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Real Estate Bisnow
The largest commercial real estate publication in the United States.
January 18, 2012 
Law Requires
Hospital Construction

Kaiser Permanente VP Hollis Harris handles its northern California projects—about 2,000 of them, from new hospitals to roof replacements. (Hopefully those don't cost the same amount.) But this morning she was at the City Club as a panelist on Bisnow’s San Francisco Healthcare Summit.
Hollis tells us major projects for KP in Norcal include three hospitals under construction in Oakland (above), San Leandro, and Redwood City. The exterior skin is just going up on the 600k SF Oakland hospital, and interior construction is being done at the same time. (Wasn't that the plot of Hollow Man?) The 430k SF San Leandro hospital is at about the same point, and in Redwood City, they’re erecting steel. The 280k SF facility is slated to top out next month. They’re all the result of SB 1953, which requires hospitals of a certain age and condition either to be replaced or retrofitted. Hollis worked as an architect for several small firms before coming to work for Kaiser. For fun, she enjoys weekend road trips to California destinations like Amador County or Carmel.

Normally (and usually to our own detriment) we let the pundits do the predicting, but we predict CBRE’s Mike Smith’s golf clubs will become a bit dusty in the foreseeable future. He’s just been named president of the real estate services giant’s Western Division, taking over from newly promoted COO of the Americas Steve Swerdlow. Before this, Mike led CBRE’s San Francisco Bay Area operations and he continues in that position. In his expanded role, he’s responsible for all business lines, including facilities management, project management, asset services, valuation, debt and equity finance, consulting, and of course the biggest business line—brokerage—and P&L in more than 46 offices from Denver West to Hawaii.
Besides tech, the Bay Area’s hot sectors right now include healthcare, and Mike’s seeing a fair amount of government work as well. As CBRE's Bay Area market leader, his plans here are to keep growing the existing service lines. When he took over in 2002, “we were primarily a brokerage and property management company.” CBRE enhanced those disciplines with the Insignia acquisition in ’03. With the acquisition of Trammell Crow in ’07, the company was able to offer a complete line of services.
Watch out behind you! Under Mike’s leadership, CBRE has grown into the Bay Area’s top commercial RE service firm—two to three times bigger than its nearest competitor from an overall revenue standpoint. The California native (born and raised in Coronado) started out in property management with The Koll Co in 1980. He worked for CBRE from ’82 to ’90, then spent 19 years as an industrial broker with San Diego’s John Burnham & Co (now part of Cushman & Wakefield) before returning to CBRE in the Bay Area in 1999 to work in management. In his free time, Mike loves to ski with his kids and is also an avid golfer, though “with the new job, I don’t think there’s going to be much golf.”

If you’re visiting AEGIS Realty Partners’ office in Oakland and happen to notice a different name on the door, don't turn back—the tenant rep firm’s been rechristened as Cresa East Bay. Recently we chatted with managing principal Matt Elmquist (left), who leads the new office along with managing principal Scott Stone. Matt tells us they decided to merge AEGIS with Cresa because it’s the largest pure tenant rep firm in the country. “They have a horizontal and vertical reach that we didn’t have as a boutique firm.” When he and Scott started to look at the organization and the people, Matt says the acquisition became even more attractive. Rounding out the new office are VP Stephen Carlson, advisor Frank Palestini, and marketing manager Jennifer Tucker, all formerly with AEGIS.
The office at 555 12th St in Oakland (above) works closely with Cresa San Fran as part of an expansion of Cresa’s presence in the Bay Area. According to Matt, it made sense for Cresa to hang a shingle in the 100M-plus SF East Bay market. San Fran’s been a very active market, driven by tech. “The East Bay mirrors that,” but not to the same extent as the San Francisco and Silicon Valley markets (and without the iconic names like Twitter). But as the markets tighten, there are companies that are considering the East Bay as an alternative. It’s also got a lot of clean tech and product that can house R&D companies—AEGIS did a lot of business, both tenant rep and corporate sales, among high-tech and biotech firms. Matt expects 2012 to be a real shift, with significant vacancies rolling and a lot of winners and losers.

A problem everywhere: traffic congestion. For Austin and San Antonio, the problem compounds with 70% of the NAFTA truck traffic making its way up I-35. But, that also means opportunities, too, according to the experts at the Bisnow Future of the I-35 Corridor in Austin yesterday. Only 80 miles apart, the two major metro areas may one day mesh into one greater MSA with a population of about four million. Major universities, international airports, and the NAFTA superhighway are a recipe for growth between the two cities. (And from there they will continue to grow, overtaking all of the American Southwest, getting hungrier with each major metro they consume.) Read more Thursday in the Austin issue.
Got the urge to merge or splurge? Tell us at Julie@bisnow.com.
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