GUARDIANS - San Diego Metro Magazine · The commercial real estate market in San Diego County...

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AUGUST 2015

MEN WHO MAKE A DIFFERENCE 2015 PAGE 17

Betty Peabody chairs Friends of Balboa Park, one of many organizations workingto keep the park alive and well into the next century. PAGE 10

GUARDIANSOF THE

PARK

C OV E R STO RY

13Office Market Surges as Tenants Gobble Up SpaceThe commercial real estate market in San DiegoCounty continued its strong recovery in Q2 2015. Com-ing on the heels of a flat first quarter, this past secondquarter saw another 1,245,000 square feet of office,lab and industrial space come off the market through-out the region. To put that number in perspective, itamounts to 3.7 percent of all space available beingfilled in just one quarter..

Chairman | CEORobert Page

[email protected]

PublisherRebeca Page

[email protected]

Managing EditorManny Cruz

[email protected]

Graphic DesignerChristopher Baker

[email protected]

Photography/IllustrationEric Peters

David Rottenberg

Contributing WritersCecilia BucknerAdriana Cara

Michael DenzingerCourtney DwyerMeagan GarlandColette MauzeralleKatelyn O’Riordan

Brad WeberDelle Willett

John Zygowicz

AdvertisingSALES & MARKETING DIRECTOR

Rebeca Page

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All real estate advertising in this newspaper is subject to the FairHousing Act which makes it illegal to advertise “any Prefernce lim-itation or discriminatin based on race, color, religion, sex, handicap,familial status, or national orgigin, or an intention, to make any pref-erence, limitation or discrimination. “Familial status includes childrenunder the age of 18 living wit hparents or legal custodians; preg-nant women and people securing custody of children under 18.This magazine will not knowingly accept any advertising for real es-tate which in in violation of this law. Our readers are hereby in-formed that all dwellings advertised in this magazine are availableon an equal opportunity basis. To complain of discrimination callHUD Toll-Free at 1-800-669-9777. Th Toll-free telephone number forthe hearing impaired is 1-800-927-9275.

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ON THE COVER:

Guardians of Balboa ParkBetty Peabody chairs the Friends of Balboa Park, one of the many organi-zations that are working to keep the park alive well into the next century.Since its inception, the Friends organization has invested and contributedmore than $4 million in private money to Balboa Park. See Page 10.

AUGUST 2015|Issue 8 |Volume 30

Our mission is to always provide quality journalism for our readers by being

fair, accurate and ethical and a credible resource for our advertisers.

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Babymoon in Borrego SpringsAttorney Cynthia Morgan-Reed was eight monthspregnant when her husband suggested they go on a“babymoon” to relax and disconnect from the worldfor awhile. “When I researched Borrego Spring’s LaCasa Del Zorro Resort and Spa, I knew it was the per-fect spot,” she said. Read her review.

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The Case of the Disappearing InkThe fabled history of disappearing ink has taken an in-triguing new turn in a South Park garage with fundsfrom the National Science Foundation. Engineer CarlYee (pictured) has received a $150,000 NSF Small Busi-ness Innovation Research grant to advance his PaperSaver self-erasing inkjet ink. Intended for documentswith short shelf lives, the ink gradually fades, leavingblank pages that can be reused for future printing jobs.

09

Men Who Make a DifferenceOur annual list of men who make a difference in theirprofessions and in the community. Pictured is Bob Ca-plan, president of the Seltzer Caplan McMahon Viteklaw firm, one of the honorees.

17

What Tenants Really Want in Their Of-fice SpaceA key part of Star Hughes-Gorup’s role as a commer-cial real estate broker who exclusively represents ten-ants and buyers — the true consumers of office space— is touring clients through different office spaces andhelping them determine which has the most potentialto be their firm’s new home should they move. Shegives us a list of 10 simple and effective ways landlordscan make their office spaces attractives.

15

A Civic San Diego selection committee is backing a proposalby Cisterra Development to build a 751,500-square-foot project atSeventh Avenue and Market Street in Downtown that would in-clude for-sale condominiums, rental apartments, retail stores anda 160-room Ritz Carlton hotel.

The selection committee also is promoting a Holland PartnerGroup proposal to build a 550,000-square-foot mixed-use devel-opment at Park Boulevard and Market Street that would contain341 apartments, office space and retail space.

The selection committee is requesting that the Civic San Diegoboard recommend that the City Council enter into exclusive ne-gotiations with the two developers on the projects.

The Cisterra project features 58 for-sale condos, 115 market-rateapartments, 32 affordable apartments, the Ritz Carlton hotel, 156,000square feet of office space, 238 public parking spaces and more than46,000 square feet of retail space, including a gourmet grocer.

Holland Partner Group’s plan includes 341 apartment, 51,700square feet of office space and 22,900 square feet of retail space.

“The selection committee reviewed and carefully evaluated someexciting proposals and are confident they have identified twohighly qualified teams that will deliver innovative place-makingprojects that provide great amenities and housing for downtownSan Diego,” said Civic San Diego president Reese A. Jarrett.“These developments reflect our mission to provide varied hous-ing options for our community with the addition of nearly 100 af-fordable homes, as well as important revenues earmarked for futuredevelopment of affordable housing.”

Other development proposals considered by the selection com-mittee for the Seventh Avenue and Market Street site includedDouglas Wilson Companies and The Robert Green Co. for thePark Boulevard and Market Street site.

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P U B L I S H E R ’S C O LU M N

Cisterra Seeks Approval For Large-Scale Residential, Retail and Hotel Project Downtown

SAN DIEGOSCENECisterra Development rendering of 7th & Market project.

SA N D I EG O S C E N E

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The U.S. Sand Sculpting Challengeand Dimensional Art Exposition, aLabor Day weekend tradition, is return-ing to San Diego and B Street PierDowntown Sept. 4-7.

This will be the fourth year one of theworld’s most important sand sculptingcompetitions will be held on this built-for-the-occasion beach, with over 300tons of sand dumped on the pier.

A big coup for the event this year isthat Team USA and the U.S. OlympicCommittee selected the event as one ofonly three stops on its “Road to Rio” tourin 2015 because of the size and qualityof the show and artists it brings to thechallenge. Another first for the challengeis the World Master Artists will themetheir sand sculptures around theOlympics and its history.

While it takes two full weeks fromstart-up to tear-down, the public has justfour days to see the sculptures. The ‘Roadto Rio’ interactivity takes place on Satur-

day and Sunday, Sept. 5 and 6. Virtual-reality technology will enable fans to ex-perience pole vaulting, beach volleyball,gymnastics and diving, and capture theirown personal Olympic moments.

The annual event makes a $2 millioneconomic impact on San Diego drawing250,000 to the waterfront Labor Dayweekend with 50,000 paid attendees.Several local children’s charities also ben-efit from the event including The SanDiego School of Creative and Perform-ing Arts, Young Audiences of SanDiego/Arts for Learning, It’s All Aboutthe Kids Foundation, The MaritimeMuseum’s Children’s Education Programand the San Diego City College Sports.

For tickets prices and discounts, eventtimes, bios on the Master Sculptures, andother information, logo onto www.us-sandsculpting.com.

San Diego Gets Extra Sandy For the U.S. Sand Sculpting Challenge


Sandman Blues sculpture from a previous year.

San Diego Startup TakesOn Google With SearchEngine

A San Diego-area startup is takingon Google and Bing with a new, pri-vacy-enhanced search engine callediZSearch.

The Carlsbad-based company de-scribes its product as “a general pur-pose search engine that finds andreturns relevant web sites, images,videos and real time results” but “doesnot retain or share any of your per-sonal information.”

The company’s servers begancrawling the web just four monthsago after closing a seed round offunding from the Tech Coast Angelsand other investors.

Kenneth A. Abeloe, a senior vicepresident with the company, said thenew search engine has so far indexedabout five percent of the content onGoogle, but has focused on the mostimportant content and ignored “lotsof uninteresting content out there.”He added that the index is growingdaily.

iZSearch said that in addition toenhancing privacy, its search algo-rithm protects intellectual property inthe sciences and provides independ-ent information “without the filterbubble or highly tailored results.”

In addition to the free search en-gine, the company also offers searchproducts for corporate customers in-volved in content discovery, dataanalysis, data mining and archiving.

— Times of San Diego

Hughes Marino, a San Diego-based company that represents ten-ants in leasing commercial space, announced it has joined 16 other firmsin forming the Exis Global tenant-representation network.

The new network will offer the member firms’ customers global sup-port through Exis-affiliated offices in North America, Europe, Asia,and Australia.

“By joining Exis as a member firm, Hughes Marino has significantlyexpanded our global reach,” said Jason Hughes, president and CEO.“Through our membership in Exis, we show our clients that we arethere for them, wherever their real estate needs take them.”

Exis Global’s operations will be based in San Diego. Shay Hughes,co-owner and COO of Hughes Marino, will take an active role in Exis’operations.

“We formed Exis, not to be the world’s largest tenant representationfirm, but to be the best,” she said. “We carefully vetted, and will continueto vet, each partner firm because we are more interested in having theright partners than having the most dots on a map.”

Hughes Marino said the decision to form Exis was driven by rapidconsolidation in the brokerage industry, which has resulted in fewerfirms limiting their services to tenant representation.

– Times of San Diego



Robert F. Kennedy Jr., president of Waterkeeper Al-liance, will give a keynote address at the San Diego Coast-keeper’s 18th annual Seaside Soiree on Oct. 28 at the BaliHai on Shelter Island, celebrating the organization’s 20thanniversary.

At the Seaside Soiree, Kennedy, along with supporters,board members and staff, will celebrate the importance ofSan Diego’s underwater treasures and healthy waterways.The event raises money to support the organization’s workon water quality and water supply issues in San DiegoCounty’s inland waters and along its coastline.

“San Diego Coastkeeper has grown into a movement ofpeople across the county who are passionate about pro-tecting our waters,” said Executive Director MeganBaehrens. “We have drastically improved the health ofSan Diego’s waters and protected the resources and activ-ities that define the San Diego County way of life. Let’scelebrate that.”

Coastkeeper became the 15th Waterkeeper organiza-tion in the country in 1995. Kennedy, who was present atthe organization’s launch, will revisit those early victoriesand look to the future of the locally based Waterkeepermodel. He is one of Time magazine’s “Heroes for thePlanet.

The Seaside Soiree will run from 6 to 9 p.m. Generaladmission is $100. Visit www.sdcoastkeeper.org.

Robert Kennedy Jr. to Give KeynoteTalk at San Diego Coastkeeper Seaside Soiree

Robert Kennedy Jr.

Hughes Marino Forms Global Tenant Representation Network


B U S I N E S S

T he fabled history of disappear-ing ink has taken an intriguingnew turn in a South Parkgarage with funds from the

National Science Foundation.Engineer Carl Yee has received a $150,000

NSF Small Business Innovation Researchgrant to advance his Paper Saver self-erasinginkjet ink. Intended for documents withshort shelf lives, the ink gradually fades,

leaving blank pages that can be reused forfuture printing jobs.Yee invented the ink in the garage of his

South Park home, which is now the head-quarters for his startup company, BluePlanet Ink. A Stanford University alumnuswho holds 14 patents, he got the idea in 2009when he was a stay-at-home dad.“I've always been interested in environ-

mental issues,” he recalled. “It occurred to

me that the amount of paper printed everyday is incredible, so wouldn't it be great ifwe could remove the ink and reuse thepaper?”Yee began by rebooting skills he had pre-

viously used to design cars and medical de-vices. “Your first thought is always, ‘If it’s agreat idea, then somebody’s already done it.’So I did an Internet search and a patentsearch, and I didn’t find anything like this.

The Case of theDisappearing Ink

Engineer Carl Yee invents a novel way to save paper

Engineer Carl Yee in his garage, home of Blue Planet Ink.

By Kate Callan


B U S I N E S S

“Then I thought, ‘I don’t know anythingabout printers or ink, but I know a lot aboutproblem-solving, so I should give this ashot.’”Yee's first stop was the North Park Public

Library, where he used the San Diego Cir-cuit Consortium interlibrary loan programto obtain advanced chemistry textbooksfrom the UC San Diego Library. “It’s a fan-tastic resource,” he said. “The books guidedme in experimenting with different ink for-mulas using safe agents, because consumerswho are concerned about the planet won’twant dangerous chemicals in their ink.”By 2012, Yee had launched his company

and approached the NSF for funds to helphim figure out how to prevent corrosionfrom damaging printer heads. After theagency turned him down, he found a way toclear up the problem. Last year, he reappliedfor NSF funding to refine his technologyfurther, and the second time was the charm.“When I went back to them, it showed a

level of commitment,” he said. “They toldme, ‘You certainly are tenacious.’”NSF officials also were impressed that Yee

had acquired an encyclopedic knowledge ofprinting processes and paper use. “This proj-ect wouldn't have been possible 15 yearsago,” he said. “Newer feed mechanisms aremuch improved, so there are fewer paperjams.”

Citing data from the U.S. Census and theoffice supplies industry, Yee mapped out aburgeoning need for direct reuse of printerpaper. “Last year, we used 14,000 sheets ofpaper for every office worker in America and2,600 sheets for every American, includingbabies,” he said.

“Business Week predicted 30 years agothat we would have paperless offices,” Yeeadded. “When email and the Internet firstbecame popular, we expected paper con-sumption to go down. It went up instead,because there is more information to beprinted. But 90 percent of all the documentswe print are only needed temporarily, and21 percent are discarded the same day theyare produced.”The inventor also has become an ink his-

torian. “I've tried to educate myself about allthings disappearing ink,” he said. “Over theyears, it has been used for espionage and forcrime. But that was done with pens. I’m thefirst one to make it work with a printer.”Yee is now focused on perfecting his tech-

nology. For field tests, he uses printers withtwo ink tanks, filling one tank with regularblack ink and the other with his dark blueindigo ink to compare the performance ofboth. So far, Blue Planet Ink is fading com-pletely after two weeks, leaving pristinepages ready for reuse.Yee is eager to apply for a Phase 2 grant,

and he is encouraged by the NSF’s enthusi-asm for his invention. “They really want tohelp you commercialize your product,” hesaid. “This ink would benefit society by pre-serving the environment, and that would bea good return on investment for publicfunding.”

The ink on the page on the left that CarlYee is holding is gradually disappearing.The page on the right is the original.

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C OV E R STO RY

Betty Peabody has been involved in Balboa Park since 1969.On the last day of 1999, a group of volunteers called The

Millennium Society threw a fundraising gala for BalboaPark. All of the society’s charter members attended, pay-ing $199.99 a ticket.

Moving into the new century, The Millennium Societyrebranded itself as the Friends of Balboa Park, dedicated toBalboa Park as a whole, initiating park-wide projects thattranscend individual institutions, and addressing human-scale needs, with the vision of keeping the park alive andwell into the next century.

Leading the charge is Betty Peabody, who has been in-volved in Balboa Park since 1969 when she heard and re-sponded to a radio spot: “Docents wanted to teach sexeducation at the Museum of Man, no experience neces-sary.”

Over the years her volunteerism expanded exponentiallyto encompass the entire park and includes chairing theboard of the House of Hospitality, The Millennium Soci-ety, and Friends of Balboa Park, and membership on theboards of the Museum of Man and the Central BalboaPark Association.

From a core group of six, the circle of Friends has grownto over 500 supporters, and their accomplishments num-ber in the hundreds, some being a one-time effort, othersongoing year after year.

Currently there are 20 members on the Friends’ board,30 members on the advisory council, and 25 on the by-laws committee.

Since its inception, Friends of Balboa Park has investedand contributed over four million dollars in private moneyto Balboa Park.

“Our greatest successes are not always the most con-spicuous: quietly identifying and meeting a need, seam-lessly integrating a new feature into an historic setting, andpartnering with other organizations and public agenciesto raise the park’s profile and give its interests a voice in

GUARDIANSO F T H E P A R K

‘Friends’ and other groups work to keep Balboa Park alive and well into the next century

� �

BY DELLE WILLETT

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C OV E R STO RY

city government,” said Peabody, afounder of Friends.

The Friend’s core programs in-clude preservation and enhance-ment of parkland, structure andinfrastructure, visitor safety and se-curity, park access and understand-ing, and preservation of the park’slegacy.

Peabody has her favorite proj-ects. “Whatever we are doing atthe time is my favorite. Just know-ing what we are doing is the bestfor the future of the park,” she said.

However she did pick a few toillustrate current successes:

A true labor of love and exam-ple of the private/public partner-ship that Friends has with the City

of San Diego are the five information kiosks conveniently placedaround the park. The kiosks provide the visitor with maps and in-formation about the park’s many attractions and institutions andtheir offerings. They also have ATM machines.

This project was seven years in the making at a cost of $500,000. During the centennial year, the Adopt-a-Plot Program invites

individuals, families, organizations and businesses to adopt a gardenor landscape area within Balboa Park. This program is so success-ful they are hoping to continue it beyond the centennial year.

San Diego’s first Arbor Day celebration was on March 17,1904. Kate Sessions helped to organize that first planting, a com-munity event attended by 350 school children who came to whatwas then called “City Park” to plant 60 pine and cypress trees.

The Friends brought back the tradition, and recently celebratedits 8th Arbor Day at the War Memorial Building when 11 Amer-ican Tulip trees were planted with volunteer help from local areastudents.

“Going into the centennial we asked ourselves, ‘How can we be

sure the park is going to be here 100 years from now and into thenext centennial?’—and the answer is water. And that’s why wechose water as our 2015 project,” said Peabody.

The Friend’s Water-Wise program was designed to optimizewater use in the parkland by 2020, to make the park more envi-ronmentally sustainable while keeping it healthy and fit for appro-priate human enjoyment.

An example is the Zoro Garden Water Reclamation project cur-rently under construction, where water from the roof of the Casa deBalboa (rain, dew and HVAC condensation) will be captured,stored and used to irrigate the adjacent Zoro Garden and canyon.

Friends is also tackling the park’s water infrastructure, financinga documentation of the park’s underground water pipes which werelaid in the early 1900s with little or obsolete documentation.

Over the last 2.5 years Dr. Matt Rahn, an environmental scien-tist and professor at San Diego State University, and his studentshave been mapping the water pipes and valves that deliver waterinto the park.

GPS is allowing Rahn and his students to develop an app thatwill help city workers locate weak points in the park’s water pipesas well as enabling them to stand anywhere in the park at a brokenwater main, look at a map of Google Earth in real time and say,“This is where the closest three valves are to isolate that piece ofpipe.” Once a break is isolated, the city won’t have to turn off waterto the entire park, shutting it down. Using this technique, there’s a90% labor-saving in those areas.

To date, 11 water sources (all drinkable) have been identified,

Dr. Matt Rahn, an environ-mental scientist and professorat San Diego State University,and his students have beenmapping the water pipes andvalves that deliver water intothe park.

A reclamation project under construction will provide rain waterfor the Zoro Garden.


COVER S TORY

supplying water to buildings, gardens, land-scapes and fountains. Students are locatingthe pipes and trying to determine the size,the age, the manufacturer, and the materialsthe pipes are made of.

The survey will take another one to twoyears to complete; it is critical for trou-bleshooting leaks and digging for any rea-son.

Every year in October, since 2000, Friends

of Balboa Park — an apolitical organization— holds a luncheon to honor long-timepark volunteers, many of whom have workedquietly behind the scenes for years. All of thepark’s organizations support and value thisevent, which typically draws over 300 par-ticipants to witness the giving of awards: five“Inspiration” awards and one “Millennium”award.

Peabody, who has worked seven days aweek for the park for more than 45 years,said, “A very generous benefactor has givenone million dollars to Friends of Balboa Parkas a lead gift for an endowment fund. In ad-dition, in this centennial year we’ve beenchallenged to raise $500,000 more whichwill be matched dollar for dollar by year’send. Thus our endowment will be doubled.This will allow us to give more support tothe ever-challenging needs of Balboa Park,from water infrastructure to the gardens toeducating school children for the future.”

Learn more about Friends of Balboa Parkby visiting their website: http://friendsofbal-boapark.org.

Delle Willett is a freelance writer

with 30 years’ experience in

marketing and public relations.

She can’t leave home without

her: Nikon camera, running

shoes, sunglasses, ChapStick,

Tums, and cell phone.

During the centennial year, the Adopt-a-Plot Program invites individuals, families, organi-zations and businesses to adopt a garden or landscape area within the park.

The five information kiosks placed aroundthe park are the result of a partnershipFriends has with the city. The kiosks providethe visitor with maps and informationabout the park’s many attractions andhave ATM machines.

Balboa Park Support Groups:

Some groups that support Balboa Park as a whole,and organizations within the park include:

• The Committee of 100 Founded in 1967 to pre-serve Balboa Park’s Spanish Colonial Revival archi-tecture from the 1915–1916 Panama-CaliforniaExposition, its mission has expanded to include thearchitecture, gardens, and public spaces of both the1915–1916 and 1935–1936 California Pacific Inter-national Exposition. Since 1967 all four remaining“temporary” 1915 buildings have been recon-structed in permanent materials and not a singlebuilding has been lost.

• The Balboa Park Trust is a family of nearly 40 en-dowment funds managed by The San Diego Foun-dation and a dedicated committee of volunteers.Since 1985, the Trust has supported the enrichmentand enhancement of the park and its cultural andrecreational programs. Grants have totaled morethan $1.7 million for a wide variety of preservation,beautification and maintenance enhancements.

• The Balboa Park Conservancy promotes BalboaPark through its programs, Balboa Park VisitorsCenter and Balboa Park Marketing. The Conser-vancy is also responsible for the National HistoricLandmark House of Hospitality building, the BalboaPark Visitors Center, a police storefront, offices ofcultural and educational organizations, and ThePrado restaurant, all in the House of Hospitality.


C O M M E R C I A L R E A L E STAT E

The commercial real estate market in SanDiego County continued its strong recov-ery in Q2 2015. Coming on the heels of aflat first quarter, this past second quartersaw another 1,245,000 square feet of of-fice, lab and industrial space come off themarket throughout the region. To put that number in perspective, itamounts to 3.7 percent of all space avail-able being filled in just one quarter. If ab-sorption were to continue at this same rate,14.5 percent of all available commercialspace would come off the market injust one year.Robust job growth is driving thedecline in office and lab spaceavailability, and continued corpo-rate health has pushed availablesublease space down. Nearly aquarter of the space absorbed in

Q2 was sublease space, with 300,000square feet coming off the market, makingsublease availability the lowest we haveseen in years. Industrial space is filling upas well, with supply shortages seen in mar-kets including Miramar, Kearny Mesa and

Poway. Businesses seeking to expand

their facilities are makingbets on long-term leases

to accommodate 2016and 2017 growth

expectations. Weexpect this

strong de-m a n d

t o

continue throughout the year, and into2016.The hot market for biotech IPOs andabundant private funding has driven un-precedented growth in the biotech sector.In UTC, buildings formerly occupied byoffice tenants are being converted into lifescience facilities, and three speculativebiotech buildings have broken ground,which will provide 300,000 square feet ofadditional space. Companies like Illumina and Lilly arebreaking ground on new facilities, as thereare no existing buildings in UTC to sup-port their growth. Lab space in TorreyPines is also starting to fill up, and we canexpect there to be a general shortage of wetlab space by 2017 if the sector continues togrow at the current pace.Class A office space in UTC, Del Mar

Market ReportSan Diego office market surges as tenants gobble up space

By David Marino

Heights and Downtown continues to see a decline in availability,particularly in large blocks over 20,000 square feet.Tenants looking for office subleases in Mission Valley, Kearny Mesaand Downtown are going to find their value options limited, whilethere are still choices to be had in the other major office submar-kets. New development is on the horizon in Downtown, includingManchester Financial’s Pacific Gateway project and Cisterra’s 7thand Market site, which combined will add roughly 1.3 millionsquare feet of top-notch office space to the area.With the broad economic recovery in full swing, it was only a mat-ter of time until landlords started winning, and we are definitely ina landlord’s market. There is tremendous optimism in the com-mercial real estate sector, as this San Diego regional recovery isbeing mirrored throughout Southern California. Unfortunately, thebyproducts of this are rising rents, decreasing concessions, and thevirtual elimination of free rent.In the next two years, there will not be nearly enough new con-struction to offset the decline of available space, so tenants aregoing to have fewer choices, and may have to compete for space.Tenants will need to move through their site selection processquickly and efficiently if they want to control their options and getthe best outcome from their negotiations.

David Marino is executive vice president of

Hughes Marino, a San Diego commercial real

estate company specializing in San Diego ten-

ant representation and building purchases.


COMMERC IAL REAL E S TATE

Rendering of Manchester Financial’s Pacific Gateway project.

Businesses seeking to expand their facilities are making bets on long-term leases to accommodate 2016 and 2017 growth expectations.

A Mission Valley office building.



Visitors to the exhibit

I love office space. I love how a space can be transformed froma cold shell to a company’s hub and place to innovate. A key partof my role as a commercial real estate broker who exclusively rep-resents tenants and buyers — the true consumers of office space— is touring our clients through different office spaces and help-ing them determine which has the most potential to be theirfirm’s new home should they move.

Spending time with our clients as they evaluate the pros andcons of various alternatives has given me insight into what makestenants fall in love with a particular space, but also what makesthem rule others out.

Below are 10 simple and effective ways landlords can maketheir office spaces as attractive — and leasable — as possible.

1. Build for your desired tenant.Who is your audience? Are you hoping to attract the next big

tech company or a traditional law firm? Build your space withyour dream end user in mind. If you are aiming for those creative

start-ups with enormous potential for growth, then focus on aterrific, modern kitchen and open workspace along the windowline with plenty of room for benching systems. If you are hopingto attract law firms, financial institutions, and other professionalservices firms, build large offices along the window line and amore traditional layout. It is important to stick to your desiredaudience though, as you can’t appeal to everyone. Build-outs thatare a middle ground between the “progressive” and “traditional”layouts generally turn away both types of users.

2. Utilize glass — either full glass walls or sidelites.Glass walls — or at a minimum glass sidelites — is a look that

appeals to nearly all types of tenants. And, if an individual usingthe office wants extra privacy, it is easy to frost the glass with awindow film. Avoid herculite doors though. They’re not worththe cost, and very few tenants insist on them when they realizehow expensive they are. An easy substitution is a metal or woodframed storefront door with a glass cutout.

Calling All Landlords What tenants really want in their office space By Star Hughes-Gorup

Build your space with your dream end user in mind.

Private offices enclosed in glass in Hughes Marino’s OrangeCounty office.



3. Add luxury vinyl tile in the reception area.It is not that expensive to cover a few hundred square feet of

your space with luxury vinyl tile (LVT) but to tenants it makes aworld of a difference. The reception area is generally the primespot for it, as it’s what makes a first impression to a prospectivetenant’s clients, team members, and visitors. Go for a neutralwood tone that will appeal to just about all companies. Avoidtrendy colors, such as gray-washed or blue-washed LVT wood, asthose are more likely to clash with a company’s desired look thana natural wood tone.

4. Stick to blues, grays, and whites for your paint col-ors.

The overwhelming majority of prospective tenants are notgoing to want bright green, orange, and yellow office walls. Eventhough bold colors may catch some eyes and can create a fun, en-ergetic feel, neutral colors, particularly in the cool color scheme,will appeal to many more prospective tenants. That’s becausethese colors are versatile and will compliment just about everycompany’s branding/marketing colors. Do make sure that theblues and grays you use are very light — just a few shades darkerthan white — as you don’t want to unnecessarily (and uninten-tionally) darken the suite.

5. Utilize double doors, regardless of where the spaceis located.

Whether your space is directly off the elevator or down thehallway a bit, double doors make any space feel grander. Tenantsabsolutely love them, and they hold great long-term value as ten-ants cycle through the space over the long haul.

6. Don’t overdo the built-ins.Built-ins are very costly and become even more so when ten-

ants need to remove them to make room for their furniture. Thereare better places to spend your money than on shelving that mayneed to be removed, especially when many companies prefer theirbuilt-ins to match their furniture, or require special sizing for fil-ing purposes.

7. Upgrade the kitchen.The kitchen is an area that is often overlooked by landlords,

but it is one of the focal points that tenants love in a space. An up-graded kitchen might not be a “must-have” on every tenant’scheck-list, but it certainly will differentiate the space from othersif the tenant is looking at multiple buildings. For many, thekitchen is a place of bonding and team building, so it is impor-tant not to discredit it.

A nice way to upgrade a kitchen is to add solid surface coun-tertops, especially when paired with stainless steel appliances. Ifyou use a solid surface counter top, make sure it is neutral (i.e.gray, white, or black granite). If you opt for laminate, definitelychoose white so that does not become dated immediately. Tryadding a simple backsplash too. Backsplashes are a high-end fin-ish that can be very affordable from the landlord’s perspective –consider basic subway tile for a classic, refreshed look.

8. Provide a welcome cart for prospective tenants.A welcome cart with floor plans and water bottles will go a

long way in making guests feel at home in a prospective space.To go a step further, try furnishing the space, as it helps tenantsto visualize its true size and maximum potential. Many furniturevendors will rent or loan you office furniture in order to get theirname out with tenants too.

9. Don’t forget the bathrooms.Most tenants check the bathrooms in every building they tour.

If your bathroom is dated, dirty, or dim, it isn’t going to win youthe tenant’s favor.

10. Be open to change.Expecting a tenant to move right in without requesting any

changes is unrealistic. If you can help them get 90% of the waythere, then you are doing something right..

Star Hughes-Gorup is a director at Hughes Marino, an

award-winning California commercial real estate firm

with offices in San Diego, Orange County, Los Ange-

les, San Francisco and Silicon Valley.

Our gourmet kitchen is a favorite gathering spot for Hughes Marinoteam members.

Marble-lined bathrooms with polished chrome fixtures.


MEN WHO MAKE A D I F FERENCE

BOB CAPLANThrough his work as a community volunteer and leader of one of San Diego’s leading lawfirms, Bob Caplan is one of the men who make a difference. He is on the board of the SanDiego Symphony Foundation, which administers the symphony’s endowment funds. Hehas also done pro bono work for the organization, including helping to acquire the Sym-phony Hall location and then re-conveying the property back to the symphony in 2010.Caplan has been a long-time supporter of the LaJolla Playhouse as a member of its boardof directors. His law firm, Seltzer Caplan, traces its roots back 66 years in San Diego. Thefirm provides pro boo legal services to the Plaza de Panama Balboa Park. Caplan has beenpresident of Seltzer Caplan for 15 years. In his 55 years of practice, he has built an exten-sive real estate practice and has been involved in many of the region’s most important realestate endeavors.

VIPUL DAYALVipul Dayal is the executive director of Charity of Hope as well as the North County di-rector for the Asian American Cultural Society of San Diego. The organization provideseducational programs in San Diego County for persons, particularly children, related to cul-tures, languages and music of India and other countries in Asia. Charity of Hope is a mul-tipurpose organization that provides financial aid and supplies to other nonprofits in need.Charity of Hope’s mission is to collect, send, and distribute financial aid as well as food sup-plies, new and old clothes, books, medicines, medical equipoment and overall assist thepoor, ill, destitute and economically deprived. Charity of Hope has raised funds for its EyeCamp program to cover operations, medication, glasses and other eye care throughout thepoorest areas of India. Dayal is a graduate of the University of North Texas with a degreein biology.

RON MORABITOA native New Yorker, Ron Morabito discovered his passion for business at a young age. Hebecame a stockbroker at age 19, after achieving his goal of passing the Series 7 exam. Afterworking as a stockbroker for three years, he decided to go into business for himself by es-tablishing a signage and printing company on Long Island. Morabito bult a very success-ful business and after eight years, he sold the company and moved to San Diego. In 2007,he opened V Group, which provides signage, trade show displays, printing and promo-tional products. Morabito has been named one of San Diego’s 40 Under 40 Award hon-orees by SD METRO Magazine, a Young Executive by San Diego’s Young ProfessioinalsCommittee and V Group has been honored with an Excellence in Customer Service Awardby the San Diego Smalll Business Coalition. V Group’s clients include Donovan’s Steak &Chop House, Barona Resort & Casino, MTS, NCAA, the Padres, SDSU, USD and theMarriott. V Group has also just expanded into the Los Angeles market.

MEN WHO MAKE A DIFFERENCE I N TRODUC ING MEN WHO MAKE A D I F FERENCE 2015


MEN WHO MAKE A D I F FERENCE

ROBERT FERDOWSMAKAN

Founder of Torrey Hills Oral &Maxillofacial Surgery

GREGORY MCKEE

Chief Executive Officer of CONNECT

HONORABLETHOMAS NUGENT

Mediator, former San DiegoSuperior Court Judge

PETER M. SHAPIRO

President of the San DiegoRiver Valley Conservancy

GABRIEL BRISTOL

CEO and President ofIntelicare Direct

KURT METZGER

Owner and Executive Chef of Kitchen 4140

ANDREW E NELSON

CEO and President of Willis Allen Real Estate

MATTHEW WEIL

Managing Director, Patricia & ChristopherWeil Family Foundation

THOMAS HERRERA-MISHLER

Executive Director and CEO,Balboa Park Conservancy

TED OWEN

President and CEO, Carlsbad Chamber

of Commerce

MOISES BARON

CEO of San Diego Center for Children

KORBAN KONRADY

Founder of BARR Corporate Health

JOHN HEISNER

Founding Partner, Heisner Alvarez

DR. TOM ICHIM

Co-Founder, Regen BioPhama Inc.

SAMUEL C. WAGNER

President and CEO,Batu Biologics

HERB JOHNSON

President/CEO, SanDiego Rescue Mission


WATER R IGHTS

The San Diego County Water Au-thority won $190 million in courtlast month from the MetropolitanWater District of Southern Cali-

fornia — but it also won potentially evenmore valuable water rights.

For years, we’ve been watching the legalbattle between the two water agencies be-cause Metropolitan delivers 75 percent ormore of the county’s water and San Diegois accusing it of price gouging.

A judge agreed that Metropolitan hasbeen charging too much to deliver somewater to San Diego from the ColoradoRiver. The judge said Metropolitan owesSan Diego $188 million, plus interest.

But San Diego had another significantwin that could be just as important: Thejudge said the County Water Authority isentitled to a greater share of Metropolitan’swater supply. If the drought continues, thatmay come in handy.

Metropolitan supplies water to 26 agen-

cies, including the County Water Author-ity here. Those agencies, in turn, providewater to 19 million Southern Californians.

If the drought continues, the agenciescould begin fighting over dwindling sup-plies of water.

Because of last month’s ruling, SanDiego water officials say they are now in abetter position to protect the county’swater supply in the future.

San Diego currently has rights to about18 percent of Metropolitan’s water.

The County Water Authority may nowbe entitled to just over 23 percent of Met-ropolitan’s water, according to calculationsthe County Water Authority presentedduring the trial. Metropolitan said it hadnot done a similar calculation because itplans to appeal the ruling.

That change may not seem like a lot —5 percentage points more — but it couldbe important if water supplies continue toshrink.

According to the Water Authority, basedon 2014 water sales, San Diego would haverights to about 90,000 more acre feet ofMetropolitan water. The Water Author-ity’s entire supply in 2014 was 670,000 acrefeet — so 90,000 acre feet is huge. (An acrefoot, the big unit that water officials use, isabout 325,000 gallons of water.)

For context: 90,000 acre feet is morewater than the Water Authority will geteach year from the new desalination plant— a plant that cost $1 billion to build.

“It’s a very, very, very valuable water rightand the court heartily concurred,” saidDennis Cushman, assistant general man-ager for the County Water Authority.

It’s unclear how these rights, known as“preferential rights,” can and will be used.San Diego’s fight over these rights goesback decades.

Metropolitan says the rights have neverbeen used as the basis for making cuts andthat there are more equitable ways to divvy

WATER FIGHTSAN DIEGO WON MORE THAN MONEY IN RULING AGAINST RIVAL WATER AGENCY

By Ry Rivard | Voice of San Diego


WATER R IGHTS

up water during a drought.“We’ve been through three pretty dra-

matic droughts and we’ve yet to enact pref-erential rights,” said Metropolitanspokesman Bob Muir. “We’re hoping todeal with it by equitably dealing the pain,so to speak.”

The rights, for instance, do not corre-spond to need. A local water agency thathas more people relying on water may haveless rights to Metropolitan water, eventhough that agency may need the watermore.

San Diego, for its part, has complainedabout preferential rights in the past —when it had fewer of them. San Diego of-ficials argue Metropolitan used thoserights as a factor in making cuts during theearly1990s drought.

So how did San Diego win? Wateragencies accumulate these rights based onthe amount of money they put into Met-ropolitan over the years for constructioncosts and operating expenses. But there isone expense that did not help them accu-mulate more rights: the amount of moneythey spent directly on buying water.

Does that sound weird — why shouldevery other cost but the cost of watercount? As San Francisco Superior CourtJudge Curtis Karnow said, it was unex-plained. But the quirk has traditionallybenefited Los Angeles, which ponied upmoney to create Metropolitan back in thelate-1920s. Historically, the city has boughtmost of its water from the Eastern Sierrasnot Metropolitan but it maintained thelargest share of rights to Metropolitanwater because it was an early investor inMetropolitan’s delivery system.

San Diego, by contrast, was not an orig-inal investor in Metropolitan, even thoughthey have bought more water from Metro-politan than any other agency over theyears.

In 2014, for instance, San Diego was thebiggest single buyer of Metropolitan water,even though Los Angeles has the greatestrights to buy Metropolitan’s water.

Judge Karnow ‘s ruling upended the wayMetropolitan had been calculating part ofSan Diego’s right. San Diego gets a lot ofwater from the Colorado River throughMetropolitan. Some of that water, Metro-

politan has rights to; some of that water,San Diego has rights to. But San Diegonever built its own set of pipes to get Col-orado River water into the county, so SanDiego has been paying Metropolitan forColorado River water San Diego owns.

Metropolitan contended that San Diegowas paying for the purchase of that water,therefore the payments should not helpSan Diego accumulate new rights. SanDiego argued it was paying for the deliveryof its own water — an expense that wouldhelp San Diego accumulate water rights.The judge agreed with San Diego.

Metropolitan will appeal the ruling. Thatmeans more years of battling and uncer-tainty. The case has already cost both agen-cies a combined $33 million.

For now, according to the County WaterAuthority, San Diego will be entitled to agreater share of Metropolitan’s water thanLos Angeles. That means, when pushcomes to shove, San Diego could be enti-tled to more water than Los Angeles dur-ing a drought.

Headquarters of the Metropolitan Water District in Los Angeles. San Diego County Water Authority headquarters.


TRAVEL

Babymoon inBorrego Springs

Being eight months pregnant and anticipating the upcomingbirth of our first child, my mind was understandably on all thingsbaby. However, I was surprised when my husband came to me andsuggested we go on a “babymoon.”

I didn’t even know he knew what that was! We both agreed itwas a good idea, but weren’t sure where to go. I couldn’t fly anymore,neither of us wanted to drive for extended hours, and we wantedsomething easy and affordable. We also wanted to simply discon-nect from the world and relax without the constant pull of oursmartphones.

I had heard of Borrego Springs, but had never been there. WhenI researched the peaceful desert community’s La Casa Del ZorroResort and Spa, I knew it was the perfect spot: remote enough tooffer unique opportunities and not feel like a San Diego stayca-tion, but still close enough to get to easily.

I was intrigued by La Casa Del Zorro because of its old worldcharm and interesting history. It was originally founded in the1930s out of necessity: folks were traveling through the desert andhad no place to stay. But in its heyday, 1960-2007, it was purchased

by the Copley family, former owners of the San Diego Union-Tri-bune. They modernized and made it a destination resort with all ofthe bells and whistles. And bells and whistles abound, as we soonrealized that everything we needed could be had at the resort andwe didn’t need to step off the property to have a wonderful, relax-ing experience.

Our room was very comfortable and completely updated withall modern amenities, which included a flat-screen satellite televi-sion to my husband’s delight. The rooms are spacious and invitingwith balconies or patios. Our suite had a huge sparkling bathroom,cozy seating area, and, best of all, a fireplace. The staff will come andlight the fire for you nightly, which lends a charming warmth to theroom. The property has 48 rooms and 19 casitas. The rooms areclustered around small pools, which lend an intimate feel – almostlike having a pool all to yourself. If you really want your own, rentone of the casitas, which range from one to four bedrooms and areperfect for families or groups. They each come with their own pooland amenities like kitchenettes and dining rooms.

Right after checking in, I was off to the onsite Spa at La Casa del

By Cynthia Morgan-Reed


TRAVEL

Zorro. I was in need of a massage to put mein “vacation mode” while shedding thestresses of work.

While not a spa snob by any means, Ihave participated in my share of spa experi-ences and I was curious how good this onewould be. After all, resort or no resort, wewere in the middle of a desert. But I had lit-tle to worry about. My massage therapistknew her stuff and gave an excellent preg-nancy massage. The table was heated, thesheets were soft, and my therapist made sureI was comfortable and enjoying the experi-ence throughout.

While the spa does “boast” the only ele-vator in Borrego Springs, it was a little oddto check in on one level and take an outsideelevator to my therapy room. Luckily, mytherapist led the way, and her cheery dispo-sition made me forget about the gloomy,cold elevator. My husband, who judges howgood a massage is on whether he can fallasleep or not, thoroughly enjoyed his mas-sage (nap) as well.

While the property has numerous ameni-ties ranging from a yoga studio to anOlympic-size pool, rock climbing wall, andnature paths to keep one busy; my husbandand I loved playing chess on their oversizedoutdoor chess board. We played for hours,having fun and getting a bit of a workoutlugging the large pieces around the board. Imay or may not have had more of a workoutremoving my husband’s pieces as I sailed tochess domination (not!).

Another true highlight for us was thefood. The Butterfield Room serves delicious,traditional food with a modern flair. It is aperfect place to have a romantic dinner withits crackling fireplace casting shadows onthe adobe walls and beautiful wood beams.

The spinach lasagna with béchamel creamsauce was one of our favorites. They also hada solid and large selection of wines by theglass with a wait staff able to offer great rec-ommendations on pairings. The ButterfieldRoom is open seasonally from October toMay, and the Fox Den Cantina offers year-round poolside dining and a great bar. Dur-ing the summer, they even feature live musicon Friday and Saturday nights.

We thought our desert visit would alsoprovide a great opportunity to see stars wecouldn’t normally see in San Diego due tosky glow, which is caused by the reflection ofcity lights. Since I was pregnant, we wantedto make sure that I would be comfortable ifwe booked a stargazing experience. Whenwe called to schedule a Stargazing Tourwith Borrego Night Sky Tours, ProprietorDennis Mammana was friendly and ac-commodating. He agreed his normal routeover bumpy terrain might be a problem sohe agreed to find us “smoother” terrain totraverse. Unfortunately, due to a forecast ofovercast skies, Mammana called that after-noon and recommended we not do the tour.We appreciated him wanting to ensure wehad a good experience and agreed. This issomething we will absolutely do on our nexttrip, assuming the weather cooperates.

We enjoy golfing, so we decided to see ifwe could check out the neighboring RamsHill Golf Club. Since it would have beenhard for me to swing a full game, we optedfor a tour instead. Michael Setchell, theclub’s concierge and activities director, per-sonally gave us a tour. The new, Tom Fazio-designed course is set up higher thanBorrego Springs and offers breathtakingviews of the surrounding mountains.

With bentgrass greens and Rye with

Bermuda base grass on the fairways, theclub takes its golf seriously. In addition,many of the holes, surprisingly, have beauti-ful water features. Hole 11 has a flowingwhite water “river” running alongside it,while Hole 18 ends on a lake. Since we arein a desert, in a state with a drought, I hadto ask about the water usage. Michael as-sured me that although they do not use re-cycled water, they have aquifers on theproperty that adequately serve their waterneeds. In addition, the club is looking intoinstalling solar panels and usually closes thegolf course down in the summer months toconserve water and wear and tear on thecourse.

The Rams Hill Clubhouse has a spaciousand beautiful dining room with cathedralceilings and floor-to-ceiling windows thatdraw in the beauty of the mountains andcourse. When we were there, landscaperswere installing numerous outdoor fire pitssurrounded by half a dozen chairs overlook-ing the golf course. It looked like it wouldbe a perfect place to sip wine and stay warmon a cool desert night. We look forward toreturning and playing this beautiful courseand trying out their dining.

While our visit was short, La Casa DelZorro and Rams Hill lived up to and ex-ceeded our expectations for a weekend get-away. We left feeling relaxed and ready forour next adventure: baby.

Cynthia Morgan-Reed deliv-

ered a baby girl, Stella Eliza-

beth, on Feb. 6, 2015. Reed is

principal of the San Diego law

firm Morgan-Reed Law.

Fireplace in a guest room. An inviting resort swimming pool.

SAND I EG OME TRO . COM | M AY 2 0 1 5 | 3 0 T H A N N I V E R S A R Y 1 9 8 5 - 2 0 1 524

Presort StandardU.S. POSTAGE

PAIDPERMIT NO. 2325

SAN DIEGO, CA

100% Prime

NEW LOCATION: 1250 Prospect Street

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