers use
about 30 billion gallons of water every day
and that the average American family wastes
at least 10,000 gallons of water per year. With
that much water consumed and that much
water wasted, it should be no surprise that
industry, consumers, and the managers and
developers of multi-housing properties are
becoming more focused and concerned
about water.
Developers of new properties and those
being planned are fortunate in that they can
incorporate into their properties new systems
and technologies that use water more efficiently. But what about those properties that
have already been built, especially if they are
10 years older or more? The best way these

properties
can
tackle water issues
is to start with a
water audit. Its not
necessarily an easy
process but it can
be done in-house
and it is not a
quick
process.
But properly performed, developKlaus Reichardt
ers and managers
will typically have
a very clear picture as to how much water
there properties are consuming, where there
is waste, and where steps can be taken to reduce consumption, often quite considerably.
Definitions and steps in a water audit
A water audit involves working through
a detailed checklist (based on plumbing
blueprints) of where water is being used at a
property but it all starts with your local water
utility. Our first goal is to establish a benchmark of how much water a property is using
on a monthly basis. Ask the average consumer how much water they use in their home
and they likely have no idea. This is not much
of a surprise. But ask the owner of an apartment community or multi-housing development how much water the property uses and
they too may have no idea. Not only is this
an oversight when it comes to using water efficiently, it can be a very costly dollars-andcents oversight as well. Water is getting more
and more expensive all the time.
To establish this benchmark, turn to the
water utility company for at least three years
of water utility bills. The bill will list the
amount of water used at the property. Average the three years of bills to determine a

benchmark. Also look for spikes in the consumption rates. This can indicate a major
leak somewhere on the property.
In fact, some audits are conducted just to
look for leaks and to resolve them. However,
the goals of most water audits are far more
comprehensive.
After collecting utility bills, some of the
other steps in a water audit include the
following:
Collecting occupancy and vacancy records. Expect more water to be used during
high occupancy.
Conducting a walkthrough of the property with the plumbing blueprints. This
would include common areas as well as individual units. The goal is to locate pipes,
fixtures, and other water-delivering or water-removing systems; also compare water
consumption of comparable units. If some
are using considerably more water than others, this should be investigated.
Identify how vegetation is being irrigated and see if a drip-irrigation system, which
uses considerably less water, could be installed.
Take a look into common area restrooms. The audit should also include
identifying how old the fixtures are and
what types of fixtures are installed.
Check common area HVAC systems. In
large commercial properties, cooling towers
can consume as much as 25 percent of all
the water used in the facility. While most of
the other items just listed can be handled by
in-house staff, checking cooling towers, if
installed, typically will require a contractor
or engineer to be called in.
Dealing with the results
If water utility bills for the entire com-

Sales Points

REAL
ESTATE
Residential

CONSTRUCTION
Single Family Homes
Treasure Valley

Northern Idaho

Eastern Idaho

Boise
Meridian
Eagle
Nampa
Caldwell

Avg. wage

$36,643

18.9
7.1
-13.7

171
348

Canyon County
1,117
# sold
$170,415
Avg. price
Days on market 50

992
$161,901
58

12.6
5.3
-13.8

28

Kootenai County (Coeur dAlene)


913
# sold
$200,000
Avg. price
Days on market 117

748
$186,916
116

22.1
7.0
1.0

32

Bonneville County (Idaho Falls)


506
# sold
$157,000
Median price
Days on market 76

406
$132,000
93

24.6
18.9
-18.4

Twin Falls County


362
# sold
$174,217
Avg. price
Days on market 81

336
$160,303
88

7.7
8.7
-8.0

@ $49,933,942

44

Twin Falls
Idaho Falls

Unemployed

4.3 %

@ $5,382,277

37

@ $6,034,065

@ $4,976,102

AIR TRAVEL

Boise Airport

Q3 2015 Q3 2014

405,023 369,790
402,928 368,627
Magic Valley Regional Airport
got on a plane 8,709
6,009
got off a plane 8,780
6,207
got on a plane
got off a plane

% change

2,256
$247,484
51

@ $53,098,212

Coeur dAlene
@ $9,844,360
Post Falls

Q3 2014

Ada County
2,682
# sold
$265,147
Avg. price
Days on market 44

SEPT 2014

WORKFORCE
September 2015

563,815

Q3 2015

SEPT 2015

447

plex are paid by the developer, than they


will likely have more leverage to install more
water efficient fixtures and systems in individual units. This can be anything from installing aerators in sinks or showerheads to
swapping out older toilets for new high-efficiency systems. If residents pay their own
water bills and reducing water consumption is a key concern of the property owner/
manager then ongoing education efforts
will be necessary to teach tenants on how to
reduce water consumption.
If common area restrooms have older fixtures, these should be replaced with
more efficient systems. As to urinals specifically, because the state of California now
requires new urinal installations to only
use 0.5 gallons of water or less per flush,
many developers/managers are finding it
more economical to install no-water urinal
systems. They tend to cost less to select and
install and eliminate this as a water consuming fixture.
Because so much water is used to irrigate
vegetation, landscaping properties with natural vegetation can result in significant water
savings. Probably the most noteworthy example of this is the MGM hotel in Las Vegas.
Through a variety of landscaping and other water efficiency efforts, the property has
saved more than 2 billion gallons of water
since 2008. Their first step in accomplishing
this: they conducted a water audit.
Klaus Reichardt is founder and CEO of Waterless Co. Inc., Vista, Calif. Reichardt founded
the company in 1991 with the goal to establish a
new market segment in the plumbing fixture industry with water conservation in mind. Reichardt is a frequent writer and presenter, discussing water conservation issues. He can be reached
at klaus@waterless.com.

Sources: Boise, Eagle, Meridian, Nampa, Caldwell, Coeur dAlene,


Post Falls, Twin Falls, and Idaho Falls Building Departments;
Intermountain MLS; Coeur dAlene MLS; Snake River MLS; Idaho
Department of Labor; Boise Airport; and Magic Valley Regional Airport

Get ahead in business.


VOLUME 1

IDAHO BUSINESS REVIEW

2015

Renewable Rooftops
ROOF PLANTINGS PROVIDE
COOLING POWER, PATIO SPACE

By Doug Copsey
Special to the IBR

he views from Boises tallest


buildings have always
been
spectacular. Far off, the
curves of the
foothills beckon. In season,
the city
of trees shows its greenery
to advantage, and
downtown construction
provides nonstop
activity.
But the higher you get,
the more you see the
rooftops of other buildings.
While some cities, such
as Chicago and San
See COVER STORY, page

INSIDE
THIS ISSUE

Boises LIV District

in Private, Publ

ic and Infra

structure/Tran

spor tation

A slew of standards 4
Low-water
landscaping
5
Expert opinions 1 0
Indoor air quality
matters, too
14

10

Top Proj
ect of the
Year
Highway
16 Extension

CBC ADVISORS
www.CBCadvisors.com

| #CBCAdvisors

The Intermountain Wests


largest privately held
Commercial Real Estate
firm

Subscribe to the Idaho Business Review for the


best in local business intelligence
Fresh news in print, online and daily e-mail updates
business focus covering all leading Idaho industries
expert perspectives providing unique insight
to keep you competitive

Call, e-mail, or go online


800-451-9998 | subscribe@idahobusinessreview.com
https://subscribe.idahobusinessreview.com | Use promotional code BIZ and get 4 FREE issues

www.idahobusinessreview.com

IF YOURE

WA I T I N G
FOR A SIGN

THIS

IS IT.
Advertising works!

20 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

SEPTEMBER
Patty Gordon joins Colliers as a
senior property manager

Patty Gordon

Patty Gordon has joined Colliers Internationals Boise office


as a senior property manager.
Through her 30-year career in
commercial property management, Patty has managed retail,
office and industrial space, as well
as high rise and historic buildings.
Gordon manages more than
800,000 square feet of office and
retail space throughout the Treasure Valley.

Dana Long joins Thornton


Oliver Keller

Thornton Oliver Keller Commercial Real Estate has hired Dana


Long as a brokerage assistant.
Long has more than eight years
of administrative experience and
will be responsible for assisting
real estate agents and their clients.
Long holds a BA from Northwest
College of the Assemblies of God
in Seattle.

Bob McQuade elected


as president of the Idaho
Association of Counties

Ada County Assessor Bob McQuade has been elected as president of the Idaho Association of
Counties, effective Oct. 1.
McQuade has been a member
of IAC for many years, and spent
the past three years in various IAC
Board roles, including vice president, secretary and treasurer.
IAC was formed in 1976 and
represents 44 Idaho counties. It
works to help formulate policies
Bob McQuade
and legislation for counties, in
addition to providing services, research, and coordination among member counties. It represents nearly 400 county elected officials statewide.

Spencer Brown joins Zions


Banks commercial lending

Dana Long

OCTOBER
Betsy Hayhurst joins Thornton
Oliver Keller

Thornton Oliver Keller Commercial Real Estate has added Betsy Hayhurst as a property accountant. She will be responsible for supporting accounts receivable functions for
a commercial real estate portfolio of more than 5.5 million
square feet.
Hayhurst brings more than 12 years of accounting experience and extensive AR knowledge, most recently with
Boise, Inc.

Rick Gillespie moves up


at D.L. Evans Bank

Rick Gillespie

Rick Gillespie has been promoted from mortgage loan officer


to the position of assistant vice
president sales manager of the
Treasure Valley real estate department at D.L. Evans Bank.
Gillespie earned his BS in finance from Montana State University. He has been employed
with D.L. Evans Bank since 2013
and has more than 10 years of financial experience.

Jamal Nelson directs


preconstruction for McAlvain

McAlvain Group of Companies, Inc has hired Jamal Nelson


as director of preconstruction services. He will manage McAlvains
project management resources
associated with preconstruction
services.
Nelson has more than 15 years
of experience in the construction
industry with extensive experience
in preconstruction through construction phase operations. He
Jamal Nelson
worked on the Eighth and Main
building in Boise, Boise State Universitys Environmental Science and Research Building, Boise State Lincoln Parking Garage expansion, and the Boise
State Micron College of Business and Economics.
Nelson holds a BA in economics from the University of
California, Davis with a secondary teaching credential from
Chapman University in Orange, Calif.

Spencer Brown

Spencer Brown has joined


Zions Bank as a commercial relationship manager. He is based at
the Boise Eagle and Chinden Financial Center on Eagle Road.
Brown was previously a community banking business relationship manager at US Bank,
where he was responsible for
business development for eight
branches in the Boise, Eagle and
Meridian markets.

New interim CEO for


NeighborWorks

Bud Compher has been appointed interim president and


CEO of NeighborWorks Boise, a
nonprofit community development organization that works to
provide affordable housing.
Compher joined NeighborWorks Boise as the director of real
estate development earlier this
year. He has 23 years of experience, including 13 years managing a non-profit housing program.
Bud Compher
He has developed single-family
housing throughout Idaho in
conjunction with state and federal programs.
He replaces CEO Joe Swenson, who left NeighborWorks
Oct. 12.

PrimeLending adds staff in


Boise and McCall offices

Jeremy Bordner

Kelly Kingsford

Gayle Perryman

Danielle Bachmann

Christine Reino

Robert Hall

Kyle Koski promoted at Idaho


Independent Bank in Hayden

Kyle Koski has been promoted to vice president and


commercial loan officer at Idaho Independent Bank in
Hayden.
Koski has been with IIB since May 2003. He has more
than 12 years real estate and commercial lending experience. Koski graduated cum laudefrom the University of Idaho with a BA in physical education and a minor in business.
Koski is chairman of the Panhandle Chapter of the Rocky
Mountain Elk Foundation and a member of the Hayden
Lake Rotary Club.

Servpro in Boise adds three


restoration specialists

Eric Knepprath

Guido Bini-Acheson

Servpro of Boise has hired


Eric Knepprath as director of
construction services. He has
more than 12 years of experience
in the construction industry.
The cleanup and restoration
company has also added Lucas Garcia as a superintendent in their Boise construction division. Garcia has
more than ten years of experience.
Guido Bini-Acheson joins the
Lucas Garcia
company as Boises new production manager. He is certified in
water and fire restoration, and applied structural drying.

Like Us On
Facebook

facebook.com/idahobusinessreview

Follow Us On
Twitter

twitter.com/IBRNews

Follow Us On
Instagram

@idahobusinessreview

PrimeLending, a Plains Capital company, has added


nine people to its Boise office.
Jeremy Bordner is the branch manager. He has 15 years
of mortgage banking experience and most recently oversaw
mortgage banking as well as construction and residential
portfolio lending as executive officer at Idaho First Bank.
Michael Heeb is the production manager. He has 15
years of mortgage banking experience. Most recently, Heeb
was the regional manager of Mountain Wests Bank Real Estate Division.
Other Boise staff additions include Senior Loan Officers Kelly Kingsford, Gayle Perryman, and Steve Coleman, as well as Jamie McBride, Danielle Bachmann, and
Christine Reino will work from PrimeLendings McCall
office. She has 15 years of title and escrow, and mortgage
lending experience.

GET
SOCIAL

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

NOVEMBER
Thornton Oliver Keller adds
three staff members

Myllissa Reyes

Joe Gillis

Myllissa Reyes, Joe Gillis, and


Stephanie Todd have joined Thorton Oliver Keller Commercial Real
Estate.
Reyes will be responsible for
all receptionist and front office
duties. She brings more than five
years of administrative work experience and is a veteran of the United States military.
Gillis is the companys new
Stephanie Todd
maintenance manager. He brings
more than 20 years of facility
management, equipment maintenance, and construction. Gillis is a veteran of the United
States military.
Stephanie Todd joins TOKs property management department. She brings more than four years of administrative
work experience and will be responsible for the daily coordination of property operations of retail, office and industrial
properties. She earned a BA in Linguistics and a minor in
American Sign Language from Boise State University.

Touchmark appoints life


enrichment/wellness director
Jim Johnston has been appointed life enrichment/wellness director at Touchmark at Meadow Lake
Village. Johnston is responsible for
planning and overseeing the retirement communitys events and activities. He started at Touchmark as
a concierge and most recently
served as life enrichment/wellness
assistant.
Prior to working at Touchmark,
Jim Johnston
Johnston worked at T-Mobile as
a customer service representative
and before that at Debt Reduction Services in several positions including credit counselor, auditor/trainer, and regional manager. Touchmark at Meadow Lake Village is a full-service retirement community.

Elaine Clegg elected to national


planning organization board

Boise City Council Pro Tem


Elaine Clegg has been elected
president of the Association of
Metropolitan Planning Organizations. AMPO is a nonprofit, membership organization established
in 1994 to serve the needs and interests of metropolitan planning
organizations nationwide. Clegg
represents the City of Boise on the
board of the regions MPO, the
Elaine Clegg
Community Planning Association
of Southwest Idaho.
Clegg was elected to the Boise City Council in 2003
and re-elected in 2007 and 2011. She has worked for the
non-profit organization Idaho Smart Growth since 1998,
where she specializes in pedestrian, bicycle and comprehensive land use planning projects.
She sits on the board and executive committee of Valley
Regional Transit and the Boise metro regional transit authority, and represents the Boise region on the Association of
Idaho Cities Board of Directors. She also sits on the policy
steering committee for National League of Cities transportation and infrastructure services committee.

Idaho Economic Advisory


Council names new chairman,
vice chairman

The Idaho Economic Advisory Council has elected Arlen


Wittrock, Region 5 representative (Pocatello), to serve as
its chairman, and Margaret Watson, representative at-large
(Parma), to serve as its vice chairman. Both Wittrock and
Watson were appointed to EAC by Governor C.L. Butch
Otter in 2011, and then re-appointed in 2014.
Wittrock is a public affairs and communications consultant with ON Semiconductor in Pocatello. He has more
than 30 years of business experience and is a former teacher,
education professional, and chief of staff to U.S. Congressman Arlen Erdahl. He serves on the boards of the Pocatello-Chubbuck Chamber of Commerce, Bannock Development Corporation, and the Associated Taxpayers of Idaho.
Watson is co-owner of the J.C. Watson Company in Parma. She has serves as mayor, Parma City Council president,
and as a special education teacher. She is a founder of the
Treasure Valley Agriculture Coalition, sits on the Teach Idaho Advisory Board, and is a former Parma Chamber of Commerce board member and president.
The EAC advises the Governor and the Idaho Department
of Commerce on goals and objectives that further economic
development.

Sandra Cratty is operations


coordinator at The Owyhee

Sandra Cratty has been promoted to operations coordinator at The Owyhee, managed by
Griffs/Blessing. She has worked
at The Owyhee for seven years as
housekeeper, part-time supervisor,
houseman and day porter.
Cratty will be responsible for
the management of 36 residential
units. She will also coordinate residential and commercial promotional events.
Sandra Cratty
Cratty holds an AA in human
arts, a BA in psychology and is pursuing her MA in psychology with a behavioral health focus.

David Caldwell joins


Arthur Berry & Company

Ada County names new


operations department
director, deputy director

The Ada County Board of Commissioners has appointed Scott


Williams as director of the countys operations department, and
Bruce Krisko as deputy director of
the department.
Williams has been the interim
director for the past two months.
He has served Ada County for
more than 30 years, the past 15 as
deputy director of operations.
Krisko served as construction
Scott Williams
manager and owner representative
for Ada County Operations for
nine years, managing large-scale construction and remodel
projects for the county.

Lynn Hightower is new DBA


executive director

Lynn
Hightower
became
the new executive directorof the
Downtown Boise Association on
Dec. 1.
Hightower served for 12 years
as communications director for
the Boise Police Department. Before joining the Boise Police in
2003, she spent nearly 17 years
in television and broadcast news,
mostly in the Boise area.
The Downtown Boise AssociaLynn Hightower
tion is a non-profit organization
designated by the city of Boise to
administer the Downtown Boise Business Improvement
District, or BID, a defined area within which businesses
pay a fee that supports improvements within the districts
boundaries.

Susan Olson is first woman


president of Hillcrest Country Club

Susan Olson

Susan Olson, director of technology and finance for AmeriBen,


will be the first woman president
of the Hillcrest Country Club. Olson will take the position Feb. 4.
Before taking her job at AmeriBen in September, Olson was executive director at the Hawley Troxell law firm in Boise for 15 years.
Olson has served on Hillcrests
board for two years.
Hillcrest was founded in 1940.

| 21

David Caldwell

David Caldwell has joined


Arthur Berry & Company, marking
his return to the commercial
real estate industry. He spent
the last two years coaching and
teaching high school business and
economics.
Caldwell started his career in the
real estate department of Albertsons, where he was responsible for
opening fuel centers near company stores throughout the country.
He has worked for large brokerage
firms and run his own business.

Ada County Association of


Realtors members appointed to
national committees

Six members of the Ada County Association of Realtors


have been appointed to committees at the National Association of Realtors, the largest trade association in the country.
Julie DeLorenzo of Keller Williams Realty Boise will serve
on the Public Policy Coordinating Committee and the Realtors Party Member Involvement Committee. Gail Hartnett
of Keller Williams Realty Boise is the 2016 Presidents Liaison. Kit Fitzgerald of Red Barn Real Estate will serve on the
Broker Involvement Council, the Leadership Academy Advisory Group, and the RPAC Major Investor Council. Brenda Kolsen of Silverhawk Realty and ACARs 2015 president
will serve on the Business Issues Policy Committee and the
Professional Development Committee. Georgia Meacham
of Front Street Brokers will chair of the Housing Opportunity Committee and serve on the Public Policy Coordinating
Committee and the Smart Growth Advisory Board. Katrina
Wehr of Silvercreek Realty Group and ACARs 2015 vice president will serve on the Risk Management Committee.
Staff from ACAR and the Intermountain MLS have also
been appointed to national committees.
Ada County Association of Realtors Public Policy Director Miguel Legarreta will serve on the Housing Opportunity
Committee and the Public Policy Coordinating Committee.
CEO Breanna Vanstrom will serve on the Association Executives Young Professionals Network Advisory Board and the
Data Strategies Committee. Intermountain MLS CEO Greg
Manship will serve on the Multiple Listing Issues and Policies Committee.

DECEMBER
Angie Castillo joins Idaho
Independent Bank in Caldwell

Angie Castillo has been appointed as senior real estate loan


officer at Idaho Independent
Banks Caldwell branch. She has
more than eight years of mortgage
experience.
Castillo is a member of the
Idaho Hispanic Chamber of Commerce, Nampa Association of Realtors, and the Caldwell Board of Realtors. She graduated with a MAcct

Angie Castillo

from the University of Phoenix.

See PEOPLE, page 22

22 |

S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n | J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m

PEOPLE

Continued from 21

New communications director


for Ada Association of Realtors

Shari Fernandez is the new director of communications for the


Ada County Association of Realtors, or ACAR.
Fernandez earned a BA in communication from Washington
State University and a masters in
public administration from Boise
State University. She has served
as the business development director for the Heart Walk with
the American Heart Association,
Shari Fernandez
the director of programs for the
Community Transportation Association of Idaho, and as a development associate at Idaho
State University.
Sharis prior work as a licensed transaction coordinator and
closing agent with a local real estate firm gives her the professional and hands-on experience needed to serve ACARs more
than 3,600 members, the association said in a statement.

CSHQA staff become company


stockholders

Scott Hopkins joined CSHQA in 2005. He passed the


LEED Accredited Professional Exam in 2009 and earned his
Idaho state license to practice architecture in 2012. He is a
member of the American Institute of Architects, is a Green
Globes Professional, and is a board member of the United States Green Building Council Idaho. He received his
MArch in 2005 from the University of Idaho Idaho Urban Research and Design Center. Hopkins is working on
The Springs Apartments Phase II in McCall, the Samaritan
Village Apartments rehabilitation in Boise and Canyon Corners Mixed-use Building in Park City, Utah.

Marcy Haynie returns to Idaho


Independent Bank

Marcy Haynie has returned


to Idaho Independent Bank as a
real estate loan officer at the Boise
branch.
Haynie has more than 30 years
of banking and mortgage lending
experience. Prior to joining IIB,
she worked at Freddie Mac and
most recently as a real estate loan
officer in Alexandria, Va.
Haynie graduated from the
College of Southern Idaho with a
Marcy Haynie
degree in finance. She also studied
business management at Boise
State University. She has been a member of the Ada County
Association of Realtors and Womens Council of Realtors.

Vacasa hires Boise CFO

Jeffery T. Ward

Scott Hopkins

Jeffery T. Ward has been named senior associate stockholder and Scott Hopkins has been named associate stockholder at CSHQA.
Ward has been with the firm since 2004. He is a civil
engineer licensed in Idaho, Colorado, Oregon and Utah. He
is a member of the National Council of Examiners for Engineering and Surveying and the American Society of Civil
Engineers, and he is a Green Globes Professional. Ward received a BS in civil engineering from Boise State University
in 2003. He is working on the Inn at 500 located on the
south east corner of Capitol and Myrtle and The Grove Plaza Renovation in downtown Boise.

The Portland, Ore.-based Vacasa, a vacation rental management


company with 107 workers in
Idaho, has hired a chief financial
officer who will work out of Boise. Previously, all five members of
Vacasas management team had
worked from Portland.
Ryan Vestal will oversee Vacasas financial management, including the accounting, treasury, tax,
and financial analysis functions.
Ryan Vestal
He most recently served as VP of
finance at BodyBuilding.com.
Vacasa was created in 2009 and manages vacation homes
in 135 markets, the company said.

TitleOne adds to Boise and


Coeur dAlene locations

Andrew Ford is the newest title officer and owner at the


TitleOne office in Coeur dAlene. He joined TitleOne in
2005 and has more than ten years of title experience and a
background in trust services.
Sarah Harper has joined the Boise location as an escrow
officer. She brings nine years of title and escrow experience
in Idaho and Oregon. Harper has extensive knowledge of
residential resale and refinance transactions.

ACAR adds to 2016 board of


directors

At the annual membership meeting of the Ada County Association of Realtors, held Oct. 15, the following realtors were elected to serve on the organizations board of
directors, starting in 2016: Gary Salisbury of Red Barn Real
Estate, 2016 vice president; Danielle Cullip of Silverhawk
Realty, 2016-2017 treasurer; Jeffrey Wills of Amherst Madison Legacy, 2016-2018 director; and Krista Deacon of Silvercreek Realty Group, 2016-2018 director. They will serve
with ACARs 2016 President Carey Farmer of Group One,
2016 President-Elect Katrina Wehr of Silvercreek Realty
Group, and 2016 immediate Past President Brenda Kolsen
of Silverhawk Realty.
At the same meeting, five members were elected to represent ACAR as state directors on the Idaho Association of Realtors board, serving from 2016-2018: Becky Enrico-Crum
of Andy Enrico & Company, Shirley Koch of Coldwell
Banker Tomlinson Group, Carolyn Sinnard of Happy Dog
Realty, Susan Weaver of Group One, and Greg Winther of
Silvercreek Realty Group.

Tim Savona named general


manager at Ford Idaho Center
and Horse Park

Tim Savona, an 11year veteran of the sports and entertainment industry, has been named general manager of the
Ford Idaho Center and the Ford Idaho Horse Park. Savona
works for Spectra by Comcast Spectacor, the new management for the entertainment venues.
Most recently he worked at Spectras Budweiser Events
Center in Loveland, Colo., the last two years as assistant general manager. Prior to that, he worked at the companys Iowa
Events Center and Wells Fargo Arena, both in Des Moines.
Savona graduated from Bowling Green State University.

Submit people announcements to be considered


for publication in the Idaho Business Review at
idahobusinessreview.com/businessannouncements/

GREEN PARKING
cling programs, or encourage a diversity of
mobility. Innovative design ideas are considered, with points awarded for provision
of public open space and even community
gathering areas.
New and existing structures are eligible for program participation.
Max Clark, parking and facilities director for Boises Capital City Development
Corp., said environmental design and
construction is not CCDCs first priority.
CCDC owns and operates six garages with
2,500 spaces in Boise.
I want to save money where I can, and
I want my garages to be clean and safe,
Clark said. The latter is actually more
important to me than the others.
But Clark noted that he recently took
an important step toward greener op-

Continued from 12
eration when he proposed to raise the
monthly parking rates at all six garages.
The rates would rise from $100 to $135
in CCDCs two most popular garages, and
from $100 to $120 in the other four.
Anything that discourages commuters
from driving downtown in single-occupancy vehicles, Clark noted, is good for
the environment.
While Im in the business of providing parking, I fully acknowledge not everybody has to drive, or drive everyday,
he said.
CCDC is installing LED lights in its
parking garages. And Clark also pointed
to the recently installed automated kiosks
that have parking customers pay while
theyre still on foot, so they dont queue
for as long at a pay station on the way out.

One of the ideas behind that is the


transaction time upon exiting, therefore
shortening idling time and air pollution
and all those things people hate when
they leave parking garages, he said.
Thats one of the reasons we went for the
automated payment system rather than
cashiers.
In Portland, TriMet achieved net
zero status for its Southeast Park Avenue
Station Park & Ride near the Oak Grove
neighborhood in Portland, Ore. That
means it creates as much energy through
its rooftop solar array as it uses in its basic
building functions, such as elevators and
lighting. The multimodal transit center is
among the sustainable features along the
transit agencys new orange line.
The parking garage near Oak Grove

may be the greenest in Portland. It features


a rooftop garden, ample bike parking and
seven electric vehicle charging stations.
Sixty-eight percent of the garage and station area are set aside as restored habitat,
and all of the buildings stormwater runoff
is captured and treated on-site.
Clark, in Boise, said hed like to install
solar panels eventually on CCDC parking
garages.
Were not perfect, and were certainly not a trend-setter, I can tell you that,
he said. The last seven years or so, weve
had to take care of infrastructure problems. Some of the environmental stuff is
nice to do, yes it helps, but if theres no
real benefit, like LEDs were five years ago
when I wouldnt touch them thats not
what I need.

J a n u a r y 1 5 , 2 0 1 6 | w w w. i d a h o b u s i n e s s re v i e w. c o m | S Q U A R E F E E T q u a r t e r l y I D A H O B U S I N E S S R E V I E W p u b l i c a t i o n

HOUSING
Continued from 13
What is a covered dwelling under the
FHA?
Under the Fair Housing Act design and
construction requirements, a dwelling unit includes: a single-family unit in buildings with
four or more units, an apartment, and a room
in which people sleep even if they share kitchens or bathrooms, like transitional housing.
The design and construction requirements apply to covered multifamily dwellings. Covered multifamily dwellings are:
1. All dwelling units in buildings containing four or more dwelling units if the
buildings have one or more elevators, and
2. All ground floor units in other buildings containing four or more units, without
an elevator.
Covered dwellings include housing that
is privately or publicly funded and housing
that is for rent or for sale. The design and
construction requirements apply to condominiums, apartment buildings, transitional
housing, time-shares, homeless shelters that
are used as a residence, student housing,
dormitories, assisted living housing, and
other types of housing.
Design and Construction Education and
Training
Accessibility First with IFHC and other
partners provided free design and construction training in Idaho, Utah, Washington,
and Oregon in April 2014 and 2105. For design and construction training and registration in 2016, visit Accessibility Firsts website.
Zoe Ann Olson is the executive director of the
Intermountain Fair Housing Council, Inc. She
has 14 years of experience as an attorney with
Idaho Legal Aid Services, Inc. where she served
as the housing specialty chair and fair housing/
fair lending project director. Zoe Ann has had
extensive fair housing training via John Marshall University, Seattle University, HUD, Accessibility First, National Consumer Law Center, National Fair Housing Alliance, and AARP.
Shes a member of Idaho Woman Lawyers.

PROPERTY MANAGEMENT
it, Jackson-Heim said. I dont know if
in my job its my place to have a strong
opinion on what should happen.
Jackson-Heim established a task force
three years ago
to address the
regulation of
property management, and
invited several
in the real estate sector to
take part.
We
had
maybe four-five
show up in the
core
group,
Jeanne Jackson-Heim
she said. They
were not all of
one mind. Weve done nothing in the last
two years. We were looking at some draft
legislation, but never got much farther
than that. We need to do something to
reconvene that group.
At one time, earlier in the millennium,
Boise had more property management
firms than San Antonio, the nations seventh largest city, said Drost, whose firm
manages just under 1,000 units smaller
apartment complexes and single-family
homes.
If you look at the number of property managers in Boise to other like-size
cities, you wont find as many (in other
cities), Drost said. That aspect is good.
But you can become a property manager
and not do a damn thing.
Propst said 15-20 years ago there were
relatively few property managers in the
Treasure Valley, but the numbers grew
staggeringly in the 2000s as Boise-Meridian-Nampa grew into a single mass. The
areas population has grown 44 percent
since 2000. Because there is no oversight,
nobody knows how many property management companies there are in the Treasure Valley, said Propst, who estimates
there could be more than 300.

ANIMAL POLICY

Continued from 9

a specific limitation resulting from a disability. Blooms service dog, Fallon, is trained
to help her with balance issues associated
with Multiple Sclerosis. Animals trained to
perform specific services receive protections
under the Americans with Disabilities Act
(ADA), and the law provides guidelines to
help employers make arrangements with
employees who use service animals.
On the other hand, Therapy Animals
(whose mere presence helps owners deal
with mental health issues) do not receive
federal protections though some states
have created provisions that extend some
benefits to their owners.
Fallon sat beneath a table when Bloom
was interviewed for this story. Though Fallon
was mostly well-behaved, she did bark on
two occasions: once when a heavy-stepping
man interrupted the conversation to offer her
a dog biscuit (I got two Rottweilers in the
back of my truck, said the man), and once
when a small child entered the building.
Fallons not used to children, said
Bloom, reaching down to correct her dogs
behavior with a calming stroke of her palm.
They move too fast for her. So we work on
socialization every time were in public.
If the coffee shop patrons were disturbed
by Fallons barking, they didnt show it. But
the reaction would most likely be different
if the woofs of a well-loved pet disturbed a
tense meeting between an aggrieved client
and a hired professional on the 20th floor of
a downtown office building.
Some buildings are laid out for dogs,
and others arent, said Jeremy Malone, vice
president at Oppenheimer Development
Corp., which manages One Capital Center
in Boise. One Capital Center has a no dogs
policy, but Malone says that hasnt been an
issue thus far.
No tenants have asked to bring dogs
into the building. You see it more often in
the tech industry, where theyre looking for

warehouse-style spaces with easier access to


outside. Multi-level buildings with elevators
arent conducive to dogs, for obvious reasons. But the markets always evolving, and
policies and floor-plans could change to accommodate renters needs.
Clay Carley, whose company, Old Boise,
owns several downtown properties, welcomes dogs at the buildings he owns and
manages. He brings his own dog, Buster, to
work on days that he wont be leaving the
office for meetings.
However, the dogs must not disturb anyone, Carley said of his dog-friendly policy.
Bad manners may mean being banned from
the premises. That goes for tenants as well.
Clif Bar, which is building a large plant
in Twin Falls, maintains a pro-dog stance
at its Emeryville, Calif., headquarters. But
dogs wont be welcome when the companys
plant opens in Twin Falls in the spring.
Its just not practical for a bakery to have
dogs on the premises, said Dean Mayer, Clif
Bars communications manager.
Right now, building owners and employers are responsible for determining whether
or not a company can institute dog-friendly
policies. However, employees with documented allergies or dog-related psychological issues might have some legal recourse to
limiting the presence of dogs in places where
they work.
Dogs are a whole ongoing conversation.
Its super difficult. Its not about bringing
your dog to work, its about, Is it a service
animal? said Krisjan Hiner, the president of
the Idaho Building Owners and Managers
Association, or BOMA. Nationally, BOMA
is struggling with this right now. Were trying to figure out best practices and universal
guidelines to follow.
But the trend hasnt yet led to changes in
law.
The regulatory force of the market is
handling the situation now, said Greenwall.

The primary issue is that property


managers receive rent payments and security deposits on behalf of the property owners. Often, those property owners
live in other states. Even if property owners are local residents, there is no formal,
state-sanctioned avenue guaranteeing
that the renter money gets to the property

| 23

Continued from 11
having two fake passports. He thought he
would come here and set up shop here
as (a Realtor). Theres no way for you to
know if the person you are dealing with
is reputable.
Numerous property managers have
caused problems in the past decade or so.
Among them, real estate developer Jerry

I dont know if a real estate


license is the way to go. The
No. 1 thing is protection
of funds, whether a trust
fund or just an audit of your
accounting.

Tony Drost, president of First Rate


Property Management in Boise

owners. Ultimately, the property owner is


responsible for getting security deposits
back to renters.
There is no regulatory body that audits those, Propst said. Some people
are co-mingling operating funds with security deposits and rents. You go 50 or 60
miles to the west and do that, and you
go to jail.
Keeping deposits and rents distinct
from operating funds prevents property managers from spending money that
shouldnt be spent, Propst said.
Propst believes Idaho should require trust or escrow accounts for
rents and security, as many states do.
He said they should be audited by a
state agency. The other four states with
no real estate broker or property management licensing requirements for
property management companies are
Massachusetts, Vermont, Maryland
and Maine.
I think the Idaho Department of
Finance should do it, Propst said.
The Idaho Department of Finance
would support Idaho Real Estate
Commission efforts to pursue property management regulations, but
Finance Director Gavin Gee does not
anticipate overseeing or auditing trust
funds.
Probably the more appropriate
place would be the real estate commission, Gee said. My experience is
to have the licensing agency conduct
the audits. Its awkward (when two
agencies do it). Its easier for the regulated people to know they are dealing
with one agency.
We do see a need for it, Gee continued. Both the experiences in Idaho and other states, there is a need
for some type of regulation. You are
talking about a lot of money.
Jackson-Heim has fielded a number of calls that illustrate Propsts
Wild West description of property
management in Idaho.
It puts our consumers at risk by
not having some sort of oversight,
Jackson-Heim said. People run out of
their states and come here to open up
shop. I had a guy call who just got out
of prison for money laundering and

Gunstream was sentenced to prison on


grand theft charges for siphoning some
$400,000 in rent money from Holly Plaza in Nampa and Cherry Plaza in Meridian. 4-U Property Management shut down
in 2007 with several clients saying the
company owed them money.
It has happened in the past, multiple
times, Propst said.
Jackson-Heim often fields calls from
puzzled Idaho property owners, many
who live in other states.
A property owner called me: We have
bought a property for investment but the
property manager has not sent us a cent,
Jackson-Heim said. Any time you have
money passing through it would be nice
to have the ability to check on it. I think
we have something we have to keep an
eye on.
Banner, who opposes licensing, has
worked in property management in
Idaho for 36 years. He manages about
250 units, about 70 percent of them single-family residences.
I had the benefits of building my
business without government interfering
with me, Banner said. I would never
do this in Oregon or Washington. They
dictate what you can charge. You cant
charge a late fee.
Banner does acknowledge he sees benefits to both licensing and no licensing.
Im not supposed to say this, but
licensing would create a barrier to entry (for some new property managers),
Banner said. Because we have a high level of competition, consumers are benefiting from lower fees.
Drost similarly weighs the pros and
cons of licensing in Idaho. He took part
in Jackson-Heims task force.
The committee talked about other
states and some laws are good and some
are bad, Drost said. I dont know if a
real estate license is the way to go. The
No. 1 thing is protection of funds, whether a trust fund or just an audit of your
accounting.
Drost wants to keep any state licensing simple.
Just some basic criteria and some
basic laws, he said. We dont want to
go crazy. Just some basic principles and
guidelines.

Look for the third edition of IBRs quarterly Square Feet April 15,
focusing on mixed-use management.

You might also like