TO: Rod Kauffman, President BOMA Seattle King County FR: Andrew Thibault, EMC Research DT: October 2019 RE: BOMA Member Polling Results – King County

METHODOLOGY

This memo highlights the results from a recent online survey of 104 BOMA members (Building Owners and Managers Association) in King County ( https://www.bomaseattle.org/). EMC Senior EMC Principal Andrew Thibault designed the survey in consultation with BOMA staff and conducted the analysis and reporting. BOMA staff administered the survey using SurveyMonkey.

KEY FINDINGS

1. Most building owners/managers say overall safety and security concerns at their property are worse than 3 to 5 years ago. One-third say things are “much worse.”

Safety/Security Trend

2. Property owners/managers are significantly under reporting safety incidents to law enforcement because they don’t think reporting makes a difference.

Even though 60% of owners/managers say they experience seven or more incidents a month, only 20% report that many incidents.

Local fire departments are the only entity given a majority above average grade for helping address public safety/security concerns.

Majorities give below average grades (“D” or “F”) to the Seattle City Council, Seattle Prosecutors, King County Prosecutors, and Seattle Mayor Jenny Durkan. A majority give Seattle Prosecutors and the Seattle City Council the lowest possible grade (“F”).

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3. The significant increase in safety and security incidents is driving up rents and operational costs.

Two-thirds of owners/managers (68%) say the dramatic increase in safety/behavioral issues has resulted in higher rent costs. Four-in-ten (39%) say potential tenants are more apprehensive about renting.

Most owners/managers are experiencing significant security cost increases including installation of new hard security devices (82%) and increased security staffing and/or hours (65%).

4. The increase in safety/behavioral issues has led to a dramatic increase in concerns about the safety of everyone at their properties - security officers, tenants, visitors, building staff, and others.

Most owners/managers (62%-79%) are more concerned than 5 years ago about the safety of everyone at their properties.

Concern is highest for security officers, parking customers, tenants, and retailers.

5. Building owners/managers are experiencing a wide range of criminal and nuisance problems at their property on a regular basis.

A majority are experiencing 11 of the 19 issues tested on a regular basis. Half say car prowls are a regular to a very serious problem and close to half say intimidation of tenants and guests, retail theft, and refusal to leave premises are all at least regular problems.

Property Owners Survey

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Survey Overview

An email invitation with a link to the online survey was sent to managers of 425 buildings using a BOMA member contact list

A total of 104 surveys were completed for a response rate of ~25%

Most responses (89%) represent office (55%) or mixed use (34%) properties

Nearly two thirds (62%) of the responses are from properties in the City of Seattle, with a third from the Central Business District

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Key Findings Most owners/managers (73%) are experiencing significant safety and security impacts and almost all say the

problem is worse than it was 3-5 years ago – one third say impacts are “much worse.”

Most owners/managers (62%+) are more concerned than 5 years ago about the safety of everyone at their properties – security officers, other employees, tenants, customers, visitors, and themselves.

Property owners/managers are significantly under reporting safety incidents to law enforcement because they don’t think it makes a difference. Even though 60% say they experience 7 or more incidents a month, only 20% report that many incidents.

Two-thirds of owners/managers (68%) say the dramatic increase in safety/behavioral issues has resulted in higher rent costs. Four-in-ten (39%) say potential tenants are more apprehensive about renting.

Most owners/managers are experiencing significant security cost impacts with the installation of new hard security devices (82%) and with increased security staffing and/or hours (65%).

When asked to grade public agencies/officials on helping to address safety/security concerns, only local fire departments are rated as above average by a majority of owners/managers. Only a third give local police an above average grade, and majorities give the Seattle City Council and Seattle Prosecutors a failing grade.

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Monthly Reporting to Law Enforcement

How often in a typical month do you or your officers report public safety/drug use/ behavioral issues to local law enforcement? If you reported all incidents, how many calls or reports might that be in a month for this property?

There is significant underreporting of security incidents to local law enforcement because owners/managers don’t think it will do any good. Even though 60% say they experience 7 or more incidents a month, only 20% report that many incidents.

None19%

None10%

1-342%

1-320%

4-618%

4-611%

7+20%

7+59%

Incidents Reported/Month Actual Incidents/Month

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Overall Safety and Security TrendThree quarters of respondents say safety and security concerns are worse at their property today than they were 3-5 years ago and a third say things are much worse. Fewer than 1-in-10 say things are better. Most say they have seen an increase in security incidents

over the last 3-5 years. Half (54%) say they have seen a 1-50% increase and 36% have seen an increase of more than 50%.

2%

Much 33%

5%

Somewhat41%

Better7%

Worse73%

Same19%

Better Worse Same

9%

22%

32%

17% 19%

Decrease/0% 1-10% 11-50% 51-99% 100%+

Approximately what percentage increase year to year have you seen in security incidents over the last 3-5 years

Thinking about overall safety and security concerns at your property, would you say things are better or worse

than they were 3-5 years ago?

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79%

74%

73%

71%

70%

68%

68%

67%

67%

66%

62%

14%

20%

19%

23%

22%

24%

21%

24%

27%

26%

30%

7%

7%

8%

6%

8%

7%

11%

8%

6%

8%

8%

44%

41%

39%

44%

38%

35%

32%

33%

42%

34%

27%

4%

3%

4%

4%

5%

4%

6%

5%

4%

4%

5%

Safety of our security officers

Safety of our parking customers

Safety of our tenants

Safety of our retailers

Safety of our janitors

Safety of tenant clients or visitors

My own personal safety

Safety of our building engineers

Safety of retail customers

Safety of our other employees

Safety of our vendors

More Concerned Same Less Concerned

Compared to 5 years ago, how much more concerned, if at all, are you about each of the following at your property?

Safety Concerns

Compared to 5 years ago, how much more concerned, if at all, are you about each of the following at your property?

Compared to 5 years ago, a strong majority of owners/managers (62%+) are more concerned about the safety of everyone at their properties – employees, tenants, customers, visitors, and themselves.

MuchMore

MuchLess.

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Criminal/Nuisance ProblemsMajorities are experiencing 8 of the 14 problems tested on at least a regular basis, with trash (79%), graffiti (63%), and drug/alcohol use (62%) leading the way. Significant numbers are also dealing with criminal behavior like car prowls (52%) and theft/break-ins (41%) on a

regular basis. One-in-five say tents on or near their property is a regular problem.

29%

22%

26%

26%

19%

16%

21%

21%

16%

10%

13%

7%

7%

7%

50%

42%

36%

31%

38%

40%

33%

31%

25%

29%

16%

17%

14%

12%

79%

63%

62%

58%

57%

55%

54%

52%

41%

39%

29%

24%

21%

19%

Trash

Tags/graffiti/glass etching

Drug or alcohol use

Needles

Loitering

People sleeping in doorways

Human waste

Car prowls

Retail thefts/break ins

Aggressive panhandling

Office thefts/break ins

Assault

Temporary tents

Semi-permanent tents

How much of a problem, if at all, are each of the following at your property?

7 - Very Serious Problem 6-4 Regular+ Problem Total

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Behavioral/Mental Health Problems

Q. How much of a problem, if at all, are each of the following at your property?

Roughly six-in-ten regularly experience trespassing and problems with people in mental, physical, or emotional distress. Almost half say incidents involving intimidation and refusal to leave are at least a regular problem at their property.

21%

20%

21%

10%

12%

44%

43%

40%

36%

29%

65%

62%

61%

45%

40%

Signs of mental and physicaldistress

Trespassing

Signs of emotional distress

Intimidation tenants andguests

Refusal to leave the premises

How much of a problem, if at all, are each of the following at your property?

7 - Very Serious Problem 6-4 Regular+ Problem Total

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Other ImpactsTwo-thirds say the increased safety/opioid addiction/behavioral issues have led to higher rent costs. Four-in-ten say potential

tenants are more apprehensive and existing tenants are not renewing (16%) or asking for lower rates (13%)

68%

39%

22%

16%

16%

13%

13%

Higher rent costs

More apprehension from potential tenants

Tenants driving instead of taking transit

Tenants are not renewing

New terms in leases re:public safety

Reduced garage operating hours

Request for lower rental rate

What other impacts are you seeing from the public safety/opioid addiction/increased behavioral issues?

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Steps Taken to Address Security ConcernsMost owners/mangers have installed new hard devices to address security issues at their property and two-thirds have

increased security staffing or hours.

82%

65%

26%

19%

19%

15%

15%

13%

Installed new locks/card readers/cameras

Added security staffing or hours

Limited building access from garage

Reduced building operating hours

Added staffed concierge station in lobby

Added additional building and facility engineers

Added parking garage staffing

Reduced garage operating hours

Which of the following steps, if any, have you or your tenants taken to address security issues at your property?

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68%

35%

27%

17%

14%

7%

5%

1%

1%

1%

1%

31%

44%

60%

61%

61%

59%

44%

49%

38%

28%

61%

1%

21%

13%

22%

24%

34%

51%

50%

61%

71%

37%

Local Fire Department

Local police

Bellevue City Council

King County Metro

Sound Transit

King County Health Department

King County Prosecutors

Mayor Jenny Durkan

Seattle Prosecutors

Seattle City Council

Local Judges

Above Average Average Below Average

Grading Responses to Safety/Security Concerns

What grade would you give each of the following for helping address any public safety/security concerns you have at your property?

Local fire departments are the only individual or public agency given a majority above average grade for helping address any public safety/security concerns. Seven-in-ten give the Seattle City Council a “D” or an “F.” Majorities also give below average grades to prosecutors

and Seattle Mayor Jenny Durkan. A majority give Seattle Prosecutors and the Seattle City Council a failing grade.

Andrew Thibaultandrew@emcresearch.com

206.204.8031